By Shannon Liston, Techstars Corporate Council
Just to be clear: This sheet is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Companies should consult their own attorneys for legal advice on these issues. Because of the generality of the issues discussed in this piece, the information provided may not apply in all situations and should not be acted upon without specific legal advice based on particular situations.
Sometimes, startups fail.
It’s painful and brutal—and nothing to be ashamed of. It’s part of many, many entrepreneurial journeys. But along with the emotional ups and downs, you’ve got to deal with the practical legal side of shutting down your startup.
The legal name for one version of this is corporate dissolution. If you don’t need the protections of bankruptcy (you’ve got low risk of litigation or disputes over claims), corporate dissolution may be right for your startup.
The Techstars legal team has created this best practices sheet to give you guidance and practical tips if your company is facing dissolution. Unsurprisingly, these will be different depending on which state you’re incorporated in—this sheet focuses on Delaware, because of the large number of US corporations incorporated there.
Long-Form v. Short-Form Dissolution
Many smaller companies liquidate without the protections of federal bankruptcy law, as corporate bankruptcy can be very expensive. Instead, you can get some of the same protections through Delaware’s long-form dissolution process—it gives boards of directors similar protections, and provides company creditors with notice, plus an opportunity to present their claims.
Work with your legal counsel to make sure you meet all the formalities of the long-form process, like 60-days notice to all known claimants, including public notice, and a court approval process ( 8 Del. C. 1953, § 280).
The formalities of the long-form process may be overkill for your company, especially if you’ve already sold your operating assets, if you stopped operations a while ago, or if you’re unlikely to have unknown creditors.
In this case, short-form dissolution may be right for you: it’s simpler and less expensive for many companies, and comes with fewer formalities than the long-form process (8 Del. C. 1953, § 275).
7 Steps to Dissolve a Business
- Obtain Board and Shareholder Approvals. Your company’s Board of Directors must approve the decision to dissolve and adopt a Plan of Liquidation. A majority of the company’s shareholders must also approve the decision and the Plan of Liquidation.
- Pay Franchise Taxes and File an Annual Report. You must pay Delaware franchise taxes in full (including the current calendar year franchise tax) and file all applicable Annual Franchise Tax Reports. The Delaware Division of Corporations will not accept the Certificate of Dissolution (see below) until this step is done.
- Notify the IRS. Within 30 days of the Board approving the dissolution (the dissolution resolution date), your company must file a notice of dissolution with the Internal Revenue Service: Form 966.
- If the dissolution involves the sale or exchange of corporate assets, Forms 8594 and 4797 might also be necessary.
- See the IRS checklist for other required filings.
- File for Dissolution with the State. Once the decision to dissolve is properly approved, the company must file a Certificate of Dissolution with the Delaware Division of Corporations.
- If your company has stopped doing business and doesn’t have any remaining assets, it might qualify to file the short form certificate of dissolution.
- If the company is registered to do business in another state, it will have to withdraw or surrender those qualifications.
- Provide Appropriate Notice to Creditors and Stakeholders. Follow state law requirements to give notice of the dissolution to anyone with a claim against the company. Delaware’s long-form dissolution notice requirements are here: 8 Del. C. 1953, § 280.
- “Winding Up”. After the dissolution is effective, the dissolved company is deemed to continue, generally for three years, for the limited purposes of winding up per the Plan of Liquidation. This means:
- Settling and closing the business;
- Liquidating remaining corporate assets;
- Settling claims;
- Resolving any lawsuits;
- Making final distributions to creditors, and if funds remain, to applicable shareholders.
- File Final Federal and State Tax Returns. Review the IRS checklist for closing a business and filing final returns. For the company’s final returns, check the box to indicate the tax return is a final return.
Do’s and Don’ts
Do: Act in accordance with your fiduciary duties.
It’s your responsibility to focus on maximizing the company’s value. For more on your obligations as a Director, see here.
Don’t: Disappear; act in a manner that presents a conflicting interest; arbitrarily pay back one creditor over another; etc.
Do: Send the filed Certificate of Dissolution to investors, describing your decision to dissolve and your efforts to maximize return to shareholders.
Don’t: Use dissolution as an escape hatch.
Dissolution alone does not abate actions, suits, or proceedings begun by or against your corporation prior to dissolution—or, generally speaking, for a period of three years after dissolution.
Do: Educate yourself on the several ways to wind down a company.
Talk with your lawyer about which way to wind down your company is the best choice for your situation—the complexity of your company (number of employees, investors, creditors, etc.) will have a big impact on this.
By Sabrina Kelly, Techstars Vice President of People Operations
At Techstars, we define our mission in People Ops as the following: “We are strategic partners in building Techstars business by maximizing the value of our most important asset—our people. We attract, retain, develop, and support Techstars employees globally and aim to uphold our culture and values, in a manner that is inclusive to all.”
As VP of People Ops, I hear a lot of questions from founders. This series aims to answer the most frequent questions.
Q: What is the single biggest People Ops mistake you see startups make?
