Alex Osadzinski +1 (650) 854-9500 [email_address] Venture Capital (Almost) everything you wanted to know but were afraid t...
Agenda <ul><li>Who I am </li></ul><ul><li>How (California) venture capital works </li></ul><ul><li>What VCs look for </li>...
Me <ul><li>6 venture funded startups </li></ul><ul><ul><li>$234B total outcomes </li></ul></ul><ul><li>1 large company </l...
Trinity Ventures <ul><li>Founded 1986 </li></ul><ul><li>$1.3B under management </li></ul><ul><li>Investing $300M Trinity I...
Size
How venture capital works Venture Fund Limited Partners General Partners Portfolio Companies
Valley of death Valuation Time Enthusiasm Optimism Reality Results
Outcome Venture Fund Limited Partners General Partners Portfolio Companies
Measurements <ul><li>IRR </li></ul><ul><ul><li>2x return in 1 year is 100% </li></ul></ul><ul><ul><li>But only a 2x </li><...
What VCs look for <ul><li>Disruptive technology </li></ul><ul><li>Disruptive business models </li></ul><ul><li>Fast execut...
What VCs look for in a company <ul><li>Team </li></ul><ul><li>Technology </li></ul><ul><li>Traction </li></ul>
Compare
Entrepreneurs – what I look for <ul><li>Trust and respect </li></ul><ul><li>Track record </li></ul><ul><li>Confidence, ski...
Technology <ul><li>Trade secret or patented IP </li></ul><ul><li>Secret sauce – must be hard to replicate </li></ul><ul><l...
Traction <ul><li>Big markets </li></ul><ul><ul><li>All markets seem to be $1B </li></ul></ul><ul><li>Large addressable mar...
Deal flow <ul><li>At Trinity </li></ul><ul><ul><li>3000 plans/referrals -> 500 1 st  meetings -> 50 actively “worked” -> 1...
Bay Area stats <ul><li>400,000 people in technology </li></ul><ul><li>20,000 entrepreneurs </li></ul><ul><ul><li>India, Ch...
After the investment <ul><li>Active board participation </li></ul><ul><li>Follow-on rounds </li></ul><ul><li>Team building...
What do I do all day? <ul><li>Leave home 7:30am, get to office 7:42am! </li></ul><ul><li>300-400 emails </li></ul><ul><li>...
Where do I do all this?
Silicon Valley vs London <ul><li>Better weather   </li></ul><ul><li>Lower taxes </li></ul><ul><li>Everything is (much) ch...
Europe vs US  (VC) business <ul><li>Europe </li></ul><ul><li>Large fragmented market </li></ul><ul><li>Sophistication </li...
Why startups are fun <ul><li>Speed </li></ul><ul><li>Focus </li></ul><ul><li>Agility </li></ul><ul><li>Size </li></ul><ul>...
Venture capital is… <ul><li>Simple in concept </li></ul><ul><li>Complex in execution </li></ul><ul><li>Getting tougher all...
<ul><li>Alex Osadzinski [email_address] +1 (650) 854-9500 </li></ul>
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Alex Osadzinski at New Connect Club - www.ncclub.pl

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Alex Osadzinski at New Connect Club - www.ncclub.pl

