TheFunded: Hit the Reset Button


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A presentation delivered in Tel Aviv to the Globes "Israel Business Conference."

Published in: Business, Economy & Finance
  • Jboutelle,
    well, harsh it is.

    PS I don't mean every single baby boomer is a historical junk. What I said, as a generation -all together- baby boomers performed poorly. A bit of dirt can spoil the whole soup.

    Every single misery in the recent history is correlated with the timing baby boomers had to accept a next stage in their life. Unfortunately, the understanding for concept of responsibility and precise in-deep thinking came short.
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  • A little harsh, pbycall. Not sure there's a generational component here ... it's just a bad time for the economy, and particularly for VCs (who are measured on a 10-year horizon).
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  • Is the right way realistic?

    Who is gonna invest (time, money) into the crazy ideas if the crazy returns didn't help? According to the invisible hand, the BrianTracys of the world will prevail with the 'don't loose your money' statement. The need in Progress isn't the right term for the spoiled baby boomers, who are currently in charge of the oversight. Sometimes a massive die-off could be a humanitarian action. 'Matrix reloaded' would be the prescription. Improper experienced investors have been proved by the outcome ending in the crisis.

    The big question remains. How to refresh the system displacing incompetence without a bloodshed?
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  • GREAT preso ... very nice work.
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TheFunded: Hit the Reset Button

  1. 1. The Reset Button The State of Funding Innovation in Q4, 2008
  2. 2. Let’s look on the bright side…
  3. 3. Now, for the bad news… IT’S NYSE HERE! worrying about mortgage payments vactioning in war torn public markets spending their last dollar to hit a home run
  4. 4. The model’s not working… Fundraising Exits SOURCE: NVCA / Thompson Reuters Exit Poll SOURCE: NVCA / Thompson Reuters VC Fundraising Q3 more money is invested than value is created
  5. 5. So, let’s export it to China… Israel Canada China Europe India SOURCE: EE Times Asia Survey 12/07
  6. 6. Still, nobody’s making real money… EXIT VALUES < $50 MM $5 > $500 MM FAILURE ACCEPTABLE SUCCESS 1 / 100 1 / 1,000 1 / 10,000 MANAGEMENT Bonus ~10% Value ~15% Value INVESTORS 1x w/ lost time 3-10x >10x EMPLOYEES Nothing Bonuses Millionaires SUPPORT Lawyers $$$ Lawyers + Bankers Everyone < $50 MM $50-500 MM > $500 MM
  7. 7. But, society is reaping rewards…
  8. 8. The point is…
  9. 9. It’s all about building companies… The Present Way The Right Way Goal Sell for $1 Billion Build a Great Company Selection Crazy Projections Crazy Ideas Valuation Arbitrary Ownership % Needs and Progress Assistance Fundraising Business Development
  10. 10. Some tips for VCs… <ul><li>Invest in the unusual </li></ul><ul><li>Believe in the impossible </li></ul><ul><li>Stop being lazy! </li></ul><ul><ul><li>help your portfolio without conditions </li></ul></ul><ul><ul><li>back management, don’t replace them: they have the passion and commitment </li></ul></ul>
  11. 11. Some tips for entrepreneurs… <ul><li>Cooperate </li></ul><ul><ul><li>work with your competitors since your industry is under economic assualt </li></ul></ul><ul><li>Conserve </li></ul><ul><ul><li>conserve capital / resources </li></ul></ul><ul><li>Dominate! </li></ul>
  12. 12. So, in conclusion… IT’S NYSE HERE!
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