500 Startups is a global seed fund and startup accelerator that has invested in over 1500 companies across 50 countries since 2010. It provides capital, community, education, and resources to founders and investors through its accelerator program, seed fund investments, distribution platform, marketing support, events, and educational content. The presentation discusses changes in how startups are built and funded more efficiently using lean startup methodologies and online distribution platforms, as well as changes in venture capital investing towards a portfolio approach of making many small bets across different stages. It outlines 500 Startups' strategy of investing small amounts in many early stage companies and selectively doubling down on the top performers over time to achieve outsized returns from successful exits.
Startup Metrics for Pirates (March 2009)Dave McClure
Slightly updated presentation from my talk at http://EntrepreneurTrek.org at Stanford University (March 2009). note: basically same as FOWA talk, minor update added slide 17.
The Lean VC: a Silicon Valley 2.0 StoryDave McClure
Slides from my talk about changes happening in the venture capital & angel investing industry, from the GROW Conference, Vancouver, Canada (August 2010).
Startup Metrics for Pirates (March 2009)Dave McClure
Slightly updated presentation from my talk at http://EntrepreneurTrek.org at Stanford University (March 2009). note: basically same as FOWA talk, minor update added slide 17.
The Lean VC: a Silicon Valley 2.0 StoryDave McClure
Slides from my talk about changes happening in the venture capital & angel investing industry, from the GROW Conference, Vancouver, Canada (August 2010).
EQS Roadshow 2012 / Präsentation Anlegerstudie der Universität Leipzig: Ergebnisse und Analysen für die professionelle Kommunikation mit Privatanlegern
Präsentation zum Thema "Investor Relations 2.0 - Status quo und Best Practices im internationalen Vergleich" / Roadshow EquityStory AG, Börse Stuttgart, 04.10.2011
Business and Professional CommunicationsDave Hogan
A basic primer on business and professional communication tips, including tips for proper use of cellphones and email. Includes recommendations for personal and business etiquette.
XBRL Financials for Investor Relations Websites - Q4 Web SystemsDarrell Heaps
Q4’s web platform delivers a highly accurate real-time rendering of XBRL tagged
SEC filings enabling users to review, customize, and share their
views of the filings while maintaining the linkage to the source filings.
Within minutes your website is updated with the complete filing displayed in
HTML with many interactive features.
2015 investor digital and social media infographicBrunswick Group
Brunswick Group releases findings of its fifth global investor survey
Key highlights include:
• Influence of information direct from companies continues to increase
• Of digital media, blogs and presentation sharing cited as most influential
For more information please contact:
Jason Golz: www.brunswickgroup.com/people/directory/jason-golz/
Sparky Zivin: www.brunswickgroup.com/people/directory/sparky-zivin/
Investor Relations 2 0 - Global Benchmark Study 2012 - University of LeipzigKristin Koehler
Empirical study investigating how corporations in the United States, Germany, United Kingdom, France, and Japan use social media for financial communications, both on their own websites and on external platforms including mobile channels. Global benchmark of 190 companies including the 150 largest firms listed on DJIA (Dow Jones Industrial Average, USA), FTSE (Financial Times London Stock Exchange Index, UK), CAC (Cotation Assistée en Continu quarante, France), DAX (Deutscher Aktien-Index, Germany), NIKKEI (Nihon Keizai Shimbun Index, Japan), as well as the top 10 companies in regard to market cap, and the top 10 companies in regard to performance of the US mid- and small-cap indices Russell Midcap and Russell 2000. As the third annual study in a row, this research provides longitudinal data and in-depth analysis based on content analysis and statistical evaluation. Authors: Ansgar Zerfass and Kristin Koehler, University of Leipzig, Germany.
