The document discusses the evolution of the private market and rise of angel investors. Startup costs have decreased with cloud computing and online distribution, but scaling still requires money. Data and analytics are providing new signals for venture capital firms to evaluate startups. Early stage VC is changing with standardized financings, continuous funding rounds, and less board control for investors. The private market is becoming more efficient and liquid.

1. @paulsingh @pdxs
PAUL SINGH
@paulsingh・paul@dashboard.io・resultsjunkies.com
THE EVOLUTION OF THE
PRIVATE MARKET
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)

2. @paulsingh @pdxs
500 STARTUPS
PAUL SINGH
@paulsingh・paul@dashboard.io・resultsjunkies.com

3. @paulsingh @pdxs

4. @paulsingh @pdxs
EARLY STAGE
STARTUPS
HAVE CHANGED

5. @paulsingh @pdxs
STARTUP COSTS
LOWER THAN EVERBUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING

6. @paulsingh @pdxs
WEB GETS BIGGER.
WORLD GETS SMALLER.

7. @paulsingh @pdxs
TRACTION IS THE NEW
INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

8. @paulsingh @pdxs
CAPITAL
INCREASINGLY
COMMODITIZEDRISE OF THE ANGELS, YO!

9. @paulsingh @pdxs
NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!

10. @paulsingh @pdxs
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

11. @paulsingh @pdxs
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

12. @paulsingh @pdxs
TRANSPARENCY IS
SIGNALS ARE
EVERYWHEREBIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

13. @paulsingh @pdxs
WALL STREET
BEAT US TO IT

14. @paulsingh @pdxs

15. @paulsingh @pdxs
UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE ANALYSIS
POINTS TO AN
INTERESTING CADENCE
INTRA-QUARTER AND
POTENTIAL UPSIDE TO
OUR VIEW.
“

16. @paulsingh @pdxs

17. @paulsingh @pdxs
TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHING’S TANK
FARMS ON AN OIL
INDUSTRY SPYING
MISSION.
“

18. @paulsingh @pdxs
WALL STREET
ISN’T ALONETHESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO
FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO
LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.

19. @paulsingh @pdxs
WE CAN DO IT, TOOSURPRISE!
IT TURNS OUT,

20. @paulsingh @pdxs

21. @paulsingh @pdxs
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.

22. @paulsingh @pdxs
WE CAN DO IT, TOO.

23. @paulsingh @pdxs
WE CAN DO IT, TOO.

24. @paulsingh @pdxs
WE’RE DOING IT, TOO.

25. @paulsingh @pdxs

26. @paulsingh @pdxs
VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.
“
-- NAVAL RAVIKANT (@naval)

27. @paulsingh @pdxs
EARLY STAGE VC
IS CHANGING
HAS CHANGED

28. @paulsingh @pdxs
STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED

29. @paulsingh @pdxs
UNBUNDLING OF
ADVICE, CONTROL
AND MONEY

30. @paulsingh @pdxs
USED TO BE ABOUT
CAPITAL, DEALFLOW
AND JUDGEMENTTODAY, IT’S ABOUT ACCESS.

31. @paulsingh @pdxs
(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 @pdxs
(NEW) FINANCINGS

33. @paulsingh @pdxs
(NEW) FINANCINGS
Standardized terms

34. @paulsingh @pdxs
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads

35. @paulsingh @pdxs
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds

36. @paulsingh @pdxs
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float

37. @paulsingh @pdxs
(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 @pdxs
(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 @pdxs
BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
INFORMATION.
“
-- MICHAEL LEWIS

40. @paulsingh @pdxs
THE PRIVATE MARKET IS
BECOMING MORE EFFICIENT.
AND, SOON, MORE LIQUID.

41. @paulsingh @pdxs
@paulsingh・paul@dashboard.io・resultsjunkies.com
THE EVOLUTION OF THE
PRIVATE MARKET
THE RISE OF THE ANGELS (AND THE ENTREPRENEURS)
LEARN MORE:
events.dashboard.io/paradoxos OR text “DASH you@email.com” to 51303