Slides for my talk at the Grand Ballroom in Orlando, FL.

1. @paulsingh #
THE BUSINESS OF
(TECH) STARTUPS
!
THE (GROWING) INTERSECTION OF VENTURE
CAPITAL, HIGH-GROWTH TECH COMPANIES AND
ECONOMIC DEVELOPMENT

2. @paulsingh #
500 STARTUPS

3. @paulsingh #
A (R)EVOLUTION IN THINKING

4. @paulsingh #iSummit2014
EARLY STAGE
STARTUPS
HAVE CHANGED

5. @paulsingh #iSummit2014
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
STARTUP COSTS
LOWER THAN EVER BUT SCALING STILL COSTS MONEY

6. @paulsingh #iSummit2014
WEB GETS BIGGER.
WORLD GETS SMALLER.

7. @paulsingh #iSummit2014
TRACTION IS THE NEW
INTELLECTUAL PROPERTY PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

8. @paulsingh #iSummit2014
CAPITAL
INCREASINGLY
COMMODITIZED
RISE OF THE ANGELS, YO!

9. @paulsingh #iSummit2014
NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!

10. @paulsingh #
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

11. @paulsingh #
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

12. @paulsingh #
TRANSPARENCY IS
SIGNALS ARE
EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

13. @paulsingh #
WALL STREET
BEAT US TO IT

14. @paulsingh #

15. @paulsingh #
UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE
POINTS TO AN
INTERESTING CADENCE
INTRA-QUARTER AND
POTENTIAL UPSIDE TO
OUR VIEW.
“

16. @paulsingh #

17. @paulsingh #
“
TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHING’S TANK
FARMS ON AN
INDUSTRY SPYING
MISSION

18. @paulsingh #
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.

19. @paulsingh #
IT TURNS OUT,
WE CAN DO IT, TOO SURPRISE!

20. @paulsingh #
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.

21. @paulsingh #
WE CAN DO IT, TOO.

22. @paulsingh #
WE CAN DO IT, TOO.

23. @paulsingh #
WE’RE DOING IT, TOO.

24. @paulsingh #

25. @paulsingh #
VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.
“
-- NAVAL RAVIKANT (@naval)

26. @paulsingh #
Hubble
more details: hubble.disruption.vc

27. @paulsingh #
EARLY STAGE VC
IS CHANGING
HAS CHANGED

28. @paulsingh #
STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED

29. @paulsingh #
UNBUNDLING OF
ADVICE, CONTROL
AND MONEY

30. @paulsingh #
USED TO BE ABOUT
CAPITAL, DEALFLOW
AND JUDGEMENT
TODAY, IT’S ABOUT ACCESS.

31. @paulsingh #

32. @paulsingh #
INCREASINGLY ABOUT
DEAL SELECTION,
NOT DEAL SOURCING.
IT’S 2014, YO.

33. @paulsingh #
Hubble
more details: hubble.disruption.vc

34. @paulsingh #
(500) CHECKLIST
Product 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

35. @paulsingh #
(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

36. @paulsingh #
THE FIRST CHECK SHOULD
BE SMALL AND FAST
DOUBLE DOWN HEAVY IF THE COMPANY SURVIVES INTO THE NEXT ROUND

37. @paulsingh #iSummit2014
RISK AND
UNCERTAINTY ARE
NOT THE SAME

38. @paulsingh #
THE BUSINESS OF INVESTING
IS ABOUT CHOOSING THE
LEAST-WORST OPPORTUNITY
NOT TRYING TO PREDICT THE NEXT GOOGLE, FACEBOOK OR LINKEDIN.

39. @paulsingh #
ECONOMIC
DEVELOPMENT
HAS CHANGED

40. @paulsingh #
THE AGE OF THE
INDUSTRIAL CITY
IS OVER

41. @paulsingh #
NOW POSSIBLE TO BUILD
BILLION DOLLAR
COMPANIES IN T-SHIRTS
FROM A COUCH

42. @paulsingh #
FROM ANYWHERE*

43. @paulsingh #
MORE THAN TRADITIONAL INDUSTRIES,
KNOWLEDGE ECONOMY HAS AN INHERENT
TENDENCY TOWARDS GEOGRAPHIC
AGGLOMERATION
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

44. @paulsingh #
NEAR PERFECT
CORRELATION BETWEEN
URBANIZATION AND
PROSPERITY

45. @paulsingh #
NEAR PERFECT CORRELATION
BETWEEN PRESENCE OF SMALL
FIRMS AND THE LATER
GROWTH OF A REGION*

46. @paulsingh #
TECH COMPANIES WILL
NEVER CREATE THE
MAJORITY OF JOBS

47. @paulsingh #
TECH COMPANIES HAVE A
DISPROPORTIONATELY
POSITIVE EFFECT ON THE
ECONOMY

48. @paulsingh #
WHAT HAPPENS IN THE TECH
SECTOR DETERMINES THE
SALARY OF MOST PEOPLE,
WHETHER THEY WORK IN
TECH OR NOT

49. @paulsingh #
“
ALTHOUGH JOBS IN LOCAL SERVICES
CONSTITUTE THE VAST MAJORITY OF JOBS,
THEY ARE THE
ECONOMIC GROWTH.
-- ENRICO MORETTI

50. @paulsingh #
PROXIMITY IS
VALUABLE

51. @paulsingh #
MODERN ECONOMIC DEV
!
PEOPLE > STRUCTURES

52. @paulsingh #
INVESTORS:
INVEST OUTSIDE YOUR
REGION, BRING THE BEST
FOUNDERS TO YOUR CITY

53. @paulsingh #
HUGE OPPORTUNITY
AT THE POST-SEED,
PRE-A LEVEL

54. @paulsingh #iSummit2014
INVESTORS:
INVEST OUTSIDE YOUR
REGION, BRING THE BEST
FOUNDERS TO YOUR CITY

55. @paulsingh #

56. @paulsingh #

57. @paulsingh #

58. @paulsingh #

59. @paulsingh #
BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
INFORMATION.
“
-- MICHAEL LEWIS

60. @paulsingh #
THE PRIVATE MARKET IS
BECOMING MORE
ACCESSIBLE.

61. @paulsingh #
THE PRIVATE MARKET IS
BECOMING MORE
TRANSPARENT.

62. @paulsingh #
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

63. @paulsingh #
THE PRIVATE MARKET IS
BECOMING MORE
EFFICIENT.

64. @paulsingh #
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.

65. @paulsingh # 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: disruption.vc

66. @paulsingh #
TECHNOLOGY IS THE
FUNDAMENTAL DRIVER OF
GROWTH IN THE
INDUSTRIALIZED WORLD

67. @paulsingh #
THE BUSINESS OF
(TECH) STARTUPS
THE (GROWING) INTERSECTION OF VENTURE
CAPITAL, HIGH-GROWTH TECH COMPANIES AND
ECONOMIC DEVELOPMENT
LEARN MORE: disruption.vc