slides for my "Venture Capital 2.0" opening talk at Stanford School Continuing Studies, VC101 class "Venture Capital Unlocked" #VCunlocked #500startups
This document discusses the potential value that venture capital firms (VCs) can provide to entrepreneurs beyond just funding. It argues that while VCs are primarily financial investors, the best ones can significantly help startups through advice, connections, experience and other support. However, the level and type of support varies greatly between VCs and depends on factors like the individual VC's skills and the firm's resources and approach. The document also notes some potential misalignments between VCs and entrepreneurs.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
This document discusses Dave McClure's investment thesis and experience in venture capital. It provides an overview of 500 Startups, including its history, strategy of making many small investments, and how it invests through its accelerator program and seed/follow-on funding. Details are given around 500's investment criteria, portfolio diversification approach, and generating deal flow through its brand and network.
VC Fundraising Deck Template: Carta x Kauffman FellowsNihar Neelakanti
Carta and Kauffman Fellows present a venture capital fundraising deck template highlighting the various components a GP should include as part of their fundraising story to attract limited partners.
The document provides guidance on when and how much venture capital early-stage companies should raise. It recommends initially raising small amounts from friends and family, using that to build a product and pilot customers. It then suggests raising an angel/seed round and keeping costs low for the first year to prove scalability. It outlines when companies should consider venture capital versus other options. The document also provides tips on pitching VCs, including optimal fundraising seasons, pitch deck structure, and services The Rudder Group can provide to help companies raise capital.
This document provides an overview of venture capital, including:
- The key difference between startups and SMEs, and between private equity and venture capital
- What venture capital is and examples of major investments like Accel Partners in Facebook
- The premise of venture capital being high risk but also high reward
- A brief history of venture capital and its growth in Australia
- How venture capital funds are typically structured and the types of venture capital
- Current areas of interest for venture capital like fintech, AI, and blockchain
- The key decision criteria venture capitalists examine like metrics, business dynamics, deal terms, and team
Tech and Venture Capital in the Time of Corona Dave McClure
Isomer Capital is a private investment firm based in London that focuses exclusively on venture capital investments in European companies. It makes primary investments in VC funds as well as direct co-investments in companies. It has notable portfolio unicorns, investments in over 30 funds across 6 countries, and underlying portfolio companies. Venture capital has delivered strong returns over the past 25 years, outperforming other major asset classes like stocks and bonds. The European VC market has also outperformed the US market over the past 20 years based on Cambridge Associates indices.
The document describes Greenery Ventures, a $75 million sustainability venture fund. The fund aims to support pioneers of the sustainability era by investing in companies focused on carbon awareness, water usage, and waste reduction. Greenery Ventures will make 24 investments across agriculture tech, supply chain, and mobility sectors, primarily in North America and Europe. The fund differentiates itself through proprietary research networks that provide early insights into portfolio companies.
This document discusses the potential value that venture capital firms (VCs) can provide to entrepreneurs beyond just funding. It argues that while VCs are primarily financial investors, the best ones can significantly help startups through advice, connections, experience and other support. However, the level and type of support varies greatly between VCs and depends on factors like the individual VC's skills and the firm's resources and approach. The document also notes some potential misalignments between VCs and entrepreneurs.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
This document discusses Dave McClure's investment thesis and experience in venture capital. It provides an overview of 500 Startups, including its history, strategy of making many small investments, and how it invests through its accelerator program and seed/follow-on funding. Details are given around 500's investment criteria, portfolio diversification approach, and generating deal flow through its brand and network.
VC Fundraising Deck Template: Carta x Kauffman FellowsNihar Neelakanti
Carta and Kauffman Fellows present a venture capital fundraising deck template highlighting the various components a GP should include as part of their fundraising story to attract limited partners.
The document provides guidance on when and how much venture capital early-stage companies should raise. It recommends initially raising small amounts from friends and family, using that to build a product and pilot customers. It then suggests raising an angel/seed round and keeping costs low for the first year to prove scalability. It outlines when companies should consider venture capital versus other options. The document also provides tips on pitching VCs, including optimal fundraising seasons, pitch deck structure, and services The Rudder Group can provide to help companies raise capital.
This document provides an overview of venture capital, including:
- The key difference between startups and SMEs, and between private equity and venture capital
- What venture capital is and examples of major investments like Accel Partners in Facebook
- The premise of venture capital being high risk but also high reward
- A brief history of venture capital and its growth in Australia
- How venture capital funds are typically structured and the types of venture capital
- Current areas of interest for venture capital like fintech, AI, and blockchain
- The key decision criteria venture capitalists examine like metrics, business dynamics, deal terms, and team
Tech and Venture Capital in the Time of Corona Dave McClure
Isomer Capital is a private investment firm based in London that focuses exclusively on venture capital investments in European companies. It makes primary investments in VC funds as well as direct co-investments in companies. It has notable portfolio unicorns, investments in over 30 funds across 6 countries, and underlying portfolio companies. Venture capital has delivered strong returns over the past 25 years, outperforming other major asset classes like stocks and bonds. The European VC market has also outperformed the US market over the past 20 years based on Cambridge Associates indices.
The document describes Greenery Ventures, a $75 million sustainability venture fund. The fund aims to support pioneers of the sustainability era by investing in companies focused on carbon awareness, water usage, and waste reduction. Greenery Ventures will make 24 investments across agriculture tech, supply chain, and mobility sectors, primarily in North America and Europe. The fund differentiates itself through proprietary research networks that provide early insights into portfolio companies.
Founders Factory is an accelerator and incubator based in London that was founded in 2015. It aims to build technology companies through two main programs - an accelerator that supports existing startups, and an incubator that develops new companies from scratch with Founders Factory and its corporate investors. It has a team of over 60 specialists and has worked with over 60 startups and created 12 startups through its incubator program. It is backed by six major corporate investors in sectors like media, travel, fintech, beauty, education technology and AI. The organization provides funding, services, expertise and access to corporate partnerships to help technology companies scale rapidly.
At the Notation annual LP meeting this past fall, we gave a short talk on how we think about pre-seed investing & risk, and why we think there's a particularly interesting risk versus reward tradeoff at this stage.
VC Bootcamp By DFJ Gotham Ventures and Wilson Sonsini Goodrich & RosatiMark Davis
Slides from the Venture Capital Bootcamp event hosted by DFJ Gotham Ventures and Wilson Sonsini Goodrich & Rosati at Columbia University on June 3, 2009. A video of the 3 hour event is available at www.dfjgotham.com.
