Book by benjamin cornell by Freestyle Academy

A bout

the B

A uthor

enjamin Cornell, seventeen years old, has lived in the heart of the Silicon Valley his whole life, where business boomsâ&#x20AC;Ś and fails. Throughout his years, he has been invested in unique educational opportunities such as business seminars at Foothill college, entrepreneurial training programs, and Freestyle Academy. If you asked his parents they would say he is not much of a reader, but he occasionally enjoys fantastical fiction or educational novels. Two of his favorites include The Rangerâ&#x20AC;&#x2122;s Apprentice, written by John Flanagan, and Think and Grow Rich, by Napoleon Hill. Most of the time you can find him with his friends, playing video games, or lost in his own head. He has aspirations to be a business major, but, as a Junior in highschool, the future remains unwritten.

So You Want to Be a Startup

B enjamin C ornell

So You Want to Be a Startup B enjamin C ornell

D edication T

o my loving parents for allowing me to find my own passions and for cultivating these with their undying support. Thank you for the opportunities, advice, and trust you two exude constantly. You are my mentors, friends, and, most importantly, an incredible pair of parents.

iii

A cknowledgements A

special thanks to the entire team at Intel True Virtual Reality, especially John Harrison, Dr. Uma Jayaram, Martin Andersen, and Kristy Hamlin, for allowing me into their offices to interview, film, and learn. Thank you to Freestyle Academy for supplying me with the tools and mentorship to accomplish the daunting task of documenting a business. A special thanks to Jason Greco for honing my writing and providing guidance for the structuring of my chapters.

CONT ENTS 6

09 10 13 17

Preface

21 25 26 27

Iteration

Introduction

Conclusion

Vision

Worksâ&#x20AC;&#x2122; Cited

Grit

About the Author

P reface W

hen searching for a subject worth the time and effort of documentation, it was clear that I had to be truly passionate about it. Having had a deep background in business, including mentorship programs, college courses, and actual experience in selling, I knew this was the area in which my focus should lie. When an employee of Intel True Virtual Reality, Kristy Hamlin, suggested the virtual reality company that she worked for, my attention was immediately captured. The fact that this company had prevailed in such an innovative field whilst being located in the unfriendly environment of the Silicon Valley amazed and interested me. My curiosity lead me to co owner Uma Jayaram, as well as long term employees John Harrison and Martin Andersen. These incredible individuals gave me their extremely valuable time in order to educate me on the principles of Vision, Grit, and Iteration that lead to their current success. It is upon these principles that this book is based and upon their teaching that I am fortunate enough to present this information to you.

I ntroduction W

elcome, gladiator, to the coliseum of startups. In this battle soon to come, each combatant will be forced to scavenge for any aide available if they wish to survive as a company. One such form of assistance presents itself through the embodiment of analysis. By watching those that have already succeeded we may gain greater insight into the science of success and the factors that dominate such a ruthless arena. And so I delved into the most competitive of these coliseums: The Silicon Valley. A landscape so dangerous that Eric Markowitz, senior writer of Inc. Magazine, writes that â&#x20AC;&#x153;Silicon Valley Loves Failures.â&#x20AC;? With a ninety percent rate of this ironically beloved failure, this treacherous world contains a company known as Intel True Virtual Reality. Once known as Voke and, as of writing, recently acquired by king of computer chips, Intel, this company exemplifies success in the harshest of environments. As I explored this virtual reality sports streaming enterprise, I began to uncover the fundamentals of success. What follows are the findings which hope to give readers insight into the endless battle towards their highly contested milestones, whether it be wealth, happiness, or some transmutation of success. Good luck, and may the ensuing chapters provide an advantage in the inevitable challenges that await.

“W e ’ re doing something that ’ s never been done before . L ive vr is brand new .

W e just came off of the O lympics and no one has ever done a live vr on the

O lympics before . W e just did it .”

