@paulsingh

#mentorcamp

THE BUSINESS OF
(TECH) INVESTING
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
PAUL SINGH
@pauls...
@paulsingh

#mentorcamp

500 STARTUPS

@paulsingh・paul@dashboard.io・dashboard.io
@paulsingh

#mentorcamp
@paulsingh

#mentorcamp

A (R)EVOLUTION IN THINKING
@paulsingh

#mentorcamp

SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh

#mentorcamp

SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh

#mentorcamp

TRANSPARENCY IS
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh

#mentorcamp

WALL STREET
BEAT US TO IT
@paulsingh

#mentorcamp
@paulsingh

#mentorcamp

“

UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE ANALYSIS
POINTS TO AN
INTERESTING CADENCE
INTR...
@paulsingh

#mentorcamp
@paulsingh

#mentorcamp

“

TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHING’S TANK
FARMS ON AN OIL
INDUSTRY SPYING
MI...
@paulsingh

#mentorcamp

WALL STREET
ISN’T ALONE
THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO
FERTILIZATION LENDIN...
@paulsingh

#mentorcamp

IT TURNS OUT,

WE CAN DO IT, TOO
SURPRISE!
@paulsingh

#mentorcamp

+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
@paulsingh

#mentorcamp

WE CAN DO IT, TOO.
@paulsingh

#mentorcamp

WE CAN DO IT, TOO.
@paulsingh

#mentorcamp

WE’RE DOING IT, TOO.
@paulsingh

#mentorcamp
@paulsingh

#mentorcamp

“ VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.
-- NAVAL RA...
@paulsingh

#mentorcamp

dashboard.io
@paulsingh

#mentorcamp

dashboard.io
@paulsingh

#mentorcamp

EARLY STAGE VC
IS CHANGING
HAS CHANGED
@paulsingh

#mentorcamp

STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED
@paulsingh

#mentorcamp

UNBUNDLING OF
ADVICE, CONTROL
AND MONEY
@paulsingh

#mentorcamp

USED TO BE ABOUT
CAPITAL, DEALFLOW
AND JUDGEMENT
TODAY, IT’S ABOUT ACCESS.
@paulsingh

#mentorcamp
@paulsingh

#mentorcamp

INCREASINGLY ABOUT
DEAL SELECTION,
NOT DEAL SOURCING.
IT’S 2013, YO.
@paulsingh

#mentorcamp

dashboard.io
@paulsingh

#mentorcamp

(500) CHECKLIST
Product solves a problem for a specific target customer
Capital-efficient businesse...
@paulsingh

#mentorcamp

(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discre...
@paulsingh

#mentorcamp

THE BUSINESS OF INVESTING
IS ABOUT CHOOSING THE
LEAST-WORST OPPORTUNITY
NOT TRYING TO PREDICT THE...
@paulsingh

#mentorcamp

THE FIRST CHECK SHOULD
BE SMALL AND FAST
DOUBLE DOWN HEAVY IF THE COMPANY SURVIVES INTO THE NEXT ...
@paulsingh

#mentorcamp

“

BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
INF...
@paulsingh

#mentorcamp

THE PRIVATE MARKET IS
BECOMING MORE
ACCESSIBLE.
@paulsingh

#mentorcamp

THE PRIVATE MARKET IS
BECOMING MORE
TRANSPARENT.
@paulsingh

#mentorcamp

Demo Day Videos ⟹ livestream.com/500startups
Sample Pitch Decks ⟹ slideshare.net/500startups
Vent...
@paulsingh

#mentorcamp

dashboard.io
@paulsingh

#mentorcamp

YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh

ALSO...

#mentorcamp

Distribution > Product
Tactics > Strategy
Notability > Credibility
Get on AngelList
Rais...
@paulsingh

#mentorcamp

THE BUSINESS OF
(TECH) INVESTING
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
LEARN MORE:
bit.l...
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The Business of (Tech) Investing -- MentorCamp

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Slides for my talk at MentorCamp 2013 in Halifax, NS. The alternative title for this talk is "how not to lose all your fucking money."

