SlideShare a Scribd company logo
1 of 28
Download to read offline
Building Startup Ecosystems
+ Investing in Tech Startups
@DaveMcClure
@500Startups http://500.co
London, Feb 2015
Dave McClure

Founding Partner, 500 Startups
00’s & 10’s:
• VC: Founders Fund, Facebook fbFund, 500 Startups
• Angel: Mashery, Mint.com, SlideShare, Twilio, Wildfire, SendGrid
• Marketing: PayPal, Simply Hired, Mint.com, O’Reilly
!
!
80’s & 90’s:
• Entrepreneur: Aslan Computing (acq’d by Servinet/Panurgy)
• Developer: Windows / SQL DB consultant (Intel, MSFT)
• Engineer: Johns Hopkins‘88, BS Eng / Applied Math
• What is 500?
– $125M silicon valley VC fund + startup accelerator
– 50 people / 15 investing partners
– Locations: SV/SF, MEX, BRZ, IND, CHN/TWN, KOR, SE Asia, UK, MENA
– 2000+ Founders / 200+ Mentors
– Customer Acquisition & Growth Experts
– Community + Content + Conferences
!
• 950+ Portfolio Co’s / 50+ Countries
– Wildfire (acq GOOG, $350M)
– MakerBot (acq SSYS, $400M)
– Viki (acq Rakuten, $200M)
– Simple (acq BBVA, $117M)
– Sunrise (acq MSFT, $100M)
– Credit Karma (valued >$1B)
– Twilio
– SendGrid
– Udemy
– TheRealReal
– Barkbox
– HomeJoy
500 Startups

Global Seed Fund & Startup Accelerator
500 Startups: Global Seed Fund

Over 250+ startups outside US, across 50+ countries
[ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• Building Startup Ecosystems
Changes in Tech Startups
• LESS Capital required to build product, get to market
– Dramatically reduced cost for servers, software, bandwidth
– Funding Platforms: KickStarter, Angel List, Funders Club, etc
– Access to online platforms for 100M-1B+ consumers, smallbiz, etc
!
• MORE Customers via ONLINE platforms (100M+ users)
– Search (Google, Baidu)
– Social (Facebook, Twitter, LinkedIn)
– Mobile (Apple, Android)
– E-Commerce (Amazon, Ebay/PayPal, Alibaba)
– Media (YouTube, Pinterest, Instagram)
– Comm/Msgs (WeChat/WhatsApp, Email, Voice, SMS, etc)
!
• LOTS of little bets: Accelerators, Angels, Angel List, Small Exits
– Capital + Co-working + Mentoring -> Design, Data, Distribution
– “Fast, Cheap Fail”, network effects, quantitative + iterative investments
Startup Founder Education
• Business Plans, Revenue Projections
• Hacker (SW) + Hipster (UX) + Hustler (Mktg/Sales)
• Lean Startup Experiments + Continuous Test/Deploy
• Functional Prototypes + Customer Development
• Scalable [Online] Marketing & Sales
• Cashflow-Positive Unit Economics
• Pitching + Fundraising (Angel List)
• Monetization + Payments
• Customer Service + Support
• Grow the Organization
7
Before & After 2 Dot-Com Crashes

LEAN Startup: Simpler, Faster, Cheaper, Smarter
Before 2000
”Big, Fat, Dinosaur Startup”
• Sun Servers
• Oracle DB
• Exodus Hosting
• 12-24mo dev cycle
• 6-18mo sales cycle
• <100M people online
• $1-2M seed round
• $3-5M Series A
• Sand Hill Road crawl
After 2008
”Lean, Little, Cockroach Startup”
• AWS, Google, PayPal, FB, TW
• Cloud + Open Source SW
• Lean Startup / Startup Wknd
• 3-90d dev cycle
• SaaS / online sales
• >3B people online
• <$100K incub + <$1M seed
• $1-3M Series A
• Angel List global visibility
Platforms 2.0

