The Reset ButtonThe Reset Button

The State of Funding Innovation The State of Funding Innovation

in Q4, 2008in Q4, 2008

The State of Funding Innovation The State of Funding Innovation

in Q4, 2008in Q4, 2008

Let’s look on the bright side…Let’s look on the bright side…Let’s look on the bright side…Let’s look on the bright side…

Now, for the bad news…Now, for the bad news…Now, for the bad news…Now, for the bad news…

IT’S NYSE HERE!

worrying about mortgage payments

vactioning in war torn public

markets

spending their last dollar to hit

a home run

The model’s not working…The model’s not working…The model’s not working…The model’s not working…

FundraisingFundraising

ExitsExits

SOURCE: NVCA / Thompson Reuters Exit PollSOURCE: NVCA / Thompson Reuters VC Fundraising Q3

So, let’s export it to China…So, let’s export it to China…So, let’s export it to China…So, let’s export it to China…

IsraelIsrael

CanadaCanada

ChinaChina

EuropeEurope

IndiaIndia

SOURCE: EE Times Asia Survey 12/07

Still, nobody’s making real money…Still, nobody’s making real money…Still, nobody’s making real money…Still, nobody’s making real money…

< $50 MM $50 - $500 MM > $500 MM

FAILURE ACCEPTABLE SUCCESS

1 / 100 1 / 1,000 1 / 10,000

MANAGEMENT Bonus ~10% Value ~15% Value

INVESTORS 1x w/ lost time 3-10x >10x

EMPLOYEES Nothing Bonuses Millionaires

SUPPORT Lawyers $$$Lawyers + Bankers

Everyone

< $50 MM$50-500 MM

> $500 MMEXIT VALUES

But, society is reaping rewards…But, society is reaping rewards…But, society is reaping rewards…But, society is reaping rewards…

venture philanthropy?venture philanthropy?

The point is…The point is…The point is…The point is…

It’s about building companies…It’s about building companies…It’s about building companies…It’s about building companies…

The Present Way The Right Way

Goal Sell for $1 Billion Build a Great Company

Selection Crazy Projections Crazy Ideas

Funding Arbitrary Ownership % Needs and Progress

Support Fundraising Business Development

Some tips for VCs…Some tips for VCs…Some tips for VCs…Some tips for VCs…

• Back the unusual

• Believe in the impossible

• Stop being lazy!– help your portfolio

without conditions– back management,

don’t replace them

• Back the unusual

• Believe in the impossible

• Stop being lazy!– help your portfolio

without conditions– back management,

don’t replace them

Some tips for entrepreneurs…Some tips for entrepreneurs…Some tips for entrepreneurs…Some tips for entrepreneurs…

• Cooperate

• Conserve

• Dominate

• and, if in Israel, picthfirms outsid IsraelFIRST!

• Cooperate

• Conserve

• Dominate

• and, if in Israel, picthfirms outsid IsraelFIRST!

So, in conclusion…So, in conclusion…So, in conclusion…So, in conclusion…

IT’S NYSE HERE!