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
slides for my "Venture Capital 2.0" opening talk at Stanford School Continuing Studies, VC101 class "Venture Capital Unlocked" #VCunlocked #500startups
How to VC: Creating a VC fund portfolio modelDave McClure
This article aims to help VCs figure out how to size a venture capital fund, how many companies to include in your portfolio, and when and how to do follow-on investments. Most VCs aim to make a 3X (net) return on initial fund capital, at a ~20% net IRR. Note however, likely less than 10% of most VC funds achieve that goal.
Basic concepts of marketing and branding for venture capital. Emphasis on competitive differentiation (aka "How are you different/better than other VCs in your category?"). Specific focus on defining areas of "value add" that aren't BS.
How to define and position your VC brand to attract funding and dealflow.
* note: more recent updated version below:
https://www.slideshare.net/dmc500hats/branding-strategies-for-better-dealflow-and-fundraising-aka-the-helpful-vc
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dave McClure
my talk on corporate innovation (or the lack thereof), the death of many dinosaurs, the survival of a smart few Raptors, and how to avoid getting trampled by Unicorns.
Multi-cluster Kubernetes Networking- Patterns, Projects and GuidelinesSanjeev Rampal
Talk presented at Kubernetes Community Day, New York, May 2024.
Technical summary of Multi-Cluster Kubernetes Networking architectures with focus on 4 key topics.
1) Key patterns for Multi-cluster architectures
2) Architectural comparison of several OSS/ CNCF projects to address these patterns
3) Evolution trends for the APIs of these projects
4) Some design recommendations & guidelines for adopting/ deploying these solutions.
This 7-second Brain Wave Ritual Attracts Money To You.!nirahealhty
Discover the power of a simple 7-second brain wave ritual that can attract wealth and abundance into your life. By tapping into specific brain frequencies, this technique helps you manifest financial success effortlessly. Ready to transform your financial future? Try this powerful ritual and start attracting money today!
1.Wireless Communication System_Wireless communication is a broad term that i...JeyaPerumal1
Wireless communication involves the transmission of information over a distance without the help of wires, cables or any other forms of electrical conductors.
Wireless communication is a broad term that incorporates all procedures and forms of connecting and communicating between two or more devices using a wireless signal through wireless communication technologies and devices.
Features of Wireless Communication
The evolution of wireless technology has brought many advancements with its effective features.
The transmitted distance can be anywhere between a few meters (for example, a television's remote control) and thousands of kilometers (for example, radio communication).
Wireless communication can be used for cellular telephony, wireless access to the internet, wireless home networking, and so on.
ER(Entity Relationship) Diagram for online shopping - TAEHimani415946
https://bit.ly/3KACoyV
The ER diagram for the project is the foundation for the building of the database of the project. The properties, datatypes, and attributes are defined by the ER diagram.
2. • What is 500?
– $250M silicon valley VC fund + startup accelerator
– 125 people / 30 partners / 25 languages / 20 countries
– 1500+ Companies / 3000+ Founders / 200+ Mentors
– Investment, Accelerator, Distro, Marketing, Events, Education
– Community + Content + Conferences
• 1500+ Co’s / 50+ Countries
– Credit Karma ($3.5B)
– Twilio ($1B+)
– Grab ($1B+)
– Wildfire (acq GOOG, $350M)
– MakerBot (acq SSYS, $400M)
– Viki (acq Rakuten, $200M)
– Behance (acq Adobe, $150M)
– Simple (acq BBVA, $117M)
– Sunrise (acq MSFT, $100M)
– Udemy
– Ipsy
– TalkDesk
– Intercom
500 Startups
Global Seed Fund & Startup Accelerator
3. Dave McClure
Founding Partner, 500 Startups
00’s & 10’s:
• VC: Founders Fund, Facebook fbFund, 500 Startups
• Angel: Mashery, Mint.com, SlideShare, Twilio, Wildfire, SendGrid
• Marketing: PayPal, Simply Hired, Mint.com, O’Reilly
80’s & 90’s:
• Entrepreneur: Aslan Computing (acq’d by Servinet/Panurgy)
• Developer: Windows / SQL DB consultant (Intel, MSFT)
• Engineer: Johns Hopkins‘88, BS Eng / Applied Math
4. [ This Talk ]
• What is 500 Startups?