V ision M

eet “Hello,” a company that created the innovative sleep monitor “Sense” and, despite its high evaluations and brilliant founder, failed just a year prior to the writing of this book. Of course there are many factors that we will discuss in later chapters, but for now let’s examine the absence of vision. If we examine their post-mortem, a statement explaining the death of the company, they write, ”When we first launched ‘Sense’, sleep was one of the most neglected part[s] of our lives. Three years later, for many, it is now rightly recognised as perhaps the most important pillar of our health and wellness, alongside exercise and diet.” As is clear, at the time of the company’s inception they targeted a problem, which was that most people had no way of knowing if they were healthy sleepers, and created a genius solution for it. This solution became “Sense”, a device that gave feedback on the user’s sleep patterns, and proceeded to generate two million dollars in crowdfunding and forty more through venture capital funding. Basically, the company displayed strong signs of vision early on. However, “Hello” had lost their ability to use vision after they had struck gold just once. Although they were the first to recognize the problem which their product was designed to solve, which I will concede requires a great deal of vision, the problem they had recognized began to become

less and less of an issue. In fact, they raised so much awareness towards the importance of sleep that they instigated an entire trend of sleep health. This craze created many products, applications, and improvements that were and still are instrumental in aiding mankind to sleep. Overtime, their market dwindled because people no longer required a product that boasted improved sleep if they were now getting a goodnight’s sleep. Despite this, “Hello” stayed course until it was forced to shut down. If they had continued utilizing their above and beyond standard of vision they would have been able to envision this and pivot, the art of which will be discussed in the final chapter. Ultimately, it was their lack of vision that put this company to sleep. But what is vision? It is the ability held by the greatest of minds in the Silicon Valley such as Elon Musk and, formerly, Steve Jobs. These unique men are labeled universally as visionaries, a title that denotes a strength in their ability to see a full and detailed plan in their mind. Forbes attributes Elon’s talent in this regard to his ability to not “follow trends”, but to “create them” and Entrepreneur magazine credits Job’s success to shocking ambition when they write, ”The first trait that I think is most important and unique is his unbelievable imagination. It’s one thing to envision your company growing and 13

your company growing and taking market share from another competitor, but it’s another thing to envision that your company’s products and services will change the way people communicate, work and live their lives. He built his company under the assumption that Apple’s products and services would change the world.” This ability is available to most of mankind in one degree or another and can allow the aspiring entrepreneur to envision the entire battlefield, predict the outcomes of potential decisions, invent remarkable innovations, and cleverly outperform the competition. In short, vision is the mind of the entrepreneur. Intuitively, this would make vision the core of the entrepreneur and, if the entrepreneur is the instigator of success, it must be a requirement to leave the arena still standing. To back this claim, Intel True VR will be thrust into the spotlight once again. Emphasis on vision in the field of innovation is ever present as they take the fresh concept of Virtual Reality and take it to a sport’s market. Virtual Reality, as a medium, is already new and extremely innovative, but it is taken to a whole new level by applying it to this new environment. They have the first requirement of vision: a fresh idea that no company has ever attempted. In the process of documenting their company, I was able to interview three long term

employees. The first of which, John Harrison - who has been with Intel True VR from the beginning - is the jack of all trades. From investing to writing code, he does it all. According to Harrison, ”[I] nstead of just giving people tasks, you come up with big visions and you get the engineers to adopt those visions. They’ll figure out the tasks, they’ll be motivated, they’ll kind of own that piece of it.” In other words, create something or plan something daunting, creative, and fresh. This excitement will not only inspire the employee, but it will give them a personal connection to the company that will ensure they are working for more than just a paycheck. Dedication like this means that each member of the company will be willing to sacrifice their time, money, and mental well-being in order for the vision to succeed. Without vision, you will never be able to invent an intriguing and innovative product the likes of an earth-shattering smartphone or the first fashionable, fully electric car. Without vision, one cannot convey their product to employees, investors, and users. Without vision, there is no roadmap to success and no strategy guiding the creation of such a guide. Vision is fundamental, it is pervasive, and most importantly it is essential for any wannabe startup.

â&#x20AC;&#x153;I think one of the reasons that we succeed is an old term called grit . I t requires a certain person and virulence , a certain dedication . A nd I would say if you could bundle it altogether , it would be grit .â&#x20AC;?

