Data Synergy:  Scaling Information Businesses<br />
Who Is DFJ Gotham Ventures?<br />Mark Davis<br />Thatcher Bell<br />Danny Schultz<br />Ross Goldstein<br />www.dfjgotham.c...
Who Does DFJ Gotham Invest In?<br />3<br />
4<br />What Is The DFJ Network?<br />23 funds, >$6 billion in capital<br />150 professionals, 600 portfolio companies<br /...
5<br />Markpeterdavis.com<br />Chapters:<br /><ul><li>VC Overview
Developing A Fundraising Strategy
Picking The VCs
Preparing Your Materials
The Pre-Fundraising Process
Getting The Meeting
The First Meeting
After The First Meeting
The Due Diligence Phase
Doing The Deal</li></ul>The Entrepreneur’s Guide To Raising Venture Capital<br />
Objective for Entrepreneurs<br />Help you:<br />Understand what makes an IT business scalable<br />Find ways to make your ...
7<br />Hard To Own Markets Without Barriers<br />
8<br />Owning Markets Makes Monster Companies<br />
9<br />3 Tech Models That Tend To Scale<br />Marketing Companies<br />Technology Companies<br />Information Companies<br /...
Tech-heavy
Tech-lite</li></ul>Barriers<br /><ul><li>Customer captivity
Capex or R&D
Economies of Scale
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Data Synergy - Scaling Information Businesses

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This presentation is designed to help you: 1) understand what makes IT companies scalable, 2) find ways to scale your business idea, 3) identify the right financing strategy.

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Data Synergy - Scaling Information Businesses

  1. 1. Data Synergy: Scaling Information Businesses<br />
  2. 2. Who Is DFJ Gotham Ventures?<br />Mark Davis<br />Thatcher Bell<br />Danny Schultz<br />Ross Goldstein<br />www.dfjgotham.com <br />2<br />
  3. 3. Who Does DFJ Gotham Invest In?<br />3<br />
  4. 4. 4<br />What Is The DFJ Network?<br />23 funds, >$6 billion in capital<br />150 professionals, 600 portfolio companies<br />Unique access, insight and deal flow<br />
  5. 5. 5<br />Markpeterdavis.com<br />Chapters:<br /><ul><li>VC Overview
  6. 6. Developing A Fundraising Strategy
  7. 7. Picking The VCs
  8. 8. Preparing Your Materials
  9. 9. The Pre-Fundraising Process
  10. 10. Getting The Meeting
  11. 11. The First Meeting
  12. 12. After The First Meeting
  13. 13. The Due Diligence Phase
  14. 14. Doing The Deal</li></ul>The Entrepreneur’s Guide To Raising Venture Capital<br />
  15. 15. Objective for Entrepreneurs<br />Help you:<br />Understand what makes an IT business scalable<br />Find ways to make your business idea scalable<br />Identify the right financing strategy<br />
  16. 16. 7<br />Hard To Own Markets Without Barriers<br />
  17. 17. 8<br />Owning Markets Makes Monster Companies<br />
  18. 18. 9<br />3 Tech Models That Tend To Scale<br />Marketing Companies<br />Technology Companies<br />Information Companies<br />Technology<br /><ul><li>Tech-lite or heavy
  19. 19. Tech-heavy
  20. 20. Tech-lite</li></ul>Barriers<br /><ul><li>Customer captivity
  21. 21. Capex or R&D
  22. 22. Economies of Scale
  23. 23. Intellectual Property
  24. 24. Data synergy</li></ul>Strategy<br /><ul><li>Profitable unit economics
  25. 25. Scale to capture market share
  26. 26. Scale to realize cost advantages
  27. 27. Scale to build barriers</li></li></ul><li>10<br />The Models Overlap + Examples<br />Information Companies<br />TechnologyCompanies<br />Marketing Companies<br />
  28. 28. 11<br />Network Effects Are Well Known…<br />
  29. 29. 12<br />…But Those Are Just For People (Relationships)…<br />What about?<br />Reviews<br />Activity<br />Descriptions<br />They have data barriers too!<br />
  30. 30. 13<br />…We’re Really Talking About Data Synergy <br />1 + 1 > 2<br />
  31. 31. 14<br />Data Synergy Drives Exponential Growth<br />Exponential Growth<br />LinearGrowth<br />
  32. 32. 15<br />Data Synergy  Better Marketing Equation<br />Customer Lifetime Value<br />Cost of Acquisition<br />Customer Profitability<br />-<br />=<br />Constant<br />LinearGrowth<br />-<br />=<br />Exponential Growth<br />
  33. 33. 16<br />The Golden Question<br />How does each additional unit of data increase value for other customers?<br />
  34. 34. 17<br />Data Barriers Are Built Not Born<br />Identify the right model & scale<br />
  35. 35. 18<br />Thinking About Data: 5 Types<br />Descriptive(characteristics or properties of identity)<br />Activity(actions of the identity)<br />Subjective(opinions about other identities provided by the identity)<br />Relationship(how the identity relates to other identities)<br />Identity(a unique identifier)<br />
  36. 36. 19<br />Examples Of Data Synergy<br />Descriptive(characteristics or properties of identity)<br />Activity(actions of the identity)<br />Subjective(opinions about other identities provided by the identity)<br />Relationship(how the identity relates to other identities)<br /><ul><li>Stored info about my company</li></ul>Linear growth<br /><ul><li>What camera I purchased
  37. 37. List of my favorite restaurants
  38. 38. Database of my personal contacts</li></ul>Exponentialgrowth<br /><ul><li>Shared info making a directory of companies (Crunchbase)
  39. 39. Listing of which camera was purchased most often (Cnet)
  40. 40. Ranking of the most popular restaurants(Yelp)
  41. 41. A social graph illustrating to others who I know (LinkedIn)</li></li></ul><li>20<br />Impact On Financing Strategy?<br />High<br />Weak Barriers: Venture Capital<br />VentureCapitalBuild a Giant Co<br />Strong Barriers:Bootstrap<br />Scalability of Business<br />NotViable<br />BootstrapOwn 80% of a Small Co<br />Low<br />High<br />Low<br />Investment Required to Achieve Breakeven Cash Flow<br />
  42. 42. 21<br />Is Your Data Synergy Hiding?<br />Get a whiteboard out& <br />find it!<br />
  43. 43. 22<br />Contact Info<br />Mark Davis<br />DFJ Gotham Ventures<br />(212) 279-3980<br />Blog: markpeterdavis.com<br />twitter.com/markpeterdavis<br />Contact me via my blog…<br />

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