Summary NVM:

Class 1 – Introduction to New Venture Management

1. Role of entrepreneurship in society

Entrepreneurship fosters innovation, job creation, growth, and economic development.

Innovation; Economic Growth; Social Impact; Resilience; Job Creation; Competition; Skill
Development; Adaptability.

2. What is a start-up?

The term “start-up” typically refers to a small, early-stage company designed to grow.

A start-up is a company designed to grow fast. Being newly founded does not in itself make a
company a start-up. Nor is it necessary for a start-up to work on technology, or take venture
funding, or have some sort of "exit." The only essential thing is growth. Everything else we
associate with start-ups follows from growth.

3. The different types of new ventures I

4. The different types of new ventures II

Non-profit - Organizations that address a social or environmental issue. All funds generated
are directed towards beneficiaries of their social issue focus. Funded by charitable donations
from companies, individuals, or governments. (E.g.: Greenpeace)

For profit - Businesses that operate with the primary goal of generating profits for their
owners or shareholders. Profits are often reinvested in the business or distributed to
shareholders as dividends. (E.g.: Amazon)

Social venture - Organizations that combine for-profit businesses with a primary focus on
addressing social or environmental challenges. Their goal is to create a positive impact on
society while also generating revenue and profits to sustain their operations and scale their
impact. (E.g.: Patagonia)
 5. What ventures promote social impact

6. What happens to a successful social business (in theory)

7. Start-up vs Mature Company

Roller coaster VS Big Ship

Growth Organizational structure

Risk profile Funding

Innovation and speed Culture

 8. Some traits that increase the probability of success of an entrepreneur

a. Determination e. Risk taking

b. Optimism f. Curiosity

c. Problem solving g. Confidence

d. Adaptability to change

9. The entrepreneurial mindset

Solutions oriented Adaptable Anti-fragile

Entrepreneurial mindset is solution oriented, adaptable, and anti- fragile and is needed not
only in start-ups but also in governments, corporations, non-profits or academic institutions.

10. The entrepreneurial long journey

From inception to
real scale
 From inception to
real scale

11. The entrepreneurial short journey

From inception to ...failure

The failure rate of start-ups was around 90% in 2019 (the US example before the pandemic):
21.5% of start-ups fail in the first year; 30% in the second year; 50% in the fifth year; 70% in
their 10th year.

However, there are still close to 400 million entrepreneurs worldwide, which means the
number of start-ups is always increasing by the year.

Why start-ups fail 2006 version: 18

Why start-ups fail 2021 version
deadly sins?
1. Single founder

2. Bad location

3. Marginal niche

4. Derivative idea

5. Obstinacy

6. Hiring bad programmers

7. Choosing wrong platform

8. Slowness in launching

9. Launching too early

10. Having no specific user in mind

11. Raising too little money

12. Spending too much

13. Raising too much money

14. Poor investor management

15. Sacrificing users to (supposed)

profit

16. Not wanting to get your hands

dirty

17. Fights between founders

18. A half-hearted effort

 12. Which is the most important factor for a start-up to succeed?

“Timing” - Bill Gross Co-founder of PIMCO

“Build a product that people love so much they tell their friends about it.” - Sam Altman
Ex Partner and President at Y Combinator, Co-founder and CEO of Open AI, Co-founder of
World coin

“Capacity to build a monopoly. Competition is for losers!” - Peter Thiel Co-founder of

Paypal, CoCo-founder of Palantir Technologies, Co-founder of Founders Fund, Facebook
first outside investor, Co-founder of Thiel Foundation

Resilience and capacity to adapt - “Everybody has a plan until they get punched in the
mouth” - Mike Tyson: 6 times world heavyweight champion, record 50-6 which included 44
knock outs

The factors:

1. Timing

2. Team, the execution and its ability to adapt

3. Uniqueness of the idea

4. Business Model

5. Funding

13. The typical process of building a successful startup

 Idea + Co-founders

 Find a niche with a market with exponential growth

 Start by build a solution where customers are superusers

 Have an ambitious vision and evangelize all around you

 Team, you build will be the company you build

 Get things done and have an optimistic attitude

 Build a competitive advantage over time

  Constantly find ways to get new users and grow ... Keep focus and passion

Class 2 – Product & Innovation

1. You recognize a big problem, 2. You know how to 3. You need to build a product
what’s next? solve the problem! MVP ASAP

You have identified a problem You have a great idea Minimal Viable Product
How the problem relates to you You have a solution 
Verify if others have it and how they Talk with your potential Smallest feature set that you should
relate with it users build to solve the problem
Study the industry Draw what would be the The MVP should solver their
Research how other solutions are user experience What do immediate needs
tackling the problem Become an expert you want to communicate Define how you will position your
Identify customer segments How will you find users product
Understand who are your target What are they getting Build the MVP
customers Why your solution is better Get the first users
Define which segment you want to than all others
tackle first

Types of products Why is product so important?

Physical products - Can be touched physically and Tangible or intangible item that satisfies a customer
can be shipped to customer after selling it. Tangible need or want
items such as smartphones, cars, or clothing.
One of the top reasons why new ventures are
Digital products - Not touchable, available only successful is the capacity to build products that add
online and could sell only through digitally and only value to their clients (Love; Recommend; Willing to
for digital use. Some examples of digital products are pay)
software, eBook, or video courses.
Services - Intangible offerings such as consulting or Three core elements of each start-up (Team Product
legal advice. Market)

4. You need a business strategy

Strategic initiatives a company pursues to create value for the organization and its
stakeholders and gain a competitive advantage in the market.

How can my business create value for customers?

How can my business create value for employees?

How can my business create value by collaborating with suppliers?

What are the 2 main stages of a new venture?

1. Before Product Market Fit

2. After Product Market Fit

Product Market Fit

PMF fit is the degree to which a product satisfies the needs and wants of its target market

It's the point at which a product's features, benefits, and value proposition are aligned with the
needs and wants of a specific group of customers, resulting in strong demand for the product

Achieving PMF is critical to the success of a business, as it validates the market need for the
product and creates a foundation for long-term growth

PMF is the sweet spot where a company has created a product that meets a real customer
need and is well-positioned to capture a significant share of the market

We generally associate the concept with marketing and product management, in reality it is a
shared responsibility across all company

How to measure Product Market Fit

PMF fit is the degree to which a product satisfies the needs and wants of its target market

Mix of both qualitative and quantitative metrics. Whatever methods your team uses to gauge
success, you will want to include a mix of both as well. For example:

Quantitative: Qualitative:
 NPS score
Churn rate Word of mouth. (As Andreesen says, if your customers talk
Growth rate about your products with others, they effectively become your
product’s sales reps.)
Market share
Calls from the media or industry analysts come in much more
frequently, and coverage of your product and company
increases.

“If you don’t love the product, you should not expect that others will” - Elon Musk

“I do zero market research, whatsoever ... Try to think of what is the platonic ideal of, say,
the perfect rocket or car. What characteristics would it have? And then, make that. And then,
I find that if you do that, people will want to buy it.”

“A lot of times, I think, people try to make products that they think others would love but
they don't love them themselves. If you don't love the product, you should not expect that
others will. You know your own heart, and if it's compelling to you then it will be compelling
to others.”

“Build products so good people will spontaneously tell their friends about it” – Sam
Altman

“Step 1 is to build something that users love.”

“It’s much easier to expand from something that a small number of people love, to something
that a lot of people love.”

“One way you that know when this is working, is that you’ll get growth by word of mouth”

“If you try to build a growth machine before you have a product that some people really love,
you’re almost certainly going to waste your time”

“You need some users to help with the feedback cycle, but the way to get those users is
manually — you should go recruit them by hand.”

“Even if you’re building the product for yourself, listen to outside users — they’ll tell you
how to make a product they’ll pay for.”

