the rise of the angels (and the entrepreneurs) - bangalore - dec 2012
DESCRIPTION
Slides from my talk at Unplugged 2012.TRANSCRIPT
@paulsingh #unpluggd
PAUL SINGH
@paulsingh・[email protected]・resultsjunkies.com
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
@paulsingh #unpluggd
500 STARTUPSGETTING TO KNOW
BECAUSE WE’RE KIND OF A BIG DEAL
PAUL SINGH
@paulsingh・[email protected]・resultsjunkies.com
@paulsingh #unpluggd
@paulsingh #unpluggd
EARLY STAGE STARTUPS
HAVE CHANGED
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STARTUP COSTS LOWER THAN EVER
BUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
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WEB GETS BIGGER.WORLD GETS SMALLER.
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TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
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CAPITAL INCREASINGLY COMMODITIZED
RISE OF THE ANGELS, YO!
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NEW REALITY: MONEY FOLLOWS
FOUNDERSRISE OF THE ENTREPRENEURS, YO!
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SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
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SIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
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TRANSPARENCY ISSIGNALS ARE EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
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WALL STREET BEAT US TO IT
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UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
“
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TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.
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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.
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WE CAN DO IT, TOOSURPRISE!
IT TURNS OUT,
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+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
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WE CAN DO IT, TOO.
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WE CAN DO IT, TOO.
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WE’RE DOING IT, TOO.
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VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY.
“
-- NAVAL RAVIKANT (@naval)
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EARLY STAGE VCIS CHANGINGHAS CHANGED
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STATE OF THE ART IN EARLY STAGE INVESTING IS NOT
VERY SOPHISTICATED
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UNBUNDLING OF ADVICE, CONTROL
AND MONEY
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USED TO BE ABOUT CAPITAL, JUDGEMENT
AND DEALFLOWTODAY, IT’S ABOUT ACCESS.
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(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
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(NEW) FINANCINGS
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(NEW) FINANCINGS Standardized terms
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(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
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(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
@paulsingh #unpluggd
(NEW) FINANCINGS Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float
@paulsingh #unpluggd
(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
@paulsingh #unpluggd
(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
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BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION.
“
-- MICHAEL LEWIS
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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
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YOUR KEY TAKEAWAYS
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YOUR KEY TAKEAWAYS
Focus on Traction.
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YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh #unpluggd
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh・[email protected]・resultsjunkies.com