  1. Alex Osadzinski +1 (650) 854-9500 [email_address] Venture Capital (Almost) everything you wanted to know but were afraid to ask
  2. Agenda <ul><li>Who I am </li></ul><ul><li>How (California) venture capital works </li></ul><ul><li>What VCs look for </li></ul><ul><li>What VCs bring to the table </li></ul><ul><li>Why startups are fun </li></ul><ul><li>US/Europe differences </li></ul>
  3. Me <ul><li>6 venture funded startups </li></ul><ul><ul><li>$234B total outcomes </li></ul></ul><ul><li>1 large company </li></ul><ul><li>1 turnaround </li></ul><ul><li>CEO, COO, GM, VP Eng/Sales/Mktg </li></ul><ul><li>7 years at Trinity </li></ul>
  4. Trinity Ventures <ul><li>Founded 1986 </li></ul><ul><li>$1.3B under management </li></ul><ul><li>Investing $300M Trinity IX fund </li></ul><ul><li>11 investment professionals </li></ul><ul><li>Early stage IT technology investing </li></ul><ul><li>… .and… </li></ul>
  5. Size
  6. How venture capital works Venture Fund Limited Partners General Partners Portfolio Companies
  7. Valley of death Valuation Time Enthusiasm Optimism Reality Results
  8. Outcome Venture Fund Limited Partners General Partners Portfolio Companies
  9. Measurements <ul><li>IRR </li></ul><ul><ul><li>2x return in 1 year is 100% </li></ul></ul><ul><ul><li>But only a 2x </li></ul></ul><ul><li>Absolute return </li></ul><ul><ul><li>3-5x in 3-5 years </li></ul></ul><ul><ul><li>5x in 4 years is 50% IRR </li></ul></ul><ul><ul><li>Need to have a thesis for the 10x </li></ul></ul><ul><li>LPs want absolute return and IRR </li></ul>
  10. What VCs look for <ul><li>Disruptive technology </li></ul><ul><li>Disruptive business models </li></ul><ul><li>Fast execution </li></ul><ul><li>Capital efficient execution </li></ul><ul><li>Explosive growth </li></ul><ul><li>Awesome entrepreneurs and team builders </li></ul>
  11. What VCs look for in a company <ul><li>Team </li></ul><ul><li>Technology </li></ul><ul><li>Traction </li></ul>
  12. Compare
  13. Entrepreneurs – what I look for <ul><li>Trust and respect </li></ul><ul><li>Track record </li></ul><ul><li>Confidence, skill, poise </li></ul><ul><li>Collaborative nature </li></ul><ul><li>Realism (especially in financials) </li></ul><ul><li>Desire to take on venture capital </li></ul><ul><li>Wheelbarrow test </li></ul>
  14. Technology <ul><li>Trade secret or patented IP </li></ul><ul><li>Secret sauce – must be hard to replicate </li></ul><ul><li>Not a one-trick pony </li></ul><ul><li>Roadmap </li></ul><ul><li>Leverages the past </li></ul><ul><li>Often times evolutionary </li></ul>
  15. Traction <ul><li>Big markets </li></ul><ul><ul><li>All markets seem to be $1B </li></ul></ul><ul><li>Large addressable market – the real TAM </li></ul><ul><li>Bowling pin analogy is true </li></ul><ul><li>Crossing the chasm is true </li></ul>
  16. Deal flow <ul><li>At Trinity </li></ul><ul><ul><li>3000 plans/referrals -> 500 1 st meetings -> 50 actively “worked” -> 10 investments </li></ul></ul><ul><li>Deals come from </li></ul><ul><ul><li>VCs </li></ul></ul><ul><ul><li>Portfolio </li></ul></ul><ul><ul><li>Personal/firm networks </li></ul></ul><ul><ul><li>Trusted sources </li></ul></ul>
  17. Bay Area stats <ul><li>400,000 people in technology </li></ul><ul><li>20,000 entrepreneurs </li></ul><ul><ul><li>India, China, France, UK, … </li></ul></ul><ul><li>6,000 business plans </li></ul><ul><li>3,000 startups </li></ul><ul><li>200 funded </li></ul><ul><li>120 first-time CEOs </li></ul>
  18. After the investment <ul><li>Active board participation </li></ul><ul><li>Follow-on rounds </li></ul><ul><li>Team building </li></ul><ul><li>M&A </li></ul><ul><li>IPO </li></ul>
  19. What do I do all day? <ul><li>Leave home 7:30am, get to office 7:42am! </li></ul><ul><li>300-400 emails </li></ul><ul><li>5-8 company meetings, 1 hour each </li></ul><ul><li>Board work </li></ul><ul><li>Conferences, beauty contests, panels </li></ul><ul><li>Leave work 7pm, get home 7:12pm, or… </li></ul><ul><li>… dinner, usually with a candidate </li></ul>
  20. Where do I do all this?
  21. Silicon Valley vs London <ul><li>Better weather  </li></ul><ul><li>Lower taxes </li></ul><ul><li>Everything is (much) cheaper… </li></ul><ul><li>… ..except insane house pricing </li></ul><ul><li>Vibrant tech business environment </li></ul><ul><li>Very focused, driven, intense, frenetic </li></ul><ul><li>Somewhat isolated from reality </li></ul>
  22. Europe vs US (VC) business <ul><li>Europe </li></ul><ul><li>Large fragmented market </li></ul><ul><li>Sophistication </li></ul><ul><li>Introspection and doubt </li></ul><ul><li>Diffuse infrastructure </li></ul><ul><li>Cultural biases </li></ul><ul><li>Government regulation </li></ul><ul><li>No virtuous circle yet </li></ul><ul><li>US </li></ul><ul><li>Huge market </li></ul><ul><li>Naivete </li></ul><ul><li>Supreme confidence </li></ul><ul><li>Tight infrastructure </li></ul><ul><li>Cultural biases </li></ul><ul><li>Government regulation </li></ul><ul><li>Virtuous circle </li></ul>
  23. Why startups are fun <ul><li>Speed </li></ul><ul><li>Focus </li></ul><ul><li>Agility </li></ul><ul><li>Size </li></ul><ul><li>Growth </li></ul><ul><li>Personal responsibility </li></ul>
  24. Venture capital is… <ul><li>Simple in concept </li></ul><ul><li>Complex in execution </li></ul><ul><li>Getting tougher all the time </li></ul><ul><li>Plays a unique role in business </li></ul><ul><li>Is unique in Silicon Valley …..and….. </li></ul><ul><li>Is the best job in the world </li></ul>
  25. <ul><li>Alex Osadzinski [email_address] +1 (650) 854-9500 </li></ul>

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