Startup studio playbook for entrepreneurs pioneers and creators who want to build ventures faster an

Page 1


Startup Studio Playbook For entrepreneurs pioneers and creators who want to build ventures faster and with higher chance of success Master the studio framework and start building Attila Szigeti

Visit to download the full and correct content document: https://textbookfull.com/product/startup-studio-playbook-for-entrepreneurs-pioneers-a nd-creators-who-want-to-build-ventures-faster-and-with-higher-chance-of-success-ma ster-the-studio-framework-and-start-building-attila-szigeti/

More products digital (pdf, epub, mobi) instant download maybe you interests ...

Beginning Visual Studio for Mac: Build Cross-Platform Apps with Xamarin and .NET Core Alessandro Del Sole

https://textbookfull.com/product/beginning-visual-studio-for-macbuild-cross-platform-apps-with-xamarin-and-net-core-alessandrodel-sole/

Google Data Studio for Beginners: Start Making Your Data Actionable Grant Kemp

https://textbookfull.com/product/google-data-studio-forbeginners-start-making-your-data-actionable-grant-kemp/

Underdog Entrepreneurs: A Framework of Success for Marginalized and Minority Innovators Horatio M. Morgan

https://textbookfull.com/product/underdog-entrepreneurs-aframework-of-success-for-marginalized-and-minority-innovatorshoratio-m-morgan/

Visual Studio Extensibility Development: Extending Visual Studio IDE for Productivity, Quality, Tooling, and Analysis Rishabh Verma

https://textbookfull.com/product/visual-studio-extensibilitydevelopment-extending-visual-studio-ide-for-productivity-qualitytooling-and-analysis-rishabh-verma/

Google Data Studio for Beginners: Start Making Your Data Actionable 1st Edition Grant Kemp

https://textbookfull.com/product/google-data-studio-forbeginners-start-making-your-data-actionable-1st-edition-grantkemp/

Learn Data Science Using SAS Studio: A Quick-Start Guide Engy Fouda

https://textbookfull.com/product/learn-data-science-using-sasstudio-a-quick-start-guide-engy-fouda/

Visual Studio Extensibility Development: Extending Visual Studio IDE for Productivity, Quality, Tooling, Analysis, and Artificial Intelligence 2nd Edition

Rishabh Verma

https://textbookfull.com/product/visual-studio-extensibilitydevelopment-extending-visual-studio-ide-for-productivity-qualitytooling-analysis-and-artificial-intelligence-2nd-edition-rishabhverma/

Researching The Efficacy of Studio Education and the Profession s Futurity The Faculty Project of Architectural Studio Education 3rd Edition Professor

Dr. Michael Karassowitsch

https://textbookfull.com/product/researching-the-efficacy-ofstudio-education-and-the-profession-s-futurity-the-facultyproject-of-architectural-studio-education-3rd-edition-professordr-michael-karassowitsch/

Researching The Efficacy of Studio Education and the Profession s Futurity The Faculty Project of Architectural Studio Education 3rd Edition Professor

Dr. Michael Karassowitsch

https://textbookfull.com/product/researching-the-efficacy-ofstudio-education-and-the-profession-s-futurity-the-facultyproject-of-architectural-studio-education-3rd-edition-professordr-michael-karassowitsch-2/

Startup Studio Playbook

How to build new products and ventures faster and with a higher chance of success? Explore the startup studio approach through real-life stories. Expand your skills with a pragmatic and proven framework. A guide for entrepreneurs, pioneers and creators.

CONTENTS

Title Page

Copyright

Foreword

PART I - Overview

A place for pioneers and creators

Startup studios in a nutshell

Are startup studios for me?

PART II - Stories

Emerging from Beta

TechnoSpark: A conveyor of hardware startups

Game Plan

Building a 100% co-owned venture builder

Building startups from megatrends

Culture is a verb

Ahead of time

Changing eCommerce, one startup at a time

Stretching our limits

PART III - Framework

Studio Leadership

Vision and strategy

The Studio Funnel

Entrepreneurs-in-Residence and CEOs

Core Team

A preview on financial modeling

Fundraising and investor relations

Corporate venture builders

Further readings

Copyright © 2016-2019 by Attila

Startup Studio Playbook

StartupStudioPlaybook.com

StartupStudio.vc

Cover design by Patrícia Havancsák

All rights reserved. For information about permissions to reproduce selections from the book, or about special discounts for bulk purchases, please get in touch at http://www.startupstudioplaybook.com/contact

Second Edition, 2019

Author’s note:Theentrepreneurs andstartupstudioswhose examples and stories you will read in this book have been incrediblygenerous withsharingtheirstoriesandsecrets.Ialso wanttothankyou, DearReader , fortakingyour timetoexplore startup studios - an approach that empowers us to bring our ideastolifeandthuscreatingvalue.Thankyou!

Foreword

The technology studio is a playbook that aims to create valuable startups with more speed and agility than traditional venture models. Studios are the auxiliary structure for creating scalable, successful entities with the ability to scale and innovate rapidly.

Los Angeles is an uncommon tech town, a place where I drive past three movie studios to get to work. Being in Southern California gives me a unique outlook on startup creation. As it does for studios located in other parts of the world like New York, Berlin and the UK. The idea of our startup studio is ternary:

1. to originate ideas and concepts for startups, 2. to invest and advise,

3. to acquire properties and redistribute resources and scale them.

In the past we’ve worked at the active intersection of content and commerce, social systems and marketplaces. Just this year alone, this thesis as a blend of art and science generated three exits for Science Inc. - Dollar Shave Club, HelloSociety and FameBit. Other studios like Expa and Betaworks too did tremendous, well-regarded work.

The definition of studio – a structure where artists, operators and producers work - is much more potent when applied to innovation. The future for tech studios is exciting and impressive. Our responsibility is to identify trends and provide people the tools and space to create world-changing technology. The future is mobile, and it is time to expand the studio model thesis to other areas of growth.

What we need to do now is grow vehicles and help the next generation of entrepreneurs beyond just providing capital. The studio’s mission is to provide team support, engineers, marketing encouragement, a fertile environment and become the experts in

understanding how to leverage data and insights to move quickly, learn from failure, and iterate for value.

Attila’s book is a comprehensive and profound look into the strategic nature of studios and entrepreneurship, and a great resource for those looking to learn more. I’m excited to see what the future holds as we all continue to push tech talent forward. We’re all here to create and support brands that inspire. So successful venture builders, entrepreneurs, and readers of this book, I urge you to continue looking at things a bit differently.

Let’s continue transforming.

PART I - Overview

A place for pioneers and creators

What, in this world, is our task? To struggle, and to nourish the needsofthespirit;[...] accordingtoourstrength,fornoblegoals.”

Hi, my name is Attila. And the above quote is from a poem by Mihály Vörösmarty: Thoughts in thelibrary - a poem that serves as inspiration for my professional career. If only we could replace the word “struggle” with something more constructive, like: pioneering and creation. If only we could remove the “struggle” entrepreneurs and creators alike need to go through nowadays while giving life to new products and companies.

This is the mission of this book. To show you a pragmatic framework and hands-on guide on how to turn ideas into viable ventures without struggle. To explore how people already succeeded with startup studios, and how you can do the same. Even for personal use: how to use this studio approach to work on your personal side projects and ideas.

Enabling creators and enriching entrepreneurship

Startup studios are organizations that produce companies. Studios are not purely financial investors or mentors to startups, but are the founders and builders. Startup studios - also known as venture builders, foundries, factories - have some inherent values worthy to explore:

● Studios empower the entrepreneurs and innovators to focus on creating value. Building a meaningful product, focusing on what clients need. The studio provides a stable platform, the

financial and human resources, a place where creation can happen.

