Archives for category: Startups

Australia has the most innovative entrepreneurs in the world, but they often migrate to Silicon Valley to bring their ideas to life. Entrepreneurs are the secret to Australia’s future success. But, students often leave university without the skills or contacts to start their own business. In addition, many students are encouraged to pursue traditional careers and do not have the skills or courage to pursue their dreams.

New South Innovations (NSi) at the University of New South Wales have aligned with Australian start-up luminary Bart Jellema’s to create the UNSW Startup Games, to support students in bringing their idea to life.

Bart Jellema, a pivotal figure in the Australian start-up scene, rose to fame in 2011 when his startup, tjoos.com was purchased by Internet Brands. Since that time his personal mission has been to nurture the Australian tech startup community.

In this program selected students learn from experienced entrepreneurs how to brain storm, build prototypes, network, form teams and much more.

Some of the companies that have emerged since starting this program include: StartupGenie, a system for help startups find resources to do it right; Ezybaba, a database of reliable factories in China with profiles of the owners, licensing, and system of trust; Pegasus, an advanced helmet with inbuilt communication system and head-up display; and Pokomote, an advanced smart pet feeding system that allows owners to check on their pets and feed them via internet video.

This Saturday 25th May, 2013, the remaining teams will be pitching their ideas to a panel of investors that they had to organise, friends, fellow students, and members of the Sydney startup scene. Entry is open and it is free to attend. We encourage those interested to come and support their entrepreneurial students.

As part of the UNSW Startup Games, facilitated by Bart Jellema who is the co-founder of Australian startup zeromail, we were randomly assigned to teams and supported to create a new startup. Bart observed the teams over a few weeks and devised exercises and drills for team members to build their skills and potentially build a viable start-up that could be pitched to investors. According to Bart Jellema, what he looks for in budding entrepreneurs is the ability to show up, be on time and do the work. He also has a special affinity for technical people who have a sense for hacking a solution with limited sources and under conditions of extreme uncertainty.

So far the program has been a profoundly enjoyable learning experience. We have been pushed outside our comfort zone and given tasks that require us to showcase the kind of skills and capabilities that are form part of the DNA of an entrepreneur.

The question is, can an entrepreneur be made or are they born that way?

As a participant of the UNSW Startup Games and psychology student, I’m (Scott Coleman) a strong believer that people can model exceptional people and given dedicated practice anyone can learn the patterns of behaviour that make up an entrepreneur. However, there are certain patterns that set exceptional entrepreneurs apart from the average performers in the same niche. While I acknowledge that people can model the skills of exceptional people. When making a decision to select my own co-founder, you must set the standard very high.  It is an uncertain world out there so I personally am looking for an exceptional co-founder who is better than anyone else in their niche. They must demonstrate that they can model the best of the best. They must also have a strong technical skill and be able to perform in novel situations.

Investors like other are subject to cognitive bias and often have to make decisions with limited information. Experienced entrepreneurs and investors often through around the idea that ideas change but people don’t.

I’m most interested, like many investors and venture capitalists, in identifying brilliant technical people with great ideas and ability to make things happen with limited resources and under conditions of uncertainty. Time has shown that these people are most like to succeed in web startups. They are able to operate with little money and can get things done. They are interested in what works. They can outperform their peers, are decisive and can identify solutions that others cannot see. This insight normally comes from experience and technical expertise.

It is also very important that tech co-founders are a great at networking. This is something that Bart has encouraged the UNSW Startup Games participants to engage in from the start. He invited the class to Silicon Beach Drinks each Thursday night and even took a few lucky participants to a StartMate function. Successful entrepreneurs can inspire people to jump on board on an idea, even purchase products that are not yet complete.

Any team must be grounded and have an deep understanding and passion for the problem that is being solved. It is vital that you can step into the shoes of the people that this startup is solving. Australian Venture capitalist firm Black Bird list three characteristics they are looking for in the teams they found: 1. “domain expert who’s stumbled across a better way of doing something you’ve been doing for years” 2.  “a technical founder who’s experimented with a product and learned how to do something new” or 3. someone with a “a unique understanding of a particular demographic.” Vitally the co-founder must be able to describe why we will outperform 99% of people in the domain.

For me, and this is shared by newly create Australian Venture Capital fund Blackbird ventures, technical founders must have an affinity for hacking – that is to operate with little money and higher level of uncertainty. This point has been reiterated constantly by Bart Jellema throughout the Startup Games. Bart strongly rewarded participants who could produce prototypes and wireframes. He wanted to see how teams could perform when given tasks with little or no preparation too. He constantly set tasks which simulated a high level of uncertainty.

Lean startup methodology

Co-founders must adopt the principles of lean start-up. This is essential to limit waste, test assumptions about the business. The lean start-up methodology ensure that a business is built in a way that is repeatable and scalable. Founders must be responsive to feedback.

An important part of the lean startup methodology is to identify and test the assumptions in the business model. The lean canvas is a great way to do this. A guiding light is found in Dave McClure’s post about metrics he uses for 500 startups.

Optimum size of team and passion

How many people should be in my team? Studies of successful start-ups show that teams of two are most likely to succeed. Single founders are also successful. Above all there must be a chemistry between the founder, co-founders and the investors. Above all the co-founders must be extremely passionate about the solving this problem as well as be responsive to feedback.