The art of Pivoting

In 1971, Starbucks was launched as a business selling espresso makers and coffee beans.
However, in 1983 after a visit to Italy, CEO Howard Schultz decided to brew the Starbucks
coffee beans in a European-style coffee house. Starbucks had found its business destiny and
now the world-famous chain boasts 31,256 stores worldwide.
Instagram began life in 2010 as Burbn, a Foursquare-like app, that allowed users to check in
at their favourite spots, share photos and arrange catch-ups. It was originally intended as a
part-time project for Co-Founder Kevin Systrom to learn coding. However, when Systrom
noticed the photo sharing feature was most commonly used, he declared Burbn a “false start”
and streamlined the app to create Instagram. Within hours of its launch, Instagram had more
followers than Burbn had made in a year. Just two years later, it was bought by Facebook for
US$1 billion.

“Tune In, Hook Up” was the unofficial slogan of the video-dating site YouTube that
launched on Valentine’s Day in 2005. The concept never took off. So when the co- founders
realised users were using the site differently than they’d intended, they pivoted. The
breakthrough came when Co-Founder Jawed Karim posted the first-ever video famously
saying elephants have “really, really, really long trunks”. This inspired users to post silly
videos of themselves on the site. In 2006, YouTube was bought by Google for US$1.65
billion. It’s now the most popular video sharing site on the internet with an estimated worth
up to US$160 billion.

Product Lead Growth

Company’s software at the centre of the buying journey

—and often at the centre of the broader customer
experience. A product-led growth strategy counts on the
product itself—its features, performance, and virality—
to do much of the “selling.”

Can great products build new markets?

How can I build a competitive advantage that lasts?

“Competition is for losers, aim for monopoly and avoid competition!” – Peter Thiel

Create something of value/impact and capture some fraction of the value/impact of what
you’ve created

You start with a really small market, and you take over the whole market and then over time
you find ways to expand that market

One characteristic of a monopoly technology company is proprietary technology

Technology needs to be designed to give you a massive delta over the next the next best thing

Network effects that can kick in and that really help the thing and these are linked to
monopolies over time; network effects are often very hard to get started
Team VS Product VS Market - Marc Andreessen

(co-founder a16z, co-founder Netscape, ex-Chairman Opsware)

“In a great market—a market with lots of real potential customers— the market pulls product
out of the startup

In a terrible market, you can have the best product in the world and an absolutely killer team,
and it doesn’t matter—you’re going to fail.

What does a great team actually get you?

When a great team meets a lousy market, market wins.

When a lousy team meets a great market, market wins.
When a great team meets a great market, something special happens.”

Class 2 – Product Management

1. 50 years of Software Development

Chances to fail increase with the size of the project.

In software development, smaller problems, incremental and evolutive approaches increase
(a lot) the likelihood of success  The same concepts can be applied to evolving
Organizations and Processes.
Product managers are the ones driving measurable success of a product through an
incremental and evolutive approach.

2. Demystifying the product manager role

A product manager should maximize the impact of a product to customers and stakeholders.
Doing it by understanding their needs and goals while working alongside a team to build an
innovative product.

How to measure the impact of Product Management?

Shared measures: Product measures:

 Revenue  Product adoption
 Growth  Product engagement
 Conversion  Product satisfaction
 Churn  Product performance (ex: bot in a CC)
 NPS  Product reliability (engineering)

3. Product Development – A continuous cycle

What influences product and software methodologies?

Software
Hardware
Technology Deep-tech
Back-end
User-facing

Consumers
SMB
Audience Enterprises
Start-ups
Verticals
 Early-stage
Growth
Company maturity stage
Expansion
Domination

First product
New capability
Product maturity stage
Portfolio expansion
Expanding/Pivot to a new domain

Speed matters.

If you move fast in this cycle, you’ll

learn faster having impact sooner.
 4. Product Manager’s Skills

Core skills of a product manager:

Individual Contributor Product Leader

 Master product and SDLC  Vision and strategy

techniques  Drive execution and alignment
 Clear and structured communication  Team development
 Empathy, confidence, and passion  Product culture
 Master diplomacy  Guidelines and practices
 Analytical and structured thinking

Product management techniques:

a. Jobs to be done g. Opportunity solution tree

b. OKR h. Facebook’s 3 question approach

c. Dual-track agile i. Lean start-up and MVP

d. Working backwards

e. Design sprint

f. Design thinking

5. A career in Product Management

From individual contributor to people’s manager:

Associate
Product Manager Learning

Product
Owner
Manager

Senior Product
Recognized Owner
Manager

Principal Product
Expert
Manager
 5 steps to become a product manager:

1. Read a book with a structured overview on the topic

2. Engage with PMs in your network – friends, LinkedIn, slack communities

3. Research on google, chat-GPT, podcasts, more books

4. Learn through a training program, such as One Month PM, Udemy, Product School,
etc.

5. Start by joining a software company with a product organization of at least 5 people

6. The future of Product Management

Technology developments will allow a product manager to be more

Autonomy autonomous building products. This will support more experimentation,
better discovery, and shorter cycles.

As the role becomes more established and mature, supporting roles will
Supportive roles become more common. Product operations, product strategist, SME,
researchers, among others.

Product management techniques & tools will evolve towards a better

Techniques & tools understanding on how to align and work with multi-functional teams. The
“Art” of product management will become less of an Art.
Class 3 – Funding and Fundraising

For profit, non profit, social ventures...all need funding

Internal sources External sources

Founders savings Debt

Family and friends Equity
Customers / business generated Crowdfunding
Sale of assets Grants
Competitions
Impact investing

What if external funding is not mandatory?

 Bootstrapping: starting a business from scratch using personal finances and building it up
with little or none outside investment

 Complete control of your destiny

 Focus on building the business
 Targeting revenues and profitability since day 1
 No safety net / no help
 Frugal with spending / very low costs
 No pressure to achieve aggressive milestones
 High levels of stress

Reasons to fundraise

1. Growth and expansion

2. Talent acquisition and retention
3. Marketing and customer acquisition
4. Engage your community
5. Research and development
6. Financial stability
7. Credibility and partnerships
8. Mentorship and guidance

Challenges of external funding

Dilution Decision making Pressure to achieve results

Potential misalignments of interests

Time consuming process Legal complexity and cost
between founders and investors

When to seek outside funding?

 Fundraising main terms and concepts

Burn rate Valuation Equity financing Crowdfunding (equity and debt)

Pre seed, SeedSeries A, Series

Runway VC (Venture Capitalist) Debt financing
B, C, D, etc

Cap table PE (Private Equity) Venture debt Philanthropy

Term Sheet Angel (Angel Investor) Convertible bonds Impact investing

Funding options available vary according to several factors

Company type - For profit | non profit | social venture

Growth potential and founder(s) mindset - Lifestyle | Growth | Hypergrowth

Venture stage - Idea / pre revenue | Early stage | Growth stage | Mature

Industry and sector - Capital intensive | Not capital intensive

Funding possibilities according to venture stage

Get the right investor or the right terms?

 Market decides the terms

 Founders decide the investors

Class 3 –Our Fundraising Journey:

 Timeline of Fundraising Journey

Participatory Budget:

What is it? Why using it?

Participatory budgeting is a form of • Coding bootcamps were expensive

citizen participation in which citizens
are involved in the process of • Participants could not afford it so the first bootcamps needed to be free for
deciding how public money is spent the user and the employment agency traditional financing models would
not work
The most common participatory budget
process involves citizens choosing one • The full time intensive coding program to reskill was still being tested
or more projects to be financed from a
pipeline of projects through a direct • We tried corporate social responsibility programs, foundations and
voting process participatory budget

• The People were faster and less risk averse than all others
Details of the Deal Key takeaways and Learning

Year: 2014 • It was a great away to test our hypothesis that we could reskill people
Municipality: Lisbon without tech skills into junior software developers in just 14 weeks vs
Votes: 742 standard computer science degree (~4 yr in Portugal)
Reskill U30 unemployed people in a full
time intensive 14-week coding bootcamp
• General Assembly launched the first bootcamp with a grant from NYC
Amount: 150.000€
Outcomes based? No
Economic Development Corporation
# Bootcamps: 2
# Reskilled people: 30 • From approval to execution 12 months passed • Payment delays from the
municipality was a downside
# Candidates 1st Bootcamp: 600
Execution time: 11 months

Debt Crowdfunding (Raize):

What is it? Why using it?

