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Summary:

Rich Miner is famous for co-creating Android, the mobile OS powerhouse, and now helps head up Google Ventures portfolio. What does he look for in a cool startup?

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Rich Miner has a lot of startup cred. After all, he co-founded Android, the mobile business which sold to Google in 2005 and only turned into the world’s most widely-used mobile operating system. Now he’s general partner with Google Ventures and works out of a rapidly expanding building in Cambridge’s Kendall Square.

Here are 5 criteria Miner uses to evaluate potential investments.

Cabinet blueprint1: People first.

What some VCs (and often the rest of us) tend to forget is that technology isn’t everything. In an interview at Google Ventures Cambridge location, Miner said he looks for founders and teams he wants to work with even if their technological background isn’t there. He cited the founders of CustomMade, a site that helps buyers wanting custom-made goods connect with craftsmen who build them.

“These were guys out of real estate. they like the idea of ‘made local’ and the makers movement. They bought a listing site and converted it over to a marketplace.” They had a passion for this idea, so he went with them. CustomMade has garnered about $24 million in funding, the last $18 million round led by Google Ventures closing last month.

2: Focus on three Ds: Design, design, design.

Design experts or not, would-be founders must grasp that design — whether it’s of the user interface or of a physical product — is key to success, not an afterthought. Google Ventures loves the maker movement, an outgrowth of the Do-It-Yourself push, which promotes local manufacturing of actual, physical products by craftsmen.

3: Mobile chops.

It’s no surprise that the co-creator of Android thinks there’s a lot of life left in mobile. Tablet in hand, Miner demonstrated how he often sees people using their glitzy electronic devices as nothing more than glorified clipboards to support a pen and paper. (Admit it, you do this too.) “Whenever I see that, I think, ‘there’s an unmet opportunity.’” he said.

He cited PlanGrid, another Google Ventures-backed company, which built a blueprint app for architects and engineers. “People draw up blueprints on paper, use them once and throw them away. That’s a $3 billion opportunity,” he said.

4: Solve a real problem.

Too many would-be startups pitch a solution in search of a problem instead of something that really eases someone’s pain. Yesware (yes, another Google Ventures company) realized that email is broken for many folks and that the best way to improve it is to attack it vertically, based on what the user does, Miner said. “Sales people spend a ton of time tracking email and looking for feedback. And the last hour of the day they spend telling Salesforce all about the emails they sent.” Miner said. Yesware automates a lot of that heartache and provides automatic feedback on who opened what emails and when.

5: Ability to make something.

CustomMade shelf unit Or, at least the ability to help others make something. Again Miner cites CustomMade as an example. “When you buy something at Restoration Hardware, it’s never quite right. The craftsmanship is not good, 60 percent of the cost is from fuel charges shipping it from Vietnam or wherever.” CustomMade lets customers specify the design of what they want, dimensions, materials, where it can be made.

He drew up a design of a shelf unit he needed for this office and submitted it for construction. Artisans on the site submit their bids and the user selects and is quite happy with the result (see photos left and above.) Unlike some competitive bidding sites, the idea here is for discerning buyers to get (and pay for) exactly what they want, which in an ideal world means the makers get compensated well. Miner said average sticker price is $1,000.

Four-year-old Google Ventures, which has $1.2 billion in funding, has had a couple of meaningful exits including Parse’s acquisition by Facebook, Stamped’s buyout by Yahoo  and IPOs of HomeAway  and Silver Spring Networks.

 
  1. Nicholas Howard Friday, July 12, 2013

    I so want to finish my business plan to propose to them….

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  2. Mobile is by all means the way forward specially in third world countries. Mobile penetration rates are much higher then that of Facebook or internet for instance and cheaper mobile phones are making internet more accessible in even remote areas in third world country. People in these remote areas have limited market places to shop from, mobile can do a lot to help them and that is what we are working on. We aim to build the biggest marketplace in the world and not by using apps as such.

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  3. Dwight Galler Saturday, July 13, 2013

    It’s a bit surprising that “solving a problem” is #4 on the list. If this criteria was important enough to make the top 5 , you would think it would be number one. If it is not number one, it is easy to understand why so many ho-hum tech companies garner funding, and why 9 out of 10 fail.

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  4. Oliver Deighton Saturday, July 13, 2013

    Great to hear Google Ventures also shares a passion for the maker movement. As a society, including as an economy, we’ve over-indexed on the idea that everything should be made as cheaply and quickly as possible. Proud to have Rich on the board at VigLink.

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  5. they r big people. will the voice of some software gangs of kolkata be ever heard by these people ? i doubt. idea will remain idea and money will be spent in round after round VC, where most will fail and the rest will be market listed to return the initial investor’s money. very few will become a Microsoft/Google/Yahoo/Facebook.

    - @upal_

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  6. John M Sutton Saturday, July 13, 2013

    “Too many would-be startups pitch a solution in search of a problem instead of something that really eases someone’s pain.” Troubling but true, this is often encountered as a result of developer-founders spending years “heads-down” over a keyboard. Incessantly coding, instead of conducting customer-facing meetings that might create validation or even necessitate a pivot, and guided by a mercurial product roadmap unpinned to any buying-criteria. Expanding on “Pain”, I prefer gauging it in several different ways including Past – Present – Future. 1. Past Pain – Whatever is hurting your potential buyer, how has this “ache” prevented this person (or business) from experiencing more success, happiness or being more efficient? As one example, is it possible to quantify opportunity cost? 2. Present Pain – How is this pain or obstacle impacting a “day in the life” of your potential buyer? Is he or she even aware that a solution may exist, a better way? Will you be selling against entrenched legacy processes or systems? 3. Future Pain – If your solution is truly capable of alleviating your buyer’s pain, what is he or she able to accomplish tomorrow that they cannot today? How does the buyer’s life or job change with your solution in place? Where would they spend their time instead? Is there some method of quantifying (projecting) the value of these future possibilities? Answering these questions, you not only calibrate a “Pain” you can address, and better know your buyer personas, but also get a handle on pulling together your startup story. What do you think? http://startupexecutives.tumblr.com/

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  7. I have a great tech idea which is really simple but revolutionary… don’t know how to take it from there…. all that is required is a little bit money, a coder and BAM! think bigger than Facebook or Google itself. It has been almost a year now and I’m almost prepared to shout it from the top of some roof. I’d hate for it die. Nothing is worse than a dead idea.

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    1. Raymond Valme Wednesday, July 17, 2013

      You are not alone…good luck and start shouting…

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  8. 1. check
    2. check
    3. check
    4. check
    5. check

    See you soon ….. wyconn.com

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