Edmund Sun
5/11/13
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Define High Tech Venture and why it is attractive
Driving force behind the high tech industry
Qualification required for high tech start up
2013 opportunities and 2013/14 technology trends
Entrepreneur quality
Start up motto
Start up common mistake
Business model, business plan and operation plan
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Knowledge advancement in Science and Technology
Usually involve know how and Intellectual property
right
Average Return on investment(ROI) is over 100x
versus convention business
Probability of success is about 10X of convention
ones
. Moore’s Law enable computing resources double every
two years without cost and power increase, This
allows ever smarter machine with intelligence
approaching human
. Fiber optical and wireless communication capacity and
throughput near double every two years as well
. Rapid rise of internet of things ( smartphone is only
one example) and internet infrastructure.
. New material for machine and fabric
. New process for energy , chemical and medical
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**An abrupt transition for business create opportunities for
new start-up
Discrete transistor to Integrated Circuits (TTL Family)– 196070
Advent of microprocessor -- 1970- 1980
Advent of the fabless semiconductor design – 1980-90
The beginning of Digital Video 1990-2000
The Dawn of the Internet WWW 1990-2000
The broadband network expansion thru the use of Fiber
1980-2010
The beginning of Web. 2.o and the Mobile internet 2000-2010
Ever faster network allow distributed cloud structure 2010+
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Identify un-met demand on current
market or new market with high growth
potential
Expert team in solving identified problem
Enough barrier of entry (expertise, finance
etc)
Founder ‘s personal quality
Detail analysis on market, and
management team skill analysis
Finance to match detail conservative BP
and operation cash flow analysis
Market trend
Team Expertise
Location
Maturity of infrastructure
Competition landscape
Patentable idea or not
Future growth potential
Cloud Infrastructure SaaS & Security
 Web Services, APIs and the Internet of
Things
 3D Printing
 Equity Crowd Funding
 Ubiquitous Mobile Payment Solution
 Quantified Self: Healthcare ,Fitness and
Wellness tracking
 Big Data
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New Image Compression standard
application in media storage and
communication, entertainment, and
security
New material ( Graphene ) application
Applications using object analysis,
recognition and search in picture and video
Biomedical instrumentation using new
scientific technique
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Mobile device battles
Mobile applications and HTML5
The personal cloud
The Internet of Things
Hybrid IT and cloud computing
Strategic big data
Actionable analytics
Mainstream in-memory computing (IMC)
Integrated ecosystems
Enterprise app stores
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Mobile Device Diversity and Management
Mobile Apps and Applications
The Internet of Everything
Hybrid Cloud and IT as a Service Broker
Cloud/Client Architecture
The Era of Personal Cloud
Software Defined Anything
Web-Scale IT
Smart Machine
3-D Printing
Degree of uniqueness, barrier of
entry and degree of difficulties
 Value to customer
 Foresight features
 SWOT analysis (not as important)
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Everything is uncertain (R&D, Market,
Production, Quality, Distribution, Return)
Uncertainty in technology innovation and
change
Uncertainty in Political and economic
condition change
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• High energy
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• Risk taking propensity
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• Tolerance of ambiguity
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• Decision making ability
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• Salesmanship skills and thick skin
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• Negotiation skills
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• High need for achievement
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. Charismatic to attract corporate partner ,VC and employee
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Skill
Passion
Dedication
Perseverance
Willing to listen
Willing to change direction when needed
Timing and luck
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Anti-authority
Invulnerability
Macho
Outlandish projection
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Have Goals
Challenge yourself
Prepare well then JUST DO IT
Think Yes not No
Have Fun
Make a difference
Stand on your feet
Loyal to your goal
Be fair to all your dealings
Strived for success, whatever it takes
It pays to be honest
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Single founder
Bad location
Marginal niche
Derivative idea
Obstinacy and refractory
Hire bad people
Choosing the wrong platform
Slowness in launching
Launching too early or too immature
Having no specific user in mind
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Raising too little money
Spending too much too fast
Raising too much money
Poor investor management
Sacrificing user for profit
Not wanting to get your hand dirty
Fight among founders
A half hearted effort
Outlandish projection
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Develop, produce, distribute with value pricing or
market driven pricing
Develop, produce, distribute main product with no
profit, but sell consumable item at high margin
Utility model with monthly fee, product may be free
Advertising sponsorship model
Virtual goods sale model
Service charge model per transaction based
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The basic idea for the new product of service
Why this new product or service is useful and
appealing
To whom it is useful and appealing and how to
reach them
How the new idea will be realized
Who are the competitors
How much money is needed to develop it , how
long does it take and how it will be used
What type of financing is needed
How return on the investment will be realized
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Introduction, Background and Purpose
Marketing, who want to use or buy it and why, plan for viral marketing
Competition, who and how to overcome
Development, production and location, how and when to provide the product
or service, and where
Management, experience, skill and knowledge of the management team
Financial, current status, projection for future cash needs and revenue,
amount of funding sought when the funds requirement , how they will be
used, cash flow and break and even analysis
Risk factors, potential risk and how to protect against them
Exit, demonstrate how investors will gain if the company is successful and
when and how the company might go public or be sold or get investment
back by the dividend
Schedule and Milestone, when each phase to be completed
Appendices, detail financial information and detail resumes of top
management team
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Start-up opportunities are more than ever triggered by
the continuous expansion of internet , mobile internet,
Moore’s law (computation speed increase with lower
power) and new material and biomedical progress.
However, more competition is increased across the
board due to the continuous improvement of education
and population increase. Uniqueness of the product
with high value become more important then the cost
reduction. Personal quality and team quality are very
important to the success equation.
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Your own money—the best (if you can afford to lose it)
Grants or loans---from government or institute
Revenue—Payment advance, or Contract from
customers
Mentor
Friend of the Mentor
Bank lending
Strategic Option—Customer as investors
Angels—Business angels versus fallen angels
Venture Capital
Family or friends money---not good if you can avoid
Crowd funding
Verhulst
Equation
dP/dt=rP(1-P/K) r:growth rate
K:Carrying Capacity
P(t)=K*P(0)exp (rt)/(K+P(0)*(exp(rt)-1))
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IC GM:55%, R&D 15%, M&S 15%, G&A 5%,
NM:20%
System GM:50%, R&D 10%, M&S 18%, G&A 7%
NM:15%, in Asia, GM: 20% or lower, R&D 2-5%. M&S
2-5%, G&A 1-2%
Manufacturing GM:8%, R&D1%, M&S 2%,G&A 1.5%,
NM:3.5%
Software and Internet services GM:85%, R&D 25%,
M&S 25% , G&A 8%, NM:27%