Slides from my talk at Unplugged 2012.

1. @paulsingh #unpluggd
THE RISE OF THE ANGELS
(AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com

2. @paulsingh #unpluggd
GETTING TO KNOW
500 STARTUPS BECAUSE WE’RE KIND OF A BIG DEAL
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com

3. @paulsingh #unpluggd

4. @paulsingh #unpluggd
EARLY STAGE
STARTUPS
HAVE CHANGED

5. @paulsingh #unpluggd
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
STARTUP COSTS
LOWER THAN EVERBUT SCALING STILL COSTS MONEY

6. @paulsingh #unpluggd
WEB GETS BIGGER.
WORLD GETS SMALLER.

7. @paulsingh #unpluggd
TRACTION IS THE NEW
INTELLECTUAL PROPERTY
PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

8. @paulsingh #unpluggd
CAPITAL
INCREASINGLY
COMMODITIZED
RISE OF THE ANGELS, YO!

9. @paulsingh #unpluggd
NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!

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

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

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

13. @paulsingh #unpluggd
WALL STREET
BEAT US TO IT

14. @paulsingh #unpluggd

15. @paulsingh #unpluggd
“ UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE ANALYSIS
POINTS TO AN
INTERESTING CADENCE
INTRA-QUARTER AND
POTENTIAL UPSIDE TO
OUR VIEW.

16. @paulsingh #unpluggd

17. @paulsingh #unpluggd
“
TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHING’S TANK
FARMS ON AN OIL
INDUSTRY SPYING
MISSION.

18. @paulsingh #unpluggd
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.

19. @paulsingh #unpluggd
IT TURNS OUT,
WE CAN DO IT, TOO SURPRISE!

20. @paulsingh #unpluggd

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

22. @paulsingh #unpluggd
WE CAN DO IT, TOO.

23. @paulsingh #unpluggd
WE CAN DO IT, TOO.

24. @paulsingh #unpluggd
WE’RE DOING IT, TOO.

25. @paulsingh #unpluggd

26. @paulsingh #unpluggd
“ VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.
-- NAVAL RAVIKANT (@naval)

27. @paulsingh #unpluggd
EARLY STAGE VC
IS CHANGING
HAS CHANGED

28. @paulsingh #unpluggd
STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED

29. @paulsingh #unpluggd
UNBUNDLING OF
ADVICE, CONTROL
AND MONEY

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

31. @paulsingh #unpluggd
(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

32. @paulsingh #unpluggd
(NEW) FINANCINGS

33. @paulsingh #unpluggd
(NEW) FINANCINGS
Standardized terms

34. @paulsingh #unpluggd
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads

35. @paulsingh #unpluggd
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds

36. @paulsingh #unpluggd
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float

37. @paulsingh #unpluggd
(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

38. @paulsingh #unpluggd
(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

39. @paulsingh #unpluggd
“ BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
INFORMATION.
-- MICHAEL LEWIS

40. @paulsingh #unpluggd
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

41. @paulsingh #unpluggd
YOUR KEY TAKEAWAYS

42. @paulsingh #unpluggd
YOUR KEY TAKEAWAYS
Focus on Traction.

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

44. @paulsingh #unpluggd
THE RISE OF THE ANGELS
(AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com