1. The Effectual Catalyst
Masterclass Venture Health Check
Spiegeltje, spiegeltje aan de wand...
Corina Kuiper
22 May 2014
© The Effectual Catalyst

2. The Effectual Catalyst
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3. The Effectual Catalyst
Mirror, Mirror, on the wall…….
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4. The Effectual Catalyst
Mirror, Mirror, on the wall…….
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5. The Effectual Catalyst
…how to keep yourself honest
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6. The Effectual Catalyst
…but how do other people look at you
compared to others
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7. The Effectual Catalyst
The illusion that we make our own decisions
68
32
16
0
84
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Source: Dan Ariely

8. The Effectual Catalyst
PREDICTABLY
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9. The Effectual Catalyst
How your environment impacts your behavior
Source: Dan Ariely
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10. The Effectual Catalyst
…so if you are an apple, you don’t want
to be compared with an orange
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11. The Effectual Catalyst
You need a common language!
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12. The Effectual Catalyst
Venture Framework
• Innovation type – which changes are needed?
• Age – what should be your deliverables?
• Entrepreneurial behavior – how should you
behave?
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13. The Effectual Catalyst
Each types of innovation requires its on approach
Granularity of Innovation is courtesy of
Fred van Ommen (Bizz Innovation Group)
Corina Kuiper (The Effectual Catalyst)
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14. The Effectual Catalyst
emerging
growth
mature
decline
Disruptiveness (proposition is…)
Marketlifecycle(Segment/geo)
Defend market
share & margin,
outsourcing
improved
product
new in
category
new
adjacent
category
new to
world
New CategoryExisting category
Granularity of Innovation
Granularity of Innovation is courtesy of
Fred van Ommen (Bizz Innovation Group)
Corina Kuiper (The Effectual Catalyst)
See presentation
SMB
April 2013
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15. The Effectual Catalyst
HOW OLD ARE YOU ?May 22nd, 2014 © The Effectual Catalyst 15