How to VC: Creating a VC fund portfolio modelDave McClure
This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.
Irish Technology Capital-European Technology Venture Fund - John Hartnett - S...Burton Lee
Presentation by John Hartnett, Irish Technology Capital, about the new venture Fund that he is raising in Ireland and Silicon Valley, aimed at the Irish and European hitech startups marketplace. Stanford Engineering, January 4 2010. Program Director and Course Instructor Dr. Burton Lee. Homepage: http://me421.stanford.edu
The document summarizes a venture capital fund that invests globally in technology companies. It has offices in major tech hubs around the world like Silicon Valley, Shanghai, Mexico City, and Dubai. The fund has invested in over 55 companies so far with a total valuation of $600 million generated from 8 exits. It provides services to support portfolio companies, including business consulting, sales and marketing support, and access to mentors. The fund aims to generate returns through investing in cutting-edge technology startups focused on growth.
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...500 Startups
The document discusses changes in building technology startups, venture capital investing, building startup ecosystems, and global entrepreneurship. It notes that startups now require less capital to build products and reach customers due to reduced costs and access to online platforms. Venture investing has shifted towards making many small "bets" through accelerators, angels, and seed funds. Successful startup ecosystems depend on factors like mentorship, capital availability, education resources, and an environment of optimism. Global markets now offer opportunities for startups due to technologies like smartphones, online payments, and growing middle classes worldwide.
Know how venture capitalists value your deal....understand how they are compensated...see what creates value and how investors assess your "risk factors."
A great slide show presentation that provides solid answers to many of these essential questions Check out mikeklein2010.wordpress.com
We’re thrilled to announce that we’ve raised Kleiner Perkins’ 18th venture fund -- $600 million to focus on early stage investing. This marks 47 years for our firm, and with a fresh team and strategy, we’re incredibly excited for the next 47 years.
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
This document summarizes the Global Frontier Technology Fund, which invests in early-stage technology companies around the world. The fund highlights that 85% of future GDP growth will occur outside the US and that it has a network of over 300,000 founders building companies in 49 countries. It invests in sectors like AI, blockchain, IoT, and financial technology. The fund also has partnerships to help portfolio companies scale globally.
The document summarizes information about the Techstars Paris Accelerator program for startups. It provides details on the 3 month accelerator program in Paris, France, including that it accepts up to 10 startups from various industries and provides up to $120,000 in investment per startup. It also lists the industries and types of startups they are looking for, how the accelerator program works over the 3 months, key dates, and how to apply.
MX Fund 01 - Hackers/Founders Co-op Mexico Pitch DeckHack Fund V
This document summarizes an early stage equity fund called MXFUND01 focused on investing in Mexican startups. A company called COOPMX will select startups through a rigorous process, provide them services and support to grow, and take a 5% equity stake in exchange. COOPMX has had success helping startups scale with its model in the US. MXFUND01 aims to invest in 20 Mexican startups, selling shares to investors to fund operations while supporting the startups. COOPMX's network and track record make it well positioned to help startups succeed and generate returns for investors.
Slash - the Startup Studio Playbook (13 dec2018)Slash
New models for collaboration emerge between corporates, startups and investors.
In his keynote at the Asia Startup Summit, Slash CEO Andries De Vos shares how Slash (www.slash.co) has developed a startup studio model which can be applicable to corporates, investors and entrepreneurs.
The document provides an overview of Kleiner Perkins (KP19) and their investment strategy and portfolio. In the past 48 years, KP has invested in over 1,000 companies, with 225 IPOs, 200 M&As, creating $3 trillion in market cap and returning $30 billion to investors. Their 2019 investments focused on enterprise (SaaS, infrastructure, security), healthcare, fintech, hardtech, and consumer sectors. They have an experienced team with technical backgrounds investing early in founders pursuing transformative goals.
Notation Capital is a NYC-based pre-seed venture capital fund that seeks to partner with highly technical founders building scalable internet companies. They believe that operational and capital efficiency have increased dramatically, allowing companies to gain many users with little funding. As successful NYC startups mature, technical talent is leaving to start new companies, presenting opportunities. Notation is well positioned as experienced technologists and investors to help the next wave of founders with guidance and small amounts of early funding.
A short introduction to Venture Capital Term Sheets, and in particular the concept of liquidation preferences. Leo Dirac's talk from Ignite Seattle 4. For more detail, see http://embracingchaos.com/business
Distribution of Wealth in Islam
By Mufti Muhammad Shafi Usmani
Note From Author: In the present study, we propose to state as clearly as possible the point of view of Islam in this matter, such as we have been able to deduce from the Holy Qur'an, the Sunnah, and the writings of the "Thinkers" (to use a current idiom) in the Islamic tradition. The time and space at our disposal being short, it would not be possible to discuss the subject in detail so as to cover all aspects. We shall, however, try to set down the essential and fundamental points in a concise but comprehensive manner.
Islam provides guidance for all aspects of life, including economic prosperity. It aims to ensure equal participation and fair distribution of wealth through prohibiting interest and promoting alternative means of circulation like zakat. By eliminating interest and ensuring wealth flows between rich and poor, unemployment can be reduced as production and purchasing power increase through constant circulation. Countries like Switzerland saw success by limiting interest rates. True prosperity comes from following Islam's complete code of life.
Founders Factory is an accelerator and incubator based in London that was founded in 2015. It aims to build technology companies through two main programs - an accelerator that supports existing startups, and an incubator that develops new companies from scratch with Founders Factory and its corporate investors. It has a team of over 60 specialists and has worked with over 60 startups and created 12 startups through its incubator program. It is backed by six major corporate investors in sectors like media, travel, fintech, beauty, education technology and AI. The organization provides funding, services, expertise and access to corporate partnerships to help technology companies scale rapidly.
At the Notation annual LP meeting this past fall, we gave a short talk on how we think about pre-seed investing & risk, and why we think there's a particularly interesting risk versus reward tradeoff at this stage.
VC Bootcamp By DFJ Gotham Ventures and Wilson Sonsini Goodrich & RosatiMark Davis
Slides from the Venture Capital Bootcamp event hosted by DFJ Gotham Ventures and Wilson Sonsini Goodrich & Rosati at Columbia University on June 3, 2009. A video of the 3 hour event is available at www.dfjgotham.com.
How to VC: Creating a VC fund portfolio modelDave McClure
This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.
