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The Rise of the Angels (and the Entrepreneurs) - Baltimore - Feb 2013

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Slides from my talk at Betamore.

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The Rise of the Angels (and the Entrepreneurs) - Baltimore - Feb 2013

  1. @paulsingh @betamore THE RISE OF THE ANGELS(AND THE ENTREPRENEURS) PAUL SINGH @paulsingh・paul@500startups.com・resultsjunkies.com
  2. @paulsingh @betamore GETTING TO KNOW 500 STARTUPS BECAUSE WE’RE KIND OF A BIG DEAL PAUL SINGH @paulsingh・paul@500startups.com・resultsjunkies.com
  3. @paulsingh @betamore
  4. @paulsingh @betamore EARLY STAGE STARTUPS HAVE CHANGED
  5. @paulsingh @betamore CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING STARTUP COSTS LOWER THAN EVERBUT SCALING STILL COSTS MONEY
  6. @paulsingh @betamore WEB GETS BIGGER. WORLD GETS SMALLER.
  7. @paulsingh @betamore TRACTION IS THE NEW INTELLECTUAL PROPERTY PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE. NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.
  8. @paulsingh @betamore CAPITAL INCREASINGLY COMMODITIZED RISE OF THE ANGELS, YO!
  9. @paulsingh @betamore NEW REALITY: MONEY FOLLOWS FOUNDERS RISE OF THE ENTREPRENEURS, YO!
  10. @paulsingh @betamore SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  11. @paulsingh @betamore SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  12. @paulsingh @betamore TRANSPARENCY IS SIGNALS ARE EVERYWHERE BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
  13. @paulsingh @betamore WALL STREET BEAT US TO IT
  14. @paulsingh @betamore
  15. @paulsingh @betamore “ UBS PROPRIETARY SATELLITE PARKING LOT FILL RATE ANALYSIS POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.
  16. @paulsingh @betamore
  17. @paulsingh @betamore “ TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.
  18. @paulsingh @betamore WALL STREET ISN’T ALONE THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.
  19. @paulsingh @betamore IT TURNS OUT, WE CAN DO IT, TOO SURPRISE!
  20. @paulsingh @betamore
  21. @paulsingh @betamore + “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
  22. @paulsingh @betamore WE CAN DO IT, TOO.
  23. @paulsingh @betamore WE CAN DO IT, TOO.
  24. @paulsingh @betamoreWE’RE DOING IT, TOO.
  25. @paulsingh @betamore
  26. @paulsingh @betamore “ VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY. -- NAVAL RAVIKANT (@naval)
  27. @paulsingh @betamore EARLY STAGE VC IS CHANGING HAS CHANGED
  28. @paulsingh @betamore STATE OF THE ART IN EARLY STAGE INVESTING IS NOT VERY SOPHISTICATED
  29. @paulsingh @betamore UNBUNDLING OF ADVICE, CONTROL AND MONEY
  30. @paulsingh @betamore USED TO BE ABOUT CAPITAL, DEALFLOW AND JUDGEMENT TODAY, IT’S ABOUT ACCESS.
  31. @paulsingh @betamore (500) CHECKLIST Product solves a problem for a specific target customer Capital-efficient businesses - operational @ <$1M funding Primarily internet-based distribution - search, social, mobile, local Simple revenue models - transactions, subscriptions or affiliate Functional prototype before investment (or previous success) Small but measurable usage - some customers, early revenue Small but cross-functional team - engineer, design/UX, marketing
  32. @paulsingh @betamore (NEW) FINANCINGS
  33. @paulsingh @betamore (NEW) FINANCINGS Standardized terms
  34. @paulsingh @betamore (NEW) FINANCINGS Standardized terms No fixed amounts, no closings, no leads
  35. @paulsingh @betamore (NEW) FINANCINGS Standardized terms No fixed amounts, no closings, no leads Continuous, not discrete rounds
  36. @paulsingh @betamore (NEW) FINANCINGS Standardized terms No fixed amounts, no closings, no leads Continuous, not discrete rounds Prices beginning to float
  37. @paulsingh @betamore (NEW) FINANCINGS Standardized terms No fixed amounts, no closings, no leads Continuous, not discrete rounds Prices beginning to float No Board seats at the earliest stage
  38. @paulsingh @betamore (NEW) FINANCINGS Standardized terms No fixed amounts, no closings, no leads Continuous, not discrete rounds Prices beginning to float No Board seats at the earliest stage Herd mentality and oversubscriptions
  39. @paulsingh @betamore “ BY ITS NATURE, THE INTERNET UNDERMINES ANYONE WHOSE STATUS DEPENDS ON PRIVILEGED ACCESS TO INFORMATION. -- MICHAEL LEWIS
  40. @paulsingh @betamore Demo Day Videos ⟹ livestream.com/500startups Sample Pitch Decks ⟹ slideshare.net/500startups Venture Capital 101 ⟹ venturehacks.com/archives Investor Thoughts: Brad Feld ⟹ feld.com Fred Wilson ⟹ avc.com Chris Dixon ⟹ cdixon.org Mark Suster ⟹ bothsidesofthetable.com
  41. @paulsingh @betamore YOUR KEY TAKEAWAYS
  42. @paulsingh @betamore YOUR KEY TAKEAWAYS Focus on Traction.
  43. @paulsingh @betamore YOUR KEY TAKEAWAYS Focus on Traction. Learn to Communicate and Inspire.
  44. @paulsingh @betamore ALSO...
  45. @paulsingh @betamore ALSO... Think about distribution a lot
  46. @paulsingh @betamore ALSO... Think about distribution a lot Focus on customer acquisition
  47. @paulsingh @betamore ALSO... Think about distribution a lot Focus on customer acquisition Get on AngelList
  48. @paulsingh @betamore ALSO... Think about distribution a lot Focus on customer acquisition Get on AngelList Learn the basics of VC economics
  49. @paulsingh @betamore ALSO... Think about distribution a lot Focus on customer acquisition Get on AngelList Learn the basics of VC economics Raise 12-18 months of funding
  50. @paulsingh @betamore THE RISE OF THE ANGELS(AND THE ENTREPRENEURS) PAUL SINGH @paulsingh・paul@500startups.com・resultsjunkies.com

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