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Startups by numbers - Jeff Clavier
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Startups by numbers - Jeff Clavier

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Transcript

  • 1. Startup by Numbers
    Jeff Clavier
    Managing Partner, SoftTech VC
    Startup by Numbers
    7/14/11
  • 2. Short Intro
    Jeff Clavier (@jeff)
    French
    C/C++ & Distributed Computing Hacking
    Financial Services startup in 1989
    “Traditional” VC in the Valley since 2000
    Web 2.0 Investing
    Angel since ’04
    Super Angel since ‘07
    Micro VC since ‘11
    SoftTech VC (@softtechvc)
    7 years old
    3 funds (‘04, ‘07, ‘11)
    104 investments
    18 exits
    50+ follow-on rounds
    > $600M raised
    Deploying Fund III
    $35M
    16 deals
    Startup by Numbers
    7/14/11
  • 3. A few SoftTech exits
    7/14/11
    Startup by Numbers
    SoftTech VC I
    SoftTech VC II
    Acquired by
    Acquired by
    Acquired by
    Acquired by
    Acquired by
    Acquired by
    Dec 05
    Aug 06
    Dec 06
    May 10
    Dec 09
    May 09
    Acquired by
    Acquired by
    Acquired by
    Acquired by
    Acquired by
    Aug 07
    Aug 07
    Dec 09
    July 10
    July 10
    Acquired by
    Sept 10
    Acquired by
    July 10
    Acquired by
    Dec 10
    Acquired by
    Apr 11
  • 4. 7/14/11
    Startup by Numbers
    SoftTech VC III –(Partial) Deals
    Social Media, Real-time Web & Commerce
    Gaming
    “New” Areas
    Mobile Services
    & Infrastructure
    Search, Local & Monetization
    (Cloud) Services &
    Infrastructure Services
  • 5. Startup by Numbers
    Startup by Numbers
    WTF?
    7/14/11
  • 6. Example
    Startup by Numbers
    7/14/11
  • 7. Fair Warning
    All this BS varies vastly from one startup to the next
    Experience based on a sample of a few thousand Silicon Valley consumer internet startups
    My Anti-Portfolio will show you how much of a total idiot I am
    Your Canadian mileage may vary if you follow these advice
    Startup by Numbers
    7/14/11
  • 8. Example
    Startup by Numbers
    7/14/11
  • 9. How Many Co-Founders?
    Startup by Numbers
    It Depends!
    7/14/11
  • 14. The Awesome Combo
    Startup by Numbers
    Ariel Seidman, CEO
    D = Distribution
    Can Market, Sell, Lead
    Matt Crampton, CTO
    D = Development
    Can Build, Scale, Fix
    David Watanabe
    D = Design
    Awesome UI/UX Guru
    D
    D
    D
    7/14/11
  • 15. How Many Co-Founders?
    A: ≥ 1 and ≤ 4
    Need to cover the 3 D’s
    And then some
    Co-founders join pre-funding, afterwards they are employees
    Equity is not always equally distributed
    Startup by Numbers
    7/14/11
  • 20. How Do I Evaluate Startups?
    Startup by Numbers
    7/14/11
  • 21. How Do I Evaluate Startups?
    Startup by Numbers
    7/14/11
  • 22. Introducing the 3-asses rule
    Startup by Numbers
    A Smart-ass team
    Building
    A Kick-ass Product
    In a Big-ass Market
    7/14/11
  • 23. The 3-asses rule
    Startup by Numbers
    7/14/11
  • 24. I could stop there
    • The 3 D’s
    • 25. The 3 Asses Rule
    Startup by Numbers
    7/14/11
  • 26. How Much Money to Raise?
    7/14/11
    Startup by Numbers
    How much do you
    want to burn?
  • 27. How Much Money to Raise?
    Funding Phase
    Bootstrap: 0 - $100K+
    As long as you can
    Seed: $500K - $1.5M
    12-18 mths
    Series A: $3-$5M
    2 years
    Series B: $8-$15M
    Startup by Numbers
    7/14/11
  • 28. How Much Money to Raise?
    Funding Phase
    Bootstrap: 0 - $100K+
    As long as you can
    Seed: $500K - $1.5M
    12-18 mths
    Series A: $3-$5M
    2 years
    Series B: $8-$15M
    Expenses
    Back-end, Offices
    Few small salaries
    All-in: $30 to $50K/mth
    Before PMF < $30K
    People, Marketing, Infra
    Startup by Numbers
    7/14/11
  • 29. At What Valuation(s)?
    Startup by Numbers
    7/14/11
  • 30. At Which Founder Dilution?
    Bootstrap
    Incubators: 5% to 10%
    Seed
    Option Pool: 10 to 20%
    Round: 20 to 25%
    Series A
    Round: 20 to 25%
    Startup by Numbers
    7/14/11
  • 31. How Much Pre-seed Traction?
    • Alpha release of product/service
    • 32. Feedback from early users/customers
    • 33. Key metrics/dashboard
    • 34. Unit Economics
    • 35. Comparables: LTV, RPV,rDAU
    • 36. Rough acquisition costs per channel (SEM, Facebook, PPI,…)
    7/14/11
    Startup by Numbers
  • 37. How Many ___ to Get Funding
    Startup by Numbers
    7/14/11
  • 38. How Many Slides in My Deck
    10-12 main slides
    0-10 backups
    Be ready to go linear or jump back/forth
    Don’t read/engage
    Key points:
    Which Problem
    Why
    Why you
    Why now
    How
    Who else
    How much/long
    What for
    7/14/11
    Startup by Numbers
  • 39. How ManySeed Investors?
    Find a (strong) lead
    Expertise, Passion, Time, Rollodex
    Syndication Footprint
    Typical seed round (5 to 15 in cap table)
    One to Three uVCs
    One traditional VC if you really want to
    Helpful angels
    Bonus tip: Due your own Due Diligence FFS!
    7/14/11
    Startup by Numbers
  • 40. How Many Funds to Talk To?
    Do your homework:
    Fund/Angel targets
    No competitors!
    For each target, find trusted connection
    You’ll need: intro paragraph, investor deck, reference list
    Ask for help: friends, mentors, former colleagues, CEOs
    My Answer:
    Pre-Marketing: 5
    Fund Raising: rolling 10, out of your list of 20/25 suspects
    Startup by Numbers
    7/14/11
  • 41. How Much Time to Raise?
    Startup by Numbers
    7/14/11
  • 42. How Much does Raising Cost?
    Seed:
    $5K for incorporation and convertible note
    $20/30K for equity round
    Other rounds:
    $30/50K and up
    ALWAYS USE A FUCKING LAWYER
    FIXING AN EARLY STUPID MISTAKE MAY COST MILLIONS
    Startup by Numbers
    7/14/11
  • 43. How Do I Measure Progress?
    Define key metrics
    Establish goals
    Implement dashboard
    Make one or two key metrics available to everyone in the company
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Key: Cohort Analysis
    Startup by Numbers
    7/14/11
  • 44. How Do I See It’s Not Working?
    Startup by Numbers
    7/14/11
  • 45. How Do I Know It Won’t Work?
    Startup by Numbers
    7/14/11
  • 46. Thank You!
    7/14/11
    Startup by Numbers