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And Ingenuity “It's 106 miles to Chicago, we've got a full tank of gas, half a pack of cigarettes, it's dark, and we're wearing sunglasses."
Summary View We are in the middle of an unprecedented boom in technology and innovation A true “Golden Age” for innovation and entrepreneurship Growth opportunity ahead of us is more rapid, and global, than ever before Despite many changes, Venture Capital plays a critical role in the ecosystem
Context for My Perspective General Partner at Flybridge Capital Partners, early-stage VC firm based in Boston, $560M under management
50+ portfolio companies, investing out of Fund 3 ($280M)
Entrepreneur-in-Residence at Harvard Business School Former entrepreneur
Successful Companies – to partner, poach and/or sell to
Why Now? Contextual Forces Lean Start-Ups Cloud Computing Moore’s Law Reduced Cost To Experiment Opportunity for Angels & VCs
VC Impact: Huge Leverage $2.9 trillion – VC-backed businesses combined sales (20% of total business revenues in US) 12 million – jobs at venture-backed companies (12% of US work force) 1,000 – number of active VCs who make investment decisions $4 billion in initial investments
Give me a lever long enough, and I will move the Earth. - Archimedes
Why Raise VC Money? Experience Matters: VCs have “seen the movie” over and over again and can help avoid pitfalls to find the path to success Deep Pockets: High risk tolerance and additional funding for follow-on rounds Value-Add: VCs provide domain experience, industry contacts, and strategic planning Swing Big: VCs don’t invest in niches, they invest in transformative ideas that can build large companies
Typical Investment Criteria Tangible things investors like to see: Very big market Unfair advantage Attractive business model Unique technology or business model approach Intangible things investors like to see: “Pied Piper” – an ability to recruit and retain a great team, partners Interpersonal chemistry Movie, not a snapshot