When a number of investors (a.k.a. the • Faster process than a traditional bank loan or PE/VC round (2 or 3
crowd) lends money to businesses or weeks vs 2 or 3 months min)
individuals through a crowdfunding platform
• Build public track record (Capital Markets proxy) creating a new
financing alternative

• Marketing/Buzz/Acquisition for the product

• Zero dilution
Details of the Deal Key takeaways and Learning

Year: 2016 •Huge success and the loan was filled in minutes
Type of crowdfunding: Debt/P2P Lending
Amount: 25k€ • Thanks to building a public track record and deliver “tangible”
Interest rate: 9.07% financial returns the terms kept getting better and more investors
Maturity: 18 months joined the bandwagon • All the financings required personal
Guarantees: Personal Guarantee from founders guarantee initially. Now it would be waived by Raize
Use of funds: Working Capital
# Investors: 138 • It was and still is expensive versus traditional SME bank financing
(Europe)

• More degrees of freedom in the use of funds vs traditional

financing

Social Impact Bond (SIB):

What is it? Why using it?

A Social Impact Bond (SIB) is an outcome • The reasons mentioned previously in the participatory budget
based contract, whereby an investor funds a instrument plus
social service provided by a service provider.
If the service achieves the expected outcomes • Longer projects because of reimbursement feature • Outcomes
(usually linked to a cost benefit analysis) the based certifies track record and increases a layer of credibility
investment is reimbursed by a third party.
• The instrument has a lots traction with corporates, foundations and
Most commonly, it is a public-private governments
partnership which funds effective social
services through a performance-based • The cost benefit analysis to society should be positive so in theory
contract.
Details of the Deal Key takeaways and Learning

Year: 2017 • In our case the use of EU Structural Funds to fund SIBs created a
Municipality: Fundão mess. We achieved 100% of the goals, yet the payment process was a
Reskill unemployed people in a full time pain and we received less money than it was contractualised /
intensive 14-week coding bootcamp approved
Amount: 723k€ (Budget) 650k (Approved)
# Bootcamps: 9 • Huge bureaucracy and subjective/unstable reimbursement
# Reskilled: 174 procedures
Execution time: months
Cost of a NEET in PT (Year): 8,610€ • Payment delays from EU Funds Management National Authorities
Budgeted Service Price: 4,000€
• Traditional SIBs should not suffer from these problems

Equity with Buy-Back Option (Impact Fund):

What is it? Why using it?

Equity with a buy back option whereby the • The equity and debt-like features allow an initial dilution that can be
issuer, or certain shareholders, have the reverted at a future date
option to buy back the equity at a pre-
determined price mechanism • Capitalizes the company and improving credit ratios allowing to
raise more debt
Details of the Deal Key takeaways and Learning

Year: 2018 • The equity investment with buyback option allowed the
Investor: Fundo Bem Comum (Social Impact capitalization of the company maintaining the possibility of the
Fund) original founders to revert the dilution
Ticket: 350k
Stake: (can’t disclose; good terms for • The capitalization allowed for additional fundraising through debt
founders) crowdfunding
Buy-back option: (can’t disclose; good terms
for founders) • The company exercised the option to buyback in July 2019 before
Social metrics: # of reskilled people the new investor entered
Use of funds: Investment in bootcamp
locations and product development

Equity + Mezz (PE Fund):

What is it? Why using it?

Investment that combines equity • The equity and debt-like features allows capitalisation while mitigating
investment with mezzanine financing total dilution

In our case the mezzanine financing bucket • Set the dilution valuation of the debt-like instruments to a future date
was a Convertible Bond with low interest and set a milestone linked to strategic objectives that are somewhat
rate under your control

The interest rate has a step up if EBITDA • PE funds and these type of investments allows for larger tickets and
reaches a certain trigger more ambitious plans

The Convertibility mechanism is subject to

a milestone in 2023 linked to revenues
Details of the Deal Key takeaways and Learning
Year: 2019
Investor: Fundo Revitalizar (PE Fund) • All sorts of political and protective provisions such as anti dilution,
Ticket: 1.5M drags and tags that reduce management degrees of freedom and
Equity: 800k increases regular communication
Convertible bonds: 700k
Stake: (can ́t disclose) • First time we have real reporting post-investment
Social metrics: N.A.
Use of funds: Continue bootcamp national • The Fund has a Board observer
and international expansion and further
product development • Our conversion mechanism should be simpler/straightforward to
facilitate future rounds

• The capital and milestone increased the pressure to deliver faster

results and higher growth

What would we do differently?

Our Advice to Impact Founders

Our Fundraising Do’s

Our Fundraising Don’ts
 Class 4 – Marketing & Growth:

Introduction

What’s Growth Marketing afterall?

Growth Marketing is a data-driven approach to marketing

that focuses on driving sustainable growth for a business,
combing Marketing, Product Development, UX and Data
to identify and optimize key drivers of growth.

The primary goal of Growth Marketing is to identify and

implement strategies that will drive customer Acquisition,
Retention, and Revenue growth, with Lower costs and
higher ROI & LTV..

Key Concepts of Growth Marketing

The ever so famous “Marketing

The Pirate Funnel
Funnel”!

The marketing funnel is a model that

describes the stages a customer goes
through from initial Awareness of a
product or service to making a
Purchase.
The stages of the funnel typically
include:
Awareness, Interest, Desire, and
Action (AIDA).
Businesses can use the funnel to
identify areas of their marketing and
sales process that need improvement
and to optimize their efforts to move
customers through the funnel.
 Key Concepts of Growth Marketing

Growth Loop or Flywheel The Growth Loop

Input: What you use to gain new
users. This can be anything, from
organic search traffic to paid
advertising.

Action: Providing value to

customers so they continue to use
your products. This can be done in
several ways such as offering a free
trial, providing a great user
experience, or having features users
find valuable.

Output: Increased sales and more

customers. This means that the new
users you gain through your input
channels lead to more sales,
resulting in even more users.

Key Concepts of Growth Marketing

Growth Loop or Flywheel Pinterest Growth Loop

LinkedIn’s growth loop is powered by its

network effect. The more members join
LinkedIn, the more valuable the platform
becomes for users and businesses.
LinkedIn’s growth loop is based on four
input channels: organic search traffic, word-
of-mouth, social media, and paid
advertising.
LinkedIn attracts new users through these
channels and provides value by helping
them connect with other professionals
worldwide, find jobs, and grow their careers.
This eventually leads to increased sales and
more customers, which completes the loop.
 Key Concepts of Growth Marketing

Growth Loop or Flywheel Pinterest Growth Loop

In Pinterest's growth loop, the user finds free

content via search engines and then signs up for
the platform.
When a piece of content is shared or repinned, it is
packaged for search engines and appears as high-
quality content that a new user can discover, and
the cycle continues.

Key Concepts of Growth Marketing

In the funnel you measure ROI In the loop you measure LTV
Return on Investment (ROI) == Lifetime Value (LTV) ==

Net Return Average Revenue per Account (ARPA) x Gross

Cost of Acquisition (CAC) Margin / Churn Rate

Key Concepts of Growth Marketing

The North Star Metric North Star metric examples

A single metric that a business uses

to measure its overall success and
progress towards its goals. It is the
one metric that matters most to
the business and is used to align all
teams and departments towards a
common objective.
By focusing on the North Star
Metric, businesses can ensure that
all efforts are aligned towards
driving sustainable growth.

