WEBVTT 00:00:00.000 --> 00:00:00.500 align:middle line:90% 00:00:00.500 --> 00:00:01.958 align:middle line:90% [SQUEAKING] 00:00:01.958 --> 00:00:02.930 align:middle line:90% [RUSTLING] 00:00:02.930 --> 00:00:04.874 align:middle line:90% [CLICKING] 00:00:04.874 --> 00:00:10.706 align:middle line:90% 00:00:10.706 --> 00:00:14.240 align:middle line:84% JOE HADZIMA: We come to our final session-- 00:00:14.240 --> 00:00:17.040 align:middle line:84% the last part of the final session. 00:00:17.040 --> 00:00:20.620 align:middle line:84% Marina Hatsopoulos, who's going to be presenting next, 00:00:20.620 --> 00:00:23.120 align:middle line:84% turned to me and said, I've got some of the same things 00:00:23.120 --> 00:00:27.200 align:middle line:84% that Bob had on his slides, and I guess I could skip over them. 00:00:27.200 --> 00:00:29.980 align:middle line:84% And I turned to her, and I said, I should let the people know, 00:00:29.980 --> 00:00:35.240 align:middle line:84% we don't coordinate what the speakers say. 00:00:35.240 --> 00:00:37.880 align:middle line:84% And the fact is, you'll see common themes coming 00:00:37.880 --> 00:00:39.600 align:middle line:90% from a variety of people. 00:00:39.600 --> 00:00:41.880 align:middle line:84% And maybe that means there's something there 00:00:41.880 --> 00:00:44.000 align:middle line:84% that you ought to pay attention to. 00:00:44.000 --> 00:00:47.600 align:middle line:84% And in fact, it was only about 15 years into the course 00:00:47.600 --> 00:00:52.760 align:middle line:84% that we got all the presenters together for a dinner. 00:00:52.760 --> 00:00:54.460 align:middle line:84% And it was an interesting evening. 00:00:54.460 --> 00:00:56.860 align:middle line:84% And they started to share stories. 00:00:56.860 --> 00:00:59.120 align:middle line:84% And they were very consistent themes. 00:00:59.120 --> 00:01:05.000 align:middle line:84% So it's well orchestrated, but not scripted. 00:01:05.000 --> 00:01:08.000 align:middle line:84% So with that, Marina Hatsopoulos, 00:01:08.000 --> 00:01:11.372 align:middle line:84% who I first met in the 3D-printing world a number 00:01:11.372 --> 00:01:13.580 align:middle line:84% of years ago, and I think she'll tell you about that. 00:01:13.580 --> 00:01:15.420 align:middle line:90% So I'll turn it over to Marina. 00:01:15.420 --> 00:01:15.520 align:middle line:90% MARINA HATSOPOULOS: Great. 00:01:15.520 --> 00:01:15.630 align:middle line:90% JOE HADZIMA: Yeah. 00:01:15.630 --> 00:01:16.130 align:middle line:90% Thank you. 00:01:16.130 --> 00:01:18.280 align:middle line:90% MARINA HATSOPOULOS: Thank you. 00:01:18.280 --> 00:01:20.000 align:middle line:90% Hi, everyone. 00:01:20.000 --> 00:01:23.860 align:middle line:84% OK, so we're getting to the end of this, 00:01:23.860 --> 00:01:26.400 align:middle line:84% and I'm sure everyone's kind of tired. 00:01:26.400 --> 00:01:29.440 align:middle line:84% Anyone out there in Zoom land, if you 00:01:29.440 --> 00:01:32.880 align:middle line:84% want to open your cameras, we'd love to see you. 00:01:32.880 --> 00:01:36.260 align:middle line:84% For all of you, please-- this is much more interesting. 00:01:36.260 --> 00:01:38.540 align:middle line:84% If it's a dialogue, if it's engaging. 00:01:38.540 --> 00:01:44.260 align:middle line:84% So just raise your hand anytime, and I will start. 00:01:44.260 --> 00:01:47.480 align:middle line:84% So my dream was to do a tech startup. 00:01:47.480 --> 00:01:50.320 align:middle line:84% I studied math and music at Brown. 00:01:50.320 --> 00:01:52.360 align:middle line:90% Those were my two passions. 00:01:52.360 --> 00:01:53.460 align:middle line:90% But I still had this-- 00:01:53.460 --> 00:01:54.180 align:middle line:90% I had this idea. 00:01:54.180 --> 00:01:56.360 align:middle line:90% My dad was a tech entrepreneur. 00:01:56.360 --> 00:02:01.270 align:middle line:84% So I decided I would try business and see how it went. 00:02:01.270 --> 00:02:05.170 align:middle line:84% So I went to Chase and worked in banking for a few years. 00:02:05.170 --> 00:02:07.430 align:middle line:84% And that was actually a great experience. 00:02:07.430 --> 00:02:09.710 align:middle line:84% I learned how to analyze a business. 00:02:09.710 --> 00:02:12.730 align:middle line:90% I learned accounting. 00:02:12.730 --> 00:02:14.810 align:middle line:90% I learned negotiation. 00:02:14.810 --> 00:02:16.290 align:middle line:90% And I learned selling. 00:02:16.290 --> 00:02:21.930 align:middle line:84% And I actually think those three skills-- accounting, selling, 00:02:21.930 --> 00:02:24.490 align:middle line:84% and negotiating-- are three skills that 00:02:24.490 --> 00:02:29.030 align:middle line:84% are super useful if you pursue entrepreneurship, but, really, 00:02:29.030 --> 00:02:32.770 align:middle line:84% if you pursue any kind of a business career. 00:02:32.770 --> 00:02:37.390 align:middle line:84% At that point, I loved being in New York. 00:02:37.390 --> 00:02:39.410 align:middle line:84% It was a lot of fun, but I wanted 00:02:39.410 --> 00:02:43.690 align:middle line:84% to get closer to actually producing a real product. 00:02:43.690 --> 00:02:46.890 align:middle line:84% What does a real producing company do? 00:02:46.890 --> 00:02:49.130 align:middle line:84% So I went to work at Thermo Electron in Mergers 00:02:49.130 --> 00:02:50.430 align:middle line:90% and Acquisitions. 00:02:50.430 --> 00:02:54.770 align:middle line:84% And that was a rude awakening because Thermo-- 00:02:54.770 --> 00:02:57.050 align:middle line:90% it's now Thermo Fisher-- 00:02:57.050 --> 00:02:59.230 align:middle line:90% is a technology business. 00:02:59.230 --> 00:03:02.610 align:middle line:84% And when we were looking at making acquisitions-- 00:03:02.610 --> 00:03:05.330 align:middle line:84% and this was for some of their small divisions-- 00:03:05.330 --> 00:03:08.090 align:middle line:84% it wasn't making an assessment of their financials, 00:03:08.090 --> 00:03:10.710 align:middle line:84% but making an assessment of their technologies. 00:03:10.710 --> 00:03:14.490 align:middle line:84% And I realized that I had a gaping hole in my background 00:03:14.490 --> 00:03:17.330 align:middle line:90% in terms of technology. 00:03:17.330 --> 00:03:19.930 align:middle line:84% So I came to MIT, and I got my master's 00:03:19.930 --> 00:03:21.350 align:middle line:90% in Mechanical Engineering. 00:03:21.350 --> 00:03:25.370 align:middle line:84% And my only goal in doing that was not to ever be an engineer, 00:03:25.370 --> 00:03:28.490 align:middle line:84% but to manage engineers and communicate, to be 00:03:28.490 --> 00:03:30.170 align:middle line:90% able to speak the language. 00:03:30.170 --> 00:03:33.850 align:middle line:84% And it really opened my eyes to this world of science 00:03:33.850 --> 00:03:38.090 align:middle line:84% and engineering and opened an intellectual curiosity in me 00:03:38.090 --> 00:03:40.470 align:middle line:84% that has stayed with me to this day. 00:03:40.470 --> 00:03:43.410 align:middle line:90% It was a great experience. 00:03:43.410 --> 00:03:45.470 align:middle line:90% But I needed an idea. 00:03:45.470 --> 00:03:51.130 align:middle line:84% And I actually spent a year looking for an idea 00:03:51.130 --> 00:03:53.890 align:middle line:84% or for a failing business to turn around 00:03:53.890 --> 00:03:56.670 align:middle line:90% and didn't know what to do. 00:03:56.670 --> 00:03:59.590 align:middle line:84% I finally went back to my thesis advisor, Woodie Flowers, 00:03:59.590 --> 00:04:02.150 align:middle line:90% and he led me to the TLO. 00:04:02.150 --> 00:04:04.850 align:middle line:84% So the Technology Licensing Office at MIT 00:04:04.850 --> 00:04:06.770 align:middle line:84% pays to patent inventions that are 00:04:06.770 --> 00:04:08.850 align:middle line:84% made by the students and the professors, 00:04:08.850 --> 00:04:11.610 align:middle line:84% and then they look for people and companies 00:04:11.610 --> 00:04:13.530 align:middle line:84% to commercialize those technologies 00:04:13.530 --> 00:04:15.050 align:middle line:90% and take them to market. 00:04:15.050 --> 00:04:17.649 align:middle line:84% And that was really exciting because 00:04:17.649 --> 00:04:20.769 align:middle line:84% after looking at a lot of failing businesses that 00:04:20.769 --> 00:04:24.170 align:middle line:84% were failing because they had no product differentiation 00:04:24.170 --> 00:04:26.610 align:middle line:84% and they had to compete on price, 00:04:26.610 --> 00:04:30.690 align:middle line:84% suddenly I saw these really cool, patented technologies 00:04:30.690 --> 00:04:33.150 align:middle line:84% that they were looking for someone to commercialize. 00:04:33.150 --> 00:04:35.950 align:middle line:84% And one of them was in 3D printing. 00:04:35.950 --> 00:04:39.370 align:middle line:84% And this is back before 3D printing was a term. 00:04:39.370 --> 00:04:42.410 align:middle line:84% So nobody knew what 3D printing was. 00:04:42.410 --> 00:04:47.790 align:middle line:84% There was a project going on at MIT led by Professor Ely Sachs. 00:04:47.790 --> 00:04:52.450 align:middle line:84% He had a team of 30 students, and they were looking to make 00:04:52.450 --> 00:04:57.180 align:middle line:84% a 3D printer that could go into outer space to make replacement 00:04:57.180 --> 00:05:01.580 align:middle line:84% parts for the stations that are out there. 00:05:01.580 --> 00:05:04.180 align:middle line:84% And it was a very ambitious project. 00:05:04.180 --> 00:05:07.620 align:middle line:84% And basically, they were designing their own print heads 00:05:07.620 --> 00:05:12.540 align:middle line:84% to be able to fabricate parts out of metal. 00:05:12.540 --> 00:05:15.940 align:middle line:84% And there were two guys working on the project that 00:05:15.940 --> 00:05:19.040 align:middle line:84% were very frustrated designing these print heads. 00:05:19.040 --> 00:05:22.360 align:middle line:84% And they turned the technical problem on its head. 00:05:22.360 --> 00:05:25.420 align:middle line:84% And they said, instead of designing a print head 00:05:25.420 --> 00:05:28.460 align:middle line:84% around a given material system, let's 00:05:28.460 --> 00:05:33.140 align:middle line:84% design a material system around an off-the-shelf inkjet print 00:05:33.140 --> 00:05:33.820 align:middle line:90% head. 00:05:33.820 --> 00:05:37.660 align:middle line:84% So they went to Staples, and they bought a Canon paper 00:05:37.660 --> 00:05:40.000 align:middle line:90% printer, and they butchered it. 00:05:40.000 --> 00:05:42.580 align:middle line:84% And they said, OK, what sticks together 00:05:42.580 --> 00:05:46.180 align:middle line:90% with basically ink or water? 00:05:46.180 --> 00:05:49.040 align:middle line:84% And they decided sugar and cornstarch, 00:05:49.040 --> 00:05:52.400 align:middle line:84% because if you've ever left your cereal bowl overnight, 00:05:52.400 --> 00:05:54.140 align:middle line:90% it turns hard as a rock. 00:05:54.140 --> 00:05:57.960 align:middle line:90% So they built a prototype. 00:05:57.960 --> 00:06:02.120 align:middle line:84% And the folks at MIT didn't know what to do with it. 00:06:02.120 --> 00:06:04.680 align:middle line:84% And so I met these two engineers. 00:06:04.680 --> 00:06:07.260 align:middle line:84% They said, we're two engineers looking for a boss. 00:06:07.260 --> 00:06:08.920 align:middle line:84% I said, we're going to get along great. 00:06:08.920 --> 00:06:10.100 align:middle line:90% This is perfect. 00:06:10.100 --> 00:06:12.880 align:middle line:90% And that's how we started. 00:06:12.880 --> 00:06:17.380 align:middle line:84% So we founded the business in 1994, in Kendall Square. 00:06:17.380 --> 00:06:19.900 align:middle line:84% We set a goal of delivering our first product 00:06:19.900 --> 00:06:22.220 align:middle line:90% within two years, which we did. 00:06:22.220 --> 00:06:24.140 align:middle line:84% And then we reached profitability 00:06:24.140 --> 00:06:26.100 align:middle line:90% two years after that. 00:06:26.100 --> 00:06:29.580 align:middle line:84% In 2001, we were named the fastest-growing business 00:06:29.580 --> 00:06:30.780 align:middle line:90% in New England. 00:06:30.780 --> 00:06:32.320 align:middle line:90% We had no venture capital. 00:06:32.320 --> 00:06:35.420 align:middle line:84% And I make it sound like, oh, we did all this with no venture 00:06:35.420 --> 00:06:36.720 align:middle line:90% capital because we're so smart. 00:06:36.720 --> 00:06:39.340 align:middle line:84% No, we did it because nobody would invest in us. 00:06:39.340 --> 00:06:44.140 align:middle line:84% So that's just the hard reality of building a hardware business 00:06:44.140 --> 00:06:48.260 align:middle line:84% when the internet is taking off in the early '90s. 00:06:48.260 --> 00:06:50.500 align:middle line:84% Over 10 years, we grew to $30 million 00:06:50.500 --> 00:06:53.140 align:middle line:90% in revenues with 125 employees. 00:06:53.140 --> 00:06:55.140 align:middle line:84% And we were one of the early market leaders 00:06:55.140 --> 00:06:56.900 align:middle line:90% with number 2 in market share. 00:06:56.900 --> 00:07:00.100 align:middle line:84% So I'm going to share a lot of stories from my Z Corp 00:07:00.100 --> 00:07:03.940 align:middle line:84% experience with you during the course of this talk. 00:07:03.940 --> 00:07:08.260 align:middle line:90% We exited after 10 years. 00:07:08.260 --> 00:07:10.900 align:middle line:84% I'm assuming that everyone in this room 00:07:10.900 --> 00:07:14.520 align:middle line:84% is looking at entrepreneurship from a deep-tech perspective. 00:07:14.520 --> 00:07:16.340 align:middle line:84% So everything I'm going to tell you really 00:07:16.340 --> 00:07:18.360 align:middle line:90% relates to developing deep tech. 00:07:18.360 --> 00:07:19.940 align:middle line:90% Deep tech takes time. 00:07:19.940 --> 00:07:21.880 align:middle line:84% And so you should count on 10 years. 00:07:21.880 --> 00:07:25.860 align:middle line:90% That's a reasonable time frame. 00:07:25.860 --> 00:07:27.600 align:middle line:84% We ended up selling the business. 00:07:27.600 --> 00:07:29.940 align:middle line:90% So I have four kids. 00:07:29.940 --> 00:07:32.500 align:middle line:84% But at the time, they were little, 00:07:32.500 --> 00:07:34.880 align:middle line:90% and I became really burnt out. 00:07:34.880 --> 00:07:41.020 align:middle line:84% I had twin girls in October, and we shipped our first product 00:07:41.020 --> 00:07:42.680 align:middle line:90% in December two months later. 00:07:42.680 --> 00:07:44.320 align:middle line:90% So it was just total chaos. 00:07:44.320 --> 00:07:48.630 align:middle line:84% I had the twins in the office for the first year of their life 00:07:48.630 --> 00:07:51.330 align:middle line:84% until they learn to reboot the computers, 00:07:51.330 --> 00:07:55.150 align:middle line:84% and then we had to kick them out. 00:07:55.150 --> 00:07:56.810 align:middle line:90% So I got burnt out. 00:07:56.810 --> 00:07:58.550 align:middle line:90% We sold the business. 00:07:58.550 --> 00:08:01.590 align:middle line:84% Since that time, I've been a corporate director, 00:08:01.590 --> 00:08:05.150 align:middle line:84% an angel investor, an advisor to startups 00:08:05.150 --> 00:08:08.290 align:middle line:84% and then increasingly, over the last decade, 00:08:08.290 --> 00:08:10.910 align:middle line:84% have gotten involved with the startup ecosystem coming out 00:08:10.910 --> 00:08:11.990 align:middle line:90% of Greece. 00:08:11.990 --> 00:08:14.610 align:middle line:84% So they were decimated by the economic crisis, 00:08:14.610 --> 00:08:16.590 align:middle line:84% but they have really smart engineers. 00:08:16.590 --> 00:08:18.870 align:middle line:84% They saw what was happening around the world 00:08:18.870 --> 00:08:23.690 align:middle line:84% and particularly in the US, and they started making startups. 00:08:23.690 --> 00:08:25.250 align:middle line:90% And now it's really taken off. 00:08:25.250 --> 00:08:26.910 align:middle line:90% It's really exciting to see. 00:08:26.910 --> 00:08:30.390 align:middle line:84% And I just got back literally earlier this week 00:08:30.390 --> 00:08:32.830 align:middle line:84% from Milan, where I was lecturing 00:08:32.830 --> 00:08:36.630 align:middle line:84% at the Polytechnic of Milan and at Bocconi 00:08:36.630 --> 00:08:37.809 align:middle line:90% about entrepreneurship. 00:08:37.809 --> 00:08:41.750 align:middle line:84% So there's a growing interest in entrepreneurship in these tech 00:08:41.750 --> 00:08:45.670 align:middle line:84% hubs around the world where engineers 00:08:45.670 --> 00:08:49.590 align:middle line:84% are looking at not just pursuing research 00:08:49.590 --> 00:08:52.550 align:middle line:84% as a career or academia as a career, 00:08:52.550 --> 00:08:55.310 align:middle line:84% but taking their research and commercializing it 00:08:55.310 --> 00:08:57.990 align:middle line:90% and making it into a product. 00:08:57.990 --> 00:08:59.170 align:middle line:90% I am also a writer. 00:08:59.170 --> 00:09:02.690 align:middle line:84% So I write business articles, short stories, personal essays. 00:09:02.690 --> 00:09:06.790 align:middle line:84% And you can see them at windystreet.com. 00:09:06.790 --> 00:09:09.650 align:middle line:84% So Bob did a great job talking about this. 00:09:09.650 --> 00:09:12.710 align:middle line:90% Why would you create a startup? 00:09:12.710 --> 00:09:15.410 align:middle line:84% You might have a passion for particular technology. 00:09:15.410 --> 00:09:17.650 align:middle line:84% I mean, that's what I see a lot of at MIT, 00:09:17.650 --> 00:09:21.790 align:middle line:84% is people are working on technology, 00:09:21.790 --> 00:09:25.510 align:middle line:84% and they just want to continue working on it. 00:09:25.510 --> 00:09:29.550 align:middle line:84% It could be a desire to solve a problem, any problem. 00:09:29.550 --> 00:09:31.590 align:middle line:84% That was part of my desire, is I wanted 00:09:31.590 --> 00:09:33.450 align:middle line:84% to make the world a little better place, 00:09:33.450 --> 00:09:35.710 align:middle line:84% but I didn't have any specific goal. 00:09:35.710 --> 00:09:37.950 align:middle line:84% But sometimes somebody has a specific problem 00:09:37.950 --> 00:09:38.770 align:middle line:90% they want to solve. 00:09:38.770 --> 00:09:41.070 align:middle line:84% So I've invested in a startup in Greece 00:09:41.070 --> 00:09:46.510 align:middle line:84% where the entrepreneur is a brain surgeon. 00:09:46.510 --> 00:09:53.190 align:middle line:84% His mother died of brain cancer, and so he has a technology that 00:09:53.190 --> 00:09:57.030 align:middle line:90% can help diagnose brain tumors. 00:09:57.030 --> 00:10:00.090 align:middle line:90% But it can also be independence. 00:10:00.090 --> 00:10:01.910 align:middle line:90% You want to be your own boss. 00:10:01.910 --> 00:10:05.350 align:middle line:84% You want the sense of teamwork and community, 00:10:05.350 --> 00:10:06.770 align:middle line:90% or you want to make money. 