● It accelerates the venture building process and so it adds an important time-advantage against competitors that use more conventional business methodologies.

● The studio approach makes it possible to build an an antifragile organization. One that has self reinforcement capabilities - making it stronger and more efficient after each idea explored, after each startup built.

Assuming that the studio is well designed and operated. This book will show you how to do this. You will read real-life stories and proven practices of already successful venture builders. And you will find a flexible startup studio framework that you can use for your purposes.

If you are familiar with software development frameworks like Ruby on Rails, then think about studios this way: This is a framework to create companies. It comes with certain typical and proven architectural elements, conventions and scaffolds - all proven in real production environments, with the aim of making it easier to create new and viable ventures. Like with development frameworks, you can use studios as it fits you best - use popular templates, insert your own custom code, even experiment with crazy new methods. Anything you want, to create companies one after another in an efficient and thrifty way.

Fortunately, more and more entrepreneurs, investors and even corporations are using the studio approach. From the first one in 1996 (Idealab), about 50 in 2015 to more than 300 today. This means, that there are more and more of these places that provide a nurturing environment for value creation.

A hands-on guide for practitioners

This book aims to give you a wide overview and hands-on guide on this pragmatic framework. With this knowledge in your hands and mind, you will be able to:

● Decide whether the startup studio approach is right for you, and if yes, in what way you can use it.

● Design a startup studio that fits your vision and long-term strategy. And set things in motion - raise funds, build your team, generate idea and create companies.

● Have meaningful discussions and arguments in favor (or against) the studio approach, it’s use in your line of work and its role and impact to the startup ecosystem. There are three main sections to the book:

1. PART I: A birds-eye overview on what the startup studio approach has to offer to entrepreneurs, builders, innovators, investors and corporates. How it works? What are the pro-s and con-s? Is it useful for you?

2. PART II: In the second section you will read about the stories of diverse founders and their studios. Many of these are guest chapters, giving you a unique look into that team’s thinking process and recipes used. They often share rare secrets, like the details of their cap tables (how they divide equity of the startups among their team) and investment logic.

3. PART III: The third part is about the components of a generic studio framework. How to formulate a thesis and strategy? How to set up the startup funnel - the venture manufacturing processes? Who are the key people in a studio, and how to attract them?

After reading the book, I strongly suggest to reach out to the community, browse popular knowledge sharing platforms like Quora and search for studio related knowledge. Also, buy a pack of post it notes and start experimenting with the methods described. In the last year we’ve seen many new experiments and initiatives, including maps of studios, funds that specialize in financing such venture builders, new theories. All worth checking out discussing if you have anything to do with entrepreneurship and innovation.

Widening your perspective with the studio approach, implementing one or more elements of the framework into your own line of work could also . Especially if you are someone who wants to create a stream of new products and companies.

From struggle to studios

My personal motivation and belief in the studio approach came in 2015. Back then I was transitioning from a corporate career to entrepreneurship. In 2014 I started my first digital company and in that same year, after almost 12 months of struggle, I failed. As a first-time entrepreneur, I made almost all the mistakes a first-time entrepreneur could make. But fortunately, I got a second chance.

The next year, 2015, was the year of my redemption.It was the year when I stumbled upon the inspiring phenomenon of startup studios - that was still unknown for almost everyone expect a few dozen organizations globally.

To uncover their secrets, I did dozens of interviews with startup studio thought leaders and spent hundreds of hours on research to uncover their secrets. And to find out how we can also build an organization that mass-produces startups. That research gave birth to my early publications on the studio approach: the Startup Studio Trends Report 2015 and the Anatomy of Startup Studios. A year later the first edition of the Startup Studio Playbook went live on Product Hunt.

The next years I spent being Chief Operating Officer at Drukkamy startup studio “alma mater”. I also did advisory work for emerging startup studios. Nowadays I’m back again at building startups as Co-Founder and CEO - using the approach described in this book. All these refined and cultivated my knowledge in this domain.

This is the reason for this Second Edition. I want to give you an updated knowledge about startup studios: a mindset and collection of methods that empowers the creation of new products startup companies - in a safe, disciplined, time and cost efficient way.

A joint effort to make the studio approach more accessible

The first edition of this book was made possible by a 2016 Indiegogo campaign and equally important, the altruistic contribution of some the World’s most exciting and pioneering entrepreneurs.

They made great contributions to the Startup Studio Playbook by sharing their know-how and stories and thereby making the startup studio approach more transparent and accessible. I’d like to express my utmost gratitude to Denis Kovalevich; Daniel Ilkovich and Josh Auerbach; Ryan Negri; Peter Langmár, Daniel Nagy, Ádám Bankó; Henry Nilert, Niko Porkka and Juho Oranen; Jons Janssens and Barbara Putman Cramer; Thibaud Elziere and Pauline Tordeur, Máté Rab and Csaba Zajdó, Tamás Bohner.

So far the Startup Studio Playbook is available in English, Japanese - thanks to Nikkei Business Publisher and Quantum Inc., Persian - thanks to the personal effort of Nima Aghvami, Russianthanks to TechnoSpark and Rusnano, and there has been a Special Edition for the French SCS Cluster thanks to their new Hola’Up studio.

There are Slack, Facebook and LinkedIn groups where you can ask your questions and share your experiences. Find links to these communities at: http://www.startupstudioplaybook.com/community

I’m also creating a new site where I will share useful extensions to this book: sample org charts and simple basic templates for the use of creating new studios. Find all these at: startupstudio.vc

The technology and methodology for creating businesses is ever evolving. The startup studio approach is one more tool in the entrepreneur’s toolbox that enables exploring new products and services and creation of value. Let’s enrich entrepreneurship together.

- Attila Szigeti

Startup studios in a nutshell

Startup studios are platforms that enable earliest-stage venture building. In thischapter , we will look at the main characteristics of the approach. Then, in PART II you can learn about real-life examplesandcase studies.In PARTIIIwe willdivedeepintoeach componentofastudioandhowtosetthingsup.

There are different implementations of the studio approach, depending on who the founders are, what the vision of the organization is. But the recipe is similar. Here are the common steps to build a startup studio:

● Take a core team & entrepreneurs in residence;

● Add shared infrastructure & in-house funding;

● Generate ideas internally, or in some cases, act as a cofounder;

● Build multiple startups in parallel;

● Trash what doesn’t work, reassign team – so you keep all the expertise;

● Spin off what works into a dedicated company;

● Grow. Exit. Repeat.

Some people call such organizations startup factories, foundries or venture builders. There are only slight nuances between each of these names, so I will use them interchangeably. The main difference between studio and accelerators and incubators are: the studio is a (co)founder and builder of startups - it’s not just about giving some money and mentoring. It’s about exploring markets, creating ideas, building them into products and companies.

The big promise of this approach is: the studio provides an ideal base for entrepreneurs and creators to quickly create and validate

new business concepts. Because there are resources available inhouse, the team can focus on the product and the customer. And for the investors, the startups created in the studio can become a steady source for future investments.

The result is a more efficient way of building startups. Studio can thrive even in regions where the startup ecosystem is not fully developed. A studio can provide an almost ideal place for entrepreneurs, by creating an in-house critical mass of talent, financial resources and opportunities.

Startup studios on the rise

Since Idealab kicked it off in 1996, more and more studios have been emerging. Some founded by successful entrepreneurs, some by investors or investment firms. The more famous ones include Rocket Internet, Betaworks and Science-Inc., eFounders. There are even studios focused on monetizing university research.

