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Startup tips by world-leading superchip designer, ARM Holdings
ARM Holdings grew from a modest team spun out of Acorn Computers to a world-leading superchip designer whose microprocessors have become the architecture for the digital world. With a fraction of the staff, turnover and marketing budget, ARM has – from a Cambridge base – shipped more chips than Intel and is in a vast range of market-leading consumer products.

Q: What was the biggest challenge you faced in starting your first major venture?

Co-founder and president Tudor Brown says: “The biggest challenge, undoubtedly, was seeing ourselves as more than just a bunch of engineers. So we had some great technology. We knew that and were used to that. But commercial success had eluded us in Acorn. So the challenge was to believe that we could find a way to make anyone buy into this technology. That is where Robin Saxby came in and helped/mentored/challenged us to go global and believe we could do the impossible.”

Q: Do you think difficulty in engaging with funders was due to their lack of understanding or your inability to explain ...
... the proposition?

Tudor Brown says: “This is harder to answer because ARM never had to raise money so we don't know. However, when we came to discuss with bankers pre-IPO we certainly struggled to explain the business model. In most part this was because the business model was so different from norm rather than them not being technical enough. Certainly I have seen many companies where they are simply unable to explain their proposition clearly enough without getting bogged down in trivia.”

Q: What would you advise any startups - not just technology but any industry sector - to treat as priorities to get their companies off the ground?

ARM CEO Warren East says: “Stop thinking about ‘funding’ from the financial community, and concentrate on ‘revenue’ from customers.”

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