Hiring the wrong leaders and not course correcting soon enough.
Hiring leadership is hard at any stage, but there is a crazy amount of pressure on startup founders to hire them quickly. It’s really easy for founders to lose sight of the values that are important to them in these hires, due to pressure from the Board or other advisors on “who” and “what” is right for their business. This whiplash is amplified by the fact that they likely have a bunch of employees that need experienced leadership, and they are band-aiding that at the moment themselves.
Mainly, don’t ever make that hire unless you are 110% pumped to sit in the trenches with them.
My advice, as impossible as it might sound, is to take the time to get it right: be extremely thoughtful about the profile you are looking for, get alignment with your leadership team on how to interview, proactively source from diverse pipelines or hire a recommended agency to support. Mainly, don’t ever make that hire unless you are 110% pumped to sit in the trenches with them.
So, what if you do all of that and in six months you start to sense that it’s not working? As painful as it might be, you need to dedicate the time to figure out what the problem is—and if you find out it’s them, you let that person go as soon as humanly possible. It might feel like the company will crumble if you have to start over, but that pain is nothing in comparison to what can happen if you put up with the wrong leader for too long.
Want to #DoMoreFaster? Apply to a Techstars mentorship-driven accelerator today.
Techstars Mentor Jason Mendelson recently gave a talk to the Boulder program called, “20 Ways to Blow Up Your Company.”
Here are a few highlights. Be sure to check out all the details in the video below!
- Pick a Bad Idea
- Pick Bad Employees
- Being Arrogant
- Focusing Only on What You Don’t Know
- Being Overly Emotional and Not Analytic
- Know Your Business Model
We recently held an AMA with Techstars’ Co-CEO, David Cohen, where he answered commonly asked questions from founders about topics such as forming a team, developing an MVP, and applying to an accelerator program.
Any advice to founders who need more resources to develop an MVP or a presentable prototype? What’s the best method of getting investors to hear out the idea/plan when you don’t know anyone in the community?
These are kind of different questions so I am going to go at them separately. I’ll tell you a quick story of a company called Everlater that sold to MapQuest, AOL and came through Techstars. When I first met Nate and Natty, they were Wall Street types and loved to travel. We funded them, but we only funded them after watching them try to learn how to program.
They were so passionate about this idea coming out of their minds into the world that they actually taught themselves how to code – they were terrible at it, not very good at all. But later on, they got better, but it was still a crappy prototype and a crappy MVP. So step one is, having something is better than nothing.
If you can’t find somebody to do it, my question is, why can’t you do it? Do you think that writing a little software code is something that you have no ability to learn? It tells me something about you, that you are not willing to try. You could find a friend who does know how to program to spend a couple hours with you and show you how to get going.
You could say look, this is what I am talking about, it doesn’t work yet, but it’s what I’m talking about.
I believe great entrepreneurs do stuff.
If you can’t do that and you are allergic to keyboards and computers and you’re just never going to code, that’s cool too. Some of these languages, by the way, are very easy to learn now, it’s not like learning a foreign language, you can get a lot of help from the editor, and there are various simple languages out there that you can learn how to prototype things quickly.
There are lots of coding classes available online, so my first question is, why aren’t you doing that? If you can’t get somebody in the world who has those skills excited enough about what you are doing, or you can’t make friends with somebody who can help you with that, that is also a red flag for me as an investor.
The answer to the question is like anything else, just do it. That’s why it is Nike’s slogan, it’s so great and really the easy answer to a lot of things. Plus, I’m an early stage investor, I don’t care if the prototype is presentable, it doesn’t have to blow me away. You just have to start the meeting and say look, I hacked this together myself, we need funding to hire engineers and obviously the user experience is terrible. You know it is terrible, but that’s okay. You’re self-aware, it doesn’t have to be beautiful and great.
I think doing attracts investors. Talking about doing makes me think maybe you’re not an entrepreneur.
For the second part of the question, I would take a quality over quantity approach. I would find someone who does know the investors that you are targeting and I would figure out how to spend time with them. For example, I would go to someone that they funded or someone that they have worked with and mentored before and say, will you help me with this? They are likely more available than the investor and I would use them as a way to create an introduction to the investor.
I would also suggest you read my blog post on DavidGCohen.com called Small Asks First. It’s about the idea of not over-asking, which is really important in entrepreneurship. You are trying to get to a resource, it is very busy, so get an introduction from somebody they know – it’s not that hard, and just ask them for something small.
Let me give you an example of something big – lunch. Lunch is very big – you’re asking them to go spend time with somebody they don’t know for an hour, which is an awkward situation, especially if they’re an introvert like I am. That’s a big ask. I know it feels small to you but it’s a really big ask to me. Coffee – huge ask. I have another blog post called Coffee or Lunch? that I wrote on this topic. They would have to go out of the office, meet you somewhere, and the biggest thing is, I don’t know you… it’s a big ask for a first ask.