Number of exits is also on the rise. A giant success for the startup studio model is the $1 billion exit of Dollar Shave Club, which was one of three exits that Los Angeles based Science-Inc. scored in 2016.

If you read any startup related magazines, you will find more and more about how this new model is changing the entrepreneurial game. Links to these and similar articles are included in the last chapter called Appendix-Sources.

“Entrepreneur-turned-investor is a classic story arc in Silicon Valleybutrecentlytheplothasearnedatwist.Certainoperatorsare foregoing the traditional path of joining a traditional VC to instead createastudio-likeholdingoperation.” on TechCrunch

“This ‘startup studio model’ is becoming increasingly popular in theUSandEurope” on Tech.eu

“You’llwanttogetusedtotheideabecausewe’regoingtoseea lotmoreventure-buildingorganizationsemerging.” on VentureBeat

“Being a Startup Studio means that we develop ideas into productsandproductsintocompanies.We’re leanandtheability to

quickly innovate, build and test new products gives us much more flexibilitythanatraditionalrigidstartupmodel.” on RyanNegri.com

“If you ask most startup studio owners, they will tell you that they are simplyprofessionalizing the discovery and tractionphase.” on TheNordicWeb.com

Main drivers of growth

This spread is amazing! There are many reason for this trend, I believe the top 3 are:

1. More successful - post-exit - entrepreneurs don't just want to sit back and act as pure financial investors or retire. They want a platform for themselves that enables them to stay involved in earlystage building and gives them an opportunity to experience building an entire portfolio of startups not just single ideas.

2. A lot of organizations have their own startup accelerator program. But most of them are only marketing stunts - “producing only T-shirts and coffee mugs” as Steve Blank puts it. Corporations that want to expand with startups need a better approach - that gives them more control and better ROI.

3. As a later-stage investor, you must compete for the really good deals. I expect more VC-s to realize that there is another alternative: Build your own future deal-flow - preferably with an approach that gives you better results than the old "9 out of 10 startups fail".

Advantages

Diversification and failure tolerance: If you run a regular startup, failure means the end of the road. In a studio you run multiple startups and make many small bets. In case of failure you can reassign the team and retain talent and expertise. If your startupbuilding processes are tuned the right way, you can achieve high levels of cost-efficiency and shorten cycle time. You basically become an idea generation and validation engine, and you only build stuff that really works. It’s easy to trash out week ideas if you have dozens to choose from. And while you do this, you keep your team together, even grow as some ideas will become successful. And by

doing so you are building up your own critical mass of startupbuilder talent.

Higher return for investors: A higher equity stake in startups also means that in case of exit, the returns are much bigger for the studio and their investors. Assuming you build a good stream of startups and aim for early exits, this can provide you with a fast return on your investment.

More efficient use of talent: In a studio, you have centralized teams and you assign them to startups in a flexible way. Too often startups can’t afford top talent. Studios have a proportionally larger budget for the core team. They can afford to hire a big gun, build a team around him, and distribute their skills among the startups when those startups need it. For example, your senior designer might be fully occupied with designing a brand new product for startup A, after which you can reassign him to startup B while the previous startup changes from design to sales stage.

Enabling entrepreneurship: With a studio you create an environment that makes it easier to build startups. With good procedures, even a first-time entrepreneur has a reasonable chance of building a successful startup. Good for the local ecosystem. If you have seasoned CEO-s who’ve already built startups, their experience will uplift the whole studio, adding to the collective knowledge. Studios also motivate people that wouldn’t have launched a startup to do it. For instance, people who want to build a company, but do not have an idea they believe in enough in to take the risk. Or people who cannot afford not to take a salary for one or two years.

Challenges and risks

Capital Intensity: You will need a large initial investment to build up a full core team and pay for the infrastructure & resources of many projects at the same time. Or you will have to settle for a slower startup building speed.

Capitalization tables: Startup studios as an institutional shareholder usually have a large portion of the equity, often exceeding 50%. From an outsider’s point of view this might raise a

red flag. What they don’t always see at first is, that the studio is not just a shareholder, but the main founder in the startup. But fact remains that the dedicated team of the startup will have less equity than in traditional startups. And that raises questions about their motivation, incentives. The solution is simple: Hire people who want to have the benefits of a studio and accept the tradeoff in equity. There are plenty of young entrepreneurs out there who are passionate about building a business - and who have the ability to commit to an idea that they together decide on with the startup studio.

Convincing investors for the first time: Because of the above, investors who have no previous experience with studios might be skeptic. To convince them of the worth and value add of the studio, one has to show the investors how the studio will continue to contribute to the startup’s success even after spin-off. Also, it’s common to give more equity to the startup team in later fundraising stages (from the studio’s shares) to uphold their motivation.

Authenticity: Some worry that studio teams, “hired guns” won’t be able to build an authentic startup. They argue that if you aren’t working on your own idea, then you won’t be fanatic about it and able to put in all the needed work. As I see it, this is only true if you are dealing with one-trick ponies. I know many talented and experienced entrepreneurs who are passionate about entrepreneurship and venture building itself as well as many people who want to build a career as a professional CEO. Finally, the studio and founders themselves will be a great source of authenticity.

Internal Competition: Scarce central resources within a studio will lead to occasional conflict between your startups. To manage this, the Leaders of the organization need to set clear guidelines on how startups can access your core teams and what the default priorities are. Encourage regular discussions, for example Scrum-like standup meetings, so every team member and startup is aware of current priorities and expected incoming work. Build and maintain a cooperative environment and work culture.

Future of the studio approach

As Ryan J. Negri, serial entrepreneur and founder of Laicos Startup Studio once said: „Normally in tech, when you read about somethinginabook,it’salreadyoldnews.Thistime,you’re reading about a trend that will be wildly popular in 1-3 years. From an investorstandpoint,putting money intoa studioshouldbeeasy. By investinginonecompany, youinvestinawholeportfolio — allheavily vetted startups, qualified and guided, by the company and core teamyoutrustedwithyourmoneyinthefirstplace.”

I predict four trends for 2019–2022:

1. More accelerators will experiment with studio approach. This is because they will want to reduce risk and cost, increase control of the startup build process.

2. More „Entrepreneurs-in-Residence” will be needed: people who understand the studio model and have entrepreneurial attitude.

3. Studio approach as a new tool in Intrapreneurs’ hands, and corporations will experiment with this kind of venture building as a strategic tool in their innovation strategy.

4. More studio mentors and advisors will be needed who know how to put together such a venture building machine. There will be new experiments in funding studios (reference funds, studios with multiple funds covering a wider spectrum from initial investment to post-Series A rounds…) and the whole framework will evolve.

These are exciting and good times to be an entrepreneur and creator. So let’s find out if studios are right for you or not?

Are startup studios for me?

To answer thisquestion,let’s lookat whatadvantages can itbring tobuilda studioorjoinone. Even ifyou are notdirectlyinvolvedin creating startups, you might find valuable insight and perspective about how to use parts of thisapproach - e.g. for turning personal ideasintolucrativesideprojects.

In the previous chapter I mentioned, that to me the top three values of the studio approach are: Focus on values and creation; Acceleration of the company building process; Making the team antifragile.

