alex osadzinski at new connect club -
DESCRIPTION
Alex Osadzinski at New Connect Club - www.ncclub.plTRANSCRIPT
![Page 1: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/1.jpg)
1
Alex Osadzinski+1 (650) 854-9500
Venture Capital(Almost) everything you wanted to know
but were afraid to ask
![Page 2: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/2.jpg)
2
Agenda
Who I amHow (California) venture capital worksWhat VCs look forWhat VCs bring to the tableWhy startups are funUS/Europe differences
![Page 3: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/3.jpg)
3
Me
6 venture funded startups$234B total outcomes
1 large company1 turnaroundCEO, COO, GM, VP Eng/Sales/Mktg7 years at Trinity
![Page 4: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/4.jpg)
4
Trinity Ventures
Founded 1986$1.3B under managementInvesting $300M Trinity IX fund11 investment professionalsEarly stage IT technology investing
….and…
![Page 5: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/5.jpg)
5
![Page 6: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/6.jpg)
Size
6
![Page 7: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/7.jpg)
7
How venture capital works
VentureFund
LimitedPartners
GeneralPartners
PortfolioCompanies
![Page 8: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/8.jpg)
8
Valley of deathValuation
Time
EnthusiasmOptimism
Reality
Results
![Page 9: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/9.jpg)
9
Outcome
VentureFund
LimitedPartners
GeneralPartners
PortfolioCompanies
![Page 10: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/10.jpg)
10
Measurements
IRR2x return in 1 year is 100%But only a 2x
Absolute return3-5x in 3-5 years5x in 4 years is 50% IRRNeed to have a thesis for the 10x
LPs want absolute return and IRR
![Page 11: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/11.jpg)
11
What VCs look for
Disruptive technologyDisruptive business modelsFast executionCapital efficient executionExplosive growthAwesome entrepreneurs and team builders
![Page 12: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/12.jpg)
12
What VCs look for in a company
TeamTechnologyTraction
![Page 13: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/13.jpg)
13
Compare
![Page 14: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/14.jpg)
Entrepreneurs – what I look for
Trust and respectTrack recordConfidence, skill, poiseCollaborative natureRealism (especially in financials)Desire to take on venture capitalWheelbarrow test
14
![Page 15: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/15.jpg)
15
Technology
Trade secret or patented IPSecret sauce – must be hard to replicateNot a one-trick ponyRoadmapLeverages the pastOften times evolutionary
![Page 16: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/16.jpg)
16
Traction
Big marketsAll markets seem to be $1B
Large addressable market – the real TAMBowling pin analogy is trueCrossing the chasm is true
![Page 17: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/17.jpg)
Deal flow
At Trinity3000 plans/referrals -> 500 1st meetings -> 50 actively “worked” -> 10 investments
Deals come fromVCsPortfolioPersonal/firm networksTrusted sources
17
![Page 18: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/18.jpg)
18
Bay Area stats
400,000 people in technology20,000 entrepreneurs
India, China, France, UK, …
6,000 business plans3,000 startups200 funded120 first-time CEOs
![Page 19: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/19.jpg)
19
After the investment
Active board participationFollow-on roundsTeam buildingM&AIPO
![Page 20: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/20.jpg)
What do I do all day?
Leave home 7:30am, get to office 7:42am!300-400 emails5-8 company meetings, 1 hour eachBoard workConferences, beauty contests, panelsLeave work 7pm, get home 7:12pm, or……dinner, usually with a candidate
20
![Page 21: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/21.jpg)
Where do I do all this?
21
![Page 22: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/22.jpg)
Silicon Valley vs London
Better weather Lower taxesEverything is (much) cheaper……..except insane house pricingVibrant tech business environmentVery focused, driven, intense, freneticSomewhat isolated from reality
22
![Page 23: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/23.jpg)
Europe vs US (VC) business
EuropeLarge fragmented marketSophisticationIntrospection and doubtDiffuse infrastructureCultural biasesGovernment regulationNo virtuous circle yet
USHuge marketNaiveteSupreme confidenceTight infrastructureCultural biasesGovernment regulationVirtuous circle
23
![Page 24: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/24.jpg)
Why startups are fun
SpeedFocusAgilitySizeGrowthPersonal responsibility
24
![Page 25: Alex Osadzinski at New Connect Club -](https://reader033.vdocument.in/reader033/viewer/2022061121/546f80cdaf795967408b4686/html5/thumbnails/25.jpg)
25
Venture capital is…
Simple in conceptComplex in executionGetting tougher all the timePlays a unique role in businessIs unique in Silicon Valley…..and…..Is the best job in the world