Search, Social, Mobile,
Video, Messaging
Startup Risk Reduction
Concept
Early
Customer
Usage
Scalable
Customer
Acquisition
[about to be]
Profitable
Unit
Economics
Scalable
Profitable
Business
Functional
Prototype
PRODUCT
MARKET
REVENUE
Exit?
When 500
Likes to
Invest
[ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• Building Startup Ecosystems
Industry Changes
• Financial Market Crises (2000, 2008)
• Startup Efficiency, Lean Startup Movement, Reduced Capital Costs
• Growing Market, Global Distribution Platforms, “Growth Hacking”
• Improved Monetization, Payments Infrastructure
• Developing Startup Ecosystems, Global M&A
!
• Micro VC: Seed Funds (ex: First Round Capital)
• Incubators & Accelerators (ex: Y Combinator, 500 Startups)
• Funding Platforms (ex: Angel List, Kickstarter)
• Global Market of Angel Investors, Accelerators, Seed Funds
!
more info: http://PreMoney.co
Investor Education
• Startups are NOT Real Estate
• Most Startups Fail / Power Law Returns
• Portfolio Approach (20+ investments)
• Legal Structure, Financial Structure
• Syndication + Co-Investment
• Access to Downstream Capital
• Exits & Liquidity
13
Portfolio Diversification
“Spray, not Pray”
500 Strategy: Lots of Little Bets*
1) make lots of little
bets on pre-traction,
early-stage startups
3) wait 3-10 years for returns:
-10-20% small exits @1-5X ($5-25M+)
-5-10% larger exits @5-20X ($25-250M+)
-1-2% unicorns @20-50X+ ($250M-1B+)
*See Peter Sims book: “Little Bets”
2) over the next 2 years,
double-down on top 20%
The Lean Investor
Make lots of little bets:
• Start with many small “experiments”
• Filter out failures + small wins
• Double-down on stuff that looks like it’s working
!
• Incubation: $0-100K (“Build & Validate Product”)
• Seed: $100K-$1M (“Test & Grow Marketing Channels””)
• Venture: $1M-$10M (“Maximize Growth & Revenue”)
Investment Stage #1: 

Product Validation + Customer Usage
• Structure
– 1-3 founders
– $0-$100K investment
– Incubator environment: multiple peers, mentors/advisors
!
• Test Functional Prototype / “Minimum Viable Product” (MVP):
– Prototype->Alpha, ~3-6 months
– Develop Minimal Critical Feature Set => Get to “It Works! Someone Uses It.”
– Improve Design & Usability, Setup Conversion Metrics
– Test Small-Scale Customer Adoption (10-1000 users)
!
• Demonstrate Concept, Reduce Product Risk, Test Functional Use
• Develop Metrics & Filter for Possible Future Investment
Investment Stage #2: 

Market Validation + Revenue Testing
• Structure
– 2-10 person team
– $100K-$1M investment
– Syndicate of Angel Investors / Small VC Funds
!
• Improve Product, Expand Customers, Test Revenue:
– Alpha->Beta, ~6-12 months
– Scale Customer Adoption => “Many People Use It, & They Pay.”
– Test Marketing Campaigns, Customer Acquisition Channels + Cost
– Test Revenue Generation, Find Profitable Customer Segments
!
• Prove Solution/Benefit, Assess Market Size
• Test Channel Cost, Revenue Opportunity
• Determine Org Structure, Key Hires
Investment Stage #3: 