• Changes in Building Tech Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Engineering Investor Ecosystems in Emerging Markets
• Q&A
7. How DMC Became a VC
• Option 1: Go to Harvard/Stanford MBA, Become Associate,
Work at McKinsey / Google / Facebook, Re-Join VC as Partner,
Kick Back & Play Golf
• Option 2: Start Unicorn, Grow Big, Sell for $1B+, Join VC
• Option 3: Wander around Silicon Valley for 25 years as geek,
entrepreneur, marketer, angel, then start your own VC firm
8. 500 Startups Mission
1. Find Smart People.
2. Give Them Money.
3. Wait for Good Sh*t to Happen.
9. Investor Ecosystem
Angels &
Incubators
($0-10M)
“Micro-VC” Funds
($10-100M)
“Big” VC Funds
($100-500M)
“Mega” VC Funds
(>$500M)
Incubation
0-$100K
Seed
$100K-$2M
Series A/B
$2-10M
Series B/C
$10-50M
Bootstrap, KickStarter,
AngelList, Crowdfunding
stage where
500 writes
first checks
stage where 500
doubles-down
(maybe)
15. [ This Talk ]
• What is 500 Startups?
• Changes in Building Tech Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Engineering Investor Ecosystems in Emerging Markets
• Q&A
16. Changes in Tech Startups
• LESS Capital required to build product, get to market
– Dramatically reduced cost for servers, software, bandwidth
– Funding Platforms: KickStarter, Angel List, Funders Club, etc
– Access to online platforms for 100M-1B+ consumers, smallbiz, etc
• MORE Customers via ONLINE platforms (100M+ users)
– Search (Google, Baidu)
– Social (Facebook, Twitter, LinkedIn)
– Mobile (Apple, Android)
– E-Commerce (Amazon, PayPal, Alibaba)
– Media (YouTube, Pinterest, Instagram)
– Comm/Msgs (WeChat, WhatsApp, SnapChat, Email, Voice, SMS, etc)
• LOTS of little bets: Accelerators, Angels, Angel List, Small Exits
– Capital + Co-working + Mentoring -> Design, Data, Distribution
– “Fast, Cheap Fail”, network effects, quantitative + iterative investments
17. Before & After 2 Dot-Com Crashes
LEAN Startup: Simpler, Faster, Cheaper, Smarter
Before 2000
”Big, Fat, Dinosaur Startup”
• Sun Servers
• Oracle DB
• Exodus Hosting
• 12-24mo dev cycle
• 6-18mo sales cycle
• <100M people online
• $1-2M seed round
• $3-5M Series A
• Sand Hill Road crawl
After 2008
”Lean, Little, Cockroach Startup”
• AWS, Google, PayPal, FB, TW
• Cloud + Open Source SW
• Lean Startup / Startup Wknd
• 3-90d dev cycle
• SaaS / online sales
• >3B people online
• <$100K incub + <$1M seed
• $1-3M Series A
• Angel List global visibility
20. Startup Education
• Business Plans / Revenue Projections
• Software + Design/UX
• Lean Startups + Continuous Deploy (Iterate)
• Metrics Framework + Continuous Testing
• Functional Prototypes / Customer Development
• Scalable [Internet] Marketing & Sales
• Cash-Flow Positive Unit Economics
• Pitching + Fundraising (hint: use AngelList.com)
• Monetization + Payments
• Customer Service + Support
20
21. [ This Talk ]
• What is 500 Startups?
