Highlights of the Entrepreneur Trek, Stanford GSB March 2009
March 30th, 2009By: Felix Hu (MBA Candidate 2009, The Wharton School)
Mike Cassidy kicked off the Entrepreneur Trek with a keynote speech on how to successfully create a company. Mike was the CEO of Stylus Innovation, Direct Hit, and Xfire, prior to their acquisitions and was well versed in how to form and exit a technology company in under three years. He stressed the importance of speed as a strategy in a startup. This philosophy of speed extended from market entry, to product release, and even to hiring. Notably, many of the speakers over the weekend reinforced the importance of speed in all aspects of their own startups. Bill Reichert, MD of Garage Technology Ventures presented us with 10 specific rules for pitching. 1. Focus on creating value – understand how your technology creates real sustainable value.
2. Understand what you’re getting into when you raise money – you lose control of your company the moment you take a dollar, because you have responsibility to the investor.
3. Show traction – Ideally, have revenue. Create a prototype and prove the technology works. Get some customers.
4. Clean up your act – Find a good venture lawyer.
5. Get an introduction to an investor – Identify the right investors for your company, do your homework.
6. Appeal to their human side – Overwhelmingly, the investment is about the people involved and not as much about the metrics and spreadsheets.
7. Be consistent – The numbers, projections, and thought process must make sense. Be as successful as the most comparable company.
8. Follow the 10/20/30 rule – 10 slides, 20 minute presentation, 30 point font.
9. Make an impression – Differentiate yourself from the other entrepreneurs to ensure follow up.
10. Tell new lies – Don’t fill your story with stock phrases such as ‘our projections are conservative’ ‘we have the first mover advantage’ etc.
Representatives from MySpace, Facebook, and Hi5 discussed the current status of social networking and their expectations for the future. The downturn was placing pressure on both advertisers and social networks to become more creative. In short, users should expect more engaging advertisements soon. In a slightly longer time horizon, the panel believed that Facebook Connect and MySpace id would help make the entire web social. An example was CitySearch’s partnership with Facebook Connect. This gave users the ability to access the website as their Facebook identity. Each representative agreed that social networks would play a major role in helping people explore new brands, products, and aspects about their local communities in the near future. In the longer term, the emphasis was on identifying how to increase user engagement through aspects such as social gaming.
Tina Seelig of the Stanford Technology Ventures Program gave an inspiring talk on the importance of finding something you are passionate about, skillful at, and there is a market for. She emphasized that creativity and entrepreneurship must be experienced by trying things out in the real world, and that we should not be afraid of failure. In fact, if we are not failing occasionally, we are not taking enough risk in our lives. Tina left us with one main parting thought, “Fail Fast and Fail Frequently.”

