Published on March 11, 2014
Summer 2012 • Summer 2010 – Startup Central • Summer 2011 – Wicked Awesome Summer StartUp Program (a/k/a WASSUP) • Summer 2012 – FSA • Summer 2013 – GFSA
• Complete the Ramp • Entrepreneurs Not Companies: Teaching our students how to ﬁsh rather than catching a ﬁsh • Fulﬁll MIT’s Mission Goals of FSA
ValidaDon MIT Entrepreneurship Ramp InspiraDon, Idea, Technology Classroom Extra-‐Curricular 15.390 Escape Velocity! The Grand Plan: “The Ramp”
We needed something to support students! ValidaDon MIT Entrepreneurship Ramp InspiraDon, Idea, Technology Classroom Extra-‐Curricular 15.390 Most OQen Unable to Achieve Escape Velocity Plan vs. Reality: Before FSA
ValidaDon CompleDng the Ramp with FSA MIT Entrepreneurship Ramp InspiraDon, Idea, Technology Classroom Extra-‐Curricular 15.390 Escape Velocity! Accelerator
• Peter Thiel • Fellows Program • $100k to dropout Challenge RESULTING CONCLUSION Photo of Peter Thiel by David Orban via wikipedia.org Stay in school Be a Serious EntrepreneurORX AND
Changing Face of Entrepreneurship Herbert B. Jones Foundation’s Milestone Achievement Awards University of Washington
• Educa=onal • Honest broker • Exis=ng extensive entrepreneurship eco-‐chamber & value chain • Tremendous opportunity for a complementary program MIT’s Unique Role
• Space • SDpend • Structure • Status How GFSA Works ˅ Globa l
Community • Support -‐ emo=onal, pride, culture • Learning • Peer mo=va=on Space
1. Baseline: $1k/month per person – Creates full focus 2. Milestone Awards Stipend Area Mtg #1 Mtg #2 Mtg #3 Mtg #4 Total Customer $5K Product $5K Team $5K Financial $5K Cumula=ve $20K 3. Discre=onary budget available
1. April 6 – 1st round of applicaDons due 2. April – interviews 3. May 1 – decisions 4. 3.5 month program 5. Demo Day at t=0 FesDval (mid-‐September) 6. Goal: student capabiliDes reach escape velocity Structure Student Team Mentor Network • EiRs • VMS • Catalyst Prototyping • Labs • IDC Committee • Holds team accountable • Customized for team • Members have BoD experience • 3 monthly meeting and 1 final meeting Tues & Thurs Luncheon Series • JIT Education & connections • Internal & external Informal Support • Staff
General Rhythm Validate & invalidate idea based on Primary Market Research (PMR) & reﬁne team 1st 30 Days Con=nue to reﬁne team & focus on product deﬁni=on & dev 2nd 30 Days Financials, product dev iteraDons & polish for gradua=on 3rd 30 Days
1. Acceptance with Social Norms 2. Good Housekeeping Seal of Approval/Status Status
ReacDon of Students & ApplicaDon Process ALL APPLICATIONS 129 Teams, 376 ParDcipants, 241 MIT Students (All Schools) FIRST SCREENING 26 Teams, 88 ParDcipants, 61 MIT Students GFSA FINAL SELECTION 10 Teams, 35 ParDcipants, 25 MIT Students Other Summer Accelerators: 40 Teams – MIT Beehive Coop 30 Teams – MassChallenge RockHealth, HealthBox, YC, etc.
GFSA EducaDonal Component TEAM • Founders Agreements & Equity Splits • Hiring and Firing Employees • Developing Company Culture CUSTOMER • Primary Market Research/ User Innova=on • Developing a Persona • Securing your First Customer • Decision Making Unit/ Decision Making Process FINANCE • Legal Issues and Startups • Building Financial Statements • Entrepreneurship MicroEconomics: CoCA & LTV • Alterna=ve Ways to Raise Capital PRODUCT • 24 Steps to Successful Product Launch • Protec=ng and Growing your Core • Itera=ng, Reﬁning & Evolving Your Product • Building a Pricing Model
GFSA Clinic Leaders MIT Management and Engineering Faculty Eric von Hippel Maf Marx Catherine Tucker Fiona Murray Sanjay Sarma
GFSA Clinic Leaders Internal Trust Center Resources Bill Aulet Managing Director ChrisDna Chase Entrepreneur in Residence & Student Evangelist Kyle Judah GFSA Program Director Elaine Chen Rethink Robo=cs Jim Dougherty Great Hill Partners Charlie Tillef 50-‐50-‐50 Consul=ng Brian Halligan HubSpot Entrepreneurs in Residence (EiRs)
GFSA Clinic Leaders External Resources Başak Özer Nokia Jack VanWoerkom Home Depot Staples Christopher O'Donnell HubSpot Kevin Rustagi Founder, Ministry of Supply Kit Hickey Founder, Ministry of Supply Paul English Founder, Kayak.com Prahar Shah Founder, Mobee Aaron White Founder, Boundless Learning Joe Greenstein Founder, Flixster Dharmesh Shah HubSpot Jim Baum CEO, Netezza Chuck Kane Founder One Laptop Per Child
• Extremely Important “Forcing FuncDon” & Closure Event • Three Goals for Three Audiences – Students – GFSA/Beehive – Integra=on of External Players • PosiDve eﬀects already seen – 3x increase in student par=cipa=on in t=0 events from last year – Fills pipeline to make next year’s GFSA much stronger – Dozens of teams proac=vely asking to move into the Beehive • Videos of Demo Day presentaDons can be seen at: hfp://entrepreneurship.mit.edu Demo Day “GraduaDon Event”
0 1 2 3 4 Customer Product Team Financials/Other Overall ParDcipant Data Validates AssumpDons Ability to ArGculate Theory
0 1 2 3 4 Customer Product Team Financials/Other Overall ParDcipant Data Validates AssumpDons Ability to Execute
ParDcipant Data Validates AssumpDons Net Promoter Score of +73 “This was one of the most valuable experiences I’ve had while at MIT.” “We learn a lot of theory in class, but now we know how to execute.” “The program ﬁlls the chasm that oEen limits ideas/projects from becoming real businesses.” “This experience helped us to quickly develop the product that addressed real market needs, and with a high market potenIal.” “This real world experience really helps clear up a lot of misconcepIons about the struggle as well as the pay oﬀ in the end.” “I have already advised professors at other universiIes about the program and suggested that this is the real way to honor your students.”
