STARTUP LESSONS FOR NGOS
STARTUP LESSONS FOR NGOS AND VICE VERSA Matthew Chanoff Hatch Fair, Ho Chi Minh City October 7, 2016
Please allow me to introduce myself NGOs
STARTUPS
• Board member of 6 NGOs,
• Currently invested in over
operating worldwide • Advisory role with 3 others • Focus on poverty, education, women’s rights, and media
30 startups • Wrote business plans or advised on fund raising or strategy for about 50 others • Background as economist and management consultant in outsourcing
I’d like to talk about… • NGOs in crisis • Startups in crisis • Lessons learned
Haiti, 2009
Haiti, 2010
Over 80,000 relief personal sent by: US, UK, Israel Dominican Republic, Canada Brazil, Italy, Cuba
Important Observation • Foreign aid workers
• Haitians saved over
saved 120 people trapped under rubble • Foreign donors promised $3.5 billion in aid; about $2.5 billion actually delivered
5,000 people trapped under rubble • Support by overseas Haitians, mostly through remittances, estimated at over $7 billion
THE STARTUP CRISIS
NASDAQ 1999
Reaction: New approaches to creating startups • 2005: Four Steps to the Epiphany published; becomes
viral hit among startup founders • 2005-2006: YC becomes is the first among thousands of startup accelerators • 2010 Business Model Generation published 2010 • By 2016: • “Lean startup” methods and companies well entrenched • Startup accelerators in virtually every large city in the world • Events like Hatch Fair worldwide.
• China claims to be creating 30,000 startups per day
Venture Capital Returns 500% 400% 300% 200% 100% 0% -100% -200%
How Many Startups Succeed? • Recent US study: 18 million startup
businesses • After 6 years, how many had an IPO or were acquired for over $10 Million? • 5,187, or 0.04% • If you start a company, your chance of a really big success is about 3500 to 1
…But when they do: they grow BIG
LESSONS LEARNED
NGOs Learned • Even in an earthquake victims are their
own rescuers • Partnership with communities is essential to success • Don’t disrupt what people are already doing to help themselves
Startups Learned • Almost all fail • Try many things cheaply and keep track of
what happens • Get out of the building • You need a profitable business model
THANK YOU
Please allow me to introduce myself NGOs
STARTUPS
• Board member of 6 NGOs,
• Currently invested in over
operating worldwide • Advisory role with 3 others • Focus on poverty, education, women’s rights, and media
30 startups • Wrote business plans or advised on fund raising or strategy for about 50 others • Background as economist and management consultant in outsourcing
I’d like to talk about… • NGOs in crisis • Startups in crisis • Lessons learned
Haiti, 2009
Haiti, 2010
Over 80,000 relief personal sent by: US, UK, Israel Dominican Republic, Canada Brazil, Italy, Cuba
Important Observation • Foreign aid workers
• Haitians saved over
saved 120 people trapped under rubble • Foreign donors promised $3.5 billion in aid; about $2.5 billion actually delivered
5,000 people trapped under rubble • Support by overseas Haitians, mostly through remittances, estimated at over $7 billion
THE STARTUP CRISIS
NASDAQ 1999
Reaction: New approaches to creating startups • 2005: Four Steps to the Epiphany published; becomes
viral hit among startup founders • 2005-2006: YC becomes is the first among thousands of startup accelerators • 2010 Business Model Generation published 2010 • By 2016: • “Lean startup” methods and companies well entrenched • Startup accelerators in virtually every large city in the world • Events like Hatch Fair worldwide.
• China claims to be creating 30,000 startups per day
Venture Capital Returns 500% 400% 300% 200% 100% 0% -100% -200%
How Many Startups Succeed? • Recent US study: 18 million startup
businesses • After 6 years, how many had an IPO or were acquired for over $10 Million? • 5,187, or 0.04% • If you start a company, your chance of a really big success is about 3500 to 1
…But when they do: they grow BIG
LESSONS LEARNED
NGOs Learned • Even in an earthquake victims are their
own rescuers • Partnership with communities is essential to success • Don’t disrupt what people are already doing to help themselves
Startups Learned • Almost all fail • Try many things cheaply and keep track of
what happens • Get out of the building • You need a profitable business model
THANK YOU
