@paulsingh #moneyball4startups
PAUL SINGH
@paulsingh・paul@dashboard.io・dashboard.io
THE EVOLUTION OF THE
PRIVATE MARKET
TH...
@paulsingh #moneyball4startups
@paulsingh・paul@dashboard.io・dashboard.io
500 STARTUPS
@paulsingh #moneyball4startups
@paulsingh #startupchile
A (R)EVOLUTION IN THINKING
@paulsingh #moneyball4startups
EARLY STAGE
STARTUPS
HAVE CHANGED
@paulsingh #moneyball4startups
STARTUP COSTS
LOWER THAN EVERBUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DI...
@paulsingh #moneyball4startups
WEB GETS BIGGER.
WORLD GETS SMALLER.
@paulsingh #moneyball4startups
TRACTION IS THE NEW
INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIV...
@paulsingh #moneyball4startups
CAPITAL
INCREASINGLY
COMMODITIZEDRISE OF THE ANGELS, YO!
@paulsingh #moneyball4startups
NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!
@paulsingh #moneyball4startups
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #moneyball4startups
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #moneyball4startups
TRANSPARENCY IS
SIGNALS ARE
EVERYWHEREBIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR...
@paulsingh #moneyball4startups
WALL STREET
BEAT US TO IT
@paulsingh #moneyball4startups
@paulsingh #moneyball4startups
UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE ANALYSIS
POINTS TO AN
INTERESTING CADENCE
I...
@paulsingh #moneyball4startups
@paulsingh #moneyball4startups
TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHING’S TANK
FARMS ON AN OIL
INDUSTRY SPYING...
@paulsingh #moneyball4startups
WALL STREET
ISN’T ALONETHESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO
FERTILIZATION L...
@paulsingh #moneyball4startups
WE CAN DO IT, TOOSURPRISE!
IT TURNS OUT,
@paulsingh #moneyball4startups
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
@paulsingh #moneyball4startups
WE CAN DO IT, TOO.
@paulsingh #moneyball4startups
WE CAN DO IT, TOO.
@paulsingh #moneyball4startups
WE’RE DOING IT, TOO.
@paulsingh #moneyball4startups
@paulsingh #moneyball4startups
VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.
“
-- NA...
@paulsingh #moneyball4startups
data.dashboard.io
@paulsingh #moneyball4startups
data.dashboard.io
@paulsingh #moneyball4startups
EARLY STAGE VC
IS CHANGING
HAS CHANGED
@paulsingh #moneyball4startups
STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED
@paulsingh #moneyball4startups
UNBUNDLING OF
ADVICE, CONTROL
AND MONEY
@paulsingh #moneyball4startups
USED TO BE ABOUT
CAPITAL, DEALFLOW
AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.
@paulsingh #moneyball4startups
@paulsingh #moneyball4startups
data.dashboard.io
@paulsingh #moneyball4startups
(500) CHECKLIST
Product solves a problem for a specific target customer
Capital-efficient bus...
@paulsingh #moneyball4startups
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not ...
@paulsingh #moneyball4startups
BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
...
@paulsingh #moneyball4startups
THE PRIVATE MARKET IS
BECOMING MORE
ACCESSIBLE.
@paulsingh #moneyball4startups
THE PRIVATE MARKET IS
BECOMING MORE
TRANSPARENT.
@paulsingh #moneyball4startups
Demo DayVideos ⟹ livestream.com/500startups
Sample Pitch Decks ⟹ slideshare.net/500startups...
@paulsingh #moneyball4startups
data.dashboard.io
@paulsingh #moneyball4startups
THE PRIVATE MARKET IS
BECOMING MORE EFFICIENT.
@paulsingh #moneyball4startups
THE PRIVATE MARKET IS
BECOMING MORE EFFICIENT.
AND, SOON, MORE LIQUID.
@paulsingh #moneyball4startups
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh #moneyball4startups
ALSO...Distribution > Product
Tactics > Strategy
Notability > Credibility
Get on AngelList
...
@paulsingh #moneyball4startups
@paulsingh・paul@dashboard.io・dashboard.io
THE EVOLUTION OF THE
PRIVATE MARKET
THE RISE OF T...
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Evolution of the Private Market - Motley Fool

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Slides for my talk at @themotelyfool in September 2013.

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Evolution of the Private Market - Motley Fool

