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Silicon Valley  2.0 The  Lean  VC Dave McClure http://500startups.com   ( @DaveMcClure )  Moscow – Oct 2011 http://slideshare.net/dmc500hats Re-Inventing Venture Capital through Innovation, Incubation, & Iteration
Changes in Tech & VC ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Read  Geoffrey Miller Sex  +  Evolution  +  Consumer Mktg  =  Awesome
Dave McClure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
500 Startups –  “Super-Angel” Fund Mountain View, CA – Founded 2010 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Platforms 2.0 Search, Social, Mobile
Web 2.0 :  Good  Times . ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],R.I.P. *BAD* TIMES
Platform Viability Successful Platforms  have 3 Things: 1)  Features 2)  Users 3)  Money Users   . .  Money Features Growth Profit Profitable Growth Nirvana
Distribution Platforms ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Web 2.0 Business Model:  KISS  ( “Keep It Simple, Stupid”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Venture Capital 2.0 (smaller / bigger, faster,  better? ) Venture Capital 1.0  “ Super” Angel  (aka Micro-VC)
Silicon Valley Investor Ecosystem True Ventures First Round Capital Founders Fund Accel SoftTech (Clavier) Felicis (Senkut) SV Angel (Conway) Angels &  Incubators ($0-10M) “ Seed” Funds  ($10-50M) VC Funds  ($50-250M) VC Funds  (>$250M) Y-Combinator TechStars
Big VC: Still Necessary? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
More & Smaller Acquisitions ,[object Object],[object Object],[object Object],[object Object],[object Object],* Mint acquired by Intuit in Sept 2009 for $170M ,[object Object],[object Object],[object Object],[object Object],[object Object]
Startup Incubators & Metrics  Lots of Little Bets. Most  FAIL . (but a few succeed :)
Incubator 2.0: Fast, Cheap, FAIL ,[object Object],[object Object],[object Object]
Incubator 2.0:  Education, Collaboration, Iteration ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
fbFund REV ,[object Object],[object Object],[object Object],[object Object]
Lean Startup, Lean VC Customers , Metrics, Iteration. Invest  BEFORE  Traction;  Double Down  AFTER .
The Lean Startup ,[object Object],[object Object],[object Object],[object Object],[object Object]
Discover  Customers (Steve Blank, SteveBlank.com)
Iterate : Learn, Measure, Build. (Eric Ries, StartupLessonsLearned.com) LEARN BUILD MEASURE IDEAS CODE DATA
Startup Metrics for Pirates ,[object Object],[object Object],[object Object],[object Object],[object Object],(note: If you ’re in a hurry, Google “Startup Metrics” & watch 5m video) AARRR !
AARRR! : 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
One Step at a Time. ,[object Object],[object Object],[object Object]
The  “Lean” VC: Lots of Little Bets, Incremental Investment ,[object Object],[object Object],[object Object],[object Object]
Investment Stage #1:  Product  Validation + Customer Usage ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investment Stage #2:  Market  Validation + Revenue Testing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investment Stage #3:  Revenue  Validation + Growth ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Going Local, Going Global web gets bigger -> world gets smaller
Global  Trends ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Local  Hacks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Silicon Valley 2.0: The Lean VC

  • 1. Silicon Valley 2.0 The Lean VC Dave McClure http://500startups.com ( @DaveMcClure ) Moscow – Oct 2011 http://slideshare.net/dmc500hats Re-Inventing Venture Capital through Innovation, Incubation, & Iteration
  • 2.
  • 3. Read Geoffrey Miller Sex + Evolution + Consumer Mktg = Awesome
  • 4.
  • 5.
  • 6. Platforms 2.0 Search, Social, Mobile
  • 7.
  • 8. Platform Viability Successful Platforms have 3 Things: 1) Features 2) Users 3) Money Users . . Money Features Growth Profit Profitable Growth Nirvana
  • 9.
  • 10.
  • 11. Venture Capital 2.0 (smaller / bigger, faster, better? ) Venture Capital 1.0 “ Super” Angel (aka Micro-VC)
  • 12. Silicon Valley Investor Ecosystem True Ventures First Round Capital Founders Fund Accel SoftTech (Clavier) Felicis (Senkut) SV Angel (Conway) Angels & Incubators ($0-10M) “ Seed” Funds ($10-50M) VC Funds ($50-250M) VC Funds (>$250M) Y-Combinator TechStars
  • 13.
  • 14.
  • 15. Startup Incubators & Metrics Lots of Little Bets. Most FAIL . (but a few succeed :)
  • 16.
  • 17.
  • 18.
  • 19. Lean Startup, Lean VC Customers , Metrics, Iteration. Invest BEFORE Traction; Double Down AFTER .
  • 20.
  • 21. Discover Customers (Steve Blank, SteveBlank.com)
  • 22. Iterate : Learn, Measure, Build. (Eric Ries, StartupLessonsLearned.com) LEARN BUILD MEASURE IDEAS CODE DATA
  • 23.
  • 24. AARRR! : 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A CQUISITION SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30. Going Local, Going Global web gets bigger -> world gets smaller
  • 31.
  • 32.
  • 33.

Editor's Notes

  1. BUILT TO LEARN This is the core feedback loop that powers startups. Their goal is not to optimize the time it takes to do any one of these steps. There are many specific practices that can power lean startups, and we ’ll cover a few in this presentation. But more important than any specific practice is this core idea: startups should be built to learn.