Such an approach in business is not only nice to have, but is becoming vital. It’s one thing that there is an abundance of available capital to emerging and growing startups. But there are structural problems no one can escape. Cracks in the fabric that lead to the anecdotal “9 out of 10 startups fail”, that lead to entrepreneurial burnout, that lead to over-valued startups that fail in the end. These structural problems - and how the studio approach fixes it:

● Commitment before traction: Usually, startup founders need to put their passion into their new idea to be able to convince others to join and convince investors to give money for the building part. This can easily lead to “passion-blindness”, where one has a hard time letting go of an idea - even if the market doesn’t want it. Using Design Thinking and Lean Startup methodologies helps. But studios go one step further: They give entrepreneurs and innovators a chance to first prove the viability of ideas (and they provide all the resources to do this), before committing. This results in a better selection and thus higher success rate.

● Catastrophic impact of failure: When a traditional startup fails, all is lost. The collective knowledge of that team is gone, entrepreneurs face long recovery times. A studio is a platform where the impact of failure is greatly reduced. Even if a startup fails, the studio has the ways and means to reassign team members to new projects. So with every initiative, the Core Team will have more and more expertise in ideation, validation, building of a new product or service.

So if you want to take part in experimenting with and creating new products and companies AND you want to get rid of the above risks, then you are reading the right book.

Entrepreneurs and idea owners

For entrepreneurs who are preparing to launch their next venture, the startup studio approach lowers the risk and impact of failure. Build your startup in an easy and safe way. For first-time founders the additional benefit is the knowledge-base of the studio, which increases the chance of success.

Even for seasoned entrepreneurs, there are added benefits: There is an already functioning team behind you who can execute your vision for the new startup. And there is a wide network of investors and partners will make it easier to arrange for follow-on funding.

Software or marketing agencies

If you run an agency and you want to explore better ways to use your resources to create value, then you can explore this approach. With the methods shown in this book, you could dedicate part of your company to build internal startups - which could bring you much higher return on your investment than flat-fee or hourly rate based agency assignments.

Accelerators and incubators

Leaders of Accelerators and incubators might find methods that can enrich their ongoing startup programs. Traditional startup

accelerators (even corporate-funded) are good for many things:

● give room to new entrepreneurs to learn the startup way;

● bring out new - and many times crazy - ideas;

● build a network of innovators.

But what happens after Demo Day? Usually nothing. The accelerator ends up with a few dozen more startup logos on their portfolio site. Most of them won't survive next year. Maybe there will be some light alumni activity. And then the next batch starts to produce another dozen new logos on the trophy-wall.

Steve Blank has an excellent article titled “The Innovation Stack: How to make innovation programs deliver more than coffee cups”find the link in the Appendix / Sources. Read that as well and try to locate the part where the studio approach can make a highly beneficial impact.

Traditional startup accelerators are usually not good for:

● leveraging the potential of teams who need to restart with a new idea;

● generating profit for the corporate or VC behind the accelerator;

● bringing the startups from Demo Day through funding to exit.

To achieve these, you need to add another layer, one that's more like a startup studio. A layer that solves salvaging teams from unsuccessful initiatives and sticking to the startup from idea to exit. Combine an already existing accelerator with a studio “division” and you can dramatically increase the system-s overall efficiency.

And we are starting to see this happen. Even “traditional” startup accelerators are experimenting with the studio model. Among others, 500 Startups launched 500 Labs, Techstars is also creating it’s studio. And this is good for everybody, especially entrepreneurs and the investors!

Investors

VC-s and angel investors will get a high-level understanding of how startup studio can provide a stable deal-flow for their main

funds. From the investor's point of view, investing into a studio means:

● Invest in a portfolio of companies that's exact composition is not exactly known at the time of the investment.

● Potential ROI from dividends and/or selling the equity in the startups.

● Opportunity to proactively shape the characteristics of the studio's startup portfolio - in some cases right from the ideation stage.

The main advantages:

● One-to-many investing: one investment decision will result in equity in multiple startups.

● Reduced impact of failure (e.g. no loss of team, quicker recovery and restart times)

● Higher level of control/governance -> later-stage VC-s could invest in a studio to nurture their future deal-flow

Corporates

Corporate innovators will get to know a new method for boosting their company’s innovation output. Corporates love to say they are innovative. But usually a large organization is optimized for stability, and not for fast and break-through innovation. More and more corporations are separating the innovation teams from the main organizations, to shield them from bureaucracy, while protecting the main brand from startup risks. I call this Startup-as-a-Service. And we will look at this in the chapter Corporateventurebuilders.

PART II - Stories

Emerging from Beta

There are only a few startup studios that have such a well-known and trusted brand, that it makes entrepreneurs’ eyes shine, and investors’pocketsopen. OneofthemisNew-YorkbasedBetaworks. With hundreds of investments and dozens of self createdstartups, theyknow whatittakes tobuildnotjustone successfulstartup, but anetworkofcompaniesthatstrengtheneachothers.Inthischapter , thefirstofthecase studieswe’lllookintohowtheyenablehackers andentrepreneurstothrive.

“We want to empower regular people to rule the web.” This is the vision of Daniel Ilkovich, CEO of a company called Dexter. He and his growing team of engineers are building an open platform to enable a more interconnected Internet. Although we are only speaking through video-conference, I can feel his passion. And it doesn’t take too much time until I also get excited for the endless possibilities of an even more interconnected and automated future.

Dexter is a portfolio company of Betaworks, the legendary NYC based startup studio. I say legendary for a reason. Since 2007 they have invested in way more than a hundred companies. They are usually the first money in. Part of their success is that they roll up their sleeves and they are with the startups they invest into or create themselves. They invested in well-known companies like Tumblr, Venmo, Kickstarter and Medium, and built startups like Giphy, Chartbeat and Bitly.

The base recipe is, like for most studios, that they have a strong core team for startup building. This includes data science, designer, branding, distribution along with deep product experience and a considerable network of investors. When they start a company - like

Dexter - they fund it internally for the beginning, until it gets traction. As the startup experiment grows and starts to look like a good business, Betaworks helps the startup team to raise funds, set up a dedicated company and grow.

There is something for everybody. Hackers can join and explore product ideas and build something together. Already existing teams can get seed investment. And Betaworks is also a great place to find a startup for those who want to join one.

Through the story of Daniel Ilkovich, and his company Dexter we’ll see under the hood of how such a startup studio works.

What is Dexter?

There are many trends in technology, one of them is the evolution of the User Interface. First we had punch cards, then the command line interface, followed by the graphical user interface. Nowadays we have voice, chat bots, and who knows what will come next.

But one thing doesn’t change. To power all our software, we need to glue them together in the background, to enable different apps to talk to each other and exchange data. More often this is achieved with so called Application Programming Interfaces, API-s. API-s are a set of routine definitions, protocols, and commands that give you access to a software’s certain resources. This makes it much easier to make two or more software to work together than to create a custom code every time the need for integration appears.

To tie these API-s together and create complex processes, automations, you need a kind of glue. Like Dexter, that enables developers and alike to develop third-party API integrations into an app that can be easily shared and used. These apps can range from simple alert apps that monitor for example price changes and sending notification to the desired channel to more complex ones. Dexter is almost limitless, offering the blend of flexibility and simplicity.

With Dexter, you could simply move data from one app to another, handle rss feeds, notifications, automations. There are bots

that help to buy and sell real estate. You can create entirely new apps almost without coding, just by connecting API-s.

Dexter was designed to combine ease of use with limitless scalability. Some of the “glues” out there are dead-simple to use, but have serious limitations. Dexter is an API-glue that removes limitations, as it enables to to build as much complexity as you want. And still remains easy to use. Beginner users can simply take already published apps and customize them, while experienced engineers can write and upload their own Javascript code and do magic. This is what enables the democratization of bots and automation in general, which is in the center of Daniel’s vision. This is why Dexter is built entirely as an open platform, where users can use their own Javascript code to create newer and newer bots and publish them for the use of the community.

