@paulsingh

THE BUSINESS OF (TECH) STARTUPSTHE (GROWING) INTERSECTION OF VC,

HIGH-GROWTH TECH COMPANIES & CITIES

@paulsingh

500 STARTUPS

@paulsingh

A (R)EVOLUTION IN THINKING

@paulsingh @paulsingh

EARLY STAGE STARTUPS

HAVE CHANGED

@paulsingh @paulsingh

STARTUP COSTS LOWER THAN EVER

BUT SCALING STILL COSTS MONEY

CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING

@paulsingh @paulsingh

WEB GETS BIGGER. WORLD GETS SMALLER.

@paulsingh @paulsingh

TRACTION IS THE NEW INTELLECTUAL PROPERTYPLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.

NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

@paulsingh @paulsingh

CAPITAL INCREASINGLY COMMODITIZED

RISE OF THE ANGELS, YO!

@paulsingh @paulsingh

NEW REALITY: MONEY FOLLOWS

FOUNDERSRISE 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 LOTFILL RATE POINTS TO AN INTERESTING CADENCE INTRA-QUARTER AND POTENTIAL UPSIDE TO OUR VIEW.

“

@paulsingh

@paulsingh

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

“

@paulsingh

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

WE CAN DO IT, TOOSURPRISE!

IT TURNS OUT,

@paulsingh

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

@paulsingh

WE CAN DO IT, TOO.

@paulsingh

WE CAN DO IT, TOO.

@paulsingh

WE’RE DOING IT, TOO.

@paulsingh

@paulsingh

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

“

-- NAVAL RAVIKANT (@naval)

@paulsingh

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 JUDGEMENTTODAY, IT’S ABOUT ACCESS.

@paulsingh

@paulsingh

INCREASINGLY ABOUT DEAL SELECTION,

NOT DEAL SOURCING.IT’S 2014, YO.

@paulsingh

more details: hubble.disruption.vc

@paulsingh

(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

(NEW) FINANCINGS Standardized terms

No fixed amounts, no closings, no leads

Continuous, not discrete rounds

Prices beginning to float

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

RISK AND UNCERTAINTY ARE

NOT THE SAME

@paulsingh

THE BUSINESS OF INVESTING IS ABOUT CHOOSING THE

LEAST-WORST OPPORTUNITYNOT 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 AGGLOMERATIONADVANTAGES 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

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

Don’t 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) STARTUPSTHE (GROWING) INTERSECTION OF VC,

HIGH-GROWTH TECH COMPANIES & CITIES