IIM-A CIIE FinTech GrowthCamp...2020/06/05 · IIM-A CIIE FinTech GrowthCamp Kaushik Gala What is...
Transcript of IIM-A CIIE FinTech GrowthCamp...2020/06/05 · IIM-A CIIE FinTech GrowthCamp Kaushik Gala What is...
IIM-A CIIE FinTech GrowthCamp
Kaushik Gala
What is FinTech?
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Companies vs. Startups
Treadmill or Uphill?
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Search vs. Execute
A startup is a temporary organization designed to search for a repeatable and scalable business model.
A company is a permanent organization designed to execute a repeatable and scalable business model.
5http://steveblank.com/category/big-companies-versus-startups-durant-versus-sloan/
Panel Prep
Panel Do’s
• Do– Listen. Attentively.
– Be brief. Be specific.
– Be kind.
– Be (appropriately) provocative, not (inappropriately) aggressive.
– Ask enabling questions• E.g. Have you considered integrating your product with XYZ’s API?
• E.g. At what price point have you seen the best sales conversion?
– Provide insights• E.g. At Company, we found that XYZ feature was the most compelling for customers
• E.g. At Company, we re-positioned our product to address the ABC pain point
– Help the startup see upcoming challenges, risks.
– Suggest analogs, role models.
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Panel Don’ts
• Don’t– Conduct a job interview.
– Ramble.
– Rush into answers after hearing half the problem/question.
– Judge.
– Roast.
– Make the founders defensive.
– Get offended by a brash entrepreneur.
– Use too much jargon.
– Get into debates on the best technology/language/platform/…
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Business Questions - 1• What’s the evidence that you are solving a real pain point for a customer/user?
• What was the reason you signed up your first paying customer?
• How, why did you choose your co-founder?
• What are the top 3 business metrics you are tracking?
• What is the best argument for not using your product?
• What is the decision making / purchasing process for your customer?
• What (time, money, resources) would it take for someone to build a similar solution?
• Why would a customer switch to your product? Why would they stick to your product?
• Who has a vested interest in the status quo, or in your product failing?
• What are the barriers to scaling your revenue?
• Who will be your next key hire? Why?
• How did you determine the appropriate price point for your product?
• What is the one thing that can completely destroy your current business model?
• Talk about a major technology change on the horizon that will impact you.9
Business Questions - 2• Can you explain the Unit Economics for your company?
• Have you figured out your Customer Acquisition Cost? Customer Lifetime Value?
• Have you pivoted your business model since inception? If yes, why?
• If you are unable to raise any venture funding, how will you ensure the survival of your business?
• Which large company is most likely to compete with you? Why?
• Have you chosen any independent/external people on your Board of Directors? Board of Advisors? How are they incentivized to help you?
• What is the one growth metric that you are tracking (or can track) on a weekly basis?
• What is the biggest mistake you have made so far? Could you have avoided it?
• Is there a specific government regulation that can make or break your business?
• If you had to choose between India and the US as a market, which one would you choose for your venture? Why?
• If you had to sell your company today, who would you sell it to? Why would they buy you?
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Companies & Startups
Company =
– Beta User
– Beta Customer
– Supplier (cloud, OS, SaaS, raw materials, …)
– IP/Technology Development Partner
– Channel Partner
– Strategic Partner
– Seed/VC Investor
– Acquirer (acqui-hire, secondary sale, …)
for a startup.
12http://www.slideshare.net/nextbigwhat/how-startups-can-do-business-with-corporates
The Possibilities are Endless
B2B | B2B
• Startup trying to sell to a Company Empanelment criteria, NDAs
Free pilots, Exclusivity, Branding rights
Long sales cycle, late payments
• Company trying to buy from a Startup Track record, documentation, testing
Confidentiality, reliability, scalability
After-sales support, professionalism
13http://www.slideshare.net/nextbigwhat/how-startups-can-do-business-with-corporates
Corporate Support for Startups
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• Microsoft BizSpark– https://www.microsoft.com/bizspark/
• Amazon AWS Activate– http://aws.amazon.com/activate/
• Google Launchpad– https://developers.google.com/startups/
• Facebook fbStart– http://fbstart.com/
• VMWare vCloud Air Edge– http://vcloud.vmware.com/partner-programs/edge
Generally a mix of ‘credits’, online forums/KBs, expert access, testing, events; occasionally, sales & marketing assistance.
Corporate Venturing
15http://galatime.com/CVC.pdf
• Corp Venturing (aka New Ventures & Business Development) is the group within companies that invests in startups.
• Many successful CVCs – Intel, Motorola, Google, Salesforce, …
• More cyclical than VC/PE
• Strategic Fit > IRR
Corporate Development
16http://www.paulgraham.com/corpdev.html
• Corp Dev (aka M&A) is the group within companies that buys other companies.
• Sell your startup
– Understand the Company’s M&A Strategy
– Seek multiple bids
– Prepare for 3 - 6 months of time, resource commitment
http://onstartups.com/tabid/3339/bid/106015/Corporate-Development-101-
What-Every-Startup-Should-Know.aspx
http://www.techrepublic.com/article/the-m-a-strategies-of-the-top-10-tech-companies/
Thanks.
Kaushik Gala