Entrepreneurship Startups don’t starve. They drown. A Lean Startup Perspective on Scaling Teams for IPO Published 6 months ago on November 3, 2017 By Marion Neubronner Share Tweet I am reporting at Lean Startup Week in San Francisco. In this session on scaling, JP Mangalindan (Yahoo Finance) posed Jeff Jordon (Andreessen Horowitz and Eric Ries (Lean Startup Co, LTSE) questions to cull from their extensive experience key takeaways for scaling fast and effectively. Is it true that there should always be more than just one founder? There is no hard and fast rule, however, the general norm has been that 2-5 founders range has and can be been successful and any more, less so. However, the need for one founder to be in charge is clear and so many have supported the unequal equity split, to make the final call clear. So 51% trumps 49% when push comes to shove. As for the founding team, complementary strengths are always crucial. However here, a fine balance between enough diversity of thought and not too much diversity so much so it causes too much conflict. A pattern in multi-founders companies is that one founder usually separates early from the company. So founder vesting where each founder gets his or her full package of stocks at once to avoid getting taxed for capital gains; but, the company has the right to purchase a percentage of the founder’s equity in case he or she walks away. What in your experience are the traits of successful entrepreneurs? Jeff jumped in first with “The ones with unyielding courageous persistence and power through. They are story-tellers or great salespeople. They have a vision and a clear North Star.” Eric added quickly, “Remember the attributes that bring you to being a strong entrepreneur also makes it the same person unable to be successful. A great trait is that the entrepreneur is known to ignore certain facts. Which is fantastic as a perseverance exercise but not great in the long term management of a team. They are also charismatic and that too can be a double edged sword. So the same person has to do be a balance of both extremes. A rare skill. The successful entrepreneurs who know how to look for employees who are also founders has the greatest success. Always set a high bar for talent at the start. Remember the true story is that the early employees work harder and for less rewards than the founders. In fact that is how the mafia of the startups continues as each early team members of unicorns go on to build their own empires. Meritocracy means good ideas come from anywhere and good ideas come from anywhere an in organization. Find the empolyees who are more missionary than mercenary. They believe in what company is doing not just in it for the money. Remind all new members joining a startup is statistically proven not the way to get rich. What are the classic hiring mistakes you have seen? Too much hiring for domain expertise vs startup skill and the new employees come from a big company and they are not domain smart – they are more strategic. They have people who work for them and are verses in organizational politics Also watch for great people entering the startup the at wrong stage. Too many hire a CFO before they need one. Hire my friends can be a very common and costly mistake. What else kills rapid growth? Startups don’t starve. They drown. When the startup is tackling everything and they can’t pick what they are good at. Then they are lost. To do Lean Startup is to focus. All research points to the fact that people not good at multi tasking. Technology may move fast and we humans are not good at learning so fast. Know which problem you are trying to address Not only are many startups not focused, they are not focused on right thing Look at the desert stories of Pinterest and Airbnb. Jeff was reminded of how he knew he was scaling when he literally had a line outside his door till 6pm and he would have to answer all those questions which ranged from anything to everything. When you can’t make the decisions then you become a coach to the team rather than the decision maker. When you grow bigger then you are the GM and coach people who manage the teams. Basically your role is to build, motivate and leverage. Eric posed a question that should be on every rapid entrepreneurs’ mind. “How do you manage the psychology that you are an entrepreneur and now you have entrepreneurs working for you?” These standards of being an entrepreneur many have to do and learn. So many startup leaders graduate successfully from the Y Combinator and forget that have you created a Y Combinator for your employees? Your mindset moves from entrepreneur to now the investor and you have to recreate internationally in each team member what you took for granted. Jeff looked back in self reflection and admitted that he grew ebay without much culture and in their 5th year looked back and went “Eeeek! I should have put in culture.” Citing Alfred Lin from Y Combinator the power of culture can fix all problems, so spend a lot of time on culture. Eric chimed in that the shared consciousness is a mindset as well as key metrics CEO should pay attention as scale. This consistent set of metrics act like a North Star. Related Topics:CEOcommondiversityEntrepreneurentrepreneursequityfinanceFocusFoundersgrowthinvestorleadersmistakespaystartupstartupsStorysuccesstechnologyyahoo Continue Reading You may like Will Financial Liberalisation Trigger a Crisis in China? Georges Tchokoua Women on Top in Tech – Chrissa McFarlane, Founder and CEO of Patientory Why Angel Investors are Shaking Up the Global Startup Scene Emmanuelle Norchet Myths & Facts about Entrepreneurship Entrepreneurship Will Financial Liberalisation Trigger a Crisis in China? Published 7 hours ago on April 25, 2018 By The Asian Entrepreneur Authors & Contributors The People’s Republic of China (PRC) has been liberalizing its financial system for nearly 4 decades. While it now has a comprehensive financial system with a large number of financial institutions and large financial assets, its financial policies are still highly repressive. These repressive financial policies are now a major hindrance to the PRC’s economic growth. The PRC is at the beginning of a new wave of financial liberalization that is necessary for supporting the country’s strong economic growth. The country’s leaders have already unveiled a comprehensive program of financial reform, which includes 11 specific reform measures in three broad areas: creating a level-playing field (such as allowing private banks and developing inclusive finance), freeing the market mechanism (such as reforming interest rate and exchange rate regimes and achieving capital account convertibility), and improving regulation. But could financial liberalization lead to a major financial crisis in the PRC? What would be the consequences for financial stability as the PRC moves to further liberalize its financial system? If the PRC repeats the painful experiences of Mexico, Indonesia, and Thailand, then it might not be able to achieve its original goal of overcoming the middle-income trap. International experiences of financial liberalization, especially those of middle-income economies, should