SlideShare a Scribd company logo

Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets

slides from my talk at #TechWadi Forum (San Francisco, January 2017)

1 of 28
Download to read offline
The New Colossus
Not like the brazen giant of Greek fame,
With conquering limbs astride from land to land;
Here at our sea-washed, sunset gates shall stand
A mighty woman with a torch, whose flame
Is the imprisoned lightning, and her name
Mother of Exiles. From her beacon-hand
Glows world-wide welcome;
her mild eyes command
The air-bridged harbor that twin cities frame.
"Keep ancient lands, your storied pomp!"
cries she with silent lips.
"Give me your tired, your poor,
Your huddled masses
yearning to breathe free,
The wretched refuse
of your teeming shore.
Send these, the homeless,
tempest-tost to me,
I lift my lamp beside the golden door!”
- Emma Lazarus
Nov 2, 1883
Stand for Something… or You Stand for Nothing.
@DaveMcClure
@500Startups http://500.co
TechWadi Forum - Jan 2017
Farming Unicorns
Building Startup &
Investor Ecosystems
Dave McClure

Founding Partner, 500 Startups
00’s & 10’s:
• VC: Founders Fund, Facebook fbFund, 500 Startups
• Angel: Mashery, Mint.com, SlideShare, Twilio, Wildfire, SendGrid
• Marketing: PayPal, Simply Hired, Mint.com, O’Reilly
80’s & 90’s:
• Entrepreneur: Aslan Computing (acq’d by Servinet/Panurgy)
• Developer: Windows / SQL DB consultant (Intel, MSFT)
• Engineer: Johns Hopkins‘88, BS Eng / Applied Math
• What is 500?
– $300M global seed fund + startup accelerator
– 150 people / 25 languages / 20 countries
– 1600+ Companies / 3000+ Founders / 200+ Mentors
– Investment, Accelerator, Distro, Marketing, Events, Education
– Community + Content + Conferences
• 1600+ Co’s / 60+ Countries
– Twilio (NYSE: TWLO)
– Credit Karma
– Grab (aka GrabTaxi)
– Wildfire (acq GOOG, $350M)
– MakerBot (acq SSYS, $400M)
– Viki (acq Rakuten, $200M)
– Behance (acq Adobe, $150M)
– Simple (acq BBVA, $117M)
– Sunrise (acq MSFT, $100M)
– Unifonic
– uTurn
– Kharabeesh
– Fetchr
– Wuzzuf
500 Startups

Global Seed Fund & Startup Accelerator
500 Startups: MENA Portfolio
Dinosaurs vs. Cockroaches

LEAN Startup: Simpler, Faster, Cheaper, Smarter
1996
”Big, Fat, Dinosaur Startup”
• Sun Servers
• Oracle DB
• Exodus Hosting
• 12-24mo dev cycle
• 6-18mo sales cycle
• <100M people online
• $1-2M seed round
• $3-5M Series A
• Sand Hill Road crawl
2016
”Lean, Little, Cockroach Startup”
• AWS, Google, PayPal, FB, TW
• Cloud + Open Source SW
• Lean Startup / Startup Wknd
• 3-90d dev cycle
• SaaS / online sales
• >3B people online
• <$100K incub + <$1M seed
• $1-3M Series A
• Angel List global visibility

Recommended

Changes in Tech & Venture Capital (Istanbul, Nov 2013)
Changes in Tech & Venture Capital (Istanbul, Nov 2013)Changes in Tech & Venture Capital (Istanbul, Nov 2013)
Changes in Tech & Venture Capital (Istanbul, Nov 2013)Dave McClure
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONGDave McClure
 
Building Startup Ecosytems & Investing in Tech Startups
Building Startup Ecosytems & Investing in Tech StartupsBuilding Startup Ecosytems & Investing in Tech Startups
Building Startup Ecosytems & Investing in Tech StartupsDave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Dublin, June 2016)Dave McClure
 
Changes in Venture Capital & Building 500 Startups (Sao Paulo, Sept 2013)
Changes in Venture Capital & Building 500 Startups (Sao Paulo, Sept 2013)Changes in Venture Capital & Building 500 Startups (Sao Paulo, Sept 2013)
Changes in Venture Capital & Building 500 Startups (Sao Paulo, Sept 2013)Dave McClure
 
