Lecture Notes (Part 0) - Before We Get Started (BTM451 Spring, 2024)

BTM451 Venture Formation Practice
Spring 2024
Professor Soo Hong Noh, Ph.D. | TA Mr. Lee, Siyoung – BTM Ph.D. Program
(sylee88@kaist.ac.kr)
Restricted Use for BTM451 Class Only. 1

Introduction
Courses |
 BTM403 혁신사례 Innovation Case Study

 BTM451 벤처창업기획과 실제 Venture Formation Practice
 ITM501 이노베이션경영 Innovation Management
 ITM502 기업가정신 Entrepreneurship
 ITM561 협상과 커뮤니케이션 Negotiation and Communication
초빙교수 노수홍
국제학 박사  ITM640 통합적 관점의 신제품개발 Integrated Perspective of New
Invited Prof. Soo Hong Noh, Ph.D. Product Development
 ITM800C 파괴적혁신의 교훈 Lessons from Disruptive Innovation
 CC530 기업가정신과 경영전략 Entrepreneurship and Business
Strategies
 TS471과학기술인의 기업가정신 Science and Technology Based
Entrepreneurship

Introduction Major Career |
 Seoul National University – College of Engineering – Computer Engineering Dept. Lecturer | Software Engineering | Introduction to Computing
 DACOM Corporation – Senior Researcher (EDI, VAN) | Manager (International Affairs) | Manager (New Business Development)
 The ChosunIlbo – Staff Writer | Science and Technology
 TriGem Computer (Korea’s First Decacorn in IT industry – ‘2000 U$ 4Billion Turnover) | Executive | New Ventures
 BT(British Telecom) Wireless | Country Manager
 O2 United Kingdom (Telefónica Europe) Korea Branch | President | O2 Online (Korea) Limited | O2 UK (Asia) - Vice President
 CEO | Namsung Telecom – Sunyeon Two-way Ad – NASCO (Subsidiaries of NAMSUNG Co., Ltd. – KOSPI 004270)
 Fortune Brands – Acushnet Company | Director | Titleist Performance Center
 Daegu Center for Creative Economy and Innovation | Startup Incubation Program Director
 Keimyung University | Adjunct Professor | ETrade | Trade – Dispute Resolution & Negotiation
 Invited Professor, College of Business, KAIST Adjunct Professor, Institute for Startup KAIST
3 Restricted Use for BTM451 Class Only.

Glossary & Jargons
Restricted Use for BTM451 Class Only. 4 Source: BTM451 Venture Formation Practice – Course Syllabus, Spring 2024
This class is geared towards people starting a business
where the goal is hyper growth and eventually building a very large company.
I want to warn people up front. • BTM451 Spring 2024 is
specifically built for the
student belonging to
Segment B and C by
providing the rigorous
opportunities to explore
Memo of Introduction/Intention (MOI)
new venture creation.
• This aim fits the “ready-to-

go” entrepreneur who is
looking to launch a startup.
• It is not relevant for student

profiles in Segment A who
are simply curious to learn
about entrepreneurship.
• Throughout the semester,

you will work with a team to
build a plan for a new
enterprise using a “tried-
and-true” practitioners’
process to accomplish this.
kbs+ Ventures “CREATIVE ENTREPRENEURSHIP:
• Final Exam (20%) A Collection of Articles from Around Silicon Valley & Silicon Valley That Stretches Our Entrepreneurial Minds”
Chapter 1 – History & Context Chapter 3 – Finance 201

Types of Innovation What Is Venture Capitalism?
Blake Masters: Peter Thiel’s CS183: Startup – Class 1 Notes Essay Marc Averitt & Matthew V. Waterman: Venture Capital Basics
The Internet: From Static to Collaborative, What Might Come Next Convertible Debt
Tim O’Reilly: What Is Web 2.0: Design Patterns and Business Models Fred Wilson: MBA Mondays: Convertible Debt
for the Next Generation of Software Preferred Equity
Paul Graham: Web 2.0 Fred Wilson: MBA Mondays: Preferred Stock
Theories about Web 3.0 Intro to the Cap Table
Jay Jamison: Web 3.0: The Mobile Era Mark Suster: Want to Know How VCs Calculate Valuation Differently from Founders?
Groundbreaking Entrepreneurship Critical Terms
Sarah Lacy: Inside the DNA of the Facebook Mafia Fred Wilson: The Three Terms You Must Have in a Venture Investment
Chapter 2 – The Funding Ecosystem Chapter 4 – How to be a VC

