Headstart startup event 20190608 at iiit hyderabad

Copyright © K Consulting All Rights Reserved.
Kazuaki ODA(織田一彰)
"Market Size Estimation and Fundraising“
-Why some get big, why some NOT?-
Nagoya University Professor
Slogan Inc. Co-Founder
K Consulting CEO
HS-X 2019 Entrepreneurship Conclave, 8th June @Hyderabad

#Profesor #Consultant #Investor #Startups #Mathematics
#Serial Entrepreneur #Tennis #Athlete
SLOGAN Inc. (Co-Founder&Executive Fellow)
K Consulting Co., Ltd (CEO)
Nagoya University (Visiting Professor )
-Macro Economics, Social Science, Strategy/Management
Institut Teknologi Bandung (Guest Lecturer)
Kazuaki ODA (“Kazu”)
<Academic and Business Background>
Nagoya University Doctral Course(Mathematics) [1990-1993]
Andersen Consulting(ACCENTURE) [1993-1997]
Internet Ad Agency (Mailnews Corporation) [1997-2003]
COO&CFO =>Bought and merged by Dentsu(*) group
Internet Ad Agency (Cybercommunications Inc.) [2003-2005]
CSO(Strategy) & CTO(Technology) of Dentsu Group
2 Mobile service companies [2005-2006] =>Bought by public company

<Lecture Series in Universities (ex)>
(1)Overview and outlook of worldwide societies/economies
and how to select excellent companies.
(2)How to create and value up successful personal careers
and skills in this unpredictable future.
(3)The secrets of problem solving method and
logical thinking in global management consulting firms.
(4)Effective communication and presentation skills
(5)How to create new business structures and organizations.

My Dream was ...

My Dream2 was ...

Lectures in ITB (2012)
DAY1 Personal Business Career in Uncertain Age
DAY2 Business Development Process
(Case study of Internet Business)

学生向けセミナーLectures and Seminars in the world(1/2) SLOGAN
Potential Incubation
Tokyo University
Kyoto UniversityBeijing University
University of Indonesia
Shanghai Jiao Tong
university
National University of
Singapore
Institut Teknologi Bandung
Binus University
Tokyo Institute of
Technology

学生向けセミナーLectures and Seminars in the world(2/2) SLOGAN
Potential Incubation
Kyushu University
Tsinghua University
University of Hong KongKeio University Universiti Malaya
Chinese University of Hong Kong Stanford University
Ritsumeikan Asia Pacific
Univ.Nagoya University

<Objectives of this workshop>
-Understand basic knowledge of finance
(Debt/Equity Finance)
-Learn how to estimate market size
(Macro/Micro Approach)
-Learn how to get invested and collaborate
with foreigners(especially Japanese)

Statement:
The odds of winning a lottery is 10%

(Question)
You draw the lotteries 10 times.
Then what is the probability
that you win at least once till the end?
(1) 25%
(2) 45%
(3) 65%
(4) 85%

(1) 25%
(2) 45%
(3) 65%
(4) 85%
(Question)
You draw the lotteries 10 times.
Then what is the probability
that you win at least once till the end?

Mathematics tells us…
0
20
40
60
80
100
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Probability(%) of winning in
1/10 lottery with N times trial
Trial(N) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Probability(%) 10 19 27 34 41 47 52 57 61 65 69 72 75 77 79 81 83 85 86 88

Time
Cash Position
“Cash Flow Management” is important!
＜Key!(重要)＞
* Burn Rate(現金の減る速度)
Fundraising

Time
Cash Position
Typical “Cash Position” of Growing Company
Series A
Series B
Series C
Fundraising

Only one KPI to survive is
“CASH POSITION”
(現預金残高)
≠Current Floating Asset(流動資産)

Company Growth Curve
Company
Value
Time
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）

Where Is It in Company Growth Curve?
Company
Value
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Potential Size
Present Size
Present Stage Matured Point