Key Concepts of Growth Marketing

Combining Funnel, Loop and North Star Customer journey funnel, or Bow Tie funnel.
 metric

These principles work together towards

sustainable growth:
The funnel helps businesses to identify areas
of their marketing and sales process that
need improvement and to optimize their
efforts to move customers through the
funnel.
The growth loop helps businesses generate
sustainable growth by continuously
acquiring, activating, retaining, and referring
customers.
The North Star Metric helps businesses to
align all teams and departments towards a
common objective and to measure progress
towards their goals.

Successful Case Studies:

Airbnb implemented Growth Marketing methodologies combining data-driven insights,

customer-centricity, and experimentation.

Product-Market Fit: They’ve identified and focused on a unique value proposition, offering
cost-effective, authentic, and localized accommodation experiences compared to traditional
hotels.

User Experience Optimization: Continuously improved its website and app interface to
make it user-friendly, easy to navigate, and visually appealing.

Referral Program: Launched a referral program, incentivizing existing users to invite

friends to join the platform.

Localization: Adapting the platform to cater to local languages, customs, and payment
methods.

Content Marketing and SEO: Developed informative content and SEO techniques to
improve its rankings, making it easier for potential customers to find them.

Influencer Marketing: Partnered with influencers, showcasing unique properties and

experiences to a broader audience.

Data-Driven Decisions: Using data analytics to understand user behavior, preferences, and
market trends.
 Experimentation and A/B Testing: Airbnb employed a culture of experimentation,
conducting A/B tests on various elements of its platform and marketing.

The most successful Referral Program ever

Referral Program: Airbnb ́ s The program became the

benchmark for referral, it’s success comes mainly from:
 Incentivizing both sides: The program rewarded both
the referrer and the referred user.
 Personalization: Designed to feel personal, as users
were encouraged to share the platform
 Seamless integration: Integrated into its app and
website, making it easy for users to invite friends.
 Clear communication: Benefits of the referral program
to its users,
 Continuous improvement: Constantly analyzed the
data and improved effectiveness.
 Virality: The program was structured in a way that
allowed it to grow organically

Leveraging an existing powerful channel

Dropbox used email signature as a growth strategy by

adding a "Get Dropbox" call-to-action (CTA) to the
bottom of every employee's email signature.

 Amplifying reach: Email is one of the most

common forms of communication, adding a "Get
Dropbox" CTA to every employee's email
signature increased visibility of the CTA to a
wider audience.

 Personalization: The email signature strategy

made use of personalization to increase the
likelihood of conversion.

 Low cost: Email signatures are a low-cost growth

strategy that doesn't require any additional
resources or budget.

 Measuring results: Dropbox was able to easily

measure the effectiveness of the email signature
strategy by tracking the number of clicks on the
"Get Dropbox" CTA in email signatures.

The inventors of Inbound Marketing

 Bein an inbound marketing platform
themselves, Hubspot used it ́ s own
product and strategies to grow. They
believed that by creating valuable content
and providing a great customer
experience, they could attract, engage,
and delight potential customers.

 Created Lead Magnets: Hubspot

created a blog, ebooks, webinars,
and offering free tools and
resources, such as their marketing
and sales software, as lead
magnets to attract potential
customers
 Email marketing: To nurture leads and stay
 Optimized website for SEO: top-of-mind with potential customers. They sent
Creating high-quality content and relevant and personalized emails to their
having a structure that is perfectly subscribers based on their interests and
adapted for search engines. behaviors.

Personal Case Studies

The 3X North Star metric

In Inviita we did not have a marketing budget that

allowed us to Acquire users, so we’ve create a North
Star metric that lead us to implement a growth mentally
across departments. Using the 3X metric: “Every user
needs to bring 3X more!” we’ve developed:

 Social Features: Every output was shareable on

social media.

 Co-creation: Lists could be created alone or in

groups

 SEO and cross platform: Every list created on

the App automatically created a web based
version that could be shared with those who did
not had the app installed.

 Referral Program: Inspired by Airbnb we’ve

created a similar program in which both sides
were rewarded for referrals.
 With this, we cut down Overall CAC by 400% vs the
Paid CAC.

The importance of Localization

eDreams was struggling to grow in the Dutch market,

and a simple product development has made us grow
+300%YoY and take +10pp in market share in 1
year!

The team had done all the translation and adaptation to

of the product to the market, but somehow the
integration of this payment method was not seen as
priority, because they did not look at the market share
data of payment methods. The problem was that users
were dropping at checkout.

We looked at the data and found that iDeal had 98%

market share in the online payment methods industry in
the Netherlands. As soon as we had it to the list of
options and highlighted it, drop rates reduced
dramatically and revenue skyrocketed.

Finding growth in technicalities

Ironhack was having trouble creating leads they

could actually nurture and push down the funnel,
despite growing lead generation by almost 100%
YoY, because almost 50% of the leads would not
tick the box:

Monthly optin-leads evolution

By changing the T&C’s to a pre-contractual

agreement rather than the former submission, users
would be automatically opted-in to be contacted, as
long as they fill out and submitted the form and
agreed with the T&C’s. This solved the issue and
kept compliance with the GDPR law. This change
 caused a 40% MoM growth overnight, in optin-
leads.

Failure Case Studies

“It has always been like this!”

Kodak, the photography company that was once a

household name, was close to bankruptcy.

 ● Slow to adapt to digital technology: Despite

inventing the first digital camera in 1975, Kodak
was slow to recognize the potential of digital
photography.

 ● Uncompromising business model: Built

around selling film, paper, and chemicals, they
were reluctant to deviate from this model even as
the market was changing.

● Lack of user centricity: The company had a

highly centralized and hierarchical organization,
which meant that decisions were made at the top
without much input from customers or employees.

● Poor execution: Despite some good ideas, they

struggled to bring them to market effectively, partly due
to their complex organizational structure, but also lack of
focus on key priorities and a tendency to spread
themselves too thin.

They could have been Netflix

Blockbuster, was once the leader in the home video

rental industry, which made them the perfect brand to
transition to streaming.
  ● Lack of Innovation: The business model
remained largely unchanged for decades,
relying heavily on brick-and-mortar stores for
movie rentals.

 ● Slow to Embrace Digital: Thyi were slow

to transition to digital marketing, such as social
media and email. This meant that the company
missed out on potential customers who were
turning to the internet to find and rent movies.

● Poor Customer Experience: Long lines,

out-of-stock movies, and late fees contributed
to customer dissatisfaction, leading them to
seek out more flexible rental options.

● Ineffective Loyalty Programs: Very poor

compared to subscription-based services that
offered unlimited rentals for a flat monthly fee.

Implementation Strategies

Tools & Resources

 Google Analytics Academy: Online training platform that provides free courses and
training programs on Google Analytics. The Academy offers courses for different
 levels of expertise, from beginner to advanced, and covers various aspects of Google
Analytics, such as data analysis, tracking, and reporting.

 A/B Testing Tools: There are many A/B testing tools available that can help you
optimize your website and marketing campaigns. Some popular options include
Optimizely, Google Optimize, and VWO.

 Email Marketing Platforms: Email marketing is still one of the most effective ways
to reach and engage with your audience. Some popular email marketing platforms
include Mailchimp, Campaign Monitor, and Klaviyo (for eCommerce).

 Social Media Management Tools: Social media is a crucial component of growth

marketing. You can use social media management tools like Hootsuite, Later, and
Iconosquare to schedule posts, monitor engagement, and track your social media
performance.

 Customer Relationship Management (CRM) Software: A good CRM system can

help you manage your customer relationships and sales processes more effectively.
Some popular options include Salesforce, HubSpot, and Zoho CRM.

 Growth Marketing Blogs: Reading up on growth marketing strategies, tactics, and

best practices can help you stay ahead of the curve. Some popular blogs to follow
include GrowthHackers, Neil Patel's blog, and the HubSpot blog

What it takes to become a CMO

Class 5 – Team, Execution and Culture:

Microsoft cultural pivot

 In a radical change from the past, it would become a people company instead of a
product company.