Types of Investors Maintaining Relationships
Paul Graham: How to Fund a Startup Charlie O’Donnell: How to be a VC: Being Open
What Every Startup Should Know About Investors Chris Dixon: Being Friendly Has Become a Competitive Advantage in VC
Paul Graham: The Hacker’s Guide to Investors Touting Expertise
Mark Suster: Angel Funding Advice Mark Suster: Domain Knowledge
Why Everyone Does Not Need to Raise Understanding the Statistics
Dan Shapiro: Companies That Would Do Best Without Venture Capital Blake Masters: Peter Thiel’s CS193:Startup – Class 7 Notes Essay
Source: Super Creative Entrepreneurship, kbs+ Ventures, 2012

Source: BTM451 Venture Formation Practice – Course Syllabus, Spring 2024
kbs+ Ventures “CREATIVE ENTREPRENEURSHIP:
• Final Exam (20%) A Collection of Articles from Around Silicon Valley & Silicon Valley That Stretches Our Entrepreneurial Minds”
Chapter 5 – How to be an Entrepreneur Chapter 7 – Building a Business

Picking an Idea Agile vs. Waterfall Software Development
Chris Dixon: Founder/Market Fit Rutul Dave: Web Development Methodologies: Agile vs. Waterfall
Andrew Chen: When Has a Consumer Startup Hit Product/Market Fit? Lean vs. Heavy Startup Methodology
Constructing a Team Wikipedia: Learn Startup
Seth Levine: Hiring as a Core Competency Metrics to Consider
Darren Herman: The Startup as a Band Steve Blank: No Accounting for Startups
Culture Dave McClure: Startup Metrics for Pirates
Scott Weiss: 20 Rules of Thumb for Building a Great Startup Culture Taylor Davidson: Why Financial Models Are Easier Than You Think
Focus on User Acquisition/ Marketing
Chapter 6 – Fundraising Blake Masters: Peter Thiel’s CS183: Startup – Class 9 Notes Essay
How to Fundraise Don’t Be Afraid to Pivot
Mark Suster: A 6-Step Relationship Guide to VC Adam L. Penenberg: Enter the Pivot: The Critical Course Corrections of Flickr,
Chris Dixon: Pitch Yourself, Not Your Idea Fab.com, and More
Charlie O’Donnell: A Framework to Think About Pricing Seed,
Angel, and Venture Capital Rounds Chapter 8 – Business Acceleration and Beyond
From Whom to Fundraise Business Development and Corporate Collaboration
Chris Dixon: How to Select Your Angel Investors Chris Dixon: Business Development – The Goldilocks Principle
When to Fundraise Robert Ackerman, Jr.: The Most Unlikely Place to Find Startup Funding
Mark Suster: VC Funding Season Ends Next Week Exits
How to Build a Deck Walter G. Kortschak: Strategic Acquisition or IPO?
Babak Nivi: What Should I Send to Investors? Chris Dixon: Three Types of Acquisitions
Felix Salmon: For High Tech Companies, Going Public Sucks
All in All – Do Things that Matter
Paul Graham: What You’ll Wish You’d Known
• Final Exam (20%)
"You can't really know anything if you just remember isolated facts. If the facts don't hang together on a latticework of theory, you don't have them in a usable form.
You've got to have models in your head."
- Charlie Munger, investor, vice chairman of Berkshire Hathaway Charlie Munger: The Complete Investor (Columbia Business School Publishing)

How to Start a Startup – Sam Altman
• Team Project Deliverables for LTV/NVC Challenge (60%) | Mid-term
a great idea | a great product | a great team | great execution
Checkpoint Evaluation for LTV/NVC Challenge (10%)
• (10%) Individual Participation (Attendance & Office Hours) - Given the
innovative nature of the field, self-actualization of students is vital for the
learning of the subject. How much you learn is proportional to the efforts
you put in and outside of the class.
• Final Exam (20%)
• Team Project Deliverables for LTV/NVC Challenge (60%)
“new” Sequoia Capital BP format
The DENTMAKERS (Companies) funded by Sequoia Capital: Apple, Google, Donald T. Valentine “When the customers want your products so
(1932~2019) badly that you can screw everything up and
Cisco, Oracle, YouTube, Yahoo!, Instagram, LinkedIn, PayPal, 3Com, LSI Logic,
Sequoia Capital,
NVIDIA, Zappos, Airbnb, Dropbox, WhatsApp… National Semiconductor still succeed.” — Don Valentine
Restricted Use for BTM451 Class Only.

