REGISTER | LOGIN
Breaking News
Blog

A Startup Needs a Good Board of Directors

NO RATINGS
View Comments: Newest First | Oldest First | Threaded View
barunkd
User Rank
Author
Re: Also Strategic Investors
barunkd   4/12/2014 3:30:03 AM
NO RATINGS
Hi Michael,

I think below are key partnerships a start-up in EDA and IP area should work on. When I mention partnership I mean the other partner should have some potential upside in the success of the product and ready to contribute to some extent for that success (one form is defnitely work against equity, but there can be other options)

Schenario 1: Start-up based in US/ Western Europe/ Taiwan/ Japan - These locations have customer base for the product, but these locations are high cost

The required partner:

a. A services company at low cost geography: For EDA and IP the engineering cost is a significant proportion of the product development cost. Hence driving the cost down which in turn result in lower product price and hence most probably higher market share is critical

Schenario 2: Start-up based in India/ Eastern Europe/ China - These locations have low cost, but virtually no customer base

The required partner:

a. A sales and marketing partner, based in customer location, who can help to have at least one customer tie-up at product development phase and can take the products to many potential customer when the produt is ready. In high tech industry it is always advisable to make a product with a potential customer, otherwise the chance of product success decreases dramamtically

 

 

Regards,

Barun

 

Michel Courtoy
User Rank
Author
Re: Also Strategic Investors
Michel Courtoy   4/11/2014 1:43:58 PM
NO RATINGS
Hi Barun,

You are absolutely right: the strategic advisors/board members often are the ones that drive the start-up founders to build key relationships to create an ecosystem around the company.  These relationships building should start early and can result in M&A opportunities.

Michel

barunkd
User Rank
Author
Also Strategic Investors
barunkd   4/11/2014 4:59:26 AM
NO RATINGS
Yes, having a knowledgable (and well connected) board member is crucial for success of a strat-up in high tech industry.

There are another key component of a strat-up success in high tech industry i.e. strategic investor. An investor who no only brings money, but also brings doamin/ market knowledge as well as connections to the start-up. In high tech industry promoters of most of the start-up makes money when their company gets acquired. A strategic investor can play a vital role in that

Regards,

Barun

More Blogs
A new API from the Multicore Association eases the job of programming increasingly heterogeneous embedded processors.
You would think my inbox would be flooded with stories of unsung engineers who have done cool things. Nope.
Government agencies in the U.S. and the U.K. are working to get ahead of the curve and let the public know that they are concerned about vehicle cybersecurity.
What we must ask about the fired Googler who wrote a 'diversity' memo is this: Did he know his job as an engineer?
Devices and engineers themselves must become more flexible and focused on return on investment to succeed in an era where a software-defined Internet of Things has become the new normal.
Like Us on Facebook
EE Times on Twitter
EE Times Twitter Feed