00:10:06.770 --> 00:10:09.770 align:middle line:84% And there's no right answer, no wrong answer. 00:10:09.770 --> 00:10:13.470 align:middle line:84% But it's important that you articulate your goals 00:10:13.470 --> 00:10:16.510 align:middle line:84% because, otherwise, you won't know if you're successful 00:10:16.510 --> 00:10:17.090 align:middle line:90% or not. 00:10:17.090 --> 00:10:21.470 align:middle line:84% So for example, the guy that I mentioned who wants 00:10:21.470 --> 00:10:23.950 align:middle line:90% to help diagnose brain cancer-- 00:10:23.950 --> 00:10:27.870 align:middle line:84% well, the finances of his business 00:10:27.870 --> 00:10:30.330 align:middle line:90% are not the number-one criteria. 00:10:30.330 --> 00:10:32.670 align:middle line:84% As long as he can get a product out to market, 00:10:32.670 --> 00:10:36.510 align:middle line:84% be solving people's problems, he will feel successful. 00:10:36.510 --> 00:10:41.670 align:middle line:84% And hopefully, the finances will follow. 00:10:41.670 --> 00:10:43.700 align:middle line:84% But if your goal is to make money, 00:10:43.700 --> 00:10:46.260 align:middle line:84% then you're going to build a business a different way. 00:10:46.260 --> 00:10:50.600 align:middle line:84% And so it's important you know what that is. 00:10:50.600 --> 00:10:53.340 align:middle line:84% When you're doing a deep-tech startup, 00:10:53.340 --> 00:10:56.500 align:middle line:84% it really all should start with intellectual property. 00:10:56.500 --> 00:10:58.820 align:middle line:90% So you know about patents. 00:10:58.820 --> 00:11:01.060 align:middle line:90% Patents are a great deal. 00:11:01.060 --> 00:11:04.040 align:middle line:84% The deal is you're going to share best practice 00:11:04.040 --> 00:11:05.640 align:middle line:90% about how to do something. 00:11:05.640 --> 00:11:08.120 align:middle line:84% And in exchange, you get 20 years 00:11:08.120 --> 00:11:11.160 align:middle line:84% of a monopoly on that technology. 00:11:11.160 --> 00:11:14.420 align:middle line:84% That's just a phenomenal deal, and it blocks competition. 00:11:14.420 --> 00:11:15.840 align:middle line:90% And I'll tell you a story. 00:11:15.840 --> 00:11:20.560 align:middle line:84% In our company, one of our early customers 00:11:20.560 --> 00:11:24.620 align:middle line:84% was a very large, well-known name brand 00:11:24.620 --> 00:11:25.900 align:middle line:90% I'm not going to mention it. 00:11:25.900 --> 00:11:28.800 align:middle line:84% And we had heard rumors that they 00:11:28.800 --> 00:11:30.920 align:middle line:90% had taken apart our machine. 00:11:30.920 --> 00:11:32.480 align:middle line:84% And we got nervous that they were 00:11:32.480 --> 00:11:35.000 align:middle line:84% going to compete against us, and we would have no chance 00:11:35.000 --> 00:11:37.120 align:middle line:90% because this is a huge company. 00:11:37.120 --> 00:11:41.800 align:middle line:84% Well, they didn't until the MIT patents expired. 00:11:41.800 --> 00:11:45.200 align:middle line:84% And then they came to market with a competitive product. 00:11:45.200 --> 00:11:48.280 align:middle line:90% So that made a huge difference. 00:11:48.280 --> 00:11:51.920 align:middle line:84% For us to have that protection over that period of time 00:11:51.920 --> 00:11:54.560 align:middle line:90% allowed us to invest the money. 00:11:54.560 --> 00:11:58.700 align:middle line:84% It takes time to create an innovative market. 00:11:58.700 --> 00:12:01.380 align:middle line:84% The more innovative what your product is, 00:12:01.380 --> 00:12:04.080 align:middle line:84% the longer it takes to educate the market 00:12:04.080 --> 00:12:05.420 align:middle line:90% and to grow the market. 00:12:05.420 --> 00:12:09.600 align:middle line:84% And so that allowed us the time to do that. 00:12:09.600 --> 00:12:13.720 align:middle line:84% But you should also keep in mind and keep a hold of your trade 00:12:13.720 --> 00:12:18.000 align:middle line:84% secrets and your know-how, and be 00:12:18.000 --> 00:12:21.000 align:middle line:84% thoughtful about what those are, and make sure you 00:12:21.000 --> 00:12:23.040 align:middle line:90% are careful to protect that. 00:12:23.040 --> 00:12:25.320 align:middle line:84% And when people say they're worried 00:12:25.320 --> 00:12:28.680 align:middle line:84% about sharing with the outside world, 00:12:28.680 --> 00:12:31.560 align:middle line:84% that someone's going to steal their ideas, that's up to you 00:12:31.560 --> 00:12:35.000 align:middle line:84% to make sure you're protecting what is most secret 00:12:35.000 --> 00:12:37.420 align:middle line:84% and make sure your employees know it as well. 00:12:37.420 --> 00:12:39.960 align:middle line:90% 00:12:39.960 --> 00:12:42.100 align:middle line:90% The next thing is publications. 00:12:42.100 --> 00:12:44.580 align:middle line:84% Now, a lot of times, if you're in academia, 00:12:44.580 --> 00:12:47.800 align:middle line:84% if you're a graduate student or a professor, 00:12:47.800 --> 00:12:49.860 align:middle line:84% you're going to be incentivized to publish. 00:12:49.860 --> 00:12:51.600 align:middle line:84% And publishing is great, and it gives you 00:12:51.600 --> 00:12:53.740 align:middle line:90% credibility and all of that. 00:12:53.740 --> 00:12:54.760 align:middle line:90% It's wonderful. 00:12:54.760 --> 00:12:58.940 align:middle line:84% But you need to first patent and then publish. 00:12:58.940 --> 00:13:01.920 align:middle line:84% The order of events is extremely important. 00:13:01.920 --> 00:13:05.080 align:middle line:84% Once you publish, you can no longer patent. 00:13:05.080 --> 00:13:08.240 align:middle line:84% So you want that protection from patents. 00:13:08.240 --> 00:13:13.080 align:middle line:84% And therefore, you need to patent first before you publish. 00:13:13.080 --> 00:13:16.840 align:middle line:84% This picture here shows the proof of principle 00:13:16.840 --> 00:13:24.040 align:middle line:84% that was at the lab at MIT when I met the two engineers. 00:13:24.040 --> 00:13:27.300 align:middle line:90% This is an early prototype. 00:13:27.300 --> 00:13:31.380 align:middle line:84% What it proved was the fundamental science could work, 00:13:31.380 --> 00:13:34.880 align:middle line:84% because if someone had said, I'm going to take a paper printer 00:13:34.880 --> 00:13:40.790 align:middle line:84% and prove that it can build a 3D part, you'd say, you're crazy. 00:13:40.790 --> 00:13:42.670 align:middle line:84% There's no way that's going to work. 00:13:42.670 --> 00:13:46.730 align:middle line:84% And these two incredibly creative engineers 00:13:46.730 --> 00:13:48.690 align:middle line:90% proved that it could work. 00:13:48.690 --> 00:13:54.090 align:middle line:84% And so it's taking out that core technical risk. 00:13:54.090 --> 00:13:57.450 align:middle line:84% This particular machine required people 00:13:57.450 --> 00:14:00.570 align:middle line:90% to stand over and pour powder. 00:14:00.570 --> 00:14:03.930 align:middle line:90% It had two or three computers. 00:14:03.930 --> 00:14:08.410 align:middle line:84% Obviously, we knew we could make improvements to that. 00:14:08.410 --> 00:14:10.710 align:middle line:84% But it proved the fundamental concept, 00:14:10.710 --> 00:14:14.570 align:middle line:90% and that's the important thing. 00:14:14.570 --> 00:14:16.950 align:middle line:84% One mistake is part-time entrepreneurship. 00:14:16.950 --> 00:14:19.970 align:middle line:84% So this question came up earlier with Bob. 00:14:19.970 --> 00:14:23.610 align:middle line:90% And I want to be clear. 00:14:23.610 --> 00:14:25.610 align:middle line:84% I think Bob made a very good point 00:14:25.610 --> 00:14:28.570 align:middle line:84% that you need to validate before you're 00:14:28.570 --> 00:14:32.050 align:middle line:84% going to jump ship and give up your job and your salary 00:14:32.050 --> 00:14:33.170 align:middle line:90% and all that. 00:14:33.170 --> 00:14:38.750 align:middle line:84% But once you've validated and you know you want to go forward, 00:14:38.750 --> 00:14:40.650 align:middle line:90% time is of the essence. 00:14:40.650 --> 00:14:42.950 align:middle line:90% And you can't do this part-time. 00:14:42.950 --> 00:14:44.230 align:middle line:90% You can't do it on weekends. 00:14:44.230 --> 00:14:50.190 align:middle line:84% I meet professors who say, yeah, I've got a startup on the side. 00:14:50.190 --> 00:14:53.570 align:middle line:84% And they do three hours on Saturday morning. 00:14:53.570 --> 00:14:56.770 align:middle line:84% That's just not going to get you anywhere. 00:14:56.770 --> 00:15:01.110 align:middle line:84% And so our entrepreneurship is not a part-time job. 00:15:01.110 --> 00:15:04.010 align:middle line:84% Researchers need entrepreneurs, and entrepreneurs 00:15:04.010 --> 00:15:05.030 align:middle line:90% need researchers. 00:15:05.030 --> 00:15:08.250 align:middle line:84% So if you are a technical person and you're not 00:15:08.250 --> 00:15:09.850 align:middle line:84% that interested in the business side 00:15:09.850 --> 00:15:12.530 align:middle line:84% or you don't know what you're doing, 00:15:12.530 --> 00:15:17.290 align:middle line:84% you can pair up with somebody who's on the business side. 00:15:17.290 --> 00:15:22.210 align:middle line:84% And that makes a very powerful combination. 00:15:22.210 --> 00:15:24.810 align:middle line:90% A strong name is important. 00:15:24.810 --> 00:15:26.590 align:middle line:90% This seems like a real detail. 00:15:26.590 --> 00:15:31.330 align:middle line:84% But actually, it's something that you should take a moment 00:15:31.330 --> 00:15:34.050 align:middle line:84% to think about when you start your business because it's 00:15:34.050 --> 00:15:36.690 align:middle line:90% hard to change later. 00:15:36.690 --> 00:15:41.410 align:middle line:84% You want to create a brand that you can use to grow a business. 00:15:41.410 --> 00:15:44.818 align:middle line:84% And you want to avoid legal issues. 00:15:44.818 --> 00:15:47.930 align:middle line:90% [COUGHS] Excuse me. 00:15:47.930 --> 00:15:50.970 align:middle line:84% So instead of choosing a poor name, what you want to do 00:15:50.970 --> 00:15:53.410 align:middle line:84% is, number 1, do a website search. 00:15:53.410 --> 00:15:58.490 align:middle line:84% I invested in a startup where the name-- 00:15:58.490 --> 00:16:00.390 align:middle line:84% we spent so long trying to find a name. 00:16:00.390 --> 00:16:01.890 align:middle line:90% We found a great name. 00:16:01.890 --> 00:16:04.870 align:middle line:84% Then, it turned out, the website was not available. 00:16:04.870 --> 00:16:09.150 align:middle line:84% And so that just becomes a huge nightmare. 00:16:09.150 --> 00:16:11.970 align:middle line:84% You invest all this money, and then it's not there. 00:16:11.970 --> 00:16:16.930 align:middle line:84% Another is you want it to be easy to spell and easy to type. 00:16:16.930 --> 00:16:19.610 align:middle line:84% I see with a lot of startups in Greece, 00:16:19.610 --> 00:16:21.310 align:middle line:90% Greeks love their language. 00:16:21.310 --> 00:16:23.090 align:middle line:90% It's a beautiful language. 00:16:23.090 --> 00:16:27.810 align:middle line:84% But a lot of times, they'll use long, beautiful Greek words 00:16:27.810 --> 00:16:30.530 align:middle line:90% that nobody else can spell. 00:16:30.530 --> 00:16:31.830 align:middle line:90% You don't want to do that. 00:16:31.830 --> 00:16:35.120 align:middle line:90% 00:16:35.120 --> 00:16:39.860 align:middle line:84% You don't want a name that is so generic that if you do a Google 00:16:39.860 --> 00:16:45.802 align:middle line:84% search, a million other things come up other than your company. 00:16:45.802 --> 00:16:47.260 align:middle line:84% You also need to check that there's 00:16:47.260 --> 00:16:48.600 align:middle line:90% no trademark infringement. 00:16:48.600 --> 00:16:49.520 align:middle line:90% That's very easy. 00:16:49.520 --> 00:16:52.020 align:middle line:84% You can just go online and do a search. 00:16:52.020 --> 00:16:55.040 align:middle line:84% You want to make sure the name is legally available. 00:16:55.040 --> 00:16:57.020 align:middle line:90% That's also very easy to do. 00:16:57.020 --> 00:16:59.220 align:middle line:84% But one last thing is you don't want it 00:16:59.220 --> 00:17:01.500 align:middle line:90% to be limiting for the future. 00:17:01.500 --> 00:17:08.460 align:middle line:84% So I'm an advisor for a conference that was called 00:17:08.460 --> 00:17:10.260 align:middle line:90% the Nantucket Conference. 00:17:10.260 --> 00:17:12.339 align:middle line:84% And this coming year, it's going to be 00:17:12.339 --> 00:17:15.420 align:middle line:90% moved to Chatham on Cape Cod. 00:17:15.420 --> 00:17:19.859 align:middle line:84% So the name becomes an issue because it's confusing 00:17:19.859 --> 00:17:23.460 align:middle line:84% if you say it's the Nantucket Conference based in Chatham. 00:17:23.460 --> 00:17:28.620 align:middle line:84% And so ideally, you pick a name that can grow with the business 00:17:28.620 --> 00:17:35.100 align:middle line:84% and move with you so that you can leverage off of the brand 00:17:35.100 --> 00:17:39.300 align:middle line:84% that you have built over many years. 00:17:39.300 --> 00:17:44.780 align:middle line:84% One thing that entrepreneurs often are worried about 00:17:44.780 --> 00:17:46.320 align:middle line:90% is staying stealth. 00:17:46.320 --> 00:17:48.000 align:middle line:84% And I meet a lot of entrepreneurs. 00:17:48.000 --> 00:17:51.220 align:middle line:84% They don't want to share any of their ideas. 00:17:51.220 --> 00:17:54.140 align:middle line:84% They're worried someone's going to steal their idea. 00:17:54.140 --> 00:17:57.080 align:middle line:84% They might even not want too much customer input 00:17:57.080 --> 00:17:59.660 align:middle line:84% because they have a very strong idea in their head, 00:17:59.660 --> 00:18:01.160 align:middle line:84% and they don't want to get confused, 00:18:01.160 --> 00:18:04.180 align:middle line:84% or they don't want to get a lot of different opinions. 00:18:04.180 --> 00:18:06.760 align:middle line:84% And also, it's really hard to find customers. 00:18:06.760 --> 00:18:07.920 align:middle line:90% Where do you find them? 00:18:07.920 --> 00:18:09.260 align:middle line:90% All of that. 00:18:09.260 --> 00:18:11.460 align:middle line:90% This is a bad approach. 00:18:11.460 --> 00:18:13.720 align:middle line:84% Instead, what you want to do is get feedback. 00:18:13.720 --> 00:18:15.820 align:middle line:84% You have so much more to gain than 00:18:15.820 --> 00:18:18.720 align:middle line:84% to lose by getting feedback from the market, 00:18:18.720 --> 00:18:20.740 align:middle line:90% by talking to your customers. 00:18:20.740 --> 00:18:24.040 align:middle line:84% Keep in mind, if all you have is an idea, 00:18:24.040 --> 00:18:27.000 align:middle line:84% as soon as you hit the market, anybody else can copy it. 00:18:27.000 --> 00:18:31.620 align:middle line:84% So you should have more than just this idea. 00:18:31.620 --> 00:18:33.480 align:middle line:90% But you can share the idea. 00:18:33.480 --> 00:18:36.020 align:middle line:84% You can share your concept-- what is the problem 00:18:36.020 --> 00:18:37.260 align:middle line:90% you're solving-- 00:18:37.260 --> 00:18:40.040 align:middle line:84% without giving away your secrets. 00:18:40.040 --> 00:18:44.100 align:middle line:84% So ideally, you have some trade secrets, some know-how 00:18:44.100 --> 00:18:46.000 align:middle line:90% that you will keep to yourself. 00:18:46.000 --> 00:18:47.860 align:middle line:84% Your customers don't need to know that. 00:18:47.860 --> 00:18:48.980 align:middle line:90% They don't care. 00:18:48.980 --> 00:18:54.700 align:middle line:84% They really, truly do not care about the inner workings 00:18:54.700 --> 00:18:56.980 align:middle line:84% of the product that you're building. 00:18:56.980 --> 00:19:01.700 align:middle line:84% They just care, do you have a solution to their problem? 00:19:01.700 --> 00:19:04.400 align:middle line:84% So you want to find out, is the problem painful enough? 00:19:04.400 --> 00:19:05.580 align:middle line:90% How big is the market? 00:19:05.580 --> 00:19:07.620 align:middle line:90% And is it worth going into? 00:19:07.620 --> 00:19:10.580 align:middle line:84% And one thing you'll see is that startup opportunities 00:19:10.580 --> 00:19:13.520 align:middle line:84% come when there's a disruption in the market. 00:19:13.520 --> 00:19:17.000 align:middle line:84% Disruptions might be regulations. 00:19:17.000 --> 00:19:19.660 align:middle line:90% It might be demographic changes. 00:19:19.660 --> 00:19:22.740 align:middle line:84% It might be new enabling technologies. 00:19:22.740 --> 00:19:27.620 align:middle line:84% So these are changes that come about that now, as a startup, 00:19:27.620 --> 00:19:31.550 align:middle line:84% you have an opportunity to go in there and do something new. 00:19:31.550 --> 00:19:34.090 align:middle line:84% But beware of transient disruptions. 00:19:34.090 --> 00:19:37.430 align:middle line:84% So for example, I invested in a startup 00:19:37.430 --> 00:19:41.470 align:middle line:84% that was really leveraging off corporate investments in DEI 00:19:41.470 --> 00:19:42.670 align:middle line:90% initiatives. 00:19:42.670 --> 00:19:46.170 align:middle line:84% And that has just all gone by the wayside. 00:19:46.170 --> 00:19:49.950 align:middle line:84% And the company has gone under because those investments have 00:19:49.950 --> 00:19:51.510 align:middle line:90% gone away. 00:19:51.510 --> 00:19:55.030 align:middle line:84% COVID-- I saw so many startups that 00:19:55.030 --> 00:19:59.470 align:middle line:84% were solving the COVID problem, various aspects of it. 00:19:59.470 --> 00:20:03.590 align:middle line:84% And where are any of those companies today? 00:20:03.590 --> 00:20:05.410 align:middle line:84% When you're looking at disruptions, 00:20:05.410 --> 00:20:07.390 align:middle line:84% you want to think about, how long 00:20:07.390 --> 00:20:09.870 align:middle line:84% is this disruption going to last? 00:20:09.870 --> 00:20:12.630 align:middle line:84% Because you don't want to invest in something 00:20:12.630 --> 00:20:16.070 align:middle line:84% that isn't going to be around in a couple of years. 00:20:16.070 --> 00:20:20.430 align:middle line:84% But the reason disruptions are an opportunity 00:20:20.430 --> 00:20:24.090 align:middle line:84% for a startup is because startups can pivot. 00:20:24.090 --> 00:20:26.630 align:middle line:84% And I want to make sure you understand 00:20:26.630 --> 00:20:31.110 align:middle line:84% this, that large companies have every advantage over you. 00:20:31.110 --> 00:20:33.330 align:middle line:90% They have manufacturing. 00:20:33.330 --> 00:20:35.297 align:middle line:90% They have R&D. They have sales. 00:20:35.297 --> 00:20:36.130 align:middle line:90% They have marketing. 00:20:36.130 --> 00:20:37.250 align:middle line:90% They have distribution. 00:20:37.250 --> 00:20:38.270 align:middle line:90% They have money. 