Latest Silicon Valley trends 2016 + How to Pitch Investors

1. Silicon Valley is Calling Wellington
Edith Yeung | @edithyeung | July 2016

2. Edith Yeung is a Partner at 500 Startups’ Mobile
Collective, focusing on investing in mobile apps and
consumer internet startups.
Before 500, Edith was the VP of marketing & business
development for Dolphin Browser. Dolphin Browser is a
Sequoia-backed mobile browser with over 150 million
installs worldwide. She also founded RightVentures -
seed stage investment firm focusing on mobile and
consumer internet companies. Prior, she led many
operation roles at Oracle, Siebel, AT&T, Symantec,
Telstra, Cisco, Autodesk, etc.
Edith
Yeung
|
@edithyeung
|
edith.co

3. /
Since July 20101,500+ investments2
500
Startups
Is
the
Most
Ac2ve
Seed
Investor
in
Silicon
Valley
and
Aims
to
be
Largest
in
the
World1
$250MM in AUM2
The various geographies highlighted in the map result from investments we have made across all 500 Startups funds.
1. The Silicon Valley Tech Venture Capital Almanac, Fall 2013 and TechCrunch Article May 5, 2015, “500 Startups Aims To Be The Largest VC Shop In The World” http://techcrunch.com/2015/05/05/500-startups-aims
-to-be-the-largest-vc-shop-in-the-world/
2. Approximated as of 11/17/2015 and includes the following 500 Startups funds: (a) 500 Startups, L.P. and 500 Startups-A, L.P. (together, “Fund I”), (b) 500 Startups II, L.P. and 500 Startups II-A, L.P. (together, “Fund
II”), (c) 500 Startups III, L.P. and 500 Startups III-A, L.P. (together, “Fund III”), (d) 500 Startups IV, L.P. and 500 Startups IV-A, L.P. (together, “Fund IV”), (e) 500 Startups Annex Fund, L.P. (“Annex”), (f) 500 Luchadore
s, L.P. (“Luchadores”), (g) 500 Durians, L.P. (“Durians”), (h) 500 Mobile Collective, L.P. (“Mobile Collective”, (i) 500 Kimchi, L.P. (“Kimchi”), (j) 500 TukTuks, L.P. (“TukTuks”), (k) 500 Startups JP, L.P. ("Japan”), (l) 500 I
stanbul, L.P. ("Istanbul”), and (m) 500 Nordics, L.P. (“Nordics”)

4. 7 Hottest Technology Trends in
Silicon Valley
Edith
Yeung
|
@edithyeung
|
edith.co

5. Funding future is bright for …
Edith
Yeung
|
@edithyeung
|
edith.co

6. Trend 1 – Augmented Reality – Pokémon Go
Edith
Yeung
|
@edithyeung
|
edith.co

7. Nintendo’s Stock is Up 12.83% in 5 days
after the Pokémon Go launch
Edith
Yeung
|
@edithyeung
|
edith.co

8. Trend 2 – Virtual Reality
Edith
Yeung
|
@edithyeung
|
edith.co

9. 2016 has thus far seen $1.3B invested
over 76 deals in the AR/VR space
Edith
Yeung
|
@edithyeung
|
edith.co
• CBInsights - https://www.cbinsights.com/blog/augmented-virtual-reality-funding-
trends-q2-2016

10. Trend 3 – AI / Deep Learning
Edith
Yeung
|
@edithyeung
|
edith.co

11. Google’s AlphaGo: using machine learning to
master the ancient game of Go
Edith
Yeung
|
@edithyeung
|
edith.co

12. Over 25 AI startups raised funding in the
Q1 2016. Up 7x from Q1'11.
Edith
Yeung
|
@edithyeung
|
edith.co
• CBInsights - https://www.cbinsights.com/blog/artificial-intelligence-startups-
q1-2016-funding/

13. Trend 4 – Mobile Live Streaming
Edith
Yeung
|
@edithyeung
|
edith.co

14. YY generated $957M in revenue in past 12
months
Edith
Yeung
|
@edithyeung
|
edith.co

15. Trend 5 – Driverless cars, drones, IoT, etc
Edith
Yeung
|
@edithyeung
|
edith.co
• CBInsights - https://www.cbinsights.com/blog/frontier-tech-startup-funding-
q1-2016/

16. $1.3B in funding invested in over 72
deals, Q1'16 turned out to be the second-
largest ever for frontier tech, in terms of
both deals and dollars.

