the business of (tech) startups featuring paul singh

The Business of (Tech) StartupsPaul Singh, Entrepreneur, Investor, & Speaker @paulsingh

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@paulsingh #RJTechTour

THE BUSINESS OF (TECH) STARTUPS

MONEYBALL FOR STARTUPS. AND CITIES.

@paulsingh #RJTechTour

angel.co/paulsingh twitter.com/paulsingh

old school: paul@resultsjunkies.com

@paulsingh #RJTechTour

WHY?1. Technology is the fundamental driver of

growth in the industrialized world. And it’s changing the way we work.

2. Private market investing is (one of) the few remaining ways for the average person to create significant wealth.

@paulsingh #RJTechTour

500 STARTUPS

@paulsingh #RJTechTour

@paulsingh #RJTechTour

@paulsingh #RJTechTour

@paulsingh #RJTechTour

I BOUGHT A TRUCK. AND AN AIRSTREAM.

@paulsingh #RJTechTour

2016 TECH TOUR Tallahassee, FL

Vancouver, BC

Kelowna, BC

Shreveport, LA

Pittsburgh, PA

Tulsa, OK

Los Alamos, NM

Las Vegas, NV

Lincoln, NE

Waterloo, ON

Helena, MT

Syracuse, NY

Columbus, OH

And 17 more…

more info: www.resultsjunkies.com/tech-tour

@paulsingh #RJTechTour

more info: www.resultsjunkies.com/tech-tour

@paulsingh #RJTechTour

API TO VENTURE CAPITAL & FUNCTIONAL EXPERTISE

THE BIG OPPORTUNITY IN EARLY STAGE TECH INVESTING:

(FOR FOUNDERS. FOR INVESTORS. FOR GOVERNMENT.)

@paulsingh #RJTechTour

TECHNOLOGY IS THE FUNDAMENTAL DRIVER OF

GROWTH IN THE INDUSTRIALIZED WORLD

@paulsingh #RJTechTour

OPPORTUNITIES HAVE NEVER BEEN GREATER

@paulsingh #RJTechTour

@paulsingh #RJTechTour

MOBILE IS EATING THE WORLD

@paulsingh #RJTechTour

INNOVATION WILL COME FROM VENTURE CAPITAL

@paulsingh #RJTechTour

MONEYBALL FOR STARTUPS IT’S NOT SPRAY AND PRAY. IT’S A PROCESS.

@paulsingh #RJTechTour

EARLY STAGE STARTUPS HAVE CHANGED

@paulsingh #RJTechTour

STARTUP COSTS LOWER THAN EVER

BUT SCALING STILL COSTS MONEY

CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING

@paulsingh #RJTechTour

Sept

embe

r 12,

201

4

@paulsingh #RJTechTour

WEB GETS BIGGER. WORLD GETS SMALLER.

@paulsingh #RJTechTour

@paulsingh #RJTechTour

TRACTION IS THE NEW INTELLECTUAL PROPERTY

PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE. NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

@paulsingh #RJTechTour

@paulsingh #RJTechTour

CAPITAL INCREASINGLY COMMODITIZED

RISE OF THE ANGELS, YO!

@paulsingh #RJTechTour

NEW REALITY: MONEY FOLLOWS

FOUNDERSRISE OF THE ENTREPRENEURS, YO!

@paulsingh #RJTechTour

SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

@paulsingh #RJTechTour

SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

@paulsingh #RJTechTour

TRANSPARENCY IS SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

@paulsingh #RJTechTour

WALL STREET BEAT US TO IT

@paulsingh #RJTechTour

@paulsingh #RJTechTour

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

“

@paulsingh #RJTechTour

@paulsingh #RJTechTour

TWICE A WEEK A SMALL HELICOPTER CIRCLES OVER CUSHING’S TANK FARMS ON AN OIL INDUSTRY SPYING MISSION.

“

@paulsingh #RJTechTour

WALL STREET ISN’T ALONE

THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO LENDING,

HOME/PERSONAL/AUTO INSURANCE AND MORE.

@paulsingh #RJTechTour

WE CAN DO IT, TOOSURPRISE!

IT TURNS OUT,

@paulsingh #RJTechTour

+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.

@paulsingh #RJTechTour

WE CAN DO IT, TOO.

@paulsingh #RJTechTour

WE CAN DO IT, TOO.

@paulsingh #RJTechTour

WE’RE DOING IT, TOO.

@paulsingh #RJTechTour

@paulsingh #RJTechTour

VENTURE CAPITAL IS OPEN TO ATTACK BY DISRUPTIVE NEW BUSINESS MODELS AND TECHNOLOGY.

