Successfully reported this slideshow.
Your SlideShare is downloading. ×

Some thoughts on the European Venture scene

Ad

Some thoughts on the European Venture scene
Saul Klein
saul@indexventures.com
Web2Expo – Berlin
October 22, 2008

Ad

The weather looks pretty terrible right now

Ad

No wonder Jason was getting depressed

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Ad

Loading in …3
×

Check these out next

1 of 34 Ad
1 of 34 Ad
Advertisement

More Related Content

Advertisement
Advertisement

Some thoughts on the European Venture scene

  1. 1. Some thoughts on the European Venture scene Saul Klein saul@indexventures.com Web2Expo – Berlin October 22, 2008
  2. 2. The weather looks pretty terrible right now
  3. 3. No wonder Jason was getting depressed
  4. 4. The Valley is seriously downbeat
  5. 5. Though Dave McClure did shout out a “get over it”
  6. 6. Fact is start ups are really tough
  7. 7. You have no customers
  8. 8. No money
  9. 9. You and your team are fighting an imaginary war
  10. 10. Armed just with some big ideas
  11. 11. But hey, we’ve fallen from greater heights
  12. 12. Founded IPOVC Some of the greats started in depressions
  13. 13. Founded IPO VC >> ? Many major winners started during and after the last bubble
  14. 14. Now the Internet is nearly 6x the size of 2001 Hosts
  15. 15. How we spend our time online has shifted radically
  16. 16. Big 3 Social 14 Minutes 159 bn 141 bn Mins/Visitor 5 13 Page Views 216 bn 296 bn Pages/Visitor 125 583 This shift will have big, long term repercussions
  17. 17. We’re living in a new technical world order
  18. 18. Firefox has 42% market share!!!
  19. 19. We now have substantial shared “public” resources
  20. 20. New platforms are changing infrastructure and distribution costs
  21. 21. Free resources exist to support and educate start-ups 8 hubs 80+ cities
  22. 22. Boulder Leeds Utrecht Helsinki Hamburg Paris Belgrade
  23. 23. We will almost certainly face severe and sustained recessions - 61% YTD - 63% YTD - 49% YTD - 40% YTD - 62% YTD - 56% YTD
  24. 24. But where the Internet is used has changed dramatically – its not just the US anymore
  25. 25. There is still a lot of capital to invest in Europe
  26. 26. Capital will look to back people who understand the new reality
  27. 27. Angels will retreat
  28. 28. Raise enough capital. Stay Strong. Get Paying Customers. Cut costs. Get to break even Bootstrap Like Crazy. Focus. Don’t panic. Make products people want.
  29. 29. Whatever works for you use it. Good luck
  30. 30. Appendix Some interesting data….
  31. 31. Latest figures show European investment is going up
  32. 32. Europe already had three $ bn investment hubs
  33. 33. Why break-even and capital are important

Editor's Notes

  • http://calacanis.com/2008/09/29/the-startup-depression/
  • http://www.slideshare.net/eldon/sequoia-capital-on-startups-and-the-economic-downturn-presentation?type=powerpoint
  • http://500hats.typepad.com/500blogs/2008/10/fear-is-the-min.html
  • Serious depressions in early 80s
  • Web is huge and growing
  • This is an incredibly international group – which is a key concept in the new world
  • Advertisers ultimately pay for engagement – not just reach. The social services have both – they need to figure out how to scale the advertising model. This will come – it has to for everyone’s sake. The consequence is that they (and IM) are the new portals – Yahoo (as we can already see) is toast or needs to be reinvented.
  • Open source has taken over the technical world. Maybe the mixture of open and control, like the Chinese model works – they Have annual GDP growth over 10%, even bad estimates are 7-8% while the “developed” world is staring down 0-2% at best.
  • This was impossible 7 years ago – when Netscape sold to AOL it was game over in the browser war. Watch Chrome take 20%+ by 2010 
  • Knowledge. Commerce. Now images. This is a profound shift and changes they way we can share knowledge and do business.
  • The cloud is only just beginning.
  • What a time to be an entrepreneur – so much knowledge out there and so much support
    http://www.seedcamp.com/
    http://opencoffee.ning.com/
    http://www.paulgraham.com/badeconomy.html
    http://www.techstars.org/
  • Peers in over 80 cities aorund the world
  • But times are really bad – and could be for many years. The trailing indicators – steel, gold, financial services, energy, tech/media and telecoms are all very negative right now. People are spoke. Some major economies will go into depression.
  • Web is huge and no longer American…. It is global. Look to China, Russia, India (mobile web), Brazil, Poland, Japan, Korea, Turkey etc to really start becoming even more major as web forces. Of course the UK, France and Germany are already multi-billion $$ web markets and Spain is emerging as a serious force and gateway to Latin America. This is the most profound impact – that I think the US (and the Valley) does not fully get – the web is global, and so will innovation.
  • And elsewhere – VCs have plenty to deploy
  • If you get this new world and know how to take advantage – you have a great shot at building a killer company. Think different
  • Capital will concentrate – big funds will get bigger, small ones may disappear and only professional money will stay in this market

×