17. Trend 6 – Messenger Bots for Apple,
Facebook, WeChat, Google, Telegram
Edith
Yeung
|
@edithyeung
|
edith.co

18. Trend 7 – Rise of Adblock Plus & No
Advertising Movement
Edith
Yeung
|
@edithyeung
|
edith.co

19. Content is King. Not Ads.
Edith
Yeung
|
@edithyeung
|
edith.co

20. I am staying away from…
• Social network or platform. Be careful with any startups calling
themselves platforms.
• Utility Apps. Mail & Carousel (acquired Dropbox) were both shut
down.
• Browser. The world is dominated by big browser players.
• Delivery & Transportation. Get ready to compete with Uber –
service delivery as a platform will come soon.
• Gaming. Small studios will need to raise substantial capital to
acquire users.
• Consumer Messaging. Whatsapp, WeChat, Facebook
Messenger, Viber, Snapchat – is there room for another messaging
app?
Edith
Yeung
|
@edithyeung
|
edith.co

21. How to get some $$$ from investors
Edith
Yeung
|
@edithyeung
|
edith.co

23. 7 Pitching Habits for Highly
Effective Startups
Edith
Yeung
|
@edithyeung
|
edith.co

24. Habit 1 – Pitch to the Right
Investors
Don’t waste people’s time!
Edith
Yeung
|
@edithyeung
|
edith.co

25. Before pitching an investor…
• Research what stages (seed, Series A, B, C, etc),
check size, industries, categories, geography,
frequency the specific investors focus on
• Get warm intro from other investors (already invest
in you) or entrepreneurs they invest in
Edith
Yeung
|
@edithyeung
|
edith.co

26. Habit 2 – Pitch with Purpose
What is the one take away of my pitch?
Edith
Yeung
|
@edithyeung
|
edith.co

28. Habit 3 – Pitch Your Story
Tell a short, relevant and personal story that
make you uniquely over qualify for creating
your startup.
Edith
Yeung
|
@edithyeung
|
edith.co

30. Habit 4 – Pitch like a Pro
Why you and why now
Edith
Yeung
|
@edithyeung
|
edith.co

31. Please cover the following during
your pitch
• Traction, traction, traction
• Revenue
• User download
• User engagement
• Major signed partnerships
• Product demo (if you have it)
• Market size & target market
• Pain point
Edith
Yeung
|
@edithyeung
|
edith.co
• Product
• Team (team, investors, advisors)
• Technology
• Business model
• Monetization model
• Competition
• Market Trends

32. Habit 5 – Understand the Big
Picture
You are not the first one.
Edith
Yeung
|
@edithyeung
|
edith.co

33. Know your competitors
Know your market
Know your market potential
Policy or legal environment

34. Habit 6 – Always follow up
Within 24 hours…
Edith
Yeung
|
@edithyeung
|
edith.co

35. After the meeting…
Email follow up within 24 hours
• Thank them!
• Deck
• Current Traction
• Team
• Action items
• Your ask
• Ask for follow up meetings or phone calls
Edith
Yeung
|
@edithyeung
|
edith.co

36. Habit 7 – Show Passion &
Honesty
You’re a human billboard of your startup
Edith
Yeung
|
@edithyeung
|
edith.co

37. I will do whatever it takes and
fight to make this happen.
Edith
Yeung
|
@edithyeung
|
edith.co

38. 7 Pitching Habits for Highly Effective
Startups
• Habit 1 – Pitch to the Right Investors
• Habit 2 – Pitch with Purpose
• Habit 3 – Pitch Your Story
• Habit 4 – Pitch Like a Pro
• Habit 5 – Understand the Big Picture
• Habit 6 – Always Follow Up
• Habit 7 – Show Passion & Honesty

39. Bonus Tip

40. 2016 Buzzwords that Make Investors Drool
• VR/ AR
• AI
• Deep Learning
• Machine
learning
• Neural
networks
• Image
recogni<on
• NLP

41. You can find my presentation at:
• Deck http://www.edith.co/#blog
• Email edith@500.co
• Twitter @edithyeung
• Newsletter http://www.edith.co/#newsletter
• Slideshare http://www.slideshare.net/EdithYeung
Edith
Yeung
|
@edithyeung
|
edith.co