6. 6PRIVATE AND CONFIDENTIAL|
The Power Law states that the single best
investment returns more than the rest of the
investments combined
7. 7PRIVATE AND CONFIDENTIAL|
What is a VC fundable startup?
Fund size: $100M
Average term: 10 years
Expected annual return: >20%
$300M
Avg. stake / company 15%
Aggregate exit proceeds $2B!!
17. 17PRIVATE AND CONFIDENTIAL|
Exceptional startups (Power Law) leverage the open
opportunities of computing (Moore’s Law) to grow
exponentially (Metcalfe’s Law)
19. 19PRIVATE AND CONFIDENTIAL|
What Skype is doing is like a toy. They
don’t realize they can’t scale it, they
don’t have a brand like the AT&T brand
nor our local footprint.
“
”
Hossein Eslambolchi, CTO, 2004
20. 20PRIVATE AND CONFIDENTIAL|
• 1.5+ million homes
• 34,000+ cities
• 190+ countries
• 25,000,000 guests
Early 2008 Summer 2015
27. 27PRIVATE AND CONFIDENTIAL|
Powerfully balanced personalities & attitude
IQ
EQHQ*
Successful VCs
Sources: 1Adapted from Alfred Lin
Personnality1 Attitude
“Lean it all” vs “Know it all”
+
Commitment
*Hustle Quotient
28. 28PRIVATE AND CONFIDENTIAL|
A few resources
• Classic Books
• The Lean Startup – Eric Ries
• The Hard Thing about Hard Things – Ben Horowitz
• From Zero to One – Peter Thiel
• Classic Blogs
• Paul Graham
• Bill Gurley
• Fred Wilson
• Tomasz Tunguz
• Brad Feld
• …so many more out there
• Other great content
• YC – http://startupclass.samaltman.com/
• Follow VCs on Twitter