(Post) MBA Blog

 One of the great things about being in Cambridge is the quality of people you meet. Take Jack Lang for example; great entrepreneur (one of the men behind Acorn computers, ETrade UK and now currently at Artimi), important business angel (early stage start-up funding) and and all round nice bloke. He gave a presentation the other day to Cambridge University Entrepreneurs, a student club set up to promote entrepreneurship, at Michaelhouse Cafe, Trinity Street. Want to know what he said? Read on...

Jack started by mentioning a couple of useful books: "Crossing the Chasm" by Geoffrey Moore, "The High-tech Handbook" by Jack Lang and "The Monk & The Riddle" by Randy Komisar (to note: Kasar says if your idea is brand new, then all bets are off regarding success predictions but if it is a better new, then you better go like a rocket if you are to be successful). Also mentioned at a later date was "Inside the Tornado", again by Geoffrey Moore. Jack noted that the ideas in both of Moore's' books were based upon Diffusion of Innovations by Everett Rogers.

Regarding VC and Angel funding, Jack says there is plenty of pent up money - just not enough decent ideas. Some networks he mentioned were Cambridge Angels, Cambridge Capital and GEIF.

CfEL and St Johns are able to offer space, which while it may not be free, are comparatively low cost, supportive and and flexible. Also, the lawyers Taylor Wessing, may postpone charges if they like the team and the idea. It should be noted that the local partner of Taylor Wessing Simon Walker, has written Tolley’s "Startups, Law and Business handbook”, which is an excellent book of precedents. The government is giving money away as part of the SMART awards and even £40K just for a good idea.

The entrepreneur has to ask him/herself: "why now?, why me?" You have to know yourself if you are to motivate others!

In terms of the criteria VCs use to make judgements, in order they are:
1 A global, sustainable, underserved market need - the Internet is still growing 10-fold every 18 months and PC features 2-fold over the same period (i.e. Moore's Law)
2 A strong team
3 Defensive technology, although no technology patent is really defensible in the long run
4 Believable plans
5 60% IRR. Thats right, 60; you've got to go like a rocket!

Ultimately, its not just the idea (#1) that has to be good, but the whole proposition – team, development plan, potential market

Jack also mentioned the need to connect with the majority of people; how many of us read the Sun or the Sport? We ought to if we are to understand mass markets.

Jack mentioned that in the early days he started with technology and then tried to fit it to a market need; now it's the other way round - he starts with a market need and looks for a technology.

On questions regarding geographical opportunities, he noted China to be of interest, but tha you had to really be there to tap into the opportunities. Indonesia and Vietnam were also of interest, Indonesia being the cheapest, but too unstable, and with correspondingly poor infrastructure and education.

On a question of the relative importance of network(ing), determination and creativity, Jack held that the network(ing) was the most important.


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