Daniel, who has a considerable background in enterprise automation, is building Dexter as an engine that powers all the things behind the interface.

First steps

Daniel spent a good chunk of his early career as consultant, solving business automation challenges for enterprises. His bread and butter was to figure out how they can improve often old enterprise systems and processes in a way that empowers regular people in their jobs.

Then he started his own company, building tools for the real estate industry, helping to sell apartments. As a true hacker-in-heart, Daniel always enjoyed sticking things together and make them work. For example he worked on http://getmaid.com/ later acquired by Homejoy. This mentality and an old friendship lead him to work for a startup project under the Betaworks umbrella. One thing led to another, and Daniel ended up in the already successful Hacker-InResidence program.

With his background and experience, Daniel could have started a traditional startup the traditional way. But as a product guy, what he really wanted to do is to build something that works and people use,

then refine it and do something else. And because he already had a family, the high-risk startup world was not his best option. On the other hand, the creative environment combined with the safety that Betaworks provided was the ideal playground for him.

Hackers-in-Residence is like a melting pot for great hackers. Engineers can come with or without ideas. The recruitment criteria, among cultural fit, is to be able to build something on your own. Once hired, participants are free to experiment with new product ideas that might become one of the startup studio’s next big things. In 2013, such initiatives included now popular startups like Giphy, Dots, and Poncho.

When Daniel joined, his thoughts centered around business process automation, but without a clear product vision. So he experimented with different ideas until he was ready to pitch it to the Betaworks partners. But all things led back to the topic he was passionate about since early career: How to empower people to bring out the most of technology?

Before the pitch day, Josh Auerbach, Partner and CFO at Betaworks sent out a memo. “Do you have any ideas you want to build?” asked the question. Then in a roundtable meeting, people discussed all the possibilities.

Making the decision to build Dexter had the usual challenges startup studios face. There are always multiple projects to choose from. But the resources are limited. So the Betaworks management looks at implicit and explicit criteria. Founder vision, founder - idea fit, technology trends. This is where you need experienced and flexible top management. In Betaworks fortunately each startup has its own milestones and priorities, and the BW team is flexible in this.

Considering that APIs are eating the World, and that Daniel had extensive knowledge of the business process automation field, Josh believed that Dexter could become another success story of Betaworks. When this technology will be commonly known, there will be massive communities with people who enable each other. And that’s the end goal.

Once there is green light for a project, Betaworks spends little money on it, to build a beta, put it out there and see how it works.

Then as they become more successful, they spend more and more resources on growing the user base, polishing the project and eventually spin it off into a separate, autonomous company.

Growing within a studio

After some weeks passed and Daniel had a working prototype up and running, it was time to formulate the validation and growth strategy. The idea was to market Dexter to engineers, who will contribute their own work to the Dexter app-marketplace, so there will be a lot of opportunities to use pre-defined bots. Then, when there is a critical mass of expert users and content, it will be easier to expand into another segments and move toward end users.

In the early days, Betaworks organized a Dexter-hackathon. With a few dozen engineers from the Betaworks family and few dozens from the outside, it proved to be a fertile ground for experimentation with the early prototype. Even senior partners, including John Borthwick and CFO and Partner Josh Auerbach created their own Dexter apps. Speaking about eating one’s own dog food.

The initial results were promising. Fortunately, Dexter demos extremely well at meetups, hackathons. So that’s one of the best early adopter acquisition channels. And since Betaworks is not aiming at immediate monetization, Daniel and his team have time to expand the platform and aim for a critical mass of pro users before opening the gates to end-users.

Growth and user acquisitions are tricky challenges. Right now Dexter is something engineers can enjoy. Monetization in this stage is unlikely. Instead, with the help of early adopters Dexter will grow to a distribution platform and then Daniel & Team can open the gathers to additional customer segments.

Benefits for the Entrepreneur

One great benefit Betaworks provides is flexibility. The kind of flexibility that enables a bunch of top-notch hackers to tinker around with ideas. And the flexibility of resource allocation. Another great advantage is the space. The Betaworks HQ provides a fertile ground

for innovative ideas, easy-flow, and inspiring people who feel like family.

In the early days, when dust settled on the vision, and the initial product was ready - and ready to be polished, Daniel could easily tap into the central Betaworks talent pool, get onboard a few contractors who helped him to polish the prototype.

Now, more than a year later, after Dexter was spun-off from the “mothership”, he already has a dedicated team of four - all engineers. While continuously getting support and advice from Betaworks partners like Josh, Daniel has the freedom to run his business in a way he sees fit.

Still, building a startup in a studio often requires a heavy split of equity. In this case, the usual recipe is around 50% Betaworks50% team equity. Compared to a regular startup and investor, this sounds outrageous. Considering the added resources and benefitsthe space, the team, the network, the expertise - it’s a fair deal.

Daniel loves to code and hack together things. So for him, the safe and creative environment provided by the Hackers-in-Residence program was a blessing. Not having to worry about the impact of early-stage failure, not having to build a business plan and pitch deck and chase for initial investment for months is a huge relief. If Betaworks believes you and your vision, the napkin-pitch is more than enough to get the necessary resources to build a beta, put it out there and see how it does.

Having the studio at your side comes handy whenever you want to focus on product and growth and not on administration. Betaworks partners will guide you through the challenging process of growing a startup. They can provide valuable back-office services so you don’t have to hire a dedicated admin staff for the startup. This saves time and money. Especially if you are a product-focused CEO like Daniel, who likes to put on the developer’s hat and not come out from under it too often.

Fortunately, there was a strong cultural fit between Daniel and Betaworks since the beginning. As an introvert, Daniel would normally sit in a corner and hack things together. But in the Betaworks HQ, the community is so vibrant and friendly, that it

Another random document with no related content on Scribd:

Foster crumpled the paper craftily. Woodart was about ready to start banking checks in six or seven figures, and— Harry Foster left the restaurant and headed back toward Hollywood.

The locomotive thundered across the stage at a forty-five degree angle, filling the theater with a wave of heat and a puff of smoke and steam. Then it was past and gone, and its string of cars rumbled out of "offstage" to the right rear to the "offstage" at the left-front corner. It slowed and stopped, and the porter and passengers emerged; the principal players of the scene appeared and went through their action.

"Now that," said Hammer, pleased, "is a right good scene."

"Y'know," smiled Jenny Foster, "people are going to be so surprised to see the real thing come roaring across the stage that they're going to forget a couple of rather irrelevant items like having their heroine's head nineteen feet in diameter."

"Yeah," drawled Hammer, "and tell the crook to shave closer A closeup of Jack Vanders looks like a pincushion with telephone poles shoved in. Didn't know hair could be so big!"

"What bothers me," smiled Martha Evers, "is where I drink that Manhattan in the close-up. Darned drink must be all of twenty-three gallons."

"That isn't the main trouble with that scene," objected Vanders cheerfully. His saturnine face was only for selling purposes; a more pleasant villain was seldom to be found. "What bothers everybody is that you can smell the odor of that drink, it's so big. Half of the wouldbe sots in the audience are going to be as dry as the Sahara by the time Evers gets it down."

Martha laughed, "Hammer is a great one for realism," she said, "but I hope he doesn't insist on a real slug of cyanide in the poisoning scene. I hate to think of twenty gallons of cyanide!"

"No doubt," laughed Hammer. "But what we ought to do is to have Woodart fix up some way of stopping that thing during close-up. We could start with a normal Martini and end up with fifty gallons."