The Lean Investor: Lots of Little Bets (Boston, Dec 2014)
The Lean Investor: Lots of Little Bets (Boston, Dec 2014)The Lean Investor: Lots of Little Bets (Boston, Dec 2014)
The Lean Investor: Lots of Little Bets (Boston, Dec 2014)Dave McClure
 
Venture Capital 2.0 (Delhi, Feb 2016)
Venture Capital 2.0 (Delhi, Feb 2016)Venture Capital 2.0 (Delhi, Feb 2016)
Venture Capital 2.0 (Delhi, Feb 2016)Dave McClure
 

More Related Content

What's hot

Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)Dave McClure
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONGDave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Dave McClure
 
Changes in VC + Building Startup Ecosystems
Changes in VC + Building Startup EcosystemsChanges in VC + Building Startup Ecosystems
Changes in VC + Building Startup EcosystemsDave McClure
 
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
Bringing Silicon Valley to LatAm: Startup Ecosystems & InvestmentDave McClure
 
Hack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup EcosystemsHack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup EcosystemsDave McClure
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCDave McClure
 
Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)Dave McClure
 
10 Challenges for Emerging Market Startup Ecosystems (Cairo)
10 Challenges for Emerging Market Startup Ecosystems (Cairo)10 Challenges for Emerging Market Startup Ecosystems (Cairo)
10 Challenges for Emerging Market Startup Ecosystems (Cairo)Dave McClure
 
Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)Dave McClure
 
Corporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't SuckCorporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't SuckDave McClure
 
Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)Dave McClure
 
500 Startups Update + VC 101 (Investor Education)
500 Startups Update + VC 101 (Investor Education)500 Startups Update + VC 101 (Investor Education)
500 Startups Update + VC 101 (Investor Education)Dave McClure
 
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A CrunchSilicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A CrunchDave McClure
 
Startup Local or Global?
Startup Local or Global?Startup Local or Global?
Startup Local or Global?Dave McClure
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)
Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)
Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)Dave McClure
 
VC 2.0: The Lean Investor (Sept 2010)
VC 2.0: The Lean Investor (Sept 2010)VC 2.0: The Lean Investor (Sept 2010)
VC 2.0: The Lean Investor (Sept 2010)Dave McClure
 
Building Startup Ecosystems (Guadalajara, July 2015)
Building Startup Ecosystems (Guadalajara, July 2015)Building Startup Ecosystems (Guadalajara, July 2015)
Building Startup Ecosystems (Guadalajara, July 2015)Dave McClure
 
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dave McClure
 

What's hot (20)

Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONG
 
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
 
Changes in VC + Building Startup Ecosystems
Changes in VC + Building Startup EcosystemsChanges in VC + Building Startup Ecosystems
Changes in VC + Building Startup Ecosystems
 
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 
Hack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup EcosystemsHack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup Ecosystems
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VC
 
Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)
 
10 Challenges for Emerging Market Startup Ecosystems (Cairo)
10 Challenges for Emerging Market Startup Ecosystems (Cairo)10 Challenges for Emerging Market Startup Ecosystems (Cairo)
10 Challenges for Emerging Market Startup Ecosystems (Cairo)
 
Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)
 
Corporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't SuckCorporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't Suck
 
Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)
 
500 Startups Update + VC 101 (Investor Education)
500 Startups Update + VC 101 (Investor Education)500 Startups Update + VC 101 (Investor Education)
500 Startups Update + VC 101 (Investor Education)
 
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A CrunchSilicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
 
Startup Local or Global?
Startup Local or Global?Startup Local or Global?
Startup Local or Global?
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)
Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)
Changes in Venture Capital + Building 500 Startups (Istanbul, Sept 2013)
 
VC 2.0: The Lean Investor (Sept 2010)
VC 2.0: The Lean Investor (Sept 2010)VC 2.0: The Lean Investor (Sept 2010)
VC 2.0: The Lean Investor (Sept 2010)
 
Building Startup Ecosystems (Guadalajara, July 2015)
Building Startup Ecosystems (Guadalajara, July 2015)Building Startup Ecosystems (Guadalajara, July 2015)
Building Startup Ecosystems (Guadalajara, July 2015)
 
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
 

Viewers also liked

Startup & VC Tech Trends
Startup & VC Tech Trends Startup & VC Tech Trends
Startup & VC Tech Trends Dave McClure
 
Startup Metrics for Pirates
Startup Metrics for PiratesStartup Metrics for Pirates
Startup Metrics for PiratesDave McClure
 
