How to start and run your high-tech business on the global market?

European Entrepreneurship & Innovation @ Stanford Engineering January 6 2014 . © 2012 Almaz Capital Partners

Alexander “Sasha” Galitsky Co-founder and Managing Partner

Alexander (Sasha) V. Galitsky u  Co-Founder: Almaz Capital Partners, Managing Partner

u  Board/advisor: Skolkovo Foundation and Acronis; Chairman of Advisory Committee RVC; Acumatica, AlterGeo, SJ Labs (sold to Ymax), PGP, Parallels, Magnifire (sold to F5), Jelastic, 2Can, EverNote

u  Private investor: Parallels, Start-Telecom (sold to Sinterra), NavMaps (sold to TeleAtlas), S-Terra, EzWIM (sold to TMT Ventures), Elvees-Elka, WikiMart, Yam Labs

u  Russian Technologies: Partner (2005-07), private investor (2003-07)

u  Founder & CEO: 5 successful start-ups; pioneer in WiFi and FW/VPN, obtained first investment by Sun Microsystems outside US (1993)

u  Soviet Defense Industry: Youngest PM for “Star Wars” response, head of communications, computer systems for Mir Space Station and 85% of satellites

u  Technology Pioneer, World Economic Forum, Davos 2000; Top 3 Russian Internet Influencer according to Forbes 2010 – 13; EY Entrepreneur of the Year 2013, National Award; Best GP of 2013 in Russia/CIS; top 6 European VC of last decade in 2012.

u  Ph.D., CS, Defense Research Institute, Moscow Institute of Physics & Technology

2

Win your technology race on the global scale

3

Think global from day one!

World is flat and only political borders are on your way!

No one has privilege on the innovation, idea, technology… and victory

Talents available everywhere, no needs to the physical move

Business cornerstones

u  Scientist

u  Inventor u  Entrepreneur/Intrapreneur

&

u  Science u  Innovation u  Innovation ecosystems

4

Some myths to recall

•  Venture capital is the primary source of start up funding

•  VCs take a big risk when they investing in start up

•  VCs offer great advices and mentoring

•  VCs generate unbelievable returns

•  In VC, bigger is better

•  VCs are innovators and visionaries

•  VCs will make you reach 5

How do YOU get noticed ?

6

Team: have they done this before, are they good, are they the team?! Market: how large, how do they get what %, how much $ to get there, sales model is direct, Web, viral ? Does it make sense ?

Technology: unique ? Does it work ? Defensible ? How hard ? Patentable ?

Financing: $$ to get to next milestone?

Always remember!!! u  U are the 1st investor in your business,

you invest your life!

u  Bootstrap your business as long it possible

u  Investors like the traction

u  Show commitment to your business u  100% of nothing is nothing u  Pick right investor for your business

and you u  Investor’s triad

7

Ask yourself the tough questions each day! u  Is the industry good and am I in

right segment and time? u  Is it possible to entry the

targeted market? u  Is it possible to make enough

money to be happy? u  Is the reward worth the risk and

5 - 7 years of my life? u  Will be I able to collected a

right team? u  Will you invest 20% of your net

worth, if I have it?

If not - just wait your new idea!!!

8

What we expect from the entrepreneur? u  Product evolution: “buggy” product –

services – product – SaaS. u  Product 1.0 release is a brochure u  Cutting costs every day u  Selling every day, every minute u  Knowing well when to be focused and

when and why not! u  Knowing well when and for what

reason to hire and when and for what reason to fire employees

u  To hire slowly and fire fast u  Ability to make fast decisions, even

they are wrong u  Agile, agile, agile - get answers from

the market

9

Fight with risks u  Product risk Uncertainties with the

technology and solution itself. u  Market risk. How certain you are that

someone will buy your product or solution. It's new market or re-segmenting.

u  Financial risk. Do you have enough runway? Is it capital intensive business?

u  Competition risk. How competitors will react on your market entry?

u  Execution risk. Are you and your team capable to pull the business off?

u  General risk. How much experience you have in the industry or with start ups in general?

10

Building company is a process to turn a lot of uncertainties in to certainties

11

http://www.almazcapital.com twitter: #agalitsky