Here’s a small ask – send me a paragraph or two of why I can be helpful to you, and the one really simple thing I can do to be helpful to you. I have another blog post that is called The Perfect Email. Somebody wrote me out of the blue, not even introduced, with enough context that I thought it was the best email I ever read and so I reacted to it. I ended up having an exchange of dialogue with that person; I even blogged about it. I don’t know what happened there, probably nothing huge, but hopefully I was helpful in some way.
I think the context of why you’re reaching out to me and asking for something that is easy for me to do is great, because going to have lunch is actually not easy to do – I’m busy, I’m introverted, etc. What is easy is asking me to click on a link and tell you what I think of the messaging on your website, the primary tag line or whatever. If I don’t respond to that, I’m just an ass. That takes ten seconds for me to do. It’s a small ask, it creates engagement, I can just click on the link, see what you’re doing, have to think about it for a second and then respond. Now, you’re actually starting a dialogue by making a small ask of something that is very easy for that investor to do. That is a great way to build a relationship and you go from there. You can do that at scale to figure out who is interested and engage more with those people.
Eventually, you’ll end up having lunch and a meeting.
At Techstars, we fully believe in the idea that no one is “too far along” for Techstars. Inversely, nothing is too early. Techstars has a program for every step of the entrepreneurial journey – from startup programs like Startup Digest, Startup Week, Startup Weekend and Startup Next to later stage offerings, including the accelerator program and venture capital for add-on funding.
Today’s post comes from Nishika de Rosairo, CEO, Creative Director, and founder of dE ROSAIRO. Before becoming an entrepreneur, Nishika built a corporate career with Deloitte, Cisco, and Salesforce. In addition to leading her business, Nishika serves on several boards including Startup Women, Upward, and the Center for International Business Education and Research.
“Aren’t you scared?”
“What will you do if you fail?”
“You have no experience in the industry, how will you succeed?”
“Don’t worry, you can always go back to Corporate America”
… and so the questions and comments flooded in…
What surprised me the most was that these questions and comments were being dished out from a combination of people who knew me very well, and also from those who didn’t know me at all.
I soon started to realize that non-entrepreneurs were projecting their own anxieties of starting a business onto me.
So the real question became:
How do you listen to the parts that matter, and turn off the parts that don’t?
An Entrepreneur is Born
For me, entrepreneurship has always felt very real. I was still a teenager when I came to the realization that life would be boring if everyone succumbed to practices and principles denoting linear patterns of thinking and execution, simply because they made life easy to explain and easy to understand.
My version of happiness started to emerge around the same time when I turned to mentors such as Sir Richard Branson and Anthony Robbins. They taught me that happiness was a state of mind, achieved through a non-linear journey of strategy, discovery, and perspective: the perfect mindset for an entrepreneur.
I grew up with an adventurous spirit, and by the time I reached my 30s, I was living on my fourth continent, had traveled to over 40 countries, and my career in the corporate world was ripe and flourishing. Over my 10 years in Corporate America, I had the incredible opportunity of learning a repertoire of deep knowledge and expertise from the best of the best: Deloitte Consulting, Salesforce, Apple, Levi, Cisco, Chevron, and many others.
Even still, I wanted more.
I decided it was time to turn in the stability of a steady paycheck for something that was much more adventurous and impactful.
I wanted to change the world, one design at a time.
Building a Business
Finally, my business – dE ROSAIRO (pronounced ‘day ro-zai-ro’) — was born: it was a childhood dream coupled with a deep desire to influence the world through the inherent psychology behind the clothes we wear.
I spent 10 months writing my business plan and building the business on nights and weekends, all while still employed full time at Salesforce. At the end of that time, I had my first collection of sketches sitting on hangers in a sales showroom in Los Angeles. I built dE ROSAIRO on the founding principle of ‘Look Feel Lead’, which translates into — how you Look, is how you Feel, is how you Lead. The idea being that how we dress influences how we feel, and on the flipside, how we feel influences how we dress.
No matter how many people have shared their years of wisdom with me, not one person, or any one experience, could have truly prepared me for the broad depth and range of mental and physical strength it takes to be an entrepreneur.
Doubt is Part of the Journey
There are days I have wanted to pull my hair out, and then there are days that I know I am doing exactly what I should be. I would be lying if I didn’t admit the rough days.
But the truth is: doubt is a part of the journey, as it continues to provide me with an opportunity to question even my most basic set of assumptions. Healthy businesses cannot be built on complacency and self-assurance.
Mistakes will be made, money will be lost, and through it all, the question that we will need to keep answering is – am I still aligned with my vision?
Why does alignment matter? It matters for two key reasons:
- When we launch a business, we should aim to build a foundation that aligns with our personal set of values. We need to ask ourselves: what matters to me? How do I want to affect the lives of others? What do I want my legacy to be?
- Doing ‘good business’ is no longer the icing on the cake; in today’s world it is a basic expectation. This means we each have a role to play.
Through this journey, what I’ve come to discover is: there is no greater measure of self-fulfillment than when profit, individual values, and ‘good business’ intersect.