Irish Technology Capital-European Technology Venture Fund - John Hartnett - S...Burton Lee
Presentation by John Hartnett, Irish Technology Capital, about the new venture Fund that he is raising in Ireland and Silicon Valley, aimed at the Irish and European hitech startups marketplace. Stanford Engineering, January 4 2010. Program Director and Course Instructor Dr. Burton Lee. Homepage: http://me421.stanford.edu
The document summarizes a venture capital fund that invests globally in technology companies. It has offices in major tech hubs around the world like Silicon Valley, Shanghai, Mexico City, and Dubai. The fund has invested in over 55 companies so far with a total valuation of $600 million generated from 8 exits. It provides services to support portfolio companies, including business consulting, sales and marketing support, and access to mentors. The fund aims to generate returns through investing in cutting-edge technology startups focused on growth.
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...500 Startups
The document discusses changes in building technology startups, venture capital investing, building startup ecosystems, and global entrepreneurship. It notes that startups now require less capital to build products and reach customers due to reduced costs and access to online platforms. Venture investing has shifted towards making many small "bets" through accelerators, angels, and seed funds. Successful startup ecosystems depend on factors like mentorship, capital availability, education resources, and an environment of optimism. Global markets now offer opportunities for startups due to technologies like smartphones, online payments, and growing middle classes worldwide.
Know how venture capitalists value your deal....understand how they are compensated...see what creates value and how investors assess your "risk factors."
A great slide show presentation that provides solid answers to many of these essential questions Check out mikeklein2010.wordpress.com
We’re thrilled to announce that we’ve raised Kleiner Perkins’ 18th venture fund -- $600 million to focus on early stage investing. This marks 47 years for our firm, and with a fresh team and strategy, we’re incredibly excited for the next 47 years.
Venture Capital 101 presentation on the basics of VC such as what venture capital is, and how it works. I delivered this presentation to a student group called InSITE that I belong to (mix of Columbia and NYU MBA and Law students). Enjoy!
-Brian Rothenberg
www.brianrothenberg.com
This document summarizes the Global Frontier Technology Fund, which invests in early-stage technology companies around the world. The fund highlights that 85% of future GDP growth will occur outside the US and that it has a network of over 300,000 founders building companies in 49 countries. It invests in sectors like AI, blockchain, IoT, and financial technology. The fund also has partnerships to help portfolio companies scale globally.
The document summarizes information about the Techstars Paris Accelerator program for startups. It provides details on the 3 month accelerator program in Paris, France, including that it accepts up to 10 startups from various industries and provides up to $120,000 in investment per startup. It also lists the industries and types of startups they are looking for, how the accelerator program works over the 3 months, key dates, and how to apply.
MX Fund 01 - Hackers/Founders Co-op Mexico Pitch DeckHack Fund V
This document summarizes an early stage equity fund called MXFUND01 focused on investing in Mexican startups. A company called COOPMX will select startups through a rigorous process, provide them services and support to grow, and take a 5% equity stake in exchange. COOPMX has had success helping startups scale with its model in the US. MXFUND01 aims to invest in 20 Mexican startups, selling shares to investors to fund operations while supporting the startups. COOPMX's network and track record make it well positioned to help startups succeed and generate returns for investors.
Slash - the Startup Studio Playbook (13 dec2018)Slash
New models for collaboration emerge between corporates, startups and investors.
In his keynote at the Asia Startup Summit, Slash CEO Andries De Vos shares how Slash (www.slash.co) has developed a startup studio model which can be applicable to corporates, investors and entrepreneurs.
The document provides an overview of Kleiner Perkins (KP19) and their investment strategy and portfolio. In the past 48 years, KP has invested in over 1,000 companies, with 225 IPOs, 200 M&As, creating $3 trillion in market cap and returning $30 billion to investors. Their 2019 investments focused on enterprise (SaaS, infrastructure, security), healthcare, fintech, hardtech, and consumer sectors. They have an experienced team with technical backgrounds investing early in founders pursuing transformative goals.
Notation Capital is a NYC-based pre-seed venture capital fund that seeks to partner with highly technical founders building scalable internet companies. They believe that operational and capital efficiency have increased dramatically, allowing companies to gain many users with little funding. As successful NYC startups mature, technical talent is leaving to start new companies, presenting opportunities. Notation is well positioned as experienced technologists and investors to help the next wave of founders with guidance and small amounts of early funding.
A short introduction to Venture Capital Term Sheets, and in particular the concept of liquidation preferences. Leo Dirac's talk from Ignite Seattle 4. For more detail, see http://embracingchaos.com/business
Distribution of Wealth in Islam
By Mufti Muhammad Shafi Usmani
Note From Author: In the present study, we propose to state as clearly as possible the point of view of Islam in this matter, such as we have been able to deduce from the Holy Qur'an, the Sunnah, and the writings of the "Thinkers" (to use a current idiom) in the Islamic tradition. The time and space at our disposal being short, it would not be possible to discuss the subject in detail so as to cover all aspects. We shall, however, try to set down the essential and fundamental points in a concise but comprehensive manner.
Islam provides guidance for all aspects of life, including economic prosperity. It aims to ensure equal participation and fair distribution of wealth through prohibiting interest and promoting alternative means of circulation like zakat. By eliminating interest and ensuring wealth flows between rich and poor, unemployment can be reduced as production and purchasing power increase through constant circulation. Countries like Switzerland saw success by limiting interest rates. True prosperity comes from following Islam's complete code of life.
This document discusses halal ways of earning wealth in Islam. It outlines several permissible sources of wealth, including various forms of trading like buying and selling, murabahah, salam, and ijarah. It also mentions inheritance and other means like worshipping Allah, seeking forgiveness, being grateful, and spending in the way of Allah. Wealth must be acquired honestly and responsibly in Islam and not distract from faith. Halal earnings are a form of worship that will be rewarded by Allah.
Computer network is a distributed system consisting of loosely coupled computers and other
devices. Any two of these devices, which we will from now on refer to as network elements or
transmitting elements, can communicate with each other through a communication medium. In
order for these connected devices to be considered a communicating network, there must be a set
of communicating rules or protocols each device in the network must follow to communicate wit
another device in the network. The resulting combination consisting of hardware and software is a computer communication network or computer network in short. Figure 1.1 shows a computer
network
Building Startup Ecosystems (Guadalajara, July 2015)Dave McClure
This document discusses changes in building technology startups and venture capital investing. It notes that startups can now be built with less capital due to reduced costs and access to online platforms with billions of users. Venture capital has also changed, with the rise of micro funds, accelerators, and global markets. The document advocates a "lean" approach of making many small bets across different investment stages. It emphasizes the importance of startup ecosystems that provide mentoring, capital, customers and exits for enabling startup growth.