Revenue Validation + Growth
• Structure
– 5-25 person team
– $1M-$10M investment
– Seed & Venture Investors
!
• Make Money (or Go Big), Get to Sustainability:
– Beta->Production, 12-24 months
– Revenue / Growth => “We Can Make (a lot of) Money!”
– Mktg Plan => Predictable Channels / Campaigns + Budget
– Scalability & Infrastructure, Customer Service & Operations
– Connect with Distribution Partners, Expand Growth
!
• Prove/Expand Market, Operationalize Business
• Future Milestones: Profitable/Sustainable, Exit Options
Building a Portfolio Budget &
Allocation Strategy
• How long will it take companies to exit? (3-7 yrs)
• How much money do you have to lose? (<5-10% net worth)
• (How much time do you have to spend/waste? sure about that?)
!
• Simple allocation for $1M investment budget over 5 years
• 50% 1st checks + 50% 2nd checks
• 20 x 1st checks @ $25K each, 1 / qtr ($500K)
• 5 x 2nd checks @ $100K each, 1 / year ($500K)
1 2 3 54 6 7 8 109 11 12 13 1514 16 17 18 2019
1 5432
The Flat, The Elbow, The Wall
• Invest @ “The Flat”
when prices are low
• Double-down if/when
you detect “The Elbow”
(if valuation isn’t crazy)
!
• Don’t invest @ “The
Wall” unless capital is
infinite — if valuation
starts running away, you
usually can’t buy any
meaningful ownership
relative to existing. Time
Good Stuff
Happening Startup W
Startup L
Startup K
“The Flat”
“The Elbow”
“The Wall”
1
2
3
3
[ This Talk ]
• Changes in Building Technology Startups
• Changes in Venture Capital Investing
• Building Startup Ecosystems
Critical Ecosystem Factors
• Optimism & Belief (“Silicon Valley”)
• Mentorship + Education (Knowledge)
• Universities + Companies (People)
• Capital, Legal, Finance (Infrastructure)
• Engineering + Design / UX (Product)
• Platforms + Distribution (Customers)
• Online Payments (Monetization)
• IPO / M&A Market (Exits)
23
Investor Ecosystem
!
!Angels &
Incubators
($0-10M)
!
“Micro-VC” Funds
($10-100M)
“Big” VC Funds
($100-500M)
“Mega” VC Funds
(>$500M)
Incubation
0-$100K
Seed
$100K-$1M
Series A/B
$2-10M
Series B/C
$10-50M
Bootstrap, KickStarter,
AngelList, Crowdfunding
stage where
500 writes
first checks
stage where 500
doubles-down
(maybe)
Example Startup Ecosystem
• 1,000 Bootstrap Startups ($0-10K)
• = 1,000 Parents/Garages/Basements @ $0-500/mo food+rent
• 300 Accelerator Startups ($10-100K)
• = 10-20 Accelerators @ $1-5M/yr, 20-50 co’s/yr
• 100 Seed-Stage Startups ($100K-$1M)
• = 5-10 Micro-VC Funds @ $10-30M/yr, 10-20 co’s/yr
• 30 Series A/B Startups ($1-10M)
• = 3-5 Early-Stage Funds @ $25-100M/yr, 5-10 co’s/yr
• 10 Later-Stage Companies ($10-100M)
• = 2-3 Later-Stage Funds @ $50-250M/yr, 3-5 co’s/yr
• 1-3 Mature Company IPOs ($100M+) 25
Local vs Global?
• Emerging / Developing Markets
• Global Languages: English, Chinese, Spanish, Arabic
• Critical Factors: Education, Mentorship, Capital
• Capital Availability: Incubation, Seed, Series A
• Positive Macro: SmartPhones, Tablets, Payments,
Logistics, Growing Middle Class, Distribution Platforms
• Wealthy Global Users, Shoppers, Travelers
How Big is Seed Stage Startup Market?
500 VCs invest in 10,000 startups/yr @ $500K/startup = $5B/yr
How many people are entrepreneurs? How many startups get started every year?
• ~1% of Humanity is “Entrepreneurial” (def’n: “can create a $10M rev/yr business”)
• 1% x 7B ppl = 70M entrepreneurs, each of which starts 1-5 businesses lifetime (70 yrs)
• hypothesis: talented entrepreneurs can create 1-5M new “startup” businesses every year
!
NOW: let’s say we *ONLY* do the top 1% => the best 10,000 startups in the top 200 metros
!
How many metros? How many investors / metro? How many startups / metro?
• 1 [micro] VC can fund 10-20 startups/yr * $50K-$500K = ~$1-10M/yr annual budget
• global metros of 1-10M+ ppl can generate 100-1,000 startups / year
• 1-5 VCs in top 200 metros = 500 VCs x 20 startups/yr = 10,000 startups/yr
• hypothesis: 500 VCs invest $500K each -> 20 startups/yr = $5B/yr -> 10,000 startups
!
… so forget about 500 Startups, and start thinking about 500 VCs.
15
Questions? Comments?
• More Info?
– http://500.co (our company)
– http://500hats.com (my blog)
– https://angel.co/500startups (our fund)
– Dave McClure, @DaveMcClure

More Related Content

What's hot

Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)Dave McClure
 
Corporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't SuckCorporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't SuckDave McClure
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONGDave McClure
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONGDave McClure
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCDave McClure
 
Building Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCsBuilding Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCsDave McClure
 
Startup Local or Global?
Startup Local or Global?Startup Local or Global?
Startup Local or Global?Dave McClure
 
VC Evolution: Geeks Got Next
VC Evolution: Geeks Got NextVC Evolution: Geeks Got Next
VC Evolution: Geeks Got NextDave McClure
 
Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsFarming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsDave McClure
 
Changes in VC + Building Startup Ecosystems
Changes in VC + Building Startup EcosystemsChanges in VC + Building Startup Ecosystems
Changes in VC + Building Startup EcosystemsDave McClure
 
How 2 Pitch a VC (New Delhi, Dec 2011)
How 2 Pitch a VC (New Delhi, Dec 2011)How 2 Pitch a VC (New Delhi, Dec 2011)
How 2 Pitch a VC (New Delhi, Dec 2011)Dave McClure
 
Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)Dave McClure
 
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)Dave McClure
 
Hack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup EcosystemsHack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup EcosystemsDave McClure
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCDave McClure
 
Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)Dave McClure
 
Startup Ecosystems: Local vs. Global?
Startup Ecosystems: Local vs. Global?Startup Ecosystems: Local vs. Global?
Startup Ecosystems: Local vs. Global?Dave McClure
 
Hong Kong 2.0: The Lean VC
Hong Kong 2.0: The Lean VCHong Kong 2.0: The Lean VC
Hong Kong 2.0: The Lean VCDave McClure
 
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A CrunchSilicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A CrunchDave McClure
 

What's hot (20)

Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)Building Startup Ecosystems (Bahrain, May 2013)
Building Startup Ecosystems (Bahrain, May 2013)
 
Corporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't SuckCorporate VC Innovation: Strategies That Don't Suck
Corporate VC Innovation: Strategies That Don't Suck
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONG
 
Building #500STRONG
Building #500STRONGBuilding #500STRONG
Building #500STRONG
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VC
 
Building Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCsBuilding Startup Ecosystems & The Rise of Micro-VCs
Building Startup Ecosystems & The Rise of Micro-VCs
 
Startup Local or Global?
Startup Local or Global?Startup Local or Global?
Startup Local or Global?
 