offer important lessons for the PRC. In our new research, based on cross-country data analysis, we find that financial liberalization, in general, reduces, not increases, financial instability. This powerful conclusion is valid whether financial instability is measured by crisis occurrence or by fragility indicators, such as impaired loans and net charge-offs. The only exception is that financial liberalization does not appear to significantly lower the probability of systemic banking crises, although it does lower the risk indicators for banks. These results have higher statistical significance and are greater in magnitude for the middle-income group than for the entire sample. The insignificant impact on banking crises, however, should be interpreted with caution. One of the possible explanations is that under the repressed financial regime, the government supports banks with an implicit or explicit blanket guarantee. This reduces the probability of an explicit banking crisis, although the banking risks may be even greater because of the moral hazard problem. In fact, government protection of banks could also increase the probability of a sovereign debt crisis or even a currency crisis before financial liberalization. If financial liberalization significantly reduces the likelihood of financial crises, especially in middle-income economies, then why did some middle-income economies experience financial crises following liberalization? We further investigate whether the pace of liberalization, the supervisory structure, and the institutional environment matter for outcomes of financial liberalization. We obtain three main findings. First, an excessively rapid pace of financial liberalization may increase financial risks. The net impact on financial instability depends on the relative importance of the “liberalization effect” and the “pace effect.” In essence, what the “pace effect” captures could simply be the prerequisite conditions and reform sequencing that are well discussed in the literature. Second, the quality of institutions, such as investor protection and law and order, also matter. International experiences indicate that investor protection can significantly reduce the probability of financial crises. Third, the central bank’s participation in financial regulation is helpful for reducing financial risks during financial liberalization. This is probably because central banks always play central roles in financial liberalization, especially in the liberalization of interest rates, exchange rates, and the capital account. If a central bank is responsible for financial regulation, its liberalization policies might be more cautious and prudent. Our research findings offer important policy implications for the PRC. (1) Further financial liberalization is necessary not only for sustaining strong economic growth but also for containing or reducing financial risks. (2) Gradual reform may still work better than the “big bang” approach, and sequencing is very important for avoiding the painful financial volatilities that many other middle-income countries have seen. (3) The government should also focus more on improving the quality of other institutions, especially market discipline, to contain financial risks. (4) It is better for the central bank to participate in financial regulation. The new regulatory system should focus exclusively on financial stability and shift from regulating institutions toward regulating functions. It should also become relatively independent to increase accountability. ________________________________________________________________ About the Author This submitted article was written by Qin Gou and Huang Yiping of Asia Pathways, the blog of The Asian Development Bank Institute was established in 1997 in Tokyo, Japan, to help build capacity, skills, and knowledge related to poverty reduction and other areas that support long-term growth and competitiveness in developing economies in the Asia-Pacific region. Continue Reading Entrepreneurship Women on Top in Tech – Chrissa McFarlane, Founder and CEO of Patientory Published 17 hours ago on April 24, 2018 By Marion Neubronner (Women on Top in Tech is a series about Women Founders, CEOs, and Leaders in technology. It aims to amplify and bring to the fore diversity in leadership in technology.) Chrissa McFarlane is the Founder and CEO of Patientory, a patient-centered enterprise solution on the blockchain to store, secure and access healthcare information in real-time. She is a leader and an entrepreneur with a passion for creating cutting-edge healthcare products that transform the face of healthcare delivery in the United States of America and abroad. What makes you do what you do? I am passionate about helping people, especially when it comes to their healthcare. This is my daily motivation for pushing forward in one of the most challenging industries to innovate. How did you rise in the industry you are in? Through my networks and maintaining a strong advisory board, I am able to make an impact. Why did you take on this role/start this startup especially since this is perhaps a stretch or challenge for you (or viewed as one since you are not the usual leadership demographics)? I took on the role and decided to start this startup primary to follow my passion and be an inspiration for other women who are seeking to start their own business. Do you have a mentor that you look up to in your industries or did you look for one or how did that work? I have multiple mentors. I met them through my networks. How did you make a match if you did, and how did you end up being mentored by him/her? Through introductions and after speaking with them I saw a character alignment that prompted me to ask them to by my mentor. Now as a leader how do you spot, develop, keep, grow and support your talent? Through one on one meetings, and team building. Do you consciously or unconsciously support diversity and why? I consciously support diversity because a diversity of thought breeds success in the workplace. It is important to have different lenses of thought to be represented. Our company is a representation of the people we serve. What is your take on what it takes to be a great leader in your industry and as a general rule of thumb? A great leader in healthcare is equipped to serve the people. Unlike many other industries, healthcare is centered around sustaining the health of the human being. You certainly need to encompass a passion for seeing individuals live and lead healthy lifestyles. Advice for others? In building emerging technology, education is always key to success. Our first Inaugural Blockchain Healthcare Summit will take place on May 31st in Atlanta, GA where we will discuss the current state of blockchain projects and opportunities for the future. If you’d like to get in touch with Chrissa McFarlane, please feel free to reach out to her on LinkedIn: https://www.linkedin.com/in/chrissamcfarlane/ To learn more about Patientory, please click here. Continue Reading Latest Popular Entrepreneurship7 hours ago Will Financial Liberalisation Trigger a Crisis in China? 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