@paulsingh

#

THE EVOLUTION OF THE
PRIVATE MARKET
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh
@paulsingh

#

500 STARTUPS

@paulsingh
@paulsingh

#
@paulsingh

#

A (R)EVOLUTION IN THINKING
@paulsingh

#

EARLY STAGE
STARTUPS
HAVE CHANGED
@paulsingh

#

CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING

STARTUP COSTS
LOWER THAN EVER
BUT SCALING STILL COSTS M...
@paulsingh

#

WEB GETS BIGGER.
WORLD GETS SMALLER.
@paulsingh

#

TRACTION IS THE NEW
INTELLECTUAL PROPERTY
PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE....
@paulsingh

#

CAPITAL
INCREASINGLY
COMMODITIZED
RISE OF THE ANGELS, YO!
@paulsingh

#

NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!
@paulsingh

#

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

#

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

#

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

#

WALL STREET
BEAT US TO IT
@paulsingh

#
@paulsingh

#

“

UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE
POINTS TO AN
INTERESTING CADENCE
INTRA-QUARTER AND
POTEN...
@paulsingh

#
@paulsingh

#

“

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

#

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

#

IT TURNS OUT,

WE CAN DO IT, TOO
SURPRISE!
@paulsingh

#

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

#

WE CAN DO IT, TOO.
@paulsingh

#

WE CAN DO IT, TOO.
@paulsingh

#

WE’RE DOING IT, TOO.
@paulsingh

#
@paulsingh

#

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

#

dashboard.io
@paulsingh

#

dashboard.io
@paulsingh

#

EARLY STAGE VC
IS CHANGING
HAS CHANGED
@paulsingh

#

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

#

UNBUNDLING OF
ADVICE, CONTROL
AND MONEY
@paulsingh

#

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

#
@paulsingh

#

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

#

dashboard.io
@paulsingh

#

(500) CHECKLIST
Product solves a problem for a specific target customer	

Capital-efficient businesses - oper...
@paulsingh

#

(NEW) FINANCINGS
Standardized terms	

No fixed amounts, no closings, no leads	

Continuous, not discrete rou...
@paulsingh

#

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

#

RISK AND
UNCERTAINTY ARE
NOT THE SAME
@paulsingh

#

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

#

“

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

#

THE PRIVATE MARKET IS
BECOMING MORE
ACCESSIBLE.
@paulsingh

#

THE PRIVATE MARKET IS
BECOMING MORE
TRANSPARENT.
@paulsingh

#

Demo Day Videos ⟹ livestream.com/500startups	

Sample Pitch Decks ⟹ slideshare.net/500startups	

Venture Ca...
@paulsingh

#

YOUR KEY TAKEAWAYS
Focus on Traction.	

Learn to Communicate and Inspire.
@paulsingh

ALSO...

#

Distribution > Product	

Tactics > Strategy	

Notability > Credibility	

Get on AngelList	

Raise ...
@paulsingh

#

THE EVOLUTION OF THE
PRIVATE MARKET
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
LEARN MORE:
bit.ly/dashb...
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The Evolution of the Private Market - TiEConCanada

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Slides for my talk at TiEConCanada in Ottawa -- Oct 2013.

Published in: Economy & Finance, Business

Transcript of "The Evolution of the Private Market - TiEConCanada"

  1. 1. @paulsingh # THE EVOLUTION OF THE PRIVATE MARKET THE RISE OF THE ANGELS (AND THE ENTREPRENEURS) PAUL SINGH @paulsingh
  2. 2. @paulsingh # 500 STARTUPS @paulsingh
  3. 3. @paulsingh #
  4. 4. @paulsingh # A (R)EVOLUTION IN THINKING
  5. 5. @paulsingh # EARLY STAGE STARTUPS HAVE CHANGED
  6. 6. @paulsingh # CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING STARTUP COSTS LOWER THAN EVER BUT SCALING STILL COSTS MONEY
  7. 7. @paulsingh # WEB GETS BIGGER. WORLD GETS SMALLER.
  8. 8. @paulsingh # TRACTION IS THE NEW INTELLECTUAL PROPERTY PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE. NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
  9. 9. @paulsingh # CAPITAL INCREASINGLY COMMODITIZED RISE OF THE ANGELS, YO!
  10. 10. @paulsingh # NEW REALITY: MONEY FOLLOWS FOUNDERS RISE OF THE ENTREPRENEURS, YO!
  11. 11. @paulsingh # SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  12. 12. @paulsingh # SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  13. 13. @paulsingh # TRANSPARENCY IS SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  14. 14. @paulsingh # WALL STREET BEAT US TO IT
  15. 15. @paulsingh #
  16. 16. @paulsingh # “ UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
  17. 17. @paulsingh #
  18. 18. @paulsingh # “ TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN INDUSTRY SPYING MISSION
  19. 19. @paulsingh # 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.
  20. 20. @paulsingh # IT TURNS OUT, WE CAN DO IT, TOO SURPRISE!
  21. 21. @paulsingh # + “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
  22. 22. @paulsingh # WE CAN DO IT, TOO.
  23. 23. @paulsingh # WE CAN DO IT, TOO.
  24. 24. @paulsingh # WE’RE DOING IT, TOO.
  25. 25. @paulsingh #
  26. 26. @paulsingh # “ VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY. -- NAVAL RAVIKANT (@naval)
  27. 27. @paulsingh # dashboard.io
  28. 28. @paulsingh # dashboard.io
  29. 29. @paulsingh # EARLY STAGE VC IS CHANGING HAS CHANGED
  30. 30. @paulsingh # STATE OF THE ART IN EARLY STAGE INVESTING IS NOT VERY SOPHISTICATED
  31. 31. @paulsingh # UNBUNDLING OF ADVICE, CONTROL AND MONEY
  32. 32. @paulsingh # USED TO BE ABOUT CAPITAL, DEALFLOW AND JUDGEMENT TODAY, IT’S ABOUT ACCESS.
  33. 33. @paulsingh #
  34. 34. @paulsingh # INCREASINGLY ABOUT DEAL SELECTION, NOT DEAL SOURCING. IT’S 2013, YO.
  35. 35. @paulsingh # dashboard.io
  36. 36. @paulsingh # (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
  37. 37. @paulsingh # (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
  38. 38. @paulsingh # THE FIRST CHECK SHOULD BE SMALL AND FAST DOUBLE DOWN HEAVY IF THE COMPANY SURVIVES INTO THE NEXT ROUND
  39. 39. @paulsingh # RISK AND UNCERTAINTY ARE NOT THE SAME
  40. 40. @paulsingh # THE BUSINESS OF INVESTING IS ABOUT CHOOSING THE LEAST-WORST OPPORTUNITY NOT TRYING TO PREDICT THE NEXT GOOGLE, FACEBOOK OR LINKEDIN.
  41. 41. @paulsingh # “ BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION. -- MICHAEL LEWIS
  42. 42. @paulsingh # THE PRIVATE MARKET IS BECOMING MORE ACCESSIBLE.
  43. 43. @paulsingh # THE PRIVATE MARKET IS BECOMING MORE TRANSPARENT.
  44. 44. @paulsingh # 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
  45. 45. @paulsingh # YOUR KEY TAKEAWAYS Focus on Traction. Learn to Communicate and Inspire.
  46. 46. @paulsingh 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: dashboard.io
  47. 47. @paulsingh # THE EVOLUTION OF THE PRIVATE MARKET THE RISE OF THE ANGELS (AND THE ENTREPRENEURS) LEARN MORE: bit.ly/dashboard-weekly @paulsingh
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