“He has allowed ideas to bloom and be considered,” says Terry Myerson, the executive in
charge of Windows, who has been with the company since 1997.

Satya Nadella was brought as CEO in to restore the company’s long-dormant reputation for
innovation and creativity. Before Microsoft tried to lock users into its products by refusing to
collaborate with competitors.

That was the state of affairs when Nadella took over. He scrapped that, casting Microsoft
instead as a company capable of working across any platform—even those controlled by
competitors. He has forged new partnerships with companies Microsoft once considered
enemies.

Nadella identified a few vital behaviours that would have the most overall impact. To begin
with, he invoked a growth mindset; which was earlier seen as a fixed personality trait and
not a behaviour. Today it’s the latter. This also cascaded to providing air cover for people
when they get something wrong due to that growth mindset.

Culture is all about...

Actions and behaviours within an organization ultimately define its culture, rather than
written statements or values

Action, accountability, and consistency to drive success and sustainability within their
organizations

How culture and team changes with growth

“Family” Stage (1 to 9 employees) “Village” Stage (100s of employees)

The CEO focuses on creating a growth-oriented
The CEO is often a product specialist —personally culture and developing the leadership skills of the
drives growth and is involved in almost every decision. executive team.
“Tribe” Stage (10s of employees) “City” Stage (1,000s of employees)
CEO transitions to a high-level position that focuses
CEO begins to delegate, hire key employees and on corporate communications and the larger strategic
manage the people who are driving growth. picture.

Characteristics of new ventures at each stage

It ́s all about having the right people

How to attract / hire the best talent

How to retain the best talent

How to constantly adapt and rebuild the team

Why execution really matters

Capacity to deliver results under tough circumstances

Limited resources
Achieve results
Adapt
Scale
Survive
Persistence
Get things* done

EXAM WILL PROBABLY FOCUS ON CHALLENGES & RECOMMENDATIONS:

STARTUPS
Challenges

1. Lack of funding: Startups often struggle to secure funding, especially in the early stages
of development.
 Seek out funding from a variety of sources, such as venture capitalists, angel
investors, crowdfunding platforms, and government grants.
 Build a strong pitch deck and network with investors to increase the chances of
securing funding.
 Bootstrap the business by keeping costs low and generating revenue from early
adopters.
2. Building a talented team: Hiring and retaining top talent is a challenge for startups, as
they often have limited resources to offer.
 Offer equity or stock options to attract top talent who are willing to take a risk on
the startup.
 Focus on building a strong company culture that aligns with the values of
potential hires.
 Use freelancers, contractors, or outsourcing to fill gaps in talent until the startup
can afford to hire full-time employees.
3. Finding a market fit: Startups need to find a market fit for their product or service to be
successful.
 Conduct market research and surveys to understand the needs and pain points of
potential customers.
 Use lean startup methodology to develop and test a minimum viable product
(MVP) with early adopters.
 Continuously iterate and pivot based on customer feedback.
4. Managing growth: Rapid growth can be difficult to manage, and startups may struggle
to scale their operations.
 Develop scalable business processes and systems that can handle increased
demand.
 Hire a team that has experience scaling businesses and managing rapid growth.
 Seek out mentorship or advisory services from experienced entrepreneurs who
have successfully scaled businesses.
5. Competition: Startups face competition from established companies and other startups.
 Identify unique selling propositions (USPs) that differentiate the startup from
competitors.
 Focus on niche markets or underserved customer segments that the competition
is not targeting.
 Monitor the competition closely and continuously innovate to stay ahead.

Recommendations

1. Develop a solid business plan: A business plan can help a startup focus on its goals and
identify potential obstacles.
2. Seek out funding: Startups can seek funding from a variety of sources, including venture
capitalists, angel investors, and crowdfunding platforms.
3. Build a talented team: Startups should focus on attracting and retaining top talent by
offering competitive salaries and benefits, as well as a positive work environment.
 4. Test and iterate: Startups should test their product or service with potential customers
and iterate based on feedback.
5. Network and seek advice: Startups can benefit from networking with other
entrepreneurs and seeking advice from mentors and advisors.

SMEs
Challenges

1. Financial management: SMEs may struggle with financial management, including cash
flow management, accounting, and tax compliance.
 Use cloud accounting software to manage finances more efficiently and
accurately.
 Hire a dedicated accountant or bookkeeper to manage finances and provide
advice.
 Seek out funding or financing options to improve cash flow management.
2. Scaling operations: SMEs may struggle to scale their operations while maintaining
quality and profitability.
 Implement lean processes and systems to improve efficiency and reduce waste.
 Outsource non-core functions or hire additional staff to handle increased
demand.
 Use automation or technology to streamline operations.
3. Competition: SMEs may face competition from larger companies with greater resources.
 Conduct competitor analysis to understand the strengths and weaknesses of
competitors.
 Develop unique value propositions that differentiate the SME from competitors.
 Focus on providing exceptional customer service and building strong
relationships with customers.
4. Technology adoption: SMEs may struggle to adopt new technologies that can improve
their operations.
 Partner with technology vendors to adopt new technologies that can improve
operations.
 Train employees on how to use new technologies effectively.
 Use digital marketing and e-commerce platforms to reach new customers.
5. Talent acquisition and retention: SMEs may have difficulty attracting and retaining top
talent.
 Offer competitive compensation and benefits to attract top talent.
 Create a positive work environment that aligns with the values of employees.
 Provide opportunities for professional development and career growth.

Recommendations

1. Invest in financial management: SMEs should invest in accounting software, hire a

dedicated accountant or bookkeeper, and seek advice from financial advisors.
2. Focus on efficiency: SMEs can improve efficiency by automating tasks, outsourcing non-
core functions, and streamlining processes.
3. Differentiate from competitors: SMEs can differentiate themselves from competitors by
focusing on niche markets, offering unique products or services, or providing exceptional
customer service.
 4. Embrace technology: SMEs can adopt new technologies to improve their operations,
such as cloud computing, automation, and digital marketing.
5. Prioritize talent management: SMEs should focus on creating a positive work
environment, offering competitive compensation and benefits, and providing
opportunities for professional development.

BIG ENTREPRISES
Challenges

1. Innovation: Big enterprises may struggle to innovate due to bureaucracy, risk aversion,
and a focus on maintaining existing operations.
 Create a dedicated innovation team or division that is separate from the main
business to focus on new ideas and experimentation.
 Partner with startups or invest in venture capital to access new ideas and
technologies.
 Implement processes that encourage experimentation and risk-taking, such as
hackathons or innovation labs.
2. Talent retention: Big enterprises may struggle to retain top talent, as employees may
feel stifled by the corporate environment.
 Provide opportunities for employees to work on new projects and initiatives
outside of their main responsibilities.
 Create a positive work environment that values innovation and encourages
employees to think creatively.
 Offer competitive compensation and benefits to retain top talent.
3. Agility: Big enterprises may struggle to be agile and respond quickly to changes in the
market or industry.
 Break down silos and encourage cross-functional collaboration to improve agility.
 Empower employees to make decisions and take ownership of projects.
 Adopt agile methodologies such as Scrum or Kanban to improve flexibility and
responsiveness.
4. Legacy systems: Big enterprises may have legacy systems that are difficult to upgrade or
replace, which can hinder innovation and efficiency.
 Develop a modernization plan to migrate legacy systems to cloud-based or
modern software platforms.
 Partner with technology vendors or startups to access new technologies and
innovation.
 Use agile methodologies to incrementally replace legacy systems.
5. Regulation: Big enterprises may face regulatory challenges in highly-regulated industries,
which can limit growth and innovation.
 Monitor regulatory changes and adapt business operations accordingly.
 Partner with industry

Recommendations
 1. Foster innovation: Big enterprises can foster innovation by creating dedicated
innovation teams, collaborating with startups, and implementing processes that
encourage experimentation and risk-taking.
2. Prioritize talent management: Big enterprises should focus on creating a positive work
environment, offering competitive compensation and benefits, and providing
opportunities for professional development.
3. Embrace agility: Big enterprises can improve agility by breaking down silos, empowering
employees to make decisions, and adopting agile methodologies.
4. Modernize legacy systems: Big enterprises can modernize legacy systems by adopting
cloud computing, migrating to modern software platforms, and partnering with
technology vendors.
5. Navigate regulation

As for preparing for your exam, it would be helpful to review the key concepts and

principles of new venture management, such as identifying and evaluating

opportunities, developing business plans, securing funding, building a team, managing

growth, and adapting to changing market conditions. You may also want to review case

analysis frameworks, such as SWOT analysis or Porter's Five Forces, to help you

identify the challenges faced by the company and develop recommendations.

