Index

Page numbers followed by f or t stand for figures and tables. Acquisition of startups, 100 Barriers to entry, 7, 11, 51, Adoption of technology, 75, 97–98, 100 85–86, 85f Barringer, Bruce B., 30 Adoption rate, 75, 76f Bay, Greg, 86 Alpha M product, 64 Beachhead, 106 Amazon, 59, 74, 83, 96 Berberian, Paul, 148–150 Ambiguity, 21, 22, 23 Bias, 23–26 Ambush exposure, 95–96 Bielby, Trevor, 128 Amini, Albert and Richard, 56 Bing search engine, 98 Anderson, Chris, 138–140, 141 Birch, David, 3 Andreessen, Marc, 88 Blank, Steve, 4, 9, 31, 33–34, 58, AngelList, 10, 137 88, 105, 111 Apple, 74 Blockbuster, 74, 96 Apple App Store, 92 Blue ocean strategy, 87 Ash, Mary Kay, 19 Board of directors/advisors, Ask, making, 127 57–58 Attitube product, 97 Borders, 96 Aulet, Bill, 31, 35 Bot, Sonia, 130 Availability bias, 25–26 Bounded rationality, 22, 83 Average revenueCOPYRIGHTED per user Branson, MATERIAL Richard, 86 (ARPU), 79–80, 93 Breathometer product, 87 Broderick, Peter, 92 Baby Loves Disco, 81 Brooks, Josh, 108 Bailetti, Tony, 130 Brun, Larry, 97 Bankruptcy, 100 Business Model Canvas, 29, Barnes & Noble, 96 32–33, 33f, 120

165

bindex 165 26 April 2017 7:16 AM 166 Index

Business Model Generation, Crossing the Chasm (Moore), 85 31–33 Crowdfunding, 10, 11, 22, 39, Business models, 4, 37, 67, 59, 78 119, 120 Cuban, Mark, 59, 101, 108 Business model validation, Customer acquisition costs, 88, 88f 79–80, 93 Business plans, 34, 105, 120–121 Customer collaboration, 9 Customer Development theory, Callaghan, Jon, 140–141 9, 31, 34 Cameron, William J., 129–130 Customer lifetime value (CLV), Canepa, Matt, 49 80, 93 Capital availability, 10–11, 10f, Customer research, 73 131–132 Carbone, Melissa, 108 DailyWorth, 66–67 Case, Scott, 4 Darwin, Charles, 89, 105 Case, Steve, 4 Delicious, 45 Chen, Andrew, 94 Demsetz, Harold, 97 Chen, Steve, 44–45 Deveau, Juli, 64 Christensen, Chris, 90 Diffusion of Innovations theory, Circa, 45–47 75, 84, 84f, 86 Cloud computing, 8, 19, 26, Dillard, Sarah, 37 69–70 Direct costs, 16–17, 93 Coachability, 50–51 Disciplined Entrepreneurship Cohen, David, 46–47, 105–106 (Aulet), 31, 35 Collaborative development, 9, Disciplined Entrepreneurship 34, 46, 139, 140 process, 31, 35–36 Collins, Jim, 49 Disqus, 113–115 Competition, 94–96 Disruptive innovation, 75, 90, Compound annual growth rate 91f, 96 (CAGR), 90–91 Distribution strength, 91–92 Confirmation bias, 24 Dixon, Chris, 74 Copyright, 20, 76, 77 DIY Drones, 138–139 Coretection product, 86 Dot-com boom, 7–8, 58, 79, Cost of customer acquisition 119, 136 (CoCA or CAC), 79, 80 Double dipping, 80–81 Cost of goods sold (COGS), 79 Dragons’ Den (reality TV show), Cost per customer acquisition 5, 6, 14, 52, 81, 86, 127, (CPA), 93 144, 148 Courtney, Jackie, 78 Draper, Tim, 94 Creative destruction, 74, 92 Drop Stop, 65