00:20:38.270 --> 00:20:39.570 align:middle line:90% They have experience. 00:20:39.570 --> 00:20:40.458 align:middle line:90% They know the market. 00:20:40.458 --> 00:20:42.250 align:middle line:84% They have relationships with the customers. 00:20:42.250 --> 00:20:43.410 align:middle line:90% They have brands. 00:20:43.410 --> 00:20:48.670 align:middle line:84% They have absolutely everything except the ability to pivot. 00:20:48.670 --> 00:20:54.830 align:middle line:84% They are large ships that cannot steer quickly. 00:20:54.830 --> 00:20:59.430 align:middle line:84% That is why you always want to look for opportunities where 00:20:59.430 --> 00:21:05.830 align:middle line:84% that ability to pivot will put you in an advantageous position. 00:21:05.830 --> 00:21:07.530 align:middle line:90% That is your startup edge. 00:21:07.530 --> 00:21:09.330 align:middle line:84% And startups are always pivoting. 00:21:09.330 --> 00:21:12.430 align:middle line:90% That's not a one-time thing. 00:21:12.430 --> 00:21:16.610 align:middle line:84% The more innovative your market is, the more unknowns there are. 00:21:16.610 --> 00:21:19.710 align:middle line:84% There's no playbook to follow, just like Bob was saying. 00:21:19.710 --> 00:21:21.630 align:middle line:84% And so you're always making decisions 00:21:21.630 --> 00:21:23.330 align:middle line:90% with incomplete information. 00:21:23.330 --> 00:21:26.100 align:middle line:84% And that's why, when you're in a startup, 00:21:26.100 --> 00:21:29.160 align:middle line:84% you often feel like it's a big fog because you're 00:21:29.160 --> 00:21:32.560 align:middle line:84% making these decisions, and you have no idea because you 00:21:32.560 --> 00:21:34.180 align:middle line:90% don't have enough information. 00:21:34.180 --> 00:21:37.600 align:middle line:84% It's not like when you're given a nice problem set, 00:21:37.600 --> 00:21:42.280 align:middle line:84% and they give you, OK, the train is going at this velocity 00:21:42.280 --> 00:21:44.060 align:middle line:90% and blah, blah, blah. 00:21:44.060 --> 00:21:46.820 align:middle line:84% And you're given all that information that you need. 00:21:46.820 --> 00:21:49.240 align:middle line:84% No, you don't have the information you need. 00:21:49.240 --> 00:21:52.360 align:middle line:84% So you're going to make a lot of mistakes. 00:21:52.360 --> 00:21:55.520 align:middle line:84% You have to try a lot of things and then shift direction. 00:21:55.520 --> 00:21:59.380 align:middle line:84% As soon as you learn, you have to learn from your failures. 00:21:59.380 --> 00:22:01.360 align:middle line:84% You're going to have a lot of failures. 00:22:01.360 --> 00:22:03.520 align:middle line:90% And you pivot. 00:22:03.520 --> 00:22:06.580 align:middle line:84% So all when you get the new information, 00:22:06.580 --> 00:22:09.480 align:middle line:90% you need to change direction. 00:22:09.480 --> 00:22:13.400 align:middle line:84% While you're building a deep-tech startup, 00:22:13.400 --> 00:22:16.360 align:middle line:84% you want to think about these two concurrent paths 00:22:16.360 --> 00:22:17.420 align:middle line:90% that you're working on. 00:22:17.420 --> 00:22:20.120 align:middle line:84% One is on the technology development. 00:22:20.120 --> 00:22:22.680 align:middle line:84% So you want to run a lot of tests 00:22:22.680 --> 00:22:25.760 align:middle line:84% to try different technology paths 00:22:25.760 --> 00:22:27.300 align:middle line:90% without investing too much. 00:22:27.300 --> 00:22:31.640 align:middle line:84% So you want to de-risk the areas of greatest technical risk 00:22:31.640 --> 00:22:33.780 align:middle line:84% without building a complete solution. 00:22:33.780 --> 00:22:37.720 align:middle line:84% So you might say, yeah, I know how to build a box, 00:22:37.720 --> 00:22:39.560 align:middle line:84% and I know how to do the electronics 00:22:39.560 --> 00:22:41.640 align:middle line:84% and how to do the software, but I 00:22:41.640 --> 00:22:44.220 align:middle line:84% want to de-risk this one particular element. 00:22:44.220 --> 00:22:47.160 align:middle line:84% So I'm just going to build in the lab 00:22:47.160 --> 00:22:50.660 align:middle line:84% a little subcomponent to de-risk that one element. 00:22:50.660 --> 00:22:54.480 align:middle line:84% And you want to test these elements of highest risk 00:22:54.480 --> 00:22:57.200 align:middle line:84% and see what works, what doesn't, and then pivot 00:22:57.200 --> 00:22:59.120 align:middle line:90% and change direction. 00:22:59.120 --> 00:23:03.320 align:middle line:84% Simultaneously, you're looking for the market opportunity. 00:23:03.320 --> 00:23:07.280 align:middle line:84% So you want to articulate, what are the technology 00:23:07.280 --> 00:23:10.720 align:middle line:84% advantages based on your intellectual property? 00:23:10.720 --> 00:23:13.620 align:middle line:84% Consider a wide range of industries. 00:23:13.620 --> 00:23:15.440 align:middle line:90% Speak with experts. 00:23:15.440 --> 00:23:17.760 align:middle line:90% Try for 20 ideas. 00:23:17.760 --> 00:23:19.380 align:middle line:90% Test the ideas quickly. 00:23:19.380 --> 00:23:20.820 align:middle line:90% And this is like speed dating. 00:23:20.820 --> 00:23:21.720 align:middle line:90% It's not dinner. 00:23:21.720 --> 00:23:22.900 align:middle line:90% It's coffee. 00:23:22.900 --> 00:23:25.420 align:middle line:84% So you just want to do something really quickly. 00:23:25.420 --> 00:23:26.660 align:middle line:90% Talk to customers. 00:23:26.660 --> 00:23:27.940 align:middle line:90% Get their feedback. 00:23:27.940 --> 00:23:33.150 align:middle line:84% And then based on that feedback, you may say, oh, well, 00:23:33.150 --> 00:23:35.400 align:middle line:84% if you could do something slightly different than what 00:23:35.400 --> 00:23:37.940 align:middle line:84% you're proposing, the customers might have an interest. 00:23:37.940 --> 00:23:38.680 align:middle line:90% OK. 00:23:38.680 --> 00:23:41.540 align:middle line:84% Now you go back to your technology team, and you say, 00:23:41.540 --> 00:23:43.520 align:middle line:84% can you do this slightly differently? 00:23:43.520 --> 00:23:47.980 align:middle line:84% And this is an iterative process where these two components-- 00:23:47.980 --> 00:23:51.240 align:middle line:84% the market side and the technology side-- 00:23:51.240 --> 00:23:53.380 align:middle line:90% are working side by side. 00:23:53.380 --> 00:23:55.640 align:middle line:84% You're developing both of them together 00:23:55.640 --> 00:23:58.440 align:middle line:84% to find that perfect product market fit. 00:23:58.440 --> 00:24:00.640 align:middle line:84% But always, you want to be going back 00:24:00.640 --> 00:24:02.300 align:middle line:90% to that intellectual property. 00:24:02.300 --> 00:24:05.120 align:middle line:84% You don't want to be finding perfect product market 00:24:05.120 --> 00:24:08.120 align:middle line:90% fit where you can't protect it. 00:24:08.120 --> 00:24:13.800 align:middle line:84% So you always want to be driven by that IP-enabled technology 00:24:13.800 --> 00:24:15.560 align:middle line:90% differentiation. 00:24:15.560 --> 00:24:19.720 align:middle line:84% So when you're looking for this product market fit, 00:24:19.720 --> 00:24:21.090 align:middle line:90% the answer isn't in-- 00:24:21.090 --> 00:24:22.550 align:middle line:90% there's no book to look at. 00:24:22.550 --> 00:24:24.010 align:middle line:90% It's not on the internet. 00:24:24.010 --> 00:24:25.610 align:middle line:84% Basically, what you need to do is 00:24:25.610 --> 00:24:29.970 align:middle line:84% articulate what is special and different based on the IP. 00:24:29.970 --> 00:24:32.290 align:middle line:84% Identify those potential markets. 00:24:32.290 --> 00:24:34.770 align:middle line:84% Create a prototype or a storyboard 00:24:34.770 --> 00:24:37.570 align:middle line:84% so you can communicate with customers. 00:24:37.570 --> 00:24:40.270 align:middle line:84% And then get your customer testing. 00:24:40.270 --> 00:24:41.810 align:middle line:90% Get their feedback. 00:24:41.810 --> 00:24:45.490 align:middle line:84% And that will direct the technology development. 00:24:45.490 --> 00:24:53.010 align:middle line:84% So an example of this is we had a 3D printer that could make 00:24:53.010 --> 00:24:54.970 align:middle line:90% parts this big. 00:24:54.970 --> 00:24:58.530 align:middle line:84% But a lot of our customers wanted larger parts. 00:24:58.530 --> 00:25:04.530 align:middle line:84% So we went back and made a larger 3D printer for those. 00:25:04.530 --> 00:25:05.670 align:middle line:90% We talked to the team. 00:25:05.670 --> 00:25:07.190 align:middle line:90% They said they could scale it. 00:25:07.190 --> 00:25:10.730 align:middle line:84% And we made a larger 3D printer to satisfy the needs 00:25:10.730 --> 00:25:12.810 align:middle line:90% of the customer. 00:25:12.810 --> 00:25:18.810 align:middle line:84% And yeah, so that's how that worked. 00:25:18.810 --> 00:25:23.230 align:middle line:84% One mistake entrepreneurs make is to seek a popular market. 00:25:23.230 --> 00:25:24.510 align:middle line:90% Everyone's talking about it. 00:25:24.510 --> 00:25:26.350 align:middle line:84% A crowded market must be promising. 00:25:26.350 --> 00:25:28.570 align:middle line:90% There's room for Pepsi and Coke. 00:25:28.570 --> 00:25:30.470 align:middle line:90% Incumbents are slow and stupid. 00:25:30.470 --> 00:25:33.250 align:middle line:90% We can be really nimble. 00:25:33.250 --> 00:25:36.370 align:middle line:84% And we don't need a lot of product differentiation. 00:25:36.370 --> 00:25:37.890 align:middle line:90% There's space for us. 00:25:37.890 --> 00:25:41.490 align:middle line:84% And if worse comes to worse, we can always lower the price. 00:25:41.490 --> 00:25:43.250 align:middle line:90% This is a terrible idea. 00:25:43.250 --> 00:25:45.590 align:middle line:84% Instead, you want to look at the opposite. 00:25:45.590 --> 00:25:47.530 align:middle line:90% You want to be differentiating. 00:25:47.530 --> 00:25:49.230 align:middle line:84% Lowering the price is not the answer. 00:25:49.230 --> 00:25:53.330 align:middle line:84% In fact, you should aim to price at a premium 00:25:53.330 --> 00:25:55.210 align:middle line:90% to whatever is in the market. 00:25:55.210 --> 00:25:57.330 align:middle line:84% You should look to do something that 00:25:57.330 --> 00:26:00.970 align:middle line:84% is so much better than anything else on the market 00:26:00.970 --> 00:26:03.010 align:middle line:90% that you can price it higher. 00:26:03.010 --> 00:26:06.350 align:middle line:84% So the state of the art for you should be the starting point, 00:26:06.350 --> 00:26:07.930 align:middle line:90% not the end point. 00:26:07.930 --> 00:26:10.410 align:middle line:84% Differentiate so you can sell at a premium. 00:26:10.410 --> 00:26:14.090 align:middle line:84% And always go back to what makes you uniquely positioned 00:26:14.090 --> 00:26:15.070 align:middle line:90% to do this. 00:26:15.070 --> 00:26:18.810 align:middle line:84% Ideally, your IP will enable you to do something better 00:26:18.810 --> 00:26:20.350 align:middle line:90% than what anyone else has. 00:26:20.350 --> 00:26:21.330 align:middle line:90% 00:26:21.330 --> 00:26:23.330 align:middle line:90% Consider your competition. 00:26:23.330 --> 00:26:26.070 align:middle line:84% So competition is a double-edged sword. 00:26:26.070 --> 00:26:28.510 align:middle line:84% Competition can actually be useful to you. 00:26:28.510 --> 00:26:33.090 align:middle line:84% In our case, it was useful because they were not 00:26:33.090 --> 00:26:34.373 align:middle line:90% huge companies. 00:26:34.373 --> 00:26:36.790 align:middle line:84% They were a lot bigger than we were, and they were public. 00:26:36.790 --> 00:26:39.890 align:middle line:84% They had more money than we did, but they were not 00:26:39.890 --> 00:26:41.970 align:middle line:90% Amazon or Google. 00:26:41.970 --> 00:26:44.190 align:middle line:90% And they educated the market. 00:26:44.190 --> 00:26:48.050 align:middle line:84% And in a case of something very innovative, like 3D printing, 00:26:48.050 --> 00:26:51.930 align:middle line:84% there was a lot of time and money required to educate 00:26:51.930 --> 00:26:55.090 align:middle line:84% engineers on why they would want a 3D printer. 00:26:55.090 --> 00:26:58.470 align:middle line:84% So what we found is that we liked having them out there 00:26:58.470 --> 00:27:02.130 align:middle line:84% because once people were educated on why they needed a 3D 00:27:02.130 --> 00:27:04.890 align:middle line:84% printer, then they would come do their research, 00:27:04.890 --> 00:27:06.330 align:middle line:90% and they would find us. 00:27:06.330 --> 00:27:09.970 align:middle line:84% Or if somebody already had a competitive 3D printer, 00:27:09.970 --> 00:27:11.410 align:middle line:90% we didn't mind that. 00:27:11.410 --> 00:27:13.990 align:middle line:84% They understood the value of 3D printing. 00:27:13.990 --> 00:27:17.320 align:middle line:84% Now we could sell against them and say why we were better. 00:27:17.320 --> 00:27:21.260 align:middle line:84% We were faster, and we were cheaper, and we could do color. 00:27:21.260 --> 00:27:25.000 align:middle line:84% And so we preferred a situation where we could compare it 00:27:25.000 --> 00:27:30.320 align:middle line:84% to something versus the do nothing, where they said, 00:27:30.320 --> 00:27:32.860 align:middle line:84% why do I need to do anything at all? 00:27:32.860 --> 00:27:36.060 align:middle line:84% I'm happy just looking on my computer screen. 00:27:36.060 --> 00:27:40.080 align:middle line:84% However, competition from huge incumbents-- like Amazon, 00:27:40.080 --> 00:27:42.160 align:middle line:90% like Google-- is really tough. 00:27:42.160 --> 00:27:43.620 align:middle line:90% They have everything. 00:27:43.620 --> 00:27:46.380 align:middle line:84% They might be slow, but they're not stupid. 00:27:46.380 --> 00:27:49.380 align:middle line:84% So you have to think about who's well positioned in terms 00:27:49.380 --> 00:27:52.140 align:middle line:90% of customers or technology. 00:27:52.140 --> 00:27:54.820 align:middle line:84% Why haven't they done it already? 00:27:54.820 --> 00:27:57.360 align:middle line:84% Maybe the enabling technology didn't exist. 00:27:57.360 --> 00:28:01.360 align:middle line:84% Maybe regulations didn't exist-- not that they're stupid, 00:28:01.360 --> 00:28:02.700 align:middle line:90% were smart. 00:28:02.700 --> 00:28:06.540 align:middle line:84% That is generally not a good answer. 00:28:06.540 --> 00:28:08.820 align:middle line:84% You want to think about, what will keep them 00:28:08.820 --> 00:28:10.340 align:middle line:90% from entering the market? 00:28:10.340 --> 00:28:15.300 align:middle line:84% Will they have an unfair advantage or will we? 00:28:15.300 --> 00:28:18.180 align:middle line:84% Then you want to create your minimum viable product 00:28:18.180 --> 00:28:19.780 align:middle line:90% as soon as possible. 00:28:19.780 --> 00:28:22.780 align:middle line:84% Get customer feedback and iterate on the design 00:28:22.780 --> 00:28:25.780 align:middle line:90% based on that feedback. 00:28:25.780 --> 00:28:28.060 align:middle line:84% One of the mistakes entrepreneurs 00:28:28.060 --> 00:28:29.840 align:middle line:90% make is striving for perfection. 00:28:29.840 --> 00:28:32.300 align:middle line:84% They want it to be perfect before they'll 00:28:32.300 --> 00:28:34.140 align:middle line:90% show it to the customers. 00:28:34.140 --> 00:28:37.700 align:middle line:84% And if they get poor feedback, the conclusion 00:28:37.700 --> 00:28:39.573 align:middle line:84% is, well, they didn't really understand. 00:28:39.573 --> 00:28:41.240 align:middle line:84% They didn't get what we're trying to do. 00:28:41.240 --> 00:28:46.180 align:middle line:84% They're not as innovative as we thought 00:28:46.180 --> 00:28:48.200 align:middle line:90% because mom and dad love it. 00:28:48.200 --> 00:28:51.700 align:middle line:84% Mom and dad think it's great, so it must be a good idea. 00:28:51.700 --> 00:28:52.900 align:middle line:90% No. 00:28:52.900 --> 00:28:55.620 align:middle line:84% Everyone's going to tell you they think it's a good idea. 00:28:55.620 --> 00:28:57.560 align:middle line:90% That doesn't mean anything. 00:28:57.560 --> 00:28:59.440 align:middle line:90% You need to talk to customers. 00:28:59.440 --> 00:29:01.020 align:middle line:84% You need to try to get their money. 00:29:01.020 --> 00:29:05.140 align:middle line:84% Until you get somebody to give you money for your product, 00:29:05.140 --> 00:29:08.340 align:middle line:84% you don't know if you have anything at all. 00:29:08.340 --> 00:29:12.040 align:middle line:90% So you want to get feedback. 00:29:12.040 --> 00:29:15.520 align:middle line:84% If you wait to get a perfect product, it's too late. 00:29:15.520 --> 00:29:16.720 align:middle line:90% You've missed the market. 00:29:16.720 --> 00:29:21.100 align:middle line:84% So you need to get-- no matter how smart you are, whatever 00:29:21.100 --> 00:29:25.100 align:middle line:84% you think is the right product to develop, 00:29:25.100 --> 00:29:26.960 align:middle line:84% when you get that customer feedback, 00:29:26.960 --> 00:29:29.140 align:middle line:84% you'll see that you're close, but you 00:29:29.140 --> 00:29:31.000 align:middle line:90% weren't quite on the market. 00:29:31.000 --> 00:29:33.680 align:middle line:84% And so when they give you that feedback, 00:29:33.680 --> 00:29:37.100 align:middle line:84% you'll use that to steer the development slightly 00:29:37.100 --> 00:29:39.020 align:middle line:90% differently. 00:29:39.020 --> 00:29:41.700 align:middle line:84% You want to speak with customers every day. 00:29:41.700 --> 00:29:42.680 align:middle line:90% Get their feedback. 00:29:42.680 --> 00:29:45.420 align:middle line:84% Get something into their hands that they can try. 00:29:45.420 --> 00:29:48.880 align:middle line:84% And try to sell the product before it even exists. 00:29:48.880 --> 00:29:51.820 align:middle line:84% Prospects will guide the development. 00:29:51.820 --> 00:29:55.900 align:middle line:84% The customers may even fund your R&D. This happens all the time. 00:29:55.900 --> 00:29:58.320 align:middle line:90% And that's hugely validating. 00:29:58.320 --> 00:30:01.260 align:middle line:84% If you can get your customers to pay for the R&D, 00:30:01.260 --> 00:30:03.200 align:middle line:90% then you are onto something. 00:30:03.200 --> 00:30:05.420 align:middle line:90% This has real potential. 00:30:05.420 --> 00:30:10.390 align:middle line:84% And don't worry if a lot of people think your idea is bad. 00:30:10.390 --> 00:30:13.530 align:middle line:84% You are not trying to create a solution for everyone. 00:30:13.530 --> 00:30:15.550 align:middle line:84% You just want to identify a niche that 00:30:15.550 --> 00:30:18.250 align:middle line:90% really gets excited about it. 00:30:18.250 --> 00:30:19.770 align:middle line:84% And then you can grow from there. 