@paulsingh #

THE BUSINESS OF
(TECH) STARTUPS
THE (GROWING) INTERSECTION OF VC,
HIGH-GROWTH TECH COMPANIES & CITIES
@paulsingh #
500 STARTUPS
@paulsingh #
A (R)EVOLUTION IN THINKING
@paulsingh # @paulsingh #TiETuesday
EARLY STAGE
STARTUPS
HAVE CHANGED
@paulsingh # @paulsingh #TiETuesday
STARTUP COSTS
LOWER THAN EVER
BUT SCALING STILL COSTS MONEY
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
@paulsingh # @paulsingh #TiETuesday
WEB GETS BIGGER.
WORLD GETS SMALLER.
@paulsingh # @paulsingh #TiETuesday
TRACTION IS THE NEW
INTELLECTUAL PROPERTY
PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER GOOD ENOUGH TO DEPEND ON TECH DIFFERENTIATION.
@paulsingh # @paulsingh #TiETuesday
CAPITAL
INCREASINGLY
COMMODITIZED
RISE OF THE ANGELS, YO!
@paulsingh # @paulsingh #TiETuesday
NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!
@paulsingh #
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #
TRANSPARENCY IS
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC
@paulsingh #
WALL STREET
BEAT US TO IT
@paulsingh #
@paulsingh #
UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE
POINTS TO AN
INTERESTING CADENCE
INTRA-QUARTER AND
POTENTIAL UPSIDE TO
OUR VIEW.

@paulsingh #
@paulsingh #
TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHINGS TANK
FARMS ON AN
INDUSTRY SPYING
MISSION

@paulsingh #
WALL STREET
ISNT ALONE
THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO
FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO
LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.
@paulsingh #
WE CAN DO IT, TOO
SURPRISE!
IT TURNS OUT,
@paulsingh #
+ GUT + TRUSTED MENTORS + MUCH, MUCH MORE DATA.
@paulsingh #
WE CAN DO IT, TOO.
@paulsingh #
WE CAN DO IT, TOO.
@paulsingh #
WERE DOING IT, TOO.
@paulsingh #
@paulsingh #
VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.

-- NAVAL RAVIKANT (@naval)

@paulsingh #
Hubble
more details: hubble.disruption.vc
@paulsingh #
EARLY STAGE VC
IS CHANGING
HAS CHANGED
@paulsingh #
STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED
@paulsingh #
UNBUNDLING OF
ADVICE, CONTROL
AND MONEY
@paulsingh #
USED TO BE ABOUT
CAPITAL, DEALFLOW
AND JUDGEMENT
TODAY, ITS ABOUT ACCESS.
@paulsingh #
@paulsingh #
INCREASINGLY ABOUT
DEAL SELECTION,
NOT DEAL SOURCING.
ITS 2014, YO.
@paulsingh #
Hubble
more details: hubble.disruption.vc
@paulsingh #
(500) CHECKLIST
Product solves a problem for a specic target customer
Capital-efcient businesses - operational @ <$1M funding
Primarily internet-based distribution - search, social, mobile, local
Simple revenue models - transactions, subscriptions or afliate
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 #
(NEW) FINANCINGS
Standardized terms
No xed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to oat
No Board seats at the earliest stage
Herd mentality and oversubscriptions
@paulsingh #
THE FIRST CHECK SHOULD
BE SMALL AND FAST
DOUBLE DOWN HEAVY IF THE COMPANY SURVIVES INTO THE NEXT ROUND
@paulsingh # @paulsingh #TiETuesday
RISK AND
UNCERTAINTY ARE
NOT THE SAME
@paulsingh #
THE BUSINESS OF INVESTING
IS ABOUT CHOOSING THE
LEAST-WORST OPPORTUNITY
NOT TRYING TO PREDICT THE NEXT GOOGLE, FACEBOOK OR LINKEDIN.
@paulsingh #
ECONOMIC
DEVELOPMENT
HAS CHANGED
@paulsingh #
THE AGE OF THE
INDUSTRIAL CITY
IS OVER
@paulsingh #
NOW POSSIBLE TO BUILD
BILLION DOLLAR
COMPANIES IN T-SHIRTS
FROM A COUCH
@paulsingh #
FROM ANYWHERE*
@paulsingh #
MORE THAN TRADITIONAL INDUSTRIES,
KNOWLEDGE ECONOMY HAS AN INHERENT
TENDENCY TOWARDS GEOGRAPHIC
AGGLOMERATION
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 #
NEAR PERFECT
CORRELATION BETWEEN
URBANIZATION AND
PROSPERITY
@paulsingh #
NEAR PERFECT CORRELATION
BETWEEN PRESENCE OF SMALL
FIRMS AND THE LATER
GROWTH OF A REGION*
@paulsingh #
TECH COMPANIES WILL
NEVER CREATE THE
MAJORITY OF JOBS
@paulsingh #
TECH COMPANIES HAVE A
DISPROPORTIONATELY
POSITIVE EFFECT ON THE
ECONOMY
@paulsingh #
WHAT HAPPENS IN THE TECH
SECTOR DETERMINES THE
SALARY OF MOST PEOPLE,
WHETHER THEY WORK IN
TECH OR NOT
@paulsingh #
ALTHOUGH JOBS IN LOCAL SERVICES
CONSTITUTE THE VAST MAJORITY OF JOBS,
THEY ARE THE
ECONOMIC GROWTH.

-- ENRICO MORETTI
@paulsingh #
PROXIMITY IS
VALUABLE
@paulsingh #
MODERN ECONOMIC DEV
PEOPLE > STRUCTURES
@paulsingh #
INVESTORS:
INVEST OUTSIDE YOUR
REGION, BRING THE BEST
FOUNDERS TO YOUR CITY
@paulsingh #
HUGE OPPORTUNITY
AT THE POST-SEED,
PRE-A LEVEL
@paulsingh # @paulsingh #TiETuesday
INVESTORS:
INVEST OUTSIDE YOUR
REGION, BRING THE BEST
FOUNDERS TO YOUR CITY
@paulsingh #
@paulsingh #
@paulsingh #
@paulsingh #
@paulsingh #
BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
INFORMATION.

-- MICHAEL LEWIS
@paulsingh #
THE PRIVATE MARKET IS
BECOMING MORE
ACCESSIBLE.
@paulsingh #
THE PRIVATE MARKET IS
BECOMING MORE
TRANSPARENT.
@paulsingh #
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 #
THE PRIVATE MARKET IS
BECOMING MORE
EFFICIENT.
@paulsingh #
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.
@paulsingh #
ALSO...
Distribution > Product
Tactics > Strategy
Notability > Credibility
Get on AngelList
Raise 12-18+ months of funding
Learn the basics of VC economics
Dont confuse due diligence with progress & probability...
Shameless plug: hubble.disruption.vc
@paulsingh #
TECHNOLOGY IS THE
FUNDAMENTAL DRIVER OF
GROWTH IN THE
INDUSTRIALIZED WORLD
@paulsingh #
LEARN MORE: disruption.vc
THE BUSINESS OF
(TECH) STARTUPS
THE (GROWING) INTERSECTION OF VC,
HIGH-GROWTH TECH COMPANIES & CITIES