getting funded - boilermake 2014
DESCRIPTION
Presentation to BoilerMake 2014. How to get funded in Silicon ValleyTRANSCRIPT
Disclosure
• This is mainly focused on Enterprise and Consumer software startups
• I’ve been a part of 5 founding teams that have raised capital. (1998 – Present)– One was acquired for $$
– One flamed out spectacularly
– 2 are growing
– My new company is just getting started
• Luck is an overwhelming factor in startup success
Times have changed
• 1997 – 2004: $5M to launch at startup to get to Product Market Fit.
• 2005 – 2014: Dramatically decreasing towards $0
• Competition for the entrepreneur is wildly different. (Damn you hackathons)
Glad I'm an operator and not an investor
• $500k can get a small team to profitability / a significant exit
• Acqui-hires benefit failing founding teams but not investors
• Angels have invaded early stage VC• Incubators cultivate too many lemmings and drive up
valuations• Companies / foreign funds / LPs have invaded late
stage VC• Picking a winner is a total crap shoot
– 1 Unicorn returns the fund– “Its all about the team”– Spray and Pray
$500B in deployable capital on this map
Its mostly about who knows you and your capabilities
There has never been a better time to start something in the history of
the world than right now.
- Just about everybody in SV
5 Step Plan DO THIS NOW!
• #0 – Get familiar with the thought leaders and start trolling them on
twitter and in comments
• #0b – Start contributing to Github / blogging regularly about something
cutting edge
UPON GRADUATION
• #1 – Find your way to Silicon Valley after graduation. Do not consider jobs
elsewhere.
• #2 – Get an job at any tech company that has less than 50 people and has
raised VC. Best way to trigger #5
• #3 – Find a way to live cheaply (Avoid expensive habits)
• #4 – Iterate on ideas fearlessly. Traction is the only thing that matters.
(Users or $$) Spend all your time on pushing your ideas forward.
• #5 –Get one (1) serious angel to believe in your vision
Its A Numbers Game
Gets to a MVP - on Seed $$ - 10,000
Has an idea - Infinite
Raises a Series A – 1,000
Raises beyond a Series A - 200
Successful Exit - 50
Unicorn Status – 1 to 5
Lets look at some resources
@pmarca
Discussion Forums
Helpful business modelsMattermark
Keep and eye on Danielle Morrill
Helpful business modelsCrunchbase
The Rally Story
Angel List
Incubators(Kickstarter Yo?)
No, Snoop Dogg is not going to investor in your startup.