the business of (tech) startups featuring paul singh

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

#HighAlphaIdeas

HIGH ALPHA SPEAKER SERIES

Thanks to our partners at

@paulsingh #RJTechTour

THE BUSINESS OF (TECH) STARTUPS

MONEYBALL FOR STARTUPS. AND CITIES.


angel.co/paulsingh twitter.com/paulsingh

old school: [email protected]

mailto:[email protected]


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.


500 STARTUPS


I BOUGHT A TRUCK. AND AN AIRSTREAM.


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

http://www.resultsjunkies.com/tech-tour


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

http://www.resultsjunkies.com/tech-tour


API TO VENTURE CAPITAL & FUNCTIONAL EXPERTISE

THE BIG OPPORTUNITY IN EARLY STAGE TECH INVESTING:

(FOR FOUNDERS. FOR INVESTORS. FOR GOVERNMENT.)


TECHNOLOGY IS THE FUNDAMENTAL DRIVER OF

GROWTH IN THE INDUSTRIALIZED WORLD


OPPORTUNITIES HAVE NEVER BEEN GREATER


MOBILE IS EATING THE WORLD


INNOVATION WILL COME FROM VENTURE CAPITAL


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


EARLY STAGE STARTUPS HAVE CHANGED


STARTUP COSTS LOWER THAN EVER

BUT SCALING STILL COSTS MONEY

CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING


Sept

embe

r 12,

201

4


WEB GETS BIGGER. WORLD GETS SMALLER.


TRACTION IS THE NEW INTELLECTUAL PROPERTY

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


CAPITAL INCREASINGLY COMMODITIZED

RISE OF THE ANGELS, YO!


NEW REALITY: MONEY FOLLOWS

FOUNDERSRISE OF THE ENTREPRENEURS, YO!


SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC


TRANSPARENCY IS SIGNALS ARE EVERYWHERE

BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC


WALL STREET BEAT US TO IT


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

“


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

“


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.


WE CAN DO IT, TOOSURPRISE!

IT TURNS OUT,


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


WE CAN DO IT, TOO.


WE’RE DOING IT, TOO.


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

“

-- NAVAL RAVIKANT (@naval)


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


ECONOMIC DEVELOPMENT HAS CHANGED


THE AGE OF THE INDUSTRIAL CITY

IS OVER


NOW POSSIBLE TO BUILD BILLION DOLLAR

COMPANIES IN T-SHIRTS FROM A COUCH


FROM ANYWHERE*


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


NEAR PERFECT CORRELATION BETWEEN

URBANIZATION AND PROSPERITY


NEAR PERFECT CORRELATION BETWEEN PRESENCE OF SMALL

FIRMS AND THE LATER GROWTH OF A REGION*


PROXIMITY IS VALUABLE


TECH COMPANIES WILL NEVER CREATE THE MAJORITY OF JOBS


TECH COMPANIES HAVE A DISPROPORTIONATELY

POSITIVE EFFECT ON THE ECONOMY


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

TECH OR NOT


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

“-- ENRICO MORETTI


MODERN ECONOMIC DEV

PEOPLE > STRUCTURES


KEY IDEA

GET MORE PEOPLE TO *START* COMPANIES


A FEW IDEAS...


(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


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


LOOK AT WHAT OTHER CITIES ARE DOING (AND COPY THE

RELEVANT PARTS)


INVESTORS: INVEST OUTSIDE YOUR

REGION, BRING THE BEST FOUNDERS TO YOUR CITY


HUGE OPPORTUNITY AT THE POST-SEED,

PRE-A LEVEL


EVEN MORE TAKEAWAYS

Focus on Traction.

Learn to Communicate and Inspire.


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

http://resultsjunkies.com


TECHNOLOGY IS THE FUNDAMENTAL DRIVER OF

GROWTH IN THE INDUSTRIALIZED WORLD


angel.co/paulsingh twitter.com/paulsingh

old school: [email protected]

mailto:[email protected]

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

#HighAlphaIdeas

HIGH ALPHA SPEAKER SERIES

Thanks to our partners at

the business of (tech) startups featuring paul singh

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