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexFarming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexDave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Dave McClure
 
10 Challenges for Emerging Market Startup Ecosystems
10 Challenges for Emerging Market Startup Ecosystems10 Challenges for Emerging Market Startup Ecosystems
10 Challenges for Emerging Market Startup EcosystemsDave McClure
 
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)Dave McClure
 
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"Dave McClure
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsFarming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsDave McClure
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)Dave McClure
 
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...Dave McClure
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Dave McClure
 
500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)Dave McClure
 
How to Pitch a VC Redesigned
How to Pitch a VC RedesignedHow to Pitch a VC Redesigned
How to Pitch a VC RedesignedSlides That Rock
 
From 500 Startups to 500 VCs
From 500 Startups to 500 VCsFrom 500 Startups to 500 VCs
From 500 Startups to 500 VCsDave McClure
 
What Deep Learning Means for Artificial Intelligence
What Deep Learning Means for Artificial IntelligenceWhat Deep Learning Means for Artificial Intelligence
What Deep Learning Means for Artificial IntelligenceJonathan Mugan
 
2017 1 q conference presentation tgt -final for posting
2017 1 q conference presentation tgt -final for posting2017 1 q conference presentation tgt -final for posting
2017 1 q conference presentation tgt -final for postinginvestor_phillips66
 
Investor Presentation August 2013
Investor Presentation August 2013Investor Presentation August 2013
Investor Presentation August 2013Intact
 
SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011Rand Fishkin
 

Viewers also liked (20)

Startup & VC Tech Trends
Startup & VC Tech Trends Startup & VC Tech Trends
Startup & VC Tech Trends
 
Startup Metrics for Pirates
Startup Metrics for PiratesStartup Metrics for Pirates
Startup Metrics for Pirates
 
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexFarming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
 
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
 
10 Challenges for Emerging Market Startup Ecosystems
10 Challenges for Emerging Market Startup Ecosystems10 Challenges for Emerging Market Startup Ecosystems
10 Challenges for Emerging Market Startup Ecosystems
 
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
 
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
Farming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsFarming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor Ecosystems
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)
 
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)
 
500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)
 
How to Pitch a VC Redesigned
How to Pitch a VC RedesignedHow to Pitch a VC Redesigned
How to Pitch a VC Redesigned
 
From 500 Startups to 500 VCs
From 500 Startups to 500 VCsFrom 500 Startups to 500 VCs
From 500 Startups to 500 VCs
 
What Deep Learning Means for Artificial Intelligence
What Deep Learning Means for Artificial IntelligenceWhat Deep Learning Means for Artificial Intelligence
What Deep Learning Means for Artificial Intelligence
 
2017 1 q conference presentation tgt -final for posting
2017 1 q conference presentation tgt -final for posting2017 1 q conference presentation tgt -final for posting
2017 1 q conference presentation tgt -final for posting
 
Investor Presentation August 2013
Investor Presentation August 2013Investor Presentation August 2013
Investor Presentation August 2013
 
SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011SEOmoz Pitch Deck July 2011
SEOmoz Pitch Deck July 2011
 

Similar to Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets

Building Startup Ecosystems (Denver, Sept 2014)
Building Startup Ecosystems (Denver, Sept 2014)Building Startup Ecosystems (Denver, Sept 2014)
Building Startup Ecosystems (Denver, Sept 2014)Dave McClure
 
Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)Dave McClure
 
Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)Dave McClure
 
Building Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCsBuilding Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCsDave McClure
 
Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)Dave McClure
 
Changes in Venture Capital & Startup Ecosystem (#H2Osummit)
Changes in Venture Capital & Startup Ecosystem (#H2Osummit)Changes in Venture Capital & Startup Ecosystem (#H2Osummit)
Changes in Venture Capital & Startup Ecosystem (#H2Osummit)Dave McClure
 
Building Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech StartupsBuilding Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech StartupsDave McClure
 
Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)Dave McClure
 
Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014Startup Istanbul
 
Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)Dave McClure
 
Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)Dave McClure
 
Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)Dave McClure
 
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
 
Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Dave McClure
 
Building 500 Startups + Changes in VC
Building 500 Startups + Changes in VCBuilding 500 Startups + Changes in VC
Building 500 Startups + Changes in VCDave McClure
 
Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)Dave McClure
 

Similar to Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets (16)