00:30:19.770 --> 00:30:22.830 align:middle line:84% So you need to find that first beachhead market that's 00:30:22.830 --> 00:30:25.670 align:middle line:84% going to get very excited, and then you'll 00:30:25.670 --> 00:30:28.310 align:middle line:90% know you're onto something. 00:30:28.310 --> 00:30:30.970 align:middle line:84% The next mistake is creating buzz. 00:30:30.970 --> 00:30:32.810 align:middle line:90% So focus on awards. 00:30:32.810 --> 00:30:35.550 align:middle line:84% Especially if you're coming out with 00:30:35.550 --> 00:30:39.430 align:middle line:84% some innovative, new product, people love covering that. 00:30:39.430 --> 00:30:44.110 align:middle line:84% They might write articles about you or give you awards. 00:30:44.110 --> 00:30:47.110 align:middle line:84% You might say, oh, I'm going to invest in a video that's 00:30:47.110 --> 00:30:48.710 align:middle line:90% going to go viral. 00:30:48.710 --> 00:30:50.350 align:middle line:90% Track your social media. 00:30:50.350 --> 00:30:51.710 align:middle line:90% Track the press. 00:30:51.710 --> 00:30:52.870 align:middle line:90% No. 00:30:52.870 --> 00:30:55.510 align:middle line:90% This is a losing bet. 00:30:55.510 --> 00:30:57.250 align:middle line:90% Instead, you want to focus. 00:30:57.250 --> 00:30:58.590 align:middle line:90% Stay focused. 00:30:58.590 --> 00:30:59.970 align:middle line:90% Ignore distractions. 00:30:59.970 --> 00:31:01.530 align:middle line:90% Disregard your awards. 00:31:01.530 --> 00:31:03.430 align:middle line:90% Disregard press coverage. 00:31:03.430 --> 00:31:06.690 align:middle line:84% What you want to do is focus on your revenue, your growth, 00:31:06.690 --> 00:31:09.350 align:middle line:84% and your customer, and your profits. 00:31:09.350 --> 00:31:12.530 align:middle line:84% So always be thinking about your customers. 00:31:12.530 --> 00:31:14.130 align:middle line:90% Are you solving their problem? 00:31:14.130 --> 00:31:16.070 align:middle line:90% Is that generating revenue? 00:31:16.070 --> 00:31:18.110 align:middle line:90% Is that generating profits? 00:31:18.110 --> 00:31:21.750 align:middle line:84% And make sure you look at the trajectory of your revenue 00:31:21.750 --> 00:31:22.370 align:middle line:90% growth. 00:31:22.370 --> 00:31:26.390 align:middle line:84% You want that to be as steep as possible. 00:31:26.390 --> 00:31:28.970 align:middle line:84% Another mistake is hiring people you trust. 00:31:28.970 --> 00:31:30.130 align:middle line:90% That seems so logical. 00:31:30.130 --> 00:31:32.350 align:middle line:84% Why wouldn't you want to hire people you trust? 00:31:32.350 --> 00:31:35.870 align:middle line:84% Well, loyal teams made with friends and family 00:31:35.870 --> 00:31:39.190 align:middle line:84% may not be the skill that you need. 00:31:39.190 --> 00:31:42.670 align:middle line:84% Having a famous board chair who's on a million other boards 00:31:42.670 --> 00:31:46.870 align:middle line:84% may not actually be particularly helpful to you. 00:31:46.870 --> 00:31:50.250 align:middle line:84% What you want to do is find founders with specific skills. 00:31:50.250 --> 00:31:54.230 align:middle line:84% So this is our founding team at Z Corporation. 00:31:54.230 --> 00:31:55.650 align:middle line:90% Jim Bredt is on the left. 00:31:55.650 --> 00:31:59.790 align:middle line:84% He got his PhD at MIT just as we were founding 00:31:59.790 --> 00:32:03.550 align:middle line:84% Z Corp. He was one of the crazy inventors who 00:32:03.550 --> 00:32:06.230 align:middle line:90% came up with this product. 00:32:06.230 --> 00:32:08.210 align:middle line:84% Walter Bornhorst was our chairman, 00:32:08.210 --> 00:32:11.470 align:middle line:84% who guided the strategic direction of the business 00:32:11.470 --> 00:32:15.510 align:middle line:84% and made some absolutely critical, strategic decisions 00:32:15.510 --> 00:32:18.630 align:middle line:84% that I'm going to talk about later in the presentation. 00:32:18.630 --> 00:32:26.550 align:middle line:84% That's me and then Tim Anderson, who was another crazy inventor 00:32:26.550 --> 00:32:30.950 align:middle line:84% who was working on the project at MIT and had the idea of using 00:32:30.950 --> 00:32:35.510 align:middle line:84% a paper printer to make 3D-printed parts. 00:32:35.510 --> 00:32:39.950 align:middle line:84% So you can see we had very different skill sets, business 00:32:39.950 --> 00:32:45.470 align:middle line:84% strategy, business execution, material science, and software, 00:32:45.470 --> 00:32:46.910 align:middle line:90% and hardware. 00:32:46.910 --> 00:32:51.350 align:middle line:84% So we were coming at it from very different perspectives, 00:32:51.350 --> 00:32:56.150 align:middle line:84% very diverse backgrounds, talents, interests, experience. 00:32:56.150 --> 00:33:00.150 align:middle line:84% And that's what you want to do, is build a diverse team. 00:33:00.150 --> 00:33:03.470 align:middle line:84% Leverage your network, but don't hire anybody 00:33:03.470 --> 00:33:07.540 align:middle line:84% that you can't fire because people make mistakes. 00:33:07.540 --> 00:33:09.720 align:middle line:90% This is part of what happens. 00:33:09.720 --> 00:33:14.040 align:middle line:84% Ideally, if you can work with people before hiring them-- 00:33:14.040 --> 00:33:17.520 align:middle line:84% if they don't have a job, then bring them on for one week. 00:33:17.520 --> 00:33:20.520 align:middle line:84% You'd be amazed how much you learn about a person after one 00:33:20.520 --> 00:33:24.400 align:middle line:84% week, much more than from an interview. 00:33:24.400 --> 00:33:26.420 align:middle line:84% And you'll pay them for that week, 00:33:26.420 --> 00:33:28.000 align:middle line:84% but you're not committing to anything 00:33:28.000 --> 00:33:30.280 align:middle line:90% until the end of the week. 00:33:30.280 --> 00:33:31.820 align:middle line:90% Empower the stars. 00:33:31.820 --> 00:33:37.120 align:middle line:84% So Jim and Tim were the most extraordinarily talented 00:33:37.120 --> 00:33:39.980 align:middle line:84% creative engineers I've ever met. 00:33:39.980 --> 00:33:42.360 align:middle line:90% They were unbelievable. 00:33:42.360 --> 00:33:46.380 align:middle line:84% But would they show up at the office at 8:00 in the morning? 00:33:46.380 --> 00:33:49.200 align:middle line:90% Mm, sometimes, maybe. 00:33:49.200 --> 00:33:53.800 align:middle line:84% There were certain things that just didn't-- 00:33:53.800 --> 00:33:55.380 align:middle line:90% it wasn't their thing. 00:33:55.380 --> 00:34:00.280 align:middle line:84% And yet, they could leapfrog the technology 00:34:00.280 --> 00:34:05.320 align:middle line:84% by coming in with a new idea and just blowing us 00:34:05.320 --> 00:34:07.240 align:middle line:90% away with what they had done. 00:34:07.240 --> 00:34:10.679 align:middle line:84% So when that happens, you want to empower those stars 00:34:10.679 --> 00:34:13.639 align:middle line:84% and fill in the holes with other people who 00:34:13.639 --> 00:34:16.360 align:middle line:90% can do the other elements-- 00:34:16.360 --> 00:34:23.800 align:middle line:84% organizing and keeping paperwork straight or whatever. 00:34:23.800 --> 00:34:25.920 align:middle line:84% One other thing is having a salesperson 00:34:25.920 --> 00:34:34.440 align:middle line:84% on the founding team is often a very strong indicator, something 00:34:34.440 --> 00:34:37.800 align:middle line:84% that will help you get successful because they will 00:34:37.800 --> 00:34:42.560 align:middle line:84% have a very strong communication with the customer 00:34:42.560 --> 00:34:46.840 align:middle line:90% and have a finger on the pulse. 00:34:46.840 --> 00:34:51.000 align:middle line:84% Sometimes senior executives will be out of touch 00:34:51.000 --> 00:34:53.880 align:middle line:90% and may not be that helpful. 00:34:53.880 --> 00:34:56.570 align:middle line:84% And busy board members may be disengaged. 00:34:56.570 --> 00:34:58.320 align:middle line:84% So they may be doing too many other things 00:34:58.320 --> 00:35:01.480 align:middle line:84% during board meetings, and so they're not 00:35:01.480 --> 00:35:04.000 align:middle line:90% going to be that helpful. 00:35:04.000 --> 00:35:05.440 align:middle line:90% Be nice. 00:35:05.440 --> 00:35:07.400 align:middle line:90% What's wrong with being nice? 00:35:07.400 --> 00:35:09.420 align:middle line:90% Maybe you avoid conflict. 00:35:09.420 --> 00:35:12.240 align:middle line:90% A lot of people avoid conflict. 00:35:12.240 --> 00:35:15.860 align:middle line:84% Sometimes negotiating feels-- my mother hates negotiating. 00:35:15.860 --> 00:35:17.720 align:middle line:90% She just refuses to negotiate. 00:35:17.720 --> 00:35:23.540 align:middle line:84% She buys cars at full price because people are nice. 00:35:23.540 --> 00:35:24.500 align:middle line:90% People are fair. 00:35:24.500 --> 00:35:27.400 align:middle line:90% 00:35:27.400 --> 00:35:30.120 align:middle line:90% But actually, no. 00:35:30.120 --> 00:35:32.180 align:middle line:90% Instead, embrace conflict. 00:35:32.180 --> 00:35:35.100 align:middle line:90% Conflict is the answer. 00:35:35.100 --> 00:35:40.800 align:middle line:84% And I really take great pride in the culture that we built at Z 00:35:40.800 --> 00:35:44.800 align:middle line:84% Corporation-- and it wasn't just me, it was our team-- 00:35:44.800 --> 00:35:46.720 align:middle line:90% in embracing conflict. 00:35:46.720 --> 00:35:51.160 align:middle line:84% So we argued about everything, like, everything. 00:35:51.160 --> 00:35:52.740 align:middle line:90% We were arguing all the time. 00:35:52.740 --> 00:35:57.880 align:middle line:84% Didn't take it personally, never got angry, never held a grudge. 00:35:57.880 --> 00:36:00.430 align:middle line:84% But we would debate things to the end. 00:36:00.430 --> 00:36:04.210 align:middle line:84% And as a result, we reached such better decisions 00:36:04.210 --> 00:36:07.570 align:middle line:84% because everyone was coming at it from a different perspective, 00:36:07.570 --> 00:36:10.950 align:middle line:84% with their different background, their different experience. 00:36:10.950 --> 00:36:14.290 align:middle line:84% And that is what led to better decision-making. 00:36:14.290 --> 00:36:19.370 align:middle line:84% So encourage diverse opinions at every level of the organization, 00:36:19.370 --> 00:36:22.650 align:middle line:84% and you'll find you make better decisions. 00:36:22.650 --> 00:36:24.310 align:middle line:90% And also, learn to negotiate. 00:36:24.310 --> 00:36:28.290 align:middle line:84% I guess there was some negotiation earlier in the week, 00:36:28.290 --> 00:36:31.490 align:middle line:84% and that is something you can definitely learn. 00:36:31.490 --> 00:36:35.510 align:middle line:84% Read a few books and practice every opportunity you have. 00:36:35.510 --> 00:36:38.490 align:middle line:90% 00:36:38.490 --> 00:36:42.450 align:middle line:84% And you have many opportunities just in your personal life. 00:36:42.450 --> 00:36:46.310 align:middle line:84% If you're in a relationship, you have to learn how to negotiate. 00:36:46.310 --> 00:36:49.290 align:middle line:90% And it's a good skill. 00:36:49.290 --> 00:36:51.370 align:middle line:90% Another is working hard. 00:36:51.370 --> 00:36:55.690 align:middle line:84% So sometimes people think that creating a frenetic work culture 00:36:55.690 --> 00:36:59.690 align:middle line:84% is helpful to the business, that you should sweat and slog 00:36:59.690 --> 00:37:05.550 align:middle line:84% 14 hours a day, use TV as a model, have an abusive boss. 00:37:05.550 --> 00:37:09.010 align:middle line:84% You're fired, that kind of thing-- or lingering wine 00:37:09.010 --> 00:37:14.050 align:middle line:84% lunches or this mistake-- by the way, 00:37:14.050 --> 00:37:17.090 align:middle line:84% I forgot to say at the beginning, every mistake I 00:37:17.090 --> 00:37:19.290 align:middle line:84% talk about here, I have made every single one 00:37:19.290 --> 00:37:20.350 align:middle line:90% of these mistakes. 00:37:20.350 --> 00:37:23.890 align:middle line:84% So I am talking from personal experience. 00:37:23.890 --> 00:37:27.130 align:middle line:84% This one is very personal to me-- checking off 00:37:27.130 --> 00:37:30.450 align:middle line:84% to-do list instead of strategic contemplation. 00:37:30.450 --> 00:37:36.090 align:middle line:84% I generate so much personal satisfaction 00:37:36.090 --> 00:37:38.230 align:middle line:84% from checking things off to-do list. 00:37:38.230 --> 00:37:45.130 align:middle line:84% And that is just not how you should really spend your time. 00:37:45.130 --> 00:37:51.250 align:middle line:84% What you want to do is have a healthy culture, a strong team. 00:37:51.250 --> 00:37:53.310 align:middle line:84% These are critical to your success. 00:37:53.310 --> 00:37:57.830 align:middle line:84% If you ask VCs when they invest, what's the number one factor, 00:37:57.830 --> 00:37:59.130 align:middle line:90% it's about the team. 00:37:59.130 --> 00:38:01.810 align:middle line:84% And the team is only going to be effective 00:38:01.810 --> 00:38:04.730 align:middle line:84% if it's got a healthy culture supporting it. 00:38:04.730 --> 00:38:05.950 align:middle line:90% So you want to focus. 00:38:05.950 --> 00:38:07.490 align:middle line:90% You can't do everything. 00:38:07.490 --> 00:38:12.330 align:middle line:84% As an entrepreneur, you have 1,000 things on your to-do list, 00:38:12.330 --> 00:38:14.810 align:middle line:90% and you need to prioritize. 00:38:14.810 --> 00:38:18.130 align:middle line:84% Every day, you need to reprioritize because things 00:38:18.130 --> 00:38:19.610 align:middle line:90% are going to move around. 00:38:19.610 --> 00:38:22.110 align:middle line:84% And you may only get one thing done on that list. 00:38:22.110 --> 00:38:24.410 align:middle line:84% But if that's the most important thing, 00:38:24.410 --> 00:38:26.650 align:middle line:84% then you need to do that number-1 thing. 00:38:26.650 --> 00:38:29.450 align:middle line:84% And don't do number 17 because that's easier 00:38:29.450 --> 00:38:31.510 align:middle line:90% and that's faster to get done. 00:38:31.510 --> 00:38:34.910 align:middle line:84% Start with number 1, the most important thing on the list. 00:38:34.910 --> 00:38:38.210 align:middle line:90% 00:38:38.210 --> 00:38:40.890 align:middle line:84% At the end of the day, all that matters 00:38:40.890 --> 00:38:43.450 align:middle line:90% is results, not face time. 00:38:43.450 --> 00:38:45.870 align:middle line:84% Time to market is absolutely critical. 00:38:45.870 --> 00:38:48.890 align:middle line:84% So there needs to be a sense of urgency in the company 00:38:48.890 --> 00:38:51.430 align:middle line:90% without this frenetic chaos. 00:38:51.430 --> 00:38:54.610 align:middle line:90% 00:38:54.610 --> 00:38:56.680 align:middle line:90% Focus on strategic decisions. 00:38:56.680 --> 00:39:02.460 align:middle line:84% So these are things like, what business do you want to go into? 00:39:02.460 --> 00:39:03.880 align:middle line:90% Who should you hire? 00:39:03.880 --> 00:39:06.180 align:middle line:90% Who's on your team? 00:39:06.180 --> 00:39:07.860 align:middle line:90% What are you going to build? 00:39:07.860 --> 00:39:09.660 align:middle line:90% How are you going to price it? 00:39:09.660 --> 00:39:11.960 align:middle line:84% And then when you get new information, 00:39:11.960 --> 00:39:13.640 align:middle line:90% remake those decisions. 00:39:13.640 --> 00:39:16.180 align:middle line:84% This is how you should be spending your time, not 00:39:16.180 --> 00:39:20.020 align:middle line:84% going to number 17 on your to-do list. 00:39:20.020 --> 00:39:23.840 align:middle line:84% But then there are going to be a lot of non-strategic decisions. 00:39:23.840 --> 00:39:27.460 align:middle line:84% And again, this is a mistake I made often. 00:39:27.460 --> 00:39:29.880 align:middle line:84% Non-strategic decisions-- just delegate them. 00:39:29.880 --> 00:39:31.680 align:middle line:84% Let somebody else make these decisions. 00:39:31.680 --> 00:39:33.220 align:middle line:90% Who gets which office? 00:39:33.220 --> 00:39:35.300 align:middle line:90% What furniture goes where? 00:39:35.300 --> 00:39:37.460 align:middle line:84% What accounting software should you use? 00:39:37.460 --> 00:39:39.240 align:middle line:84% How many conference rooms should you have? 00:39:39.240 --> 00:39:40.177 align:middle line:90% Things like this. 00:39:40.177 --> 00:39:41.760 align:middle line:84% Other people can make those decisions. 00:39:41.760 --> 00:39:44.620 align:middle line:90% Don't waste your time on it. 00:39:44.620 --> 00:39:48.520 align:middle line:84% Strategic decisions ultimately determined our future. 00:39:48.520 --> 00:39:51.100 align:middle line:90% So no venture capital-- 00:39:51.100 --> 00:39:52.800 align:middle line:84% now, that wasn't really our decision. 00:39:52.800 --> 00:39:55.420 align:middle line:84% That was because nobody wanted to invest. 00:39:55.420 --> 00:39:59.020 align:middle line:84% But at the end of the day, it had very big strategic impact. 00:39:59.020 --> 00:40:03.100 align:middle line:84% Because we didn't have venture capital, we had to bootstrap. 00:40:03.100 --> 00:40:06.100 align:middle line:84% And so we had to reach profitability quickly. 00:40:06.100 --> 00:40:10.180 align:middle line:84% And that actually was very helpful to us in the long run 00:40:10.180 --> 00:40:11.860 align:middle line:84% because at the end of the day, we 00:40:11.860 --> 00:40:15.820 align:middle line:84% were able to build a $30 million business using only $2.5 million 00:40:15.820 --> 00:40:17.060 align:middle line:90% of capital. 00:40:17.060 --> 00:40:23.060 align:middle line:84% And so it ended up being a very positive thing for us. 00:40:23.060 --> 00:40:26.540 align:middle line:84% It gave us a focus on profitability, 00:40:26.540 --> 00:40:30.420 align:middle line:84% on getting to revenues quickly and then profits quickly. 00:40:30.420 --> 00:40:33.140 align:middle line:90% And then product pricing-- 00:40:33.140 --> 00:40:38.520 align:middle line:84% it turned out that our product, as with many hardware products, 00:40:38.520 --> 00:40:42.060 align:middle line:84% was much more expensive to produce than we anticipated. 00:40:42.060 --> 00:40:44.740 align:middle line:84% It was also much more expensive to sell and market 00:40:44.740 --> 00:40:45.420 align:middle line:90% than we thought. 00:40:45.420 --> 00:40:48.340 align:middle line:84% Because it was so innovative, educating the market 00:40:48.340 --> 00:40:49.660 align:middle line:90% took about a year. 00:40:49.660 --> 00:40:52.460 align:middle line:84% So in other words, it took about a year 00:40:52.460 --> 00:40:55.900 align:middle line:84% from when we would introduce our product to a customer 00:40:55.900 --> 00:40:57.380 align:middle line:90% to when they would buy it. 00:40:57.380 --> 00:41:02.340 align:middle line:84% Over time, that shortened, but that's a long time. 00:41:02.340 --> 00:41:07.900 align:middle line:84% And obviously, as we got new information, 00:41:07.900 --> 00:41:09.800 align:middle line:90% we had to remake our decisions. 