VC Evolution: Geeks Got Next
VC Evolution: Geeks Got NextVC Evolution: Geeks Got Next
VC Evolution: Geeks Got Next
 
Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)Investing in Tech Startups + Corporate Innovation (with SVB)
Investing in Tech Startups + Corporate Innovation (with SVB)
 
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging MarketsFarming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
Farming Unicorns: Building Startup & Investor Ecosystems for Emerging Markets
 
Changes in VC + Building Startup Ecosystems
Changes in VC + Building Startup EcosystemsChanges in VC + Building Startup Ecosystems
Changes in VC + Building Startup Ecosystems
 
How 2 Pitch a VC (New Delhi, Dec 2011)
How 2 Pitch a VC (New Delhi, Dec 2011)How 2 Pitch a VC (New Delhi, Dec 2011)
How 2 Pitch a VC (New Delhi, Dec 2011)
 
Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)Building Startup Ecosystems (Istanbul, Sept 2014)
Building Startup Ecosystems (Istanbul, Sept 2014)
 
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
Silicon Valley 2.0: Lots of Little Bets (Jakarta, June 2013)
 
Hack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup EcosystemsHack Osaka: Innovation Strategies for Regional Startup Ecosystems
Hack Osaka: Innovation Strategies for Regional Startup Ecosystems
 
Silicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VCSilicon Valley 2.0: Lean Startup, Lean VC
Silicon Valley 2.0: Lean Startup, Lean VC
 
Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)Startup Organizer Summit (Rio, 2013)
Startup Organizer Summit (Rio, 2013)
 
Startup Ecosystems: Local vs. Global?
Startup Ecosystems: Local vs. Global?Startup Ecosystems: Local vs. Global?
Startup Ecosystems: Local vs. Global?
 
Hong Kong 2.0: The Lean VC
Hong Kong 2.0: The Lean VCHong Kong 2.0: The Lean VC
Hong Kong 2.0: The Lean VC
 
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A CrunchSilicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
Silicon Valley 2.0: Lots of Little Bets + Beating the Series A Crunch
 

Similar to Building Startup Ecosytems & Investing in Tech Startups

Building Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech StartupsBuilding Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech StartupsDave McClure
 
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Dave McClure
 
Lean, Little Cockroach Startup
Lean, Little Cockroach StartupLean, Little Cockroach Startup
Lean, Little Cockroach StartupDave McClure
 
From 500 Startups to 500 VCs
From 500 Startups to 500 VCsFrom 500 Startups to 500 VCs
From 500 Startups to 500 VCsDave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Dave McClure
 
Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...
Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...
Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...Dave McClure
 
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...500 Startups
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Dave McClure
 
Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Dave McClure
 
Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)Dave McClure
 
Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014Startup Istanbul
 
Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)Dave McClure
 
Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)Dave McClure
 
Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)Dave McClure
 
Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)Dave McClure
 
Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)Dave McClure
 
Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)Dave McClure
 
Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.Dave McClure
 

Similar to Building Startup Ecosytems & Investing in Tech Startups (20)

Building Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech StartupsBuilding Startup Ecosystems + Investing in Tech Startups
Building Startup Ecosystems + Investing in Tech Startups
 
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0Venture Capital Unlocked (Stanford) / Venture Capital 2.0
Venture Capital Unlocked (Stanford) / Venture Capital 2.0
 
Lean, Little Cockroach Startup
Lean, Little Cockroach StartupLean, Little Cockroach Startup
Lean, Little Cockroach Startup
 
From 500 Startups to 500 VCs
From 500 Startups to 500 VCsFrom 500 Startups to 500 VCs
From 500 Startups to 500 VCs
 
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Stanford, June 2016)
 
Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...
Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...
Investing in Tech Startups & Building Startup Ecosystems (PreMoney Miami, Mar...
 
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...
[PREMONEY MIAMI] 500 Startups >> Dave McClure, "4 Years of Moneyball & 950+ S...
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
Farming Unicorns: Building Startup & Investor Ecosystems in Emerging Markets ...
 
Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)Building Startup Ecosystems (Dubai, Oct 2014)
Building Startup Ecosystems (Dubai, Oct 2014)
 
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
Farming Unicorns: Building Startup & Investor Ecosystems (Madrid, June 2016)
 
Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)Building Startup Ecosystems (Seoul, Oct 2014)
Building Startup Ecosystems (Seoul, Oct 2014)
 
Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014Dave McClure 500Startups_StartupIstanbul2014
Dave McClure 500Startups_StartupIstanbul2014
 
Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)Building Startup Ecosystems (Cairo, Oct 2014)
Building Startup Ecosystems (Cairo, Oct 2014)
 
Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)Building Startup Ecosystems (Berlin, June 2015)
Building Startup Ecosystems (Berlin, June 2015)
 
Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)Building Startup Ecosystems (Baku, Nov 2014)
Building Startup Ecosystems (Baku, Nov 2014)
 
Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)Building Startup Ecosystems (Riyadh, Nov 2014)
Building Startup Ecosystems (Riyadh, Nov 2014)
 
Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)Changes in Venture Capital (Pioneers, Vienna)
Changes in Venture Capital (Pioneers, Vienna)
 
Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)Building Startup Ecosystems (Singapore, July 2014)
Building Startup Ecosystems (Singapore, July 2014)
 
Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.Silicon Valley 2.0: Make Lots of Little Bets.
Silicon Valley 2.0: Make Lots of Little Bets.
 

More from Dave McClure

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelDave McClure
 
The Helpful VC (June 2019)
The Helpful VC (June 2019)The Helpful VC (June 2019)
The Helpful VC (June 2019)Dave McClure
 
Skip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondarySkip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondaryDave McClure
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Dave McClure
 
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
Bringing Silicon Valley to LatAm: Startup Ecosystems & InvestmentDave McClure
 
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsTake a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsDave McClure
 
Startup & VC Tech Trends
Startup & VC Tech Trends Startup & VC Tech Trends
Startup & VC Tech Trends Dave McClure
 
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexFarming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexDave McClure
 
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)Dave McClure
 
Farming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsFarming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsDave McClure
 
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"Dave McClure
 
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dave McClure
 
500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)Dave McClure
 
Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)Dave McClure
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Dave McClure
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Dave McClure
 
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...Dave McClure
 
500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15Dave McClure
 

More from Dave McClure (20)

How to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio modelHow to VC: Creating a VC fund portfolio model
How to VC: Creating a VC fund portfolio model
 
The Helpful VC (June 2019)
The Helpful VC (June 2019)The Helpful VC (June 2019)
The Helpful VC (June 2019)
 
Skip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital SecondarySkip the J-Curve: An Intro to Venture Capital Secondary
Skip the J-Curve: An Intro to Venture Capital Secondary
 
Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona Tech and Venture Capital in the Time of Corona
Tech and Venture Capital in the Time of Corona
 
The Helpful VC
The Helpful VC The Helpful VC
The Helpful VC
 
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
Bringing Silicon Valley to LatAm: Startup Ecosystems & Investment
 
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith LordsTake a Walk on the Dark Side: Branding for Startups & Sith Lords
Take a Walk on the Dark Side: Branding for Startups & Sith Lords
 
Startup & VC Tech Trends
Startup & VC Tech Trends Startup & VC Tech Trends
Startup & VC Tech Trends
 
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #GitexFarming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
Farming Unicorns in Emerging Markets (Dubai, Oct 2016) #Gitex
 
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
The Unicorn Hedge: Why Are Corporations Buying Unicorns? (Madrid, Oct 2016)
 
Farming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor EcosystemsFarming Unicorns: Building Startup & Investor Ecosystems
Farming Unicorns: Building Startup & Investor Ecosystems
 
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
500 Startups #Batch17 #DemoDay: "Beauty and the GEEK"
 
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
Dinosaurs vs Unicorns aka "Bubble My Ass, All Dinosaurs Gonna Die" (London, J...
 
500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)500 Startups / Batch 16 Demo Day (Q1/2016 update)
500 Startups / Batch 16 Demo Day (Q1/2016 update)
 
Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)Startup Metrics for Pirates (FounderX, May 2016)
Startup Metrics for Pirates (FounderX, May 2016)
 
Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)Investment Thesis Fundamentals (April 2016)
Investment Thesis Fundamentals (April 2016)
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
Build Your Own Valley: Engineering Startup & Investor Ecosystems in Emerging ...
 
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
How to Win Friends, Influence People, and Get a Better Valuation with Emoji, ...
 
500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15500 Startups #DemoDay #Batch15
500 Startups #DemoDay #Batch15
 

Recently uploaded

Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Will Schroeder
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintMahmoud Rabie
 
How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?IES VE
 
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...Aggregage
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxGDSC PJATK
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6DianaGray10
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarPrecisely
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Websitedgelyza
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URLRuncy Oommen
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAshyamraj55
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024D Cloud Solutions
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7DianaGray10
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxMatsuo Lab
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Commit University
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopBachir Benyammi
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 

Recently uploaded (20)

Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership Blueprint
 
20230104 - machine vision
20230104 - machine vision20230104 - machine vision
20230104 - machine vision
 
How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?How Accurate are Carbon Emissions Projections?
How Accurate are Carbon Emissions Projections?
 