Woodart shook his head. "Cost twenty times as much liquor itself," he said with a good-natured smile. "You see, the energy that keeps this thing in balance comes from the wipe-out of the previous scene. Stop it that way and your light bill heads for the ceiling."

"O.K.—it was just an idea."

Vanders faced the group. "Look," he said. "I'm a professional villain, and all villains are supposed to want something for nothing and finding out that it can't be did."

Woodart agreed.

Then the scene changed to an overhead shot of Cincinnati. Taken by helicopter, the scene was an angle shot down across Fountain Square towards the river. In the cinema such shots do not seem bizarre, but in solid, the street with its teeming cars and pedestrians was tilted at an angle: the angle between street and camera remained as it was, and the camera, of course, became the projector which was in the back of the theater.

The "eye" zoomed down and the street grew in size until the fountain that gave the Square its name was in plain view. It seemed incongruous that the water in the fountain came out at an odd angle to gravity and fell back at another odd angle, yet this was not a running reproduction of Fountain Square but a swift series of instantaneous reproductions and the droplets of water like everything else was replaced in whatever relative position it was, regardless of the facts of true gravity

The scene tilted flat, finally, and traveled along the street on the level until the principal character was approached, whereupon the action began. The camera followed Jack Vanders into a bar where he met Martha Evers and ordered the Manhattan that was to become Gargantuan in size—

Jenny Foster put her face up for a good night kiss, and then shoved her apartment door open as Tim turned to leave. Inside, the living room light was on, and Jenny instantly called Tim back.

"Someone," she said, pointing to the lights.

"O.K." he said, entering before her. Sprawled in Jenny's easy-chair was—

"Foster!"

"Who—me?" asked Foster in surprise. "Foster's dead."

"Can it," snapped Woodart. "And talk!"

"Or else?" drawled Foster indolently.

"Or else," snarled Woodart.

"Or else what?"

Tim went to the telephone and dialed the number of the police force.

"Don't bother," said Harry Foster. "I'm ... Foster, that is, is dead."

Tim replaced the telephone. "What's the gag?" he demanded.

"I," said Foster hollowly, "am a ghost returned to plague mine unfaithful wife."

"The hereafter is going to have a moaning ghost with a shanty on its eye," said Woodart ominously. "Unfaithful wife my foot. If ever she—"

"Now that's been the big bone of contention," smiled Foster "Foster gave her no grounds, and she was too good to give me any. And Foster gave her none because it is still impossible to have a wife testify against her husband."

"Very sly of you."

"Of Foster."

"You're Foster!"

"Me? No. Foster's dead."

Jenny gave a weak cry of despair. "What do you want?" she asked.

"How much have you got?" asked Foster pointedly.

"Blackmail," snarled Woodart.

"Why no. Not at all."

"You name it."

"It need have no name. You see, Woodart, I've learned that I no longer need the protection of the legality that prevents a wife from testifying against her husband. Her husband is dead."

"So?"

"Well, it isn't blackmail to perform a service for someone."

"Meaning?"

"Divorce comes high," explained Foster pointedly.

"After which—if done—you could continue to ask for more," said Woodart angrily. "You could threaten to prove that you were paid to get the divorce, a mere matter of blackening the character of a woman whose only error was being blind enough to take a second look at you."

"Your ingenious mind is too complex," said Foster quietly

"May I point out that if you are dead, you are dead, and therefore—" Foster laughed nastily. "Legally and physically, Harry Foster died and was buried. Legally there is nothing that could possibly prevent you from marrying her if you wanted to. But you see, Woodart, my wife is a completely moral woman, to say nothing of ethical. Though it is legal, there is still the gnawing doubt in her that she is compounding a felony—bigamy."

Jenny made a plaintive gesture, "I'll wait until he asks me—" But she was not heard. Tim Woodart snorted. "So you think they'll be hesitant about punishing a dead man?"

"What do you think?"

Woodart strode forward and took Foster by the lapels of his coat, gathered them into one hand, and lifted the crook out of the easychair with an angry shake. "Then they can't book me for assault and battery upon the person of a corpse," he gritted. His free hand came

back and forth across Foster's face, driving the heel's head from side to side. Then Woodart shoved him back, letting go of the lapels and using that hand to bury itself to the wrist in Foster's midsection. As Foster folded forward, Tim straightened him up with an upward chop to the jaw

Foster crumpled, and Woodart lifted him by the collar and dragged him to the door, hurling him into the hallway. Foster turned, wiping blood from his face, and spat like an angry cat.

"That'll cost you, punk," he snarled.

Woodart laughed.

"Laugh," leered Foster. "You can't bring suit for divorce against a dead man, either!"

Harry Foster opened the door to his apartment and nodded quite genially. "Come in, gentlemen," he said overpolitely.

State attorney Jones was less cordial, and Lieutenant Miller was harsh.

"You're Harry Foster."

"I am. Strange coincidence, isn't it?"

"Coincidence my—"

"Be careful," warned Foster. "You wouldn't want to insult a citizen, would you? It might go hard with you."

"You're Harry Foster."

"I am."

"Then who was the man that was buried?"

"That is the coincidence," said Foster sorrowfully "He was another Harry Foster. I understand that he was a rascal and definitely needed killing."

"Where were you when that deed was done?"

"Me? Look, sir, am I under suspicion?"

"Could be."

"Then produce your warrant! I shall take no guff from you nor any of your ilk."

"Take it easy," said Jones. "An innocent man has nothing to fear."

"An innocent man," said Foster, "has plenty to fear. Scheming politicians and courts who like to see convictions. Also there is the protection of the Constitution of the United States that grants me the right to do as I please so long as I am lawful about it."

"It also grants us the right to protect other people," said Lieutenant Miller. "As for a warrant, we have a search warrant—plus the fact that we know that murder was done in this apartment not more than two weeks ago."

"You're in," said Foster. "And you may leave as soon as you can. I'll not detain you."

"You know," said State attorney Jones, "this man answers the description of the man who is wanted for any number of assorted crimes from forgery to grand larceny. In every way he fills the bill. I think we will arrest you, Mr. Foster."

"You'll be sorry. This is false arrest."

"Indeed. In this country, all arrests are false arrests because it is a statement of intent that all men are innocent until proven guilty by a court of justice! Ergo, we take you into custody whether innocent or guilty and we will permit the judgment of the court to decide your status. Coming quietly—or would you prefer to resist arrest?"

Lieutenant Miller looked eager. "Please resist," he said clenching his fist.

"Unclench it," snapped Foster. "You touch me and I'll prove that you wantonly and brutally attacked an innocent victim without provocation."

"I've provocation enough," snarled Miller. "My sister—"

"Your sister suffered deeply at the hands of this blackguard Harry Foster," said Foster oilily. "But because he resembled me and wore my name is no logical nor lawful reason for identifying your hatred of him against me. That is a psychopathic failing, Lieutenant Miller."

"I'd like to make a pathological mess out of you," snapped Miller.

"Mr. Jones, you will remember that threat," said Foster. "As State attorney, it is your duty to protect the innocent."

Jones closed his lips over hard teeth and said nothing. He would have enjoyed the job of protecting Foster against a hungry hyena.

Foster went with them, but his manner was not that of a dangerous criminal who had been apprehended. It was that of a man who knows all the answers.

