scaling venture capital - amazon web services › amsterdamsummit2015 › star… · technology...
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Scaling Venture Capital How we work with VC’s and startups
@MikeReiner
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A bit personal: Story about scaling A little history: Cloud and VC’s How we work with VC’s and Startups
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A story about scaling Can you scale a country?
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Virtual Citizen?
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A story about the cloud and VC’s Why do investors care?
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“Amazon changed the VC industry. This is mind boggling. That online book company. Not … or anybody else. Amazon. 100% of the credit.”
Mark Suster, serial entrepreneur and MD at GRP Partners
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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
1995 – .com Technology Startups require physical hardware and
proprietary software to build their business
Typical Series A
Spent on…
Innovation
5-10M • $2.5: marketing, sales, etc.
• $2.5M on infrastructure
• Not a lot, since experimentation was costly
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Typical Series A
Spent on…
Innovation
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2000: Rise of Open Source Open source software drove technology costs down by 90%,
which spurred innovation in technology
3-5M • Less on Software– LAMP
• More on development
• Still on infrastructure
• A lot more, as experimentation is less costly now
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Typical Series A
Spent on…
Innovation
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2006: Enter the Cloud Pioneered by Amazon Web Services - drove total
operating costs down significantly
500K-3M
• Staff – the battle for talent
• Customer Acquisition
• Explosion in experimentation, innovation, and Startups
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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
2007: Micro VC / Seed Cloud led to explosion in the number of Startups and the
emerging of “micro VCs”
Angels
Incubators
VC’s
Angels unite in ‘Super Angels’ for Seed investments thru VC-like setup
Boom in incubator programs, with
micro investments, mentoring, etc.
Venture funds that back early-stage
startups with <$1M
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…rapid pace of innovation
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Why do VC’s care? More deals
Shorter time to scale
Faster time to revenue
Lower ‘burn rate’
Higher valuation at exit
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Portfolio Package
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How we work with VC’s and startups How can we help?
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How can our BD team help VC’s 1 - Scale and reduce costs 2 - Deal flow and due diligence 3 - Exits and portfolio review
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How can our BD team help startups 1 – Connections to top VC’s EMEA 2 – Get connected within Amazon 3 – Feedback on fundraising and architecture
Not biased: “We win when you win – and only when you win”
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Understanding the VC – 3 tips 1 – Approach before you need money 2 – Fundraising takes time 3 – Manage expectations
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I saw the angel in the stone and carved until I set him free. Michelangelo
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Thank You Reach out and let us help @MikeReiner [email protected]