@paulsingh #
THE BUSINESS OF (TECH) STARTUPSTHE (GROWING) INTERSECTION OF VC,
HIGH-GROWTH TECH COMPANIES & CITIES
@paulsingh #
500 STARTUPS
@paulsingh #
A (R)EVOLUTION IN THINKING
@paulsingh #@paulsingh #TiETuesday
EARLY STAGE STARTUPS
HAVE CHANGED
@paulsingh #@paulsingh #TiETuesday
STARTUP COSTS LOWER THAN EVER
BUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
@paulsingh #@paulsingh #TiETuesday
WEB GETS BIGGER. WORLD GETS SMALLER.
@paulsingh #@paulsingh #TiETuesday
TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
@paulsingh #@paulsingh #TiETuesday
CAPITAL INCREASINGLY COMMODITIZED
RISE OF THE ANGELS, YO!
@paulsingh #@paulsingh #TiETuesday
NEW REALITY: MONEY FOLLOWS
FOUNDERSRISE OF THE ENTREPRENEURS, YO!
@paulsingh #
SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #
SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #
TRANSPARENCY IS SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #
WALL STREET BEAT US TO IT
@paulsingh #
@paulsingh #
UBS PROPRIETARY SATELLITE PARKING LOTFILL RATE POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
“
@paulsingh #
@paulsingh #
TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN INDUSTRY SPYING MISSION
“
@paulsingh #
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 #
WE CAN DO IT, TOOSURPRISE!
IT TURNS OUT,
@paulsingh #
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
@paulsingh #
WE CAN DO IT, TOO.
@paulsingh #
WE CAN DO IT, TOO.
@paulsingh #
WE’RE DOING IT, TOO.
@paulsingh #
@paulsingh #
VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY.
“
-- NAVAL RAVIKANT (@naval)
@paulsingh #
Hubble
more details: hubble.disruption.vc
@paulsingh #
EARLY STAGE VC IS CHANGING HAS CHANGED
@paulsingh #
STATE OF THE ART IN EARLY STAGE INVESTING IS NOT
VERY SOPHISTICATED
@paulsingh #
UNBUNDLING OF ADVICE, CONTROL
AND MONEY
@paulsingh #
USED TO BE ABOUT CAPITAL, DEALFLOW
AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.
@paulsingh #
@paulsingh #
INCREASINGLY ABOUT DEAL SELECTION,
NOT DEAL SOURCING.IT’S 2014, YO.
@paulsingh #
Hubble
more details: hubble.disruption.vc
@paulsingh #
(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 #
(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 #
THE FIRST CHECK SHOULD BE SMALL AND FAST
DOUBLE DOWN HEAVY IF THE COMPANY SURVIVES INTO THE NEXT ROUND
@paulsingh #@paulsingh #TiETuesday
RISK AND UNCERTAINTY ARE
NOT THE SAME
@paulsingh #
THE BUSINESS OF INVESTING IS ABOUT CHOOSING THE
LEAST-WORST OPPORTUNITYNOT TRYING TO PREDICT THE NEXT GOOGLE, FACEBOOK OR LINKEDIN.
@paulsingh #
ECONOMIC DEVELOPMENT HAS CHANGED
@paulsingh #
THE AGE OF THE INDUSTRIAL CITY
IS OVER
@paulsingh #
NOW POSSIBLE TO BUILD BILLION DOLLAR
COMPANIES IN T-SHIRTS FROM A COUCH
@paulsingh #
FROM ANYWHERE*
@paulsingh #
MORE THAN TRADITIONAL INDUSTRIES, KNOWLEDGE ECONOMY HAS AN INHERENT TENDENCY TOWARDS GEOGRAPHIC AGGLOMERATIONADVANTAGES MATTER, AND THE FUTURE DEPENDS HEAVILY ON THE PAST.
THE SUCCESS OF A CITY FOSTERS MORE SUCCESS, AS COMMUNITIES THAT CAN ATTRACT SKILLED WORKERS AND GOOD JOBS TEND TO ATTRACT EVEN MORE.
“
-- ENRICO MORETTI
@paulsingh #
NEAR PERFECT CORRELATION BETWEEN
URBANIZATION AND PROSPERITY
@paulsingh #
NEAR PERFECT CORRELATION BETWEEN PRESENCE OF SMALL
FIRMS AND THE LATER GROWTH OF A REGION*
@paulsingh #
TECH COMPANIES WILL NEVER CREATE THE MAJORITY OF JOBS
@paulsingh #
TECH COMPANIES HAVE A DISPROPORTIONATELY
POSITIVE EFFECT ON THE ECONOMY
@paulsingh #
WHAT HAPPENS IN THE TECH SECTOR DETERMINES THE SALARY OF MOST PEOPLE, WHETHER THEY WORK IN
TECH OR NOT
@paulsingh #
ALTHOUGH JOBS IN LOCAL SERVICES CONSTITUTE THE VAST MAJORITY OF JOBS, THEY ARE THE ECONOMIC GROWTH.
“-- ENRICO MORETTI
@paulsingh #
PROXIMITY IS VALUABLE
@paulsingh #
MODERN ECONOMIC DEV
PEOPLE > STRUCTURES
@paulsingh #
INVESTORS: INVEST OUTSIDE YOUR
REGION, BRING THE BEST FOUNDERS TO YOUR CITY
@paulsingh #
HUGE OPPORTUNITY AT THE POST-SEED,
PRE-A LEVEL
@paulsingh #@paulsingh #TiETuesday
INVESTORS: INVEST OUTSIDE YOUR
REGION, BRING THE BEST FOUNDERS TO YOUR CITY
@paulsingh #
@paulsingh #
@paulsingh #
@paulsingh #
@paulsingh #
BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION.
“
-- MICHAEL LEWIS
@paulsingh #
THE PRIVATE MARKET IS BECOMING MORE
ACCESSIBLE.
@paulsingh #
THE PRIVATE MARKET IS BECOMING MORE TRANSPARENT.
@paulsingh #
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
angel.co/valuations and angel.co/salaries
@paulsingh #
THE PRIVATE MARKET IS BECOMING MORE
EFFICIENT.
@paulsingh #
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh #
ALSO... Distribution > Product
Tactics > Strategy
Notability > Credibility
Get on AngelList
Raise 12-18+ months of funding
Learn the basics of VC economics
Don’t confuse due diligence with progress & probability...
Shameless plug: hubble.disruption.vc
@paulsingh #
TECHNOLOGY IS THE FUNDAMENTAL DRIVER OF
GROWTH IN THE INDUSTRIALIZED WORLD
@paulsingh #
LEARN MORE: disruption.vc
THE BUSINESS OF (TECH) STARTUPSTHE (GROWING) INTERSECTION OF VC,
HIGH-GROWTH TECH COMPANIES & CITIES