003 PRIORITY Flashcards Preview

ETH1: 2.5 TechEnt > 003 PRIORITY > Flashcards

Flashcards in 003 PRIORITY Deck (38):

1st requirement for patentability:+ derived advice

novelty (as opposed to, i.e. adding sthing to publicly described 'state of the art', incl. inventor's own publications) --> first patent, then publish! --> be very careful in speculations last paragraph of papers--> confidentiality agreements are not enough, leaked info is not patentable


2 keys for successful startup:

  • let each do their role
  • let the best person be the product person, coz that's the key role!


2nd requirement for patentability:+ def

inventiveness def: sthg that would not be obvious to someone 'skilled in the art', i.e. knowing a lot about it--> it often involves a creative combination of 2 things


Funding sources: the 3 to 7 Fs + 3 Xs
+ later sources

  • General
    • Family
    • Friends
    • Fools
  • Typically Swiss:
    • Founder --> expected to invest in CH
    • Faculty
    • Foundations --> cheap source
    • Family offices --> very good source

Later sources (in order of decreasing officiality)

  • Government Programs like the Commission for Technology Innovation
  • Venture capital & private equity
  • Crowdsourcing



3rd requirement for patentability:

sufficient disclosure


4 growth strategies compared

penetration => must push out competition

diversification => not very wise, usually

market & product dev





OpsMargin (in crowded space)

- in 80s Czech R by 2 researchers not joining Communists- free, uncrippled product for most consumers, w few paying for premium

- high level of automation

- 30% margin!!!


Best option among Co forms:

Joint stock Co = AG Req.: 100k CHF of which at least 50k or 20% in cash


Big Co & entrepreneurship: 2 ways

  1. startup program
  2. invest in corp venturing


CH tech ent problems:

- risk aversion (80% 5y survival rate < little risk taking) of Entrepreneurs- no seeding < investor's risk aversion


Claesson's availability to discuss new ventures for 1h:

Saturdays 15-18 - reserve via his assistant


Co valuation - cause

= price paid by last shareholder getting inReal share value <> nominal value!


code: which IP?

normally, copyright; you need to add some other element / feature to be able to patent, which protects you also against variations


equity crowdfunding def=

big advantage:

for who/what?

crowdfunding where equity, rather than products, are offered; not available in all jurisdictions

=> it lets you test your idea

for SW


estimated % of fake products in the world

10% !!!for trillions' worth


estimated current weight of intellectual property on S&P500 Cos assets

80% !!!


How to get other partners on board

(Owners sell existing shares)typically: the Co issues new shares, setting the price


ideas VS implementation

(non patentable) ideas are cheap => share them to get help

value is in implementation


"if you build it, they will come" is...

True only in films!


incubators & accelerators


+ common benefits

incubators when you still need to develop the idea

+ both provide an env of like-minded ppl who can help you

+ Prof. Claesson's slides contain a very nice list of incubators & helpful orgs


  • key to success... 
  • key to it...

  • selling (ideas, etc.)
  • what to sell? sell passion! --> esp. to investors, who professionally must be passionless


LLC / GmbH option plus:

Min capital is 20k CHF n the tax filing / accounting reqs are not heavy


Localisation of Co -
3(4) factors:

Corp + Personal tax rate
Quality of life

US, Canada, Australia, Japan; UK, Germany, CH, Nordic countries, Western Europe


Methods in entrepreneurial marketing

  • Reverse graffiti
  • Viral marketing
  • Guerilla marketing

sometimes you need to use forbidden methods!


mezzanine level

  • def=
  • benefit

  • convertible loans, with conditions
  • adds flexibility for investors & company


patents & diff. countries

it is a cost issue: you need to patent in diff. countries or groups of countries in US, but only in US, you can patent biz models, too


patents & innovativeness of a sector

the more innovative a sector is, the more patents are used there --> you must patent, otherwise others will do it all around your innovation


Reasons for (sometimes) not taking money from corp venture

(2 intentional + 1 anyway)

- they might want to take control (dilute also)

- they might want to kill your Co

- they might TAINT you vs other possible biz partners


4 reasons in favor of accepting Corp venturing money

- they can bring expertise
- brand
- clients
- volume


Rel bw tech & ValueAdded

mediated by BizStrat & BizModel (=Co's DNA)


Startup pivot =

avg Nr of pivots for a startup =

= change of biz model

avg = 2.3 !!!


Total risk, 2 components: 

Business Risk + Financial Risk

(where financial risk is seen as negative, in a balance-sheet assets-liabilities view)


1+4 ways that customers can kill your startup

  • wanting their crowdsourcing money back
  • bad reviews
  • features creep
  • suits & liability
  • they do not pay in due time


what can / should be patented?

product: if patentable, then patent!

product use: if patentable & communicated, then patent!

process: if patentable & evident, then patent!


What does Co Startup Genome do?

They do comparisons bw a startup and its peers in terms of development stage.


what is a "one-trick pony" startup?+ what conseq?

it is a startup w only 1 prod

it is worth much less than one w 2-3+ products


When go to Venture Capitalists VS
strategic investors ~ corporate VCs?

High certainty in outcome > VCs (fast good exit)
Opposite: be the CVCs' external R&D


Why would you ever want to be a sole proprietor?

Only to be able to start right now or if you are very rich