Download - Founding tech co talk
![Page 1: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/1.jpg)
Founding A Tech Startup
by Raj KapoorFounder & Managing Partner, cofounder.co
Venture Partner, Mayfield Fund
![Page 2: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/2.jpg)
Trending Topics : )
• Lessons from Snapfish
• What Investors Look For
• Silicon Valley or Not?
• cofounder.co
![Page 3: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/3.jpg)
The Snapfish StoryRole Models Are Critical – especially early on…
![Page 4: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/4.jpg)
The Snapfish StoryBuild Networks first…sometimes by chance…
0
5
10
15
20
1998 1999 2000 2001 2002
Cable ADSL Total Broadband
Household Internet Connections (M)
![Page 5: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/5.jpg)
The Snapfish Story
Know when to cut the cord…timing does matter
1999
![Page 6: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/6.jpg)
The Snapfish Story
Cofounders are recommended – fill the gaps
Product/Ops
BD/Schmoozing Tech w/ Business
Leadership/Product
![Page 7: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/7.jpg)
The Snapfish StoryEarly – Its 100% Funding, Product, and Recruiting
![Page 8: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/8.jpg)
The Snapfish StoryRaise Money (yes $36M) Whenever You Can….
![Page 9: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/9.jpg)
The Snapfish Solution: Free
Processing
The Snapfish StoryThe Harsh Reality of the Marketplace…
4/23/2000 4/30/2000 5/7/2000 5/14/2000 5/21/2000 5/28/20000
500
1000
1500
2000
2500
3000
3500
Projected Snapfish New Customers
New
Cu
sto
mer
s X
![Page 10: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/10.jpg)
The Snapfish StoryDealing With Failure….
0
50
100
150
200
250
300
11/1/1999 2/1/2000 5/1/2000 8/1/2000 11/1/2000
iVillage
The Street.Com
The Globe
Marketwatch
Priceline
Etoys
Drugstore
Egghead
Ashford
![Page 11: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/11.jpg)
The Snapfish StoryHunker Down, Pivot…and Hope to Catch A Wave
![Page 12: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/12.jpg)
The Snapfish StoryWhen Its Working…Step On It
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
2Q00
4Q00
2Q01
4Q01
2Q02
4Q02
2Q03
4Q03
2Q04
4Q04
![Page 13: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/13.jpg)
The Snapfish StoryAnother Tough But Fortunate Choice…
![Page 14: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/14.jpg)
The Snapfish StoryCapitalize on Luck and Timing…
![Page 15: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/15.jpg)
10 Takeaways from Snapfish1. Don’t Wait for Inspiration – Position So It Falls on Your Head
2. Data Changes and Its Never Enough – Invest In Your Gut
3. Passion is Infectious – You Gotta Really Have It
4. Be Crisp and Confident When Selling
5. Sell What They Want, Not What You Want
6. Hire People Better Than You
7. You’re Always Raising Money
8. Hypothesize, Get To Market Quick, Iterate Often
9. Plan, But Be Open to Change
10. Balance IS Possible (well, sometimes)
![Page 16: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/16.jpg)
What Investors Look For
![Page 17: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/17.jpg)
Waves of Disruption Create Opportunity
Search
UGC
Social Networking
Video
PortalsEcommerce
Mobile
![Page 18: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/18.jpg)
• Connected TVs– Similar to mobile disruption in 2007 with the iPhone
• Professionals Platforms– Individuals become the brands vs organizations
• Services Marketplaces
• E-Commerce as mainline commerce in BRIC
• New Relationship Graphs
• Education Disrupted
Other Big Trends
![Page 19: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/19.jpg)
Disruptive New Media• “Youthful” Founders• Product Driven• Network effects• Viral loops for customer
acquisition• Broad based adoption - 100M+
user scale• Momentum vs Black Swan
Vertical Destinations• Experienced Founders• Execution driven• Marketplace Model• Organic Traffic Advantage • Highly Monetizable Vertical
Two Types of Consumer Businesses
![Page 20: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/20.jpg)
B2B/Infrastructure Criteria• Experienced Internet-focused Team• Pain Killer vs Vitamin• Frictionless deployment
– SaaS, few lines of javascript, widgets, ad tags
• Grass Roots Sales Model– open source, social media, sell to employees– Avoid the CIO
• Provides immediate benefit or cost reduction• Leverages new features of internet
– Data targeting, social, video, RTB, mobile
• Future Platform opportunity vs. “Feature/Tool”• Recurring revenue business
![Page 21: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/21.jpg)
Looking for Great Founders• They know them or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly
• Deep understanding of business, metrics, and product
• Big vision AND solid execution
• Well connected to get talent, advice, etc
• Demonstrate they know what an A+ Player Looks Like
• Don’t need perfect CEO – but need to be “self aware”
![Page 22: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/22.jpg)
General Tips Pitching VCs• Know your Real TAM – Bottoms Up
– Is $100M revs realistic? – Is VC or Angel funding better?
