1. The document discusses how entrepreneurship has fueled major industrial revolutions throughout history including the current Internet revolution. 2. It notes that we are nearing a time when anyone, anywhere can create the next massively high growth company due to declining startup costs and the availability of resources online. 3. Early stage venture investing is also undergoing disruption in favor of entrepreneurs through more transparent and standardized processes as well as new models like crowdfunding and syndicates. 4. Socially driven disruption is upending major industries like education, healthcare and energy by applying peer-to-peer models, presenting opportunities around the world.

1. Entrepreneurship:
Global Transformation Engine

2. Industrial Revolution
Age of Steam and Railways
Age of Steel, Electricity and Heavy Engineering
Age of Oil, Automobiles and Mass Production
Age of Technology
The Internet Revolution
At every turn, Entrepreneurs have
been the main instrument of change

3. In the Internet Revolution, entrepreneurs will be more
powerful and more disruptive than we can imagine.
“The Internet Revolution is in fact the Industrial Revolution
of our time. It’s a sweeping social disruption that brings
with it not only new inventions and scientific advances, but
perhaps most importantly revolutionizes both the methods
of work and we the workers ourselves.”
Forbes, 2012

4. FACT:
We are nearing a time when
anyone, anywhere can create the
next massively high growth company

5. It’s Cheaper to get Started
Declining initial startup costs
•
•
The Cloud, open source,
online distribution
platforms, shift to Lean
Startup methods and
“minimum viable
products”, etc.
It no longer costs $1 to
5M dollars to start a new
company like it did when
founders started up ten
or fifteen years ago.

6. But More Expensive to Scale
Increasing scaling costs
•
•
Companies that achieve
product market fit will often
kick their growth into high
gear by ramping up their
budgets.
Separately, customer
acquisition channels tend to
become saturated which
further increases costs at the
scaling stage.

7. No One is Alone -• Supports for entrepreneurs exist around the globe
• Startup America, Startup Canada, Startup Britain, Startup Chile, Startup
Brazil…support local (city level), entrepreneur-led initiatives to create
hubs of vibrant entrepreneurial activity
• Locally - solve challenges + develop model for what “better” looks like
• Highlight / reward best practices to encourage emulation
• Connect the leaders to each other for peer-to-peer sharing --- created
the beginnings to what can become a true global startup ecosystem

8. Entrepreneurship Demystified
• Best selling books sharing
philosophies, fundamentals, methodologies – Lean Startup (Eric
Ries), Startup Owners’ Manual (Steve Blank, Bob Dorf), Startup
Communities (Brad Feld). The authors travel and speak globally.
• Blogs (by top VC’s and successful entrepreneurs) read by a global
audience (Fred Wilson, Chris Dixon, Mark Suster, etc.)
• Global participation in top accelerator programs such as Y
Combinator, 500 Startups, Tech Stars. Graduates frequently return
home rather than staying in the US.
• Collegiate level entrepreneurship programs – in the US, there are
over 2,000 full-time entrepreneurship programs in existence now
versus just 16 in 1970
• Anyone, anywhere can participate, engage, learn and use the best
practices of high growth entrepreneurship.

9. New Hubs of Entrepreneurship
“Everywhere Else”
New ecosystems are successfully evolving in a fraction of the time that it took Silicon Valley
or Boston to emerge
Ecosystem Within Four Walls
Co-working spaces with embedded incubators, accelerators, and capital are quickly
becoming the epicenters for their local startup communities
Entrepreneurs digging wherever there is gold
Entrepreneurial mobility – Entrepreneurs are not starting / staying where they are from, not
loyal to any single community
Cross-community Collaboration
Initiatives like the Startup Federation enable entrepreneurs to virtually and physically
circumnavigate the globe

10. FACT:
Entrepreneurship is a global
phenomenon

11. Beyond the Valley
• Through the trade, foreign direct investment, political idea exchanges,
capital flows, migration, the spread of technology, and elimination of
barriers (tech, communication, travel), the world’s markets and
businesses are increasingly connected and interdependent.
• The vast majority of global GDP growth is happening in developing and
emerging markets like China, India, Brazil, Russia, Indonesia, Turkey,
and Mexico.

