the business of (tech) startups - vsw2015 - sep 2015

@paulsingh #VSW2015

THE BUSINESS OF (TECH) STARTUPS

THE (GROWING) INTERSECTION OF TECH, VENTURE CAPITAL AND CITIES.

@paulsingh #VSW2015

500 STARTUPS

@paulsingh #VSW2015

WHY?

1. Technology is the fundamental driver of growth in the industrialized world.

2. Private market investing is (one of) the few remaining ways for the average person to create significant wealth.

@paulsingh #VSW2015

BUY WINSMY PRIMARY GOAL IS TO

NOT NECESSARILY BUYING INTO THE HOTTEST DEALS.

@paulsingh #VSW2015

OPPORTUNITIES HAVE NEVER BEEN GREATER

@paulsingh #VSW2015

@paulsingh #VSW2015

MOBILE IS EATING THE WORLD

@paulsingh #VSW2015

INNOVATION WILL COME FROM VENTURE CAPITAL

@paulsingh #VSW2015

API TO VENTURE CAPITAL & FUNCTIONAL EXPERTISE

THE BIG OPPORTUNITY IN EARLY STAGE TECH INVESTING:

(FOR FOUNDERS. FOR INVESTORS. FOR GOVERNMENT.)

@paulsingh #VSW2015

A (R)EVOLUTION IN THINKING

@paulsingh #VSW2015 @paulsingh #VSW2015

EARLY STAGE STARTUPS

HAVE CHANGED


STARTUP COSTS LOWER THAN EVER

BUT SCALING STILL COSTS MONEY

CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING

@paulsingh #VSW2015

Sep

tem

ber 1

2, 2

014

@paulsingh #VSW2015

BURN RATES ARE INCREASING AT LATER STAGES


WEB GETS BIGGER. WORLD GETS SMALLER.


TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.

NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

@paulsingh #VSW2015


CAPITAL INCREASINGLY COMMODITIZED

RISE OF THE ANGELS, YO!


NEW REALITY: MONEY FOLLOWS

FOUNDERSRISE OF THE ENTREPRENEURS, YO!

@paulsingh #VSW2015

THE LANDSCAPE IS CHANGING

@paulsingh #VSW2015

“TRADITIONAL” VC IS CHANGING

@paulsingh #VSW2015

PROLIFERATION OF <$50M FUNDS

@paulsingh #VSW2015

POST-SEED FINANCING PUSHES OUT LATER ROUNDS

@paulsingh #VSW2015

SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

@paulsingh #VSW2015

TRANSPARENCY IS SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

@paulsingh #VSW2015

WALL STREET BEAT US TO IT

@paulsingh #VSW2015

@paulsingh #VSW2015

UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.

“

@paulsingh #VSW2015

@paulsingh #VSW2015

TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.

“

@paulsingh #VSW2015

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 #VSW2015

WE CAN DO IT, TOOSURPRISE!

IT TURNS OUT,

@paulsingh #VSW2015

+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.

@paulsingh #VSW2015

WE CAN DO IT, TOO.

@paulsingh #VSW2015

WE’RE DOING IT, TOO.

@paulsingh #VSW2015

@paulsingh #VSW2015

VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY.

“

-- NAVAL RAVIKANT (@naval)

@paulsingh #VSW2015

EARLY STAGE VC IS CHANGING HAS CHANGED

@paulsingh #VSW2015

STATE OF THE ART IN EARLY STAGE INVESTING IS NOT

VERY SOPHISTICATED

@paulsingh #VSW2015

UNBUNDLING OF ADVICE, CONTROL

AND MONEY

@paulsingh #VSW2015

USED TO BE ABOUT CAPITAL, DEALFLOW

AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.

@paulsingh #VSW2015

THE BUSINESS OF INVESTING IS ABOUT CHOOSING THE

LEAST-WORST OPPORTUNITYNOT TRYING TO PREDICT THE NEXT GOOGLE, FACEBOOK OR LINKEDIN.

@paulsingh #VSW2015

ECONOMIC DEVELOPMENT HAS CHANGED

@paulsingh #VSW2015

THE AGE OF THE INDUSTRIAL CITY

IS OVER

@paulsingh #VSW2015

NOW POSSIBLE TO BUILD BILLION DOLLAR

COMPANIES IN T-SHIRTS FROM A COUCH

@paulsingh #VSW2015

FROM ANYWHERE*

@paulsingh #VSW2015

MORE THAN TRADITIONAL INDUSTRIES, THE KNOWLEDGE ECONOMY HAS AN INHERENT TENDENCY TOWARDS GEOGRAPHIC AGGLOMERATION. IN THIS CONTEXT, INITIAL ADVANTAGES 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 #VSW2015

NEAR PERFECT CORRELATION BETWEEN

URBANIZATION AND PROSPERITY

@paulsingh #VSW2015

NEAR PERFECT CORRELATION BETWEEN PRESENCE OF SMALL

FIRMS AND THE LATER GROWTH OF A REGION*

@paulsingh #VSW2015

TECH COMPANIES WILL NEVER CREATE THE MAJORITY OF JOBS

@paulsingh #VSW2015

TECH COMPANIES HAVE A DISPROPORTIONATELY

POSITIVE EFFECT ON THE ECONOMY

@paulsingh #VSW2015

WHAT HAPPENS IN THE TECH SECTOR DETERMINES THE SALARY OF MOST PEOPLE, WHETHER THEY WORK IN

TECH OR NOT

@paulsingh #VSW2015

ALTHOUGH JOBS IN LOCAL SERVICES CONSTITUTE THE VAST MAJORITY OF JOBS, THEY ARE THE EFFECT, NOT THE CAUSE, OF ECONOMIC GROWTH.

“-- ENRICO MORETTI

@paulsingh #VSW2015

PROXIMITY IS VALUABLE

@paulsingh #VSW2015

MODERN ECONOMIC DEV

PEOPLE > STRUCTURES

@paulsingh #VSW2015

INVESTORS: INVEST OUTSIDE YOUR

REGION, BRING THE BEST FOUNDERS TO YOUR CITY

@paulsingh #VSW2015

HUGE OPPORTUNITY AT THE POST-SEED,

PRE-A LEVEL

@paulsingh #VSW2015

@paulsingh #VSW2015

BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION.

“

-- MICHAEL LEWIS

@paulsingh #VSW2015

THE PRIVATE MARKET IS BECOMING MORE

ACCESSIBLE.

@paulsingh #VSW2015

THE PRIVATE MARKET IS BECOMING MORE TRANSPARENT.

@paulsingh #VSW2015

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 #VSW2015

THE PRIVATE MARKET IS BECOMING MORE

EFFICIENT.

@paulsingh #VSW2015

YOUR KEY TAKEAWAYS

Focus on Traction.

Learn to Communicate and Inspire.

@paulsingh #VSW2015

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: resultsjunkies.com

http://resultsjunkies.com

@paulsingh #VSW2015

TECHNOLOGY IS THE FUNDAMENTAL DRIVER OF

GROWTH IN THE INDUSTRIALIZED WORLD

@paulsingh #VSW2015

LEARN MORE: resultsjunkies.com

THE BUSINESS OF (TECH) STARTUPS

THE (GROWING) INTERSECTION OF TECH, VENTURE CAPITAL AND CITIES.

http://resultsjunkies.com

the business of (tech) startups - vsw2015 - sep 2015

Small Business & Entrepreneurship