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The Business of (Tech) Investing -- MentorCamp

  1. 1. @paulsingh #mentorcamp THE BUSINESS OF (TECH) INVESTING THE RISE OF THE ANGELS (AND THE ENTREPRENEURS) PAUL SINGH @paulsingh・paul@dashboard.io・dashboard.io
  2. 2. @paulsingh #mentorcamp 500 STARTUPS @paulsingh・paul@dashboard.io・dashboard.io
  3. 3. @paulsingh #mentorcamp
  4. 4. @paulsingh #mentorcamp A (R)EVOLUTION IN THINKING
  5. 5. @paulsingh #mentorcamp SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  6. 6. @paulsingh #mentorcamp SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  7. 7. @paulsingh #mentorcamp TRANSPARENCY IS SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  8. 8. @paulsingh #mentorcamp WALL STREET BEAT US TO IT
  9. 9. @paulsingh #mentorcamp
  10. 10. @paulsingh #mentorcamp “ UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
  11. 11. @paulsingh #mentorcamp
  12. 12. @paulsingh #mentorcamp “ TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.
  13. 13. @paulsingh #mentorcamp WALL STREET ISN’T ALONE THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.
  14. 14. @paulsingh #mentorcamp IT TURNS OUT, WE CAN DO IT, TOO SURPRISE!
  15. 15. @paulsingh #mentorcamp + “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
  16. 16. @paulsingh #mentorcamp WE CAN DO IT, TOO.
  17. 17. @paulsingh #mentorcamp WE CAN DO IT, TOO.
  18. 18. @paulsingh #mentorcamp WE’RE DOING IT, TOO.
  19. 19. @paulsingh #mentorcamp
  20. 20. @paulsingh #mentorcamp “ VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY. -- NAVAL RAVIKANT (@naval)
  21. 21. @paulsingh #mentorcamp dashboard.io
  22. 22. @paulsingh #mentorcamp dashboard.io
  23. 23. @paulsingh #mentorcamp EARLY STAGE VC IS CHANGING HAS CHANGED
  24. 24. @paulsingh #mentorcamp STATE OF THE ART IN EARLY STAGE INVESTING IS NOT VERY SOPHISTICATED
  25. 25. @paulsingh #mentorcamp UNBUNDLING OF ADVICE, CONTROL AND MONEY
  26. 26. @paulsingh #mentorcamp USED TO BE ABOUT CAPITAL, DEALFLOW AND JUDGEMENT TODAY, IT’S ABOUT ACCESS.
  27. 27. @paulsingh #mentorcamp
  28. 28. @paulsingh #mentorcamp INCREASINGLY ABOUT DEAL SELECTION, NOT DEAL SOURCING. IT’S 2013, YO.
  29. 29. @paulsingh #mentorcamp dashboard.io
  30. 30. @paulsingh #mentorcamp (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
  31. 31. @paulsingh #mentorcamp (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
  32. 32. @paulsingh #mentorcamp THE BUSINESS OF INVESTING IS ABOUT CHOOSING THE LEAST-WORST OPPORTUNITY NOT TRYING TO PREDICT THE NEXT GOOGLE, FACEBOOK OR LINKEDIN.
  33. 33. @paulsingh #mentorcamp THE FIRST CHECK SHOULD BE SMALL AND FAST DOUBLE DOWN HEAVY IF THE COMPANY SURVIVES INTO THE NEXT ROUND
  34. 34. @paulsingh #mentorcamp “ BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION. -- MICHAEL LEWIS
  35. 35. @paulsingh #mentorcamp THE PRIVATE MARKET IS BECOMING MORE ACCESSIBLE.
  36. 36. @paulsingh #mentorcamp THE PRIVATE MARKET IS BECOMING MORE TRANSPARENT.
  37. 37. @paulsingh #mentorcamp Demo Day Videos ⟹ 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
  38. 38. @paulsingh #mentorcamp dashboard.io
  39. 39. @paulsingh #mentorcamp YOUR KEY TAKEAWAYS Focus on Traction. Learn to Communicate and Inspire.
  40. 40. @paulsingh ALSO... #mentorcamp 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: dashboard.io
  41. 41. @paulsingh #mentorcamp THE BUSINESS OF (TECH) INVESTING THE RISE OF THE ANGELS (AND THE ENTREPRENEURS) LEARN MORE: bit.ly/dashboard-weekly @paulsingh・paul@dashboard.io・dashboard.io
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