SEVEN: Rules for Start Up Entrepreneurs

SEVEN: Rules for Start Up Entrepreneurs
See if you can qualify to join the Scientific Entrepreneur & Venture Capital Network on Linkedin.


Most VCs and entrepreneurs believe start-ups are inherently iterative, that a string of mistakes doesn't prevent success, but may even be the path to it. Generally, that view is correct, but there are a few choices made early on that have implications so deep as to be functionally irreversible, with profound implications for outcomes. Product and business models are evolutionary by nature, but we see four things a young company must get right:

• The founding structure, team and values
• Where the company is located
• Strong IP if possible
• The initial investors (and their terms)
• Learn from your early mistakes
• Keep team morale high
• Don’t stop to seek money for the company.

Good Founding Structure, Team  and Values
A good start up company usually begins with a solid founding team. The team can be small but all members of the team need to be extremely cohesive. Members of the team need to understand the vision and core value proposition of the founder for the company.
The company structure is key, it needs a lot of thought, the capital structure,  the amount of money to be raised as seed money, the use of its proceeds. Do not underestimate the process and the hurdles you may face.

Process and hurdles are small surprises, which will come more often as the company progresses fast, how you resolve small surprises is very important. If you think ahead, the there will be fewer surprises over time and the mean time elapsed between surprises increases. So the key is don’t assume plan, plan, plan.
Location of Company:
Location of company is very important to get funded. If you are a life science or medical device company you need to be in Orange County, Ca , or Silicon Valley or  in Boston to get funded and acquired. The VCs would like you to be where the talent is abundant. An IT or Social media company needs to be in the area where there is culture of social media eg in Palo Alto, Stanford not near Berkley or San Diego.
IP and IP Attorneys:
It is imperative to have a terrific patent attorney to file the IP for your great idea. Any mistakes in the filing of the IP can result in grave damage to the value of the company.


Initial Investors:

Make sure the value of the company is reasonable and you have solid initial investors. As you reach the 1^st round of funding , it is important who is the lead VC in the company

Learn from early mistakes:
Keep in mind we learn, we learn, we learn! Everyday as a start up team. Learn early and learn fast from your mistakes. Have frequent meetings with your team to discuss: “What we know, and what we don’t know”.

Keep team morale high:

Who says its easy, it’s not supposed to be easy, that is why you are the chosen few working on this project.  Make sure the morale is high, take breaks, encourage the team and think positive.  Get the team members off the project if they are overtly negative, you want the enthusiasm very high.


Don’t stop raising money:
Don’t stop, keep making presentations to investors and people connected with money. Build relationship with industry players that will endorse your product when you need it the most.

 

Golden Rule: Don’t give up! Success belongs to those who are persistent.

Life Science Networking Opportunity: SEVEN on May 24th, Pacific Club

SEVEN is currently screening Medical Device, Biotech, and Healthcare IT startup companies interested in presenting at an exclusive CEO/Investor Black Tie Event for Life Science companies. Table tops are limited to 20, and are an excellent opportunity to pitch to investors / industry leaders. If you are involved in a startup that focuses on innovative technology and consists of a strong team with a great background, then contact us to qualify for the event.

 http://lifescienceinvestorsummit.com/blacktie-overview.html

Why Orange County?

Orange County is among the top medical technology hubs in the nation and the world

OC was among the top 5 in investments by region among all sectors*

Orange County ranked top 5 in medical technology investments nationwide*

16 of 30 of the most active investing firms nationally are based in California, making it ideal for growth and expansion*

Orange County is central to academic research institutions such as UC San Diego, UC Irvine, and UCLA whose breakthroughs vitalize innovation

 

The Scientific Entrepreneur Venture Capital Network will be hosting a Life Science Executive Mixer at the Pacific Club in Newport Beach, CA. The one day Black Tie event is scheduled for Thursday May 24th 2012, and will start at 5:30 PM - with cocktails to be served, and presentations accompanied by hors d'oeuvres lasting until 9:00 PM.

Approximately 200 Life Science executives, investors, and startup entrepreneurs are expected to attend, with the event focused on bringing together Medical Device, Pharmaceutical, BioTech, and Healthcare IT executives, startups/entrepreneurs, and investors to boost the booming life science industry in Orange County, and the greater Southern California metropolitan area.
SEVEN is currently screening Medical Device, Biotech, and Healthcare IT startup companies interested in presenting at an exclusive CEO/Investor Black Tie Event for Life Science companies. Table tops are limited to 20, and are an excellent opportunity to pitch to investors / industry leaders. If you are involved in a startup that focuses on innovative technology and consists of a strong team with a great background, then contact us to qualify for the event.You could also mail us a copy of your presentation today, or call Raj at (714) 658-3039.