Session 3: Managing the Tech Startups (Updated with Questions)

Today’s Talk, Jorge Mata.  After starting in consulting and large companies, Jorge became an entrepreneur in his mid 30s.  He has extensive experience in raising capital to fund start-ups.

Some points from today’s talk (generally translated into my words):

  1. Scalability is key to investors.
  2. You don’t have to invest your own money, because your focus will then just be on making your money back and you won’t be focused.
  3. Consider joining another start-up, its not just about making your own.
  4. Jorge likes to see running companies, not just ideas.
  5. Treat your investors well.  This means you communicate with them, good news and especially bad.
  6. The climate for raising money is getting better and better.
  7. A local CEO is very useful for navigating cultural differences.
  8. Jorge likes to see start-ups that are solving process problems, not just new platforms.  How can technology make actions easier for end users?
  9. You don’t want to pay for advice, because they will have a conflict of interest.
  10. Timing is very important when selling your company.
  11. Be willing to make rapid business model adjustments to match a dynamic market.
  12. Understand what your investors are looking for in terms of return (including time-frame).
  13. Don’t forget to focus on the problem you are solving when you design your business.  Value proposition!
  14. FoodieSquare! (no Tech Startup class is complete without a Foodiesquare advertisement)
  15. Social is a great, low cost tool for promoting a start-up.  Google is expensive.
  16. Valuation targets.  3 million for Angels, 7 million for VCs.

Great talk today – lots of interest and motivation.  Will follow up with questions later.

Some questions that came to mind today were:

  1. What are some ways to prove a scalable business model without an entrepreneurial history?
  2. How do you prove your company is worth millions with no track record?  What specific things can you do to reassure/prove it to investors?
Explore posts in the same categories: IETechstartup

2 Comments on “Session 3: Managing the Tech Startups (Updated with Questions)”

  1. Guilherme Says:

    Answering your first question I think presenting a coherent business plan with trend evolution and some market research on the business model helps. Unfortunately even established business models can bring very different results when they go to market. That’s why creating a budget for new products is such a challenge.
    As Jorge saids everything becomes more uncertain when the business model is totally new. I agree with him that in such cases being able to adapt is crucial but I also believe an initial market research on the business model in these cases can be important.

  2. plament Says:

    Answer 1: Find analogs in the market, i.e., if you are, say you will be for Spain.

    Answer 2: I personally believe there is no such way, because every investment entails risk. You cannot prove, but you can convince and negotiate.

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