Introduce yourself: - Investing for 12 years and started Hyde Park Angels in Chicago, one of the US most active angel networks - WLV invests in B2B Fin Tech companies that are disrupting Big Finance - Recently was an advisor to the G7 in Torinio, Italy on Big Data, Artificial Intelligence and The Future of Work
Let’s add Hyde Park Angels, Riskalyze, Ycharts, Catalytic, Dabble, Deskpass, Simple Mills, UICO, NuCurrent, Kapow , G7 logo
Black and White – Apple like
When we talked to the head of Barclays Futures and we asked them what they do when they encounter a problem they said, ”We throw more bodies at it” 67% of a megabanks Cost of Goods Sold are in the back office and none of them have implemented software solutions to streamline it.
What makes a good VC Investment? Good ideas that look like bad ideas start off as toys –> Drones! They are toys. But they are already used to monitor pipelines and crops. Of course, we know they are being used to drop bombs by both sides in the war on terror. How about BB-8, the Star Wars robot? It was a toy called Sphero. How soon before robots like that are delivering all kinds of things from point to point? Good ideas that look like bad ideas are a small part of something bigger (it’s called Unbundle) –> Someone unbundles what looks like a feature of a much larger software (or hardware) but makes that one feature awesome. Chicago based Ycharts.com is a perfect example of that. It’s the best stock research platform on the internet and unbundles the Bloomberg terminal. Dropbox is another example of that. Storing files on the cloud wasn’t quite a novel thing. But turning that feature into the product and doing it in such a simple way made dropbox an overnight hit. Good ideas that look like bad ideas look ridiculous to incumbents –> Peer to peer lending looked pretty ridiculous to banks. Today JP Morgan’s Jamie Dimon says Bitcoin is a fraud. Good ideas that look like bad ideas challenge social norms or adds a twist –> How many of you took Uber/Lyft here today? Who is going to ride in a strangers car, and pay for the privilege? The Secret: often the founder have problem/domain expertise or technical expertise related to the stuff he are tinkering with. e.g. Product Hunt is a perfect example of this. Ryan is a self-professed geek who just loves (like many of us) to try and comment on new products. It’s a passion many of us participate in. If you can turn that into something that uses a network (in this case a very engaged and passionate community) you got something. This post was inspired by a talk that Chris Dixon gave at YC School last year. Chris essentially went through some of the learnings of what makes good ideas.
Software is Eating the World Everything will be Unbundled (seemingly small niche functions are unbundled to build large businesses like a peer to peer network to do loans) Network Beats Hierarchy (Bureaucratic Hierarchies in vertical silos to Technology Driven Networks) Everyone A Node On A Network (we are all connected all the time) Government Cannot Keep Up (who thinks a government regulator has their pulse on cutting edge innovation?)
Trust-Can I know who you are and trust you? Do I know you are going to do what you say you will do? Blockchain is a trust network Security-Hackers gotta hack because they make money. Keeping everything secure is critical-blockchain is a secure network Data Data Everywhere-massive companies will be built using public data from databases and sensors. Artificial Intelligence-machines and robots will do tasks, creating room for us to service customers better and do different things
Renting to total strangers.
Effecting the world of commercial real estate and hospitality
By they time they realized what is happening, all the players are behind and LOSING DEALS(building momentum for the next slide)
Chicago had $300MM in tenant commissions last year, NONE OF IT TECH ENABLED. Is it any wonder people are afraid of, and detest the entire Real estate and moving process? One of the most intimidating things for a tech founder is to find an office or move offices. They absolutely hate it, plus, it’s horribly inefficient and takes a lot of their time.
What’s the seemingly stupid ideas that are new to the market today? Megalytics.net, Truss.co, and Deskpass.com are three I know about.
Most leasing transactions took 20-24 weeks to close! Megalytics turn around is 1.5 days. Truss closed a deal in 17 days. With Deskpass, you can get a desk in the same day on demand. In an on demand on time economy, CRE isn’t efficient. How many deals fall through? Why?
Let’s look at Megalytics, one of WLV’s portfolio companies
speedy, effective investment and management decisions through an automated platform that integrates large and disparate data sources and proprietary algorithms and scoring models to help standardize due diligence and risk assessment processes. It’s also GRESB compliant. Pension funds from Europe are starting to invest in the US and mandating that CRE be GRESB compliant.
Add CFX Markets logo on right
Add Truss logo on right
Add deskpass logo on right
WESTLOOPVENTURES.COM TWITTER: @WESTLOOPV @POINTSNFIGURES
Think about it. . .
Since 2001 Internet Bubble Burst:
+ 50x users, +180x bandwidth +6x spent online
+ mobile, social, credit card ready
+ increased regulation in US and Europe
+ Global economic pressure and competition
Amazing opportunity and edge
(if it worked)
5 TRENDS THAT ARE UNAVOIDABLE
1. Software is Eating the World
2. Everything will be Unbundled
3. Network Beats Hierarchy
4. Everyone A Node On A Network
5. Government Cannot Keep Up
THEMES FOR FUTURE INVESTING
Blockchain is a trustnetwork
Keeping securityis critical
Using public datafrom databases and sensors
Machines and robots with artificial
intelligence will do tasks
EXAMPLE OF VC
CREYOU WISH YOU THOUGHT OF THIS FIRST
They find an
Post on a
rent per night
SOME DATA WE
THIS WILL SURPRISE YOU-ARE YOU READY?
$ 300,000,000 IN TENANT COMMISSIONS
NONE TECH ENABLED
HOW LONG DID IT TAKE YOU
TO CLOSE THOSE DEALS?
HOW MANY DEALS DID YOU
LOSE TO TECHNOLOGY ?
WHY DID YOUR DEALS FALL
WHAT ARE THE
THAT YOU CAN
USE IN THE
• Effective investment and management decisions
• A speedy automated platform
• Integrates large and disparate data sources
• Scoring models to help standardize due diligence
and risk assessment processes.
• GRESB Compliant
BUILDING A TRUST NETWORK
• CFX Markets brings transparency and
clarity to a market that needs it
• Public but non-listed REITs
• Bad reputation and nefarious activity
• CFX brings two sided markets and
creates transparent bid/ask spread
that decreases slippage
• Will make REITs more efficient, and
will bring credibility to asset class
UNBUNDLING OF CRE
• Truss.co unbundles small transactions that take time and
resources and allow CRE agents to earn commissions and service
• Speedy, tech enabled and efficient for landlords, agents and clients
UNBUNDLING OF CRE
• Deskpass, WeWork, are unbundling the simple act of getting a place
to work. Using the social behavior of working in a coffee shop
combined with alleviating the loneliness of working at home alone
• Utilizing empty CRE space to create more dollars per square foot
• Works with growing cadre of independent workers
IS BLOCKCHAIN A STUPID IDEA THAT
IS GOOD FOR REAL ESTATE?
• What if there was a VIN number on every property?
• What if you could track every title on a blockchain (no title
insurance or title companies)
• 40-60 different parties need to agree on everything for one
transaction to be made. What if there was a smart contract
that auto-executed on a blockchain?
HOW CAN I