• Changes in Building Tech Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Engineering Investor Ecosystems in Emerging Markets
• Q&A
22. Industry Changes
• Financial Market Crises (2000, 2008)
• Startup Efficiency, Lean Startup Movement, Reduced Capital Costs
• Growing Market, Global Distribution Platforms, “Growth Hacking”
• Improved Monetization, Payments Infrastructure
• Developing Startup Ecosystems, Global M&A
• Micro VC: Seed Funds (ex: First Round Capital)
• Incubators & Accelerators (ex: Y Combinator, 500 Startups)
• Funding Platforms (ex: Angel List, Kickstarter)
• Global Market of Angel Investors, Accelerators, Seed Funds
more info: http://PreMoney.co
23. Investor Education
• Startups are NOT Real Estate
• Most Startups Fail / Power Law Returns
• Portfolio Approach (20-100+ investments)
• Legal Structure, Financial Structure
• Syndication + Co-Investment
• Access to Downstream Capital
• Exits & Liquidity
23
32. 500 Strategy: Lots of Little Bets*
1) make lots of little
bets on pre-traction,
early-stage startups
3) wait 5-10 years for returns:
-10-20% small exits @1-5X ($5-25M+)
-5-10% larger exits @5-20X ($25-250M+)
-1-2% unicorns @20-50X+ ($250M-1B+)
*See Peter Sims book: “Little Bets”
2) over the next five years,
double-down on top 20-30%
~500 co’s @ $100K 1st checks
100-200 co’s @ $200-500K
2nd/3rd checks
(target 25-50 exits @ $100M+)
(assume high failure rate ~50-80%)
33. [ This Talk ]
• What is 500 Startups?
• Changes in Building Tech Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Engineering Investor Ecosystems in Emerging Markets
• Q&A
34. Startup Investment Stages
• Concept
• Product
• Functional Prototype
• Early Users/Customers
• Other Investors
• Profitable Unit Economics?
• Scalable Cust Acquisition?
• Profitable Business
• Scalable Organization
• Exit / Liquidity?
34
36. Legal review Partner approval
Angel Pre-Seed Seed Post-Seed Series A/B Growth
Accelerator
Seed
“Distro"
Follow-On
Selection Criteria – Data-Driven Process Based on Pre-defined Metrics
• Product or service solves a problem for a specific target customer
• Capital-efficient business; operational at less than $1M in external financing
• Scalable internet-based distribution (search, social, mobile) or proven ability to scale sales
• Functional prototype required before investing (or previous product success)
• Measurable traction: engaged users, some revenue, and attractive unit economics
• Cross-functional team with design, engineering and marketing expertise
How 500 Invests:
Accelerator, Seed, Distro
37. The Lean Investor
Make lots of little bets:
• Start with many small “experiments”
• Filter out failures + small wins
• Double-down on stuff that looks like it’s working
• Incubation: $0-100K (“Build & Validate Product”)
• Seed: $100K-$1M (“Test & Grow Marketing Channels””)
• Venture: $1M-$10M (“Maximize Growth & Revenue”)
38. Investment Stage #1:
Product Validation + Customer Usage
• Structure
– 1-3 founders
– $0-$100K investment
– Incubator environment: multiple peers, mentors/advisors
• Test Functional Prototype / “Minimum Viable Product” (MVP):
– Prototype->Alpha, ~3-6 months
– Develop Minimal Critical Feature Set => Get to “It Works! Someone Uses It.”
– Improve Design & Usability, Setup Conversion Metrics
– Test Small-Scale Customer Adoption (10-1000 users)
• Demonstrate Concept, Reduce Product Risk, Test Functional Use
• Develop Metrics & Filter for Possible Future Investment
39. Investment Stage #2:
Market Validation + Revenue Testing
• Structure
– 2-10 person team
– $100K-$1M investment
– Syndicate of Angel Investors / Small VC Funds
• Improve Product, Expand Customers, Test Revenue:
– Alpha->Beta, ~6-12 months
– Scale Customer Adoption => “Many People Use It, & They Pay.”