16. The Effectual Catalyst
A Staged Process for Successful Venture Development
Each phase has its own specific characteristics and therefore requires a
different way of working, organization set-up, culture/mindset and
performance indicators
Time
5. Market
Calibration
4. Beta3. Alpha2. Seed
1. Pre -
seed
Expanding5. Market
Calibration
4. Beta3. Alpha2. Seed1. Pre-Seed Steady
State
DeclineIdeation
Venture phase
Business Creation
Research
phase
Established business
Business
Management/Operations
Maturitylevel
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17. The Effectual Catalyst
Stages and Gates
• Length of each stage and the funding needs will be radically different
depending e.g. on the sector the venture is operating in
• Gate reviews are important milestones and should have qualified (external)
assessors
• The greater the degree of disruption ( innovation, market, channel), the
longer the period of market development
• New ventures live and die on results, not process
• Venturing is Darwinian, survival of the fittest
Expand/
Capture
the Value
5. Market
Calibration
4. Beta3. Alpha2. SeedIdeation
Gates
1. Pre-Seed
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18. The Effectual Catalyst
How do I know my age
Expand/
Capture
the Value
5. Market
Calibration
4. Beta3. Alpha2. SeedIdeation
Gates
1. Pre-Seed
• Use a venture framework that:
 Uses “best practice” research in internal and external venture
development
 Describes clearly what is needed at the end of each stage
• Don’t perform the healthy check by yourself but ask
experienced people who are able to do ‘pattern recognition’
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19. The Effectual Catalyst
Dimensions of Venture Development
Venture Framework is courtesy of
Fred van Ommen (Bizz Innovation Group)
Corina Kuiper (The Effectual Catalyst)
If you want to know more
about the Venture
Framework, please
contact Corina Kuiper
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20. The Effectual Catalyst
In different flavours available
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21. The Effectual Catalyst
In different flavours available
Publiek Private Samenwerkingen
(Centre of Expertise,
Centra voor Innovatief Vakmanschap)
Start-ups
Corporate Venturing
Venture as well as portfolio
Executive Master of Business
Innovation in Health
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22. The Effectual Catalyst
SMALL EXERCISE
Matching stages
Expand/
Capture
the Value
5. Market
Calibration
4. Beta3. Alpha2. SeedIdeation
Gates
1. Pre-Seed
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23. The Effectual Catalyst
jjk
The Effectual Catalyst
Ventures act as
grown-ups
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24. The Effectual Catalyst
Think as an entrepreneur
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25. The Effectual Catalyst
Entrepreneurs constantly
make decisions and take action
How do they
do that?
Are there any universal
methods or principles
they use?
To answer these questions, Dr. Saras Saravathy, a cognitive
scientist, conducted a study * of expert entrepreneurs
The results? EFFECTUATION
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26. The Effectual Catalyst
Managerial Thinking (Causal)
Given
Goal
M1
M2
M3
M4
M5
Select between given means to achieve a pre-determined goal
Given means
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27. The Effectual Catalyst
Entrepreneurial Thinking (Effectual)
Imagined ends
Imagining a possible new end using a given set of means
Given means
M1
M2
M3
M4
M5
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28. The Effectual Catalyst
Elements of Entrepreneurial Thinking &
Action
Effectuation consists 4 principles and of a unique world view
Assess your Assets Limited your losses
Pick your Partners Leverage surprises
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29. The Effectual Catalyst
1. Bird in hand principles
When expert entrepreneurs set out to build a new venture, they start with
their means: who I am, what I know, and whom I know. Then, the
entrepreneurs imagine possibilities that originate from their means.
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30. The Effectual Catalyst
1. Starting point for the venture
Goal oriented:
Goals define the resources
required for a particular
venture
Means oriented
Own means / resources /
contacts define potential goals
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31. The Effectual Catalyst
2. Affordable loss principle
Expert entrepreneurs limit risk by understanding what they can afford to lose
at each step, instead of seeking large all-or-nothing opportunities.
They choose goals and actions where there is upside even if the downside
ends up happening.
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32. The Effectual Catalyst
2. Risk perception
Focus on expected returns
Venture should maximize risk
adjusted return
Focus on Affordable loss
Venture should not risk more
resources than can be afforded
to be lost
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33. The Effectual Catalyst
3. Lemonade principle
Expert entrepreneurs invite the surprise factor. Instead of
making “what-if” scenarios to deal with worst-case scenarios,
experts interpret “bad” news and surprises as potential clues
to create new markets.
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34. The Effectual Catalyst
3. Attitude towards contingency
Avoidance
Planning and focusing on goals
help to avoid contingencies
Leverage
Contingencies provides
opportunities that can be used
to own advantage
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35. The Effectual Catalyst
4. Crazy quilt principle
Expert entrepreneurs build partnerships with self-selecting
stakeholders. By obtaining pre-commitments from these key
partners early on in the venture, experts reduce uncertainty
and co-create the new market with its interested participants.
EARLY YES’s
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36. The Effectual Catalyst
4. Attitude towards outsides
Potential competitors
Protection of ideas is
important, as one needs to
position oneself in competitive
environment
Potential partners
Partnerships emerge as
stakeholders commit resources
to the common venture while
influencing its development
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37. The Effectual Catalyst
5. Pilot-in-the-plan principle
By focusing on activities within their control, expert entrepreneurs know their
actions will result in the desired outcomes. An effectual worldview is rooted
in the belief that the future is neither found nor predicted, but rather made.
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38. The Effectual Catalyst
5. View of the future
Forecast
Environment is externally
given, forecast help to adapt to
it
Co-create
Prediction is not possible, since
future environment depends
on own actions
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39. The Effectual Catalyst
To the extent I can predict
the future, I can control it.
To the extent I can co-create
the future, I don’t need to
predict it.
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40. The Effectual Catalyst
Mirror yourself!
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41. The Effectual Catalyst
The next time you look it the mirror
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42. The Effectual Catalyst
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