bindex 166 26 April 2017 7:16 AM Index 167

Dub, DJ R, 14 Fraijo, Theresa and Robert, 146 Duke Center Entrepreneurial Frankovich, Kent, 90 Process Model, 30, 30f Freeloader child carrier, 22 Duke Center for Friedman, Thomas, 8 Entrepreneurship and Innovation, 46 Galligan, Matt, 45–46 Durability of market, 68–69 Gates, Bill, 109 Gazelles, 3 Early adopters, 75, 84, 85–86, 85f Gedeo, Steven A., 20–21 Early-stage venture capitalists Getting out of the building (VCs), 100, 129, 131–132 approach, 34, 58, 111–112 Edison, Thomas, 30 Glaros, Nicole, 126 Egger, Cole, 22 Global Entrepreneurship Elevator pitch, 117–119 Monitor, 16 Ellis, Sean, 87 Gloge, Carly, 38–39 Entry barriers, 7, 11, 51, 97–98, Goliath paradox, 96–97 100 Good to Great (Collins), 49 Evolutionary economics, 88–89 Google, 15, 44, 59, 70, 74, 92, Execution, 19, 20–21, 151 126, 143 Executive summary, 121 Google Docs, 74, 96 Google search engine, 74, 83, Facebook, 13, 16, 59, 68, 75, 78, 96, 98 85, 92, 96, 106 Google Trends, 68 FedEx, 95 Go-to-market plans, 39, 51, 55, Feld, Brad, 5, 57, 126, 136, 106, 120 149–150 Government regulation, 98 Feld, Stan, 126 Granovetter, Mark, 60 Feld Technologies, 126 Greiner, Lori, 101, 145, 146 Ferocious customer-centric Gresock, Amy R., 30 rapid iteration, 35 Grinds Coffee, 49 Ferriss, Tim, 1–2, 19 Gross margins, 79–81 Financial forecasting, 108–111 Growth hacking, 58 Fixed costs, 81 Founder’s Dilemmas, The Ha, Daniel, 113–114 (Wasserman), 44 Halo effect, 99, 126, 133, 145 Founder’s perspectives, 17–18, Herjavec, Robert, 146 38–39, 45–46, 51–52, 66–67, Hofstadter’s Law, 129 69–70, 101–102, 113–114, Hootsuite, 77 121–122, 138–139, 148–149 Hotmail, 94 Foundry Group, 5, 44, 123 Huh, Ben, 45, 46

bindex 167 26 April 2017 7:16 AM 168 Index

Hurley, Chad, 44–45 Kookn’ Kap product, 64 Hurwitz, Andy, 81 Krieger, Mike, 65

“If You Build It, Will They Langin, Catherine, 118 Come?” (Thiel), 93 Launching costs, 7–8, 8f Industry placement, 86 Launch timing, 34, 106 Initial public offerings Lawson, Jeff, 69–70 (IPOs), 100 Lead to Win Lifecycle Stage Innovators, 75, 84–85, 85f, Model, 130, 131f 146, 147 Lean Canvas tool, 36–37, 120 Instagram, 59, 65, 74, 78, 83 Lean LaunchPad methodology, Intellectual property (IP), 5, 31, 33–34 76–77, 97, 100–101, 119 Lean Startup, The (Ries), 5, 9 Internet, 7, 8, 9, 92, 140 Lean Startup model, 9, 30, 31, Investment committees, 137 34–35, 37, 111, 147–148 Investment thesis, 119, 132–133 LinkedIn, 59 Investor screening funnel, 134, Linkner, Josh, 63 135f Local businesses, 3 Investor’s perspectives, 18–19, Lowercase Capital, 70–71 39–40, 46–47, 52, 67, 70–71, 102, 114–115, 123, Machiavelli, Niccolò, 33 140–141, 149–150 Management risk, 22 iTunes, 14, 92 Marino, Aaron, 64 Market, 83–102, 151 Jamba Juice, 101, 102 durability and timeliness of, Jansen, Erick, 22 68–69 Jilk, Dave, 126 Internet and physical location Jobs, Steve, 73 of, 9 John, Daymond, 101 product fit with, 87–90 Johnson, Betsy, 145 risk, in 22 Jones, Nathan, 22 size of, 65–66 stage of, 84–87 Kawasaki, Guy, 118 Martell, Dan, 37–38 Key asset dependency, 77–78 Masters, Blake, 93 Key person dependency, 147 McDonald, James, 22 Khan, Ozma, 64 McIntyre, Ryan, 123 Kickstarter, 11, 22, 38, 39–40, McKnight, Thomas, 95 59, 78 Melville, George, 45 Kindle product, 74 Mendelson, Jason, 123, 125 Koetsch, David, 54 Mentors, 56

bindex 168 26 April 2017 7:16 AM Index 169

Mentor whiplash, 111–112 Pebble smart watch, 59 Microsoft, 74, 92, 96 Petrov, Michael, 48–49 Mijares, Katrina, 128 Pezet, Pat, 49 Miner’s Lunchbox product, 118 Piggybacking, 86 Minimum viable product Pigneur, Yves, 120 (MVP), 34–35, 37, 130, Pinsent, John, 108–111 137, 152 Pitches, 117–119 Moltke, Helmuth Graf von, 105 Pitfalls, 143–148 Monetization, 13, 40, 113, Pizza Pak product, 136–137 114–115, 122 Plan B, 112–113 Moore, Geoffrey, 85–86 Postal service, 95 Moore’s Law, 141 Postcard on the Run, 108 Mullenweg, Matt, 106 Premature scaling, 107 Murphy-Monteith, Heather, 81 Price elasticity of demand, 63–64 Nearly Newlywed, 78 Pristine Cart product, 66 Netflix, 64, 74, 87, 92, 96 Product/market fit, 87–90 Newburger, Marc, 65 Proof of concept, 78–79 New Venture Creation (Timmons Prospect theory, 26–27 and Spinelli), 9 Publicity, 86 Next Big Sound, 121–123 No Asshole Rule, 146 Quantum of return, 15 Nondisclosure agreement Quibb, 94 (NDA), 1, 77 Raindance Communications, 149 Obama, Barack, 4, 68 Rapid prototyping, 34–35 O’Leary, Kevin, 80, 101, 102, Ravikant, Naval, 114–115 145, 147 Rayport, Jeffrey, 94 Opportunity, criteria of, 13–14 Red herrings, 143–144 Opportunity cost of time, 15 Regulatory framework, 97, 98 Opportunity costs, 16–17 Return on invested time Opportunity evaluation, 14–15, (ROIT), 15 19, 23, 29–31 Return on investment (ROI), Osterwalder, Alex, 47, 120 15, 109 Overconfidence, 25 Ries, Eric, 9, 30, 31, 34–35, 37, 58 Palmeri, Stephanie, 39–40 Risk, 21, 22 Partnership status, 99 Rogers, Everett, 75, 84, 85, 86 Passion, 48–50, 51–52, 151 Rolodoc directory product, 56 Patents, 20, 76–77, 97 Rose, Kevin, 78