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
The Data Metaverse: Unpacking the Roles, Use Cases, and Tech Trends in Data a...
 
Cybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptxCybersecurity Workshop #1.pptx
Cybersecurity Workshop #1.pptx
 
UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6UiPath Studio Web workshop series - Day 6
UiPath Studio Web workshop series - Day 6
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
AI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity WebinarAI You Can Trust - Ensuring Success with Data Integrity Webinar
AI You Can Trust - Ensuring Success with Data Integrity Webinar
 
COMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a WebsiteCOMPUTER 10 Lesson 8 - Building a Website
COMPUTER 10 Lesson 8 - Building a Website
 
Designing A Time bound resource download URL
Designing A Time bound resource download URLDesigning A Time bound resource download URL
Designing A Time bound resource download URL
 
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPAAnypoint Code Builder , Google Pub sub connector and MuleSoft RPA
Anypoint Code Builder , Google Pub sub connector and MuleSoft RPA
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024
 
UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7UiPath Studio Web workshop series - Day 7
UiPath Studio Web workshop series - Day 7
 
Introduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptxIntroduction to Matsuo Laboratory (ENG).pptx
Introduction to Matsuo Laboratory (ENG).pptx
 
Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)Crea il tuo assistente AI con lo Stregatto (open source python framework)
Crea il tuo assistente AI con lo Stregatto (open source python framework)
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
NIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 WorkshopNIST Cybersecurity Framework (CSF) 2.0 Workshop
NIST Cybersecurity Framework (CSF) 2.0 Workshop
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 