So when you’re on the brink of YOUR entrepreneurial journey, and when people ask you:
“Aren’t you scared?”
“What will you do if you fail?”
“You have no experience in the industry, how will you succeed?”
Tell them that you would rather give it your best shot than regret not trying.
Tell them that you desire transformative growth in your life that a steady paycheck cannot provide.
Tell them that changing the world is worth the calculated gamble.
Sara Capra is the co-founder of Orate – a DC-based startup that makes it simple for event organizers to find speakers within their budgets.
Orate’s story began last year at Startup Weekend DC – an event where participants launch startups in less than 54 hours. Orate took first place in that weekend’s competition – even though Capra had taken a chance to be there in the first place.
Capra entered Startup Weekend with some concerns that her idea wouldn’t resonate with event participants. She was quickly proved wrong — she and Orate co-founder Veronica Eklund ended up building the largest team, which developed a mock-up of the future platform.
Sara shared Orate’s journey with Startup Weekend DC’s Elvina Kamalova. Answers have been edited for length and clarity:
Tell us about Orate.
Orate is an online platform that simplifies the process of finding, vetting, and booking public speakers simple. Our mission is twofold: 1) Make it easy to find quality speakers on any budget; and 2) Assist speakers in more effectively marketing themselves and getting them in front of the right audiences.
What was the role of Startup Weekend in starting and developing your project?
The Orate journey began at Startup Weekend DC in 2014. It was the launch pad for what Orate has become, and sparked the initial evolution of the concept. We began with an idea to alleviate the stress of filling last minute speaking cancellations. That resonated with many people, but through the feedback process over the weekend, we decided the business model around that was not one that would be sustainable.
Through our mentors, sending out surveys, and in-depth conversations with the team, we decided the business model needed to be based on more than that. Startup Weekend helped to give us the ecosystem and structure we needed to take our first big step in understanding how to test and validate our ideas.
How did you build your team?
Building the team during startup weekend was mostly organic. Initially, I was concerned there wouldn’t be enough interest. One of the great things about Startup Weekend is that you only need two people to work on an idea. My co-founder attended and joined my team, so we would be able to explore the idea no matter what. It turns out there was quite a bit of interest, and we ended up with the largest team in the competition. I thought our most important team member would be a developer, ideally one who knew front and back end since this was meant to be a web and mobile app.
One of the most important lessons I learned that weekend was how much you can do with a little bit of resourcefulness and creativity, when there’s a lack of technical expertise. We had a wonderful graphic designer.
As opposed to trying to build out any applications over the weekend, she instead mocked up what we wanted the website to look like. That way, we could walk the audience through the customer journey, without getting too bogged down with feature aspirations and technical details. After all, it was just the beginning! We knew if so much could change in one weekend, there were many more changes to come.
What are the biggest challenges in your startup journey?
The biggest challenges have shifted over time. Initially it was staying focused. There were so many things to be excited about – potential partnerships, big ideas, ideas within those ideas, the way you envision the company 1, 2, 3 years down the road.
The challenge is taking that long-term vision and working backward to map out your trajectory starting with today, and breaking down steps for initial short-term growth. We’re over a year in and have now seen a lot of our early ideas come to fruition. We are still constantly brainstorming, but we’re much more skilled at capturing ideas for a future state, and continuing to stay focused on the short-term execution to make them happen.
The other challenge we face is getting into the heads of our customers. Collectively, we’ve conducted hundreds of formal and informal interviews, feedback surveys, and tests. While there are times that what users say and what they do are parallel, we have found that monitoring their actions is most effective.
Did you have technical skills coming to SW?
Aside from some basic HTML (we all had MySpace, right?), I didn’t have any experience with coding going into Startup Weekend DC. However, attending the event and launching the company inspired me to spend more time learning about software development, and gave me the ability to discuss the basics of other languages when I need to.
Tell us how you realized your goal for building your venture.
I’m still getting there! We are in the middle of fundraising to get to our next phase. We have achieved a lot so far. We’ve scaled our speaker database extensively, had only positive feedback from clients, and launched a new website and subscription service. While I’m proud of what we’ve accomplished, we don’t rest on our laurels. We have big plans moving forward and the wonderful team me and my co-founder have built is at the core of making those happen.
How did you raise your first funding?
We socialized Orate early and often. We pitched a lot, organized the data and financial information we had to help us have informed conversations, and put all of our cards and chips on the table. Our initial round was mostly from angel investors, and some funding came from the accelerator program Orate participated in called The Startup Factory.
What would be your advice to starting entrepreneurs?
Sharpen your communication skills. Entrepreneurs must always be networking and selling, even if their title or job responsibilities don’t formally include it. Entrepreneurs have to effectively communicate with and motivate their team to execute on the vision. They need to be good role models, and inspire the team to be brand advocates. Establishing and growing relationships are crucial to starting a company. Being a genuine, impactful, and effective communicator, is instrumental in that process.