New Venture Management – Short Summary

 Class 1:
- Entrepreneurship fosters innovation, job creation, growth and economic development.
- What is a startup?
- Term typically refers to a small, early-stage company designed to grow fast
- Newly founded does not make a company a startup
- Does not have to work on technology, take venture funding or some sort of
“exit”
- Only essential thing is growth

Types of Ventures:

Types of Ventures II:

Non profit - Organizations that address a social or environmental issue. All funds generated are directed
towards beneficiaries of their social issue focus. Funded by charitable donations from companies, individuals, or
governments. (E.g.: Greenpeace)

For profit - Businesses that operate with the primary goal of generating profits for their owners or shareholders.
Profits are often reinvested in the business or distributed to shareholders as dividends. (E.g.: Amazon)

Social (hybrid) venture - Organizations that combine for-profit businesses with a primary focus on addressing
social or environmental challenges. Their goal is to create a positive impact on society while also generating
revenue and profits to sustain their operations and scale their impact. (E.g.: Patagonia)

Startup vs mature company Traits of a successful Entrepreneurial mindset

Roller coaster VS Big Ship entrepreneur …is solution oriented, adaptable
Determination, risk-taking, and anti-fragile & is needed not only
Growth, risk profile, innovation & optimism, problem solving, in startups, but also in governments,
corporations, non-profits or academic
speed VS organizational structure, curiosity, confidence,
institutions
funding & culture adaptability to change,
persistence
 - Which is the most important factor for a startup to succeed?

Timing (Bill Gross) Build a product that people love so much they tell their
friends about it (Sam Altman)
Capacity to build a monopoly (Peter Thiel) Resilience and capacity to adapt (Mike Tyson)

Class 2 – Product & Innovation:

- From problem identification to MVP

Types of products 3 core You need a business strategy 2 main stages of

Physical (Tangible items elements Strategic initiatives a company pursues to create a new venture:
such as smartphones, cars, of each value for the organization and its stakeholders and Before product
or clothing) – digital startup gain a competitive advantage in the market market fit
(software, eBook, or video Team
courses) – services Product How can my business create value for customers? After product
(Intangible offerings such Market market fit
as consulting or legal How can my business create value for my
advice) employees?
How can my business create value by collaborating
with suppliers?

PMF fit is the degree to which a product satisfies the needs and wants of its target market 
point at which product's features, benefits, and value proposition are aligned with the needs
and wants of a specific group of customers, resulting in strong demand for the product. PMF
is the sweet spot where a company has created a product that meets a real customer need and
is well-positioned to capture a significant share of the market

Achieving PMF is critical to the success of a business, as it validates the market need for the
product and creates a foundation for long-term growth

We generally associate the concept with marketing and product management, in reality it is a
shared responsibility across the all company
 - How to measure PMF?
Mix of both qualitative (word of mouth, frequency of calls from the media or industry
analysts, coverage) and quantitative (NPS score, churn rate, growth rate, market share)
metrics. Whatever methods your team uses to gauge success, you will want to include a mix
of both

Class 3 – NVM Funding

Bootstrapping: starting a business from scratch using personal finances and building it up
with little or none outside investment

Reasons to fundraise: Funding options vary according to Challenges of external funding:

Growth and expansion several factors: Dilution
Talent acquisition and retention Company type (For profit | non Decision making
Marketing and customer acquisition profit | social venture) Pressure to achieve results
Engage your community Growth potential and founder(s) Potential misalignments of
Research and development mindset (Lifestyle | Growth | interests between founders
Financial stability Hypergrowth) and investors
Credibility and partnerships Venture stage (Idea / pre revenue | Time consuming process
Mentorship and guidance Early stage | Growth stage | Legal complexity and cost
Mature)
Industry and sector (Capital
intensive | Not capital intensive)

Class 4 – Growth, Sales & Marketing

“A startup is a company designed to grow fast. Being newly founded does not in itself
make a company a startup. Nor is it necessary for a startup to work on technology, or take
venture funding, or have some sort of ‘exit’ The only essential thing is growth. Everything
else we associate with startups follows from growth.”

Growth mindset  “Having a growth mindset means believing that a person ́s abilities aren
́t innate but can be improved through effort, learning, and persistence. A growth mindset is all
about the attitude with which a person faces challenges, how they process failures, and how
they adapt and evolve as a result.

In business, the ability to learn and grow after a setback is one of the keys to success. People
with a growth mindset are always looking for ways to improve, whether that means learning
new skills, trying out new strategies, or making big changes to how they work. When they
encounter a setback, a person with a growth mindset can recover more quickly and might
view unanticipated problems not as barriers to progress but as opportunities for growth.”

Growth mindset characteristics

Take risks Overcome challenges Learning from failure

 Continuous improvement Adaptability Resilience

Maximizing Growth

“If you want to find your best business model, you should try to design one that minimizes
growth limiters:

1) Product/market fit 2) Operational scalability

And you should maximize four key growth factors:

1) market size (TAM) 2) distribution 3) high growth margins 4) network effects.

The first three growth factors are important, but network effects play a key role in sustaining
growth long enough to build a massively valuable and lasting franchise. The increasing
importance of network effects is one of the main reasons that technology has become a more
dominant part of the economy.”

How to build a sales strategy

Consider targeting a niche market. Put together well-constructed, Be strategic in how you put your
specific buyer personas. tech stack together.
Identifying a target market is one of the
— if not the — most important actions Once you know who you want to A well-constructed tech stack has
any startup can take. If you try to appealsell to, you need to piece together transitioned from "nice to have" to
to everyone, you run the risk of a concept "need to have" in the modern sales
spreading yourself too thin and diluting of how you're going to sell to landscape. Even the most skilled
your brand identity. them. That starts with you startup sales team can only get so
creating detailed buyer personas. far if they're not supported by solid
Your target market sets the tone for your Buyer personas are essentially technology.
messaging, your marketing efforts, the archetypes of your ideal prospects
sales methodology you subscribe to, and that guide your sales and
how you structure your sales process. marketing efforts.

Sales step by step

Identify target audience Value proposition Build relationships

Find the right channel Use the right tools Use growth tactics to leverage sales

Marketing and PR key definitions

Growth Marketing - Online advertising, email Product Marketing - Customers testimonials, feature
marketing, SEO/content marketing, viral marketing requests, user testing, interviews, competitor analysis,
and funnel optimization collateral generation and case studies
Brand Marketing - Brand awareness and perception, Public relations and communication - Story
logos and other design elements All marketing efforts development, press, events, product reviews, product
ultimately contribute to the company brand award programs
Class 5 – Team, Execution & Culture
- Actions and behaviors within an organization ultimately define its culture, rather than
written statements or values.
- Action, accountability, and consistency to drive success and sustainability within their
organizations

- How culture and team changes with growth:

- “Family” Stage (1 to 9 employees)
The CEO is often a product specialist —personally drives growth and is
involved in almost every decision.
- “Tribe” Stage (10s of employees)
CEO begins to delegate, hire key employees and manage the people who are
driving growth.
- “Village” Stage (100s of employees)
The CEO focuses on creating a growth-oriented culture and developing the
leadership skills of the executive team.
- “City” Stage (1,000s of employees)
CEO transitions to a high-level position that focuses on corporate
communications and the larger strategic picture.

