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Mais il arrivait pourtant que Pascal [Xavier Niel] se perde. A la recherche d’une entreprise introuvable, il parcourait alors au ralenti les geoglyphes des lotissements-dortoirs. Il distinguait assez vite cinq ou six types de pavillons differents, qui se singularisaient surtout par la position de leurs entrees de garage. Pascal les imaginait, vus d’avions, comme des petites alveoles sages ou vivaient obscurement les ouvriers de la grande civilisation marchande, a la fois producteurs et consommateurs. Leur mode de vie remarquablement discret etait devenu la plus grande force de l’histoire, et l’unique fondement des grandes fortunes a venir. Tout objet qui penetrait ce marche se voyait aussitot demultiplie: ce fut le cas de l’automobile, de la television et du magnetoscope. Tout desir qui parvenait a s’implanter ici prenait aussitot, comme l’avait montre l’experience du Minitel rose, des proportions industrielles.
Pascal, des qu’il eut relance Minicom, societe positionnee sur le marche des services aux entreprises, se mit donc a rechercher en priorite des societes positionnees sur le marche des services aux particuliers, pour faire d’Ithaque [Iliad] un acteur generaliste de la telematique.

La theorie de l’information, Aurelien Bellanger

Google, Facebook, Skype, Vente Privee,… quelques dizaines d’entreprises ont reussi, a l’instar de Free, a penetrer ce marche et atteindre une echelle industrielle. Mais Apple reste le meilleur exemple d’un produit haut de gamme s’imposant dans l’immense classe moyenne. Il suffisait de voir le sourire de mon petit cousin decouvrant un iphone sous le sapin a Noel, tenu comme chaque annee dans notre pavillon dijonnais, pour en saisir la force d’attraction. 

2 Notes

Against all odds, I’m still bullish on French startups

The 3 days I just spent in Paris last week left me extremely impressed with the quality of the tech ecosystem there and the progress it has made recently. 

Leaner, meaner

I met with over 20 key people from the community (entrepreneurs, VCs, linchpins) and can now name 10 new startups with outstanding teams, users and/or revenue traction, and a clear path to profitability. All milestones achieved on very little capital invested. A few of them also had impressive tech chops, fluently using big data and mathematical algorithms to create highly scalable businesses. This will come to no surprise to anyone who’s been on a trading floor in London: a few French engineering schools are training a large contingent of top financial engineers - and what they can apply to finance, they can apply to other verticals too. 

It feels like there is a perfect storm brewing in France at the moment: a world-class scientific and business education (in a very limited number of Grandes Ecoles, but still) + a shitty job market that makes entrepreneurship the most viable option for top graduates + a vibrant early stage funding scene that makes it relatively easy to raise the first rounds. Things get much tougher later on, making scaling hard, but getting started is relatively straightforward.

As happy as Woody Allen in Paris

I’m unashamedly biased here: I’m French, and love France even more so that I have been living away from it for many years now, and therefore truly appreciate its uniqueness whenever I get back. But, still, the people I met and the numbers I saw are no pies in the sky, but clear evidence of serious entrepreneurs busy with building large and profitable businesses. 

There is a public sector elephant in the room

Don’t get me wrong, the macro situation there is dire. The public sector has become so big (7 million employees or over 25% of the active workforce, and the electoral weight that comes with it) that it seems to have taken a life of its own and be impossible to reform. Even worse, the dominant ideology (shared by most politicians and media outlets) is hostile to wealth creation and obsesses over redistribution. 

In its latest outburst of economic insanity, the ruling socialist government is about to kill this young and fragile ecosystem with its budget for 2013, which intends to tax entrepreneurs and investors to death (or, rather, to exile). I can already name 10s of successful entrepreneurs who have set up their businesses in NYC, SF, London or Berlin - this new law will only make things worse. Attracting foreign investors and entrepreneurs is an even more remote eventuality: who would be crazy enough to set up shop in France if they weren’t born and raised there? 