It’s also important to get comfortable being uncomfortable. Take the “no’s,” the risk, the ambiguity, self-doubt, and constant change, and learn from it all. After you learn from it, embrace it. Two of the best things about life are that almost nothing is final and the possibilities are endless. Reflect on the lessons you learned, what led you there, and use them to make better, more informed decisions moving forward. This is one of the reasons it’s crucial to have good advisors and mentors. You need a brain trust that can help you step back, put things in perspective, and work through challenges.
To start your own startup story, join us for Startup Weekend on September 25-27. Register here and buy your tickets today!
With an acceptance rate of a dismal 1 percent, getting into 500 Startups’ accelerator program is definitely not easy. To put that number into perspective, Stanford’s fall 2012 acceptance rate is a more encouraging 6.6 percent.
Now, to work on a bitcoin startup and get accepted into the prestigious accelerator program, that is even more challenging.
So how did CoinPip, a bitcoin wallet service and payment solution for merchants in Asia started in January 2014, get accepted into 500 Startups Batch 11?
Back in 2010, the seeds of CoinPip were already planted when Ben Bernanke announced Quantitative Easing (QE) infinity. Anson Zeall, now founder of CoinPip, was then a successful hedge fund manager returning 35% P.A. for investors. He thought it was time for something else when he heard the news. A friend of his then introduced him to bitcoin and he jumped in.
Within a short span of 1 year, the company has expanded operations quickly into neighbouring countries – Indonesia, Taiwan, Hong Kong, Singapore, Philippines and even the USA. However, not all was easy and smooth sailing. In mid 2014, the company was running out of money. Around this time, a group of startups in Singapore, together with CoinPip, started the Association of Cryptocurrency Enterprises and Startups Singapore (ACCESS). This caught the attention of Sean Percival – venture partner at 500 Startups and the road to securing their seed funding began.
The first secret is – Do something big and bold to show your belief
This coming Friday, 17th July, Anson Zeall will be sharing with participants of Startup Weekend Asia-America in person, his personal story of overcoming all obstacles to finally building a company in the Bitcoin space that spans across countries in Asia and America.
See you there!
Startup Weekend Asia-America
July 17th-19th, 2015
After 9 Startup Weekends in three years, I’ve come to the conclusion that it is one of the most exhilarating experiences of my life (in fact, I’ve written previously that I might be addicted to it). However, for some that the journey could be really intense at times, and not everyone makes it to the finish line feeling the same way.
Recently, I facilitated Startup Weekend Miami: Diversity Edition, where I was taught the concept of “la pasión,” which is Spanish for “people in Miami are really, REALLY emotional.” I was tasked to harness la pasión in a community that had a plethora of it, in a way that would make everyone come away from Startup Weekend Miami feeling as wonderful as I had 8 times before.
Below is a list of lessons and tips for a facilitator, organizer, or volunteer to apply that would help maintain a sense of stability to an otherwise potentially chaotic event.
1. If you’re an organizer or volunteer, your mission is to execute the event as orderly as possible
In Startup Weekend, Murphy’s Law generally applies – anything that can go wrong will go wrong. It is vital that every organizer and volunteer is informed of the weekend’s tasks and can easily communicate with one another to correct any situation that arises.
Best practice: Print up a universal task list that specifies each delegation and giving a copy to all your volunteers. That way, even if they don’t have an assignment, they can look at the list to see if someone else needs help with something.
2. If you’re the facilitator, your first priority is to take care of the lead organizer
Generally, lead organizers shoulder the most burden, and the stress can be overwhelming. They should be acknowledged especially for their months of hard work leading up to the big show.
Facilitators should check in with them hourly and make sure they’re fed, hydrated, and as relaxed as you can get them. If necessary, give them a hug (more on that later).
3. Communicate to people on their level – perhaps even in their language
Startup Weekend is an educational event at its core, and the most effective way to teach is to contextualize it with abstract reasoning that they understand. Learn more about them to understand their thinking processes.
An added challenge for me: most of the attendees of Startup Weekend Miami speak Spanish as their first language. I do not – except for what I’ve learned on TV – so when people weren’t looking, I’d review my Dora The Explorer Lessons on YouTube and bust that out randomly. You’re welcome, mi amigo/as.
4. If teams are arguing without end, facilitate a scrum
Inevitably, disagreements occur in a competition, but they become difficult to resolve when people are not talking in a respectful, orderly fashion.
To resolve this, get them to stand up and talk in a circle, one at a time. Here’s a quick video to teach you how to run a proper scrum – a very popular method of coordinating large, diverse teams.
(The key lesson starts at 6:32)
I did this with one team in particular. More on that later.
5. Have a quiet space – one for volunteers, one for participants
We all need to decompress, so give your people a place to rest, nap, socialize, and blow off some steam. Don’t go so far as create a distracting place such as a game session – you still want people to focus on on the main goal.