- It’s all about having the right people: how to attract / hire the best talent, retain it
and how to constantly adapt and rebuild the team.
 Exam responses last year

Question #1: Are new ventures smaller versions of established firms? Compare both. Can
Simone’s venture be seen as an established venture? If not, how can it become one?

New ventures are definitely not a smaller version of established firms.

These two kinds of organizations are different in terms of resources and establishment.

Internally, an established firm has higher reliability in relationships, more cumulative

experience and processes and routines, and stronger relationships among members. That as
well as having access to many more financial resources. The combination of these factors
make an established business very structured in management terms.

In contrast, in a new venture, management is more chaotic. As there is no established

culture, it is very important for the employees to get along both personally and
professionally. That is also a symptom of another problem, communication and
socialization. Since smaller ventures need a different mentality, relying on effectual
thinking, improvisation and bricolage, it sometimes leads to a lack of well-defined roles and
responsibilities resulting in employees with multiple roles, meaning the employees do not
have as much time to socialize or communicate and can sometimes feel <lost=. This all
comes with fewer disposable financial resources.

Established ventures also have a greater ability to attract new talent, whereas new ventures
struggle with legitimacy problems.

Although Simone’s venture has seen sustained growth in sales, it is still very young and
cannot be treated as an established venture. The reason for this is its viability has not been
fully proven. The growth of established firms is about sustaining viability, new venture
growth is about obtaining viability.

Simone should focus on the strategic growth of the company and make it viable for the long
run. That means she should focus on diversifying, innovating, and ensuring the viability
and efficiency of the already existing BLU, instead of trying to expand.
The second thing she should do is delegate. To distribute responsibilities to different
departments. This indirectly also creates a company culture which should be aligned with
the vision of the company and should focus on the cooperation and wellbeing of everyone
in the company.
The third thing she should do is market research. Blu has been alive for some years and
Simone has to find the customers she is currently attracting, why, and how she is attracting
them to focus resources appropriately. In a nutshell, Paul fell asleep in the NVM class and
gave bad advice. Run it like a start up in growth phase
CHATPGT:
New ventures are not necessarily smaller versions of established firms. While both
types of organizations may have similar goals, such as generating revenue and
creating value for customers, there are several key differences between them.

New ventures are typically smaller, younger, and less established than established
firms. They may be founded by entrepreneurs who have identified an opportunity in
the market and are looking to create a new product or service to meet that need.
New ventures often operate in dynamic and uncertain environments, where there is a
high degree of risk and uncertainty associated with their activities. As a result, new
ventures often have a more entrepreneurial culture, with a greater emphasis on
creativity, innovation, and risk-taking.

Established firms, on the other hand, have already established themselves in the
market and may have a more established business model and customer base. They
tend to be larger, with more resources and established structures and processes in
place. Established firms may be less focused on innovation and more focused on
maintaining their position in the market and optimizing their operations for
efficiency and profitability. They also tend to have more established relationships
with suppliers, customers, and other stakeholders.

While there are certainly similarities between new ventures and established firms,
such as the need to generate revenue and create value for customers, there are also
important differences between the two. New ventures often have to navigate a more
uncertain and dynamic environment, while established firms may face challenges
related to maintaining their position in the market and adapting to changing
customer needs and preferences. Both types of organizations can be successful, but
they require different strategies and approaches to achieve their goals.
Question #2:

Yes. The more people and geographic expansion, the more children he can impact. As long
as his goal is not profit, he should accept the partnership. This comes with other tied costs
and risks. It is much easier to manage a company of 1 when the company is relatively small.
There is more flexibility and very efficient decision making. Alongside that it is very easy to
form in terms of legal costs. The downsides are unlimited liability, if the company fails it will
sink its owner, high chance of burnout because of the high amount of work and attention a
business requires, less available capital and lower chances of getting long term investment
and a very limited viewpoint and experience. On the other side, a partnership increases the
sources of capital and credit, it is easier to get investment from investors. The workload is
shared, which allows for more development in different areas simultaneously and faster
growth. The profit, liability, and risk are also shared, which if the company is successful,
damages the original founder because of a dilution of his shares, but also spreads the risk in
case it fails. A partnership, however, also has some downsides. Decision making is slower
because more people are involved. To avoid that hurdle, it is key to ensure a synergy
between existing members and the new partners. Essentially, the decision for Thomas to
enter a partnership or not at this stage boils down to the objective of the company. If
Thomas is considering an exit strategy where the company will be absorbed by another
entity, then it makes sense to stay alone to reap the full benefit. However, if the objective is
to create impact, help children, and continue at the company, he should enter a
partnership. <If you want to go fast, go alone. If you want to go far, go together.

CHATGPT
Deciding whether to enter a partnership is a strategic decision that depends on
several factors, including the company's goals, capabilities, and resources, as well as
the potential benefits and risks of the partnership. Here are some factors to consider
when deciding whether to enter a partnership:

When to Enter a Partnership:

1. Complementary Capabilities: A partnership can be a good idea if the partner

has complementary capabilities that can help the company achieve its
strategic goals. For example, a technology company might partner with a
marketing firm to better promote its products.
2. Shared Goals: A partnership can also be beneficial if the partner shares the
company's goals and values, and is willing to work collaboratively towards
achieving those goals.
3. Access to Resources: A partnership can provide access to new resources, such
as expertise, technology, and funding, that the company may not have on its
own.
4. Shared Risk: A partnership can help share the risk of a new venture or project,
allowing the company to pursue opportunities that might be too risky or
expensive to pursue alone.
When Not to Enter a Partnership:

1. Misaligned Goals: If the partner's goals or values are not aligned with the
company's, or if the partner is not committed to working collaboratively
towards shared goals, then a partnership may not be a good idea.
2. Conflicting Capabilities: If the partner has conflicting capabilities, or if their
capabilities do not complement the company's own, then a partnership may
not be beneficial.
3. Limited Resources: If the company has limited resources, it may not be able to
devote the necessary time, energy, and resources to a partnership, and may
be better off focusing on its own core competencies.
4. Intellectual Property Issues: If the partnership involves the sharing of
intellectual property or other sensitive information, the company needs to
ensure that it has adequate protections in place to safeguard its assets.

In general, a partnership can be a good idea if it helps the company achieve its
strategic goals and provides access to new resources, expertise, and funding.
However, it's important to carefully evaluate potential partners, and to ensure that
the partnership is aligned with the company's goals and values, and that the risks
and benefits of the partnership are carefully considered.
Question #3:

A company is run by its people and happy people will make a successful company. A new
venture has a few functions when it comes to HR; Staffing, compensation, training, and
performance management. Start-ups face several challenges when staffing and
compensating. Among these are things like, no establishment, lack or resources, lack of
network, no trust, etc. The challenge for these ventures is to find the best talent for
minimal cost. This is a contradicting objective because the best talent is also usually the
most expensive. To counter that, ventures need to rely on other reward systems. Some
companies offer a lot of promise and growth, and the staff might be interested in long term
development. Others offer shares of the company or decision-making power. Personally, I
think the best incentive is peace of mind. If the environment you provide is comfortable and
your work creates an impact you can be happy with, the right talent will join because they
will feel good about what they do and where they do it.

The next function is training. No talent comes perfect, so everyone needs a little orientation
to get a feel of how things work. In Startups, it is very common to use the <mentor
method= where you assign a mentor to the new recruit and they follow them around
observing and aiding. Because new ventures have very poorly defined roles and employees
tend to end up multitasking, one of the most effective training methods is the <learn by
doing=, where you assign the newcomers small tasks for them and slowly give them a feel
for the company. One very important part of training is socialization. Getting to know the
team, departments and your place in the organization.

