You are previewing How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO.
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How to Create the Next Facebook: Seeing Your Startup Through, from Idea to IPO

Book Description

In just under a decade, Facebook has gone from a Harvard prodigy's dorm-room experiment to an essential part of the social life of hundreds of millions of children, teens, and adults across the globe. It's no surprise, then, that the company has been the subject of countless magazine articles, books, and even movies. But despite the extensive coverage that has been given to the company in the years since founder Mark Zuckerberg first took Facebook live on Harvard's server, one question remains unanswered: From a business standpoint, how, exactly, did Facebook do it?

How did a college student with no real-world business experience take a relatively simple idea and then, less than ten years later, turn it into a $100 billion dollar company? What specific steps did Facebook take along its journey to creating perhaps the most innovative startup of the 21st century? What approach did it take when pitching venture capitalists, and how did it go about forging its many strategic partnerships? And, most importantly, how can would-be founders learn and effectively utilize Facebook's unique techniques and strategies in their own startup efforts? In How to Create the Next Facebook, tech guru Tom Taulli answers all of these questions and more, crystallizing the process by which Facebook was shepherded from idea to IPO to provide a guided blueprint for budding entrepreneurs who are ready to start building their own great business.

Regardless of what stage of development your startup is in, How to Create the Next Facebook provides you with clear, compelling, and ultimately actionable advice extracted from Facebook's startup success story. You'll learn how Facebook handled the very same situations your startup is confronting—from how it arrived at its mission statement to what its priorities were during its talent search process—before gaining access to all the concrete, practical guidance you need to make the right decisions for your company and continue moving forward with confidence. And, of course, because Facebook didn't get everything right at first, author Tom Taulli painstakingly details the company's most costly mistakes, documenting everything from its protracted legal struggles to its many failed attempts at establishing multiple revenue streams, so that you can arm your company against the various challenges that threaten to sink even the very best startups.

By the time you turn the final pages of How to Create the Next Facebook, you'll realize that Facebook is more than just a fun place to catch up with old friends; it is the ideal model to follow for those who, like you, are ready to build the world's next great startup.

What you'll learn

After reading this book, you will be able to:

  • Capitalize on the Facebook phenomenon and understand how top startups are built.

  • Avoid the most common pitfalls that cripple young ventures and improve your startup's chances at long-term success.

  • Uncover innovative ways to boost your startup's growth and learn the importance of developing multiple revenue streams.

  • Understand the startup financing process, from angel funding to the IPO.

  • Protect yourself, your company, and your intellectual property from the competition.

  • Create a sustainable and profitable company with long-term growth prospects.

Who this book is for

How to Create the Next Facebook is specifically designed for the more than 400 million estimated entrepreneurs worldwide who are currently in the process of developing their own company. In addition, this book will appeal to aspiring entrepreneurs of all ages who, although they have not yet begun to develop their own company, are nonetheless interested in doing so in the future. Finally, thanks to the general interest that mainstream movies, narrative books, and the site itself have generated for Facebook, those who are fascinated by the company and want to learn the ins and outs of its early business efforts will constitute a third audience.

Table of Contents

  1. Titlepage
  2. Contents
  3. Foreword
  4. About the Author
  5. Introduction
  6. Chapter 1: The Mission
    1. Have Passion for What You Do
    2. Be Committed to What You Do
    3. Aim High
    4. Think Big
    5. Be Prepared to Fail
    6. Put It All Together
  7. Chapter 2: Legal Structure
    1. Obtain Legal Services
    2. Consider Incorporation
    3. Determine How to Split Equity Before the Need Arises
    4. Use Vested Founders’ Stock
    5. File Your Patents
    6. Think Creatively About Your Company Name, Register Your Trademark, and Secure Your URL
    7. Adhere to Government Regulations
    8. Consider Other Protections
  8. Chapter 3: The Product
    1. Creativity
    2. Timing and Some Luck
    3. Simplicity and Focus
    4. Elegant Design
    5. Engagement
    6. Convictions
    7. Fun Stuff
    8. A Platform
    9. Reactive Product Design
    10. Mobile First
    11. Stealth Startup
    12. Physical World
  9. Chapter 4: Raising Capital
    1. Start up Lite
    2. Know the Types of Investors That Are Out There
    3. Understand the Stages of Investing
    4. IPO Funding
    5. Know When to Raise Funds
  10. Chapter 5: The Pitch
    1. Elevator Pitch
    2. The Deck
    3. Seeing Is Believing
    4. Executive Summary and Business Plan
    5. Rookie Mistakes When Making the Pitch
    6. Presentation Skills
    7. Practice Meetings and Plan of Attack
    8. Finding the Right VCs
    9. Data Room
    10. Be Wary of the Fake VC
    11. Don’t Get Too Excited
    12. Thick Skin
    13. Let the World Know
    14. Leverage Your Investors
    15. Summary
  11. Chapter 6: Deal Terms
    1. Being a Dealmaker
    2. Negotiating Tips
    3. Get Some Thick Skin
    4. Liquidation Preference
    5. Board of Directors
    6. Anti-Dilution
    7. Pay-to-Play
    8. Drag-Along
    9. Not-So-Important Clauses
    10. Due Diligence
    11. Summary
  12. Chapter 7: Go-to-Market
    1. Key Marketing Metrics
    2. Partnerships
    3. Viral Distribution
    4. Search Engine Optimization (SEO)
    5. Meetups
    6. PR
    7. The Celebrity Factor
    8. Summary
  13. Chapter 8: The Financials
    1. Accounting Fundamentals
    2. Conservativism
    3. Income Statement
    4. The Balance Sheet
    5. Statement of Cash Flows
    6. Summary
  14. Chapter 9: The Business Model
    1. Facebook’s Business Model
    2. Payments Business
    3. Revenue Drivers
    4. Business Model Innovation
    5. Marketplace
    6. Freemium
    7. Selling Data
    8. Commissions
    9. Flawed Business Models
    10. Finding the Ideal Business Model
    11. Summary
  15. Chapter 10: Being a Great CEO
    1. “CEO Lessons”
    2. Just Say “No”
    3. Speed
    4. Avoid the Evils of Politics
    5. Data-Driven
    6. Question Assumptions
    7. Don’t Be a Fake CEO
    8. Follow Your Passion
    9. Summary
  16. Chapter 11: The Team
    1. Mistakes and Stages
    2. Need a Co-Founder?
    3. Recruiting
    4. Hiring Uber Engineers
    5. Sales People
    6. Compensation Strategies
    7. Outsourcing
    8. Layoffs
    9. Summary
  17. Chapter 12: M&A
    1. Reasons to Buy a Company
    2. Reasons Not to Buy a Company
    3. Due Diligence
    4. Integration
    5. The Integration Plan
    6. Compensation and Benefits
    7. Communications
    8. Summary
  18. Chapter 13: Selling Your Company
    1. Deciding to Sell
    2. Finding Buyers
    3. The Deal Process
    4. Summary
  19. Chapter 14: The IPO
    1. Reasons to Go Public
    2. Disadvantages of Going Public
    3. Getting IPO Ready
    4. Becoming a Real Company
    5. The IPO Process
    6. Selecting an Exchange
    7. The Road Show
    8. IPO Day!
    9. Culture Change
    10. Lessons of the Facebook IPO
    11. Summary
  20. Chapter 15: Wealth Management
    1. The Startup Days
    2. Secondary Transactions
    3. The Big Time
    4. Asset Protection
    5. Philanthropy
  21. Chapter 16: Conclusion
    1. Computers
    2. Energy
    3. Biotechnology
  22. Glossary
  23. Index