CBI Insights grim sounding 2020 report entitled339 Startup Failure Post-Mortemsfound that 70% of upstart tech companies fail.
When it comes to consumer hardware startups, 97% eventually die or become zombies.
And what were the top three reasons for startup failure?
Harry had Dumbledore, Luke had Yoda, and Daniel had Mr. Miyagi.
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Sometimes startups come with a hammer and want to find a nail.
This fundamental disconnect between startups and their customer base can lead to major product-market fit issues down the line.
Michael Crawford, CEO of Describe Data, experienced this first hand during his time at Lloyds Lab.
We used our mentors as a product-market fit test group.
They were just incredibly helpful, he explained.
Start by taking a deep look into your ideal customer base.
Having an external stamp of approval can bring you a long way in gaining both funding and larger clients.
But you should consider if thats really what your startup needs right now.
Today access to data is gold for most startups.
The ideal mentor can also be someone whos just very good at influencing others to get involved.
But selecting someone who will think the same way you do may not be whats best for your startup.
This can be life-changing for mentees, Kapin said.
The first thing to do is to understand what your balance is between tech and industry.
Then try and find the opposite to fit the last piece into the jigsaw puzzle.
His co-founder Michael agreed: Push yourself out of your comfort zone.
We were kind of adopted by an external marketing mentor and an enterprise sales expert during the Lloyds lab.
These were two areas we didnt have any real experience in.
Those relationships months later are still strong and theyve been incredibly invaluable for us.
Look for people outside your area of expertise because theyll be highly critical and highly useful.
(Aside from carrying them through the jungle on your back of course.)
Tip one: Show your enthusiasm
To attract interesting mentors, its about passion.
Michael does a lot of presenting for us and hes very passionate and very charismatic.
Thats very honest and authentic and really attracts people.
But the guy just didnt have any charisma.
Just like anyone else, they want to spend time on something theyre excited about.
Ed once saw a startup use very technical language during a midpoint review.
After the founders left the room, he asked the mentors if they had any further feedback.
Thats when a few admitted they honestly didnt understand what the solution was.
Always remember to translate your technical language into words your mentors will understand.
Rob McLendon, a mentor for Lloyds Lab, works as a Principal for Beat Capital.
The first thing Ill consider is the practicality and the tangibility of the service or product.
In the InsurTech space, there are a lot of things that are difficult to comprehend.
When that happens, the practicality aspect disappears.
What are the top three long term goals?
Define how you will work together on these goals.
Will you meet virtually once a month to discuss your progress and challenges?
Define all of this upfront so you set expectations from the start.
She suggests:
Build your connection before you need it.
Look for opportunities to truly connect with people that you admire or have kinship with professionally.
Ask them for coffee, share opportunities, and stay in touch, professionally.
Those are the relationships that over time yield the best mentorship and the best introductions.
Look at it as a two-way street
Dont be afraid to approach a potential mentor.
Ive just never been part of something like that.
