5. Order
categories
according
YOUR
preferences
Categories
For each category, tell us in your own words, what it
would take for YOU AS AN INVESTOR to invest in Estar's
venture
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
5 4 3 2 1
How well does the
venture fit with your...
(for example: skills,
objectives, tastes etc)
Any other things
(list in order of
importance)
How important is each of
the items you listed?
Here, 5 indicates MOST
important and 1 indicates
LEAST important
Type of venture
(for example: tech, non-
tech, product, service
etc)
Market potential
(for example: large,
growing, specialized,
niche etc)
Tasks you want
completed before
investment
6. Task based Workshop
3 Tasks
1.Fill out survey individually
Have you returned your filled out survey?
Please get your labels
and stick them on your shirt or dress
7. Task based Workshop
3 Tasks
1.Fill out survey individually
Have you returned your filled out survey?
2. Engage in first funding exercise
A = INVESTOR
B = ENTREPRENEUR
8. Task based Workshop
3 Tasks
1.Fill out survey individually
Have you returned your filled out survey?
2. Engage in first funding exercise
Fill out responses and hand them in
3. Engage in second funding exercise
A = ENTREPRENEUR
B = INVESTOR
9. Task based Workshop
3 Tasks
1.Fill out survey individually
Have you returned your filled out survey?
2. Engage in first funding exercise
Fill out responses and hand them in
3. Engage in second funding exercise
Then fill out responses and hand them in
11. Myths About Startup Funding
• Of over 500,000 employer firms that get started in the US,
how many get VC funding?
– less than 1000
• If you do get VC funding, there is a 50% chance you will
not be the CEO of your venture the next year
• Most Inc 500 firms get no outside funding
• About 2/3rd
firms that go public, get no VC funding
• So, HOW do startups get funding?
12. If not formal investors, who funds startups?
Before we tackle this question, let us consider the fact that
YOU DON’T NEED MONEY
YOU NEED WHAT MONEY CAN BUY
13. If not formal investors, who funds startups?
Maybe the question should be,
WHO IS NOT YOUR POTENTIAL INVESTOR?
14. Bird-in-hand
Crazy Quilt
Lemonade
Pilot-in-the-plane
Affordable Loss
Start with who you are, what
you know and whom you know
Decide up front what you are
able and willing to lose
Build a growing network of
self-selected stakeholders
Put surprises to work for
you – both good and bad
Co-create the future without having to predict it
PRINCIPLES OF
EFFECTUATION
17. ‣ You decide what you want to
do based on the opportunity
you envision
‣ You decide what resources
you require to achieve that
vision
‣ Then you target those who
can best provide the resource
‣ You craft a pitch that will
induce them to give you what
you want
‣ You decide what you can do
based on your means and
affordable loss
‣ You ASK anyone who may be
interested in helping you co-
create the future
‣ You craft a variety of ASKs
that allow people to opt in in
their own way at their own
levels of affordable loss
‣ You are OPEN to reshaping
your vision through
stakeholder commitments
vs
causal
pitch
effectual
ask
18. Cocreating the Future
What
can I do?
Affordable Loss
Interact
with
other people
Effectual
stakeholder
commitments
Who I am
What I know
Whom I know
Bird in hand
20. Art of the Effectual Ask
How do you control a future you cannot predict?
You co-create it through stakeholder commitments
Co-create
Plan Persist
Adapt
Low
High
Low High
PREDICTION
CONTROL
You ask them
what it would
take for them to
come on board
You may or may
not know what
they want, but
you don’t care
You estimate
what they want,
and you create a
quid pro quo
You try to find
out what they
want, and try to
offer that
21. What
can I do?
Affordable Loss
Interact
with
other people
Effectual
stakeholder
commitments
New
Means
New
Goals
NEW MARKETS
Expanding cycle of co-created resources
Converging cycle of co-created constraints
Who I am
What I know
Whom I know
Bird in hand
Surprise!
Lemonade
Who WE are
What WE know
Whom WE know
Bird in hand
What
can WE do?
Affordable Loss
Co-creating the Future
22. Investing as Asking
• You don’t need money per se to build your venture
• Similarly, you don’t need money in order to invest
23. Investing as Asking
• You don’t need money per se to build your venture
• Similarly, you don’t need money in order to invest
• Invest your bird-in-hand
24. Investing as Asking
• You don’t need money per se to build your venture
• Similarly, you don’t need money in order to invest
• Invest your bird-in-hand
• Invest what you can afford to lose
25. Investing as Asking
• You don’t need money per se to build your venture
• Similarly, you don’t need money in order to invest
• Invest your bird-in-hand
• Invest what you can afford to lose
• Become a self-selected stakeholder
28. To learn more, visit
www.effectuation.org
saras@virginia.edu
Notes de l'éditeur
can we add a ball in the air with the pitch and a ball (globe) being dropped between the two hands in the ask? Also, I don’t like the hands or their positioning in the ASK part of this slide. Finally we don’t want to say open ask here -- just “ask”