00:41:09.800 --> 00:41:11.920 align:middle line:84% So I want to give you an example of this. 00:41:11.920 --> 00:41:16.900 align:middle line:84% And our 3D printing market was ripe for disruption. 00:41:16.900 --> 00:41:21.700 align:middle line:84% So at the time that we founded Z Corporation, 00:41:21.700 --> 00:41:23.200 align:middle line:90% there were high-end machines. 00:41:23.200 --> 00:41:25.800 align:middle line:84% They were actually called rapid prototyping machines. 00:41:25.800 --> 00:41:31.100 align:middle line:84% And they sold for $100,000 to over $1 million. 00:41:31.100 --> 00:41:33.900 align:middle line:84% And we said, we're going to come out with something 00:41:33.900 --> 00:41:35.240 align:middle line:90% that's much less expensive. 00:41:35.240 --> 00:41:39.020 align:middle line:84% We're going to sell it for $20,000. 00:41:39.020 --> 00:41:41.380 align:middle line:84% And instead of going after higher-- 00:41:41.380 --> 00:41:44.380 align:middle line:84% because all these equipment manufacturers 00:41:44.380 --> 00:41:47.040 align:middle line:84% were going after higher and higher accuracy. 00:41:47.040 --> 00:41:49.660 align:middle line:84% They were becoming more and more expensive, more and more 00:41:49.660 --> 00:41:52.110 align:middle line:90% accurate, nicer-quality parts. 00:41:52.110 --> 00:41:54.130 align:middle line:84% But they were very difficult to use. 00:41:54.130 --> 00:41:57.150 align:middle line:84% They required a special lab environment. 00:41:57.150 --> 00:42:00.710 align:middle line:84% And so we said, there's a hole in the market. 00:42:00.710 --> 00:42:03.550 align:middle line:84% And one of the books I highly recommend 00:42:03.550 --> 00:42:06.070 align:middle line:90% is Innovator's Dilemma. 00:42:06.070 --> 00:42:07.930 align:middle line:90% And it's a terrific book. 00:42:07.930 --> 00:42:09.950 align:middle line:84% And that's basically what we did. 00:42:09.950 --> 00:42:13.670 align:middle line:84% We came in the very low end of the market 00:42:13.670 --> 00:42:16.910 align:middle line:84% where nobody was really addressing the needs 00:42:16.910 --> 00:42:18.790 align:middle line:90% of that part of the market. 00:42:18.790 --> 00:42:21.990 align:middle line:84% And we said, at the early stage of the design cycle, 00:42:21.990 --> 00:42:25.270 align:middle line:84% we're going to make 3D-printed models very quickly 00:42:25.270 --> 00:42:31.470 align:middle line:84% and inexpensively in an office environment for equipment price 00:42:31.470 --> 00:42:32.970 align:middle line:90% of $20,000. 00:42:32.970 --> 00:42:35.270 align:middle line:90% So that was our vision. 00:42:35.270 --> 00:42:37.670 align:middle line:84% It was going to be easy to use, and it 00:42:37.670 --> 00:42:40.370 align:middle line:84% was going to take us two years of development. 00:42:40.370 --> 00:42:41.810 align:middle line:90% But we had a plan. 00:42:41.810 --> 00:42:43.510 align:middle line:90% We had a vision. 00:42:43.510 --> 00:42:46.350 align:middle line:84% Then one year in-- so we still hadn't 00:42:46.350 --> 00:42:49.470 align:middle line:84% released the product-- we went to a trade 00:42:49.470 --> 00:42:52.430 align:middle line:90% show that almost killed us. 00:42:52.430 --> 00:42:56.110 align:middle line:84% The two incumbents, the two large public companies 00:42:56.110 --> 00:43:00.190 align:middle line:84% in our space, announced that they were making 00:43:00.190 --> 00:43:02.170 align:middle line:90% office-compatible 3D printers. 00:43:02.170 --> 00:43:06.030 align:middle line:84% They were going to sell them at $60,000. 00:43:06.030 --> 00:43:12.030 align:middle line:84% And so we went to the trade show and interviewed the sales guys 00:43:12.030 --> 00:43:12.530 align:middle line:90% there. 00:43:12.530 --> 00:43:14.290 align:middle line:90% And this is something to note. 00:43:14.290 --> 00:43:17.490 align:middle line:90% We never lied about who we were. 00:43:17.490 --> 00:43:19.310 align:middle line:90% We were very straightforward. 00:43:19.310 --> 00:43:21.450 align:middle line:90% Sales guys love to talk. 00:43:21.450 --> 00:43:23.070 align:middle line:90% They will tell you everything. 00:43:23.070 --> 00:43:24.810 align:middle line:90% Ask a million questions. 00:43:24.810 --> 00:43:26.430 align:middle line:84% They will tell you all the answers. 00:43:26.430 --> 00:43:31.350 align:middle line:84% And we noticed a few things, that they had their sample parts 00:43:31.350 --> 00:43:33.070 align:middle line:90% under glass. 00:43:33.070 --> 00:43:36.110 align:middle line:84% So they would have three precious sample parts 00:43:36.110 --> 00:43:37.430 align:middle line:90% under glass. 00:43:37.430 --> 00:43:39.970 align:middle line:90% And we said, why is that? 00:43:39.970 --> 00:43:42.870 align:middle line:84% Well, they took a long time to produce. 00:43:42.870 --> 00:43:45.090 align:middle line:84% And we thought that was really interesting. 00:43:45.090 --> 00:43:47.110 align:middle line:84% And we asked, how long did it take to produce? 00:43:47.110 --> 00:43:50.350 align:middle line:84% Well, what we learned was that our technology 00:43:50.350 --> 00:43:54.270 align:middle line:84% was 10 times faster than their technologies-- 00:43:54.270 --> 00:43:56.123 align:middle line:90% over 10 times faster. 00:43:56.123 --> 00:43:57.790 align:middle line:84% So that's the difference between getting 00:43:57.790 --> 00:44:00.430 align:middle line:84% a part like this in 20 minutes or waiting 00:44:00.430 --> 00:44:01.930 align:middle line:90% till tomorrow to get it. 00:44:01.930 --> 00:44:04.470 align:middle line:84% So you can imagine if you're a design engineer designing 00:44:04.470 --> 00:44:07.370 align:middle line:84% a product, you don't want to wait till tomorrow. 00:44:07.370 --> 00:44:09.090 align:middle line:90% You want to see it in your hand. 00:44:09.090 --> 00:44:12.410 align:middle line:84% And you don't care that our parts are kind of crappy. 00:44:12.410 --> 00:44:14.870 align:middle line:84% Our parts had poor surface finish. 00:44:14.870 --> 00:44:16.290 align:middle line:90% Our parts were weak. 00:44:16.290 --> 00:44:19.450 align:middle line:90% They were not great parts. 00:44:19.450 --> 00:44:21.550 align:middle line:84% They were not made out of plastic. 00:44:21.550 --> 00:44:24.750 align:middle line:84% But you would have something in your hand 00:44:24.750 --> 00:44:26.610 align:middle line:84% as opposed to seeing it on the screen, 00:44:26.610 --> 00:44:28.110 align:middle line:90% or waiting till tomorrow. 00:44:28.110 --> 00:44:31.270 align:middle line:84% And that really resonated with customers. 00:44:31.270 --> 00:44:35.250 align:middle line:84% And that's where our chairman came. 00:44:35.250 --> 00:44:36.670 align:middle line:84% We had an emergency board meeting 00:44:36.670 --> 00:44:39.990 align:middle line:84% because we were talking about perhaps closing 00:44:39.990 --> 00:44:43.790 align:middle line:84% down the business if we didn't get good information 00:44:43.790 --> 00:44:45.190 align:middle line:90% from this trade show. 00:44:45.190 --> 00:44:49.760 align:middle line:84% But based on the fact that we were over 10 times faster, 00:44:49.760 --> 00:44:55.400 align:middle line:84% despite having some other shortcomings on our parts, 00:44:55.400 --> 00:44:59.120 align:middle line:84% our chairman said, why don't we price it at $60,000? 00:44:59.120 --> 00:45:04.320 align:middle line:84% Instead of $20,000, Let's price it the same as the competition, 00:45:04.320 --> 00:45:06.980 align:middle line:84% and we'll see where we go from there. 00:45:06.980 --> 00:45:11.400 align:middle line:84% Of course, our team was really upset because they said, 00:45:11.400 --> 00:45:14.240 align:middle line:84% we've been telling everybody we're going to sell it 00:45:14.240 --> 00:45:15.820 align:middle line:90% for $20,000. 00:45:15.820 --> 00:45:18.260 align:middle line:84% We can't sell it now for $60,000. 00:45:18.260 --> 00:45:20.320 align:middle line:90% Well, no, yes, we can. 00:45:20.320 --> 00:45:22.720 align:middle line:90% We hadn't released it yet. 00:45:22.720 --> 00:45:24.540 align:middle line:84% And you can always lower the price. 00:45:24.540 --> 00:45:25.660 align:middle line:90% You can't raise the price. 00:45:25.660 --> 00:45:27.400 align:middle line:90% So let's just try it out. 00:45:27.400 --> 00:45:31.000 align:middle line:84% And if nobody wants it, we can just lower the price. 00:45:31.000 --> 00:45:32.880 align:middle line:90% So we decided to try it out. 00:45:32.880 --> 00:45:38.440 align:middle line:84% It turns out, in the end, that $60,000 is a sweet spot 00:45:38.440 --> 00:45:39.220 align:middle line:90% in the market. 00:45:39.220 --> 00:45:41.900 align:middle line:84% It's a great place to have a product. 00:45:41.900 --> 00:45:44.560 align:middle line:84% And we had a product in that price point 00:45:44.560 --> 00:45:47.600 align:middle line:90% for many, many, many years. 00:45:47.600 --> 00:45:50.200 align:middle line:84% And it turns out, it saved our company 00:45:50.200 --> 00:45:54.000 align:middle line:84% because it was so much more expensive to sell the product 00:45:54.000 --> 00:45:59.080 align:middle line:84% and to market the product than we expected that that ultimately 00:45:59.080 --> 00:46:01.000 align:middle line:90% saved our company. 00:46:01.000 --> 00:46:04.440 align:middle line:84% So product differentiation is critical. 00:46:04.440 --> 00:46:07.600 align:middle line:84% It needs to be something that the customer really cares about. 00:46:07.600 --> 00:46:09.620 align:middle line:84% But you don't need to be better at everything. 00:46:09.620 --> 00:46:11.640 align:middle line:84% You just need to be better at that one thing 00:46:11.640 --> 00:46:13.280 align:middle line:90% that they care about. 00:46:13.280 --> 00:46:15.680 align:middle line:90% So I just want to pause here. 00:46:15.680 --> 00:46:19.460 align:middle line:84% Does anyone have any questions or any feedback? 00:46:19.460 --> 00:46:19.960 align:middle line:90% Yeah? 00:46:19.960 --> 00:46:25.570 align:middle line:90% 00:46:25.570 --> 00:46:27.480 align:middle line:90% AUDIENCE: Thank you for sharing. 00:46:27.480 --> 00:46:28.780 align:middle line:90% I actually have a question. 00:46:28.780 --> 00:46:31.960 align:middle line:84% So how did you validate the market 00:46:31.960 --> 00:46:36.046 align:middle line:84% before you have to advocate that? 00:46:36.046 --> 00:46:38.720 align:middle line:90% Do you get where I'm getting at? 00:46:38.720 --> 00:46:40.360 align:middle line:90% MARINA HATSOPOULOS: Yeah. 00:46:40.360 --> 00:46:43.340 align:middle line:84% So I took sample parts to the first trade show-- 00:46:43.340 --> 00:46:44.680 align:middle line:90% we didn't have a booth-- 00:46:44.680 --> 00:46:46.380 align:middle line:90% and I showed it to customers. 00:46:46.380 --> 00:46:49.480 align:middle line:84% So I just walked around and I said, here's a sample part. 00:46:49.480 --> 00:46:50.980 align:middle line:90% What do you think about it? 00:46:50.980 --> 00:46:54.280 align:middle line:90% And I got feedback. 00:46:54.280 --> 00:46:57.640 align:middle line:84% Interestingly, most of the feedback was pretty negative. 00:46:57.640 --> 00:47:00.140 align:middle line:84% So they said, your parts are really crappy. 00:47:00.140 --> 00:47:02.480 align:middle line:90% And I said, yeah, OK, they are. 00:47:02.480 --> 00:47:05.360 align:middle line:84% But you can have this in 20 minutes instead 00:47:05.360 --> 00:47:07.200 align:middle line:90% of waiting till tomorrow. 00:47:07.200 --> 00:47:12.920 align:middle line:84% And they were like, hmm, OK, maybe, interestingly. 00:47:12.920 --> 00:47:16.120 align:middle line:84% And I don't know where I land on this. 00:47:16.120 --> 00:47:19.020 align:middle line:84% As an entrepreneur, you need to listen to the market, 00:47:19.020 --> 00:47:20.400 align:middle line:90% definitely. 00:47:20.400 --> 00:47:24.820 align:middle line:84% But you also need to stay true to your vision as well. 00:47:24.820 --> 00:47:30.400 align:middle line:84% And if you listen too much, sometimes the customer 00:47:30.400 --> 00:47:33.240 align:middle line:84% can't really see the future so well. 00:47:33.240 --> 00:47:35.940 align:middle line:90% And they can't visualize. 00:47:35.940 --> 00:47:40.200 align:middle line:84% So for example, what we found with customers is we would 3D 00:47:40.200 --> 00:47:42.330 align:middle line:90% print their sample part. 00:47:42.330 --> 00:47:43.830 align:middle line:84% So we'd say, what are you designing? 00:47:43.830 --> 00:47:46.050 align:middle line:90% And they'd say, a new pump. 00:47:46.050 --> 00:47:48.690 align:middle line:84% And so we'd say, OK, send us your design, 00:47:48.690 --> 00:47:50.970 align:middle line:90% and we'll 3D print your pump. 00:47:50.970 --> 00:47:55.050 align:middle line:84% And it was only when they saw their own design 00:47:55.050 --> 00:47:58.270 align:middle line:84% in a physical form that it resonated with them. 00:47:58.270 --> 00:48:01.570 align:middle line:84% And they were like, oh, wow, this is so cool. 00:48:01.570 --> 00:48:04.490 align:middle line:84% And then sometimes they would say, 00:48:04.490 --> 00:48:08.650 align:middle line:84% your 3D printer is flawed because this wall is too thin, 00:48:08.650 --> 00:48:10.610 align:middle line:84% and we could never manufacture it. 00:48:10.610 --> 00:48:13.490 align:middle line:84% And we'd say, well, go check your CAD design. 00:48:13.490 --> 00:48:16.510 align:middle line:84% Our 3D printer is only making what's in your CAD design. 00:48:16.510 --> 00:48:21.050 align:middle line:84% And so they would see things that they hadn't seen before. 00:48:21.050 --> 00:48:24.550 align:middle line:84% But in answer to your question, it's an iterative process. 00:48:24.550 --> 00:48:28.050 align:middle line:84% So you build a very crude prototype. 00:48:28.050 --> 00:48:29.370 align:middle line:90% You get some feedback. 00:48:29.370 --> 00:48:32.370 align:middle line:84% Based on that feedback, that guides 00:48:32.370 --> 00:48:34.210 align:middle line:90% your technical development. 00:48:34.210 --> 00:48:35.890 align:middle line:84% And so it's an iterative process, 00:48:35.890 --> 00:48:37.637 align:middle line:90% and it gets better and better. 00:48:37.637 --> 00:48:38.470 align:middle line:90% AUDIENCE: Thank you. 00:48:38.470 --> 00:48:40.770 align:middle line:84% So would you say-- in a word, would you 00:48:40.770 --> 00:48:47.290 align:middle line:84% say you have a vision for it before you get any feedback 00:48:47.290 --> 00:48:48.330 align:middle line:90% of what [INAUDIBLE]? 00:48:48.330 --> 00:48:49.690 align:middle line:90% MARINA HATSOPOULOS: Exactly. 00:48:49.690 --> 00:48:53.930 align:middle line:84% AUDIENCE: And then you get some validation that reinforces that. 00:48:53.930 --> 00:48:55.370 align:middle line:90% MARINA HATSOPOULOS: Exactly. 00:48:55.370 --> 00:48:55.870 align:middle line:90% Yeah. 00:48:55.870 --> 00:49:00.810 align:middle line:84% So for example, one of the two markets that we had identified, 00:49:00.810 --> 00:49:03.130 align:middle line:84% Tim had identified industrial design, 00:49:03.130 --> 00:49:05.350 align:middle line:84% and I had identified architecture. 00:49:05.350 --> 00:49:07.370 align:middle line:84% And those were two of the big markets we 00:49:07.370 --> 00:49:09.010 align:middle line:90% were going to go into to start. 00:49:09.010 --> 00:49:12.090 align:middle line:84% What we learned was that in those days, 00:49:12.090 --> 00:49:15.590 align:middle line:84% in the early '90s, industrial design and architectural firms, 00:49:15.590 --> 00:49:18.770 align:middle line:84% number one, were small firms; number two, 00:49:18.770 --> 00:49:21.830 align:middle line:84% were designing in 2D CAD, not in 3D CAD. 00:49:21.830 --> 00:49:25.450 align:middle line:84% And without the 3D CAD data, you can't use a 3D printer. 00:49:25.450 --> 00:49:29.010 align:middle line:84% And they all cared about surface finish. 00:49:29.010 --> 00:49:31.970 align:middle line:84% And our parts had pretty crappy surface finish. 00:49:31.970 --> 00:49:34.170 align:middle line:84% So what we learned were that those were not 00:49:34.170 --> 00:49:35.590 align:middle line:90% good markets for us. 00:49:35.590 --> 00:49:39.050 align:middle line:84% And we migrated to design engineering 00:49:39.050 --> 00:49:42.650 align:middle line:90% across multiple verticals. 00:49:42.650 --> 00:49:45.850 align:middle line:84% Yeah, there's another question there. 00:49:45.850 --> 00:49:47.020 align:middle line:90% AUDIENCE: Hi. 00:49:47.020 --> 00:49:50.050 align:middle line:84% I just wanted to ask you, how would you define yourselves 00:49:50.050 --> 00:49:53.730 align:middle line:84% in a market like software, artificial intelligence, 00:49:53.730 --> 00:49:57.810 align:middle line:84% where the cost of prototyping is very low? 00:49:57.810 --> 00:50:00.170 align:middle line:90% Software contains models. 00:50:00.170 --> 00:50:03.690 align:middle line:84% There is a lot of open-source models and foundational models. 00:50:03.690 --> 00:50:06.830 align:middle line:84% And then when you truly create something new, 00:50:06.830 --> 00:50:09.930 align:middle line:84% it feels like it's just combining the technologies 00:50:09.930 --> 00:50:11.010 align:middle line:90% together. 00:50:11.010 --> 00:50:12.508 align:middle line:90% So do you have-- 00:50:12.508 --> 00:50:13.050 align:middle line:90% I don't know. 00:50:13.050 --> 00:50:17.090 align:middle line:84% One example of that is that you have ChatGPT against DeepSeek 00:50:17.090 --> 00:50:20.930 align:middle line:90% that's in a couple days. 00:50:20.930 --> 00:50:24.130 align:middle line:84% Essentially, DeepSeek is combining reinforcement 00:50:24.130 --> 00:50:27.610 align:middle line:90% learning with language models. 00:50:27.610 --> 00:50:31.070 align:middle line:84% And ChatGPT is just learning out of users. 00:50:31.070 --> 00:50:33.330 align:middle line:84% So the difference between those models 00:50:33.330 --> 00:50:35.820 align:middle line:84% is that you just have a combination 00:50:35.820 --> 00:50:38.860 align:middle line:90% of two different parts. 00:50:38.860 --> 00:50:42.020 align:middle line:84% And then my question is, if you're ChatGPT, 00:50:42.020 --> 00:50:44.300 align:middle line:84% you're trying to do something like ChatGPT, 00:50:44.300 --> 00:50:48.200 align:middle line:84% but you're a startup, then you have Google, you have Amazon, 00:50:48.200 --> 00:50:50.500 align:middle line:84% you have Facebook, all of these companies 00:50:50.500 --> 00:50:53.300 align:middle line:90% with immense resources. 00:50:53.300 --> 00:50:55.780 align:middle line:90% And new technology is like-- 00:50:55.780 --> 00:51:01.380 align:middle line:84% it could be modified and easily create a similar. 