The next point is performance management. It is crucial to evaluate the work your
employees are doing and to motivate them to achieve greater feats. This is typically done
through goal setting. If communication is clear, expectations are understood, and the scope
and quality of work will be reflected. People need positive feedback and performance
appraisal is essential to communicate performance expectations and reinforce desired
behaviors. Essentially, if your employees are not sure what they are supposed to be doing or
if they are doing it well, progress will be slow and chaotic. Managers of young or small firms
prefer informal ongoing communication and feedback to highly formalized performance
appraisal procedures, however that is not always helpful because it can lead to blurry roles
and responsibilities.

To sum up. A company is run by its people and happy people will make a successful
company. Try to make your employees happy by providing flexibility, inclusivity, clear
communication and teamwork, and a clear and common goal. <Success is not the key to
happiness. Happiness is the key to success. If you love what you are doing, you will be
successful
Question#4 What is the relationship between profitability and growth?
Profitability and growth are both essential for a business to survive and remain desirable to
investors and analysts and in order to be successful and financially viable. Profitability is
critical for a business's existence, It plays a big part of at the start of any business and is the
backbone of the business, but long-term success necessitates expansion and growth.
Profitability must be determined and prioritized from the start of a firm. Without it, there is
no chance to grow. Profit is the primary goal of every business, and it may be the only
source of financing for a startup that lacks investors or funds. The net profit is calculated
after all expenses associated with the invention, manufacture, and sale of things have been
subtracted, or in simpler terms, revenue minus costs. If Revenue is below costs and this
situation is sustained, collapse is unavoidable.

Although determining a company's current and future profitability is important when

analyzing it, no business can survive for long without making a profit. The tricky part is, to
reach profitability, you need growth. New venture growth is measured by cash flow, net
income, client base, market share, sales, and employment. Growth is simply an expansion,
allowing it to increase in size, expand its market, and ultimately become more profitable.
Even if a company's current profitability is satisfactory, growth opportunities should always
be pursued because they boost total profitability and keep analysts and potential (or
current) investors interested in the company.

However, understanding a company's existing position is essential for creating a successful

development strategy. A hasty attempt to develop a company with too many flaws, such as
performance, revenue, or marketability, could lead to failure. Organizations that expand
without first establishing high levels of profitability are less successful in the long run than
companies that achieve great profitability while still expanding slowly. As a result, the direct
relationship between profitability and growth is inconclusive: expansion in new businesses
does not necessarily reflect effective value creation by businesses, and hence is neither
profitable nor sustainable in the long run. Competitive advantage, on the other hand, is the
source of greater and longer-term success. Entrepreneurs seeking a competitive advantage
must have the skills, expertise, and financial means to experiment with and develop highly
sophisticated tactics or procedures without jeopardizing the venture's viability. In a
nutshell. Profitability can happen with growth, but growth shouldn’t happen without
profitability.
 Can great products build new markets?

Yes, great products can certainly build new markets. In fact, many successful companies
have been able to create entirely new markets by developing innovative products that
meet unmet or undiscovered customer needs. This process is often referred to as "market
creation."

Market creation typically involves identifying a gap in the market, developing a new
product that addresses that gap, and then creating demand for that product by
educating potential customers about its benefits. This can be a challenging process, as it
requires companies to not only develop a great product but also to convince customers that
they need it.

One famous example of market creation is Apple's launch of the iPod in 2001. At the time,
there were already several other digital music players on the market, but Apple's iPod was the
first to offer a sleek design, large storage capacity, and an easy-to-use interface. By creating a
product that addressed these key customer needs, Apple was able to carve out a new market
for itself and eventually become the dominant player in the digital music space.

Another example is Tesla's introduction of electric cars. While electric cars had been
around for decades, they had never really caught on with consumers due to concerns about
their range, performance, and affordability. Tesla was able to address these concerns by
developing a new battery technology, investing in charging infrastructure, and offering high-
end models that appealed to early adopters. By creating a compelling product that addressed
these key customer needs, Tesla was able to build a new market for electric cars.

Of course, creating a new market is not easy, and it requires a lot of time, effort, and
resources. But for companies that are able to do it successfully, the rewards can be
significant, including the opportunity to capture a large share of a new market and
establish a strong competitive position for years to come.
Guest Lectures:

Class 2:

In software development, smaller problems, incremental and evolutive approaches increase

(a lot) the likelihood of success  The same concepts can be applied to evolving
Organizations and Processes.

Product managers are the ones driving measurable success of a product through an
incremental and evolutive approach.

A product manager should maximize the impact of a product to customers and stakeholders.
Doing it by understanding their needs and goals while working alongside a team to build an
innovative product.

Can great
products build
new markets?

Class 3:

- Participatory Budget: Participatory budgeting is a form of citizen participation in

which citizens are involved in the process of deciding how public money is spent

- Debt Crowdfunding: When a few investors (a.k.a. the crowd) lends money to
businesses or individuals through a crowdfunding platform

- Social Impact Bond (SIB): A Social Impact Bond (SIB) is an outcome-based

contract, whereby an investor funds a social service provided by a service provider. If
the service achieves the expected outcomes (usually linked to a cost benefit analysis)
the investment is reimbursed by a third party. Most commonly, it is a public-private
partnership which funds effective social services through a performance-based
contract.

- Equity with Buy-Back Option (Impact Fund): Equity with a buy back option
whereby the issuer, or certain shareholders, have the option to buy back the equity at a
pre-determined price mechanism
- Equity + Mezz (PE Fund): Investment that combines equity investment with
mezzanine financing
Class 4 - Marketing & Growth – Guest Lecture
- What is growth marketing?
Growth Marketing is a data-driven approach to marketing that focuses on driving
sustainable growth for a business, combining Marketing, Product Development, UX
and Data to identify and optimize key drivers of growth.
The primary goal of Growth Marketing is to identify and implement strategies that
will drive customer Acquisition, Retention, and Revenue growth, with Lower costs
and higher ROI & LTV..
- The marketing funnel
- The marketing funnel is a model that describes the stages a customer goes through
from initial Awareness of a product or service to making a Purchase.
- The stages of the funnel typically include: Awareness, Interest, Desire, and
Action (AIDA).
- Businesses can use the funnel to identify areas of their marketing and sales
process that need improvement and to optimize their efforts to move
customers through the funnel.
- The Pirate Funnel: Acquisition, Activation, Retention, Referral, Revenue

- The Growth Loop:

LinkedIn’s growth loop is powered by its network effect. The
more members join LinkedIn, the more valuable the platform
becomes for users and businesses. LinkedIn’s growth loop is
based on four input channels: organic search traffic, word-of-
mouth, social media, and paid advertising.
LinkedIn attracts new users through these channels and provides
value by helping them connect with other professionals
worldwide, find jobs, and grow their careers. This eventually
leads to increased sales and more customers, which completes the
loop.
- The North Star Metric:
A single metric that a business uses to measure its overall success and progress
towards its goals. It is the one metric that matters most to the business and is used to
align all teams and departments towards a common objective. By focusing on the
North Star Metric, businesses can ensure that all efforts are aligned towards
driving sustainable growth. (E.g., of NSM: Netflix: time spent by subscribers
streaming content/ Airbnb: number of nights booked/ Spotify: time spent listening to
music)

- Combining Funnel, Loop & North Star Metric:

- These principles work together towards sustainable growth:
- The funnel helps businesses to identify areas of their marketing and sales
process that need improvement and to optimize their efforts to move
customers through the funnel.
- The growth loop helps businesses generate sustainable growth by
continuously acquiring, activating, retaining, and referring customers.
- The North Star Metric helps businesses to align all teams and
departments towards a common objective and to measure progress
towards their goals.