Adaptive Excellence is a phrase that describes a set of behavioral characteristics that I believe are essential for success as an entrepreneur, or even an employee at a startup. More and more, I also believe that anyone entering the global, technology-driven, chaotic business world will require a certain level of adaptability to survive.

1. Adaptive Excellence
Talent at Technology Startups
Friday, April 19, 13

2. Startups with better management teams...
Perform Better, attract more capital, get to revenues faster, create more
jobs and have better odds of creating maximum wealth at exit
Hiring mistakes for startups can have
disastrous results.
Why Does Talent Matter?
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While this may seem obvious, most startup founders (and even investors) focus on the product/technology way more than the team/org.

3. So, What Does It Look Like?
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At JumpStart, we conducted a 6-month research project to learn…
1. What are the common characteristics of successful high-growth/tech entrepreneurs/teams
2. What are talent/HR best practices specific to high-growth/tech companies
Interviewed 60 people – successful tech entrepreneurs, VC investors, HR/Recruiting experts

4. Previous Success Matters Most
Entrepreneurs who have lead a previous startup to an IPO have a 30%
chance of repeat success (vs. 18% with first-timers and 20% for teams
with previous startup experience but no exit)
Series-B VC investors replace the founding CEO 50% of the time
What We Learned
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5. No Idea? No Problem.
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So much so that VCs will back established entrepreneurs who don’t have a business idea.
VCs will incubate successful entrepreneurs who don’t have a business (EIR).

6. What About Rookies?
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What if both the idea AND the entrepreneur are unproven?
Most NEO entrepreneurs are first-time founders, and even first-time managers of any sort.
What do we look for in rookie founders (as well as employees at startups)?

7. Adaptive Excellence
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Dissecting previously successful entrepreneurs, we found a pattern of rapid adaptation in new situations as demonstrated by 3 DISTINCT examples of stand-out
achievement.
• Not always professional in nature

8. A demonstrated pattern of achieving
excellent results across distinct, varied
pursuits:
Distinct/Varied shows that the person steps outside of their comfort
zone, takes risks, tries new things
Excellent results demonstrates rapid learning in novel environments
At least 3 instances demonstrates a pattern
What is Adaptive Excellence?
Friday, April 19, 13
While this may seem obvious, most startup founders (and even investors) focus on the product/technology way more than the team/org.

9. Kevin Berner
Westpoint Graduate
Retired at rank of Major
PhD in Economics MIT
Partner at Mckinsey
Founded Logos Energy, raised $60 M +
What It Looks Like
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Doesn’t need to have previous entrepreneurial experience…

10. John Knific
Accepted into CWRU Med School as
undergrad
International jazz pianist
Founded CG in college
Raised $1.3M
Now has over 60 customers, including
6 of the top 10 performing arts schools
What It Looks Like
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Doesn’t need to come with ANY experience

11. What Adaptive Excellence Is NOT
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Adaptive Mediocrity – adaptability with mediocre results = ADD

12. What Adaptive Excellence Is NOT
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Linear Excellence
What happens when the rules of the game change or assumptions prove to be wrong?

13. Adaptive Excellence in Action
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http://www.jumpstartinc.org/Blog/peyton-manning-would-make-a-great-starup-ceo.aspx.

14. Adeo Ressi and Jordan Peterson, PhD of The
Founder Institute:
Fluid Intelligence – novel context + rapid pattern recognition, decision,
execution
Openness – curiosity, willingness to pursue new experiences
What’s Going On Here?
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http://money.cnn.com/2010/07/28/technology/patzer_entrepreneurs/index.htm
http://www.techcrunch.com/2011/05/28/peak-age-entrepreneurship/
Believes that FI can predict to 75% accuracy based on entrance exam

15. The Punchline
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Only 2% of the population has these qualities in high concentration according to Ressi.
Kinda makes sense. 1% of startups get funded by VCs and only 10% of those achieve desired results.

16. Mo’ money. Mo’ customers.
Startups with helpful mentors, who track metrics effectively and learn
from startup thought leaders raise 7x more money and have 3.5x better
user growth
Startups that pivot once or twice raise (but not three times) 2.5x more
money, have 3.6x better user growth
More Support for AE
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http://blog.startupcompass.co/

17. Friday, April 19, 13