Startup in a Nutshell

Peter Choi

Agenda

• My startup history and lessons learnt• Organic style: Hiwave Dry Seafood• Inorganic style: Snapshock app• Steps to get started• Adjusting your mental conditions• About fund raising / venture capital• Pitching

Peter Choi

• MSc MBCS PMP CISA CISSP• 7 jobs in 8 years (“strategic” hopper…)

• Committee member, BCS (HK Section) • Startup Since 2004• Taekwondo coach for 16 years

2004 : newsy.com

• Web based RSS reader

• Cause of death: – Too young– Google Reader

• Lessons learnt:– UX > functionalities– Domain name trading is something!

2005-2006 : SayiLove & StarryGift

• A place for love declaration

• Cause of death:– Job security (team psychology)– QC on outsourcing– Too slow (morale issue)

• Lessons learnt:– Train to manage your emotion– Ditch “perfection”

海味軒 | 香港海味燕窩網上專門店

http://hiwave.starrygift.com• Family business for 3 gens• Physical store at Sai Kung• iPhone apps – soup recipes “ 日行一膳”• Featured in Google “The Connected Harbour”

http://www.connectedharbour.hk

2008 : Hiwave Dry Seafood

• Lesson learnt

ENDURANCE不死才是硬道理 - 馬云 , 阿里巴巴

2010: _____________

• Event check-in, grouping all photos into the same album

• Real time event broadcast, viewable worldwide

• E-invitation• Full res photo DVD• ‘Pic wall’ at the event• Mostly used in weddings

• Lesson learnt

FAITHMaintain unwavering faith;

Confront the reality- Stockdale Paradox

2010: _____________

2013:

• Huge wedding market : US$560B per year• Market authentic• Different culture and customer behavior• Pivot from existing product

2013:• Real time discussion forum• Live reporting and feedback• Product on Product (PoP) concept• www.chatcolate.com/business

That’s my storyNow start yours…

Getting started

• Idea. Hold on to it, but not too tight• Absolutely customer centric !! 逆向思維• Market research (Any existing solution at-

large?)• Location factor. 微創？• Dream team. Get a good business mix• Goal alignment.

Getting started

• Hacking : first prototype in 3 days• Market validation• Iterative finetune• Get first paid customer (Quick!)• Distribution > Product• Ready executive summary and finance

projection• Get a mentor

Adjust your mental conditions

• What you will experience psychologically– Loneliness– Uncertainty / Doubt– Fear– Self depreciation– Unfairness (among your partners)

• Do NOT over-estimate your strength, many die or give up along the way.

Adjust your expectations

• You are not Mark Zuckerberg• General and Viral vs Specific and Niche?• Survival against ‘Free’ concept• Market authenticity• HK Investment market ready yet?

• Conclusion: Online startup can be no difference than any other business!

About fund raising• Seed round : US 30-50K• Angel round : US 500K (15-20% equity)• VC Series A : US 5MM (~30% equity)• External investment is a LIABILITY• Seek investors AFTER you can make money• Incubators– US (Y-Combinator, 500 Startups, AngelPad…)– China ( 創新工場 )– HK (HK Science Park, Cyberport)– HK (BootCamp, AcceleratorHK …)

Pitching

• Business Name (Short, memorable, domain)• Tagline• 3-lines description• Demo (if any)• Market Size (top-down, bottom-up)• Team (Business mix, experience, authenticity)• Financial projection (Thing big, but achievable)• Roadmap

Stay Connected

http://www.startupcollege.hkFB: /startupcollege.hk

TW / 微博 : @startupcollege

Stay Connected

http://startupdigest.com/hong-kong/

Stay Connected

…Or, simply join us!

•Developer Intern•UX/UI Designer Intern•Business Development Intern

Send your CV to jobs@palapple.com

Peter Choi

peter.choi@snapshock.comTwitter: @peterchoi

微博 : @peterchoicm