This document summarizes information about 500 Startups, a seed accelerator program. It notes that 500 Startups has 110 people from 20 countries speaking 25+ languages, and has invested $220 million across 1500 companies through various accelerator programs and funds. Over 500 companies were from accelerator programs, over 400 started outside the US, and over 400 had women co-founders. Details are provided about the various 500 Startups funds and their sizes. It is reported that they have 3 unicorns valued over $1 billion, 30+ centaurs valued over $100 million, and 300+ ponies valued over $10 million. Examples of notable companies are provided. Information is also given about their investor education program and the demographics of a
This document discusses changes in building technology startups and venture capital investing. It notes that startups can now be built with less capital due to reduced costs and access to online platforms. Venture capital has also changed, with more global markets, distribution platforms enabling growth hacking, and the rise of unicorns and micro VC funds. It emphasizes making many small bets across different investment stages to diversify risk and increase chances of high returns. Building strong startup ecosystems is also important and requires factors like mentorship, universities, capital, infrastructure, and exit opportunities.
This document provides information about 500 Startups, a venture capital firm. It has over 75 employees across 15 countries speaking over 20 languages. It has $190 million under management and has invested in over 1200 companies across multiple funds, including over 300 companies started outside the US and over 300 with women co-founders. The firm has three unicorns valued over $1 billion and over 25 companies valued over $100 million. It also runs accelerator and distribution programs to help companies with growth.
"Introduction to 500 Startups" presentation will provide you a comprehensive overview of various activities that we do to promote startup ecosystem globally, discover best early stage companies and help them grow.
10 Challenges for Emerging Market Startup Ecosystems (Cairo)Dave McClure
This document outlines 10 common challenges for emerging market startup ecosystems and offers responses to each. It notes that 1) there are few investors and most offer poor terms, 2) there are few experienced entrepreneurs, and 3) there are few customers willing to pay. It suggests focusing on traction over features, looking for profitable customer acquisition channels. It also advocates for more exits, distributing equity widely, starting regionally before going global, and having more confidence as the ecosystem matures.
Building Startup Ecosystems (Berlin, June 2015)Dave McClure
The document discusses changes in building technology startups and venture capital investing. It notes that startups now require less capital to build products and reach customers due to cloud infrastructure and online platforms. Venture capital has also changed with the rise of seed funds, accelerators, and global funding opportunities. The document advocates for a portfolio approach of making many small bets on startups, expecting most to fail but a few to have outsized returns. It outlines stages of investing from product validation to revenue growth. Finally, it discusses how startup ecosystems develop through factors like capital, talent, and successful exits that inspire future entrepreneurs.
Silicon Valley 2.0: Make Lots of Little Bets.Dave McClure
The document discusses changes in building technology startups and venture capital investing. Specifically, it notes that startups now require less capital to build products and reach customers due to reduced costs and access to online platforms. It also discusses how venture capital investing has shifted towards making many small bets through micro-VC funds, incubators, and accelerators. Additionally, it outlines how startup ecosystems are developing globally through growing entrepreneurship worldwide.
10 Challenges for Emerging Market Startup EcosystemsDave McClure
1. There are challenges for emerging market startup ecosystems including a lack of experienced investors, entrepreneurs, customers, and viable exit opportunities. However, these ecosystems have grown significantly with increased internet access, smartphone adoption, and the ability for local startups to access global markets.
2. Accelerators and incubators play an important role in supporting emerging markets but many struggle due to lack of funding, expertise, and focus on short-term gains rather than long-term growth. For accelerators to succeed, they need sustainable models with corporate, academic or government partners.
3. Both founders and investors in emerging markets often lack confidence compared to Silicon Valley. However, the biggest startups started elsewhere and moved to Silicon Valley
Dave McClure gave a talk about reinventing venture capital through 500 Startups' model of making many small investments. He discussed how technology has lowered the costs of starting companies and how platforms provide access to large customer bases. 500 Startups makes over 100 investments per year and aims to have a portfolio size of over 100 companies to increase chances of finding unicorns. Their strategy is to make many small "bets" and double down on the most promising companies. McClure also proposed training 500 new VCs through programs with Stanford to expand access to startup funding.
Startup Metrics for Pirates (Nov 2015, Platzi)Dave McClure
The document discusses startup metrics and provides an overview of the AARRR framework for measuring key metrics. It introduces the AARRR acronym which stands for Acquisition, Activation, Retention, Referral, and Revenue. It emphasizes measuring metrics that are simple, actionable and help optimize the product, marketing and business model based on user behavior data.
Dave McClure, a founding partner at 500 Startups, gave a presentation on technology trends in 2017. He discussed how startups have become cheaper, faster, and better. He also talked about how VCs are making lots of small bets through many new, small funds. McClure highlighted several investment areas including fintech, AI, AR/VR, blockchain, and other new technologies. He emphasized 500 Startups' strategy of making many small investments to find the next big winners.
10 Challenges for Emerging Market Startup EcosystemsDave McClure
1) Emerging market startup ecosystems face challenges including a lack of investors, entrepreneurs, customers, and exits. However, these ecosystems are improving as more founders gain experience, customers increase with economic growth, and acquirers look outside major tech hubs for deals.
2) The document provides advice for emerging market startups and investors, such as focusing on customer acquisition and growth over features, aiming for regional success before global expansion, and distributing equity widely to create more angel investors.
3) It argues that most accelerators will struggle due to tough economics but can improve by specializing in industries, and getting corporate partners to boost funding and time horizons for supporting startups.
Dave McClure is a founding partner at 500 Startups, a global seed fund and startup accelerator. He discusses changes in building startups and venture capital investing. Specifically, he notes that startups now require less capital to build products and reach customers due to reduced costs and access to online platforms. Venture capital has also evolved, with the rise of micro funds, accelerators, and funding platforms. McClure advocates a "lean" portfolio approach of making many small bets on startups, expecting most to fail but a few to achieve large exits.
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)Dave McClure
This document summarizes Dave McClure's presentation on building startup and investor ecosystems. It discusses what 500 Startups is and their approach of making lots of small investments. It outlines changes in how startups are built more leanly and how venture capital has adapted a portfolio approach of many small bets. It covers building startup ecosystems by providing capital, community, education and exits. Finally, it discusses questions around defining entrepreneurs and challenges and solutions for investing in new tech markets.
