STARTUP BASICS

Written  by  Hoon  Jung  nayahun2@gmail.com  

with  Korean    Startup  Locations  

“ STARTUPS ”

Aren’t  they  just  a  trend,  strongly  initiated    by  the  Korean  government?    

So,  a&er  this  government,  they  might  go  away?  

“Public support should be concentrated on start-ups and venture businesses, which struggle most to obtain financing.”

- OECD, “Korea Economic Surveys”, 2014 -

Well, it is about economy We  know,  somebody  has  to  fix  it!  

It is happening globally!

<  Top  30  Startup  Cities  >  

It is happening globally!

How  about  Korea?  

<  Top  30  Startup  Cities  >  

Han River

Seoul Korea  already  has  strong    Startup  locations  &  communities  

Gangbuk

Pangyo

Gangnam

Guro

Han River

Seoul

Gangbuk

Pangyo

Gangnam

Guro

Han River

Seoul

Gangbuk

Pangyo

Gangnam

Guro

Han River

Seoul

Guro

Gangbuk

Gangnam

Pangyo

Han River

Seoul

Gangnam

Guro

Pangyo

Gangbuk

Yeah,  that  Gangnam!  It  has  more  than  Psy  J  

The biggest part of the Korean

Startup Ecosystem

Guro

Han River

Seoul

Gangnam (2015)  

The biggest part of the Korean

Startup Ecosystem

Guro

Han River

Seoul

Gangnam (2015)  

The biggest part of the Korean

Startup Ecosystem

Guro

Teheran-ro in

Gangnam

Han River

Seoul

Gangnam (2015)  

The biggest part of the Korean

Startup Ecosystem

If  you  are  an  entrepreneur  and    you  don't  know  where  to  go,    go  there!  

Even big corporations are looking to startups to drive their growth. They are going to build their own startup supporting organizations all over the nation.

Experience working with or for a startup will be very useful for getting a job

Today  Yes,  Tomorrow  even  more!  

“ What is a startup? ”

It  seems  it  is  a  small  company  or  opening  a  new  business  ..  

Ok,  let’s  talk  about  

Can a bakery be a startup?

A startup has a scalable business model which solves people’s problems in an innovative way

On-Line

Off-Line

The  world  is  separated  into  two  parts,    off-­‐line  and  online.  

On-Line

Off-Line

Before the

Internet

On-Line

Off-Line

Dot-Com Bubble

Before the

Internet

On-Line

Off-Line

Dot-Com Bubble

For  the  first  10  years,    we  had  tried  to  put  things  on  the  internet  

Before the

Internet

Web 2.0

On-Line

Off-Line

Dot-Com Bubble

Smart- Phones

Before the

Internet

Web 2.0

On-Line

Off-Line

Dot-Com Bubble

Smart- Phones

Internet of

Things

Before the

Internet

Web 2.0

On-Line

Off-Line

Web 2.0

Before the

Internet

Dot-Com Bubble

Smart- Phones

Internet of

Things

After  the  ten  years  we  have  been  applying    this  innovation  to  real  world  

On-Line

Off-Line

Diffusion

You  can  spread  things  easily    via  the  Internet  

On-Line

Off-Line

Business Model

Diffusion

But,  we  had  been  making  money  by  selling  stuffs  in  the  off-­‐line  world  

On-Line

Off-Line

Business Model

So,  It  was  hard    to  find  biz  models    up  there  but  ..  

Diffusion

On-Line

Off-Line

Business Model

Diffusion

As  technologies  advance,    

On-Line

Off-Line

Business Model

Diffusion

It  gets  easier  to  use  technologies  to  find  biz  opportunities  

Thanks to better Bandwidth, Devices, App stores, Cloud Services, Open sources and etc

Startups began to arise ..

With a chance to reach across industries and countries

Thanks to better Bandwidth, Devices, App stores, Cloud Services, Open sources and etc

Startups began to arise ..

Again, your idea is a new opportunity in a new situation    Prove gradually whether it works or not

Here comes the fancy methodology: “LEAN STARTUP”

Implement core functions, launch it and see how people react. Improve and launch again Validate your idea gradually

“LEAN STARTUP” I know you know, but let me explain ..  

