Lecture Note__New Venture Startup_MBA_Alto_04-4 Design & Creativity

new breed ofentrepreneurs who will become the norm, ratherthan the exception, in the business world as itbecomes obvious that major quality of life issues,such as global climate change and third-world pov-erty,cannotbesolvedwithoutsignificantinput,andperhaps leadership, from business. This study of 30leading-edge entrepreneurial companies uncov-ered 10 commonalities that differentiate themfrom conventional business ventures. We hopethese commonalities and the analysis that wentinto them will not only add to the growing bodyof knowledge about entrepreneurs, but also serveas pragm

startupSimplified Presentation of Income StatementOperatingProfit3-Year ProjectionsBusiness Operating Pro-Forma and Cash Flow Current Year Year 1 Year 2 Year 3Revenue $0 $0COGS (for product firms) $0 $0COS (for service firms) $0 $0Gross Profit (Loss) $0 $0 $0 $0Marketing & Sales $0 $0G&A $0 $0Operating Income $0 $0Depreciation $0 $0Amortization $0 $0Interest Expense $0 $0Other ExpenseIncome TaxNET PROFIT (LOSS) $0 $0 $0 $0See if you can fill it out? Make some adjustments. Be approximate.Note: If you are going to get a loan or investment, you will need to assume that you ar

Design ApproachAnalysisIdeationQuantitative DataAnalyze constraintsDeductive & inductive analysis“Proof”Market Research (superficial)Limited tools and experienceProcess encourages coming to agreementquicklyQuantitative and QualitativeAnalyze and challenges constraintsBalance between Analysis and Creativity and“abductive”“Logical leap of mind”Committed to understanding the user experienceMany tools and experienced in ideation exercises.Encourages diversity of thought and open to tensionNew Venture Development Processes (1)Conventional Approach Design ApproachSt

Venture Life CycleWho are the Best Investors for Your Business?If your business is A new restaurant concept and you have no experience with restaurants? A Baskin Robbins franchise store? An early stage research company in a biotech nanotechnology? Series B-Round investment after raising $4M in Series A round? A microbrewery and you need money for your second location? A corporate venture in a new market segment? A new app venture with design and architecture completed and code being written?True or False ?• In a capitalist economy like the US with so many

Venture 1 Jan-78 $518 $634 5,520 32,378 16.9% $3,063 $0.06Founders Jul-78 $426 $1.080 4,736 37,378 12.7% $3.362 $0.06Venture 2 Sep-78 $704 $1,764 2,503 39,970 6.3% $11,218 $0.28Venture 3 Dec-80 $2,331 $4.095 2,400 43,306 5.5% $46,061 $0.97IPO Dec-80 $101,200 $105,295 4,600 54,215 8.5% $1,192,730 $22.00Note: At IPO, VCs owned about $200M worth of equity with a total of $3.5M investmentNot 100% sure this is really AppleCap Table Example (w/Employee Options):ONSET investment into TallyUpFounder Round Seed $750K Additional $250K OptionsShares %OwnedShares % Owned Shares % Owned Shares