some viewers of the Stanford Entrepreneurial Thought Leaders pitch, featured here http://stanford.io/1M3zhZ9 have asked Floodgate to post a link to the presentation deck.
15. The Power Law
97% of all exit profits
come from <10
>10,000 startups a year
16. The Power Law
97% of all exit profits
come from <10
>10,000 startups a year
The Value of the best outcome exceeds all other
outcomes combined; the second best outcome exceeds
the value of subsequent outcomes and so-on.
17. The Goal of Tech Entrepeneurship
Leverage the power of
Mooreās Law and/or
Metcalfeās Lawā¦
To createā¦
An extraordinary
outcome
20. The Value Stack
Value creation
Proprietary Power
Product Power
Company Power
Category Power
ā¦avoids the need to
compete
ā¦achieves product-
market fit
ā¦prepares for rapid
scaling
ā¦captures the value
from changing spend
22. Common View of Capitalism
Capitalism is a system of
perfect competition.
23. The Broader View of Capitalism
āTrueā capitalism and
competition are opposites
24. Fundamental Advantages are
Fundamental
ā¢ Perfect competition is not perfect
ā¢ Mindless competition is pervasive in Silicon Valley
ā¢ Can it be a monopoly if it works?
ā¢ Is there a structural competitive advantage, not just a
first-mover advantage?
30. Common View of Products
Company Market
Product
ā¢ Startup has product idea and builds it
ā¢ Startup launches product
ā¢ Then gets customers and iterates
31. Problems with this view
āIn a great market ā a market with lots of real potential customers ā
the market pulls product out of the startup.ā
Conversely, in a terrible market, you can have the best product in the
world and an absolutely killer team and it doesnāt matter ā youāre
going to fail.ā
āThe #1 company-killer is lack of market.ā
Marc Andreessen
39. Sources of Company Power
ā¢ Scalable Business Model
ā Converts innovation to value
ā¢ Scalable Management Systems
ā Avoids technical and management debt
40. Scalable Business Model
ā¢ Always possible when Proprietary Power and
Product Power are present
ā¢ Increasing margins and pricing power are
āproofā that the first two layers are strong
42. Scalable Management Systems
ā¢ Culture: Define it or let it happen?
ā¢ Basic Management Systems:
ā 1:1s, Board Meetings, Team Meetings, Forecasting
Frameworks
ā¢ Compensation Strategy
ā Particularly important for recruiting and retention
ā¢ Hot Teams
44. Category Power
Capturing the value
from changing spend
Proprietary Power
Product Power
Company Power
Category Power
45. Category Kingsā¦
ā¢ Category Kings donāt just make something to sell to
people
ā¢ Category Kings introduce the world to a new category
of product or service.
ā¢ Category Kings replace our current point of view with a
new point of view.
ā¢ And ultimately, they change how people and
businesses decide to spend their money.
50. The Goal of Seed Rounds
Value creation
Proprietary Power
Product Power
Company Power
Category Power
ā¦marry the first two
layers
ā¦lay early groundwork
51. The Goal of āExecutionā Rounds
Value creation
Proprietary Power
Product Power
Company Power
Category Power
ā¦create the flywheel
for blitz-scaling
...category design
ā¦invest to tighten
fundamental
advantages
52. The Goal of āLate Stageā Rounds
Value creation
Proprietary Power
Product Power
Company Power
Category Power
ā¦relentless refinement
...capture the profit pool
from emerging category