Building Startup Ecosytems & Investing in Tech Startups

  • 1. Building Startup Ecosystems + Investing in Tech Startups @DaveMcClure @500Startups http://500.co London, Feb 2015
  • 2. Dave McClure
 Founding Partner, 500 Startups 00’s & 10’s: • VC: Founders Fund, Facebook fbFund, 500 Startups • Angel: Mashery, Mint.com, SlideShare, Twilio, Wildfire, SendGrid • Marketing: PayPal, Simply Hired, Mint.com, O’Reilly ! ! 80’s & 90’s: • Entrepreneur: Aslan Computing (acq’d by Servinet/Panurgy) • Developer: Windows / SQL DB consultant (Intel, MSFT) • Engineer: Johns Hopkins‘88, BS Eng / Applied Math
  • 3. • What is 500? – $125M silicon valley VC fund + startup accelerator – 50 people / 15 investing partners – Locations: SV/SF, MEX, BRZ, IND, CHN/TWN, KOR, SE Asia, UK, MENA – 2000+ Founders / 200+ Mentors – Customer Acquisition & Growth Experts – Community + Content + Conferences ! • 950+ Portfolio Co’s / 50+ Countries – Wildfire (acq GOOG, $350M) – MakerBot (acq SSYS, $400M) – Viki (acq Rakuten, $200M) – Simple (acq BBVA, $117M) – Sunrise (acq MSFT, $100M) – Credit Karma (valued >$1B) – Twilio – SendGrid – Udemy – TheRealReal – Barkbox – HomeJoy 500 Startups
 Global Seed Fund & Startup Accelerator
  • 4. 500 Startups: Global Seed Fund
 Over 250+ startups outside US, across 50+ countries
  • 5. [ This Talk ] • Changes in Building Technology Startups • Changes in Venture Capital Investing • Building Startup Ecosystems
  • 6. Changes in Tech Startups • LESS Capital required to build product, get to market – Dramatically reduced cost for servers, software, bandwidth – Funding Platforms: KickStarter, Angel List, Funders Club, etc – Access to online platforms for 100M-1B+ consumers, smallbiz, etc ! • MORE Customers via ONLINE platforms (100M+ users) – Search (Google, Baidu) – Social (Facebook, Twitter, LinkedIn) – Mobile (Apple, Android) – E-Commerce (Amazon, Ebay/PayPal, Alibaba) – Media (YouTube, Pinterest, Instagram) – Comm/Msgs (WeChat/WhatsApp, Email, Voice, SMS, etc) ! • LOTS of little bets: Accelerators, Angels, Angel List, Small Exits – Capital + Co-working + Mentoring -> Design, Data, Distribution – “Fast, Cheap Fail”, network effects, quantitative + iterative investments
  • 7. Startup Founder Education • Business Plans, Revenue Projections • Hacker (SW) + Hipster (UX) + Hustler (Mktg/Sales) • Lean Startup Experiments + Continuous Test/Deploy • Functional Prototypes + Customer Development • Scalable [Online] Marketing & Sales • Cashflow-Positive Unit Economics • Pitching + Fundraising (Angel List) • Monetization + Payments • Customer Service + Support • Grow the Organization 7
  • 8. Before & After 2 Dot-Com Crashes
 LEAN Startup: Simpler, Faster, Cheaper, Smarter Before 2000 ”Big, Fat, Dinosaur Startup” • Sun Servers • Oracle DB • Exodus Hosting • 12-24mo dev cycle • 6-18mo sales cycle • <100M people online • $1-2M seed round • $3-5M Series A • Sand Hill Road crawl After 2008 ”Lean, Little, Cockroach Startup” • AWS, Google, PayPal, FB, TW • Cloud + Open Source SW • Lean Startup / Startup Wknd • 3-90d dev cycle • SaaS / online sales • >3B people online • <$100K incub + <$1M seed • $1-3M Series A • Angel List global visibility
  • 9. Platforms 2.0
 Search, Social, Mobile, Video, Messaging
  • 10. Startup Risk Reduction Concept Early Customer Usage Scalable Customer Acquisition [about to be] Profitable Unit Economics Scalable Profitable Business Functional Prototype PRODUCT MARKET REVENUE Exit? When 500 Likes to Invest
  • 11. [ This Talk ] • Changes in Building Technology Startups • Changes in Venture Capital Investing • Building Startup Ecosystems
  • 12. Industry Changes • Financial Market Crises (2000, 2008) • Startup Efficiency, Lean Startup Movement, Reduced Capital Costs • Growing Market, Global Distribution Platforms, “Growth Hacking” • Improved Monetization, Payments Infrastructure • Developing Startup Ecosystems, Global M&A ! • Micro VC: Seed Funds (ex: First Round Capital) • Incubators & Accelerators (ex: Y Combinator, 500 Startups) • Funding Platforms (ex: Angel List, Kickstarter) • Global Market of Angel Investors, Accelerators, Seed Funds ! more info: http://PreMoney.co
  • 13. Investor Education • Startups are NOT Real Estate • Most Startups Fail / Power Law Returns • Portfolio Approach (20+ investments) • Legal Structure, Financial Structure • Syndication + Co-Investment • Access to Downstream Capital • Exits & Liquidity 13
  • 15. 500 Strategy: Lots of Little Bets* 1) make lots of little bets on pre-traction, early-stage startups 3) wait 3-10 years for returns: -10-20% small exits @1-5X ($5-25M+) -5-10% larger exits @5-20X ($25-250M+) -1-2% unicorns @20-50X+ ($250M-1B+) *See Peter Sims book: “Little Bets” 2) over the next 2 years, double-down on top 20%
  • 16. The Lean Investor Make lots of little bets: • Start with many small “experiments” • Filter out failures + small wins • Double-down on stuff that looks like it’s working ! • Incubation: $0-100K (“Build & Validate Product”) • Seed: $100K-$1M (“Test & Grow Marketing Channels””) • Venture: $1M-$10M (“Maximize Growth & Revenue”)
  • 17. Investment Stage #1: 