Building Startup Ecosystems (Denver, Sept 2014)
Building Startup Ecosystems (Denver, Sept 2014)Building Startup Ecosystems (Denver, Sept 2014)
Building Startup Ecosystems (Denver, Sept 2014)
 
Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)
 
Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)
 
Building Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCsBuilding Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCs
 
Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)
 
Changes in Venture Capital & Startup Ecosystem (#H2Osummit)
Changes in Venture Capital & Startup Ecosystem (#H2Osummit)Changes in Venture Capital & Startup Ecosystem (#H2Osummit)
Changes in Venture Capital & Startup Ecosystem (#H2Osummit)
 
Building Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech StartupsBuilding Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech Startups
 
Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)
 
Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014
 
Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)
 
Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)
 
Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)
 
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
 
Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)
 
Building 500 Startups + Changes in VC
Building 500 Startups + Changes in VCBuilding 500 Startups + Changes in VC
Building 500 Startups + Changes in VC
 
Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)
 

More from Dave McClure

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelDave McClure
 
The Helpful VC (June 2019)
The Helpful VC (June 2019)The Helpful VC (June 2019)
The Helpful VC (June 2019)Dave McClure
 
Skip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondarySkip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondaryDave McClure
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Dave McClure
 
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsTake a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsDave McClure
 
500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15Dave McClure
 

More from Dave McClure (7)

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio model
 
The Helpful VC (June 2019)
The Helpful VC (June 2019)The Helpful VC (June 2019)
The Helpful VC (June 2019)
 
Skip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondarySkip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital Secondary
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona
 
The Helpful VC
The Helpful VC The Helpful VC
The Helpful VC
 
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsTake a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
 
500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15
 

Recently uploaded

DNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff Huston
DNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff HustonDNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff Huston
DNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff HustonAPNIC
 
Model Jaringan network jaringan komputer.pdf
Model Jaringan network jaringan komputer.pdfModel Jaringan network jaringan komputer.pdf
Model Jaringan network jaringan komputer.pdfgalfinprihardiputra0
 
NANOG 90: 'BGP in 2023' presented by Geoff Huston
NANOG 90: 'BGP in 2023' presented by Geoff HustonNANOG 90: 'BGP in 2023' presented by Geoff Huston
NANOG 90: 'BGP in 2023' presented by Geoff HustonAPNIC
 
Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...
Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...
Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...Prometix Pty Ltd
 
Regulation is Coming - Trusted Media Summit 2023
Regulation is Coming - Trusted Media Summit 2023Regulation is Coming - Trusted Media Summit 2023
Regulation is Coming - Trusted Media Summit 2023Damar Juniarto
 
Biometrics Technology Intresting PPT
Biometrics Technology Intresting PPTBiometrics Technology Intresting PPT
Biometrics Technology Intresting PPTPraveenKumarThota7
 

Recently uploaded (6)

DNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff Huston
DNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff HustonDNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff Huston
DNS-OARC 42: Is the DNS ready for IPv6? presentation by Geoff Huston
 
Model Jaringan network jaringan komputer.pdf
Model Jaringan network jaringan komputer.pdfModel Jaringan network jaringan komputer.pdf
Model Jaringan network jaringan komputer.pdf
 
NANOG 90: 'BGP in 2023' presented by Geoff Huston
NANOG 90: 'BGP in 2023' presented by Geoff HustonNANOG 90: 'BGP in 2023' presented by Geoff Huston
NANOG 90: 'BGP in 2023' presented by Geoff Huston
 
Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...
Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...
Elevate Your Business: Unleashing Collaboration and Efficiency through Expert...
 
Regulation is Coming - Trusted Media Summit 2023
Regulation is Coming - Trusted Media Summit 2023Regulation is Coming - Trusted Media Summit 2023
Regulation is Coming - Trusted Media Summit 2023
 
Biometrics Technology Intresting PPT
Biometrics Technology Intresting PPTBiometrics Technology Intresting PPT
Biometrics Technology Intresting PPT
 

Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets

  • 1. The New Colossus Not like the brazen giant of Greek fame, With conquering limbs astride from land to land; Here at our sea-washed, sunset gates shall stand A mighty woman with a torch, whose flame Is the imprisoned lightning, and her name Mother of Exiles. From her beacon-hand Glows world-wide welcome; her mild eyes command The air-bridged harbor that twin cities frame. "Keep ancient lands, your storied pomp!" cries she with silent lips. "Give me your tired, your poor, Your huddled masses yearning to breathe free, The wretched refuse of your teeming shore. Send these, the homeless, tempest-tost to me, I lift my lamp beside the golden door!” - Emma Lazarus Nov 2, 1883 Stand for Something… or You Stand for Nothing.
  • 2. @DaveMcClure @500Startups http://500.co TechWadi Forum - Jan 2017 Farming Unicorns Building Startup & Investor Ecosystems
  • 3. Dave McClure
 Founding Partner, 500 Startups 00’s & 10’s: • VC: Founders Fund, Facebook fbFund, 500 Startups • Angel: Mashery, Mint.com, SlideShare, Twilio, Wildfire, SendGrid • Marketing: PayPal, Simply Hired, Mint.com, O’Reilly 80’s & 90’s: • Entrepreneur: Aslan Computing (acq’d by Servinet/Panurgy) • Developer: Windows / SQL DB consultant (Intel, MSFT) • Engineer: Johns Hopkins‘88, BS Eng / Applied Math
  • 4. • What is 500? – $300M global seed fund + startup accelerator – 150 people / 25 languages / 20 countries – 1600+ Companies / 3000+ Founders / 200+ Mentors – Investment, Accelerator, Distro, Marketing, Events, Education – Community + Content + Conferences • 1600+ Co’s / 60+ Countries – Twilio (NYSE: TWLO) – Credit Karma – Grab (aka GrabTaxi) – Wildfire (acq GOOG, $350M) – MakerBot (acq SSYS, $400M) – Viki (acq Rakuten, $200M) – Behance (acq Adobe, $150M) – Simple (acq BBVA, $117M) – Sunrise (acq MSFT, $100M) – Unifonic – uTurn – Kharabeesh – Fetchr – Wuzzuf 500 Startups
 Global Seed Fund & Startup Accelerator
  • 5. 500 Startups: MENA Portfolio
  • 6. Dinosaurs vs. Cockroaches
 LEAN Startup: Simpler, Faster, Cheaper, Smarter 1996 ”Big, Fat, Dinosaur Startup” • Sun Servers • Oracle DB • Exodus Hosting • 12-24mo dev cycle • 6-18mo sales cycle • <100M people online • $1-2M seed round • $3-5M Series A • Sand Hill Road crawl 2016 ”Lean, Little, Cockroach Startup” • AWS, Google, PayPal, FB, TW • Cloud + Open Source SW • Lean Startup / Startup Wknd • 3-90d dev cycle • SaaS / online sales • >3B people online • <$100K incub + <$1M seed • $1-3M Series A • Angel List global visibility
  • 8. Data from ~600 companies from 500 Startups Funds I + II (2010 - 2013 cohorts) $1-10M Q: How Many Startups to Get 1 Unicorn? Unicorns 50:1 | Centaurs 20:1
  • 9. 99 VC Problems But a Batch Ain’t 1 9http://bit.ly/99VCProblems
  • 11. If portfolio size = 15 companies/
  • 12. / If portfolio size = 30 companies
  • 13. / If portfolio size = 100 companies
  • 14. Football West Coast Offense Baseball MoneyBall Basketball 3 point revolution Venture Capital 500 Startups “Lots of little bets” 500 Strategy: MoneyBall for Startups Re-inventing a 50-year old sport
  • 15. 500 Strategy: Lots of Little Bets* 1) make lots of little bets on early-stage startups when they’re just getting started 3) wait 5-10 years for returns: -10-20% small exits @1-5X ($5-25M+) -5-10% larger exits @5-20X ($25-250M+) -1-2% unicorns @20-50X+ ($250M-1B+) *See Peter Sims book: “Little Bets” 2) over the next five years, double-down on top 20-30% ~500 co’s @ $100K 1st checks 100+ co’s @ $200-500K 2nd/3rd checks (hope for a few big exits @ $100M-$1B+) (assume high failure rate ~50-80%)
  • 16. Startup Risk Reduction Concept Early Customer Usage Scalable Customer Acquisition [about to be] Profitable Unit Economics Scalable Profitable Business Functional Prototype PRODUCT MARKET REVENUE Exit? When 500 Likes to Invest
