evolution of the private market
Post on 17-Oct-2014
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@paulsingh #VAangelsEPIC
PAUL SINGH
@paulsingh・paul@dashboard.io・dashboard.io
THE EVOLUTION OF THE PRIVATE MARKET
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
@paulsingh #VAangelsEPIC
@paulsingh・paul@dashboard.io・dashboard.io
500 STARTUPS
@paulsingh #VAangelsEPIC
@paulsingh #startupchile
A (R)EVOLUTION IN THINKING
@paulsingh #VAangelsEPIC
EARLY STAGE STARTUPS
HAVE CHANGED
@paulsingh #VAangelsEPIC
STARTUP COSTS LOWER THAN EVER
BUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
@paulsingh #VAangelsEPIC
WEB GETS BIGGER.WORLD GETS SMALLER.
@paulsingh #VAangelsEPIC
TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
@paulsingh #VAangelsEPIC
CAPITAL INCREASINGLY COMMODITIZED
RISE OF THE ANGELS, YO!
@paulsingh #VAangelsEPIC
NEW REALITY: MONEY FOLLOWS
FOUNDERSRISE OF THE ENTREPRENEURS, YO!
@paulsingh #VAangelsEPIC
SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #VAangelsEPIC
SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #VAangelsEPIC
TRANSPARENCY ISSIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #VAangelsEPIC
WALL STREET BEAT US TO IT
@paulsingh #VAangelsEPIC
@paulsingh #VAangelsEPIC
UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
“
@paulsingh #VAangelsEPIC
@paulsingh #VAangelsEPIC
TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.
“
@paulsingh #VAangelsEPIC
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 #VAangelsEPIC
WE CAN DO IT, TOOSURPRISE!
IT TURNS OUT,
@paulsingh #VAangelsEPIC
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
@paulsingh #VAangelsEPIC
WE CAN DO IT, TOO.
@paulsingh #VAangelsEPIC
WE CAN DO IT, TOO.
@paulsingh #VAangelsEPIC
WE’RE DOING IT, TOO.
@paulsingh #VAangelsEPIC
@paulsingh #VAangelsEPIC
VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY.
“
-- NAVAL RAVIKANT (@naval)
@paulsingh #VAangelsEPIC
data.dashboard.io
@paulsingh #VAangelsEPIC
data.dashboard.io
@paulsingh #VAangelsEPIC
EARLY STAGE VCIS CHANGINGHAS CHANGED
@paulsingh #VAangelsEPIC
STATE OF THE ART IN EARLY STAGE INVESTING IS NOT
VERY SOPHISTICATED
@paulsingh #VAangelsEPIC
UNBUNDLING OF ADVICE, CONTROL
AND MONEY
@paulsingh #VAangelsEPIC
USED TO BE ABOUT CAPITAL, DEALFLOW
AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.
@paulsingh #VAangelsEPIC
@paulsingh #VAangelsEPIC
data.dashboard.io
@paulsingh #VAangelsEPIC
(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 #VAangelsEPIC
(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 #VAangelsEPIC
BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION.
“
-- MICHAEL LEWIS
@paulsingh #VAangelsEPIC
THE PRIVATE MARKET IS BECOMING MORE
ACCESSIBLE.
@paulsingh #VAangelsEPIC
THE PRIVATE MARKET IS BECOMING MORE TRANSPARENT.
@paulsingh #VAangelsEPIC
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 #VAangelsEPIC
data.dashboard.io
@paulsingh #VAangelsEPIC
THE PRIVATE MARKET IS BECOMING MORE EFFICIENT.
@paulsingh #VAangelsEPIC
THE PRIVATE MARKET IS BECOMING MORE EFFICIENT.
AND, SOON, MORE LIQUID.
@paulsingh #VAangelsEPIC
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh #VAangelsEPIC
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: data.dashboard.io
@paulsingh #VAangelsEPIC
@paulsingh・paul@dashboard.io・dashboard.io
THE EVOLUTION OF THE PRIVATE MARKET
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
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