Day 5: Team Formation and Roles Global Startup Labs Day 5: Team Formation and Roles Finalizing Problems

Order of Events Announcements VC’s Vs. Angels Peter Thiel’s Article Team Roles (Postponed) Finalizing Problems (Postponed) Announcements & HW

Announcements Attendance: absence requires prior permission Event of the week: Alumni day on Friday – 3 to 7pm New teaching assistant: Lashan GSL: New website Social media: FB, twitter

Presentations: VC’s Vs. Angels 3 minutes What is the difference between a VC and an Angel? Just cold call, think about who – 2 people

Venture Capitalists Provide capital to early stage companies (high potential / high risk) Make money by owning equity Provide growth funding After seed funding Before co. is mature enough for bank loans Generate return through IPO, trade sale, etc. Gain significant control over company decisions, ownership, and value. Note to instructor: background, entrepreneurship exp, fun fact IPO: ‘Initial Public Offering’ or stock market launch. The company sells stock to the public for the first time.

Angel Investors Provide capital to startups in exchange for equity or convertible debt Also second round (after seed funding) Usually interested for other reasons than pure profit Often provide mentoring, valuable contacts, business management advice Typically invest own funds (in different forms) rather than OPM Note to instructor: background, entrepreneurship exp, fun fact Convertible debt: A bond that can be converted into a specified number of company shares later on

Discussion: Peter Theil’s Article What did you learn from Peter Theil’s article? Just cold call, think about who – 2 people

Discussion: Peter Thiel’s Article Startups are ‘0 to 1’ solutions to problems, hence they lead to global development Knowing which ‘0 to 1’ problem to pursue is tricky, but the process is worthwhile. So ask yourself: WHAT IS VALUABLE? WHAT CAN I DO? WHAT IS NO ONE ELSE DOING? Note to instructor: background, entrepreneurship exp, fun fact

Homework: Individual Complete survey on today’s class: https://docs.google.com/forms/d/1DO1eYAu9YPY_1ptYWMyPhnVtGYBFJ773etRoXK6qzwg/viewform Pick a startup that you think is cool and be prepared to make a presentation about its story – tell us what problem it solves, why it is better than other solutions, why you think it is cool, how they make their money etc. No Sri Lankan startups Not something famous like FB, Twitter, Instagram etc. Come prepared ready to discuss and finalize your top ideas tomorrow