Today's Guest: VC and Startup Studio Director Mike Jones

Today:


📜 Interview with Managing Director of Science Inc. Mike Jones

✔️ One Question to Help Me Understand Your Startup Journey

We’re talking with Mike Jones, Managing Director of Science Inc., a startup
studio and venture fund based in Santa Monica, CA. Mike and his team have had the privilege of launching several very successful ventures like Dollar Shave Club (acquired by Unilever for $1Billion), Liquid Death (raised $200Million in funding), Pray.com and PlayVS (raised $106Million in funding). They have also invested in several companies that were acquired or went public like Bird and Wealthfront.

Mike is an expert in early stage startups. He’s great at helping entrepreneurs find big opportunities that others may have missed. We’re excited to have him help us today.

Now, let’s hear from Mike Jones with Science.

Anything shown below, in bold, is my emphasis for the readers.

Aron: Most of the entrepreneurs in our community have an idea they want to pursue. But, most of us don’t know what to do immediately after we come up with an idea. Every day, people come into Science Inc. that fit this profile. Can you walk us through the first couple of steps you take with an entrepreneur with big dreams and an idea?

🧑‍🔬 Mike: Meeting entrepreneurs is always interesting and exciting for us. When meeting, there are a few core factors we look out for and ask ourselves:

• Is the entrepreneur the right person to take on this challenge? Do they have a personal connection to the problem, the ability to recruit a high-talent team, and do they have a history of execution?

• Has the entrepreneur shown there is a positive market reception to the concept?

• Can the entrepreneur show independently or with our help an achievable forecast to best estimate the cost and revenue growth of the business?

• Can the entrepreneur independently or with our help show an assessment of the competitors in the market and their respective scale and funding?

  
  

Aron: At what point in your process do you explore the entrepreneur’s level of expertise in the category that (s)he is looking to disrupt?

🧑‍🔬 Mike: We prefer to see entrepreneurs take on problems they are personally connected to and have experience, interest, and curiosity to employ in solving for the opportunity.

Aron: Do you find that an entrepreneur will have a difficult road ahead of them if they don’t have intimate knowledge of the industry they want to disrupt?

🧑‍🔬 Mike: There can be advantages and disadvantages to being an industry outsider. A strategic hire, investor or advisor can help close the gaps on necessary knowledge like regulations. However, not having intimate industry knowledge also often means you don’t have preconceived notions, and you might be more likely to find a disruptive path that others overlook.

Aron: Do you start recommending an entrepreneur mock something up to show early customers? Or, is it not necessary at all in the early days if they want to work with you?

🧑‍🔬 Mike: Since we historically have operated by a studio model, we do appreciate when we’re able to nurture a brand from Day 1. By leveraging our partners, capital, and resources, we enjoy working with seed-stage founders directly to get to market faster, recruit key execs, and raise sufficient capital for longevity.

Aron: On average, how many years does a founder work on a startup?

🧑‍🔬 Mike: As a startup advisor, I’ve seen it all. I’ve seen ideas sketched out on a paper napkin to fully formed decks with projections. The duration of a founder's involvement in a startup involves a ton of factors, such as personal goals, financials, changing market dynamics, and the trajectory/resources needed for the startup itself.

Aron: Ok, everyone wants to know about raising money from a venture capitalist. Investors very rarely fund ideas. Almost never. At what point is Science comfortable with writing the first check to an entrepreneur? What milestones do you like to see hit before you invest?

🧑‍🔬 Mike: We definitely look to invest in startups that have achieved certain milestones or have found product-market fit. Before writing that first check, we’re looking for a few things:
1. product development — is there a prototype we can look at?
2. evidence of market demand — here we’re looking through metrics such as user engagement, customer feedback, early sales or partnerships, and user growth.
3. market validation — why is this necessary?
4. interesting business model or IP advantages — this is a defensible competitive edge that’s intriguing.

Thanks Mike!
➡️ You can follow Mike on Twitter here: Mike’s Twitter
And you can keep up with everything Science is up to here: Science’s Twitter

⏸️ Hey, real quick. I need to understand where you are in your journey. Can you make one click below and tell me? 👇️ 

Until next time, best of luck out there!

Aron

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