11 Source: BTM451 Venture Formation Practice – Course Syllabus, Spring 2024
“new” Sequoia Capital BP format
• most of the entrepreneurs and innovators

we talk to, hate writing these documents…
① not because they don’t want to put
in the work,
② but because a lot of this information
is simply unknown or unknowable at
this stage.
• Forcing an elaborate plan as a pre-

condition to funding silently kills a lot of
ideas out of sheer inertia because they
never even get started. More importantly,
the world has changed.
Source: Take Action, Ash Maurya, 2017
because a lot of this information is simply unknown or unknowable at this stage.
Extremely useful for evaluating a new venture and involves

the understanding of the following elements:
Planning Is Essential, Plans Are NOT
The POCD Framework | “The Harvard Framework”
Prof. Howard H. Stevenson, Prof. William A. Sahlman

Harvard Business School Harvard Business School
A Collection of Articles That Stretches Our Entrepreneurial Minds

Make a plan, and edit it indefinitely.
Business Plans: How Useful?
“Business plans are the tool existing companies use for execution.
They are the wrong tool to search for a business model.”
Steve Blank “Every business plan is wrong. The moment an entrepreneur hits
‘The Startup Owner’s Manual’
‘Save’ or ‘Print’ the plan is out of date. Things change.”
The Jeff Bezos version is “Any business plan won’t survive its first
Josh Kopelman
encounter with reality. Reality will always be different. It will First Round Capital
Source: Harvard Business Review, 2018
(1972~)
never be the plan.” The ability of a company to adapt is essential.
“In preparing for battle, I have found that planning is essential,

but plans are useless.”
“Five-year plans aren’t worth the
-- Dwight D. Eisenhower
ink cartridge they’re printed with.”
Sir Michael Moritz KBE

Sequoia Capital
Scott Belsky
We are taught to plan but advised that nothing ever goes as planned. Every seasoned (1980~)
Benchmark Capital
entrepreneur knows that business plans are a helpful introductory exercise but nothing more
Restricted Use for BTM451 Class Only. 14 A Dozen Lessons for Entrepreneurs, Tren Griffin,
Columbia Business School Publishing (December 5, 2017)
Planning Is Essential, Plans Are NOT “new” Sequoia Capital BP format
• On Demo Day each startup will only get 10 minutes, so we concentrate on the basics – focus on just two goals: 19.2 slides/pitch deck | only 3min 44sec for review
(a) explain what you’re doing, and How to Pitch Your Idea
(b) explain why users will want it. Startup Pitch Deck
• Means a working description in the investor’s head with a gripping but overly narrow then flesh it out to the extent you can.
• Your primary goal is not to describe everything your system might one day become, but simply to convince investors you’re worth talking to further.
Restricted Use for BTM451 Class Only. 15 Source: Y-Combinator, Trevor Blackwell & Paul Graham
How to Pitch Your Idea
Startup Pitch Deck
“Friendster for dogs.”
“Flickr for video.”
Startup Pitch Deck
Need for a simple message that grabs customers’ hearts and wallets, not their heads and calculators
Product Positioning Statement Template: Geoff Moore’s brainstorming to see if the positioning is emotionally compelling:
∙ Do customers’ heart rates go up after they hear it?

∙ Do they lean forward to hear more? Or do they get a blank stare?
∙ Is it understandable in the users’ language or unique in their minds?
∙ For B-to-B products, does the positioning imply a cost or competitive advantage for the product?
∙ For consumer products, does it save time or money or provide fun or love, glamour or status?
ww.yclist.com
Startup Pitch Deck
• From an entrepreneur’s perspective this means that it’s often better to

be in a “pain business” than a “pleasure business.” It’s easier to sell
aspirin than vitamins. So, look for the current, intense pain . Think of
things that people find disturbing, frustrating, urgent or uncomfortable.
舊式新式
Startup Pitch Deck
Pretotyping – Testing the initial appeal and actual usage of a potential new product by simulating its core experience with the
smallest possible investment of time and money (Alberto Savoia)
Alberto Savoia
Source: “The Era of Pretotyping Has Arrived“, Kevin Douven,
BDM Consulting Office, Innovation Day 18.10.2019
Startup Pitch Deck
• Skewed: But that model misses the key insight that actual returns are
incredibly skewed. The more a VC understands this skew pattern, the
Power-law better the VC. In reality you get a power law distribution.
• There is a 50% mortality rate for venture-funded businesses. Think

about that curve. Half of it goes to zero. actually most don’t make
money. The unprofitability of venture capital is pretty well documented.
So the industry may be overinvested, and it’s hard for most firms to
make money.
Startup Pitch Deck
Startup Pitch Deck
Warren Buffett
(1930~)
Last Mover Advantage

THE LAST WILL BE FIRST Enjoying Decades of Monopoly Profits
• It’s much better to be the last mover—that is,
① to make the last great development in a specific market and

