Fortune Favors the Bold

The Idea “Write what you know” “Let’s do the big thing” “What do you wish there was” Wave the magic wand Think about meaning, not money

“Write what you know”

“Let’s do the big thing”

“What do you wish there was”

Wave the magic wand

Think about meaning, not money

Two Types of Entrepreneurs Peter the Great divides the Jews Professionals Wheeler-Dealers You want to be both “What’s your prediction for the fight?”

Peter the Great divides the Jews

Professionals

Wheeler-Dealers

You want to be both

“What’s your prediction for the fight?”

Don’t Worry About Having your plan forwarded to your enemies Investor collusion Getting diluted nearly unto death Losing control, being humiliated, then fired

Having your plan forwarded to your enemies

Investor collusion

Getting diluted nearly unto death

Losing control, being humiliated, then fired

Things They Like to Hear “We’re three nerds working in a trailer park” “I don’t know” “I don’t have to be CEO” “We’re going to pick the best partner”

“We’re three nerds working in a trailer park”

“I don’t know”

“I don’t have to be CEO”

“We’re going to pick the best partner”

Things They Don’t Like to Hear… Patents Special classes of shares Man-years of old technology Transparent desire to get bought

Patents

Special classes of shares

Man-years of old technology

Transparent desire to get bought

Every Airplane Has Something Wrong With It Plumtree management team Misanthropic CEO Sit-up champion Marketing sex fiend Vision “ Search engine without a search engine” Architect: Hosni Mubarak’s cousin

Plumtree management team

Misanthropic CEO

Sit-up champion

Marketing sex fiend

Vision

“ Search engine without a search engine”

Architect: Hosni Mubarak’s cousin

Presentation Suggestions Wiffy’s 10/20/30 Make it a dialog Stand up Be enthusiastic (keep it real) First, answer the darn question

Wiffy’s

10/20/30

Make it a dialog

Stand up

Be enthusiastic (keep it real)

First, answer the darn question

The Premise (Example) Redfin is E-Trade for real estate. As the only geeks with MLS access, we can build the world’s best real estate search. Then we can automate the transaction for better service at lower cost and lots of profits. Keep it simple Use real words “ Explain it to me like I’m a two year-old…”

Redfin is E-Trade for real estate. As the only geeks with MLS access, we can build the world’s best real estate search. Then we can automate the transaction for better service at lower cost and lots of profits.

Keep it simple

Use real words

“ Explain it to me like I’m a two year-old…”

Product JUST DEMO BABY! (Will it delight the 1st user?)

JUST DEMO BABY!

What To Do When You Have No Special Sauce Welcome to the club But wait, you have: Head start: “MOVE! MOVE! MOVE!” No fear of big fat incumbents Domain expertise

Welcome to the club

But wait, you have:

Head start: “MOVE! MOVE! MOVE!”

No fear of big fat incumbents

Domain expertise

Market: How Big Can It Be? Total ADDRESSABLE market Back of the envelope calculations Market-share at $100M should be < 20% “ My f-ing ears are lying on the f-ing floor”

Total ADDRESSABLE market

Back of the envelope calculations

Market-share at $100M should be < 20%

“ My f-ing ears are lying on the f-ing floor”

The Team Don’t be a lonely freak At least one technical founder Build it & sell it: no COO, BD “Have they seen the good movie?” “You want to win a World Series? Get me 9 guys in their contract year.”

Don’t be a lonely freak

At least one technical founder

Build it & sell it: no COO, BD

“Have they seen the good movie?”

“You want to win a World Series? Get me 9 guys in their contract year.”

Customer Validation  Higher Valuation What will open your customers’ wallets? Whom will you sell it to? Sales pipeline: get nitty-gritty

What will open your customers’ wallets?

Whom will you sell it to?

Sales pipeline: get nitty-gritty

Financials P&L, balance sheet Hiring: ask CTO Revenues: ask VP Sales Margins: what are the unit economics? We are favorable to plan The “oh shit” moment Present plan to company first: can we do this?

P&L, balance sheet

Hiring: ask CTO

Revenues: ask VP Sales

Margins: what are the unit economics?

We are favorable to plan

The “oh shit” moment

Present plan to company first: can we do this?

Deal Get 18 months of cash Most lead VC’s need to own 20% Terms that matter Employee option pool Liquidation preference Don’t take every penny off the table

Get 18 months of cash

Most lead VC’s need to own 20%

Terms that matter

Employee option pool

Liquidation preference

Don’t take every penny off the table

Parting Advice: Be a Street-Fighter Radical openness: the truth will set you free Make the rules: don’t try to act grownup Speed kills: what don’t they want me to do? Culture: everyone is a leader

Radical openness: the truth will set you free

Make the rules: don’t try to act grownup

Speed kills: what don’t they want me to do?

Culture: everyone is a leader

And If You Lose, Lose Nothing “Do the right thing.” “The operative word is, I think, love” “There the fault lies all in the not-done, all in the diffidence that faltered.”

“Do the right thing.”

“The operative word is, I think, love”

“There the fault lies all in the not-done, all in the diffidence that faltered.”