00:51:01.380 --> 00:51:02.940 align:middle line:90% So how do you defend that? 00:51:02.940 --> 00:51:05.820 align:middle line:84% MARINA HATSOPOULOS: I don't have the answer to that. 00:51:05.820 --> 00:51:10.300 align:middle line:84% My experience is in hardware, where you can patent it. 00:51:10.300 --> 00:51:13.140 align:middle line:90% The whole open-source thing-- 00:51:13.140 --> 00:51:16.560 align:middle line:84% honestly, I just don't really understand that, 00:51:16.560 --> 00:51:18.320 align:middle line:84% so I'm just not the person to ask on that. 00:51:18.320 --> 00:51:20.500 align:middle line:90% So I apologize. 00:51:20.500 --> 00:51:22.235 align:middle line:90% Yeah? 00:51:22.235 --> 00:51:23.860 align:middle line:84% AUDIENCE: It could be a weird question. 00:51:23.860 --> 00:51:26.720 align:middle line:84% Everybody says team is very important. 00:51:26.720 --> 00:51:29.000 align:middle line:84% I mean, yesterday a venture capitalist. 00:51:29.000 --> 00:51:31.940 align:middle line:90% 00:51:31.940 --> 00:51:33.020 align:middle line:90% Yeah. 00:51:33.020 --> 00:51:36.520 align:middle line:84% All investors say the team is important. 00:51:36.520 --> 00:51:39.300 align:middle line:84% Well, I'm a very bad team player. 00:51:39.300 --> 00:51:41.420 align:middle line:90% MARINA HATSOPOULOS: [LAUGHS] 00:51:41.420 --> 00:51:47.220 align:middle line:84% AUDIENCE: And when you said, oh, I found two engineers 00:51:47.220 --> 00:51:49.760 align:middle line:90% to manage, oh, that's good. 00:51:49.760 --> 00:51:52.120 align:middle line:84% I started that, sparked something. 00:51:52.120 --> 00:51:55.100 align:middle line:84% But I don't have two engineers to manage 00:51:55.100 --> 00:52:00.180 align:middle line:84% where I had seven or more when working in consulting 00:52:00.180 --> 00:52:01.580 align:middle line:90% and multinationals. 00:52:01.580 --> 00:52:06.260 align:middle line:84% I mean, I get things done, but very bad team player. 00:52:06.260 --> 00:52:08.820 align:middle line:90% So how do I fix that? 00:52:08.820 --> 00:52:11.860 align:middle line:90% 00:52:11.860 --> 00:52:14.700 align:middle line:84% MARINA HATSOPOULOS: Wow, that's a tough one. 00:52:14.700 --> 00:52:21.168 align:middle line:84% I mean, your self-awareness is a good start. 00:52:21.168 --> 00:52:23.553 align:middle line:90% [LAUGHTER] 00:52:23.553 --> 00:52:26.420 align:middle line:90% 00:52:26.420 --> 00:52:28.700 align:middle line:84% So, I mean, you have to find the right people 00:52:28.700 --> 00:52:35.680 align:middle line:84% that you want to play with and who understand you, 00:52:35.680 --> 00:52:38.900 align:middle line:84% and you understand them, and you respect them. 00:52:38.900 --> 00:52:43.420 align:middle line:84% I mean, I think one thing in our team that worked really well 00:52:43.420 --> 00:52:46.780 align:middle line:84% was there was real mutual respect. 00:52:46.780 --> 00:52:52.140 align:middle line:84% I looked at the stuff that Jim and Tim were doing 00:52:52.140 --> 00:52:54.800 align:middle line:90% and, how did they do that? 00:52:54.800 --> 00:52:56.440 align:middle line:90% That was just remarkable. 00:52:56.440 --> 00:53:02.340 align:middle line:84% And so appreciating what each person is bringing 00:53:02.340 --> 00:53:06.980 align:middle line:84% to the table and the fact that thank God for them because, 00:53:06.980 --> 00:53:09.080 align:middle line:90% otherwise, you'd have to do it. 00:53:09.080 --> 00:53:15.660 align:middle line:84% And so maybe some maybe appreciating what each member 00:53:15.660 --> 00:53:18.500 align:middle line:90% is bringing to the table. 00:53:18.500 --> 00:53:19.680 align:middle line:90% I don't know if that helps. 00:53:19.680 --> 00:53:22.232 align:middle line:90% 00:53:22.232 --> 00:53:23.440 align:middle line:90% Was there something up there? 00:53:23.440 --> 00:53:24.780 align:middle line:90% Yeah? 00:53:24.780 --> 00:53:28.460 align:middle line:84% AUDIENCE: So my question is about ignoring-- 00:53:28.460 --> 00:53:32.350 align:middle line:84% you said you have to ignore some input from the customer. 00:53:32.350 --> 00:53:38.230 align:middle line:84% And I've been in a position where I've had to ignore advice. 00:53:38.230 --> 00:53:42.950 align:middle line:84% So would you say that you ignored that customer input 00:53:42.950 --> 00:53:46.830 align:middle line:84% because they didn't actually understand what you are saying, 00:53:46.830 --> 00:53:50.330 align:middle line:84% and you have to go all the way and deliver a model? 00:53:50.330 --> 00:53:52.510 align:middle line:84% And finally, then they understood. 00:53:52.510 --> 00:53:55.850 align:middle line:84% Do you think this is a good rule, that rule of thumb, 00:53:55.850 --> 00:53:59.150 align:middle line:84% where if they don't understand what I'm saying 00:53:59.150 --> 00:54:02.390 align:middle line:84% and they're giving me advice, maybe I can ignore it? 00:54:02.390 --> 00:54:04.870 align:middle line:84% MARINA HATSOPOULOS: It's really tricky. 00:54:04.870 --> 00:54:08.550 align:middle line:84% So I don't have an answer for that 00:54:08.550 --> 00:54:10.390 align:middle line:84% because I think entrepreneurship is 00:54:10.390 --> 00:54:13.178 align:middle line:84% this constant thing of listening and not 00:54:13.178 --> 00:54:15.470 align:middle line:84% listening because a lot of people are going to tell you 00:54:15.470 --> 00:54:17.230 align:middle line:90% it's a stupid idea. 00:54:17.230 --> 00:54:22.890 align:middle line:84% And the people who have been in the industry typically 00:54:22.890 --> 00:54:24.710 align:middle line:90% dismiss anything new. 00:54:24.710 --> 00:54:26.690 align:middle line:90% And oh, that's stupid. 00:54:26.690 --> 00:54:28.190 align:middle line:90% That's dumb, blah, blah, blah. 00:54:28.190 --> 00:54:32.250 align:middle line:84% And so I don't know how to tell you 00:54:32.250 --> 00:54:36.190 align:middle line:84% what's the magic as to when to listen and when not to listen. 00:54:36.190 --> 00:54:42.270 align:middle line:84% I think one thing I would say is that the closer you 00:54:42.270 --> 00:54:45.630 align:middle line:84% can get to having a customer using 00:54:45.630 --> 00:54:50.990 align:middle line:84% your actual finished product as it's intended to be used-- 00:54:50.990 --> 00:54:54.830 align:middle line:84% the closer you can get to that, the more useful the feedback. 00:54:54.830 --> 00:54:59.510 align:middle line:84% The further away you are from that and the more visionary 00:54:59.510 --> 00:55:04.350 align:middle line:84% it is and la-la-la, their feedback 00:55:04.350 --> 00:55:06.510 align:middle line:90% is a little less useful. 00:55:06.510 --> 00:55:11.690 align:middle line:84% And so that's why you want to get to-- when I said the MVP, 00:55:11.690 --> 00:55:13.390 align:middle line:84% you want to get to that as soon as you 00:55:13.390 --> 00:55:17.150 align:middle line:84% can because that's going to give you much more useful feedback 00:55:17.150 --> 00:55:20.637 align:middle line:90% than describing your idea. 00:55:20.637 --> 00:55:21.470 align:middle line:90% AUDIENCE: Thank you. 00:55:21.470 --> 00:55:22.512 align:middle line:90% MARINA HATSOPOULOS: Sure. 00:55:22.512 --> 00:55:24.830 align:middle line:90% 00:55:24.830 --> 00:55:29.370 align:middle line:84% AUDIENCE: Marina, I've seen discussions with customers. 00:55:29.370 --> 00:55:31.710 align:middle line:90% Actually, you should do that. 00:55:31.710 --> 00:55:34.750 align:middle line:84% I've seen situations, though, where people 00:55:34.750 --> 00:55:38.030 align:middle line:84% you're talking to are what I'll call power users. 00:55:38.030 --> 00:55:40.742 align:middle line:84% And I've gone down rat holes where 00:55:40.742 --> 00:55:43.450 align:middle line:84% they'll say, oh, if you could do this, oh yeah, we could do that. 00:55:43.450 --> 00:55:48.110 align:middle line:84% And then before you know it, you make a product for only 1%. 00:55:48.110 --> 00:55:49.670 align:middle line:90% Have you ever faced that? 00:55:49.670 --> 00:55:51.550 align:middle line:90% How do you deal with that? 00:55:51.550 --> 00:55:54.150 align:middle line:84% MARINA HATSOPOULOS: So actually, the large machine 00:55:54.150 --> 00:55:57.510 align:middle line:84% that I talked about, we built that because a lot 00:55:57.510 --> 00:55:59.930 align:middle line:84% of our customers were asking for it. 00:55:59.930 --> 00:56:04.350 align:middle line:84% And by a lot, I mean, like, a dozen of our customers. 00:56:04.350 --> 00:56:07.450 align:middle line:84% But if you only have 40 customers, 00:56:07.450 --> 00:56:10.550 align:middle line:84% a dozen seems pretty significant. 00:56:10.550 --> 00:56:14.630 align:middle line:84% And we built them, and we had a dozen customers. 00:56:14.630 --> 00:56:15.813 align:middle line:90% No, I'm exaggerating. 00:56:15.813 --> 00:56:16.730 align:middle line:90% We had more than that. 00:56:16.730 --> 00:56:21.130 align:middle line:84% But basically, there was not a huge market for it. 00:56:21.130 --> 00:56:24.670 align:middle line:84% It was this very limited market of power users 00:56:24.670 --> 00:56:26.520 align:middle line:90% who used it a lot. 00:56:26.520 --> 00:56:29.060 align:middle line:84% But there wasn't some big market for it. 00:56:29.060 --> 00:56:32.560 align:middle line:84% And the technical challenges turned out 00:56:32.560 --> 00:56:36.160 align:middle line:84% to be much greater than what we had anticipated. 00:56:36.160 --> 00:56:38.800 align:middle line:84% And so that whole project turned out 00:56:38.800 --> 00:56:50.000 align:middle line:84% to be a real derailing of our technology development. 00:56:50.000 --> 00:56:53.320 align:middle line:84% If you looked at our technology development path, which 00:56:53.320 --> 00:56:57.840 align:middle line:84% was to make the machine less expensive, easier to use, 00:56:57.840 --> 00:57:02.040 align:middle line:84% that one was just going in the opposite direction. 00:57:02.040 --> 00:57:06.120 align:middle line:84% And so I think you also always want 00:57:06.120 --> 00:57:09.980 align:middle line:84% to be cognizant of, where do you see this going in the long term? 00:57:09.980 --> 00:57:11.400 align:middle line:90% And is this on our path? 00:57:11.400 --> 00:57:13.340 align:middle line:90% Or is it off our path? 00:57:13.340 --> 00:57:16.720 align:middle line:90% 00:57:16.720 --> 00:57:19.360 align:middle line:84% AUDIENCE: How do you define deep tech? 00:57:19.360 --> 00:57:22.340 align:middle line:84% And then from an entrepreneurial perspective, 00:57:22.340 --> 00:57:25.480 align:middle line:84% do you recommend going out and seeking technology 00:57:25.480 --> 00:57:28.660 align:middle line:84% like how you did or have an idea, 00:57:28.660 --> 00:57:31.680 align:middle line:84% and trying to find the technology that solves that? 00:57:31.680 --> 00:57:34.960 align:middle line:84% MARINA HATSOPOULOS: Yeah, so great question. 00:57:34.960 --> 00:57:37.600 align:middle line:84% So deep tech, I define as something 00:57:37.600 --> 00:57:40.540 align:middle line:84% that is going to take a long time to develop. 00:57:40.540 --> 00:57:46.680 align:middle line:84% And so the core science is there. 00:57:46.680 --> 00:57:50.180 align:middle line:84% But it's going to take a lot of development to actually make it. 00:57:50.180 --> 00:57:53.860 align:middle line:84% And often, it's technology that has come out of research-- 00:57:53.860 --> 00:57:55.600 align:middle line:90% let's say, at a university. 00:57:55.600 --> 00:57:59.440 align:middle line:84% And so it's a solution looking for a problem as opposed 00:57:59.440 --> 00:58:01.420 align:middle line:84% to the second scenario you mentioned, 00:58:01.420 --> 00:58:04.040 align:middle line:84% which is a problem looking for a solution. 00:58:04.040 --> 00:58:08.715 align:middle line:84% And that's where you've got of dual paths 00:58:08.715 --> 00:58:10.340 align:middle line:84% where you're developing the technology, 00:58:10.340 --> 00:58:13.320 align:middle line:84% but you don't know quite what for. 00:58:13.320 --> 00:58:16.760 align:middle line:84% And so then you have to figure out who cares. 00:58:16.760 --> 00:58:18.880 align:middle line:84% What is the market we're trying to serve? 00:58:18.880 --> 00:58:21.920 align:middle line:84% And so then let's develop it along a path that 00:58:21.920 --> 00:58:24.860 align:middle line:84% makes sense for this problem that we're trying to solve. 00:58:24.860 --> 00:58:26.560 align:middle line:84% And so that's why the two have to be 00:58:26.560 --> 00:58:31.120 align:middle line:84% done in parallel iteratively because you don't know exactly 00:58:31.120 --> 00:58:33.400 align:middle line:84% what direction you're going until you know 00:58:33.400 --> 00:58:34.980 align:middle line:90% what market you're going after. 00:58:34.980 --> 00:58:37.680 align:middle line:90% 00:58:37.680 --> 00:58:39.020 align:middle line:90% Any other questions? 00:58:39.020 --> 00:58:44.920 align:middle line:90% 00:58:44.920 --> 00:58:45.700 align:middle line:90% How am I on time? 00:58:45.700 --> 00:58:46.200 align:middle line:90% OK. 00:58:46.200 --> 00:58:48.480 align:middle line:90% 00:58:48.480 --> 00:58:51.320 align:middle line:84% AUDIENCE: You mentioned that the name of the company 00:58:51.320 --> 00:58:53.360 align:middle line:90% is very important. 00:58:53.360 --> 00:58:56.400 align:middle line:84% And you mentioned a few things about it. 00:58:56.400 --> 00:59:00.360 align:middle line:84% I'm just curious to know the story behind how you came up 00:59:00.360 --> 00:59:01.963 align:middle line:90% with the Z part. 00:59:01.963 --> 00:59:03.380 align:middle line:84% MARINA HATSOPOULOS: With the name? 00:59:03.380 --> 00:59:04.280 align:middle line:90% AUDIENCE: The Z part. 00:59:04.280 --> 00:59:05.620 align:middle line:90% MARINA HATSOPOULOS: Oh, yeah. 00:59:05.620 --> 00:59:08.220 align:middle line:84% So it was because we're a 3D printing company, 00:59:08.220 --> 00:59:10.080 align:middle line:90% it's the z-axis-- 00:59:10.080 --> 00:59:14.360 align:middle line:90% so the third dimension. 00:59:14.360 --> 00:59:19.120 align:middle line:84% There were some really bad names we tried before that-- 00:59:19.120 --> 00:59:25.970 align:middle line:90% Shape Shooter, Speedy 3D. 00:59:25.970 --> 00:59:26.615 align:middle line:90% Yeah? 00:59:26.615 --> 00:59:27.490 align:middle line:90% AUDIENCE: Hi, Marina. 00:59:27.490 --> 00:59:28.750 align:middle line:90% Very good presentation. 00:59:28.750 --> 00:59:29.290 align:middle line:90% MARINA HATSOPOULOS: Thank you. 00:59:29.290 --> 00:59:31.915 align:middle line:84% AUDIENCE: It seems to me you had the benefit of actually having 00:59:31.915 --> 00:59:36.450 align:middle line:84% an operational prototype that did some things, at least 00:59:36.450 --> 00:59:40.050 align:middle line:90% to demonstrate the concept. 00:59:40.050 --> 00:59:42.930 align:middle line:84% What would you recommend if you were actually in a situation 00:59:42.930 --> 00:59:44.810 align:middle line:84% where you've actually got an idea 00:59:44.810 --> 00:59:48.570 align:middle line:84% and you've certainly got some technological basis 00:59:48.570 --> 00:59:51.550 align:middle line:84% for that idea, but we really have an operational prototype, 00:59:51.550 --> 00:59:56.690 align:middle line:84% and you're looking at possibly some significant investment 00:59:56.690 --> 00:59:59.350 align:middle line:90% just to get to that first stage? 00:59:59.350 --> 01:00:00.390 align:middle line:90% Any thoughts on that? 01:00:00.390 --> 01:00:03.050 align:middle line:90% 01:00:03.050 --> 01:00:05.850 align:middle line:84% MARINA HATSOPOULOS: I'm not sure if I understand the question. 01:00:05.850 --> 01:00:10.250 align:middle line:84% AUDIENCE: Hardware products-- so you had an operational prototype 01:00:10.250 --> 01:00:12.730 align:middle line:84% of some sort, what if you actually just 01:00:12.730 --> 01:00:19.190 align:middle line:84% have a concept of a product that is based in good science, 01:00:19.190 --> 01:00:21.190 align:middle line:84% but you haven't been able to prove it yet. 01:00:21.190 --> 01:00:23.125 align:middle line:84% Do you have any thoughts on that? 01:00:23.125 --> 01:00:25.250 align:middle line:84% MARINA HATSOPOULOS: Well, I think you build, first, 01:00:25.250 --> 01:00:27.730 align:middle line:90% the proof of principle-- 01:00:27.730 --> 01:00:29.850 align:middle line:84% so that ugly machine that I showed-- 01:00:29.850 --> 01:00:31.930 align:middle line:90% to de-risk the technology. 01:00:31.930 --> 01:00:35.850 align:middle line:84% And then you can build a crude prototype just 01:00:35.850 --> 01:00:40.730 align:middle line:84% to pull it all together as quickly 01:00:40.730 --> 01:00:43.750 align:middle line:90% as you can with low investment. 01:00:43.750 --> 01:00:47.250 align:middle line:84% But, I mean, hardware does take a lot of capital, 01:00:47.250 --> 01:00:50.450 align:middle line:90% and it also takes time. 01:00:50.450 --> 01:00:53.250 align:middle line:90% It always blew my mind. 01:00:53.250 --> 01:00:57.690 align:middle line:84% From when it's an idea to when it's actually 01:00:57.690 --> 01:00:59.870 align:middle line:90% a product is two years. 01:00:59.870 --> 01:01:05.050 align:middle line:90% And so you better kind of know-- 01:01:05.050 --> 01:01:07.550 align:middle line:84% yeah, better be going in the right direction. 01:01:07.550 --> 01:01:12.290 align:middle line:90% 01:01:12.290 --> 01:01:15.650 align:middle line:84% In this process, as I said, you're 01:01:15.650 --> 01:01:19.670 align:middle line:84% often making decisions with incomplete information. 01:01:19.670 --> 01:01:23.370 align:middle line:84% You feel like you're in this murky, muddy waters. 01:01:23.370 --> 01:01:26.610 align:middle line:84% You have too many decisions to make, too many directions, 01:01:26.610 --> 01:01:28.750 align:middle line:84% like, where to take the technology, 01:01:28.750 --> 01:01:33.090 align:middle line:84% where to take the product, which markets to pursue. 01:01:33.090 --> 01:01:34.890 align:middle line:84% And you're getting conflicting opinions 01:01:34.890 --> 01:01:37.650 align:middle line:84% because everyone has a different idea. 01:01:37.650 --> 01:01:40.930 align:middle line:84% And when you don't know what to do, 01:01:40.930 --> 01:01:43.810 align:middle line:84% the north star you always need to go to 01:01:43.810 --> 01:01:45.970 align:middle line:90% is your intellectual property. 01:01:45.970 --> 01:01:50.290 align:middle line:84% What is it that makes you special that you can protect? 01:01:50.290 --> 01:01:52.890 align:middle line:84% This is what you have your moat around. 01:01:52.890 --> 01:01:54.510 align:middle line:90% You have this monopoly. 01:01:54.510 --> 01:01:55.930 align:middle line:90% So go back to that. 01:01:55.930 --> 01:01:59.370 align:middle line:84% And so in our case, it was speed. 01:01:59.370 --> 01:02:03.330 align:middle line:84% So when we were thinking about what markets to pursue, 01:02:03.330 --> 01:02:06.410 align:middle line:84% architecture didn't make sense because our parts were never 01:02:06.410 --> 01:02:07.930 align:middle line:90% going to be beautiful. 01:02:07.930 --> 01:02:09.830 align:middle line:90% They were just going to be fast. 01:02:09.830 --> 01:02:12.650 align:middle line:84% So then we looked, OK, who cares about 01:02:12.650 --> 01:02:15.550 align:middle line:90% speed more than part quality? 