6. Throw in a dance session or two (you’ll have to start it)
It was a foregone conclusion that I’d be dancing in Miami. It was just a matter of how often. I like to keep the music playing in a common area for attendees to come out, relax, and practice their salsa.
Dancing is a great way to stay loose and relaxed, and it’s probably less terrifying than, say, public speaking.
7. Prevent “hanger” by providing snacks and insist that everyone drink water frequently
Startup Weekend is a high-energy competition, and with brains working on overdrive, they’ll need to be replenished. I try to have a bottle of water and a protein-rich snack on my person at all times. Keep your people well-fed, and they’ll be well-tempered, too.
8. Give out hugs and high-fives whenever possible
At a hyper-networking event like Startup Weekend, these physical embraces lead to lasting connections that you’ll appreciate long after this experience.
9. Plan to finish your event as soon as possible…
- Links only: Instead of letting people present and demo on their own laptops with varying file types, have them send cloud-based links to both and put them in a single document. This moves things along quickly in between Q&A sessions.
- 4:3 presentation model: Limit presentations to 4 minutes with a loose 3 minutes for judges’ Q&A works well, too. Judges average about 45 seconds per question, so a group of 3-5 judges works well.
Why do we do this?
10. … so that everyone will go to the after-party
I love the idea of an after-party, but often Startup Weekends run too late, and who can really stick around to party on a Sunday night? However, if you aim to end your event around 8pm or earlier, and your event was a rousing success, you’ll have a great time.
Also, try to have ALL of your parties in Miami, regardless of your own location. Here’s why:
When a team that nearly imploded on Saturday night…
Team BreakinBread was a fun project for me. Constantly bickering in Spanish over every single detail, I was positive that they would implode and disband by Saturday night.
To fix this, I made them do a scrum. By getting them to talk in turn and truly listen to one another, they realized that they were actually a well-rounded team that agreed on one thing: they had communication problems.
Afterwards, they delivered a beautiful presentation that impressed the judges. The rest is Startup Weekend Miami history: they won first place.
Or when a team that won 2nd place got a standing ovation…
Ernie struggles to get where he needs to be due to the lack of convenient transportation options for the disabled. His dedicated friend Juan pitched an idea:
An “Uber for the differently-abled,” Juan wanted Ernie to have access to the ride-sharing technologies that dominate the startup marketplace today (e.g. Uber and Lyft). They found great validation by tapping into people’s good nature – an uncommon approach for a Startup Weekend team.
Once I announced their second place win, Ernie stood up and made his way to the main stage. With every step, more and more people rose with him and applauded his victory with deafening cheers of support.
Or when I could not stop smiling when I was presented with this amazing certificate
The text reads:
“A special recognition for surviving your
MIAMI DRAMA INITIATION
Let all who view this document know you survived Miami. We are diverse, speak at the same time and have a rollercoaster of emotions, but at the end of the day, we’re all family and end the night laughing with J’s (JAJAJAJA). You rock!”
Perhaps I had been a bit of a curmudgeon the whole time…
In short, Startup Weekend is indeed a roller coaster (it’s designed that way), but for a small minority, that can be an unpleasant experience. Emotions are meant to run high, but there are ways to keep it balanced yet still exciting.
I hope these suggestions serve as a way to hold someone’s hand to make them feel safe right before they take the deep plunge into entrepreneurship.
Good luck, and thank you, Startup Weekend Miami: Diversity Edition!
Lee Ngo is a community leader based out of Pittsburgh, PA.
New York City will host its first business-to-business (B2B) themed Startup Weekend event on May 15-17, sponsored by Intuit. In preparation for this event, we gathered a panel of experts and passionate entrepreneurs at WeWork Fulton Center on April 29th to share inside knowledge and firsthand stories about some of toughest challenges in launching a B2B startup. If you missed the B2B panel event or want to relive the highlights, here is a recap of all the top inside tips and takeaways.
Defining B2B (vs B2C)
At its core, a B2B is a business supplying a service/product to another business. Meredith Wood, Editor-in-Chief at Fundera, highlighted that B2B companies aim to address a real need, whether it is to streamline processes or increase efficiencies, whereas there is more “want” involved in the purchase decision for business-to-consumer (B2C) products. Wood also noted that there is often a larger barrier to entry when starting a B2B company and stressed the importance of market trust, which was echoed by all the panelists. At a B2C level, the purchase decision ultimately affects the one consumer, but at a B2B level, the decision could impact tens, thousands of people, hence the additional barriers and security/privacy concerns.
The panel was quick to address other differences such as pointing out that B2B sales models are completely different and often more complex. For example, the sale of a candy bar to an individual, which only involves the store and the customer, was compared to the licensing of a candy bar which involves a whole team of lawyers and licensing agreements. For a B2C company, the challenge is to spread the product far and wide. Conversely, for B2B companies, Marisa Garcia, Director of Retail Engagement at JOOR, addressed the need to focus on building good relationships that lead to success. She encouraged attendees to identify key players, validating your product, and finding a good market fit.