 Product Validation + Customer Usage • Structure – 1-3 founders – $0-$100K investment – Incubator environment: multiple peers, mentors/advisors ! • Test Functional Prototype / “Minimum Viable Product” (MVP): – Prototype->Alpha, ~3-6 months – Develop Minimal Critical Feature Set => Get to “It Works! Someone Uses It.” – Improve Design & Usability, Setup Conversion Metrics – Test Small-Scale Customer Adoption (10-1000 users) ! • Demonstrate Concept, Reduce Product Risk, Test Functional Use • Develop Metrics & Filter for Possible Future Investment
  • 18. Investment Stage #2: 
 Market Validation + Revenue Testing • Structure – 2-10 person team – $100K-$1M investment – Syndicate of Angel Investors / Small VC Funds ! • Improve Product, Expand Customers, Test Revenue: – Alpha->Beta, ~6-12 months – Scale Customer Adoption => “Many People Use It, & They Pay.” – Test Marketing Campaigns, Customer Acquisition Channels + Cost – Test Revenue Generation, Find Profitable Customer Segments ! • Prove Solution/Benefit, Assess Market Size • Test Channel Cost, Revenue Opportunity • Determine Org Structure, Key Hires
  • 19. Investment Stage #3: 
 Revenue Validation + Growth • Structure – 5-25 person team – $1M-$10M investment – Seed & Venture Investors ! • Make Money (or Go Big), Get to Sustainability: – Beta->Production, 12-24 months – Revenue / Growth => “We Can Make (a lot of) Money!” – Mktg Plan => Predictable Channels / Campaigns + Budget – Scalability & Infrastructure, Customer Service & Operations – Connect with Distribution Partners, Expand Growth ! • Prove/Expand Market, Operationalize Business • Future Milestones: Profitable/Sustainable, Exit Options
  • 20. Building a Portfolio Budget & Allocation Strategy • How long will it take companies to exit? (3-7 yrs) • How much money do you have to lose? (<5-10% net worth) • (How much time do you have to spend/waste? sure about that?) ! • Simple allocation for $1M investment budget over 5 years • 50% 1st checks + 50% 2nd checks • 20 x 1st checks @ $25K each, 1 / qtr ($500K) • 5 x 2nd checks @ $100K each, 1 / year ($500K) 1 2 3 54 6 7 8 109 11 12 13 1514 16 17 18 2019 1 5432
  • 21. The Flat, The Elbow, The Wall • Invest @ “The Flat” when prices are low • Double-down if/when you detect “The Elbow” (if valuation isn’t crazy) ! • Don’t invest @ “The Wall” unless capital is infinite — if valuation starts running away, you usually can’t buy any meaningful ownership relative to existing. Time Good Stuff Happening Startup W Startup L Startup K “The Flat” “The Elbow” “The Wall” 1 2 3 3
  • 22. [ This Talk ] • Changes in Building Technology Startups • Changes in Venture Capital Investing • Building Startup Ecosystems
  • 23. Critical Ecosystem Factors • Optimism & Belief (“Silicon Valley”) • Mentorship + Education (Knowledge) • Universities + Companies (People) • Capital, Legal, Finance (Infrastructure) • Engineering + Design / UX (Product) • Platforms + Distribution (Customers) • Online Payments (Monetization) • IPO / M&A Market (Exits) 23
  • 24. Investor Ecosystem ! !Angels & Incubators ($0-10M) ! “Micro-VC” Funds ($10-100M) “Big” VC Funds ($100-500M) “Mega” VC Funds (>$500M) Incubation 0-$100K Seed $100K-$1M Series A/B $2-10M Series B/C $10-50M Bootstrap, KickStarter, AngelList, Crowdfunding stage where 500 writes first checks stage where 500 doubles-down (maybe)
  • 25. Example Startup Ecosystem • 1,000 Bootstrap Startups ($0-10K) • = 1,000 Parents/Garages/Basements @ $0-500/mo food+rent • 300 Accelerator Startups ($10-100K) • = 10-20 Accelerators @ $1-5M/yr, 20-50 co’s/yr • 100 Seed-Stage Startups ($100K-$1M) • = 5-10 Micro-VC Funds @ $10-30M/yr, 10-20 co’s/yr • 30 Series A/B Startups ($1-10M) • = 3-5 Early-Stage Funds @ $25-100M/yr, 5-10 co’s/yr • 10 Later-Stage Companies ($10-100M) • = 2-3 Later-Stage Funds @ $50-250M/yr, 3-5 co’s/yr • 1-3 Mature Company IPOs ($100M+) 25
  • 26. Local vs Global? • Emerging / Developing Markets • Global Languages: English, Chinese, Spanish, Arabic • Critical Factors: Education, Mentorship, Capital • Capital Availability: Incubation, Seed, Series A • Positive Macro: SmartPhones, Tablets, Payments, Logistics, Growing Middle Class, Distribution Platforms • Wealthy Global Users, Shoppers, Travelers
  • 27. How Big is Seed Stage Startup Market? 500 VCs invest in 10,000 startups/yr @ $500K/startup = $5B/yr How many people are entrepreneurs? How many startups get started every year? • ~1% of Humanity is “Entrepreneurial” (def’n: “can create a $10M rev/yr business”) • 1% x 7B ppl = 70M entrepreneurs, each of which starts 1-5 businesses lifetime (70 yrs) • hypothesis: talented entrepreneurs can create 1-5M new “startup” businesses every year ! NOW: let’s say we *ONLY* do the top 1% => the best 10,000 startups in the top 200 metros ! How many metros? How many investors / metro? How many startups / metro? • 1 [micro] VC can fund 10-20 startups/yr * $50K-$500K = ~$1-10M/yr annual budget • global metros of 1-10M+ ppl can generate 100-1,000 startups / year • 1-5 VCs in top 200 metros = 500 VCs x 20 startups/yr = 10,000 startups/yr • hypothesis: 500 VCs invest $500K each -> 20 startups/yr = $5B/yr -> 10,000 startups ! … so forget about 500 Startups, and start thinking about 500 VCs. 15
  • 28. Questions? Comments? • More Info? – http://500.co (our company) – http://500hats.com (my blog) – https://angel.co/500startups (our fund) – Dave McClure, @DaveMcClure