– Test Marketing Campaigns, Customer Acquisition Channels + Cost
– Test Revenue Generation, Find Profitable Customer Segments
• Prove Solution/Benefit, Assess Market Size
• Test Channel Cost, Revenue Opportunity
• Determine Org Structure, Key Hires
40. Investment Stage #3:
Revenue Validation + Growth
• Structure
– 5-25 person team
– $1M-$10M investment
– Seed & Venture Investors
• Make Money (or Go Big), Get to Sustainability:
– Beta->Production, 12-24 months
– Revenue / Growth => “We Can Make (a lot of) Money!”
– Mktg Plan => Predictable Channels / Campaigns + Budget
– Scalability & Infrastructure, Customer Service & Operations
– Connect with Distribution Partners, Expand Growth
• Prove/Expand Market, Operationalize Business
• Future Milestones: Profitable/Sustainable, Exit Options
41. Investment Allocation Strategy
• How long will companies take to exit / reach liquidity? (3-7 yrs)
• How long is your investment cycle? (ex: 3-5 yrs)
• When will capital be returned? (1X in 5-8 yrs, 2-5X in 8-12 yrs)
• Simple allocation for $10M investment budget over first 5 years
• 50% 1st checks + 50% 2nd/3rd checks
• ~100 1st checks @ $50K each ($5M), ~20 checks / yr
• ~10-20 2nd checks @ $250-500K each ($5M), ~3 checks / yr
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50
15
.. .. ..
42. [ This Talk ]
• What is 500 Startups?
• Changes in Building Tech Startups
• Changes in Venture Capital Investing
• The “Lean” Investor + Portfolio Approach
• Engineering Investor Ecosystems in Emerging Markets
• Q&A
46. We live in a World of ABUNDANCE
• There are LOTS of talented people in the world
• There are LOTS of entrepreneurs everywhere
• There is a LOT of capital sitting around, BUT….
• Not much is available for un-tested entrepreneurs :(
• 500 Startups plans to change that.
48. Who/What is an Entrepreneur?
• someone who WANTS to start a business
• someone who can RUN a business
• someone who can run a SUSTAINABLE business
• someone who can run a PROFITABLE business
that creates VALUE & employs LARGE # people
• someone who can run a $10M/yr business that
employs 100+people
49. How Big Is The Market?
Q: How Many Entrepreneurs?
• How Many People = 7,000,000,000 on earth
• 1% of Humanity is Entrepreneurial = 70,000,000 founders
• Live 70 years, try at least once = 1,000,000 founders / year
• How Much Do They Need? Zero? $100K? $1M? $10M?
• How Big is the Market = 1M founders x $10M = $10 TRILLION / year
• Come on, REALLY? (ok Divide by 100)
• 100,000 founders / year * $1M each = $100 BILLION / year
50. How Many VCs?
• How Many Founders? 1,000,000 founders / year
• (ok, divide by 100, let’s say 10,000 founders / year)
• 1 VC can make 20 investments / year
• 10,000 founders / 20 deals per VC = 500 VCs
51. Challenges for VCs & Angels
in Emerging Markets
• Smaller Markets than USA, UK/EU, CH/JPN
• Limited Internet / Mobile / Smartphone
• Tough Online Payments / Physical Logistics
• Small # of Early-Stage Capital / Firms
• Long Time to Exits /Liquidity (7-10 years)
• Small # IPOs (0?) / Small # Local Acquirers
51
52. Solutions for VCs & Angels
in Emerging Markets
• Increase #, frequency of early-stage investors
• Increase portfolio size, Decrease check size
• Increase #, frequency of acquirers
• Fund of Funds for Countries / Regions
• Liquidity Funds for Repurchase of Series A/B
• Use of Real Estate as Hedge / Synthetic Liquidity
• Tax Incentives for Global, Local Acquirers
• Tax Incentives for Investing in Startups, Innovation
52
53. Investing Resources
• The Venture Capital Cycle (Gompers, Lerner)
• Venture Deals (Feld, Mendelson)
• Angel Investing (Rose)
• Venture Hacks (Naval, Nivi)
• blogs: Fred Wilson, Brad Feld, Mark Suster
• Quora: Jason Lemkin, David Rose, etc
53