MIT Enterprise Forum

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MIT Enterprise Forum

• Chuck Digate
• June 11, 2003

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Personal Entrepreneurial Index
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Personal Considerations

• Take enough time off before you jump in
• Rally your supporters early and often
• Think really hard about your founding partners
• Plan to spend several years longer than you would
  ideally prefer
• Forget about building the next Microsoft

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Product Planning

• Do something difficult
• Dont bother with quick, test the waters
  products
• Should take at least 15 months from first
  engineers
• Must have patentable IP
• Gain confidence about API or other IP
  availability
• Spend time with customers early in development

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Venture Capital

• Dont settle for 2nd best
• Deep pockets
• Well networked
• Rich experience
• Raise enough money in the first round
• Complete development
• First paying customers
• Dont raise too much more than you need
• Liquidation preferences may significantly reduce
  returns
• However, you do need some rainy day money
• Minimize number of VCs on your Board

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Team Building

• Dont be pennywise
• Fill out the executive team early enough
• Hire only A players
• Hire at least one sounding board executive
• Be very selective
• Check multiple references
• Use your VCs heavily

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Exit

• Get well positioned for multiple outcomes
• Think and re-think your options when the time
  comes
• Push your investors to the edge on timing issue
• Get absolutely the best person to assist you
• Take care of everybody

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MeetASAP
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Meeting Window-Basic
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Meeting Window-Advanced