“

-- NAVAL RAVIKANT (@naval)

@paulsingh #RJTechTour

MONEYBALL FOR CITIES START MORE COMPANIES. WATCH YOUR FUTURE JOBS APPEAR.

@paulsingh #RJTechTour

ECONOMIC DEVELOPMENT HAS CHANGED

@paulsingh #RJTechTour

THE AGE OF THE INDUSTRIAL CITY

IS OVER

@paulsingh #RJTechTour

NOW POSSIBLE TO BUILD BILLION DOLLAR

COMPANIES IN T-SHIRTS FROM A COUCH

@paulsingh #RJTechTour

FROM ANYWHERE*

@paulsingh #RJTechTour

MORE THAN TRADITIONAL INDUSTRIES, THE KNOWLEDGE ECONOMY HAS AN INHERENT TENDENCY TOWARDS GEOGRAPHIC AGGLOMERATION. IN THIS CONTEXT, INITIAL ADVANTAGES MATTER, AND THE FUTURE DEPENDS HEAVILY ON THE PAST.

THE SUCCESS OF A CITY FOSTERS MORE SUCCESS, AS COMMUNITIES THAT CAN ATTRACT SKILLED WORKERS AND GOOD JOBS TEND TO ATTRACT EVEN MORE.

“

-- ENRICO MORETTI

@paulsingh #RJTechTour

NEAR PERFECT CORRELATION BETWEEN

URBANIZATION AND PROSPERITY

@paulsingh #RJTechTour

NEAR PERFECT CORRELATION BETWEEN PRESENCE OF SMALL

FIRMS AND THE LATER GROWTH OF A REGION*

@paulsingh #RJTechTour

PROXIMITY IS VALUABLE

@paulsingh #RJTechTour

TECH COMPANIES WILL NEVER CREATE THE MAJORITY OF JOBS

@paulsingh #RJTechTour

TECH COMPANIES HAVE A DISPROPORTIONATELY

POSITIVE EFFECT ON THE ECONOMY

@paulsingh #RJTechTour

WHAT HAPPENS IN THE TECH SECTOR DETERMINES THE SALARY OF MOST PEOPLE, WHETHER THEY WORK IN

TECH OR NOT

@paulsingh #RJTechTour

ALTHOUGH JOBS IN LOCAL SERVICES CONSTITUTE THE VAST MAJORITY OF JOBS, THEY ARE THE EFFECT, NOT THE CAUSE, OF ECONOMIC GROWTH.

“-- ENRICO MORETTI

@paulsingh #RJTechTour

MODERN ECONOMIC DEV

PEOPLE > STRUCTURES

@paulsingh #RJTechTour

KEY IDEA

GET MORE PEOPLE TO *START* COMPANIES

@paulsingh #RJTechTour

A FEW IDEAS...

@paulsingh #RJTechTour

(500) CHECKLISTProduct 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

@paulsingh #RJTechTour

Demo Day Videos ⟹ livestream.com/500startups

Sample Pitch Decks ⟹ slideshare.net/500startups

Venture Capital 101 ⟹ venturehacks.com/archives

Investor Thoughts:

Brad Feld ⟹ feld.com

Fred Wilson ⟹ avc.com

Chris Dixon ⟹ cdixon.org

Mark Suster ⟹ bothsidesofthetable.com

angel.co/valuations and angel.co/salaries

@paulsingh #RJTechTour

LOOK AT WHAT OTHER CITIES ARE DOING (AND COPY THE

RELEVANT PARTS)

@paulsingh #RJTechTour

INVESTORS: INVEST OUTSIDE YOUR

REGION, BRING THE BEST FOUNDERS TO YOUR CITY

@paulsingh #RJTechTour

HUGE OPPORTUNITY AT THE POST-SEED,

PRE-A LEVEL

@paulsingh #RJTechTour

EVEN MORE TAKEAWAYS

Focus on Traction.

Learn to Communicate and Inspire.

@paulsingh #RJTechTour

ALSO... Distribution > Product

Tactics > Strategy

Notability > Credibility

Get on AngelList

Raise 12-18+ months of funding

Learn the basics of VC economics

Don’t confuse due diligence with progress & probability...

Shameless plug: resultsjunkies.com

@paulsingh #RJTechTour

TECHNOLOGY IS THE FUNDAMENTAL DRIVER OF

GROWTH IN THE INDUSTRIALIZED WORLD

@paulsingh #RJTechTour

angel.co/paulsingh twitter.com/paulsingh

old school: paul@resultsjunkies.com

The Business of (Tech) StartupsPaul Singh, @paulsingh Kristian Andersen, @kristianindy

#HighAlphaIdeas

HIGH ALPHA SPEAKER SERIES

Thanks to our partners at