Peter Thiel
The Value Creation – Value Capturing ② enjoy years or even decades of monopoly profits. Zero to One
(2014)
VC2 Framework
Startup Pitch Deck
Startup Pitch Deck
· Successful Founders –
- They “Know” (the industry, key suppliers, customers, competitors, who the talented individuals are
who can contribute the team) and
- They Are “Known” (people can comment on their capabilities and provide objective referrals to
resource suppliers like VCs.)
· ‘A’ Team – “I’d rather back an ‘A’ team with a ‘B’ idea than a ‘B’ team with an ‘A’ idea.” Arthur Rock – “I invest
in people, not ideas.”
Startup Pitch Deck
PMF
NPS (Net Promoter Score)
Earlyvangelist Characteristics
先導顧客
Lead customer identification
Startup Pitch Deck
Critical Questions to Answer:

If you can’t answer all those
questions, you are not ready to raise!
1) When to raise/why now?

• Valuations are fiction. VCs admit that valuations are an artifact. They decide
2) How much to raise? ① how much money you need and ② how much of the company they want,
and those two constraints yield a valuation.
3) What are you looking for in an investor?
• Since valuations are made up, founders shouldn’t care too much about them.
4) What will you spend the money on?
That’s not the part to focus on. In fact, a high valuation can be a bad thing.
5) How long will it last?
6) What will you accomplish with the money? • So why do founders chase high valuations? They’re tricked by misplaced
ambition. They feel they’ve achieved more if they get a higher valuation.
7) What are investors looking for in you?
They usually know other founders, and if they get a higher valuation they can
8) Why should they invest in you? say “mine is bigger than yours.” But funding is not the real test. The real test
9) How will they make money by investing? is the final outcome for the founder, and getting too high a valuation may
just make a good outcome less likely.
10) Will you need to raise more? If so, how much & when?
• The one advantage of a high valuation is that you get less dilution. But there
11) What are those investors looking for? is another less sexy way to achieve that: just take less money.
Y Combinator | YC (Seed Accelerator | Seed Funding
Firm)
Seed firms are like angels in that they invest relatively
small amounts at early stages, but like VCs in that they’re
companies that do it as a business, rather than individuals
Sam Altman
making occasional investments on the side. Seed firms will
probably have set deal terms they use for every startup
they fund. (YC - 125K SAFE for 7% equity and 375K SAFE 1985)
for MFN). Seed investors usually care less about the idea
than the people. This is true of all venture funding, but
especially so in the seed stage. Seed firms and angel
investors generally want to invest in the initial phases of a
startup, then hand them off to VC firms for the next round.
Y-Combinator send people on up to VCs.
• Founded date: 2005

Sam Altman • Startups funded: 4,469
(1985~) • Exits: 444 Paul Graham
Ex-CEO of YC (1964~)
Founder of YC
• Team Project Mid-term Checkpoint Evaluation for LTV/NVC Challenge (10%)
Source: Y Combinator, 2024
• COMPANY
- Company name: - Company url, if any:
- If you have a demo, what's the url? For non-software, demo can be a video. (Please don't password protect it; just use an obscure url.)
- What is your company going to make?
• FOUNDERS
- YC usernames of all founders, including you, shnoh, separated by spaces. (That's usernames, not given names: "bksmith," not "Bob Smith." If there are 3
founders, there should be 3 tokens in this answer.)
- YC usernames of all founders, including you, shnoh, who will live in the Bay Area June through August 20nn if we fund you. (Again, that's usernames, not
given names.)
- For each founder, please list (separate line for each item): YC username; name; age; year of graduation, school, degree (unfinished in parens) and
subject for each degree; email address; personal url, github url, linkedin url, facebook id, twitter id; employer and title for previous jobs. List the main
contact first. Separate founders with blank lines. Put an asterisk before the name of anyone not able to move to the Bay Area.
- Please tell us in one or two sentences about the most impressive thing other than this startup that each founder has built or achieved.
• FOUNDERS
- Please tell us about an interesting project, preferably outside of class or work, that two or more of you created together. Include urls if possible.
- How long have the founders known one another and how did you meet? Have any of the founders not met in person?
- If we fund you, which of the founders will commit to working exclusively (no school, no other jobs) on this project for the next year?
- Do any founders have other commitments between June through August 20nn inclusive?
- Do any founders have commitments in the future (e.g. finishing college, going to grad school), and if so what?
• PROGRESS
- How long have each of you been working on this? Have you been part-time or full-time? Please explain.
- How far along are you? Do you have a beta yet? If not, when will you? Are you launched? If so, how many users do you have? Do you have
revenue? If so, how much? If you're launched, what is your monthly growth rate (in users or revenue or both)?
Source: Take Action, Ash Maurya, 2017
• IDEA • LEGAL
- What's new about what you're making? What substitutes do people - Are any of the founders covered by noncompetes or
resort to because it doesn't exist yet (or they don't know about it)? intellectual property agreements that overlap with your
- Who are your competitors, and who might become competitors? Who project? Will any be working as employees or consultants
do you fear most? for anyone else?
- What do you understand about your business that other companies in it - Was any of your code written by someone who is not one
just don't get? of your founders? If so, how can you safely use it?
- How do or will you make money? How much could you make?
• OTHERS
• EQUITY
- If you had any other ideas you considered applying with,
- If you're already incorporated, when were you? Who are the
please list them. One may be something we'veen waiting
shareholders and what percent does each own? If you've had funding,
for. Often when we fund people it's to do something they
how much, who from, and at what valuation or valuation cap?
list here and not in the main application.
- If you're not incorporated yet, please list the percent of the company
- Please tell us something surprising or amusing that one of
you plan to give each founder, and anyone else you plan to give stock to.
you has discovered.
Restricted Use for BTM451 Class Only. Source: Take Action, Ash Maurya, 2017 30 Source: BTM451 Venture Formation Practice – Course Syllabus, Spring 2024
Text Books
I. Disciplined Entrepreneurship:
24 Steps To A Successful Startup
Source: Prof. Bill Aulet, Disciplined Entrepreneurship
Conduct of Class
Text Books
I. Disciplined Entrepreneurship:
(To Change The Way You Think About
Starting A Company)
• Throughout the semester of
BTM451 Spring 2024, you
will work with a team to
build a plan for a new
process to accomplish this.
1. HubSpot (NYSE) – CRM, Inbound Marketing/Sales SW (2018 Revenue: $513 Mil)