G rit “H

ello” failed. Once an entrepreneur stops inventing, he fails. It is a succesful entrepreneur that trudges on, despite the seemingly insurmountable mountains blocking their path, that gains an edge against their competitors. Grit is the factor that defines the last man standing. After three years the entrepreneur decided it was the right time to give up and call it quits. The company shuts down and the project they were undyingly passionate for has, well, died. Behind the scenes, they dealt with pain, heartache, and the harsh reality that they simply were not succeeding. It can become too much for a company, the entrepreneur, and the people involved to the point where it is unbearable. Here is where the concept of grit becomes complex and less idealistic. It could be said that if they continued they would have stumbled upon a breakthrough, akin to the story of the miner who quit just before striking gold. Contrarily, they may have simply piled up debt and wasted time on something that would never achieve any significant amount of success. It is a matter of risk which is entirely reliant on the previously analyzed vision and the entrepreneur’s conviction to act on the vision. Using available data the entrepreneur must decide whether or not the risk is worth it and what the potential payout is. It is simply stupid to continue

course infinitely without changing direction. This is when vision and persistence combine. By taking calculated risks and using vision to know when to give up, change course, or double back one can combine the two to create a more tangible formula for success. This is important to define when discussing grit and to what extent it affects success. It must be utilized intelligently. Knowing when to keep going and when to change course can feel impossible, but can separate success and failure. Did “Hello” stop too early? Were they justified in closing shop? I maintain that no, they were not. Throughout the course of the companies development they had an incredible foundation. They were instantly met with praise by the community on Kickstarter and were handed millions of dollars in a very short amount of time. This was followed by more millions. Success after success after success. The moment their vision stalled and they were met with a long period of failure and inability to sell, they pulled the plug. It must have been hard and required much deliberation, but they admitted defeat. “Hello” became complacent with success and as a result, their vision stagnated. As mentioned briefly in the first chapter, the alternate ending for this now dead company was to pivot. Although this idea will be expanded upon in the third and final chapter, it is the change in direction of a company. 17

Grit, thus far, has been an ambiguous and warped term. One that both denoted a negative and positive connotation, whilst also conveying vast unpredictability. Now, it shall be defined, when in reference to a startup, as its ability to shift without falling apart. In order to succeed, you must analyze the problem with the fundamental of vision and respond strategically. Forbes magazine builds upon this idea, in accordance with psychologist Angela Duckworth, by stating, “Being gritty is the ability to persevere. It’s about being unusually resilient and hardworking, so much so that you’re willing to continue on in the face of difficulties, obstacles and even failures. It’s about being constantly driven to improve.” Clearly, In order to execute a response to a variety of issues, one must display grit. Much like grit, until now the company Intel True VR has not been defined well within the context of this book. It has appeared to have a perfect road and the luxury of staying course throughout its lifespan. In reality, Uma Jayaram, company co-founder, spoke to me of her darkest moments throughout her journey. The moments not knowing whether or not she would receive a paycheck. Unsure of whether or not she could muster the funds to keep her precious vision going. Throughout the journey, there were those that

declared to Jayaram their doubt in her and the company’s ability to succeed. Dr. Jayaram commented on this sense of defeat by recalling, “When you walk into a meeting, and you’re all pumped up, and then someone will just make an off comment. And you just come out and you’re crushed because you wanted validation, right? And you don’t have that so you have to rely on a lot of your inner strength and in your inner conviction.” Here, Jayaram perfectly encompasses this overarching idea of persistence. Oftentimes, validation is absent and the entrepreneur will be left to rely on their own strength of character and ability to take the leap of faith. This is a special kind of confidence, the type that assures its host of their ability to continue through failure, that can only be sustained through grit. Yet, through it all, she continued. Under several company names, throughout cycles of employees, and beyond bitter failure. Success is heavily structured upon grit and, to summarize, Grit is the ability to cycle through many changes in company direction. We must now delve into the importance of constantly adjusting the route your company is traveling.

“I think without being able to iterate , you can ’ t achieve success . T here are many examples where a company comes up with something really good , really cool .

T hey can market it , they can sell it , but if they don ’ t

improve on it , it becomes obsolete over some time .