  1. 1. @paulsingh #moneyball4startups PAUL SINGH @paulsingh・paul@dashboard.io・dashboard.io THE EVOLUTION OF THE PRIVATE MARKET THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
  2. 2. @paulsingh #moneyball4startups @paulsingh・paul@dashboard.io・dashboard.io 500 STARTUPS
  3. 3. @paulsingh #moneyball4startups
  4. 4. @paulsingh #startupchile A (R)EVOLUTION IN THINKING
  5. 5. @paulsingh #moneyball4startups EARLY STAGE STARTUPS HAVE CHANGED
  6. 6. @paulsingh #moneyball4startups STARTUP COSTS LOWER THAN EVERBUT SCALING STILL COSTS MONEY CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
  7. 7. @paulsingh #moneyball4startups WEB GETS BIGGER. WORLD GETS SMALLER.
  8. 8. @paulsingh #moneyball4startups TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE. NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
  9. 9. @paulsingh #moneyball4startups CAPITAL INCREASINGLY COMMODITIZEDRISE OF THE ANGELS, YO!
  10. 10. @paulsingh #moneyball4startups NEW REALITY: MONEY FOLLOWS FOUNDERS RISE OF THE ENTREPRENEURS, YO!
  11. 11. @paulsingh #moneyball4startups SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  12. 12. @paulsingh #moneyball4startups SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  13. 13. @paulsingh #moneyball4startups TRANSPARENCY IS SIGNALS ARE EVERYWHEREBIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  14. 14. @paulsingh #moneyball4startups WALL STREET BEAT US TO IT
  15. 15. @paulsingh #moneyball4startups
  16. 16. @paulsingh #moneyball4startups UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW. “
  17. 17. @paulsingh #moneyball4startups
  18. 18. @paulsingh #moneyball4startups TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION. “
  19. 19. @paulsingh #moneyball4startups WALL STREET ISN’T ALONETHESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.
  20. 20. @paulsingh #moneyball4startups WE CAN DO IT, TOOSURPRISE! IT TURNS OUT,
  21. 21. @paulsingh #moneyball4startups + “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
  22. 22. @paulsingh #moneyball4startups WE CAN DO IT, TOO.
  23. 23. @paulsingh #moneyball4startups WE CAN DO IT, TOO.
  24. 24. @paulsingh #moneyball4startups WE’RE DOING IT, TOO.
  25. 25. @paulsingh #moneyball4startups
  26. 26. @paulsingh #moneyball4startups VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY. “ -- NAVAL RAVIKANT (@naval)
  27. 27. @paulsingh #moneyball4startups data.dashboard.io
  28. 28. @paulsingh #moneyball4startups data.dashboard.io
  29. 29. @paulsingh #moneyball4startups EARLY STAGE VC IS CHANGING HAS CHANGED
  30. 30. @paulsingh #moneyball4startups STATE OF THE ART IN EARLY STAGE INVESTING IS NOT VERY SOPHISTICATED
  31. 31. @paulsingh #moneyball4startups UNBUNDLING OF ADVICE, CONTROL AND MONEY
  32. 32. @paulsingh #moneyball4startups USED TO BE ABOUT CAPITAL, DEALFLOW AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.
  33. 33. @paulsingh #moneyball4startups
  34. 34. @paulsingh #moneyball4startups data.dashboard.io
  35. 35. @paulsingh #moneyball4startups (500) CHECKLIST Product solves a problem for a specific target customer Capital-efficient businesses - operational @ <$1M funding Primarily internet-based distribution - search, social, mobile, local Simple revenue models - transactions, subscriptions or affiliate Functional prototype before investment (or previous success) Small but measurable usage - some customers, early revenue Small but cross-functional team - engineer, design/UX, marketing
  36. 36. @paulsingh #moneyball4startups (NEW) FINANCINGS Standardized terms No fixed amounts, no closings, no leads Continuous, not discrete rounds Prices beginning to float No Board seats at the earliest stage Herd mentality and oversubscriptions
  37. 37. @paulsingh #moneyball4startups BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION. “ -- MICHAEL LEWIS
  38. 38. @paulsingh #moneyball4startups THE PRIVATE MARKET IS BECOMING MORE ACCESSIBLE.
  39. 39. @paulsingh #moneyball4startups THE PRIVATE MARKET IS BECOMING MORE TRANSPARENT.
  40. 40. @paulsingh #moneyball4startups Demo DayVideos ⟹ livestream.com/500startups Sample Pitch Decks ⟹ slideshare.net/500startups Venture Capital 101 ⟹ venturehacks.com/archives Investor Thoughts: Brad Feld ⟹ feld.com Fred Wilson ⟹ avc.com Chris Dixon ⟹ cdixon.org Mark Suster ⟹ bothsidesofthetable.com angel.co/valuations and angel.co/salaries
  41. 41. @paulsingh #moneyball4startups data.dashboard.io
  42. 42. @paulsingh #moneyball4startups THE PRIVATE MARKET IS BECOMING MORE EFFICIENT.
  43. 43. @paulsingh #moneyball4startups THE PRIVATE MARKET IS BECOMING MORE EFFICIENT. AND, SOON, MORE LIQUID.
  44. 44. @paulsingh #moneyball4startups YOUR KEY TAKEAWAYS Focus on Traction. Learn to Communicate and Inspire.
  45. 45. @paulsingh #moneyball4startups ALSO...Distribution > Product Tactics > Strategy Notability > Credibility Get on AngelList Raise 12-18+ months of funding Learn the basics of VC economics Don’t confuse due diligence with progress & probability... Shameless plug: data.dashboard.io
  46. 46. @paulsingh #moneyball4startups @paulsingh・paul@dashboard.io・dashboard.io THE EVOLUTION OF THE PRIVATE MARKET THE RISE OF THE ANGELS (AND THE ENTREPRENEURS) LEARN MORE: bit.ly/dashboard-weekly
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