Tim Draper, Fast Pitch Forum & Technology Showcase

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Tim Draper, Founder, Draper Fisher Jurvetson, keynote address at the 2009 WTIA Fast Pitch Forum & Technology Showcase event.

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  • Tim Draper, Fast Pitch Forum & Technology Showcase

    1. 1. WTIA 2009—Tim Draper November 2008
    2. 2. Economic Nuke
    3. 3. Nuclear Winter
    4. 4. The press painted a grim picture Investors are looking for direction Real estate values have plummeted Stock markets are down Lending is frozen Companies are laying off employees Consumer and capital spending have slowed
    5. 5. Monopolies block liquidity: Government Regulations—Sarbox, The 40 Act, 409A Bulge Bracket Distribution Controls—Syndication, Sales, Trading, Investment Banking Nasdaq/NYSE Restrictions—Acceptance Hurdles, Fees Big 3 Standards—FAS 157, FAS 141, FASB Dinosaur Technologies—Stock transfers, Bloomberg
    6. 6. Liquidity Crisis
    7. 7. <ul><li>Liquidity Problems </li></ul>
    8. 8. Don’t panic
    9. 9. Don’t cling to the past
    10. 10. Crisis or Opportunity
    11. 11. New game
    12. 12. With great power… It is all up to you!!!!
    13. 13. <ul><li>Best time ever to start a business: </li></ul><ul><li>People need jobs </li></ul><ul><li>Existing companies are reeling </li></ul><ul><li>Fewer start-up competitors </li></ul><ul><li>Newer technologies </li></ul><ul><li>You are young!!!!!!! </li></ul>
    14. 14. <ul><li>Companies that started in recessions or depressions </li></ul>
    15. 15. <ul><li>Best time ever to invest venture capital money in US </li></ul><ul><li>Recession/Depression </li></ul><ul><li>Low valuations </li></ul><ul><li>Liquidity solutions </li></ul><ul><li>Less competition for VC’s, entrepreneurs </li></ul><ul><li>New technologies </li></ul>
    16. 16. Inventions in the past 50 years COMPUTERS EMAIL FAX FIBER OPTICS BIOTECH SMART PHONES NANOTECH PHOTOCOPIER SEARCH ENGINES SPACE TRAVEL JETS CREDIT CARDS ICs MICROWAVE NUCLEAR POWER THE PILL DVRs VOICEMAIL SATELLITES INTERNET WEB BROWSERS MRIs DIGITAL CAMERAS CELL PHONES
    17. 17. Future possibilities ABUNDANT CHEAP WATER NON-INVASIVE SURGERY ENERGY EFFICIENT BUILDINGS LONG-LASTING BATTERIES INTERACTIVE EDUCATION CLOUD COMPUTING IMMERSIVE 3-D ENTERTAINMENT FOOD DROP CURES FOR CANCER, AIDS & MALARIA GENETIC DISEASE PREDICTION NEAR INFINITE ENERGY SUPPLY NEAR-THOUGHT COMMUNICATIONS NEW LIFE FORMS FOOD SUPPLY CURE FOR HEART DISEASE SELF-NAVIGATING ELECTRIC CARS
    18. 18. One thing has not changed…. Innovation is exponential and relentless
    19. 19. Companies can post their profile and control access Investors can peruse, connect with companies buy and sell Shares Matching platform connects buyers and sellers of shares Springboard to an IPO
    20. 20. Longer term Xchange will allow companies to raise money through an XPO Xchange will allow users to trade shares through the system Springboard to an IPO
    21. 21. Liquidity:
    22. 22. <ul><li>The Cost of Communism </li></ul><ul><li>GDP Per Capita Normalized </li></ul>
    23. 23. <ul><li>The Cost of Communism </li></ul><ul><li>Growth Rates GDP </li></ul>
    24. 24. <ul><li>The Sucking Sound of Socialism </li></ul>
    25. 25. <ul><li>US government spending damps GDP growth </li></ul>
    26. 26. <ul><li>The Sucking Sound of Socialism </li></ul>Good Words Opportunity Earnings Business Solution Let losers die Freedom Free Trade Bad Words Entitlement Right Government Intervention Bailout Regulation Patriotism>Protection>Poverty
    27. 27. The Importance of Liquidity: Human flexibility Speed of gratification Fewer desperate buyers/sellers The deal.
    28. 28. The Deal
    29. 34. Free Trade!!!!!!!!!
    30. 36. Without China: No Semiconductors
    31. 37. Without China: No Flat Screens
    32. 38. Without China: No Memory
    33. 39. Without Computers: No Software
    34. 40. Without Software: No New Media
    35. 42. <ul><li>Zeroed Business Models </li></ul>Company Amazon Parametric Hotmail, Skype Overture, Google, Baidu Eliminated Inventory and A/R Excess Engineering Costs Marketing Expense Ad Sales Expense
    36. 43. <ul><li>Revolutions </li></ul>Company Amazon Hotmail Skype Google, Baidu EBay Renovated The Book Store The Post Office The Telephone Company The Broadcasters The Trading Post
    37. 44. <ul><li>Problem Solvers </li></ul>Company Reva, Tesla Enernoc, Solar City AthenaHealth, QuickHealth Skype, Hotmail, Meebo Glam, KyteTV Graspr, Skygrid, YeePay, Mchk Wigix Mginger, ContextWeb Solving Transportation Problem Energy Problem Medical Problem Global Peace Problem Media Control Problem Education Problem Financial Problem Ebay Problem Spam Problem
    38. 45. Never forget: Entrepreneurs are heroes. Create new jobs Build value from nothing Make lives better Rebuild the economy
    39. 46. The Riskmaster (all rights reserved) (Lyrics by Tim Draper) Invested all his mattress money Divorced his Prom Queen hometown honey Scraping up his alimony Friends think he’s a little “funny”
    40. 47. Needs a “world class CEO.” Just another million or so Get him to some real cash flow So tears and sweat can IPO
    41. 48. For 15 years he’s been out gunned Bankers demanding blood refund Company’s looking Moribund Even Draper will not fund!
    42. 49. Chorus: He is the Riskmaster Lives fast drives faster Skates on the edge of disaster He is the Riskmaster
    43. 50. He’s got a mission Company vision An artist’s ambition Gut intuition Fearless and free employee No guarantee for the corporate escapee
    44. 51. Team fights on against the trend Had to lay off his best friend Called a “recession” seems like “depression.” Chapter seven. Is this the end?
    45. 52. But then a salesman shouts, “We got it!” The company’s gonna show a profit To think the papers rang, “quixotic” The sky has opened astronautic.
    46. 53. Chorus: He is the Riskmaster Lives fast drives faster Skates on the edge of disaster He is the Riskmaster
    47. 54. He is on top, on top of the world At last they see it. Vision unfurled! Cashflow landslide! Now everybody wants a piece of his hide. Court wants him tried. Press wants him fried. Anyone this rich must have lied.
    48. 55. Chorus: He is the Riskmaster Lives fast drives faster Skates on the edge of disaster He is the Riskmaster
    49. 56. Thank You <ul><ul><li>Tim Draper </li></ul></ul><ul><ul><li>Draper Fisher Jurvetson </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>www.TheRiskmaster.com </li></ul></ul>
    50. 57. To the rescue: shares post

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