Based on situations, you might also think of a A change in strategy without a change in vision Pivot,

Results  

Resources  

Prototype   Alpha   Beta  

It’s easy to build stuffs for the first time but ..

Results  

Resources  

Prototype   Alpha   Beta  

Facing real world complexity,

Real world problems start  

Results  

Resources  

Prototype   Alpha   Beta  

Facing real world complexity, we need a LOT of resources.

Real world problems start  

A project will likely take 3 times longer than you think.

A project will likely take 3 times longer than you think.

MVP (Minimum Viable Product)

Focus on a minimum

solution

Once your MVP is ready, Reach out to Investors

Accelerators Angel Investors Venture Capital firms  

Well, VCs are not like Superman, but the fact that you are chosen by them could lead you to another investment chance!

Elevator Pitch  

Investors see thousands of people and products. Are you able to pitch in 30 seconds, super simply?

Demoday Selling your services or ideas Best part of startup events  

The Core Message  

The Core Message  

1.  I am solving this problem 2.  using this magic 3.  in this big market 4.  with this awesome team

The Core Message  

1.  I am solving this problem 2.  using this magic 3.  in this big market 4.  with this awesome team

10-15 Slides Less than 10 minutes

What Problems are you going to solve?  

< Business Model Canvas >  

What Problems are you going to solve?  

< Business Model Canvas >  

You    should  make  sure  what  value  you  are  delivering  to  your  customers  by  solving  problems  

Firstly,  focus  on    these  two  

Reveal Your Magic  We can solve people’s

problems thanks to our:

Awesome Technology Community Network Cheaper Price

Being the First Comer Expertise

Etc..

Poor   Awesome  

Poor  

Awesome  

Show That Others Can’t, But You Can  

They

They They

You

Poor   Awesome  

Poor  

Awesome  

Show That Others Can’t, But You Can  It’s  ok  as  long  as    you  have  a  strategy  

They

They They

You They

Demonstrate How Big Your Opportunity Is  

TAM  (Total  Addressable  Market)    

SAM  (Serviceable    Addressable  Market)    

SOM   (Serviceable  Obtainable  Market)  

Demonstrate How Big Your Opportunity Is  

TAM  (Total  Addressable  Market)    

SAM  (Serviceable    Addressable  Market)    

SOM  

$10B/100M  Customers  

50M  Customers  

(Serviceable  Obtainable  Market)  

3%    Market  Share    1.5M  Customers  

Demonstrate How Big Your Opportunity Is  

TAM  (Total  Addressable  Market)    

SAM  (Serviceable    Addressable  Market)    

SOM  

$10B/100M  Customers  

50M  Customers  

(Serviceable  Obtainable  Market)  

3%    Market  Share    1.5M  Customers  

BM1  (B2C)  

BM2  (B2C)  

BM3  (B2B)  

$5M  Revenue  

Convince Them How You Can Grow  

Segment  A  

Specific  Segment  

You  can  maximize  users’  interactions    with  limited  resources  

Convince Them How You Can Grow  

Segment  A  

Specific  Segment  

Segment  B   Segment  C  

IteraGon  

Convince Them How You Can Grow  

Segment  A  

Specific  Segment  

CriGcal  Mass  

Segment  B   Segment  C  

IteraGon  

Convince Them How You Can Grow  

Segment  A  

Specific  Segment  

CriGcal  Mass  

RetenGon/Engagement  

Segment  B   Segment  C  

Loyalty/Engagement IteraGon  

Convince Them How You Can Grow  

Segment  A  

Specific  Segment  

CriGcal  Mass  

RetenGon/Engagement  

New/Stronger  BM  Segment  B   Segment  C  

It  shouldn’t  be  described  like  this  ..    But  you  need  to  tell  them  it  can  be  bigger  than  now  

New/Stronger BM

IteraGon  Loyalty/Engagement

Last But Not Least: You are a Team

Show them that your team is capable of what you are going to do rather than just listing the background of team members

David  

Goliath  “I can beat him”

Prove it

Last But Not Least: You are a Team

While solving people’s problems, you are going to face A LOT of difficulties. So, “Tell the story of what your team went through together”  

That’s it Thank  you  for  your  time  and  attention!