• Proof Team is Product and Business Savvy• Is there a true competitive advantage vs execution?
– Show network effect or why model is disruptive vs incremental to incumbents
• Map out Serial Risk Reduction• Raise at least 18 months of capital if its early stage• Control The Process and Timing
– Create relationships with VCs well in advance of fundraise– Try to get everyone on same timetable
![Page 23: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/23.jpg)
Silicon Valley Or Not?
![Page 24: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/24.jpg)
The Good
46% of VC dollars in Q2 went to Silicon Valley
(Only 12% went to the second place – here)
![Page 25: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/25.jpg)
The Good
75% of ALL returns in venture are in Silicon Valley
![Page 26: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/26.jpg)
The GoodMindset vs Location
• Change the World vs make a buck
• Pay It Forward vs look out for yourself
• Massive information advantage
• People-driven transactions
• Talent has DNA to Go Big and Scale
• Competition to Push You Hardest
• Product Rules
![Page 27: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/27.jpg)
The Ugly
• Cost of Living
• Talent War
• Relationship-driven*
* unless you have amazing momentum
• Weather….NOT!
![Page 28: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/28.jpg)
The Bottom LineSilicon Valley if….
• You are thinking BIG
• You Like Swimming with SHARKS
• Product/Service Excellence matters
• You Have the Relationships – or – momentum
• You like good weather and wine : )
![Page 29: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/29.jpg)
What’s cofounder.co?
![Page 30: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/30.jpg)
What’s Missing?• Entrepreneurs Looking for help – not just money
• Accelerators, incubators, angels, mentors advisors, VCs
• Time is more precious than capital for the best
• Where do they get time, experience, and deep help?
• 100+ key decisions every year!
Time is Right for a New Model…..
![Page 31: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/31.jpg)
The Solution• Standardize part-time cofounder role
• time and experience for the critical decisions
• Day A Week cadence – 4-5 co’s max• Experienced founder/CEO/investors only• Deep relationships
• capital, talent, partnerships & exits
• Alignment as cofounder vs investor• Minority vesting equity - skin in the game• Join at point of cofounder decision
![Page 32: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/32.jpg)
Long Term Vision
• Build Network of top notch operators/investors
• Some full time, some part-time
• Pool equity to give fund economics
• Take it Global
Angel.co for money - for a partner
![Page 33: Founding tech co talk](https://reader035.vdocument.in/reader035/viewer/2022062613/540ae4688d7f729b0c8b478a/html5/thumbnails/33.jpg)
Founders I’m Looking For• Awesome in all ways except experience/network
• Evidence of Excellence in your life
• Ambition to create a massive disruptive company
• Strong Desire to be CEO but self-aware
• Product obsessed builders fit best
• Passion for a sector, not wed to a solution
• Started anywhere but move to build co in SV
• Open to spending quality time together first