redesign of 500 startups' deck - "building startup ecosystems"

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Post on 26-Aug-2014

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We're big fans of Dave and his team at 500 Startups, so we decided to clean up and redesign Dave's annual presentation at the 2014 MENA Angel Investors Summit, "Changes in Venture Capital + Building Startup Ecosystems". Hope you and they appreciate it! P.S. Hey, 500 crew, shoot us a note if you'd like us to send over the source files + artwork.

TRANSCRIPT

  • Changes in Venture Capital +Building Startup Ecosystems @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014
  • What is 500 Startups? Changes in Tech & VC Lean VC = Quantitative Venture Capital Building Startup Ecosystems Global Entrepreneurship Q & A This Talk.. @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014
  • Dave McClure Founding Partner & Chief Troublemaker, 500 Startups 00s & 10s VC Founders fund Facebook fbFund 500 Startups Mashery mint.com SlideShare Twilio Wildre SendGrid PayPal Simply Hired mint.com OReilly Angel Marketing 80s & 90s Entrepreneur Developer Engineer Aslan Computing (acqd by Servinet / Panurgy) Windows / SQL DB consultant (Intel, MSFT) John Hopkins88 BS Eng / Applied Math
  • 500 Startups Global Seed Fund & Startup Accelerators @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 $100M silicon valley VC fund + startup accelerator 30+ people / 10 investing partners Locations: SV, NYC, MEX, BRZ, IND, CHN, SE Asia 1500+ Founders / 200+ mentors Community + Content + Conferences Wildre acq GOOG $350M MakerBot acq SSYS $400M Viki acq Rakuten $200M Simple acq BBVA $117M Twilio SendGrid CreditKarma Udemy What is 500? 750+ Portfolio Cos 40+ Countries
  • 500 Startups: Global Seed Fund Over 200+ startups outside US, in 40+ countries Regional Coverage areas Countries where weve invested People on the ground San Francisco Silicon Valley Mexico City Brazil New York India China Southeast Asia @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014
  • What is 500 Startups? Changes in Tech & VC Lean VC = Quantitative Venture Capital Building Startup Ecosystems Global Entrepreneurship Q & A This Talk.. @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014
  • Industry Changes Startup Efciency, Reduced Capital Costs Growing Market, Distribution Platforms Financial Market Crises (2000, 2008) Lean Startups Micro VC: Seed Funds (ex: First Round Capital) Incubators & Accelerators (ex: Y Combinator, 500) Funding Platforms (ex: Angel List, Kickstarter) Growing Global Market of Angel Investors @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 more info: http://PreMoney.co (June 27th, San Francisco)
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 LESS Capital required to build product, get to market MORE Customers via Online platforms (100M+ users) LOTS of little bets: Accelerators, Angels, Angel List,Small Exits Access to Online Platforms Dramatically Reduced Cost Funding Platforms Accelerators Social Fast, Cheap Fail, network effects, quantitative + iterative investments Y Combinator, TechStars, 500 Startups Capital + Co-working + Mentoring Mobile Media Design Data Distribution servers software bandwidth KickStarter Angel List Funders Club, etc 100M-1B+ consumers, smallbiz, etc Google Facebook Twitter Apple Android YouTube Pinterest Instagram Tumblr Search Angels? Small Exits? Changes in Tech Startups
  • Daft Punk Startup: Simpler, Faster, Cheaper, Smarter After 2008 Before & After 2 Dot-Com Crashes Big, Fat, Dinosaur Startup Lean, Little, Cockroach Startup Sun Servers Oracle DB Exodus Hosting 12 - 24 mo dev cycle 6- 18mo sales cycle 3B people online Beta (~6-12 months) Scale Customer Adoption > Many people use it and they pay. Test Marketing Campaigns, Customer Acquisition, Channels + Cost Improve Design & Usability, Setup Conversion Metrics Determine Org Structure, Key Hires
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Structure Make Money (or Go Big), Get to Sustainability Future Milestones: Protable / Sustainable, Exit Options Prove / Expand Market, Operationalize Business Investment Stage #3: Revenue Validation + Growth 5 - 25 person team $1M - $10M Investment Seed & Venture Investors Beta > Production (~12-24 months) Revenue / Growth > We can Make (a lot of) Money! Scalability & Infrastructure, Customer Service & Operations Connect with Distribution Partners, Expand Growth
  • What is 500 Startups? Changes in Tech & VC Lean VC = Quantitative Venture Capital Building Startup Ecosystems Global Entrepreneurship Q & A This Talk.. @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Critical Ecosystem Factors Silicon Valley Knowledge People Infrastructure Product Customers Monetization Exits Optimism & Belief Mentorship + Education Universities + Companies Capital, Legal, Finance Engineering + Design / UX Platforms + Distribution Online Payment IPO / M&A Market
  • Startup Investor Ecosystem @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Bootstrap, KickStarter, Crowdfunding Y-Combinator Tech Stars SV Angel (Conway) Floodgate (Maples) First Round Union Square Atomico Greylock True A16Z Sequoia Foundry Angels & Incubators ($0-10M) Micro-VC Funds ($10-100M) Big VC Funds ($100-500M) Mega VC Funds (>$500M) SoftTech (Clavier) Felicis (Senkut)
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Example Startup Ecosystem 1,000 Bootstrap Startups 300 Accelerator Startups 100 Seed-Stage Startups 30 Series A / B Startups 10 Later-Stage Companies 1-3 Mature Company IPOs - $0-10K - $10-100K - $100K- $1M - $1-10M - $10-100M - $100M+
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Entrepreneur Education Business Plans Functional Prototypes Lean Startup Software Engineering / Design & UX Online Marketing / Unit Economics Monetization & Payments Online Payment IPO / M&A Market
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Investor Education Startups are NOT Real Estate Most Startups Fail/ Power Law Returns Portfolio Approach (10 - 20+ investments) Exits & Liquidity Legal Structure, Financial Structure Syndication + Co-Investment Access to Downstream Capital
  • What is 500 Startups? Changes in Tech & VC Lean VC = Quantitative Venture Capital Building Startup Ecosystems Global Entrepreneurship Q & A This Talk.. @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 Local vs Global? Wealthy Global Users Shoppers Travelers Emerging / Developing Markets Global Languages English Chinese Spanish Arabic Critical Factors Education Mentorship Capital Capital Availability Incubation Seed Series A Positive Macro SmartPhones Tablets Payments Logistics Growing Middle Class Distribution Platforms Users
  • @ Dave McClure - Founding Partner @ 500 Startups http://500.co #MENAsummit Bahrain - May 2014 500.co (our company) 500hats.com (my blog) angel.co/500startups (our fund) Dave McClure, @DaveMcClure More Info? Questions? Comments?