Startup 2.0: From Silicon Valley to Hong Kong

Startup 2.0: A Silicon Valley Story Sourcing, Selecting & Engineering Better Startups via Incubators, Metrics & Iterative Development Dave McClure, Founders Fund (twitter: @DaveMcClure ) Hong Kong Cyberport VC Forum November 2009

Silicon Valley Startup Funding Ecosystem Union Square Ventures First Round Capital Benchmark Sequoia FF II FF I Angels & Incubators ($0-10M) “ Seed” Funds ($10-50M) “ Small” VC Funds ($50-250M) “ Large” VC Funds (>$250M) Y-Combinator TechStars FF Angel fbFund REV SoftTech (Clavier) Maples Investments Felicis (Senkut) SV Angel (Conway)

Topics ,[object Object],[object Object],[object Object],[object Object],[object Object]

[Pardon The Blatant Commercial]

Dave McClure ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],GEEK, CODER, ENTREPRENEUR Blogger, Startup Advisor Internet Marketing, Angel/VC Investor

Personal Investments (13 deals, 2004-2008, ~$25K avg)

Professional Investments (37 deals, Dec 2008 - Nov 2009, ~$75K avg) fbFund Incubator 22 deals ($850K) ~$15-75K FF Angel LLC 15 deals ($1.5M) ~$50-250K

Founders Fund (Selected Investments, 2005-2009, range $1M-20M)

Venture Capital 1.0 = Too Big To FAIL WIN ? (at least for *Internet* Startups)

Startup Funding Ecosystem Union Square Ventures First Round Capital Benchmark Sequoia FF II FF I Angels & Incubators ($0-10M) “ Seed” Funds ($10-50M) “ Small” VC Funds ($50-250M) “ Large” VC Funds (>$250M) Y-Combinator TechStars FF Angel fbFund REV SoftTech (Clavier) Maples Investments Felicis (Senkut) SV Angel (Conway)

Venture Capital: Still Relevant? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

More & Smaller Acquisitions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Startup Incubators Lots of Hot, Cool, Web 2.0! (+ lots of FAIL, too.)

Incubator 2.0 Model ,[object Object],[object Object],[object Object],[object Object]

Incubator 2.0: Fast, Cheap, FAIL ,[object Object],[object Object],[object Object],[object Object]

Incubator 2.0: Education, Collaboration ,[object Object],[object Object],[object Object],[object Object]

fbFund REV ,[object Object],[object Object],[object Object],[object Object],[object Object]

Investment #1: Micro-Seed (“Incubator”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Investment #2: Seed (“Angel”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Investment #3: Series A (“Venture”) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Startup Metrics & The Lean Startup Measure Stuff. Iterate. Rinse & Repeat.

The Startup Metrics Religion ,[object Object],[object Object],[object Object],[object Object],[object Object]

Minimize TOTAL time through the loop LEARN BUILD MEASURE IDEAS CODE DATA Source: Eric Ries, The Lean Startup

The Startup Pyramid (Sean Ellis, Startup-Marketing.com) [email_address] Blog: startup-marketing.com

Startup Metrics for Pirates ,[object Object],[object Object],[object Object],[object Object],[object Object],(note: If you’re in a hurry, Google “Startup Metrics” & watch 5m video) AARRR !

AARRR!: 5-Step Startup Metrics Model Website.com R evenue $$$ Biz Dev Ads, Lead Gen, Subscriptions, ECommerce A cquisition SEO SEM Apps & Widgets Affiliates Email PR Biz Dev Campaigns, Contests Direct, Tel, TV Social Networks Blogs Domains R etention Emails & Alerts System Events & Time-based Features Blogs, RSS, News Feeds

Startup Challenges ,[object Object],[object Object],[object Object],[object Object]

Role: Founder/CEO ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Role: Product / Engineering ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Role: Marketing / Sales ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Platforms 2.0 Social, Mobile, Micro, Inbox, SEO

Web 2.0 = Good Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Platform Viability Successful Platforms have 3 Things: 1) Features 2) Users 3) Money Users . . Money Features Growth Profit Profitable Growth Nirvana

Platforms: HOT or NOT ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Startup 2.0: From Silicon Valley to Hong Kong

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Editor's Notes