From Science to Startup

Frontmatter

1. Prologue

Abstract

For interesting insights into the real world of entrepreneurship, this book takes you on a roller coaster of learning and unlearning irrespective of whether you’re finishing your MBA and want to be an entrepreneur, or a technologist or scientist who wants to commercialise an innovation. It simply makes you recognise your box and think outside of it.

Highlighting failures, team challenges, awards, both European and global, the reality of life without a salary, and oodles of passion to move ahead - Anil Sethi presents “From Science to Start-up”.

Anil Sethi

2. Are You Meant to Be an Entrepreneur?

Abstract

With the many champagnes and wines that we had during my MBA years in London, I absorbed the heady—the “make-a-difference-to-your-environment”—cocktail as well. A corporate job would not be satisfying anymore. My belief - if you want to make that impact, do something different and do it yourself - gathered steam!

Find your cause. Make it happen. Now. It’s as simple as that—in theory. Practically, be prepared for everything. As I learnt, there are only two sensations in entrepreneurship; euphorea and panic. Ride your wave of entrepreneurship with more troughs than crests, with multiple levels of frustration—and at the same time a palpable excitement that simply keeps you going.

Anil Sethi

3. Ideas to Shoot and Root for

Abstract

Don’t wait for opportunity to come and knock on your door. Look for ideas dispassionately and actively till your search is over! Weigh the pros and cons. Check out scalability. Know your competition. Position yourself. Align your goals and requirements accurately as per investor interest. Focus—it enables you to develop a deeper insight into the market scenario and trends. Do your market research; plan ahead of competition. Evaluate route and time to commercialization. Examine customer segments. Do not assume anything! Be prepared to walk away if the idea does not fit. Your two survival qualities in the unchartered territory of entrepreneurship are patience and perseverance.

Anil Sethi

4. Technology Evaluation: Is It Ripe for Commercialisation?

Abstract

The road to commercialisation is long and winding. Expect the unexpected. No one is going to pay you for a world record—investors and customers want to know what the tangible impact of your technology or idea is. Have your story in place.

Figure out your route-to-market and barriers-to-entry. Check for consistency and replicability. Ensure that your patents are in place. It takes time to advance from being a pilot project to getting into the black.

There is a huge chasm between emerging technologies and mature ones. Recognising this spells the difference between success and bust. But remember, it’s okay not to know all the answers, so long as you ask the right questions.

Anil Sethi

5. The Team: Recognising the Red Flags

Abstract

Your “perfect team” is really a figment of your imagination. It exists only in your head. Look at the bright side: it’s healthy to have some level of dissent. Being challenged adds a robust touch to business. Appreciate the fact that technology and business teams come from two different planets with alarmingly different mindsets. One focuses on perfection beyond measure, the other on commercialisation. The differences are many, but both teams are best at doing their own thing. What certainly need to be aligned are their ethics and expectations.

Your perception is your reality. But don’t get ensconced in a rosy bubble of perception that is aloof of reality. Listen to your gut. Focus on the core task of making it happen. The one perfect team partner you need is your spouse.

Anil Sethi

6. Patents: Whys and Hows, Protection Strategies for Your Innovation

Abstract

An IP strategy is critical for a technology startup. You need to identify the core knowledge that enables you to have a competitive advantage over your competitors and the freedom to operate, as you commercialise. This is one area where cost saving should be absolutely avoided! Involve the legal eagle. Whether it’s patenting or freedom to operate, trade secret or exclusivity contracts, ensure that each bit is watertight. Do not exclude anything be it personnel, machine-, process-, equity- or investor-connected. Read, understand and take heed of everything on paper—do not ignore the fine print.

Anil Sethi

7. Investors: Choosing the Right Ones, Getting Them Interested

Abstract

For a technology startup that wants to scale up beyond organic growth, investors are a critical part of the mix. Put your skin in the game. Put your money where your mouth is—this will indicate to the investors that the founding team is serious about making business happen. Then check out the various kinds of investors and investor groups. You will be surprised to notice that investors have certain sweet spots where they are comfortable investing. Identify the right investor group. Assess your real investment needs—and always consider asking for more - you always underestimate your financial requirement. More money can only help. Finally, remember that the only right investor is the one whose interests are aligned to your vision for the commercialisation of the start-up.

Anil Sethi

8. Closing the Deal and Getting the Funding

Abstract

The interest of one investor invariably gives one the aura of invincibility. But don’t don your celebration avatar just yet! “Interest” is not the same as a signed deal, which is still not the same as cash in the bank. Other investors may come in at significantly better valuations; or they may not and one investor may be all you ever get. Refrain from assuming things unless specifically stated by investors - in writing. If ambigious, ask; in writing. Whether it’s consortium building, a term sheet, time frame, deliverables or exit strategies. Trust is great to have. But a legal backup is even more important. Be paranoid if you must!

If in a technical startup, never let the researchers take the lead on commercial and manufacturing elements. There’s a reason YOU are here!

Anil Sethi

9. Exit: Opportunity to Convert Equity to Wealth

Abstract

Just as the co-founders and investors have different stakes and share holdings in the company, they may also have different views regarding exits. With addition funding comes the opportunity for a partial exit. Simultaneous with exitsis is the opportunity to scale up for different co-founders and investors. Again, your exit clause must be airtight and legally documented. This will help take care of troublemakers, or any opposition or issues that might arise at a later stage, causing a internal conflict of interest that can impact the successful commercialisation and exits.

Anil Sethi

10. Technologies That Made It: And How

Abstract

A compilation of success stories of some of the technologies emerging from ETH Zurich highlights the challenges faced towards commercialisation. An interesting set of experiences culminates into a strong value-added read.

The bottom line: Build your own brand. Believe it or not, after the first experience, you’ll be well equipped and thoroughly excited about your next baby. Your learning this far will take you further into the realm of exciting entrepreneurship: starting from scratch and coming full circle.

Anil Sethi

11. The Golden Era of Entrepreneurship: Putting It into Perspective

Abstract

Understanding the struggles of those who came before us makes us better entrepreneurs.

A brief history of entrepreneurship and novel ideas has been highlighted here. The conclusion leads to a startling fact: For most of history, entrepreneurs and original thinkers have been vilified and discriminated against rather than celebrated. From the middle ages, to the last century, to the more recent Arab Spring and from the USA, across to Russia, China and India, the author highlights and compares trends across international borders, class, creed and nationally distinct populations. Despite all odds, entrepreneurship has proven that it truly is the art of the possible.

Anil Sethi

12. The Inside Track: What Drives Entrepreneurs and What They Won’t Admit

Abstract

The inside track of risk management, makeovers, team congeniality, internal strife, red flags, external perception, playing boss and finding opportunities, will lead you through shocks and surprises—almost simultaneously! And, despite the fact that there is so much going on, and the undeniable reality that you are always at the eye of a whirlwind, you will have a tremendous feeling of satisfaction. At the same time, amid the entire humdrum of events, you will note that you are actually acquiring better work–life balance. The confidence of having delved into this arena will give you an amazing new sense of power and accomplishment—whatever the end result of your debut company.

Anil Sethi

Backmatter