Where Is It in Company Growth Curve?
Company
Value
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Potential Size
Present Size
Present Stage Matured Point
<=Market Size * Company’s Share

Time
Company
Value
$50M
$10M
$1B
$300M
Series A
Series C、D、、
IPO (Initial Public Offering )
Secondary Public Offering
Series B
Fund Raising ( by Issuing Stocks)
Pre IPO Growth Post IPO Growth

Time
$50M
$10M
$1B
$300M
Series A
Series C、D、、
IPO (Initial Public Offering )
Secondary Public Offerin
Series B
Fund Raising ( by Issuing Stocks)
IRR(Internal Rate of Return, 内部収益率)
Company
Value

<=Market Size * Company’s Share
Potential (Company) Size

What is your TARGET market?

・Can You See the Market?
－Size Is Big Enough?
－Know How to Win?
－Qualified to Be A Winner?
・You Have A Good Team?
* Impossible to Have All Functions in YOU
Points!

・Can You See the Market?
－Size Is Big Enough?
－Know How to Win?
－Qualified to Be A Winner?
・You Have A Good Team?
* Impossible to Have All Functions in YOU
Important Points of STRATEGY

＜Work1＞
How Many McDonald's Are in India?
And How Much Is the Annual Revenue?

＜Work2＞
How Many “CHAI POINT’s” Are in India now?
And How Many “CHAI POINT’s” and
Its Revenue in 2030?

The FACT is
ONLY Some Startups Can Succeed

Why do so many startups fail?

Copyright © K Consulting All Rights Reserved.36
Why do so many startups fail?
Basically failures are more often than successes.
CEO’s are beginners with no experiences.
They do know how to do that.
NO money, NO names, NO members, NO credit,,,

Why did they succeed?

What Factors Are Important to Succeed?
Strategic ???, Innovative???,
Technology???, Good Team???
Culture/Values???, Leadership???
Marketing???, Salesforce???
????????????????????????????

They were lucky!
Why did they succeed?

What made them "LUCKY”?

What make them LUCKY?
Their positions were
in good PLACE in good TIME.

Business Development Process

Company’s Business Life Cycle
Company
Value
Time
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）

What the Market Growth Curve means?
Market
Scale
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Scale

What happens during Phase Ⅰ?
Market
Scale
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Scale

・Process of creating ”０ to １”
・Can’t figure out what would happen
・Believe your future to survive
・Based on creativity
・Some criticism from your family and friends
・Creating new service or product.
・HARD work during this phase!
Features of Phase Ⅰ

What happens during Phase Ⅱ?
Market
Scale
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Scale

・Process of developing “１ to 10”
・Demand ＞ Supply（certain price）
・You can figure out your company’s future
・Others start to realize the attractive market
・In the hard competition for share
・Being well organized and systemized is the key to grow
・Speed and marketing are the keys of success
Features of PhaseⅡ

What happens during Phase Ⅲ?
Market
Scale
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Scale

・Process of developing “１０ to 100”
・Demand＝Supply（equilibrium price ）
・Attractiveness of the market is apparent
・Hard competition with competitors for price and quality
・Being well organized is getting more important
・Profit rate is decreasing
・Some companies go bankrupt
Features of PhaseⅢ

What happens during Phase Ⅳ?
Market
Scale
（Ⅰ）（Ⅱ）（Ⅲ）（Ⅳ）
Time
Scale

・Process of declining from 100 to 80
・Matured market
・Supply ＞＞ Demand（Price decreasing）
・Peak for M&A（magical number “3”)
・Profit rate is the lowest
Features of PhaseⅣ

Another Some Defining Factors
which are sometimes forgotten are,,,
-Team Members(SOME Key Persons)
-Marketing Strategy
-Cashflow Projection Planning

नमस्ते !!

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Capsheet Download HERE!
(Simulation Spreadsheet)

Headstart startup event 20190608 at iiit hyderabad

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