Building Startup Ecosytems & Investing in Tech StartupsDave McClure
This document discusses building startup ecosystems. It notes that starting a tech startup now requires less capital due to reduced server and software costs. More customers can be reached through online platforms. Accelerators and angel investors provide capital, mentoring and networking opportunities. Changes in venture capital include micro funds and a focus on making many small bets. Successful startup ecosystems have factors like education, capital, universities, platforms and exits through acquisition or IPO. The document estimates that with 500 venture capital funds investing, the annual seed-stage startup market could be around $5 billion funding 10,000 startups per year globally.
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
500 Startups is a global seed fund and startup accelerator with over 1,500 companies and 3,000 founders in its portfolio. It has 125 people across 30 partners in 20 countries. Some of its notable exits include Credit Karma ($3.5B), Twilio ($1B+), Grab ($1B+), and Wildfire (acq. by Google for $350M).
The presentation discusses how building startups and venture capital investing has changed, with startups now requiring less capital and having more distribution channels online. It outlines 500 Startups' "lean" portfolio approach of making many small bets across different stages. The final section discusses how 500 Startups aims to engineer startup ecosystems in emerging markets by providing capital
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
500 Startups is a global seed fund and startup accelerator that has invested in over 1500 companies across 50 countries since 2010. It provides capital, community, education, and resources to founders and investors through its accelerator program, seed fund investments, distribution platform, marketing support, events, and educational content. The presentation discusses changes in how startups are built and funded more efficiently using lean startup methodologies and online distribution platforms, as well as changes in venture capital investing towards a portfolio approach of making many small bets across different stages. It outlines 500 Startups' strategy of investing small amounts in many early stage companies and selectively doubling down on the top performers over time to achieve outsized returns from successful exits.
Changes in VC + Building Startup EcosystemsDave McClure
This document provides an overview of a talk given by Dave McClure on changes in venture capital and building startup ecosystems. The key points covered include:
1. An introduction to 500 Startups, a global seed fund and startup accelerator that has invested in over 700 companies across 40+ countries.
2. Changes that have occurred in technology and venture capital due to factors like reduced costs, increased online platforms, and the rise of accelerators and angel investing.
3. How 500 Startups employs a "Lean VC" approach of making many small bets through incremental investment stages focused on product validation, market validation, and revenue validation.
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Dave McClure
500 Startups is a global venture capital firm and startup accelerator that has invested in over 1,500 companies across 50+ countries. The presentation provides an overview of 500 Startups, including its portfolio approach of making many small investments, changes in building startups and venture capital investing, and strategies for building startup ecosystems, particularly in emerging markets. Key points include diversifying investment risk across a large portfolio, focusing on early-stage companies, and addressing challenges like access to capital, acquirers, and liquidity events in developing startup communities.
Building Startup Ecosystems (Seoul, Oct 2014)Dave McClure
This document summarizes Dave McClure's talk on changes in tech startups, venture capital, and building startup ecosystems. Some key points include:
- Startups now require less capital, have faster development cycles, and can reach more customers through online platforms.
- A "Lean VC" approach involves making many small bets across early-stage startups using incremental funding.
- Critical factors for strong startup ecosystems include education, mentors, capital access, universities, and infrastructure to support companies from early ideas through growth.
- McClure argues that 500 venture capital funds globally could support 10,000 seed-stage startups per year through this Lean VC approach of making many small bets.
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Dave McClure
This document summarizes Dave McClure's presentation on building startup ecosystems and investing strategies. The key points are:
1) McClure discusses 500 Startups' strategy of making many small "spray and pray" investments in early stage startups to increase the chances of finding a unicorn.
2) He outlines the typical stages and structures of startup investments from incubation to growth, focusing on validating products, markets, revenue, and growth at each stage.
3) McClure emphasizes the importance of building strong startup ecosystems through factors like capital, mentors, universities, and successful exits to attract more entrepreneurs and investors.
Building Startup Ecosystems (Dubai, Oct 2014)Dave McClure
This document summarizes Dave McClure's talk on changes in venture capital and building startup ecosystems. Some of the key points discussed include:
1) The venture capital industry and tech startups have changed significantly since the dot-com era, requiring less capital and using online platforms to reach more customers.
2) A "Lean VC" approach of making many small bets on early-stage startups in seed rounds has replaced the traditional large funding rounds of the past.
3) Critical factors for building strong startup ecosystems include mentorship, universities, capital, infrastructure, and successful exits through IPOs or acquisitions.
This document summarizes Dave McClure's talk on changes in venture capital and building startup ecosystems. It discusses how technological changes and the rise of online platforms have made it cheaper and easier for startups to launch and reach customers globally. It also describes the evolution of a "lean" venture capital model of making many small bets across early-stage startups. Finally, it outlines critical factors for building strong startup ecosystems and the role of incubators, angel investors, and venture capital funds.
Investing in Tech Startups + Corporate Innovation (with SVB)Dave McClure
Dave McClure presented on corporate innovation strategies for researching, investing in, partnering with, and acquiring startups. He discussed how the startup ecosystem and tech investing have changed, with startups now requiring less capital and able to reach more customers through online platforms. McClure advocated for corporations to make "lots of little bets" by investing small amounts across many startups, expecting most to fail but a few to become large exits. He outlined strategies corporations can use at different startup stages from product validation to revenue growth.
Building Startup Ecosystems (Cairo, Oct 2014)Dave McClure
The document discusses changes in venture capital and building startup ecosystems globally. It notes that technology startups now require less capital to develop products and reach customers due to reduced infrastructure costs and access to online platforms. Venture capital has also evolved, with more "lean" or quantitative approaches involving many small bets on early-stage startups. Critical factors for building startup ecosystems include education, mentoring, capital access, and distribution platforms. The speaker argues there is large potential for funding startups globally, not just in major tech hubs, given the availability of skilled entrepreneurs and growing markets worldwide.
Building Startup Ecosystems (Singapore, July 2014)Dave McClure
This document discusses changes in venture capital and building startup ecosystems. It provides an overview of 500 Startups, a global seed fund and accelerator. It outlines how the tech startup landscape has changed, requiring less capital and time to build products and reach customers due to cloud computing and online platforms. It discusses the rise of "lean VC" through quantitative venture capital approaches like making many small bets across startups. The document also covers how to build strong startup ecosystems through factors like education, mentors, capital availability and exits. It argues global entrepreneurship is growing and emerging markets present opportunities, especially with the spread of smartphones and online payments.
Building Startup Ecosystems (Denver, Sept 2014)Dave McClure
This document summarizes Dave McClure's talk on changes in venture capital and building startup ecosystems. It discusses how technology startups have become more efficient through lean startup methods and online platforms, requiring less funding. It also outlines McClure's model of "quantitative venture capital", making many small investments across different startup stages from product validation to growth. Finally, it examines factors needed to build strong startup ecosystems and the potential for micro venture capital and global entrepreneurship.
