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Flashcards in 1 Basics Deck (20):
1

Entrepreneur character traits: 1 + 7 + 6

  1. believe in what you do: fire in the belly!
     
  2. vision & inspiration
  3. calculated risk taker
  4. constructive paranoia
  5. innovative behavior
  6. internal locus f control
  7. need 4 independence
  8. DEVIANT
     
  9. Conceptual Ability
  10. Constant learner
  11. Calculated risk taker
  12. Need for achievement  
  13. Personal energy & emotional stability 

2

Entrepreneur vs inventor, innovator, intrapreneur

Innovator (recombines > brings 2 market)
~=
Entrepreneur
~= 
Intrapreneur (within big Co)

<>

Inventor (introverted) 

3

“Entrepreneurship”?

The process of 1. creating something new with value by devoting the necessary time and effort, 2. assuming the accompanying risks (financial, psychic, and social) and 3. receiving the resulting rewards of monetary and personal satisfaction and independence.

4

Reasons for (sometimes) not taking money from corp venture

- they might want to take control (dilute also) - or kill your Co - or TAINT you vs other possible biz partners

5

Reasons in favor of accepting Corp venturing money

- they can bring expertise - brand - clients - volume

6

James Dyson as Entrepreneur:

8 Typical vs 5 atypical traits + 1 challenge

typical

  1. Conceptual Ability
  2. Vision & Inspiration
  3. Calculated(?!) Risk Taker
  4. Innovative Behavior
  5. Locus of Control (IP!) § Paranoia
  6. Need for independence
  7. Deviant?!

atypical

  1. Inventor = Innovator
  2. No Team?!
  3. No recurring revenue!
  4. No market research
  5. Addressed saturated market, i.e. “Red Ocean”

challenge = succession

7

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

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

8

Small n Midsized Bizs are + Def

Backbone of society n bulk f employment in major economies (50% f employment created by 4% fastest-growing new ventures)

def: <250 employees, <50m rev, <25% shares f another Co, (<43m balance sheet)

9

  • Venture to Enterprise value chain in 4 stages & innovation gap
  • New venture in 5 stages & funding gap

  • Venture to Enterprise value chain:
  1. Basic research
  2. Technology Dev.
  3. Product Dev.
  4. Market Intro.

innovation gap is bw academia & industry

 

  • New venture:
  1. eval. / founding
  2. pre-seed
  3. seed
  4. start-up
  5. growth

funding gap is at start before biz angels & VCs arrive

10

Joseph Schumpeter's "Creative destruction"

+ tech startups peculiarity

EXAM Q
Both sides to E: The new destroys the old (Biz, Cos, jobs)

 

"Innovative entry by entrepreneurs is the force that sustain long-term economic growth, even as it may destroy the value of established companies."

 

+ tech startups create 7 times more jobs on avg!

11

Silicon Valley

  • copy attempts, but
  • origin
  • protagonists

  • 170 copycats around the world, but there are cultural, social & political differences! 
  • kick-started by Cold War
  • fuelled by hardworking immigrants

 

 

12

Global Economic Monitor framework

EXAM Q

13

CH tech ent problems:

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

14

Avast: Origin BM Ops Margin (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!!!

15

Avast:

  • BM
  • using...

BM = Freemium: free core functionality, some customers still pay for comfort, though free ~= fee version.

Using communities for support, marketing, localization (translations).

16

Innovation: 2 components

(successful) venture: 3 Components

Innovation = new idea (invention ~= implementation of sthing new) + diffusion (market penetration...) -->i(ii)d
 

(successful) venture = innovation + team + money -->MIT

17

Lean start-up methodology: - philosophy

iterate w feedback

18

Big Co & entrepreneurship: 2 ways

  1. startup program
  2. invest in corp venturing

19

efficiencies of

  • startups
  • academic spinoffs

  • startups coz free from legacy of Co internal boundaries
  • academic spinoffs coz inventor remains involved

20

Global Entrepeneurship Monitor (GEM)

conceptual framework: 3 elements --> 1 result

national & entrepreneurial framework conditions 

+

social values about E.

individual psychology

=

output of economic growth & new jobs