01:02:15.550 --> 01:02:20.740 align:middle line:90% 01:02:20.740 --> 01:02:23.840 align:middle line:84% That really gives you the answers to your questions. 01:02:23.840 --> 01:02:28.580 align:middle line:84% And customers also help give answers to your questions. 01:02:28.580 --> 01:02:30.800 align:middle line:84% Another mistake is always staying positive. 01:02:30.800 --> 01:02:34.380 align:middle line:84% Now, this is a very entrepreneurial characteristic. 01:02:34.380 --> 01:02:35.920 align:middle line:90% Put bad news out of your head. 01:02:35.920 --> 01:02:39.740 align:middle line:84% Believe the engineers in terms of time and cost, 01:02:39.740 --> 01:02:41.160 align:middle line:90% regardless of history. 01:02:41.160 --> 01:02:42.600 align:middle line:90% This time will be different. 01:02:42.600 --> 01:02:44.500 align:middle line:90% No. 01:02:44.500 --> 01:02:46.600 align:middle line:84% Instead, learn from your failures. 01:02:46.600 --> 01:02:48.380 align:middle line:90% Do things differently. 01:02:48.380 --> 01:02:50.780 align:middle line:84% Assume the time and cost will be at least 01:02:50.780 --> 01:02:52.980 align:middle line:90% double what anyone says. 01:02:52.980 --> 01:02:54.560 align:middle line:90% It's a rocky road. 01:02:54.560 --> 01:02:56.400 align:middle line:84% You're going to make lots of mistakes. 01:02:56.400 --> 01:02:59.100 align:middle line:90% You're going to hit these bumps. 01:02:59.100 --> 01:03:01.860 align:middle line:84% But every time you get new information, every time there's 01:03:01.860 --> 01:03:07.580 align:middle line:84% a failure, reconsider your decisions and re-steer things 01:03:07.580 --> 01:03:10.740 align:middle line:90% based on that information. 01:03:10.740 --> 01:03:13.000 align:middle line:84% Another is to focus only on growth. 01:03:13.000 --> 01:03:15.080 align:middle line:84% Now, I said, you should focus on growth. 01:03:15.080 --> 01:03:16.360 align:middle line:90% Growth is a good thing. 01:03:16.360 --> 01:03:20.140 align:middle line:84% But don't assume the cash will be there when you need it. 01:03:20.140 --> 01:03:21.880 align:middle line:84% Sometimes people get into this mode. 01:03:21.880 --> 01:03:23.398 align:middle line:90% Who cares about profitability? 01:03:23.398 --> 01:03:24.440 align:middle line:90% We're just going to grow. 01:03:24.440 --> 01:03:26.220 align:middle line:90% Growth will bring an exit. 01:03:26.220 --> 01:03:29.420 align:middle line:90% That's not always the case. 01:03:29.420 --> 01:03:33.080 align:middle line:84% Companies go out of business because they run out of cash. 01:03:33.080 --> 01:03:34.280 align:middle line:90% It's as simple as that. 01:03:34.280 --> 01:03:37.800 align:middle line:84% So you always want to have your eye on your finances. 01:03:37.800 --> 01:03:39.220 align:middle line:90% Track your cash. 01:03:39.220 --> 01:03:41.060 align:middle line:84% Track the time and investment it's 01:03:41.060 --> 01:03:45.260 align:middle line:84% going to take to get to revenues and to get to profitability. 01:03:45.260 --> 01:03:48.320 align:middle line:84% A strong company will be an acquisition target, 01:03:48.320 --> 01:03:49.800 align:middle line:90% so don't worry about that. 01:03:49.800 --> 01:03:51.820 align:middle line:84% Just build a strong company, and the rest 01:03:51.820 --> 01:03:54.420 align:middle line:90% will take care of itself. 01:03:54.420 --> 01:03:57.580 align:middle line:84% Another is to put on a great show for investors. 01:03:57.580 --> 01:04:01.140 align:middle line:84% Use industry acronyms that nobody knows what they mean. 01:04:01.140 --> 01:04:02.880 align:middle line:90% Have complicated diagrams. 01:04:02.880 --> 01:04:05.300 align:middle line:84% Have entire paragraphs with teeny, tiny fonts 01:04:05.300 --> 01:04:06.860 align:middle line:90% that nobody can read. 01:04:06.860 --> 01:04:09.600 align:middle line:84% Have projections with revenue skyrocketing. 01:04:09.600 --> 01:04:11.980 align:middle line:90% Talk about exit in your pitch. 01:04:11.980 --> 01:04:14.590 align:middle line:84% Demand a demanded confidentiality agreement. 01:04:14.590 --> 01:04:17.250 align:middle line:84% Add AI, no matter what business you're in. 01:04:17.250 --> 01:04:18.230 align:middle line:90% No. 01:04:18.230 --> 01:04:21.230 align:middle line:90% Don't do any of these things. 01:04:21.230 --> 01:04:23.630 align:middle line:90% Instead, simplify your pitch. 01:04:23.630 --> 01:04:26.010 align:middle line:84% What is the problem you're trying to solve? 01:04:26.010 --> 01:04:30.810 align:middle line:84% You'd be amazed how many people send these pitches. 01:04:30.810 --> 01:04:33.270 align:middle line:84% And you're going through it, and you're hearing 01:04:33.270 --> 01:04:35.290 align:middle line:90% all about this technology. 01:04:35.290 --> 01:04:40.910 align:middle line:84% And they haven't told you what is the problem they're solving? 01:04:40.910 --> 01:04:42.490 align:middle line:90% What is the problem? 01:04:42.490 --> 01:04:44.030 align:middle line:90% What is your solution? 01:04:44.030 --> 01:04:45.750 align:middle line:90% Remove the acronyms. 01:04:45.750 --> 01:04:48.650 align:middle line:84% Remove the diagrams which don't add information. 01:04:48.650 --> 01:04:50.630 align:middle line:90% Limit the number of your words. 01:04:50.630 --> 01:04:53.550 align:middle line:84% Quantify the value proposition, and definitely 01:04:53.550 --> 01:04:55.350 align:middle line:84% practice your pitch in front of people who 01:04:55.350 --> 01:04:57.030 align:middle line:90% don't know anything about it. 01:04:57.030 --> 01:05:00.810 align:middle line:84% And have them repeat back to you what they understood 01:05:00.810 --> 01:05:02.910 align:middle line:84% because what you'll find is they have no idea what 01:05:02.910 --> 01:05:04.550 align:middle line:90% you're talking about. 01:05:04.550 --> 01:05:11.670 align:middle line:84% Try to complete the sentence, we make blank for blank to blank. 01:05:11.670 --> 01:05:18.590 align:middle line:84% So we make, what is the product, for blank, who is the customer, 01:05:18.590 --> 01:05:19.730 align:middle line:90% to blank. 01:05:19.730 --> 01:05:21.750 align:middle line:84% What is the problem you're solving? 01:05:21.750 --> 01:05:25.010 align:middle line:84% If you can identify who the customer is, 01:05:25.010 --> 01:05:28.350 align:middle line:84% what the product is, and what the problem is you're solving, 01:05:28.350 --> 01:05:31.390 align:middle line:84% people will understand your pitch. 01:05:31.390 --> 01:05:33.130 align:middle line:84% Then you can get into the detail. 01:05:33.130 --> 01:05:37.270 align:middle line:84% But that should be your starting point when you're doing a pitch. 01:05:37.270 --> 01:05:39.590 align:middle line:84% When you're looking at fundraising, 01:05:39.590 --> 01:05:43.330 align:middle line:84% consider all your options-- friends and family. 01:05:43.330 --> 01:05:45.290 align:middle line:84% That's typically where it starts. 01:05:45.290 --> 01:05:46.570 align:middle line:90% Then it goes to angels. 01:05:46.570 --> 01:05:50.910 align:middle line:84% Could be as little as $25,000 up to $1 million. 01:05:50.910 --> 01:05:55.190 align:middle line:84% Equity crowdfunding is sometimes an option. 01:05:55.190 --> 01:05:57.370 align:middle line:90% Do not forget government grants. 01:05:57.370 --> 01:05:58.910 align:middle line:84% I've worked with startups that have 01:05:58.910 --> 01:06:02.490 align:middle line:84% raised many millions of dollars from government grants. 01:06:02.490 --> 01:06:03.990 align:middle line:84% When you're doing deep tech, there's 01:06:03.990 --> 01:06:08.310 align:middle line:84% a lot of funding out there from the departments of the US 01:06:08.310 --> 01:06:09.110 align:middle line:90% government. 01:06:09.110 --> 01:06:12.710 align:middle line:84% And also, in Europe, the same holds true. 01:06:12.710 --> 01:06:15.170 align:middle line:84% Also, don't forget strategic investors. 01:06:15.170 --> 01:06:17.590 align:middle line:84% We had several strategic investors. 01:06:17.590 --> 01:06:18.970 align:middle line:90% They are great. 01:06:18.970 --> 01:06:21.030 align:middle line:90% They're patient money. 01:06:21.030 --> 01:06:24.050 align:middle line:84% You can get from them either equity. 01:06:24.050 --> 01:06:25.870 align:middle line:90% That's what we did. 01:06:25.870 --> 01:06:27.850 align:middle line:90% You can get R&D contracts. 01:06:27.850 --> 01:06:30.110 align:middle line:90% So those are non-dilutive. 01:06:30.110 --> 01:06:31.910 align:middle line:90% And they're hugely validating. 01:06:31.910 --> 01:06:35.070 align:middle line:84% If a customer is willing to pay you to do R&D, 01:06:35.070 --> 01:06:37.790 align:middle line:84% that means you're onto something. 01:06:37.790 --> 01:06:40.450 align:middle line:84% Or we required customer deposits. 01:06:40.450 --> 01:06:42.750 align:middle line:84% So at the time that you placed the order, 01:06:42.750 --> 01:06:46.670 align:middle line:84% you had to give a 20% deposit, and then you'd 01:06:46.670 --> 01:06:49.430 align:middle line:84% get shipped the product in three to six months. 01:06:49.430 --> 01:06:51.930 align:middle line:84% So that helped us fund the business. 01:06:51.930 --> 01:06:53.550 align:middle line:90% We needed that cash. 01:06:53.550 --> 01:06:55.730 align:middle line:84% And then, obviously, venture capital, 01:06:55.730 --> 01:06:58.670 align:middle line:84% which could be equity in the early days 01:06:58.670 --> 01:07:01.950 align:middle line:84% or, as you get to revenue and profitability, 01:07:01.950 --> 01:07:05.670 align:middle line:90% can include venture debt. 01:07:05.670 --> 01:07:08.540 align:middle line:84% You want to identify strategic investors. 01:07:08.540 --> 01:07:12.100 align:middle line:84% So this is anybody who's invested in your success. 01:07:12.100 --> 01:07:14.700 align:middle line:90% It can be your suppliers. 01:07:14.700 --> 01:07:16.420 align:middle line:90% It can be your customers. 01:07:16.420 --> 01:07:17.620 align:middle line:90% It can be your distributors. 01:07:17.620 --> 01:07:21.480 align:middle line:84% In our case, one was a customer, and one was a distributor. 01:07:21.480 --> 01:07:23.040 align:middle line:90% And they were so patient. 01:07:23.040 --> 01:07:25.000 align:middle line:84% They didn't take a seat on the board. 01:07:25.000 --> 01:07:27.300 align:middle line:84% I just sent them a quarterly report, 01:07:27.300 --> 01:07:29.360 align:middle line:90% and that was the end of that. 01:07:29.360 --> 01:07:31.200 align:middle line:90% They were great to deal with. 01:07:31.200 --> 01:07:34.180 align:middle line:90% And so I highly recommend it. 01:07:34.180 --> 01:07:35.980 align:middle line:84% There's some things to be careful about. 01:07:35.980 --> 01:07:39.640 align:middle line:84% You want to be careful, if it's your customer, about what 01:07:39.640 --> 01:07:41.440 align:middle line:90% information you share with them. 01:07:41.440 --> 01:07:43.680 align:middle line:84% You may not want them to know the gross profit 01:07:43.680 --> 01:07:47.320 align:middle line:84% of your product, especially if it's really high, 01:07:47.320 --> 01:07:49.720 align:middle line:84% because you don't want them to use that against you 01:07:49.720 --> 01:07:53.360 align:middle line:90% in negotiating the price. 01:07:53.360 --> 01:07:57.200 align:middle line:84% You may be concerned because if Ford is a customer 01:07:57.200 --> 01:07:59.880 align:middle line:84% and they're investing, then maybe BMW 01:07:59.880 --> 01:08:02.260 align:middle line:84% doesn't want to buy your product. 01:08:02.260 --> 01:08:08.600 align:middle line:84% So you have to be sensitive, but it can be navigated. 01:08:08.600 --> 01:08:13.240 align:middle line:84% A common mistake I see is underestimating fundraising. 01:08:13.240 --> 01:08:16.000 align:middle line:90% Fundraising is a very big job. 01:08:16.000 --> 01:08:17.300 align:middle line:90% It takes dedication. 01:08:17.300 --> 01:08:18.100 align:middle line:90% It takes time. 01:08:18.100 --> 01:08:21.240 align:middle line:84% It takes a lot of research and a lot of energy. 01:08:21.240 --> 01:08:23.420 align:middle line:84% You will face rejection and failure. 01:08:23.420 --> 01:08:24.840 align:middle line:84% And that's one of the reasons you 01:08:24.840 --> 01:08:28.240 align:middle line:84% should do research on these investors. 01:08:28.240 --> 01:08:29.340 align:middle line:90% Check them out. 01:08:29.340 --> 01:08:34.000 align:middle line:84% If they only invest in AI software companies and you are 01:08:34.000 --> 01:08:37.840 align:middle line:84% a 3D-printing company, don't pitch to them because you know 01:08:37.840 --> 01:08:38.340 align:middle line:90% what? 01:08:38.340 --> 01:08:40.460 align:middle line:84% And what I see startups do is they're like, well, 01:08:40.460 --> 01:08:41.460 align:middle line:90% I'll just give it a try. 01:08:41.460 --> 01:08:41.960 align:middle line:90% Who knows? 01:08:41.960 --> 01:08:42.899 align:middle line:90% Maybe this time. 01:08:42.899 --> 01:08:43.560 align:middle line:90% No. 01:08:43.560 --> 01:08:45.520 align:middle line:90% That's just one more rejection. 01:08:45.520 --> 01:08:46.020 align:middle line:90% Trust me. 01:08:46.020 --> 01:08:48.300 align:middle line:84% You're going to get so many rejections. 01:08:48.300 --> 01:08:51.260 align:middle line:84% You do not need one more rejection. 01:08:51.260 --> 01:08:53.160 align:middle line:90% So reject yourself. 01:08:53.160 --> 01:08:57.319 align:middle line:84% Do your research, and don't put them on the list. 01:08:57.319 --> 01:09:00.200 align:middle line:84% And it's important to learn from every rejection. 01:09:00.200 --> 01:09:02.260 align:middle line:90% Did you not do your research? 01:09:02.260 --> 01:09:04.359 align:middle line:84% Should they never have been on the list? 01:09:04.359 --> 01:09:06.779 align:middle line:90% Or was your pitch not good? 01:09:06.779 --> 01:09:08.899 align:middle line:84% Did they not understand what you were saying? 01:09:08.899 --> 01:09:10.680 align:middle line:84% Maybe you need to improve the pitch? 01:09:10.680 --> 01:09:14.479 align:middle line:84% Or maybe they had some really good strategic advice 01:09:14.479 --> 01:09:16.160 align:middle line:90% about your business model. 01:09:16.160 --> 01:09:18.260 align:middle line:84% Maybe your business model is flawed. 01:09:18.260 --> 01:09:23.000 align:middle line:84% Instead of selling 3D printers, you should provide the 3D-print 01:09:23.000 --> 01:09:25.240 align:middle line:90% service to your customers. 01:09:25.240 --> 01:09:28.200 align:middle line:84% So make sure you get some strategic takeaways 01:09:28.200 --> 01:09:32.720 align:middle line:90% from every failed pitch. 01:09:32.720 --> 01:09:35.720 align:middle line:84% And I want to say-- because everyone talks 01:09:35.720 --> 01:09:37.720 align:middle line:84% so much about venture capital, and it 01:09:37.720 --> 01:09:42.399 align:middle line:84% seems to be a figure of merit-- that venture capital is not 01:09:42.399 --> 01:09:43.720 align:middle line:90% for everyone. 01:09:43.720 --> 01:09:45.640 align:middle line:90% It's not for all startups. 01:09:45.640 --> 01:09:49.000 align:middle line:84% For sure, it offers terrific opportunity. 01:09:49.000 --> 01:09:51.479 align:middle line:84% It gives you cash to grow the business. 01:09:51.479 --> 01:09:55.080 align:middle line:84% You will get great advice from experienced investors who 01:09:55.080 --> 01:09:58.320 align:middle line:84% have a strategic perspective, and they have visibility 01:09:58.320 --> 01:10:00.720 align:middle line:90% in a lot of related startups. 01:10:00.720 --> 01:10:03.250 align:middle line:84% They'll also provide connections. 01:10:03.250 --> 01:10:07.130 align:middle line:84% They'll give you connections to customers, to other investors. 01:10:07.130 --> 01:10:08.730 align:middle line:90% And it's hugely validating. 01:10:08.730 --> 01:10:13.050 align:middle line:84% If you have a top-tier VC in your cap table, 01:10:13.050 --> 01:10:14.470 align:middle line:90% that's very validating. 01:10:14.470 --> 01:10:17.050 align:middle line:84% That can actually help you with your customers. 01:10:17.050 --> 01:10:22.430 align:middle line:84% So venture capital definitely offers opportunity. 01:10:22.430 --> 01:10:25.110 align:middle line:84% And I also should say, it may be necessary. 01:10:25.110 --> 01:10:29.130 align:middle line:84% So some startups have to grow big and fast, 01:10:29.130 --> 01:10:30.730 align:middle line:90% or else they're going to fail. 01:10:30.730 --> 01:10:33.750 align:middle line:84% High growth might be necessary to capture market share. 01:10:33.750 --> 01:10:35.850 align:middle line:90% So for example, Uber-- 01:10:35.850 --> 01:10:40.090 align:middle line:84% creating a two-sided market, growing around the world-- that 01:10:40.090 --> 01:10:41.910 align:middle line:90% really needed to grow fast. 01:10:41.910 --> 01:10:43.850 align:middle line:90% It required a lot of capital. 01:10:43.850 --> 01:10:48.410 align:middle line:84% That was not a bootstrap kind of a business. 01:10:48.410 --> 01:10:50.810 align:middle line:84% You might have high capital costs 01:10:50.810 --> 01:10:54.390 align:middle line:84% that if you're building a satellite company, 01:10:54.390 --> 01:10:56.430 align:middle line:84% you're going to have high capital costs. 01:10:56.430 --> 01:10:58.770 align:middle line:90% OK, that makes sense. 01:10:58.770 --> 01:11:01.690 align:middle line:84% But venture capital carries risk. 01:11:01.690 --> 01:11:04.050 align:middle line:84% Sometimes it can be easier to move forward 01:11:04.050 --> 01:11:06.050 align:middle line:90% without product market fit. 01:11:06.050 --> 01:11:08.310 align:middle line:84% One thing I see out of startups out of Greece-- 01:11:08.310 --> 01:11:10.490 align:middle line:84% because there's less capital available-- 01:11:10.490 --> 01:11:12.290 align:middle line:84% is that they are finding-- they're 01:11:12.290 --> 01:11:16.050 align:middle line:84% honing in on their product market fit sooner. 01:11:16.050 --> 01:11:19.330 align:middle line:84% They're reaching profitability sooner. 01:11:19.330 --> 01:11:21.790 align:middle line:84% Sometimes it's easier to think everything is OK 01:11:21.790 --> 01:11:23.890 align:middle line:84% if you've got lots of money and you don't 01:11:23.890 --> 01:11:27.250 align:middle line:90% need to get to profitability. 01:11:27.250 --> 01:11:31.470 align:middle line:84% Some businesses can't grow at the pace that VCs expect. 01:11:31.470 --> 01:11:35.970 align:middle line:84% I would categorize Z Corporation in that role. 01:11:35.970 --> 01:11:41.625 align:middle line:84% We needed to educate the market, and that just took time. 01:11:41.625 --> 01:11:43.750 align:middle line:84% And that wasn't something you could throw money at. 01:11:43.750 --> 01:11:46.330 align:middle line:84% You couldn't advertise during the Super Bowl 01:11:46.330 --> 01:11:50.450 align:middle line:90% and expect to grow a lot faster. 