OVERALL • Huge success in allowing teams to make progress beyond best case scenario • Three months is about the right =me – less =me would not be enough maybe a month longer would be even befer • There were conﬂicts with academic work at =mes but was manageable (WiCare & SmartScheduling) • 10 was a good size for year 1 & could grow next year but need to be careful on scaling too fast Lessons Learned
Lessons Learned SELECTION • Team should be the #1 criteria far & away -‐ the best teams far outperformed the teams with more compelling projects at the beginning • Developing culture in the GFSA cohort is a tricky but very important thing. Keeping a collabora=ve and posi=ve spirit in the program is important to op=mizing its success. • Have mixed skilled teams makes a diﬀerence – this is a very good criteria • Once teams get funding, they should probably not be in GFSA
Lessons Learned IMPLEMENTATION • Key element was giving the teams the chance to revisit strategy/ direc=on without a loss of urgency (there was only three months) • Teams s=ll reconﬁgured – founders issues took a lot of =me; Forcing a founders agreement milestones halfway through was very produc=ve • Board mee=ngs and milestone payments were extremely implortant in complemen=ng the mentoring Demo Day as a forcing func=on worked extremely well and was a huge amount of work to pull oﬀ • There is a limit to the value of mentorship and at some points it can get to be too much. Teams have to do things and get answers themselves rather than con=nually listening to more people.
• Accelera=on works • General Incuba=on does not work as well • Avoid Stagna=on: Accelera=on Trumps Incuba=on Conclusion
More info • The book • www.disciplinedentrepreneurship.com • Progress Dashboard www.detoolbox.com 29
Coming March 18: New Online course • Google “edX Entrepreneurship 101” • hfps://www.edx.org/course/mitx/mitx-‐15-‐390x-‐entrepreneurship-‐101-‐who-‐1312
Top 10 Teams All 129 teams that applied Number Percentage Number Percentage MIT Undergrads 1 4.0% 45 19.7% MIT Master's 18 72.0% 113 49.5% MIT Doctorate 5 20.0% 62 27.3% MIT Postdoc 1 4.0% 8 3.5% All MIT Students (Including 2012 graduates) 25 100% 228 100% 0 0 MIT Students (from above) 25 71.4% 228 66.7% MIT Alumni 4 11.4% 27 7.9% Harvard Students 2 5.7% 18.5 5.4% Harvard Alumni 0 0.0% 7.5 2.2% Other 4 11.4% 61 17.8% All par=cipants 35 100% 342 100% 0 0 SAP (4, 11, MAS) 4 16.0% 25 11.0% Eng (1, 2, 3, 6, 10, 16, 20, 22, ESD) 10.5 42.0% 98.5 43.2% HASS (14, 17, 21, 24, CMS, STS) 0 0.0% 2.5 1.1% Sloan (15 including certain joint programs with ESD) 8.5 34.0% 74.5 32.7% Sci (5, 7, 8, 9, 12, 18) 0 0.0% 13 5.7% Whitaker (HST) 0 0.0% 4.5 2.0% Other (postdoc; Opera=ons Research Center) 2 8.0% 10 4.4% All MIT Students 25 100% 228 100% Preliminary Results I: Input
Pre FSA Topic Knowledge (articulate) Capability (apply) Scale 1 - 4 Scale 1 - 4 CUSTOMER average (across the group) 2.4 2.1 PRODUCT average (across the group) 2.5 2.2 TEAM average (across the group) 2.4 2.0 FINANCIALS/OTHER average (across the group) 2.6 2.1 Post FSA Topic Knowledge (articulate) Capability (apply) Scale 1 - 4 Scale 1 - 4 CUSTOMER average (across the group) 3.5 3.3 PRODUCT average (across the group) 3.5 3.3 TEAM average (across the group) 3.5 3.3 FINANCIALS/OTHER average (across the group) 3.7 3.4 Preliminary Results: Skill Building
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