STARTUP.

Are you thinking of founding a company based upon that big idea or discovery? Have you already started a company, but would like to make certain you are as prepared as you can be. The Startup Series is for you.

Over eight weeks, the Startup Series will provide you with a background in and some experience with “the nuts and bolts” of starting, funding, and managing a scalable company. Topics we will cover include founding & incorporation, intellectual property, staging risk, and fundraising.

Sessions will be interactive and even case-based — no talking heads (except for THE Talking Heads), so anticipate some prep work and having some skin in the game.

SCHEDULE

Anatomy of a Startup?

What makes a great Startup? Let's consider what the ingredients of a startup pitch tell us about the ingredients of a compelling startup.

PLEASE READ OR WATCH

Chen, J. A warm embrace that saves lives. (video)
http://www.ted.com/talks/jane_chen_a_warm_embrace_that_saves_lives

David Touve, "The Startup Pitch," STRTP.com

Incorporation

C Corporation, LLC, Sole Proprietor, Non Profit versus For Profit — how are these types of incorporation different, and why form a company in the first place? During today's session, we will outline and discuss the different types of incorporation, while our guest attorney will answer your questions along the way.

PLEASE READ OR WATCH

"Choosing a Business Structure," United Stated Small Business Administration.

Starting Up & Staging Risk

How does a company "start" and how does ownership take shape for the founders? How do founders and investors “tease out” the risk/uncertainties along the way, and how do their respective ownership stakes change? The early history of the relationship between Genentech and VC Kleiner Perkins will provide the story supporting our discussion.

PLEASE READ OR WATCH

G. Felda Hardymon & Tom Nicholas, "Kleiner-Perkins and Genentech: When Venture Capital Met Science," Harvard Business School Publishing, 27 October 2012. (provided for you)

Founding Teams and Functioning

Our job for today's discussion is to gain some insight into the challenges that can emerge among founding teams as they attempt to agree—at the birth of the company—upon key issues such as: (1) roles & responsibilities, (2) respective ownership interests in the company, and (3) decision-making if times get tough—such as, if one of the founders leaves the company. Our guest star will be AManda Pollard from Wilson Sonsini.

PLEASE READ OR WATCH

David Touve, "Founders Dilemma," STRTP.com

Intellectual Property Primer

Today we will discuss the key differences among Copyrights, Trademarks, and Patents alongside a deeper dive into what can (or likely cannot) be patented. Our guests from the UVA Licensing and Ventures Group will help us make sense of the issues.

PLEASE READ OR WATCH

"Trademark, Patent, or Copyright," United States Patent and Trademark Office.

"Patent Essentials," United States Patent and Trademark Office.

The Patent Process

So you wanna patent something, do ya! Managing expectations, the patent process can take years to navigate with a range of decision points along the way. Let's discuss, and bring in some experts. Our guest star for the day will be Nathan Evans from Woods Rogers.

PLEASE READ OR WATCH

"Patent Process Overview," United States Patent and Trademark Office.

The Funding Landscape

What are the differences among angel investors, seed funds, venture capitalists? Not to mention, what different types of capital can these individuals and organizations provide? How might the funding landscape for the "Tech" be different from that for other startup companies?

PLEASE READ OR WATCH

"Types of Startup Investors," Carta.com

The Grant Funding Landscape

Virginia offers its own network of grant programs to support early-stage and growing companies. Let's get to know these opportunities, alongside the portfolio of grant programs at the Federal level. One of friends from VIPC will help us navigate.

Investor Terms & Conditions

The "derisking" of early stage fundraising also involves a wide variety of opportunities and protections found in the term sheets agreed upon between founders and investors. We will return to the story of Genentech and Kleiner Perkins to understand how these terms impact both founders and investors as the company grows and in the event of an exit.

PLEASE READ OR WATCH

David Touve, "Demystifying Investor Term Sheets," STRP.com

and for the deep dive...

"Term Sheets Explained," Carta.com

Exit. Stage Left

In April of 2012, Facebook acquired Instagram for $1,000,000,000—that's a Billion with a "B." While considered comical at the time—the startup had 13 employees and a week earlier had raised $50 million at a $500 million valuation—the deal ultimately proved to be a bargain of sorts (and an anti-trust discussion). Four years earlier, Zuckerberg offered to acquire Twitter for $500,000,000.

How can these numbers make any sense?