2. okta (NASDAQ) – cloud/AWS-based identity and access management company (2019 100mil users)
3. KAYAK (NASDAQ) – fare aggregator/metasearch engine (acquired by Booking.com for $2.1B)
4. KIVA Systems (Amazon Robotics: acquired by Amazon for $775 Mil) – mobile robotic fulfilment systems manufacturer)
5. locu (acquired by Go Daddy for $70 Mil) – publishing platform used by local merchants/restaurants)
6. lark (total funding until 2018 $34.7 Mil) – chronic disease prevention and management platform using AI-augmented health coaching
Text Books
II. Disciplined Entrepreneurship Workbook:
(A Practical Manual for Working the 24-step Framework
To Master the Skills, Tools, and Mindset You Need to Be
a Successful Entrepreneur)
Text Books
II. Disciplined Entrepreneurship Workbook:
A Practical Manual for Working the 24-step
Framework To Master the Skills, Tools, and
Mindset You Need to Be a Successful Entrepreneur)
Step 0: Analysis on potential – technical, business & personal fit
+ +
Specificity – the search for the holy grail of SPECIFICITY:
Step 0. Brainstorm potential market (analysis on potential – technical, business &

personal fit)
1. Deeper analysis of finite number of most-promising market segments
2. Choose one of the market segments as First Order Beachhead. First Order
Beachhead Market is further segmented upon closer analysis
3. Beachhead is chosen
4. An End User Profile is developed further, sharpening the focus; likely to be a

further subsegment of market
5. With clear definition of refined beachhead market and target customer, do a

Total Addressable Market (TAM) calculation
6. Now get very specific by finding and deeply understanding one real
Prof. Bill Aulet
representative customer in your target market. This will be your reference point
for product development and marketing going forward.
You’ll earn EXTRA five (5) percent/points towards final
grading by submitting the certificate of completion
Design Thinking in a Nutshell Free Online Course

(https://open.sap.com/courses/dt2) Learners will be introduced to the
proven design thinking methodology
and can immerse yourself in activities
that will help you practice in-demand
skills based on real-life opportunities to
strengthen your capacity for innovation,
problem solving, and creativity . The
first section of the course will focus on
the problem space, helping
participants to unpack, discover, and
frame a problem, leveraging powerful
techniques such as Persona, Customer
Journey Map, and How Might We. In
section two, we’ll focus on the solution
space, learning proven ideation along
with prototyping and testing
techniques in order to craft a user-
centric solution and bring it to life.

