This document discusses lessons learned from the Snapfish story and what investors look for in founders and companies. It provides key takeaways from Snapfish including focusing on passion, hiring strong talent, and being open to change. For investors, they seek experienced internet-focused teams tackling big problems, that can execute quickly and have a recurring revenue model. Investors also look for founders who are product-obsessed, can code, are well-connected, and have a track record of success.

1. #FounderHacks
Raj Kapoor
Founder & Managing Director, cofounder.co
Venture Partner, Mayfield Fund
Investing in Relationships

2. #TrendingTopics
Lessons from Snapfish What Investors Look For
Silicon Valley or Not? cofounder.co

3. The Snapfish story

4. Role models are critical

5. The Aha Moment
Household Internet Connections (M)
20
15
10
Cable
ADSL
Total Broadband
5
0
1998 1999 2000 2001 2002

6. Build people networks

7. Know when to cut the cord;
timing matters

8. Cofounders recommended–
fill the gaps
Product/Ops Leadership/Product
BD/Schmoozing Tech w/ Business

9. Early it’s 100% funding,
product & recruiting

10. Raise money whenever
you can...
...either before
launch or way after

11. The harsh reality of the
marketplace
3200
2560
The Snapfish Solution:
1920 Free Processing
Customers
1280
640
4/3/2000 4/30/2000 5/7/2000 5/21/2000 5/28/2000

12. The harsh reality of the
marketplace
3200
2560
The Snapfish Solution:
1920 Free Processing
Customers
1280
640
4/3/2000 4/30/2000 5/7/2000 5/21/2000 5/28/2000

13. Dealing with failure
300
iVillage
The Street.Com
225
The Globe
Marketwatch
Priceline
Etoys
Drugstore
150
Egghead
Ashford
75
0

14. Hunker down, pivot &
hope to catch a wave
Present Future

15. When it’s working, step on it
50,000,000
37,500,000
25,000,000
12,500,000
0
00
01
01
02
03
04
04
2Q
1Q
4Q
3Q
2Q
1Q
4Q

16. Another tough but
fortunate choice
Investing in Relationships

17. Capitalize on luck & timing

18. Top 10 takeaways from Snapfish

19. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it

20. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut

21. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious

22. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident

23. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident
5. Sell what THEY want, not what YOU want

24. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident
5. Sell what THEY want, not what YOU want
6. Hire people better than you

25. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident
5. Sell what THEY want, not what YOU want
6. Hire people better than you
7. You’re always raising money

26. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident
5. Sell what THEY want, not what YOU want
6. Hire people better than you
7. You’re always raising money
8. Hypothesize, get to market quickly, iterate often

27. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident
5. Sell what THEY want, not what YOU want
6. Hire people better than you
7. You’re always raising money
8. Hypothesize, get to market quickly, iterate often
9. Plan, but be open to change

28. Top 10 takeaways from Snapfish
1. Don’t wait for inspiration – grab it
2. Data only goes so far; invest in your gut
3. Passion is infectious
4. Be crisp and confident
5. Sell what THEY want, not what YOU want
6. Hire people better than you
7. You’re always raising money
8. Hypothesize, get to market quickly, iterate often
9. Plan, but be open to change
10. Balance IS possible (well, sometimes)

29. What investors are looking for

30. Tectonic shifts create
opportunity
Mobile
Video
Social
UGC
Search

31. Other big trends
Connected TVs Professionals Platforms Services Marketplace
(Similar to mobile with the iPhone) (Individuals become the brand)
Ecommerce is New Relationship Education Disrupted
mainstream in BRIC Graphs

32. Two Consumer Founder Types
Disruptive New Media Destinations
• Youthful founders • Experienced founders
• Product driven • Execution-driven
• Network effects • Marketplace model
• Viral loops • Organic traffic
• Broad based adoption – advantage
100M+ user scale • Highly monetizable
• Momentum vs black swan vertical

33. B2B/Infrastructure criteria

34. B2B/Infrastructure criteria
• Experienced internet-focused team

35. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin

36. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment

37. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model

38. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees

39. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees
• Avoid the CIO

40. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees
• Avoid the CIO
• Provides immediate benefit or cost reduction

41. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees
• Avoid the CIO
• Provides immediate benefit or cost reduction
• Leverages new features of internet

42. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees
• Avoid the CIO
• Provides immediate benefit or cost reduction
• Leverages new features of internet
• Data targeting, social, video, RTB, mobile

43. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees
• Avoid the CIO
• Provides immediate benefit or cost reduction
• Leverages new features of internet
• Data targeting, social, video, RTB, mobile
• Future platform opportunity vs “Feature”

44. B2B/Infrastructure criteria
• Experienced internet-focused team
• Pain killer vs vitamin
• Frictionless deployment
• Grass roots sales model
• Open source, social media, sell to employees
• Avoid the CIO
• Provides immediate benefit or cost reduction
• Leverages new features of internet
• Data targeting, social, video, RTB, mobile
• Future platform opportunity vs “Feature”
• Recurring revenue business