Wood noted that, unlike working with enterprises, selling to a small business is scarily similar to selling to a consumer and that a lot of B2C platforms, such as Facebook, work great in the B2B space as well. Most small businesses use Facebook and being active on the same platforms as your customers can be helpful for establishing trust with your target audience. In fact, when asked about what category companies such as Etsy, Seamless, and Google fall into, Jeff Ragovin, Managing Partner at Ragovin Ventures and co-founder of Buddy Media, pointed out that there are there is another category, of business-to-business-to-consumer (B2B2C) companies. For example, businesses are increasingly using Seamless to feed their staff, a rare occurrence that blurs the line of the capacities a B2C company can fulfill, usually seen with enterprise platforms.
B2B trends and opportunity
Ragovin declared that the mobile is a huge opportunity for B2B startups. The average person reaches for their phone over 100 times a day and as the mobile landscape evolves, everything is becoming mobile first. More importantly, Google recently announced that they have changed search results to prioritize mobile-friendly websites. The takeaway: in order to disrupt the B2B marketplace, think ‘Mobile First.’
Yves Lawson, Vice President of Technology Strategy for Bank of New York Mellon, noted that the success of apps such as Robin Hood are demonstrating a paradigm shift in a FinTech space that used to be highly specialized for the wealthy. The same tools for wealth management and growth advisors are now available for everyone, impacting the economy on how we see wealth in the future.
Success in the B2B space starts with empathy
Overall, the panel had a lot of great advice for the attendees but all of them stressed the importance of gaining trust and providing great customer service as keys to success in the B2B space. Lawson stated that the B2B companies that stand out from the rest are the ones that go far with relationships and maintain good customer service, even if a companies has messed up or made a mistake.
Garcia highlighted the importance of empathizing with your customers. Her recommendation was to consistently ask yourself, “How can [I] make my customers’ lives easier?” and stressed the power of engaging people in conversations to demonstrate that you really understand the customer’s pain points. After all, “how can an entrepreneur really solve [your customer’s] needs or problems if you don’t feel their pain?” She shared about how a strong understanding of JOOR’s customers helped the company to create a product that consumers are more likely to adopt and find useful.
For Wood, was the most important aspect of a B2B product is how much time it can save businesses. She claimed, “People are willing to spend more if you can save them time. Time is money, as you can convert saved time into monetary value.” She cited that there were products she stopped using because it made more work than the time it saved.
Furthermore, she compared startups to a newborn baby as an analogy to drive home the importance of getting customer validation advising to “let your children go out and play with other people.” She also importance of a great user experience and customer service, getting products in front of early users and acquiring feedback.
Good customer service, networking, and partnerships
All four panelists agreed that knowing your market is the first step in starting in the B2B space, because considerations for working with a small business versus an enterprise company can be a very different experience. For example, Lawson noted that when working with large enterprises, it is helpful to reference competitors or other notable companies who use your product or service.
However, regardless of size, the panel agreed that responsiveness and customer service applies to all B2B companies. Citing how a small blunder could turn into a national headline as seen with airline companies as an example, the panel suggested that establishing a responsive and quality customer service system, by leveraging tools such as Twitter and Zendesk, will not only build trust but also demonstrate credibility that will ultimately win customers. The panel also suggested making the effort to always be reachable and to show that there is accountability to build customer trust.
Ragovin encouraged attendees to keep their networks fresh and emphasized that networking is really a two-way street that is much more fulfilling when you’re willing to “pay it forward.” He urged attendees to think about how they could help others, and noted that people are generally willing to meet when ideas are constantly being exchanged. From a business side, he accentuated the need to focus on providing actual solutions to fix your customer’s problem. If your product is not fixing a problem, there is no need for it and it needs to be reevaluated.
For smaller businesses, Wood shared how partnerships with accountants, or experts in her target market, has helped her to reach her ideal audience, noting that most small business owners will trust their accountant over everyone else. Additionally, working with trade associations is also helpful for reaching small businesses in specific industries.
In closing, Garcia highlighted the power of the network effect of getting your fans and customers to promote your brand for you. She emphasized the impact of word of mouth marketing, which ultimately comes from providing good customer service and satisfaction, bringing us full circle with yet another example of why customer service is key for launching a B2B startup.
Ready to launch the next big B2B idea?
To inspire the audience, each panelist shared a few of their favorite B2B products that they use frequently: Salesforce, FreshBooks, Facebook, Lightspeed, Intuit, and CoSchedule. If you’re ready to launch your next idea that solves a problem that businesses face, come meet some of the panelists and additional NYC based B2B mentors at the next Startup Weekend B2B Edition on May 15- 17. Don’t miss your chance to register! Tickets always sell out.
Heads up: special prizes from our sponsors at Intuit will be offered to the top ideas that incorporate the Intuit API to help small businesses. We encourage you to check out more info on getting started with Intuit Developer by clicking here.
If you have any questions about the upcoming event, please email the organizing team at firstname.lastname@example.org.