Go #geonpi

Everyone I met in Paris was up in arms against the new law (the so called PLF2013), and felt very very angry, and painfully betrayed by their own country, a place they love and feel they are massively contributing to. The one and only merit of this toxic political move has hence been to strongly unite the community and make it come to the realisation that the French market alone was no longer sufficient, and that, be it for customers, staff or capital, they would have to look abroad to succeed. 

But if (and it’s a big if) the tech scene manages to remain united and keep big government in check (and prevents the PLF2013 from turning into reality), I’m confident we’re about to see many more successful French startups emerge. 

Which is why I will keep spending a fair amount of my time in France, to make sure I have the chance to work with these teams and help them grow and succeed globally.

Notes

Living with entrepreneurs


I got invited to give a keynote speech for the launch of Imperial College Business School’s Entrepreneur Club (or some name along this line, the point is: the room was full with super smart budding entrepreneurs).
I didn’t have any guidance on what to talk about so I just decided to draw from my experience being surrounded by entrepreneurs (my dad, my girlfriend, my friends, the CEOs I meet and work with on a daily basis) and my own endeavours, to convey a few general messages:
  • everybody can be an entrepreneur - my friend Anne was an intellectual property lawyer and I suspect she had never seen a P&L in her life when she decided to launch her business - that’s the beauty of it
  • it is a great time to be one
  • the sooner the better - as a general rule: the less you have to lose and the less financial responsibility you have (mortgages, kids, etc.) the easier
  • but competition is fiercer than ever too, so you will need to be smarter and find an angle
  • the point of launching a business is not to raise money: it is first and foremost to build something you can be proud of and replace an existing or potential salary job by a self-made one, which makes enough money (ie. profit) to take care of your family. 99.9% of businesses will never raise VC money, so betting your success on a big VC round is akin to playing Russian roulette with 5.994 bullets in a 6-bullet cylinder
  • But if you happen to have a business that’s in the 0.01% bracket - ie. able to reach $100m of revenues (or more) over a few years - then we should talk right away!
  • And lastly, entrepreneurship is a mindset above all. You can work in a big corporate and be an entrepreneur. Eze Vidra is the example I took there: he may be on Google’s payroll but Google Campus is his own startup. When he organised TechBikers, he didn’t do it because it was part of his job description, but because he thought it would be fun, serving a good cause, and contributing to cement the tech community in London. He put his money, reputation and time into it, and just made it happen - as any entrepreneur would.

29 Notes

Jean-Daniel Guyot: Projet de loi de finances 2013

jdguyot:

J’ai hésité quelques jours à apporter ma pierre à la discussion sur le projet de loi de finances 2013 et ses conséquences sur les créations d’entreprises. Je suis moi-même créateur d’une start-up et je vois surgir depuis quelques jours des arguments qui n’ont rien à voir avec les vraies…

1 Notes

Meet France’s unsung heroes. #RejoignezUneStartup

As my partner Saul Klein said in his recent speech at the European Pirate Summit in Cologne, it feels like Europe is screwed. And France is no exception. But, as he soon pointed out, it doesn’t mean we should be discouraged, but rather, take inspiration from the countless examples of people who have managed to exploit uncertainty and crisis to innovate, challenge the status quo, and build massive businesses in the process.

And, all over Europe, more and more people are doing just that. Investing all of their hard-earned savings (and often their friends and families’) into daring ideas, at a time of almost unprecedented economic uncertainty. Chasing seemingly impossible dreams, much bigger than the wealth they could create for themselves if they happened to succeed. To prove to the world that they are not crazy: that their vision is reasonable and can be achieved, that change is possible. 

Who’s got the guts?

That requires guts. The ability to withstand the pressure and the stress of seeing your bank account edge back to zero, and your professional life back to square one. To bear the weight of guilt that comes with losing your investors, your friends and families’ money. To forget about the flat you could have bought, or the great wedding reception you could have given. Those of you who have ever experienced these feelings of cold rocks in your throat and acid in your stomach that come with it will know what I’m talking about. 

