Post on 29-Jan-2015
description
@paulsingh @betamore
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
@paulsingh @betamore
500 STARTUPSGETTING TO KNOW
BECAUSE WE’RE KIND OF A BIG DEAL
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com
@paulsingh @betamore
@paulsingh @betamore
EARLY STAGE STARTUPS
HAVE CHANGED
@paulsingh @betamore
STARTUP COSTS LOWER THAN EVER
BUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
@paulsingh @betamore
WEB GETS BIGGER.WORLD GETS SMALLER.
@paulsingh @betamore
TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
@paulsingh @betamore
CAPITAL INCREASINGLY COMMODITIZED
RISE OF THE ANGELS, YO!
@paulsingh @betamore
NEW REALITY: MONEY FOLLOWS
FOUNDERSRISE OF THE ENTREPRENEURS, YO!
@paulsingh @betamore
SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh @betamore
SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh @betamore
TRANSPARENCY ISSIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh @betamore
WALL STREET BEAT US TO IT
@paulsingh @betamore
@paulsingh @betamore
UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
“
@paulsingh @betamore
@paulsingh @betamore
TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.
“
@paulsingh @betamore
WALL STREET ISN’T ALONE
THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.
@paulsingh @betamore
WE CAN DO IT, TOOSURPRISE!
IT TURNS OUT,
@paulsingh @betamore
@paulsingh @betamore
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
@paulsingh @betamore
WE CAN DO IT, TOO.
@paulsingh @betamore
WE CAN DO IT, TOO.
@paulsingh @betamore
WE’RE DOING IT, TOO.
@paulsingh @betamore
@paulsingh @betamore
VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY.
“
-- NAVAL RAVIKANT (@naval)
@paulsingh @betamore
EARLY STAGE VCIS CHANGINGHAS CHANGED
@paulsingh @betamore
STATE OF THE ART IN EARLY STAGE INVESTING IS NOT
VERY SOPHISTICATED
@paulsingh @betamore
UNBUNDLING OF ADVICE, CONTROL
AND MONEY
@paulsingh @betamore
USED TO BE ABOUT CAPITAL, DEALFLOW
AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.
@paulsingh @betamore
(500) CHECKLISTProduct solves a problem for a specific target customer
Capital-efficient businesses - operational @ <$1M funding
Primarily internet-based distribution - search, social, mobile, local
Simple revenue models - transactions, subscriptions or affiliate
Functional prototype before investment (or previous success)
Small but measurable usage - some customers, early revenue
Small but cross-functional team - engineer, design/UX, marketing
@paulsingh @betamore
(NEW) FINANCINGS
@paulsingh @betamore
(NEW) FINANCINGS Standardized terms
@paulsingh @betamore
(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
@paulsingh @betamore
(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
@paulsingh @betamore
(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float
@paulsingh @betamore
(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float
No Board seats at the earliest stage
@paulsingh @betamore
(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float
No Board seats at the earliest stage
Herd mentality and oversubscriptions
@paulsingh @betamore
BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION.
“
-- MICHAEL LEWIS
@paulsingh @betamore
Demo Day Videos ⟹ livestream.com/500startups
Sample Pitch Decks ⟹ slideshare.net/500startups
Venture Capital 101 ⟹ venturehacks.com/archives
Investor Thoughts:
Brad Feld ⟹ feld.com
Fred Wilson ⟹ avc.com
Chris Dixon ⟹ cdixon.org
Mark Suster ⟹ bothsidesofthetable.com
@paulsingh @betamore
YOUR KEY TAKEAWAYS
@paulsingh @betamore
YOUR KEY TAKEAWAYS
Focus on Traction.
@paulsingh @betamore
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh @betamore
ALSO...
@paulsingh @betamore
ALSO... Think about distribution a lot
@paulsingh @betamore
ALSO... Think about distribution a lot
Focus on customer acquisition
@paulsingh @betamore
ALSO... Think about distribution a lot
Focus on customer acquisition
Get on AngelList
@paulsingh @betamore
ALSO... Think about distribution a lot
Focus on customer acquisition
Get on AngelList
Learn the basics of VC economics
@paulsingh @betamore
ALSO... Think about distribution a lot
Focus on customer acquisition
Get on AngelList
Learn the basics of VC economics
Raise 12-18 months of funding
@paulsingh @betamore
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com