Business Rates Alex Thompson Club Management & Governance Manager.
Alex Osadzinski at New Connect Club -
26
1 Alex Osadzinski +1 (650) 854-9500 [email protected] Venture Capital (Almost) everything you wanted to know but were afraid to ask
-
Upload
mfaber -
Category
Economy & Finance
-
view
6.734 -
download
1
description
Alex Osadzinski at New Connect Club - www.ncclub.pl
Transcript of Alex Osadzinski at New Connect Club -
1
Alex Osadzinski+1 (650) 854-9500
Venture Capital(Almost) everything you wanted to know
but were afraid to ask
2
Agenda
Who I amHow (California) venture capital worksWhat VCs look forWhat VCs bring to the tableWhy startups are funUS/Europe differences
3
Me
6 venture funded startups$234B total outcomes
1 large company1 turnaroundCEO, COO, GM, VP Eng/Sales/Mktg7 years at Trinity
4
Trinity Ventures
Founded 1986$1.3B under managementInvesting $300M Trinity IX fund11 investment professionalsEarly stage IT technology investing
….and…
5
Size
6
7
How venture capital works
VentureFund
LimitedPartners
GeneralPartners
PortfolioCompanies
8
Valley of deathValuation
Time
EnthusiasmOptimism
Reality
Results
9
Outcome
VentureFund
LimitedPartners
GeneralPartners
PortfolioCompanies
10
Measurements
IRR2x return in 1 year is 100%But only a 2x
Absolute return3-5x in 3-5 years5x in 4 years is 50% IRRNeed to have a thesis for the 10x
LPs want absolute return and IRR
11
What VCs look for
Disruptive technologyDisruptive business modelsFast executionCapital efficient executionExplosive growthAwesome entrepreneurs and team builders
12
What VCs look for in a company
TeamTechnologyTraction
13
Compare
Entrepreneurs – what I look for
Trust and respectTrack recordConfidence, skill, poiseCollaborative natureRealism (especially in financials)Desire to take on venture capitalWheelbarrow test
14
15
Technology
Trade secret or patented IPSecret sauce – must be hard to replicateNot a one-trick ponyRoadmapLeverages the pastOften times evolutionary
16
Traction
Big marketsAll markets seem to be $1B
Large addressable market – the real TAMBowling pin analogy is trueCrossing the chasm is true
Deal flow
At Trinity3000 plans/referrals -> 500 1st meetings -> 50 actively “worked” -> 10 investments
Deals come fromVCsPortfolioPersonal/firm networksTrusted sources
17
18
Bay Area stats
400,000 people in technology20,000 entrepreneurs
India, China, France, UK, …
6,000 business plans3,000 startups200 funded120 first-time CEOs
19
After the investment
Active board participationFollow-on roundsTeam buildingM&AIPO
What do I do all day?
Leave home 7:30am, get to office 7:42am!300-400 emails5-8 company meetings, 1 hour eachBoard workConferences, beauty contests, panelsLeave work 7pm, get home 7:12pm, or……dinner, usually with a candidate
20
Where do I do all this?
21
Silicon Valley vs London
Better weather Lower taxesEverything is (much) cheaper……..except insane house pricingVibrant tech business environmentVery focused, driven, intense, freneticSomewhat isolated from reality
22
Europe vs US (VC) business
EuropeLarge fragmented marketSophisticationIntrospection and doubtDiffuse infrastructureCultural biasesGovernment regulationNo virtuous circle yet
USHuge marketNaiveteSupreme confidenceTight infrastructureCultural biasesGovernment regulationVirtuous circle
23
Why startups are fun
SpeedFocusAgilitySizeGrowthPersonal responsibility
24
25
Venture capital is…
Simple in conceptComplex in executionGetting tougher all the timePlays a unique role in businessIs unique in Silicon Valley…..and…..Is the best job in the world