How many among us are ready to take that kind of life-changing risk? Very few. And those who do should be handsomely rewarded when they succeed, cheered up when they fail, and cherished all the way. And the morons who call them parasites or selfish, while living off the taxes they and the jobs they’ve created are paying (French readers will know who I am talking about), deserve nothing else than a cream pie in the face.

Let’s join them

If you want to see what these entrepreneurs look like, more than 50 of them will be holding a big job fair in Paris on Saturday (the 22nd September). Together, their companies will be offering 140 full-time, well-paid jobs, to over 500 candidates. They didn’t wait for anyone’s permission or money: they just decided to get together and do it, within their limited self-sufficient means. Because this is what they do: they put things in motion.

So, if you are a developer or a designer and want to work with the best in the business, while taking a decisive part in these incredible individual and collective adventures, you should apply here: www.rejoignezunestartup.com.

Let’s thank them

Not all of these startups will succeed. Actually most of them will fail. And most of these entrepreneurs will lose a lot: savings, years of hard work without a salary, and, maybe worst of all, the opportunity to realise their dreams. They know it, and still, they are brave and crazy enough to give it a go, and give everything they’ve got. To create services and products they think will make their customers’ life better, creating jobs for themselves and hundreds of others in the process. 

It is all too easy to forget the risk they first took once they have succeeded. To bash them for being selfish when they claim they don’t own their success to anything or anyone but to their hard work, intelligence, and nerves of steel. This may not be entirely true, but they are entitled to think that without their self-starting energy, nothing that we built would exist today. 

Successful or not, those entrepreneurs are heroes, and should be praised as such.

Notes

The Dangerous Seduction of the Lifetime Value (LTV) Formula « abovethecrowd.com

Excellent analysis of the unintended consequences of relying too much on the LTV formula. I’ve seen it being used a lot by the German copycat factory, among others. It works fine until your backers start getting nervous and ask to see the promised intrinsic profitability…

Notes

Mercenaries vs. Missionaries: John Doerr Sees Two Kinds of Internet Entrepreneurs - Knowledge@Wharton

Written 12 years ago and still more accurate than ever. 

“The old economy was about people acquiring a single skill for life; the new economy is about life-long learning,” says Doerr. “The old economy was about monopolies; the new economy is about competition. The old economy was about job preservation; the new economy is about job creation. The old economy was about wages; the new economy is about ownership. The old economy got its value from plant equipment; the new economy gets its value from intellectual property. The old economy was like sumo wrestling; the new one is like the 100 meter dash; the old economy emphasized standardization; the new one stresses choice. The old economy sued; the new economy invests.”

Notes

Anatomy of an (un)fundable startup - Venture Hacks

A classic preso that any fundraising entrepreneur should have watched, at least once.

Notes

VC Evolution: Physician, Scale Thyself. | Dave McClure

A must-read piece on the evolution of the VC landscape over the last 10 years. Hats off to @davemcclure, the Master of 500 Hats

Notes

Amazoned

Reading the Credit Suisse note on Amazon titled “The Sum of Many Parts”, it’s impossible not to be amazed by how this company has managed to grow from its original business over a very short period of time.

As shown in the chart above, since it started as a first party book selling website in 1995, it has successfully expanded into new categories (Electronics & General Merchandise), but also grown a strong third party business, launched the Kindle eReaders and tablets with the concomitant transition to digital, and developed Amazon Web Services, the cloud platform which is powering the large majority of today’s startups. 

What’s especially impressive, is that these new business lines are not there for the show but are already by fair the biggest contributors to the company’s profits.

Source: Credit Suisse estimates, Company data

The company didn’t even have to reinvent itself, it kept its core business, expanded it, and used it smartly as a base to venture into adjacent sectors, using its scale to become a leader/major player in  every one of them. And all of that in less than 15 years… Hugely impressive.