Source: openSAP: SAP’s free learning platform, 2013
Conduct of Class
+ +
Prof. Bill Aulet
Conduct of Class
+ +
Prof. Bill Aulet
Conduct of Class

Early Markets
+ +
Prof. Bill Aulet
Conduct of Class
Step 0: Analysis on potential – technical, business & personal fit Mainstream Markets
+ +
Prof. Bill Aulet
Conduct of Class
Step 0: Analysis on potential – technical, business & personal fit Mainstream Markets
+ +
Prof. Bill Aulet
Entrepreneurial Marketing
Conduct of Class
The Chasm
• Hologram, pen-based tablets, fuel cells, QR

codes, MOOC, Segway, Motorola Iridium
(operating without a reference base and
without a support base within a market that Early Markets Mainstream Markets
is highly reference oriented and highly

support oriented)
• Fundamental Difference despite having

good technology and exciting products,
and despite even promising from the
market, falter and fail.
Prof. Bill Aulet
Dr. Geoffrey A. Moore

Restricted Use for BTM451 Class Only. 42 (1946- )
Entrepreneurial Marketing
Conduct of Class
Prof. Bill Aulet
Dr. Geoffrey A. Moore

Restricted Use for BTM451 Class Only. 43 (1946- )
Conduct of Class
Text Books
Disciplined Entrepreneurship is an oxymoron
Prof. Bill Aulet

The differences between these two schools of thought

Antifragile – Text Books
Things that Gain from Disorder by Nassim Taleb (2012)
Barbell Strategy: A dual strategy, a combination of two extremes,

one safe and one speculative, deemed more robust than a
“monomodal” strategy; often a necessary condition for
antifragility. Without the pressures of the market during spare
time (sinecure), do an experiment based on the other school of
Integrated Perspective
thought such as trial and error – which is a form of barbell.
• BTM451 Spring 2024 is
specifically built for the
student belonging to
Memo of Introduction/Intention (MOI) Segment B and C by
providing the rigorous
opportunities to explore
The purpose of this assignment is for you to let me know a bit about you are new venture creation.
and what makes you tick. This will help me to tailor some of the course
• This aim fits the “ready-to-
materials to your interests and experiences, and is helpful in terms of just go” entrepreneur who is
knowing who I’m talking to every once a week. This assignment is not graded, looking to launch a startup.
but will count toward your class participation score, if necessary to do so. • It is not relevant for student
profiles in Segment A who
Your MOI may include (and not limited to): are simply curious to learn
Let us know a bit about who you are and about entrepreneurship.
what makes you tick for this course
· A bit about where you’re from and how you ended up at KAIST • Throughout the semester,
you will work with a team to
· Something interesting about yourself and something you’re passionate about build a plan for a new
· Experience in Innovation/Entrepreneurship class (related courses you have already taken)
· What you want to get out of this course or what (hygiene factors & motivation factors) matters most & Show why it matters… process to accomplish this.
Memo of Introduction/Intention (MOI) 盲
ignoramus
Read More. Learn More. Be More.
What’s:  the question you’re trying to answer,  the problem you’re trying to solve,  the experience you’re trying to share…)
Contrarian (hypothetical) question: what important truth do very few people agree with you on?
(source: Zero to One, Blake Masters on Peter Thiel’s Stanford Univ. Lectures)
“Be a Contrarian – Go Against the Crowd – Don’t Do the Obvious Thing”

The Strength of Being Misunderstood Fred Wilson
The Strength of Being Misunderstood - Sam Altman (1961~)
Union Square Ventures
Mispriced Bet
(38 years – April 22, 1985)
What makes the most impressive people unusual is that they generally care about other people’s opinions on a
very long time horizon—as long as the history books get it right, they take some pride in letting the newspapers
get it wrong.
You should trade being short-term low-status for being long-term high-status, which most people seem unwilling
You cannot do better than a mob if you are part of the mob.
to do. A common way this happens is by eventually being right about an important but deeply non-consensus bet.
But there are lots of other ways–the key observation is that as long as you are right, being misunderstood by most “Whenever you’re betting against the consensus,
people is a strength not a weakness. there’s a significant probability you’re going to be
wrong,
You and a small group of rebels get the space to solve an important problem that might otherwise not get solved.
so you have to be humble.”
It seems like there are two degrees of freedom: you can choose the people whose opinions you care about (and
on what subjects), and you can choose the timescale you care about them on.
Ray Dalio
Restricted Use for BTM451 Class Only. 47 Bridgewater Associates
智略
Assessment: What Kind of Negotiator Are You?
Bargaining Styles Assessment Tool
Team Building – Entrepreneurial Venture Is Not a Solo Sport
Founding Team –- the rock on which to build the company:
In web/mobile startups, the canonical view is the founding team consists of a hacker, a hustler, and a hipster-
designer. In other domains, the skill sets differ, but the key idea is that you want a team with complementary skills.
businesswoman
Steve Blank,
Stanford, UC Berkeley
Restricted Use for BTM451 Class Only. Source: The Startup Owner’s Manual, 2012
50
But fiction has enabled us not merely to imagine things, but to do so collectively.
Entrepreneurship is the pursuit of opportunity beyond resources controlled. Paul Graham

