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Logan Bartlett - Mattermark Webinar 4.30.2015
The document presents insights on the startup ecosystem, highlighting the decreasing cost of starting companies, the rise of micro VCs, and trends for 2015. It discusses historical methods of venture deal sourcing, the impact of data on this practice, and offers advice for founders to stay lean and understand potential funding sources. The overarching message emphasizes the importance of building value and adapting to the evolving market landscape.
Logan Bartlett - Mattermark Webinar 4.30.2015
- 2. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 2 Agenda • Who Am I? • State of the Start-Up Ecosystem • How Have VCs Found Deals Historically? • How has Data Impacted Venture Sourcing? • Trends for 2015 • Advice for Founders • Q&A
- 3. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 3 Who Am I? • Investor at Battery Ventures focused on B2B software investing • Battery typically looks to write checks between $8 and $25M • Active with our firm’s investments in Coupa, Glassdoor and Yesware • www.loganvc.com
- 4. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 4 State of the Start-Up Ecosystem
- 5. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 1. Cost of starting a company is decreasing 5 Source: Mark Suster – Upfront Ventures
- 6. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 2. Proliferation of micro vc and microbrews 6 Source: CB Insights
- 7. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 3. Smart minds aren’t running to Wall Street 7 Source: Zero Hedge
- 8. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 4. Market sizes are expanding 8 Source: Packetworks
- 9. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 5. Distribution is enhancing market velocity 9
- 10. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 6. Companies are staying private longer 10 Source: Mark Suster – Upfront Ventures
- 11. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 7. Public money is playing in private markets 11 Source: CB Insights
- 12. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 12 So…….. what??
- 13. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 13
- 14. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Valuations go up… 14 Source: Pitchbook
- 15. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Round sizes go up… 15 Source: Tom Tunguz - Redpoint
- 16. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Unicorns go up… 16 Source: CB Insights
- 17. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … And winners take all 17 Source: Play Bigger Advisors, LLC. #1 in Market, 76% All Others in Market, 24%
- 18. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 18 Entrepreneurs should be all like….
- 19. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 19 Because great companies are started in all markets 0 1,000 2,000 3,000 4,000 5,000 6,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nasdaq For a full list of all Battery investments and exits, please visit www.battery.com Nasdaq
- 20. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 20 You just need to keep building value …
- 21. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 21 … and growing up and to the right
- 22. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 How Have VCs Found Deals Historically? 22
- 23. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Method 1: Smile and dial 23
- 24. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Method 2: Networking and referrals 24
- 25. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 How has Data Impacted Venture Sourcing? 25
- 26. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 The Godfathers: LinkedIn and TechCrunch 26 • LinkedIn provided new insights into both companies and employees • Crunchbase crowdsourced funding information and provided extensive coverage on the start-up ecosystem
- 27. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Commercialization for the have nots 27 • Companies like Facebook, Netflix, LinkedIn, Twitter, AirBnB etc. built tools to handle their scale that were later commercialized • Mattermark took practices that were done at the top venture firms and institutionalized it for the masses… . … and made it searchable by investor, stage, business model etc.
- 28. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Tools have proliferated 28 Company-Focused People-Focused For a full list of all Battery investments and exits, please visit www.battery.com
- 29. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 29 So…….. what??
- 30. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Targeted outreach 30
- 31. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Trends for 2015 31
- 32. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 More dinosaurs gonna die 32 Bubble, My Ass: Some Unicorns Might Be Overvalued, But All Dinosaurs Gonna Die. By Dave McClure
- 33. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 More security breaches are coming 33
- 34. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Advice for Founders 34
- 35. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Stay lean and talk to all potential customer… 35
- 36. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … and diligence VCs before reaching out 36
- 37. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Don’t optimize for valuation early … 37
- 38. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … because it’s a long journey 38
- 39. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 … but a fun one 39
- 40. © 2015 ALLRIGHTS RESERVED ● MATTERMARK.COM ● (415) 366-6587 Q&A 40