My presentation for a Webinar with Mattermark from April 30, 2015 on the state of the start-up ecosystem, the evolution of venture capital sourcing, trends for 2015 and advice for founders

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Agenda
• Who Am I?
• State of the Start-Up Ecosystem
• How Have VCs Found Deals Historically?
• How has Data Impacted Venture Sourcing?
• Trends for 2015
• Advice for Founders
• Q&A

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Who Am I?
• Investor at Battery Ventures focused
on B2B software investing
• Battery typically looks to write
checks between $8 and $25M
• Active with our firm’s investments in
Coupa, Glassdoor and Yesware
• www.loganvc.com

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State of the Start-Up Ecosystem

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1. Cost of starting a company is decreasing
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Source: Mark Suster – Upfront Ventures

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2. Proliferation of micro vc and microbrews
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Source: CB Insights

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3. Smart minds aren’t running to Wall Street
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Source: Zero Hedge

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4. Market sizes are expanding
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Source: Packetworks

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5. Distribution is enhancing market velocity
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6. Companies are staying private longer
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Source: Mark Suster – Upfront Ventures

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7. Public money is playing in private markets
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Source: CB Insights

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So…….. what??

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Valuations go up…
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Source: Pitchbook

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Round sizes go up…
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Source: Tom Tunguz - Redpoint

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Unicorns go up…
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Source: CB Insights

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… And winners take all
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Source: Play Bigger Advisors, LLC.
#1 in Market, 76%
All Others in Market, 24%

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Entrepreneurs should be all like….

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Because great companies are started in all markets
0
1,000
2,000
3,000
4,000
5,000
6,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Nasdaq
For a full list of all Battery investments and exits, please visit www.battery.com
Nasdaq

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You just need to keep building value …

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… and growing up and to the right

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How Have VCs Found Deals Historically?
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Method 1: Smile and dial
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Method 2: Networking and referrals
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How has Data Impacted Venture Sourcing?
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The Godfathers: LinkedIn and TechCrunch
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• LinkedIn provided new insights into both companies and employees
• Crunchbase crowdsourced funding information and provided extensive
coverage on the start-up ecosystem

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Commercialization for the have nots
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• Companies like Facebook, Netflix, LinkedIn,
Twitter, AirBnB etc. built tools to handle their scale
that were later commercialized
• Mattermark took practices that were done at the
top venture firms and institutionalized it for the
masses… .
… and made it searchable by investor, stage, business model etc.

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Tools have proliferated
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Company-Focused People-Focused
For a full list of all Battery investments and exits, please visit www.battery.com

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So…….. what??

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Targeted outreach
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Trends for 2015
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More dinosaurs gonna die
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Bubble, My Ass: Some Unicorns Might Be
Overvalued, But All Dinosaurs Gonna Die.
By Dave McClure

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More security breaches are coming
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Advice for Founders
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Stay lean and talk to all potential customer…
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… and diligence VCs before reaching out
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Don’t optimize for valuation early …
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… because it’s a long journey
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… but a fun one
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Q&A
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