Y Combinator
(1964~)
We try to find businesses that are
• technologically ambiguous, that are Schlep was originally a Yiddish word but has passed into general use in the US. It
• difficult, that will means a tedious, unpleasant task. No one likes schleps, but hackers especially
• require tremendous intellectual horsepower, Prof. Howard H. Stevenson dislike them. The most dangerous thing about our dislike of schleps is that much of
(1941~ )
but can basically solve these huge human needs “Lion of Entrepreneurship” it is unconscious. Your unconscious won't even let you see ideas that involve painful
Harvard University
in ways that advance humanity forward. schleps. That's schlep blindness. But I soon learned from experience that schleps are
Those things not merely inevitable, but pretty much what business consists of. A company is
defined by the schleps it will undertake. How do you overcome schlep blindness?
• don’t necessarily take lots of money, but they
Frankly, the most valuable antidote to schlep blindness is probably ignorance. Most
• generally do take lots of time. And they
successful founders would probably say that if they'd known when they were
• require really mission-driven people.
starting their company about the obstacles they'd have to overcome, they might
never have started it. Maybe that's one reason the most successful startups of all so
often have young founders. In practice the founders grow with the problems. But
Relentless Pursuit no one seems able to foresee that, not even older, more experienced founders. So
the reason younger founders have an advantage is that they make two mistakes
that cancel each other out. They don't know how much they can grow, but they also
don't know how much they'll need to. Older founders only make the first mistake.

51
Conduct of Class
• One of the biggest mistakes in assembling a founding team is not thinking through the need for skills, but instead settling for who's
around. The two tests of whether someone belongs on a founding team are:
1. "Do we have a company without them?" and, Steve Blank,
Stanford, UC Berkeley
2. "Can we find someone else just like them?"
If both answers are no, you've identified a co-founder. If any of the answers are "Yes," then hire them a bit later as an early employee.
• The founding team includes the

founder and a few other co-
founders with complementary
Founding Team –-
skills to the founder. This is the
the rock on which to build the company:
group who will build the company.
There's no magic number about
the "right" number of founders for
a founding team, but two to four
seems to be the sweet spot.

52
How To Be Successful by Sam Altman
Team Building – Entrepreneurial Venture Is Not a Solo Sport 11. Build A Network
Building your network starts today, by “help[ing] people as much as you can.” Altman said that doing this,
Entrepreneurs must be effective at building valuable social networks. The over a long period of time, is what led to his, “best career opportunities and three of my four best
more encompassing their web of relationships, the more likely it will investments.” Karma is a long-term gift that keeps on giving, and Altman is, “continually surprised how
produce new opportunities and lead to new ideas, better employees, and often something good happens to me because of something I did to help a founder ten years ago.”
more sales. Most people who get a job on the basis of word of mouth, not
Network equals traction, in Altman’s story. He said the size of the network of really talented people you
being recruited or applying for work, benefit from the referral not of a
know often becomes the limiter for what you can accomplish,” and he finds those talented people by asking
close friend but someone in a more remote second or third circle of
himself, “is this person a force of nature?” whenever he meets someone new.
acquaintances. Paul Graham
Y Combinator
(1964~) Prof. Bill Aulet
People interested in entrepreneurship typically either have an idea, a technology, or a strong interest in entrepreneurship. Even if you don't have an idea or technology, you can think about the
knowledge and skills you do have and what ideas/technologies might flow from there. If you're looking to radically impact the world, you need not just an idea or technology, but you also need
a passion to keep going through good times and bad. If you don't have passion, you'll never succeed. It is a necessary condition (you must have it) but not a sufficient one (you need other things,
too). Without passion, when you hit those tough times—and you will, without question—you will not be able to fight through. You'll also need cofounders who can help round out the skills and
knowledge needed to lead the company. MIT's research shows that solo founders struggle compared to startups with founding teams.
Serendipity Comes from Differences (Build Your Social Network)
• Entrepreneurs must be effective at building valuable social networks. The more encompassing
their web of relationships, the more likely it will produce new opportunities and lead to new
ideas, better employees, and more sales. Most people who get a job on the basis of word of
mouth, not being recruited or applying for work, benefit from the referral not of a close friend
but someone in a more remote second or third circle of acquaintances.
• Successful Founders – They “Know” (the industry, key suppliers, customers, competitors, who
the talented individuals are who can contribute the team) and They Are “Known” (people can
comment on their capabilities and provide objective referrals to resource suppliers like VCs.)