  • 17. The Lean Investor Make lots of little bets: • Start with many small “experiments” • Filter out failures + small wins • Double-down on stuff that looks like it’s working • Incubation: $0-100K (“Build & Validate Product”) • Seed: $100K-$1M (“Test & Grow Marketing Channels””) • Venture: $1M-$10M (“Maximize Growth & Revenue”)
  • 18. Investment Stage #1: 
 Product Validation + Customer Usage • Structure – 1-3 founders – $0-$100K investment – Incubator environment: multiple peers, mentors/advisors • Test Functional Prototype / “Minimum Viable Product” (MVP): – Prototype->Alpha, ~3-6 months – Develop Minimal Critical Feature Set => Get to “It Works! Someone Uses It.” – Improve Design & Usability, Setup Conversion Metrics – Test Small-Scale Customer Adoption (10-1000 users) • Demonstrate Concept, Reduce Product Risk, Test Functional Use • Develop Metrics & Filter for Possible Future Investment
  • 19. Investment Stage #2: 
 Market Validation + Revenue Testing • Structure – 2-10 person team – $100K-$1M investment – Syndicate of Angel Investors / Small VC Funds • Improve Product, Expand Customers, Test Revenue: – Alpha->Beta, ~6-12 months – Scale Customer Adoption => “Many People Use It, & They Pay.” – Test Marketing Campaigns, Customer Acquisition Channels + Cost – Test Revenue Generation, Find Profitable Customer Segments • Prove Solution/Benefit, Assess Market Size • Test Channel Cost, Revenue Opportunity • Determine Org Structure, Key Hires
  • 20. Investment Stage #3: 
 Revenue Validation + Growth • Structure – 5-25 person team – $1M-$10M investment – Seed & Venture Investors • Make Money (or Go Big), Get to Sustainability: – Beta->Production, 12-24 months – Revenue / Growth => “We Can Make (a lot of) Money!” – Mktg Plan => Predictable Channels / Campaigns + Budget – Scalability & Infrastructure, Customer Service & Operations – Connect with Distribution Partners, Expand Growth • Prove/Expand Market, Operationalize Business • Future Milestones: Profitable/Sustainable, Exit Options
  • 21. Critical Ecosystem Factors • Optimism & Belief (“Silicon Valley”) • Mentorship + Education (Knowledge) • Universities + Companies (People) • Capital, Legal, Finance (Infrastructure) • Engineering + Design / UX (Product) • Platforms + Distribution (Customers) • Online Payments (Monetization) • IPO / M&A Market (Exits)
  • 22. Investor Ecosystem Angels & Accelerators ($0-10M) “Seed” Funds ($10-100M) “Traditional” VC Funds ($100-500M) “Unicorn” VC Funds (>$500M) Incubation 0-$100K Seed $100K-$1M Series A/B $1-10M Series B/C $10-100M Bootstrap, KickStarter, AngelList, Crowdfunding
  • 24. Investor Ecosystem Funding, Liquidity, Exits • Bootstrap, FFF, Crowdfunding (0-$100K) • Angel Investors (0-$100K) • Accelerators (0-$100K) • Seed funds ($100K-$1M) • Series A/B ($2-10M) • Later Stage Funds ($20M+) • M&A / Secondary Markets • IPOs
  • 25. A) Invite VCs to Dinner? B) Give VCs some Arabic Coffee? C) Take VCs for a Ride on a Camel? Q: How to Bring 500 VC Funds to Emerging Markets? Umm, NO.
  • 26. Q: How many VC funds do we need to build an ecosystem? • USA: ~800 VC funds; 2.5 per 1M ppl • China: ~700 VC funds; 0.5 per 1M ppl • MENA: ~30 funds; 0.1 per 1M ppl NOT EVEN CLOSE!
  • 27. A Brief History of US Venture Capital • first VC funds: ARDC, JH Whitney (1946) • SBICs / Small Business Investment Act (US, 1958) • Shockley -> “Traitorous Eight” -> Fairchild (1958) -> Intel (1968) • Sutter Hill (1964), Venrock (1969), Kleiner, Sequoia (1972) • ERISA laws + “prudent man rule” (1974, 1978) • Pension Funds in VCs: $39M (1977) -> $570M (1978) -> $4B (1989) • Tech Explosion: 80’s, 90’s, 00’s • Microsoft (1975), Apple (1976), Oracle (1977), Sun (1982), Cisco (1984), Amazon (1994), eBay (1995), Yahoo (1995), Google (1998), PayPal (1998), LinkedIn (2002), Facebook (2004), Twitter (2006)
  • 28. What’s Most Critical? • You DON’T need to be in Silicon Valley, but… • Silicon Valley Needs to be in YOU.