Each year OTT helps launch high-quality start-up companies based on discoveries made by Emory faculty or staff. Over the past few months, OTT set out to interview a selection of the entrepreneurs and VCs we have worked with and pick their brains about what it takes to make a successful startup venture.
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To visit Part 1: here
What do you recommend/what is a piece of advice for someone looking to start a company?
Daniel White (President & CEO of the joint Emory/Georgia Tech start-up Clearside Biomedical): Take an honest assessment of who you are. What are the things that may hold you back. 1) Is it experience? (Investors will want someone who has done this before). 2) Does the intellectual property stand alone or are you only solving an incremental problem? 3) Are you requiring too much money to reach success? 4) Do you have enough and the right human capital supporting the project? (I have seen many a company fail because the president is too stingy with stock to bring in the right talent to get the job done.)
As I look back at my career as an entrepreneur, there are four characteristics that I believe separate the people who start companies from the people who dream about starting companies. First, I think an entrepreneur needs to identify with their own desire and understand is it worth the risk and would they leave everything behind to try and solve this particular problem. Second, successful entrepreneurs map out a plan, understand the costs, and plan for the ups and downs. Third, entrepreneurs are inspired by something, either an old mentor or personal experience, but inspiration drives enthusiasm. And last, entrepreneurship is a personality that is a concoction of stubbornness, street smart, naïve, and vision. All of these components take vision far beyond a good idea to a place of action and accomplishment.
Ed Cannon (President & CEO of the Emory start-up NovAb): I believe that the concerns we faced in the past continue to be the major concerns today; recruiting qualified technical talent, understanding the commercial opportunities, and obtaining adequate funding. In my view it is substantially more difficult to execute a successful biotech start up today than 30 years ago. In the late 70’s too much money was chasing too few ideas and even poorly thought out concepts were allowed to burn through large amounts of cash. Today too many ideas are chasing too little money and regrettably good ideas are not being funded or at least not adequately funded. With very few exceptions venture capital has become a late stage only biotech investor leaving early stage start-up to sweat equity entrepreneurs, angel groups, and governmental/foundation grants. In this environment it is critically important to rigorously tie performance expectations to available funding. Rather than the overly enthusiastic “hype” often adhering to biotech, “under promise and over deliver” should be the mantra.
Michael Lee (Chairman & CEO of the Emory start-up Syntermed): Always identify the benefits of your products and services through the eyes of your customers.
Terence Walts (President & CEO of two Emory startups, Transfusion & Transplantation Technologies (“3Ti”) and Cambium Medical Technologies): Lots of things come to mind; in no particular order: 1) Investors will expect you to have put your own money into your venture before they put theirs in as well. It demonstrates to them a sign of your belief/commitment in your idea. Are you prepared to do this? 2) Does your spouse support this idea and importantly, is OK with you not having a fixed predictable income for quite some time? 3) Technologies are bought, not sold. It is OK to take a technology risk (i.e., will the technology actually work?), but it is a mortal sin to take a market risk (i.e., develop a product for which no one other than your immediate family understands or appreciates). 4) It will take 2-5 times as long and 2-5 times the money to get to where you want to go, contrary to what your first Business Plan might say. 5) Risk adverse people are not good entrepreneurs. People who accept the inherent risks associated with start-ups, are willing to take prudent risks, and remain flexible and adaptable to investor and market feedback–make good entrepreneurs. 6) Hire and work with people smarter than you. 7) Network with other entrepreneurs. Become active in local entrepreneurial organizations. Share your war stories, problems with other entrepreneurs, and help each other out.