PLEASE READ OR WATCH

Shayndi Raice And Spencer E. Ante, "Insta-Rich: $1 Billion for Instagram," The Wall Street Journal, 10 APril 2012.

David Touve, "Startup Valuation Methods," STRP.com

Other topics we have in our quiver if/when we need to get back to basics...

Who is an Entrepreneur?

For today’s discussion we will leverage the story of Savage Beast and its co-founder Tim Westergren. We will also confront the challenges of the “persist or perish” decision, as the Savage Beast team faces the challenge of whether to continue against all odds or to quit the project.

PLEASE READ OR WATCH

Noam Wasserman & LP Maurice, "Savage Beast," Harvard Business School Publishing, 19 November 2008. (provided for you)

PLEASE BE PREPARED TO DISCUSS

When do you believe that Mr Westergren became an "entrepreneur?" Why?

Is it time to kill the Savage Beast?

Talking to Humans: Design Thinking

Different ways of thinking can also benefit from different ways of connecting with and understanding those for whom we are trying develop novel solutions. Gaining that understanding means actually talking to humans!

Our workshop today will involve a high-paced introduction to the design thinking process.

PLEASE READ OR WATCH

Liedtka, J. (2018). "Why Design Thinking Works." Harvard Business Review, September-October, 2018. (provided for you)

What's Your Problem: Problem Identification

Today's discussion will center upon the challenge of defining and understanding not only (a) the underlying "problem" any idea/invention is trying to address, but also (b) the people who or entities that experience this problem—and why.

PLEASE READ OR WATCH

Jose B. Alvarez and Ryan Johnson, "Doug Rauch and the American Food Paradox," Harvard Business School Publishing, 07 December 2011. (provided for you)

PLEASE BE PREPARED TO DISCUSS

What problem if Mr Rauch trying to solve?

Weird Science: Hypothesis Driven Development

The tools of science aren't just for, well, science. Thinking like a scientist—being hypothesis-driven—can also be the right frame of mind when developing novel products and new companies.

During today's session, we will distill a startup idea (aka, the hunch) into a set of hypotheses, while outlining the ways through which we could test those hypotheses using resources already at out disposal.

PLEASE READ OR WATCH

Steve Blank, "Why the Lean Startup Changes Everything," Harvard Business Review, May 2013. (provided for you)

May the Force Be With You: Market Context

No innovation exists in a vacuum. Instead, these new discoveries or inventions exist in the context of alternative ideas and solutions. And so, for our discussion today, we will gain some experience with a framework through which we might better investigate and understand the market context within which an innovation operates. Your homework: Read the article below and also go visit a grocery store paying very close attention.

PLEASE READ OR WATCH

Porter, M. E. (2008). "The Five Competitive Forces That Shape Strategy," Harvard Business Review, 86(1), 78–93. (provided for you)

What's it Worth to You: Value Proposition

Any innovation ultimately creates impact, impact which has value—whether measured in pure dollars or other terms. Yet, pricing truly novel innovations can be difficult as there might be no direct comparables in the market.

Our discussion will center upon the pricing challenge faced by the founders of Zipcar when they first launch their company—at a time when there was no comparable service where the service is launched. Also, be prepared to answer the question: how much is "silence" worth to you?

PLEASE READ OR WATCH

Myra M. Hart, Michael J. Roberts and Julia D. Stevens. "Zipcar: Refining the Business Model," Harvard Business School Publishing, 13 January 2003.

Sizing Things Up: Market Sizing

Estimating the number of people or entities who might benefit from any innovation is the sort of exercise ultimately designed for understanding how we make sense of markets and impact than for perfectly calculating the size of the market and our potential impact.

Our discussion today will center upon Zipcar in its early days, as the founders struggled with anticipating the possible size of the market. We will use this case to think out loud as we estimate potential demand for Zipcar's novel car hire service.

PLEASE READ OR WATCH

Myra M. Hart, Michael J. Roberts and Julia D. Stevens. "Zipcar: Refining the Business Model," Harvard Business School Publishing, 13 January 2003.

All Together Now: Business Model Canvas

PLEASE READ OR WATCH

Deishin Lee and Stephanie van Sice, "Polyface: The Farm of Many Faces," Harvard Business School Publishing, 08 October 2010. (provided for you)

Alex Osterwalder, Yves Pigneur, et al., "The Business Model Canvas," Strategyzer.com

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