A nything in technology

becomes obsolete very quickly .”

I teration V

ision and Grit, in combination, leave one final ingredient undefined. This ever present idea of pivoting, and directional change, which can be most accurately described as iteration. Iteration is the ingredient of success that attributes itself towards trying over and over again. It is the companion of perseverance that removes the monotony caused by trudging on in one direction endlessly. As a result of iteration, when the plan does not go as envisioned, the entrepreneur can alter vision. This is the solution to the common issue of stagnation and allows a startup to move forward regardless of failures along the way. When our reference to failure, “Hello”, issued their post mortem declaring its heavy hearted decision to shut down, they stayed course rather than iterating. The course of their current vision was, without doubt, headed for failure and this can provide a facade that the startup itself has failed. In fact, the entrepreneur of “Hello” displayed stellar vision in his ability to see the course his company was headed for but was unable to realize his ability to change course. They were a company with a larger audience and stronger foothold than most of their competitors, but the common issue of not being able to sell product. This is an amazing formula for a pivot. This is

best outlined by a writer for Cleverism when he says that two - of six - factors which should lead to a pivot are “lack of performance” in reference to the product and “market change” which is the external factor causing a lack of performance. In “Hello’s” case their goal should have been to isolate the external factor in order to resolve the internal effect. Since the company had a head start in the general sleep market, all they had to do was narrow down or switch the more focused marked. The entrepreneur will be enabled to iterate by using data, their extensive knowledge of the environment, and the ability to stay persistent through failure. This culmination of vision and grit allow iteration to have a meaningful existence and excel. Although a lack of iteration brings upon the stagnation of companies, a presence of it can give a company an absence of direction. To restate the analogy of the miner quitting a moment before striking gold, the same could happen if the miner changed the direction in which he was mining only to dodge a large vein of valuable minerals that will now forever stay hidden. Often times, the miner’s failure is due to an absence of resources to help determine if he should quit, change course, or maintain the current path. Luckily, a successful entrepreneur possesses the previously discussed attribute of vision. 21

Intel True VR, through much perseverance and educated prediction on its entrepreneurs part, has shifted its direction a plethora of times before reaching the current state of success it resides. Martin Andersen, veteran of Intel True Vr and head of media, says it best, â&#x20AC;&#x153;So each company, each facet of our development kind of pushed us to where we are today. So starting out with exercise, moving into sports... â&#x20AC;? As stated, It began, believe it or not, as a company that offered immersive treadmill experiences and that would allow someone to feel as if they were running in a location other than their garage. From here, they realized their panoramic technology enabled them to transition smoothly into virtual reality and began to gain a

strong foothold in that market. This happened over and over until they arrived at live virtual reality and now have built the connections in order to firmly establish themselves as the dominant live virtual reality sports company. And, after recently being acquired by Intel, they have now reached what many consider to be success. Despite this, Intel True VR has only begun its trek of iteration through the entrepreneurial world. Their deep understanding of its importance to success will ensure that they constantly iterate upon their vision in order to avoid treacherous stagnation. If vision and grit are the mind and soul of the entrepreneur, then iteration is the network that binds these together into a cohesive and efficient package.

“I just think it ’ s exciting to see changes . A s the world moves along different things pop up .

D ifferent inventions . A nd as we can find ways to

incorporate those , you know , it just keeps the engine going forward . you never come to a stop .”

C onclusion V

ision and grit, two fundamentals to success that birth an equally important product that is iteration. None of the three can function without the other. In absence of vision, grit and iteration are lacking strategy and reliant completely on chance. However in absence of grit, vision will quickly become overridden by imperfection and the entrepreneur will not have the drive to continue iterating. Finally, without iteration, we are presented with the unfortunate demise that â&#x20AC;&#x153;Helloâ&#x20AC;? experienced. Stagnation resulting in an unhelpful stubbornness provided by grit or a helpless waste of a spectacular vision. Either leads to failure. But you want to be a startup, you want to succeed, and thus you must hold these three exceedingly important traits close throughout your journey as an entrepreneur. Goodluck and may the aide provided within these pages allow you to leave the arena on both feet.

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