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Logan Bartlett - Mattermark Webinar 4.30.2015

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Logan Bartlett - Mattermark Webinar 4.30.2015

  1. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 2 Agenda • Who Am I? • State of the Start-Up Ecosystem • How Have VCs Found Deals Historically? • How has Data Impacted Venture Sourcing? • Trends for 2015 • Advice for Founders • Q&A
  2. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 3 Who Am I? • Investor at Battery Ventures focused on B2B software investing • Battery typically looks to write checks between $8 and $25M • Active with our firm’s investments in Coupa, Glassdoor and Yesware • www.loganvc.com
  3. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 4 State of the Start-Up Ecosystem
  4. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 1. Cost of starting a company is decreasing 5 Source: Mark Suster – Upfront Ventures
  5. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 2. Proliferation of micro vc and microbrews 6 Source: CB Insights
  6. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 3. Smart minds aren’t running to Wall Street 7 Source: Zero Hedge
  7. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 4. Market sizes are expanding 8 Source: Packetworks
  8. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 5. Distribution is enhancing market velocity 9
  9. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 6. Companies are staying private longer 10 Source: Mark Suster – Upfront Ventures
  10. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 7. Public money is playing in private markets 11 Source: CB Insights
  11. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 12 So…….. what??
  12. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 13
  13. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Valuations go up… 14 Source: Pitchbook
  14. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Round sizes go up… 15 Source: Tom Tunguz - Redpoint
  15. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Unicorns go up… 16 Source: CB Insights
  16. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … And winners take all 17 Source: Play Bigger Advisors, LLC. #1 in Market, 76% All Others in Market, 24%
  17. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 18 Entrepreneurs should be all like….
  18. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 19 Because great companies are started in all markets 0 1,000 2,000 3,000 4,000 5,000 6,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nasdaq For a full list of all Battery investments and exits, please visit www.battery.com Nasdaq
  19. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 20 You just need to keep building value …
  20. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 21 … and growing up and to the right
  21. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 How Have VCs Found Deals Historically? 22
  22. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Method 1: Smile and dial 23
  23. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Method 2: Networking and referrals 24
  24. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 How has Data Impacted Venture Sourcing? 25
  25. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 The Godfathers: LinkedIn and TechCrunch 26 • LinkedIn provided new insights into both companies and employees • Crunchbase crowdsourced funding information and provided extensive coverage on the start-up ecosystem
  26. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Commercialization for the have nots 27 • Companies like Facebook, Netflix, LinkedIn, Twitter, AirBnB etc. built tools to handle their scale that were later commercialized • Mattermark took practices that were done at the top venture firms and institutionalized it for the masses… . … and made it searchable by investor, stage, business model etc.
  27. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Tools have proliferated 28 Company-Focused People-Focused For a full list of all Battery investments and exits, please visit www.battery.com
  28. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 29 So…….. what??
  29. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Targeted outreach 30
  30. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Trends for 2015 31
  31. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 More dinosaurs gonna die 32 Bubble, My Ass: Some Unicorns Might Be Overvalued, But All Dinosaurs Gonna Die. By Dave McClure
  32. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 More security breaches are coming 33
  33. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Advice for Founders 34
  34. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Stay lean and talk to all potential customer… 35
  35. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … and diligence VCs before reaching out 36
  36. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Don’t optimize for valuation early … 37
  37. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … because it’s a long journey 38
  38. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … but a fun one 39
  39. © 2015 ALL RIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Q&A 40

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