bindex 169 26 April 2017 7:16 AM 170 Index

Sacca, Chris, 70–71 democratization of, 7–11 Saldana, Isaac, 17–18, 65 scientific approach to Scalability, 4, 32f, 81, 93, 107, creating, 9–10 119, 130, 147 Stealth mode, 111 Scarcity, impact of, 78 Stegemann, Barb, 51–52 Schmidt, Eric, 126 Steinberg, Amanda, 66–67 Schmotoboard product, 128 Stock buyback, 100 Schumpeter, Joseph, 74 Stockdale, James, 49 Scientific method, 36–37 Stockdale Paradox, 49 S-curve, 89–90, 89f Sunk costs, 26, 97, 101, 152 SendGrid, 17–19, 65 Survival of the fittest theory, 7-Eleven, 22 89, 105 7 Virtues Perfume, 51–52 Suster, Mark, 126 Shark Tank (reality TV show), 5, Sweet Ballz dessert product, 22 6, 14, 56, 59, 64, 65, 78, 80, SwimZip product, 145 87, 101–102, 108, 127, 144 Systrom, Kevin, 65, 74 Showstoppers, 143 Simon, Herbert, 22, 83 Taboo businesses, 145–146 Simon, Jeffrey, 65 Talbott, Shane, 101–102 Small- and medium-sized Talbott Teas, 101–102 enterprises (SMEs), 3 Talent Triangle, 53–56, 54f Small Business Administration Target market, 56, 86, 106, 118 (SBA), 3–4 Team Social capital, 59–60 diverse backgrounds and Social media, 9, 131 experiences of, 63–64 Social networks, 59–60, 68, 113, ideal size of, 22, 43–44 138–139 prior work history and, SoftTech VC, 39–40 44–45 Software as a Service (SaaS), Techstars, 5, 18–19, 22, 43–44, 81, 114 46, 105, 111–112, 122, 126, Spectrum of Financing model, 133, 134, 150 129–130, 130f 10× Rule, 73–74, 152 Squire, Isaac, 39 10/20/30 PowerPoint rule, Stage-Gate model, 30, 31f 118–119 Startup America Partnership, 4 Thiel, Peter, 93 Startup Boards (Feld and 3D Robotics, 137, 138, 141 Ramsinghani), 57 Tiiny app, 78 Startup Genome Project, 107 Timeliness of market, 68–69 Startups Timing of launch, 34, 106 definition of, 3–4 Timmons, Jeffry, 9

bindex 170 26 April 2017 7:16 AM Index 171

Timmons Model of the Value propositions, 32, 64, 40, Entrepreneurial Process, 94, 95, 111, 112, 120 125, 125f Variable costs, 81 Toddlerobics product, 128 Veggie Mama product, 146 Total addressable market Venture Deals (Feld and (TAM), 65–66 Mendelson), 125 Trademark, 20, 76, 77, 148 Viagra medication, 86 Trade secrets, 76, 77 Viral marketing, 93–94 Treliving, Jim, 45, 137 Virgin Mobile, 86 True Ventures, 140, 141 von Hippel, Eric, 9 Twilio, 69–71 Twitter, 45, 70, 77, 115 Walmart, 97 Wanless, Berry, 145 Ubooly, 38–40 Wasserman, Noam, 44 Uncertainty, 21, 22–23 Web 2.0 era, 8, 136 Under Armour, 86 White, Alex, 121–122 Union Square Ventures, 132 Whitman, Meg, 57 Unmet needs, 81, 151 Wilson, Fred, 115, 126 Upfront Ventures, 8 Wilson, Joanne, 67 UPS, 95 Wilson, W. Brett, 52 Upstartle, 96 Wise, Sean, 5, 14, 33–34, 48, 53, User-generated content (UGC), 79, 81 59 Yim, Charles, 87 Validation Board, 112, 112f Y2K problem, 68 Validation of business model, 88, 88f Zaarly, 57 Valliere, Dave, 23–27 Zenie Bottle product, 148–150 Valuation, 136–137, 144–145 Zero to One (Thiel and Masters), 93 Value inflection points, 128–129 Zuckerberg, Mark, 16

bindex 171 26 April 2017 7:16 AM bindex 172 26 April 2017 7:16 AM