01:11:50.450 --> 01:11:51.990 align:middle line:90% You give up control. 01:11:51.990 --> 01:11:56.050 align:middle line:84% So as a founder CEO, you may be kicked out. 01:11:56.050 --> 01:11:58.910 align:middle line:84% And so you need to understand that. 01:11:58.910 --> 01:12:01.450 align:middle line:84% The other thing is a higher valuation raises the bar, 01:12:01.450 --> 01:12:04.350 align:middle line:84% and it makes it harder to make a return for investors. 01:12:04.350 --> 01:12:07.910 align:middle line:84% So you better be sure that you can put that money to work 01:12:07.910 --> 01:12:11.490 align:middle line:90% and generate a return. 01:12:11.490 --> 01:12:13.350 align:middle line:84% Consider your personal ownership. 01:12:13.350 --> 01:12:14.670 align:middle line:90% VCs want unicorns. 01:12:14.670 --> 01:12:16.530 align:middle line:84% They want a billion-dollar business, 01:12:16.530 --> 01:12:19.050 align:middle line:84% and it's pretty much all or nothing. 01:12:19.050 --> 01:12:21.110 align:middle line:84% So they're going to push for growth. 01:12:21.110 --> 01:12:26.970 align:middle line:84% And sometimes the startup will fail as a result of pushing. 01:12:26.970 --> 01:12:31.290 align:middle line:84% But it might have thrived on a slower path. 01:12:31.290 --> 01:12:35.410 align:middle line:84% And so keep in mind that a very profitable $10 million 01:12:35.410 --> 01:12:39.690 align:middle line:84% startup that you own entirely yourself 01:12:39.690 --> 01:12:42.370 align:middle line:84% might be a better outcome for you 01:12:42.370 --> 01:12:47.530 align:middle line:84% than pushing to grow a business too fast and having it fail. 01:12:47.530 --> 01:12:50.810 align:middle line:84% So you just need to know what business you're in, whether this 01:12:50.810 --> 01:12:52.730 align:middle line:90% makes sense or not. 01:12:52.730 --> 01:12:56.250 align:middle line:84% And the only reason I mention this is because sometimes people 01:12:56.250 --> 01:12:58.640 align:middle line:84% think venture capital is the only path, 01:12:58.640 --> 01:13:01.660 align:middle line:84% but it really depends what business you're in. 01:13:01.660 --> 01:13:03.480 align:middle line:90% Beware CEO syndrome. 01:13:03.480 --> 01:13:05.420 align:middle line:84% So I'm going to go through this quickly. 01:13:05.420 --> 01:13:08.480 align:middle line:84% Startup CEOs face failure and rejection every day. 01:13:08.480 --> 01:13:10.260 align:middle line:84% They get a lot of skepticism and doubt 01:13:10.260 --> 01:13:13.340 align:middle line:84% from engineers, from their customers, from their employees. 01:13:13.340 --> 01:13:17.660 align:middle line:84% Their ideas are challenged every day, and they slam the CEO. 01:13:17.660 --> 01:13:20.360 align:middle line:84% And that leads the CEO to have to rework. 01:13:20.360 --> 01:13:24.420 align:middle line:84% They redesign the product, redefine the product market fit. 01:13:24.420 --> 01:13:27.060 align:middle line:84% And they get a strong articulation 01:13:27.060 --> 01:13:28.560 align:middle line:90% of the value proposition. 01:13:28.560 --> 01:13:29.780 align:middle line:90% And then they go back. 01:13:29.780 --> 01:13:32.500 align:middle line:84% And this rework leads to success. 01:13:32.500 --> 01:13:34.700 align:middle line:84% And the success convinces everyone 01:13:34.700 --> 01:13:36.780 align:middle line:90% that the CEO is a visionary. 01:13:36.780 --> 01:13:39.680 align:middle line:84% And the company gains visibility, and awards, 01:13:39.680 --> 01:13:43.120 align:middle line:84% and the CEO becomes famous, and everyone listens. 01:13:43.120 --> 01:13:45.500 align:middle line:84% And people stop challenging the CEO. 01:13:45.500 --> 01:13:47.420 align:middle line:84% And now the new employees come in who 01:13:47.420 --> 01:13:50.900 align:middle line:84% never knew the CEO in that early bumbling stage, 01:13:50.900 --> 01:13:54.060 align:middle line:84% and they only see this very confident CEO. 01:13:54.060 --> 01:13:57.460 align:middle line:84% And now the CEO starts to feel invincible, 01:13:57.460 --> 01:14:01.260 align:middle line:84% and the CEO is liberated from self-doubt. 01:14:01.260 --> 01:14:03.700 align:middle line:84% No more conflict with others, stops 01:14:03.700 --> 01:14:07.700 align:middle line:84% asking others for opinions, stops listening to other ideas, 01:14:07.700 --> 01:14:09.880 align:middle line:90% dismisses competitive startups. 01:14:09.880 --> 01:14:12.260 align:middle line:90% Not to worry, we're doing great. 01:14:12.260 --> 01:14:15.780 align:middle line:84% And it's this primal urge for validation 01:14:15.780 --> 01:14:20.940 align:middle line:84% that ultimately causes the CEO toward blindness. 01:14:20.940 --> 01:14:25.340 align:middle line:84% And this success can trigger CEO syndrome, where the CEO becomes 01:14:25.340 --> 01:14:29.060 align:middle line:84% insulated from honest feedback, stops getting 01:14:29.060 --> 01:14:31.020 align:middle line:90% a diversity of opinions. 01:14:31.020 --> 01:14:34.220 align:middle line:84% And this leads to poor decision-making. 01:14:34.220 --> 01:14:37.140 align:middle line:90% And poor decisions can be fatal. 01:14:37.140 --> 01:14:39.660 align:middle line:84% You might develop the wrong product. 01:14:39.660 --> 01:14:43.100 align:middle line:84% You might demoralize employees by micromanaging and not 01:14:43.100 --> 01:14:45.700 align:middle line:84% listening to their opinions and their ideas. 01:14:45.700 --> 01:14:49.420 align:middle line:84% Or you might get blindsided by competition by that new startup 01:14:49.420 --> 01:14:52.540 align:middle line:84% that you dismissed just the other day. 01:14:52.540 --> 01:14:56.080 align:middle line:84% So the antidote to losing touch is to be challenged. 01:14:56.080 --> 01:15:00.220 align:middle line:84% And Bob talked about that, about having that advisory group. 01:15:00.220 --> 01:15:04.340 align:middle line:84% You need a group like that that's willing, even eager, 01:15:04.340 --> 01:15:06.900 align:middle line:90% to challenge your ideas. 01:15:06.900 --> 01:15:09.080 align:middle line:90% And you need to ask questions. 01:15:09.080 --> 01:15:13.900 align:middle line:84% Listen and learn from these people. 01:15:13.900 --> 01:15:15.960 align:middle line:90% They feel like small failures. 01:15:15.960 --> 01:15:18.220 align:middle line:84% It feels like small rejections, like you 01:15:18.220 --> 01:15:21.260 align:middle line:84% go to them with what you think is the greatest idea, 01:15:21.260 --> 01:15:23.340 align:middle line:90% and they knock it down. 01:15:23.340 --> 01:15:26.740 align:middle line:84% But it's that process that will lead you 01:15:26.740 --> 01:15:30.180 align:middle line:84% to better decision-making and your ultimate success. 01:15:30.180 --> 01:15:35.820 align:middle line:84% So beware of this, and you will do well. 01:15:35.820 --> 01:15:40.460 align:middle line:84% So commercializing deep-tech hardware is tough. 01:15:40.460 --> 01:15:43.540 align:middle line:84% Focus on key elements for success. 01:15:43.540 --> 01:15:46.340 align:middle line:84% That's defensible product differentiation, 01:15:46.340 --> 01:15:49.380 align:middle line:84% a strong, diverse team, encourage debate 01:15:49.380 --> 01:15:50.900 align:middle line:90% and a healthy culture. 01:15:50.900 --> 01:15:52.120 align:middle line:90% Talk with your customers. 01:15:52.120 --> 01:15:54.030 align:middle line:90% Get a prototype in their hands. 01:15:54.030 --> 01:15:56.030 align:middle line:84% Focus on revenue and profitability 01:15:56.030 --> 01:15:57.790 align:middle line:90% within your beachhead market. 01:15:57.790 --> 01:16:01.270 align:middle line:84% And make decisions whenever you get new information. 01:16:01.270 --> 01:16:03.190 align:middle line:90% Entrepreneurship is rewarding. 01:16:03.190 --> 01:16:04.410 align:middle line:90% You have to persevere. 01:16:04.410 --> 01:16:05.050 align:middle line:90% It's hard. 01:16:05.050 --> 01:16:06.790 align:middle line:90% There's no life balance. 01:16:06.790 --> 01:16:08.530 align:middle line:84% But find something you believe in. 01:16:08.530 --> 01:16:10.910 align:middle line:84% It's going to be a long road, for sure. 01:16:10.910 --> 01:16:14.630 align:middle line:84% Celebrate your milestones and have fun along the way. 01:16:14.630 --> 01:16:15.870 align:middle line:90% They are risky. 01:16:15.870 --> 01:16:16.850 align:middle line:90% Startups are risky. 01:16:16.850 --> 01:16:20.630 align:middle line:84% But controlling your destiny is incredibly enriching. 01:16:20.630 --> 01:16:21.970 align:middle line:90% It's really fun. 01:16:21.970 --> 01:16:26.310 align:middle line:84% It's great fun to take a blank sheet of paper 01:16:26.310 --> 01:16:32.310 align:middle line:84% and develop a plan, develop a budget, develop a brochure, 01:16:32.310 --> 01:16:35.550 align:middle line:90% develop a sales contract. 01:16:35.550 --> 01:16:38.990 align:middle line:84% Every aspect, you're starting with a blank sheet of paper, 01:16:38.990 --> 01:16:41.070 align:middle line:84% and you are creating something that 01:16:41.070 --> 01:16:45.450 align:middle line:84% did not exist before that would not have existed without you. 01:16:45.450 --> 01:16:48.070 align:middle line:84% And that's really, really exciting. 01:16:48.070 --> 01:16:51.230 align:middle line:84% So as Steve Jobs said, "It's more fun to be a pirate than 01:16:51.230 --> 01:16:52.510 align:middle line:90% to join the Navy." 01:16:52.510 --> 01:16:54.750 align:middle line:90% And I couldn't agree more. 01:16:54.750 --> 01:16:58.530 align:middle line:84% So there is a class that's going to be taught this spring-- 01:16:58.530 --> 01:17:01.070 align:middle line:90% I'm co-teaching with Ken Zolot-- 01:17:01.070 --> 01:17:04.070 align:middle line:84% called Founder's Journey-- Launching and Scaling Hardware 01:17:04.070 --> 01:17:04.690 align:middle line:90% Startups. 01:17:04.690 --> 01:17:09.190 align:middle line:84% It's going to be Tuesday and Thursday afternoons at 3:00 01:17:09.190 --> 01:17:10.550 align:middle line:90% to 5:00 PM. 01:17:10.550 --> 01:17:16.450 align:middle line:84% And feel free to join, and I hope you'll sign up for it. 01:17:16.450 --> 01:17:18.030 align:middle line:90% It's a special class. 01:17:18.030 --> 01:17:20.043 align:middle line:90% So thank you. 01:17:20.043 --> 01:17:22.508 align:middle line:90% [APPLAUSE] 01:17:22.508 --> 01:17:25.470 align:middle line:90% 01:17:25.470 --> 01:17:29.190 align:middle line:84% JOE HADZIMA: A lot of information there. 01:17:29.190 --> 01:17:30.210 align:middle line:90% Thank you very much. 01:17:30.210 --> 01:17:32.070 align:middle line:84% MARINA HATSOPOULOS: Thank you, Jeff. 01:17:32.070 --> 01:17:35.510 align:middle line:84% JOE HADZIMA: I'm just going to do a quick wrap-up here 01:17:35.510 --> 01:17:36.630 align:middle line:90% of the course. 01:17:36.630 --> 01:17:38.050 align:middle line:90% Let's see if I have it. 01:17:38.050 --> 01:17:42.350 align:middle line:90% 01:17:42.350 --> 01:17:43.490 align:middle line:90% OK, oops. 01:17:43.490 --> 01:17:47.390 align:middle line:90% 01:17:47.390 --> 01:17:48.310 align:middle line:90% There we go. 01:17:48.310 --> 01:17:49.472 align:middle line:90% Do you have the clicker? 01:17:49.472 --> 01:17:50.430 align:middle line:90% MARINA HATSOPOULOS: Oh. 01:17:50.430 --> 01:17:52.013 align:middle line:84% JOE HADZIMA: Oh, you left it up there. 01:17:52.013 --> 01:17:52.990 align:middle line:90% OK. 01:17:52.990 --> 01:17:55.550 align:middle line:90% OK. 01:17:55.550 --> 01:17:59.190 align:middle line:84% Well, time for a quick wrap-up of the course. 01:17:59.190 --> 01:18:02.030 align:middle line:90% Whoops. 01:18:02.030 --> 01:18:04.510 align:middle line:84% Time for a quick wrap up of the course. 01:18:04.510 --> 01:18:09.412 align:middle line:84% So the question is, what did you learn in the six sessions? 01:18:09.412 --> 01:18:11.870 align:middle line:84% In the first session, I put down a whole bunch of questions 01:18:11.870 --> 01:18:14.030 align:middle line:90% you needed to answer. 01:18:14.030 --> 01:18:16.010 align:middle line:90% And you remember all of these? 01:18:16.010 --> 01:18:17.630 align:middle line:84% I want you to look at those and think 01:18:17.630 --> 01:18:20.750 align:middle line:84% about the different sessions we have 01:18:20.750 --> 01:18:23.770 align:middle line:84% and see if we've covered all of those things. 01:18:23.770 --> 01:18:30.215 align:middle line:90% 01:18:30.215 --> 01:18:32.090 align:middle line:84% You can go back and look at the first slides. 01:18:32.090 --> 01:18:39.630 align:middle line:90% 01:18:39.630 --> 01:18:41.778 align:middle line:84% And remember, I said, why this course? 01:18:41.778 --> 01:18:43.570 align:middle line:84% I said, it wasn't going to be about theory. 01:18:43.570 --> 01:18:46.250 align:middle line:84% I think you realize it has been about doing. 01:18:46.250 --> 01:18:49.080 align:middle line:84% You just heard a great set of experiences 01:18:49.080 --> 01:18:52.903 align:middle line:84% conveyed to you about what actually happened. 01:18:52.903 --> 01:18:54.320 align:middle line:84% Remember, our goal was to increase 01:18:54.320 --> 01:18:58.240 align:middle line:90% your probability of success. 01:18:58.240 --> 01:19:01.780 align:middle line:84% And we talked about it being a lifetime, incurable disease, 01:19:01.780 --> 01:19:05.760 align:middle line:84% not fatal, but it's a full-contact sport. 01:19:05.760 --> 01:19:08.600 align:middle line:90% It's not an academic exercise. 01:19:08.600 --> 01:19:11.720 align:middle line:90% So did we deliver? 01:19:11.720 --> 01:19:14.260 align:middle line:84% Did you get all of these enhanced skills? 01:19:14.260 --> 01:19:17.642 align:middle line:90% 01:19:17.642 --> 01:19:20.100 align:middle line:84% I think if you go down, we've covered pretty much of those. 01:19:20.100 --> 01:19:23.640 align:middle line:84% If you don't think we did, please let us know. 01:19:23.640 --> 01:19:25.840 align:middle line:84% We ask personal questions, and tonight's 01:19:25.840 --> 01:19:30.760 align:middle line:84% been really about having you think those through. 01:19:30.760 --> 01:19:33.760 align:middle line:84% And the question is, where do you go from here? 01:19:33.760 --> 01:19:39.020 align:middle line:84% This is a graphic about the different programs, classes, et 01:19:39.020 --> 01:19:40.680 align:middle line:90% cetera at MIT. 01:19:40.680 --> 01:19:45.840 align:middle line:84% It comes from the annual report at the Martin Trust Center. 01:19:45.840 --> 01:19:49.780 align:middle line:84% And these are things, if you're part of the MIT community, 01:19:49.780 --> 01:19:50.760 align:middle line:90% you might consider. 01:19:50.760 --> 01:19:52.540 align:middle line:90% You can find them there. 01:19:52.540 --> 01:19:55.160 align:middle line:84% You can go to the Open Innovation 01:19:55.160 --> 01:20:00.640 align:middle line:84% website, which tracks events and all the other programs. 01:20:00.640 --> 01:20:04.560 align:middle line:84% And we've mentioned a couple of times Venture Mentoring Service. 01:20:04.560 --> 01:20:07.680 align:middle line:84% Now, just to give you a little more thought on that, 01:20:07.680 --> 01:20:10.940 align:middle line:84% Venture Mentoring Service tries to train the entrepreneur, 01:20:10.940 --> 01:20:13.080 align:middle line:84% help the entrepreneur see through things. 01:20:13.080 --> 01:20:16.000 align:middle line:84% If you go there, you're going to be given homework. 01:20:16.000 --> 01:20:18.000 align:middle line:84% You'll have a mentor team that will 01:20:18.000 --> 01:20:20.520 align:middle line:84% be assembled to meet the kind of things 01:20:20.520 --> 01:20:23.160 align:middle line:84% that you mutually decide you need. 01:20:23.160 --> 01:20:28.080 align:middle line:84% And you'll meet with them on a pretty consistent basis. 01:20:28.080 --> 01:20:29.280 align:middle line:90% It's a great resource. 01:20:29.280 --> 01:20:33.040 align:middle line:84% If you're ready to really get into starting a venture 01:20:33.040 --> 01:20:35.460 align:middle line:84% or starting, really, to push an idea, 01:20:35.460 --> 01:20:38.080 align:middle line:84% I would recommend you go to Venture Mentoring Service 01:20:38.080 --> 01:20:41.120 align:middle line:90% and check that out. 01:20:41.120 --> 01:20:45.760 align:middle line:84% So with all of that, we have a couple of assets for you. 01:20:45.760 --> 01:20:48.960 align:middle line:84% If you found this useful, let us know. 01:20:48.960 --> 01:20:52.780 align:middle line:84% Certainly, let us know now, but even more so later. 01:20:52.780 --> 01:20:55.200 align:middle line:84% The reason somebody said to me the other night, 01:20:55.200 --> 01:20:57.320 align:middle line:84% why have you been doing this all these years? 01:20:57.320 --> 01:21:00.320 align:middle line:84% It's because five or 10 years later, somebody 01:21:00.320 --> 01:21:03.600 align:middle line:84% will send an email and say, I remember something 01:21:03.600 --> 01:21:05.660 align:middle line:84% that was talked about in the course, 01:21:05.660 --> 01:21:08.340 align:middle line:84% and I just wanted to say it was very helpful to me. 01:21:08.340 --> 01:21:11.960 align:middle line:84% You heard that on our founder night when one of our panelists 01:21:11.960 --> 01:21:15.720 align:middle line:84% said that dealing with the Technology Licensing Office, 01:21:15.720 --> 01:21:18.200 align:middle line:84% they looked at stuff that I had put out there. 01:21:18.200 --> 01:21:20.740 align:middle line:90% That's very encouraging for us. 01:21:20.740 --> 01:21:23.480 align:middle line:90% So let us know. 01:21:23.480 --> 01:21:25.000 align:middle line:84% Let us know about other topics we 01:21:25.000 --> 01:21:29.120 align:middle line:84% should cover as you go on your journey. 01:21:29.120 --> 01:21:31.960 align:middle line:84% Be sure to give back and help others. 01:21:31.960 --> 01:21:33.900 align:middle line:90% That's a really important thing. 01:21:33.900 --> 01:21:37.120 align:middle line:84% As Bob said tonight, it can be lonely. 01:21:37.120 --> 01:21:40.280 align:middle line:84% Be part of a community that helps each other. 01:21:40.280 --> 01:21:46.110 align:middle line:84% And remember, H equals R are divided by E. 01:21:46.110 --> 01:21:48.470 align:middle line:84% So think about everything you do. 01:21:48.470 --> 01:21:53.010 align:middle line:84% Can I create a reality that exceeds expectations that people 01:21:53.010 --> 01:21:57.610 align:middle line:90% have and make people happy? 01:21:57.610 --> 01:22:02.610 align:middle line:84% And so with that, I'm going to declare this six-session journey 01:22:02.610 --> 01:22:06.290 align:middle line:84% through Nuts and Bolts of New Ventures to be concluded. 01:22:06.290 --> 01:22:10.890 align:middle line:84% And I wish you well on your journeys going forward. 01:22:10.890 --> 01:22:12.070 align:middle line:90% Thank you. 01:22:12.070 --> 01:22:14.820 align:middle line:90% [APPLAUSE] 01:22:14.820 --> 01:22:43.000 align:middle line:90%