Engineers and Entrepreneurship

Engineers and Entrepreneurship - 1 1 Erik Sander: EGN6640...

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Unformatted text preview: 1 1 Erik Sander: EGN6640 ¡ Most tech. start ‐ ups fail in the first 5 years ¡ 80% of failures due to under capitalization, marketing & management ‐ not the technology ¡ Poor timing, fundraising, choice of expenditures ¡ Overestimating market demand; Underestimating costs ¡ Focus on tech. rather than business/market development ¡ Each technology development stage costs 2 ‐ 10 times as much as previous stage ¡ Financing (General Stats) ¡ First 1M scraped together; Next $1 ‐ 20M from sales/investments ¡ Less than 1/5th of companies with 40%+ annual growth haveVC ¡ Of 100 business plans reviewed by aVC ‐ 1 ‐ 2 will get a call ¡ Of 10 presentations ‐ 1 will get financing ¡ Of 10 financed – 1 ‐ 2 hit, 3 ‐ 5 living dead, the rest fail 2 Erik Sander: EGN6640 2 ¡ No one will need more than 637 kb of memory for a personal computer. – Bill Gates, Founder and CEO Microsoft (1981) ¡ Television won’t be able to hang on to any market it captures after the first six months. People will soon get tired of staring at a plywood box every night. – Darryl Zanuck, Founder 20 th Century Pictures & UnitedArtists (1946) ¡ I think there is a world market for maybe five computers. –Thomas Watson, Chairman IBM (1943) ¡ Who the hell wants to hear actors talk? – HMWarner, CEOWarner Brothers (1927) ¡ Everything that can be invented has already been invented. ‐ Charles Duell, CommissionerUS Patent Office (1899) ¡ Inventions have long since reached their limit, and I see no hope for further developments. – Julius Sextus Frontinus, Roman Engineer (~10 A.D.) Erik Sander: EGN6640 3 ¡ Everyday you have final exams, and everyday after that. ¡ Your girlfriend, friends, etc. are all on summer vacation and wanting to go out and have fun while you are in the middle of final exams. ¡ You are hundreds of thousands of dollars in credit card debt and you are crazy enough to be meeting with new credit card companies to ask for more money. ¡ You have gone to the race track and put your entire life savings, reputation and college career on one horse that runs really well in the muck, and the weather is completely out of your control. Erik Sander: EGN6640 4 Source: www.thederekjohnson.com 3 ¡ Your family wants a quarterly report, which includes your grades, how many friends you have what you have spent what you have how many friends you have, what you have spent, what you have made and they also have the right to ask you for anything else they want to know. Also don’t think about lying to them, the government can now throw you in jail for lying to your parents. ¡ Every purchase you make (textbooks, housing, food, entertainment) is all being scrutinized by your parents and has to be justified....
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This note was uploaded on 11/21/2011 for the course EGN 6640 taught by Professor Eriksander during the Fall '11 term at University of Florida.

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Engineers and Entrepreneurship - 1 1 Erik Sander: EGN6640...

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