Written by Toma Kondrate
Photo credit: https://unsplash.com/
All investors surely know how to select startups based on their founders’ personal and professional qualities. But does every founder know if he was really meant to be one? Having a marvelous idea is not enough, on the contrary, it’s just a start line for the rocky journey to successful entrepreneurship.
If such thing as founder’s DNA exists, then probably some of the founders are screwed already by lacking magic genes in their blood. However, if you have a brilliant product and want to get investors’ money, there are certain things that qualify you as a “wanted” or “desperate” founder. So what is the secret formula?
Get your genie out of the bottle
There are plenty of reasons why angel investors, venture capital funds, startup accelerators wouldn’t want to take a risk on you. If you’re a criminal, a lazy-ass or a liar, you’re already in the black list with almost zero chances to make it to entrepreneur. In any other case, you may prepare yourself for a successful venture. StartupHighway, the first Baltic startup accelerator, names few tips on how to win the startup lottery and minimize the risk of failures.
# 1 Get ready for the test
The first phase of your entrepreneurial potential’s evaluation is an examination of your personal qualities and skill sets. Every investor wants to know who they are going to deal with and you’ll get to the top of the list if you’re smart, resourceful, venturous, flexible, innovative and farsighted. Your determination to go until the end is your ticket to big wins. If you pass the test, congrats, it means you fit into the category of founders who are “ambitious and ready to take on their idea to the next level”.
# 2 Shape a decisive vision
Obviously, having a superb idea is not enough. You have to know everything behind it – problem it’s solving, market size, potential growth, even the exit strategy. Investors are not funding startups because they’re simply good-hearted, the truth is they want the payback without the long time lag. The earlier you understand it, the better founder it makes you. In fact, change and adapt your vision as you go – combine it with a real time data. As Reid Hoffman, the founder of LinkedIn, once said, “You don’t necessarily ever end up at that big vision that you were thinking about.”
# 3 Assemble your team precisely
Great startups are made by great teams. You don’t have to be a superman or “I can do it all by myself” guy to set up a world-class business. The power lies in the professional skills of your teammates, so choose your fellows wisely. Avoid the overlap of competencies and cover the most needed skill sets by bringing the right people on board. Think about Guy Kawasaki’s Law of Pre-Money Valuation saying that “for every full-time engineer, add $500,000; for every full-time M.B.A., subtract $250,000” while selecting new team members on board. The aim is to share the trust and compliment each other’s weaknesses, but also to exchange know-how.
# 4 Be resistant to negative answers
Choose to test and fail fast in order to get closer to your wins. Learn to hear “No” and don’t take it for an answer. Imagine it’s a game without game over, simple as that. Each investor counts on your ability to combat failures as that’s how they presume your overall capability to handle future business. If a founder successfully completes the startup level, he will have to pass business scalability level by becoming a powerful entrepreneur. In other words, once you learn how to be a great founder, you’ll encounter next challenge – how to be a great executive.
# 5 Don’t hold on to stereotypes
There are no proven rules when it’s best to start a business. No matter how old you are, how many universities you’ve graduated from or how many books you’ve read – do it now and here. Your skills that you have , your set of beliefs and ideas at this very moment are what can make you a “wanted” founder right now, not after few years. Bear in mind, that procrastination is your enemy in every aspect of your business.
# 6 Get loose from obligations
Your marital status, bank loans, part-time jobs and even previous unfinished projects – are things that hold you back from getting funded by investors or startup accelerators. And hey, don’t take it personally, there’s just no place for unnecessary problems in investors’ world. What they need is full focus on your startup, hard work and overtime you are going to devote.
Founders at their nature – do they exist?
There is no one exceptionally true way to measure “how founder” you are. Ben Yoskivitz points out a great observation in his article about Founders DNA. He says “it’s fair to say that investors of all kinds (angels, venture, seed accelerators, etc.) use their own “guts” to get “a rough feeling” of entrepreneurs and use that as a significant barometer for determining their own interest”. That’s a human nature to make decisions based on the first impression and sixth sense.
Speaking of human nature, another expert in the field, Founder Institute takes a different approach to measure founders’ eligibility by analyzing Predictive Admissions test’s results. According to them, entrepreneurship is destined by personality traits mainly. There is no need to have a company or even a business idea to prove it. The interesting infographic reveals that a great entrepreneur is defined by his professional experience, high fluid intelligence, high openness and moderate agreeableness. And, likewise, the bad founder’s qualities are excuse-making, emotional instability, predatory aggressiveness, deceit and narcissism. With that said, if you have a wrong personality, there’s nothing left as to just deal with it.
It takes many things to unlock success in starting a business – character traits, such as willingness to learn, surpassing expectations, passion for growing; and business acumen. Investors will choose to rely on you because of your business sense, creative thinking, fearless decision making and credibility. You have to be able to walk in the dark and figure out when you’re on the right track. You must feel comfortable in chaos and uncertainty and maintain the fine line between panic and ambition to go further. If you possess all of these features, you’re probably ready to start knocking on investors’ doors.