45. Looking for great founders

46. Looking for great founders
• They know or know of them WELL via network

47. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession

48. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly

49. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly
• Deep understanding of business, metrics and product

50. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly
• Deep understanding of business, metrics and product
• Big vision AND solid execution

51. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly
• Deep understanding of business, metrics and product
• Big vision AND solid execution
• Well connected

52. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly
• Deep understanding of business, metrics and product
• Big vision AND solid execution
• Well connected
• Know what an A+ player looks like

53. Looking for great founders
• They know or know of them WELL via network
• Product/user obsession
• Founders who can code and move quickly
• Deep understanding of business, metrics and product
• Big vision AND solid execution
• Well connected
• Know what an A+ player looks like
• Don’t need a perfect CEO, but need to be “self aware”

54. General tips pitching VCs

55. General tips pitching VCs
✓ Know your TAM – bottoms up

56. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?

57. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?

58. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy

59. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?

60. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?
✓ Show network effect or why model is disruptive vs incremental to incumbents

61. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?
✓ Show network effect or why model is disruptive vs incremental to incumbents
✓ Map out serial risk reduction

62. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?
✓ Show network effect or why model is disruptive vs incremental to incumbents
✓ Map out serial risk reduction
✓ Raise at least 18 months of capital if it’s early stage

63. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?
✓ Show network effect or why model is disruptive vs incremental to incumbents
✓ Map out serial risk reduction
✓ Raise at least 18 months of capital if it’s early stage
✓ Control the process and timing

64. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?
✓ Show network effect or why model is disruptive vs incremental to incumbents
✓ Map out serial risk reduction
✓ Raise at least 18 months of capital if it’s early stage
✓ Control the process and timing
✓ Create relationships with VCs well in advance of fundraise

65. General tips pitching VCs
✓ Know your TAM – bottoms up
✓ Is $100M revenue realistic?
✓ Is VC or angel funding better?
✓ Proof team is business & product savvy
✓ Is there a true competitive advantage vs execution?
✓ Show network effect or why model is disruptive vs incremental to incumbents
✓ Map out serial risk reduction
✓ Raise at least 18 months of capital if it’s early stage
✓ Control the process and timing
✓ Create relationships with VCs well in advance of fundraise
✓ Try to get everyone on the same timetable

66. Silicon Valley..... or not?

67. 46%
of VC dollars in Q2
went to Silicon Valley
(Only 12% went to the second place)

68. 75%
75%
of ALL venture returns
are in Silicon Valley

69. The good

70. The good
• Change the world vs make a buck

71. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself

72. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself
• Massive information advantage

73. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself
• Massive information advantage
• People-driven transactions

74. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself
• Massive information advantage
• People-driven transactions
• Talent has DNA to go big and scale

75. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself
• Massive information advantage
• People-driven transactions
• Talent has DNA to go big and scale
• Competition to push you hardest

76. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself
• Massive information advantage
• People-driven transactions
• Talent has DNA to go big and scale
• Competition to push you hardest
• Product rules

77. The good
• Change the world vs make a buck
• Pay it forward vs look out for yourself
• Massive information advantage
• People-driven transactions
• Talent has DNA to go big and scale
• Competition to push you hardest
• Product rules
• Not just a location; it’s a mindset

78. The ugly

79. The ugly
• Cost of living

80. The ugly
• Cost of living
• Talent war

81. The ugly
• Cost of living
• Talent war
• Relationship driven*

82. The ugly
• Cost of living
• Talent war
• Relationship driven*
• *unless you have amazing momentum

83. The ugly
• Cost of living
• Talent war
• Relationship driven*
• *unless you have amazing momentum
• Weather...... NOT!

84. The bottom line

85. The bottom line
• Silicon Valley if:

86. The bottom line
• Silicon Valley if:
• You are thinking BIG

87. The bottom line
• Silicon Valley if:
• You are thinking BIG
• You like swimming with SHARKS

88. The bottom line
• Silicon Valley if:
• You are thinking BIG
• You like swimming with SHARKS
• Product/service EXCELLENCE matters

89. The bottom line
• Silicon Valley if:
• You are thinking BIG
• You like swimming with SHARKS
• Product/service EXCELLENCE matters
• You have the RELATIONSHIPS or momentum

90. The bottom line
• Silicon Valley if:
• You are thinking BIG
• You like swimming with SHARKS
• Product/service EXCELLENCE matters
• You have the RELATIONSHIPS or momentum
• You like GOOD weather and wine

91. What is Cofounder.co?

92. What’s missing?

93. What’s missing?
• Entrepreneurs looking for help, not just money

94. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs

95. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder

96. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder
• Time is more precious than capital for the best

97. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder
• Time is more precious than capital for the best
• Where do they get time, experience and deep help?

98. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder
• Time is more precious than capital for the best
• Where do they get time, experience and deep help?
• 100+ key decisions every year

99. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder
• Time is more precious than capital for the best
• Where do they get time, experience and deep help?
• 100+ key decisions every year
• Provide help longer than 3 months

100. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder
• Time is more precious than capital for the best
• Where do they get time, experience and deep help?
• 100+ key decisions every year
• Provide help longer than 3 months
• Expertise to avoid mistakes

101. What’s missing?
• Entrepreneurs looking for help, not just money
• Accelerators, incubators, angels, mentors/advisors, VCs
• 95% of entrepreneurs want a cofounder
• Time is more precious than capital for the best
• Where do they get time, experience and deep help?
• 100+ key decisions every year
• Provide help longer than 3 months
• Expertise to avoid mistakes
The time is right for a new model...

102. The solution

103. The solution
• Standardize part-time cofounder role

104. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions

105. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max

106. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only

107. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only
• Deep relationships

108. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only
• Deep relationships
• Capital, talent, partnerships & exits

109. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only
• Deep relationships
• Capital, talent, partnerships & exits
• Curated service provider to help right away

110. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only
• Deep relationships
• Capital, talent, partnerships & exits
• Curated service provider to help right away
• Alignment as cofounder vs investor

111. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only
• Deep relationships
• Capital, talent, partnerships & exits
• Curated service provider to help right away
• Alignment as cofounder vs investor
• Minority vesting equity – skin in the game

112. The solution
• Standardize part-time cofounder role
• Time & experience for critical decisions
• Day a week cadence – 4-5 companies max
• Experienced founder/CEO/investors only
• Deep relationships
• Capital, talent, partnerships & exits
• Curated service provider to help right away
• Alignment as cofounder vs investor
• Minority vesting equity – skin in the game
• Join at point of cofounder decision

113. If you joined a hands-on model, what
involvement would you expect?
Factor Avg. Rank (out of 12) Top 3 Ranking
Finding talent 3.90 52%
Getting to product/market fit 4.38 45%
Product and Business Strategy 4.50 45%
Financing 5.48 25%
User Acquisition and marketing 5.57 12%
Introductions and network building 6.21 10%
Sales and business development 6.62 32%
CEO/mgmt team mentorship 6.98 24%
Hiring process 7.29 10%
Prioritizing objectives 7.95 3%
Being an active board member 9.36 32%
Helping make an Exit Happen 9.76 10%

114. Which factors are the most important
when looking for a cofounder?
Overall Very Important Somewhat Not
Factor Rating Important Important Important
(4) (3) (2) (1)
Commitment to startup 3.90 93% 5% 2% 0%
Complimentary skill set 3.78 83% 12% 5% 0%
Align with my vision 3.59 64% 32% 5% 0%
They think strategically 3.25 37% 50% 13% 0%
The network they bring 3.12 31% 50% 19% 0%
Technical abilities 3.05 29% 50% 19% 2%
Amount of relevant experience 2.98 25% 47% 28% 10%
Their credibility/reputation 2.71 22% 29% 46% 3%
Willing to invest their own money 2.48 17% 29% 41% 14%
I am or can be friends with them 2.46 12% 34% 41% 12%
Worked together in the past 2.41 19% 27% 29% 24%

115. Long term vision

116. Long term vision
• Build network of top notch operators/investors

117. Long term vision
• Build network of top notch operators/investors
• Some full time, some part-time

118. Long term vision
• Build network of top notch operators/investors
• Some full time, some part-time
• Pool equity to give fund economics

119. Long term vision
• Build network of top notch operators/investors
• Some full time, some part-time
• Pool equity to give fund economics
• Take it global

120. Long term vision
• Build network of top notch operators/investors
• Some full time, some part-time
• Pool equity to give fund economics
• Take it global
Embed an unfair advantage alongside the best entrepreneurs

121. Founders I’m looking for

122. Founders I’m looking for
• Awesome in all ways except experience/network

123. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life

124. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life
• Ambition to create a massive disruptive company

125. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life
• Ambition to create a massive disruptive company
• Strong desire to be CEO but self-aware

126. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life
• Ambition to create a massive disruptive company
• Strong desire to be CEO but self-aware
• Product obsessed builders fit best

127. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life
• Ambition to create a massive disruptive company
• Strong desire to be CEO but self-aware
• Product obsessed builders fit best
• Passion for a sector, not wed to a solution

128. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life
• Ambition to create a massive disruptive company
• Strong desire to be CEO but self-aware
• Product obsessed builders fit best
• Passion for a sector, not wed to a solution
• Started anywhere but move to build company in SV

129. Founders I’m looking for
• Awesome in all ways except experience/network
• Evidence of excellence in your life
• Ambition to create a massive disruptive company
• Strong desire to be CEO but self-aware
• Product obsessed builders fit best
• Passion for a sector, not wed to a solution
• Started anywhere but move to build company in SV
• Open to spending quality time together first

130. Thank you
www.cofounder.co
founders@cofounder.co