Changes in Venture Capital (Pioneers, Vienna)Dave McClure
The document discusses changes in the venture capital industry. It notes that startup costs have decreased due to cloud computing and open source software, allowing for faster development cycles. Venture capital has also evolved, with more "micro-VC" seed funds and accelerators providing early funding. The author advocates for a "lots of little bets" strategy of making many small investments early on and doubling down on the top performers. Online platforms provide new distribution opportunities for startups to reach millions of customers globally.
Building Startup Ecosystems (Istanbul, Sept 2014)Dave McClure
Dave McClure discusses changes in venture capital and building startup ecosystems. He outlines how startups now require less capital and have access to large online customer platforms. This enables the "lean startup" approach of making many small bets through incubators and accelerators. McClure also discusses factors needed for strong startup ecosystems like education, mentors, capital sources and exits. He believes this model can work globally as barriers lower with technologies like smartphones and payments systems.
Semelhante a Venture Capital Unlocked (Stanford) / Venture Capital 2.0 (20)
Basic concepts of marketing and branding for venture capital. Emphasis on competitive differentiation (aka "How are you different/better than other VCs in your category?"). Specific focus on defining areas of "value add" that aren't BS.
This document provides advice on how venture capital firms can position themselves competitively through branding, marketing, and clearly communicating their value proposition. It emphasizes defining an investment thesis focused on specific industries, stages of funding, and deal sizes. It also stresses developing a unique value-add service that portfolio companies need and marketing activities to generate dealflow. Finally, it discusses fundraising by targeting the right limited partner profiles and addressing their needs and motivations for alternative investments.
Bringing Silicon Valley to LatAm: Startup Ecosystems & InvestmentDave McClure
Dave McClure is a founding partner at 500 Startups, a $350 million venture capital fund and startup platform. He discussed 500 Startups' strategy of making many small investments in early-stage startups, with the goal of a few large exits. He explained how 500 Startups supports startups through different investment stages as they progress from validating their product to achieving revenue and growth. McClure also talked about opportunities for building startup ecosystems in Latin America and Miami, noting the need for more venture capital funds and critical factors like mentorship, capital, and a path to exits.
Dave McClure is the founding partner and chief troublemaker of 500 Startups, a global seed fund and startup platform. The document provides biographical details about McClure's background and career, which spans from being an entrepreneur and developer in the 1980s and 1990s to becoming an investor and venture capitalist through funds like Founders Fund and 500 Startups. It also summarizes 500 Startups' strategy of making many small, early-stage investments in startups across different countries and industries in hopes that some will achieve significant growth and success.
Take a Walk on the Dark Side: Branding for Startups & Sith LordsDave McClure
This document provides advice on branding for startups and emphasizes embracing negative emotions and controversial positioning to stand out. It recommends focusing a brand on a single element, being different than competitors by taking risks early, and not worrying about offending some people. Further, it suggests tapping into human emotions like fear, sex, power and anger; being a hero or villain rather than boring; using pictures over words; and always staying authentic while bringing out your most passionate self.
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsDave McClure
The poem describes the Statue of Liberty and the values she represents. The statue stands welcoming at the "sea-washed, sunset gates" of America, holding a torch to guide immigrants. Her name is "Mother of Exiles" and she offers a "world-wide welcome" to "the tired, the poor, [and] the huddled masses yearning to breathe free." She invites "the homeless, tempest-tost" people of the world to come to her, lifting her lamp "beside the golden door" of opportunity in America.
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexDave McClure
Dave McClure is a founding partner at 500 Startups, a global seed fund and startup accelerator. 500 Startups has invested in over 1700 companies across 60+ countries. McClure discussed building startup ecosystems in emerging markets like MENA. He said the critical factors include optimism, mentorship, universities/talent, capital/infrastructure, product skills, platforms/customers, payments, and exit opportunities like IPOs and acquisitions. The most important thing is developing a culture of innovation and entrepreneurship locally, even if not physically located in Silicon Valley.
Farming Unicorns: Building Startup & Investor EcosystemsDave McClure
This document discusses building startup ecosystems and the 500 Startups investment strategy. It begins with Dave McClure's background in venture capital and entrepreneurship. It then discusses 500 Startups, which is a $250 million global seed fund and accelerator that has invested in over 1,600 companies across more than 20 countries. McClure outlines 500 Startups' strategy of making many small "moneyball" style bets on early stage startups. He believes this approach maximizes the chances of finding unicorns, or billion dollar companies, despite the high failure rate of startups. The document concludes by discussing the critical factors for building strong startup ecosystems and emphasizes the importance of fostering an entrepreneurial spirit.
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"Dave McClure
This document provides information about Batch17 Demo Day, an event hosted by 500 Startups to showcase their accelerator and portfolio companies. Some key details include that the event will feature 20 countries and 25+ languages represented among 150 attendees. 500 Startups has managed $250 million across multiple funds and supported over 500 accelerator companies and 600 companies started outside the US, including over 400 with women co-founders. The portfolio includes 3 unicorns (companies valued over $1 billion, one of which had an IPO), over 300 "ponies" valued between $10-99 million, and 37 "centaurs" valued between $100-999 million. Information is also provided on 500 Startups' various funds, programs, and
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dave McClure
my talk on corporate innovation (or the lack thereof), the death of many dinosaurs, the survival of a smart few Raptors, and how to avoid getting trampled by Unicorns.
500 Startups / Batch 16 Demo Day (Q1/2016 update)Dave McClure
The document announces Batch 16 Demo Day, a one-day event showcasing 20 early-stage companies from 500 Startups' accelerator and portfolio. Some key details about 500 Startups include that they have $250 million under management, have funded over 1,500 companies across 60+ countries, including over 500 from their accelerator programs and over 500 founded outside the US. The document provides statistics on portfolio company outcomes and funds raised by 500 Startups. It also announces related programs on investor education and global startup support.
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
The document provides an overview of 500 Startups, a global venture capital firm and startup accelerator. Some key points:
- 500 Startups has invested in over 1,500 companies across 50+ countries through its $250 million fund and accelerator program.
- It employs 125 people across 30 partners and 25 languages to provide startups with investment, acceleration, marketing, events, and education.
- The document discusses changes in building tech startups and venture capital investing, highlighting trends like lower startup costs, global online platforms, and the rise of seed/angel funding.
