It is a great 7me to
start a business in Texas!
But, you say…
• There are few ac@ve VCs leD in Texas . . .
• The angels are broke . . .
It doesn’t maPer . . .
The VC model is dying (for now) AND VC money is usually bad for your business!
‐ VC/Angel investment = lower chance of a 1‐5x return
‐ VC/Angel investment = higher chance of complete failure
‐ VC/Angel investment = slower exit (typically a decade)
…oh, did I men,on, you have a
50% chance of ge7ng ﬁred in the
ﬁrst year a<er a VC investment?
What kind of business should you start?
– What are you passionate about?
– What experience do you have?
– How much money do you have?
– How much money can you raise?
– How likely is your business to succeed?
Gates (so<ware), Dell (resale) and Cuban
(service) started businesses that
generated posi,ve cash from the start,
they did not need much (if any) outside
‐ BeSer parking
‐ $7B market
‐ Part‐@me un@l launch
‐ VERY Proﬁtable
‐ BeSer IT services
‐ $3.2‐10B market
‐ Part‐@me to launch
Be Capital Eﬃcient
• Start a business you can build without outside capital.
• Focus on services, soDware or technology.
• Assume you will need to be proﬁtable.
• Start selling immediately.
• Partner proliﬁcally.