Each process needs different mindset (Can be determined by Thinking Style Test)
1) Explorer
2) Detective
3) Artist
4) Engineer
5) Judge
6) Producer
Disruption Cycle
o Remarkable innovation through a technological innovation create a new industry / emergency
industry. (i.e. Apps industry, Online bookstore, Mobile health).
o This emerging industry creates opportunity space for entrepreneur to come = Pioneers.
o
o
o
o
o
o
o
o
Growth Period
o Company that are successful to generate growth and recognition in the emerging industry are
called Fast Follower Innovation
o There are usually emerged later after pioneers
o Some of them get a good trade sale. The later you enter the industry cycle the higher the
trader sale.
o Fast followers innovator doesnt look for tech-savvy. They look for customers oriented
product, focused on designs
o Fast followers try to make best product = involve design thinking
o Fast followers is taking existing product to market
Consolidation
o When market is consolidate and number of prominent players/leader exists
o Firms require to be incremental innovate to spur growth
o Competition is fierce
Firm Take-Off
o Change in firm is huge
o Change in Sales
Sales Take-off
o Sales increase
o Change in Sales
ii.
o Utilized the lesson learned to develop a new business plan and further scale-up
o Market at this point need to be wider
o To focus on Volume sales instead of a customized product
Fourth is to Relink
o Establish the link again to stimulate growth
Session 5: Protection
i.
Type of Protection
-
ii.
Copyright
Trademarks
Design Rights
Patent
Secret
Breeding rights: Exclusive rights granted to a breeder of a new plant
Chips
Copyrights
- What copyrights protect?
o Protects original literary, dramatic and artistic etc.
o Copyrights protects copying and adaption
o Does not protect concepts or ideas. Need to be expressed
-
Application?
o Software, photographs, manuals, sound recordings, artwork, labeling, promotion etc.
Material Right
o Material Right is transferable
o The original creator of the work holds the material right
o The creators holds right to reproduce, disclose, change, translate, sell or rent
o
-
iii.
v.
Moral Right
o Moral right: Provided creators under copyright law to protection creators reputation and
integrity of their work
o Protect creators work for being used in a derogatory way or harmful ways that can damage
creators reputation and integrity
o Not transferable: Creator retains moral rights
Trademarks
- What Registered Trademarks protects?
o Protect Brand or Sign that capable to distinguish goods/services from one undertakings to
another
o Trademarks protect House mark, Product mark, Quality mark, Shape of products, Soundbased trademarks
o Brand or sign has to be distinctive. Must not conflict or create confusion with existing
brand/sign
o Geographically bound. Need to be registered in different countries/region
-
iv.
Contractual transfer rights: Assignment of copyrights can include the limitation and other
conditions
Design Rights
- What is Design Right?
o Protect appearance of product (shape, colour, texture)
o Design must be novel, new and of individual character
o Give right to monopoly certain design
-
Patent
- What is Patent?
o Patents protects a person/company that invents something new
o Patents protects effect of product or process, but not image, appearance and expression
o Patents give a limited-time monopoly right (20 years after granted Patent)
-
o
o
o
vi.
Cost of Patent
o First 12 months = $5,000 + Next 18 months $5,000 + At 30 months $10,000
o Total Lifetime = $100,000
EU Patent vs US Patent
o EU Patent protects First to File
o US Patent protects First to Intent
Secrets
- What is Secret?
o Protect idea by not revealing the idea/process/information
-
vii.
Other Protection
a. Intellectual Property
b. Secrecy
c. Complexity and Tacit Knowledge
d. Speed
viii.
ii.
ii.
iii.
Quadrant Explained
a. Top Left (Le Pain Quotidien) : Look for niche market, Passion is main driver
b. Top Right (Woowoos): Need a reliable partner. Growth is realized after partnership
c. Bottom Left (Garmin): Greenfield competition with possibilities to choose markets
d. Bottom Right (Cropdesign): Hightech companies that is capital intensive
Session 8: Market
- Market Segmentation: Users have different profile, characteristics, behavior
- Goal is to find niche market!
- Top-down (Desktop Research) market size estimation:
o Try to collect as much as possible information
o Relies on secondary information: Market research, Google, Questionnaires, Surveys
- Bottom Up (Market Research)
o Look for preferred witnesses. Talk to these people
o Witness can be Economic Buyer, Technical Buyer, User Buyer
Session 9: Pitch
b. Business Angels
Wealthy Private Inventors
Some of them are experienced entrepreneurs
Invest in industry/sector that they understand
Want to involve in the business (hands-on approach)
Once they invest, they consider themselves as part of the entrepreneur team
Use connection and networks to spot opportunities
There are 18K angels in UK, and 200K in US
Only invest if there is a match between angels and entrepreneur
Range of investment can be between $10-$250k (In the US, the sum is bigger)
Financial Target: 30 35% return
Invest in early stage/pre-seed stage (earlier than VC)
Super angels:
o A higher sum of money compares to typical business angles
o Only invest if they can become CEO/Executive team member
o They are very familiar with the industry sector
o Organized in forums
c. Accelerators
Goal is to help startup to roughly 2-years of business building in just few months
Provide support with intensive monitoring (mentoring) and programmed events (with timeframe)
Provide pre-seed finance in exchange of small equity
Some of accelerators are from Corporate/Firms. Some are independent
Focus the team success instead of individual
Stiff competition to get into accelerator program
d. Incubators
Provide a work-area for start-ups; and provide other facilities and resources
Provide networking and connections; Co-working with other startups in incubators
No specified schedule (month to month lease term for incubator place)
Each incubator usually focuses on its own sector/industry
In exchange of equity
f.
-
Strategic Partner:
Cooperation at R&D
Can take part providing capital
Examples: BP AI, Bosch VC, Cisco Investment
g. Subsidies
Rely on subsidies from government programs
7 types of measures substitution
o Government Co-investment
o Loan and Loan guarantees
o Refinancing facilities
o Provide risk sharing facilities
o Facilities on fiscal
ii.
iii.
What are the solutions for these concerns? Termsheet (on cornerstones for SHA)
a. Is the price correct?
- Phase Investment / Installment: Money is given by installment (not lump sum)
- Milestone / Ratchet Clause: Money is given by milestone achievement
- Exit Preference: Investors to receive payment in preference to the other shareholders
- Anti-dilution protection: Protect against new shares issued at a lower price
- Preferential Subscription Rights: Investor get the access to subscribe new shares
- Right of First Refusal: Investor get the FOR to decide whether to buy/not buy shares
Warrant Coverage: A right to obtain share at a certain price at certain time (call and put option)
b.
-
ii.
Other definition: Process of seeking to optimize satisfaction and company profitability through
creative use of design elements (performance, quality, durability, appearance) in connection with
products, environments, information and corporate identities
iii.
iv.
v.
Rule of thumb
- Nice object is not great product
- Single good product is not good design
- Good design = Good Business
vi.
vii.
viii.
ix.