- 500 Startups' strategy involves making many small, early-stage bets and doubling down on the most promising companies to target 25-
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...Dave McClure
This document provides tips on using emojis, GIFs, and memes to influence people and increase company valuation in 3 sentences or less:
It recommends including emojis, GIFs, and memes in communications as they are quick, easy, universal, and fun ways to engage others that can help influence people and increase a company's valuation. However, it warns not to get arrested by being inappropriate and provides examples of emojis, GIFs, and memes to consider using. It also thanks various internet personalities and celebrities who helped inspire the use of digital media in business communications.
Explore the key differences between silicone sponge rubber and foam rubber in this comprehensive presentation. Learn about their unique properties, manufacturing processes, and applications across various industries. Discover how each material performs in terms of temperature resistance, chemical resistance, and cost-effectiveness. Gain insights from real-world case studies and make informed decisions for your projects.
2. Dave McClure
Founding Partner, 500 Startups
00’s & 10’s:
• VC: Founders Fund, Facebook fbFund, 500 Startups
• Angel: Mashery, Mint.com, SlideShare, Twilio, Wildfire, SendGrid
• Marketing: PayPal, Simply Hired, Mint.com, O’Reilly
80’s & 90’s:
• Entrepreneur: Aslan Computing (acq’d by Servinet/Panurgy)
• Developer: Windows / SQL DB consultant (Intel, MSFT)
• Engineer: Johns Hopkins‘88, BS Eng / Applied Math
3. How to Become a VC
• Option 1: Go to Harvard/Stanford/Wharton, Get MBA, Become
VC Associate, Work at McKinsey / Google / Facebook, Re-Join
VC as Junior Partner or Partner
• Option 2: Start a Startup, Grow Really Big, Sell for $1B+, Join
VC as Partner
• Option 3: Wander around lost in the forest, Work Your Ass Off
for 25 yrs, do some angel investing, Start your own Firm
4. • What is 500?
– $220M silicon valley VC fund + startup accelerator
– 100 people / 30 partners / 25 languages / 20 countries
– 1500+ Companies / 3000+ Founders / 200+ Mentors
– Investment, Accelerator, Distro, Marketing, Events, Education
– Community + Content + Conferences
• 1500+ Co’s / 50+ Countries
– Credit Karma ($3.5B)
– Twilio ($1B+)
– GrabTaxi ($1B+)
– Wildfire (acq GOOG, $350M)
– MakerBot (acq SSYS, $400M)
– Viki (acq Rakuten, $200M)
– Behance (acq Adobe, $150M)
– Simple (acq BBVA, $117M)
– Sunrise (acq MSFT, $100M)
– Udemy
– Ipsy
– TalkDesk
– Intercom
500 Startups
Global Seed Fund & Startup Accelerator
16. Legal review Partner approval
Angel Pre-Seed Seed Post-Seed Series A/B Growth
Accelerator
Seed
“Distro"
Follow-On
Selection Criteria – Data-Driven Process Based on Pre-defined Metrics
• Product or service solves a problem for a specific target customer
• Capital-efficient business; operational at less than $1M in external financing
• Scalable internet-based distribution (search, social, mobile) or proven ability to scale sales
• Functional prototype required before investing (or previous product success)
• Measurable traction: engaged users, some revenue, and attractive unit economics
• Cross-functional team with design, engineering and marketing expertise
How 500 Invests:
Accelerator, Seed, Distro
25. 500 Strategy: Lots of Little Bets*
1) make lots of little
bets on pre-traction,
early-stage startups
3) wait 5-10 years for returns:
-10-20% small exits @1-5X ($5-25M+)
-5-10% larger exits @5-20X ($25-250M+)
-1-2% unicorns @20-50X+ ($250M-1B+)
*See Peter Sims book: “Little Bets”
2) over the next five years,
double-down on top 20-30%
~500 co’s @ $100K 1st checks
100-200 co’s @ $200-500K
2nd/3rd checks
(target 25-50 exits @ $100M+)
(assume high failure rate ~50-80%)
27. Investor Ecosystem
Angels &
Incubators
($0-10M)
“Micro-VC” Funds
($10-100M)
“Big” VC Funds
($100-500M)
“Mega” VC Funds
(>$500M)
Incubation
0-$100K
Seed
$100K-$2M
Series A/B
$2-10M
Series B/C
$10-50M
Bootstrap, KickStarter,
AngelList, Crowdfunding
stage where
500 writes
first checks
stage where 500
doubles-down
(maybe)
28. [ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Investment Workshop: “VC101 in 60m”
• Q&A
29. Changes in Tech Startups
• LESS Capital required to build product, get to market
– Dramatically reduced cost for servers, software, bandwidth
– Funding Platforms: KickStarter, Angel List, Funders Club, etc
– Access to online platforms for 100M-1B+ consumers, smallbiz, etc
• MORE Customers via ONLINE platforms (100M+ users)
– Search (Google, Baidu)
– Social (Facebook, Twitter, LinkedIn)
– Mobile (Apple, Android)
– E-Commerce (Amazon, PayPal, Alibaba)
– Media (YouTube, Pinterest, Instagram)
– Comm/Msgs (WeChat, WhatsApp, SnapChat, Email, Voice, SMS, etc)
• LOTS of little bets: Accelerators, Angels, Angel List, Small Exits
– Capital + Co-working + Mentoring -> Design, Data, Distribution
– “Fast, Cheap Fail”, network effects, quantitative + iterative investments
33. [ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Investment Workshop: “VC101 in 60m”
• Q&A
34. Industry Changes
• Financial Market Crises (2000, 2008)
• Startup Efficiency, Lean Startup Movement, Reduced Capital Costs
• Growing Market, Global Distribution Platforms, “Growth Hacking”
• Improved Monetization, Payments Infrastructure
• Developing Startup Ecosystems, Global M&A
• Micro VC: Seed Funds (ex: First Round Capital)
• Incubators & Accelerators (ex: Y Combinator, 500 Startups)
• Funding Platforms (ex: Angel List, Kickstarter)
• Global Market of Angel Investors, Accelerators, Seed Funds
more info: http://PreMoney.co
39. [ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Investment Workshop: “VC101 in 60m”
• Q&A
41. 500 Strategy: Lots of Little Bets*
1) make lots of little
bets on pre-traction,
early-stage startups
3) wait 5-10 years for returns:
-10-20% small exits @1-5X ($5-25M+)
-5-10% larger exits @5-20X ($25-250M+)
-1-2% unicorns @20-50X+ ($250M-1B+)
*See Peter Sims book: “Little Bets”
2) over the next five years,
double-down on top 20-30%
~500 co’s @ $100K 1st checks
100-200 co’s @ $200-500K
2nd/3rd checks
(target 25-50 exits @ $100M+)
(assume high failure rate ~50-80%)
42. The Lean Investor
Make lots of little bets:
• Start with many small “experiments”
• Filter out failures + small wins
• Double-down on stuff that looks like it’s working
• Incubation: $0-100K (“Build & Validate Product”)
• Seed: $100K-$1M (“Test & Grow Marketing Channels””)
• Venture: $1M-$10M (“Maximize Growth & Revenue”)
43. Investment Stage #1:
Product Validation + Customer Usage
• Structure
– 1-3 founders
– $0-$100K investment
– Incubator environment: multiple peers, mentors/advisors
• Test Functional Prototype / “Minimum Viable Product” (MVP):
– Prototype->Alpha, ~3-6 months
– Develop Minimal Critical Feature Set => Get to “It Works! Someone Uses It.”
