John Vrionis LightSpeed Venture Agenda  (Very) Short Personal History  Venture Capital Industry Dynamics  Virtualized Networking  Parting Thoughts ONS2015: http://bit.ly/ons2015sd ONS Inspire! Webinars: http://bit.ly/oiw-sd Watch the talk (video) on ONS Content Archives: http://bit.ly/ons-archives-sd

3. VC Industry & SDN
John Vrionis
April 2012

4. Agenda
 (Very) Short Personal History
 Venture Capital Industry Dynamics
 Virtualized Networking
 Parting Thoughts
2

5. A Little Personal History
3
2004

6. Venture Capitalists
4
 Lemmings / Herd
 More original thought

7. Example: “Big Data”
5

8. Time to Value
Big Data
2012
SDN
2012
SDN
2010/
2011
Value
6
Source: Gartner

9. What about SDN?
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$0
$50
$100
$150
$200
$250
$300
$350
$400
$MRaised
Source: Dow Jones VentureSource, Lightspeed research
Nicira Series A
Embrane Series A
Big Switch Series A
...?
Plexxi Series A

10. The Venture Readiness Condition
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Academic research / Technological breakthrough
Bleeding edge enterprise adoption + initial VC funding
Broad interest from technical community + use cases
Value Proposition for mass market understood
Initial liquidity event

11. Why aren’t we at VC-CON 1 yet?
 Macro
(1) Fewer VCs with money to invest
(2) Fewer VCs focusing on Enterprise
Infrastructure
 Micro – most VCs and even some
startups are missing something…
9

12. The BIG Idea
 SDN is NOT about:
 Supply chain economics, OR
 The same protocol soup for cheaper
 This IS about solving TODAY’s business problems
 Virtualization, Big Data, Cloud, Performance Tiers
 And it IS about SPEED
 Program Principals NOT Protocols
 Rapid service creation
 Innovation Curve
10

13. Past Investments(1) Current Portfolio
Acquired by
Sycamore Networks
Initial Public
Offering
NASDAQ: TERN
Initial Public
Offering
NASDAQ: RVBD
Initial Public
Offering
NASDAQ: BRCD
Initial Public
Offering
NASDAQ: CIEN
Acquired by
Broadcom
Acquired by
Conexant
Acquired by
PMC-Sierra
Acquired by
Marvell
Acquired by
Cisco
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Track Record of Networking Success
(1) Lightspeed Managing Director investments
Acquired by
Texas Instruments

14. Let’s Talk
 What other opportunities?
 Shh…
 Entire ecosystem ripe for disruption
 Monitoring
 Security
 Management
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15. Thank You
john@lightspeedvp.com
www.lightspeedvp.com