"The defendant, Harry Foster, is charged with Murder in the First Degree," said State attorney Jones. "This is a strange case, gentlemen of the jury. It is without precedent, and, therefore, your action will establish a precedent. I charge you to consider not only the case at hand and to try it with the utmost regard to justice, but to remember, as you are considering the evidence to be presented, that this is but the first of many cases that will certainly follow. I—"

"I object! The defendant is on trial, not the Judicial System of the United States!" shouted Defense attorney Cranshaw.

Judge Carver said, "The objection is sustained. Strike that from the record."

Jones turned to the Court. "Your Honor, I request that my statements about the establishment of precedent be retained."

Carver nodded. "It is true that this case will establish a precedent. Yet the trial at hand is the only thing of importance."

"I accept," replied Jones, and returned to the jury.

"I will attempt to show that the defendant did produce a living duplicate of himself after which he killed the duplicate. I call for my first witness the inventor of the device, Timothy Woodart."

Tim came to the stand and was sworn. There was considerable questioning to establish the qualifications of the witness, during which Cranshaw said to Foster: "This will be a thin case, Foster. Yet, if we can establish a reasonable doubt, the result will be an acquittal."

"Thin nothing," laughed Foster. "Just tie 'em up as I told you!"

"All right," replied Cranshaw uncertainly. "But it will be like arguing on one side for part of the time and then switching sides in the middle."

"What do you care so long as we win?"

"I don't," grinned Cranshaw. "Listen—Woodart is starting to give pertinent testimony."

"Mr. Woodart," asked Jones, "is it possible for your device to be stopped at such a time as to leave a complete set?"

"Yes," said Woodart.

"And you've known this all along?"

"Naturally. I invented it."

"Then the device is essentially a duplicating device?"

Woodart nodded. "It is, but like all such devices, it requires power. The laws of conservation of matter and energy make it impractical to produce a myriad of devices from a recording."

"And why is the device practical for the production of panoramic entertainment?"

"The initial power is expended in producing the first replica of the original scene," said Woodart, "after which, the scene is obliterated, which returns the power to the equipment for the construction of the next frame. Aside from the conversion losses and basic inefficiencies, the thing is then self-supporting."

"In other words, if it takes a kilowatt to establish one frame, that kilowatt is returned to the equipment?"

"Yes," said Woodart, "though the power is more on the order of a hundred thousand kilowatts."

"As the main party involved with the equipment, it is your duty to see that it is kept in operating condition?"

"Yes."

"Then tell us, Mr. Woodart, at any time since the device was initiated has there been any expenditure of great power that was unaccounted for?"

"There was."

"And your analysis?"

"On the night of May 18th the power demand meter showed the expenditure of seventy thousand kilowatts. It is my opinion that—"

"I object! That is an opinion, not a fact!" exploded Cranshaw

Jones smiled. "Counsel will admit that it is the opinion of a very qualified man."

"I want it understood that this testimony is but an opinion!"

"Objection noted," said Judge Carver. "Proceed, Mr. Jones."

Jones nodded at Woodart. Woodart continued—

"My opinion is that during the night, someone established a single frame of the opus we were working on. Once this single frame was established, the person removed from the set one object, after which he wiped the stage clean, returning that to the equipment as power but without the object which accounts for seventy thousand kilowatts of energy."

"Mr. Woodart, is there any correlation between this power and the Einstein Formula?"

"No. The matter is not made—manufactured. It is converted. The energy represents the power required to carry the matter from a storage place to the stage. It is somewhat like lifting a weight to a certain height. There is no correlation between the foot-pounds of energy expended in such and the mass-energy of the stone. However, in lifting a stone, the energy expended in lift will be returned when the stone is let down—excepting that part which is removed from the total while the stone is held in midair."

"Then it might be difficult for you to determine just what was removed from the set?"

"It might be," said Woodart, looking hard at Harry Foster.

"That is all, Mr Woodart." To the jury, Jones said: "I think you will find that the testimony just given will prove that duplication is possible. My

next witness will show just who was duplicated. I now call Lieutenant Miller to the stand."

"Lieutenant Miller, when you came to the apartment of Harry Foster, what did you find?"

"I found Harry Foster, dead of gunshot wounds."

"And what else?"

"A revolver."

"And?"

"The revolver was in a far corner of the room," said Miller. "The dead man could not have used it upon himself for numerous reasons, even though the only fingerprints on the weapon were unmistakably those of Harry Foster. One reason is the distance between the body and the weapon; the wounds produced instant death. Another reason is that the dead man's right hand was in his coat pocket—clenched around a duplicate of the revolver."

"You can establish the authenticity of this?"

"Both weapons had the same serial number. Both bore the same scars from use. Both weapons produced the same landmarks upon test bullets. Yet at that time only one weapon had been fired; the one tossed in the corner."

"Your Honor, I enter as Exhibit A these weapons, duplicates of one another. They are definite proof that duplication of objects did take place."

"Evidence accepted."

"It will be noted that the serial number on these guns is registered in the name of Harry Foster. I will suggest no indictment at this time for the criminal act of having two weapons with the same serial number but I do suggest that it be remembered." He turned to Miller and said, "That is all."

Cranshaw arose to cross-question. "Mr. Miller," he asked, "is there any way of telling which of those guns is the original and which is the duplicate. I assume that they are not both duplicates."

"Only the marking on the weapon that was fired after the killing."

"But, Lieutenant Miller, this is not conclusive. Which weapon was used to kill the dead man—the original or the duplicate?"

"I object. That is irrelevant, immaterial, and incompetent!"

Cranshaw smiled deeply "It is all three, Counsel. I want to know at this time who was the killer and who was the duplicate?"

Miller shook his head. "Only he can answer that."

"That is all," smiled Cranshaw.

Jones called the defendant to the stand. "Mr. Foster, did you or did you not make a duplicate of yourself?"

"Objection. The question is an obvious attempt to incriminate the witness!"

"Sustained!"

"I merely wish to establish the identity of the witness."

"Then do it without asking him leading questions."

Jones faced Cranshaw angrily. "How can I?" he stormed angrily. "His name, his measurements, his fingerprints, his ... everything is identical to that of the slain."

"Inconveniently coincidental," smiled Cranshaw.

"Mr. Foster," said Jones quietly, "upon the night of May 18th, was there a duplicate human being made?"

Foster nodded in a superior fashion.

"And are you the duplicate or the—"

"Objection!"

"Sustained!"

"That is all, Mr. Foster," replied Jones angrily. He turned to the jury and smiled. "My points are simple but clear," he said. "Circumstantial evidence it may be, but a more profound interlock of such evidence is seldom found. One: There was a duplicate made. Two, a man was killed by a weapon belonging to Harry Foster, in Harry Foster's apartment, and all evidence fails to show the occupancy of any other human being. Three, the defendant admits that there was duplication made but makes attempt to confuse the Court by denying to answer whether he is original or duplicate! This is an admission that he was the duplicate made—or that he was the original. No denial is made of this. Since it is impossible by any ordinary means to distinguish one Harry Foster—defendant—from the other Harry Foster—victim—a sentence of death is indicated for Harry Foster, the defendant, since the killing conveniently made the only distinction."

Cranshaw arose with a stretch and a smile. "First," he said sincerely, "I want to clear my client of other charges against him. Your Honor, and Counsel for the Prosecution, will you admit as evidence the statements made by relatives, and other competent authorities to the effect that the dead man was the Harry Foster who was wanted for crimes of various nature?"

"I object!" exploded Jones. "If any duplication was made, then the duplicate is equally guilty!"

"All right," said Cranshaw. "Let it pass." He faced the jury with a persecuted air. "Anything to make life difficult," he laughed.