– Improve Design & Usability, Setup Conversion Metrics
– Test Small-Scale Customer Adoption (10-1000 users)
• Demonstrate Concept, Reduce Product Risk, Test Functional Use
• Develop Metrics & Filter for Possible Future Investment
44. Investment Stage #2:
Market Validation + Revenue Testing
• Structure
– 2-10 person team
– $100K-$1M investment
– Syndicate of Angel Investors / Small VC Funds
• Improve Product, Expand Customers, Test Revenue:
– Alpha->Beta, ~6-12 months
– Scale Customer Adoption => “Many People Use It, & They Pay.”
– Test Marketing Campaigns, Customer Acquisition Channels + Cost
– Test Revenue Generation, Find Profitable Customer Segments
• Prove Solution/Benefit, Assess Market Size
• Test Channel Cost, Revenue Opportunity
• Determine Org Structure, Key Hires
45. Investment Stage #3:
Revenue Validation + Growth
• Structure
– 5-25 person team
– $1M-$10M investment
– Seed & Venture Investors
• Make Money (or Go Big), Get to Sustainability:
– Beta->Production, 12-24 months
– Revenue / Growth => “We Can Make (a lot of) Money!”
– Mktg Plan => Predictable Channels / Campaigns + Budget
– Scalability & Infrastructure, Customer Service & Operations
– Connect with Distribution Partners, Expand Growth
• Prove/Expand Market, Operationalize Business
• Future Milestones: Profitable/Sustainable, Exit Options
46. [ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Investment Workshop: “VC101 in 60m”
• Q&A
50. Investment Thesis + Model
• Define Investment Thesis (geography, technology,
customer segment, investment stage, etc)
• What’s Your Unique Insight / Advantage? Show
some proof or evidence of why you’re not crazy
(or at least not always wrong, occasionally…)
• Build Model of Potential Investments vs Returns
50
52. Investment Allocation Strategy
• How long will companies take to exit / reach liquidity? (3-7 yrs)
• How long is your investment cycle? (ex: 3-5 yrs)
• When will capital be returned? (1X in 5-8 yrs, 2-5X in 8-12 yrs)
• Simple allocation for $10M investment budget over first 5 years
• 50% 1st checks + 50% 2nd/3rd checks
• ~100 1st checks @ $50K each ($5M), ~20 checks / yr
• ~10-20 2nd checks @ $250-500K each ($5M), ~3 checks / yr
1 2 3 54 7 8 109 11 12 13 15146
1 5432
50
15
.. .. ..
53. Generating Dealflow
• Writing / Speaking
• Attend (or Run!) User Groups / Conferences
• Networking / Referrals / LinkedIn / Email
• Angel List / other funding platforms
• 500 / YC / TechStars / StartX / other acc
• Sand Hill Angels / angel investing clubs
• Domain Focus: What’s Your Thesis?
• Community: Founders / Mentors
53
56. Deal Terms, Deal Memos
• Summarize Opportunity:
• Concept, Product, Problem, Market, Traction, Team,
Terms, IP, Users, Revenue, Other Investors, Conviction
• [Summary of Previous Investments made + % ownership]
• Pre-Money Valuation or Cap + Discount (Ask for Min 2x?)
• Ask for Info Rights? (YES) Ask for Pro-Rata / Follow-On Rights?
• Major Investor Status? (Usually Info Rights + Pro-Rata Rights)
• Do You Have Leverage (or Not)?
56
57. The Flat, The Elbow, The Wall
• Invest @ “The Flat”
when prices are low
• Double-down if/when
you detect “The Elbow”
(if valuation isn’t crazy)
• Don’t invest @ “The
Wall” unless capital is
infinite — if valuation
starts running away, you
usually can’t buy any
meaningful ownership
relative to existing. Time
Revenue,
Growth Startup W
Startup L
Startup K
“The Flat”
“The Elbow”
“The Wall”
1
2
3
3
58. Investing Resources
• The Venture Capital Cycle (Gompers, Lerner)
• Venture Deals (Feld, Mendelson)
• Angel Investing (Rose)
• Venture Hacks (Naval, Nivi)
• blogs: Fred Wilson, Brad Feld, Mark Suster
• Quora: Jason Lemkin, David Rose, etc
58
62. We live in a World of ABUNDANCE
• There are LOTS of talented people in the world
• There are LOTS of entrepreneurs everywhere
• There is a LOT of capital sitting around, BUT….
• Not much is available for un-tested entrepreneurs :(
• 500 Startups plans to change that.
64. Who/What is an Entrepreneur?
• someone who WANTS to start a business
• someone who can RUN a business
• someone who can run a SUSTAINABLE business
• someone who can run a PROFITABLE business
that creates VALUE & employs LARGE # people
• someone who can run a $10M/yr business that
employs 100+people
65. How Big Is The Market?
Q: How Many Entrepreneurs?
• How Many People = 7,000,000,000 on earth
• 1% of Humanity is Entrepreneurial = 70,000,000 founders
• Live 70 years, try at least once = 1,000,000 founders / year
• How Much Do They Need? Zero? $100K? $1M? $10M?
• How Big is the Market = 1M founders x $10M = $10 TRILLION / year
• Come on, REALLY? (ok Divide by 100)
• 100,000 founders / year * $1M each = $100 BILLION / year
66. How Many VCs?
• How Many Founders? 1,000,000 founders / year
• (ok, divide by 100, let’s say 10,000 founders / year)
• 1 VC can make 20 investments / year
• 10,000 founders / 20 deals per VC = 500 VCs