VC Perspective on Trends in InvestingEthan Kurzweil Bessemer Venture PartnersStartup Idol Conference July 23, 2009Presentation online at: http://www.slideshare.net/ethankurz

Bessemer Venture PartnersFounded 1911IsraelBostonNew YorkCalifoniaMumbai (India)Presentation online at: http://www.slideshare.net/ethankurz

And so you asked for trends… $100 TrillionAndre PeroldFinance ProfessorHarvard Business School

Signs of hope in Q2…

And even better, first-time financings are on the rise

When Great Companies Were Founded…FORESYSTEMS1980 1982 1984 1986 1988 1990 1992 1994 1996

When Great Companies Were Founded…2001 2002 2003 2004 2005 2006 2007

What’s hot right now?

Big MarketsEnergyInternetStem CellsSecurityMobileConsumerization of enterprise softwareIndiaWeb VideoSocial GamingVirtualizationSaaS

India

Web Video

Social Gaming

Virtualization

SaaS

Benefited by GDPChanges

Failure *is* an option...Source: Dow Jones VentureSource

And here’s why… Bessemer’s Law of Internet EfficiencyWeb Application DevelopmentCost“The time and money required to produce (design, develop, test, launch, scale) a basic e-commerce application drops in half every two years.”NetScape Apache Java ActiveX Flash Shockwave PHP XML Ruby on Rails service APIs Amazon EC2 AJAX$20,000$3001995 19992003 2007

Twitter

Piryx

MashLogic“It’s like a frickin Swiss Army Knife for hyperlinks…I’m putting this on my must-have list of Firefox addons.”

CAPITALEFFICIENTWhat’s hot right now?

Tip #1: Meet your new sales force…

Tip #1: Meet your new sales force…

Tip #2: Get someone else to do it

Tip #3: Design: less is more…

Tip #4: Who are your customers?

Tip #5: Offices are overrated

If Bessemer won’t invest…

Ethan KurzweilBessemer Venture Partnersethankurz@bvp.com Twitter: @ethankurzSlides available at: http://www.slideshare.net/ethankurzStartup Idol Conference July 23, 2009Thanks!