"Now," he said, "may I enter as evidence the suit that the slain man was wearing? It is—or was—identical to that which my client is wearing now. At the present time," he said with a smile, "the client's suit is a little more worn, though in better condition due to the holes in this one. Now, for my first witness I call Dr. Lewis."

"Dr. Lewis, have you ever considered the being of a duplicate?"

"Not until recently," smiled the doctor.

"You are a competent psychiatrist. Can you tell us the responsibilityquotient of a man kept in a state of suspended animation until he was thirty-three years old?"

"He would have little or no sense of responsibility at all."

"Would you say then that a duplicate of any human being was responsible for the acts of the original?"

"I would hate to ponder the question," replied the psychiatrist. "It would depend entirely upon the degree of duplication. Yet it seems to run against the grain to make a duplicate responsible for the acts of the original when up to this time the duplicate had no true identity."

"You assume the duplicate would have an identity?"

"If the duplicate is capable of original thought, he has."

"Yet, Dr. Lewis, what comprises identity?"

"The ego is a rather deep subject," replied the doctor thoughtfully. "The question 'What is this that am I?' is one pondered for many thousands of years. It is still without answer—though it is generally accepted that a man is what he is because of his lifetime of experiences."

"Will you expand upon that, doctor?"

The doctor nodded. "A new-born babe has little true identity or individuality. That is because his only experience is almost congruent with all other new-born babes. As he lives, his experiences will differ because of environment and heredity from others—in the case of twins this is true despite the idea that the environment and heredity is identical. It is not. The environment of Twin A includes the life of Twin B, and vice versa. Therefore each twin must evolve a different identity As a man grows and enjoys experience, each factor changes his personality in some way major or minor, and he emerges a true identity, which, however, is different in some minor way from day to day as his experiences accumulate."

"Then at the instant of duplication, the two persons have approximately the same identity?"

"Yes save for the single fact that one has just been in the process of formation whilst the other was in the process of being recorded. I assume that the two processes are not identical."

"Then," said Cranshaw, facing the jury, "may I point out that no identity was really removed from the face of this earth by this socalled killing. But one birth certificate was issued for Harry Foster. But one Harry Foster lived and grew and became the Harry Foster that many people knew as a motion picture star A duplicate Harry Foster was made, and then eliminated. Harry Foster was killed—and yet Harry Foster remains! If the law states a life for a life, we have it in the person of the living Harry Foster! He—killed himself."

Cranshaw smiled indulgently. "There are laws concerning suicide," he said. "These laws make suicide a felony Because of this there have been many jokes made about the penalty for suicide, but there is good reason for such laws. You see, Gentlemen of the Jury, it is not necessary to wait until the burglar emerges from the bank with his coat pockets bulging to arrest him. You may apprehend him while he is drilling his way into the bank for the crime of Attempting To Compound A Felony. An attempt at suicide is, then, an attempt to compound a felony and the would-be suicide may be apprehended for his own protection. Since the penalties for attempted suicide usually consist of compelling the miscreant to undergo psychiatric treatment to remove the obvious mental unrest that gave him the will to self-destruction, I suggest that my client be given the same treatment for the crime of suicide."

He sat down. "Now," he said with a smile, "that should hang that jury higher than a kite. What is the penalty for successful suicide? Not execution—"

"Shut up," snapped Foster.

The jury returned after many hours, and the foreman arose. "Your Honor, we have deliberated this case and find that our decision requires explanation. Suicide we reason, is self-murder. Since suicide

requires a certain amount of planning and contemplation, we find the defendant guilty on all charges including Murder in the First Degree!"

The roar of the spectators covered up the judge's words, but Harry Foster heard him pronounce the fatal words.

Tim Woodart turned the key in Jenny Foster's apartment, shoved the door open and stood aside to let her enter. Once in the dim living room, she turned and buried her head in Tim's shoulder.

He held her close and stroked her head with one hand. Over her head he saw the clock on the wall, it registered midnight. "Easy," he said softly. "It's all—over."

She nodded, too filled with emotion and relief to speak.

Then as the sweep-hand crept past the instant of midnight, a sardonic voice came from the easy-chair

"A very pretty scene."

Jenny whirled, her face white. "Harry!" she said with a quavering voice.

As Tim faced Foster he asked Jenny to call Lieutenant Miller.

Foster laughed again. "Call him," he jeered. "And remember that the Law of the Land makes it impossible for me to be placed in double jeopardy!"

"What's been done before can be done again," said Tim.

"Uh-huh," laughed Foster. "But not punishment. The Law, yer know

"You see," jeered Foster, "knowing that I am going on and on and on, I merely had Cranshaw make another duplicate of me. Now no one can touch me!"

Jenny turned from the telephone and Tim put an arm about her and led her from the apartment. He left the door open—

"There he is," said Tim, outside. "And you know what he has in mind."

Harry Foster nodded, took out his revolver, and charged in. The quiet apartment was filled with the sudden racket of gunfire, quickly there; quickly stopped.

"Let Miller clean up," said Tim harshly. "But—?"

"They're equally fast and they're equally forewarned. Tough guy—it took four of him to get rid of him."

THE END

*** END OF THE PROJECT GUTENBERG EBOOK PROBLEM IN SOLID ***

Updated editions will replace the previous one—the old editions will be renamed.

Creating the works from print editions not protected by U.S. copyright law means that no one owns a United States copyright in these works, so the Foundation (and you!) can copy and distribute it in the United States without permission and without paying copyright royalties. Special rules, set forth in the General Terms of Use part of this license, apply to copying and distributing Project Gutenberg™ electronic works to protect the PROJECT GUTENBERG™ concept and trademark. Project Gutenberg is a registered trademark, and may not be used if you charge for an eBook, except by following the terms of the trademark license, including paying royalties for use of the Project Gutenberg trademark. If you do not charge anything for copies of this eBook, complying with the trademark license is very easy. You may use this eBook for nearly any purpose such as creation of derivative works, reports, performances and research. Project Gutenberg eBooks may be modified and printed and given away—you may do practically ANYTHING in the United States with eBooks not protected by U.S. copyright law. Redistribution is subject to the trademark license, especially commercial redistribution.

START: FULL LICENSE

THE FULL PROJECT GUTENBERG LICENSE

PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK

To protect the Project Gutenberg™ mission of promoting the free distribution of electronic works, by using or distributing this work (or any other work associated in any way with the phrase “Project Gutenberg”), you agree to comply with all the terms of the Full Project Gutenberg™ License available with this file or online at www.gutenberg.org/license.

Section 1. General Terms of Use and Redistributing Project Gutenberg™ electronic works

1.A. By reading or using any part of this Project Gutenberg™ electronic work, you indicate that you have read, understand, agree to and accept all the terms of this license and intellectual property (trademark/copyright) agreement. If you do not agree to abide by all the terms of this agreement, you must cease using and return or destroy all copies of Project Gutenberg™ electronic works in your possession. If you paid a fee for obtaining a copy of or access to a Project Gutenberg™ electronic work and you do not agree to be bound by the terms of this agreement, you may obtain a refund from the person or entity to whom you paid the fee as set forth in paragraph 1.E.8.

1.B. “Project Gutenberg” is a registered trademark. It may only be used on or associated in any way with an electronic work by people who agree to be bound by the terms of this agreement. There are a few things that you can do with most Project Gutenberg™ electronic works even without complying with the full terms of this agreement. See paragraph 1.C below. There are a lot of things you can do with Project Gutenberg™ electronic works if you follow the terms of this agreement and help preserve free future access to Project Gutenberg™ electronic works. See paragraph 1.E below.

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.