54
Team Building – Entrepreneurial Venture Is Not a Solo Sport Founding Team –- the rock on which to build the company:
Time, People, and Money (T,P,M) – It turns out that you need variations of the same things you need to start virtually every other kind of venture
It turns out that you need variations of the same things you need to start virtually every other kind of venture: T,P,M
a. Time = “No Better Time to Start” (democratization of technology)
b. Money = “If We had Money, We Would Have Made More Mistakes.” (overconfidence and easy, early access to money – hazardous but hidden costs of other people’s
money:
“we need more money” instead of addressing underlying problems → discipline and flexibility compromised – success follows many detours and unexpected setbacks)
c. People = individuals or groups who perform services or provide resources for the venture, whether or not they are directly employed by the venture. (encompassing
managers, employees, lawyers, accountants, capital providers, and parts suppliers, among others.)
· ‘A’ Team – “I’d rather back an ‘A’ team with a ‘B’ idea than a ‘B’ team with an ‘A’ idea.” Arthur Rock – “I invest in people, not ideas.”
How to Start a Startup – Sam Altman

a great idea | a great product | a great team | great execution
How to Start a Startup (samaltman.com)

55
Mozart Myth or Mozart Effect?
Founding Team –- the rock on which to build the company:
Prof. Carl J. Schramm

Source: Burn the Business Plan, Carl J. Schramm, 2018
Restricted Use for BTM451 Class Only. Source: What Many B-Schools Teach Has Little to Do with Entrepreneurial Success
56
(Prof. Carl J. Schramm, HBR, 2018)

Lecture Notes (Part 0) - Before We Get Started (BTM451 Spring, 2024)

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BTM451 Venture Formation Practice

Restricted Use for BTM451 Class Only. 1

 BTM403 혁신사례 Innovation Case Study

Restricted Use for BTM451 Class Only. 2

 The ChosunIlbo – Staff Writer | Science and Technology

 BT(British Telecom) Wireless | Country Manager

 Fortune Brands – Acushnet Company | Director | Titleist Performance Center

3 Restricted Use for BTM451 Class Only.

• This aim fits the “ready-to-

• It is not relevant for student

• Throughout the semester,

Chapter 1 – History & Context Chapter 3 – Finance 201

Chapter 2 – The Funding Ecosystem Chapter 4 – How to be a VC

Source: Super Creative Entrepreneurship, kbs+ Ventures, 2012

Chapter 5 – How to be an Entrepreneur Chapter 7 – Building a Business

Source: Super Creative Entrepreneurship, kbs+ Ventures, 2012

“new” Sequoia Capital BP format

Restricted Use for BTM451 Class Only.

“new” Sequoia Capital BP format

• most of the entrepreneurs and innovators

• Forcing an elaborate plan as a pre-

Source: Take Action, Ash Maurya, 2017

because a lot of this information is simply unknown or unknowable at this stage.

Extremely useful for evaluating a new venture and involves

Prof. Howard H. Stevenson, Prof. William A. Sahlman

A Collection of Articles That Stretches Our Entrepreneurial Minds

They are the wrong tool to search for a business model.”

“In preparing for battle, I have found that planning is essential,

Sir Michael Moritz KBE

“Friendster for dogs.”

“Flickr for video.”

∙ Do customers’ heart rates go up after they hear it?

• From an entrepreneur’s perspective this means that it’s often better to

• There is a 50% mortality rate for venture-funded businesses. Think

Last Mover Advantage

• It’s much better to be the last mover—that is,

① to make the last great development in a specific market and

NPS (Net Promoter Score)

Critical Questions to Answer:

1) When to raise/why now?

Y-Combinator send people on up to VCs.

• Founded date: 2005

Source: Y Combinator, 2024

Source: Y Combinator, 2024

Source: Take Action, Ash Maurya, 2017

Source: Y Combinator, 2024

Source: Prof. Bill Aulet, Disciplined Entrepreneurship

1. HubSpot (NYSE) – CRM, Inbound Marketing/Sales SW (2018 Revenue: $513 Mil)

Source: Prof. Bill Aulet, Disciplined Entrepreneurship

Source: Prof. Bill Aulet, Disciplined Entrepreneurship

Specificity – the search for the holy grail of SPECIFICITY:

Step 0. Brainstorm potential market (analysis on potential – technical, business &

1. Deeper analysis of finite number of most-promising market segments

4. An End User Profile is developed further, sharpening the focus; likely to be a

5. With clear definition of refined beachhead market and target customer, do a

Design Thinking in a Nutshell Free Online Course

Restricted Use for BTM451 Class Only. 36

Step 0: Analysis on potential – technical, business & personal fit

Prof. Bill Aulet

Step 0: Analysis on potential – technical, business & personal fit

Prof. Bill Aulet

Step 0: Analysis on potential – technical, business & personal fit

Prof. Bill Aulet

Prof. Bill Aulet