12. Startups are De-clustering
• Technology advances have made it entirely feasible to build highly
complex solutions from anywhere
• This pushes against the traditional notion that startups need to cluster
together around a physical center of commerce.
• Traditional centers of entrepreneurship will remain, but we are seeing
the rise of “everywhere else”

13. Competing on the Global Stage
• Globally-minded investors aggressively pursuing “the best possible
deals in the world”
• 500 Startups - one new investment somewhere on the planet
about every three days.
• Challenge Cup – global competition in 16 cities to find the most
promising startups in education, health, energy, smart cities

14. FACT:
Early stage venture investing is
undergoing massive disruption
(in favor of entrepreneurs!)

15. Entirely New Approaches
“Venture Capital is open to attack by disruptive new
business models and technology.”
Naval Ravikant

16. Out with the old…
• Investors no longer taking a board seat -- unbundling of
advice, control and money
• Financing terms are increasingly being standardized
• Convertible notes are becoming the norm at the early
stage
• Fundraising rounds are trending to continuous, rather
than discrete, rounds (no fixed amounts, no closings)
• Prices are beginning to float
• Herd mentality is stronger than ever in early stage rounds
today (something entrepreneurs can easily leverage)
• Rise of “super angel” / small bets

17. In with the new…
Transparency
• Leveling the playing field between investors and entrepreneurs (but
raising the bar for everyone)
• Platforms like AngelList now allow entrepreneurs to follow investors, see
who they’re following, which startups they’re interacting with and more
• Massive amounts of information available to entrepreneurs online:
• Demo day live streams
• Sample pitch decks
• Standard terms sheets
• VC 101
• Entrepreneurs can easily evaluate the investor and decide if they want to
let them in the deal.

18. Quantified Startup
• Using data to make better investment decisions
• Everything from social metrics to real-time user and accounting data
to how many code commits the developers make
• Real-time tracking and dash boarding of data to quickly identify (and
potentially shed) lagging portfolio companies
• Enables a shift from an opaque and semi-closed system to a
transparent and open environment which more merit based than it
has ever been.
• Emergence of platforms and tools -- Dashboard.io (Paul Singh of 500
Startups), Mattermark (“where big data meets venture capital”)

19. Entirely New Approaches to early stage investing
Crowdfunding:
• Over 1M crowdfunding campaigns globally in 2012, raising over $2.7B
• Only 4% were equity campaigns
• As more countries allow equity crowdfunding, expect these figures to
grow exponentially
• Platforms like Funder’s Club, wefunder, and CircleUp driving significant
interest in equity crowdfunding
Syndicates:
• Any accredited investor on AngelList can create, lead and collect carry for
a fund of angel money for a specific startup.
• “If I were young & wanted to be in VC I would…set up shop on AngelList
organizing syndicates.” (Fred Wilson, Union Square Ventures)

20. FACT:
Socially-driven Disruption
Is Upending Every Industry
(opportunities are everywhere!)

21. Socially-driven Disruption
• Rise of the social web is creating peer-to-peer models of social
business disrupting numerous industries
• In media, content producers can connect directly with their
audience upending traditional models
• In manufacturing, platforms like Etsy help creators monetize their
services without having to go through the usual channels or
middlemen
• In services, such as hotels and taxis, which can be easily socialized
companies like Uber, Lyft, Hailo, Airbnb, SideCar and TaskRabbit are
succeeding

22. Internet 2.0: Socially Impactful Disruption
“The first revolution started in the '90s with the release of the web and
consumer email. The goal was to get everyone online and make the Internet
part of everyday life. That goal has largely been achieved. Now that the
Internet is ubiquitous and mobile, we've entered the second revolution,
which will improve education, health care, energy and transportation.”
---- Steve Case
• Socially-driven disruption is now moving through the rest of the
economy
• Key targets are education, healthcare and other service sectors
which are ripe for disruption, where social “pull” can drive structural
industry change

23. Good for the World; Good for Investors
Consumer Web: $70b
Health: $1,067b
Education: $869b
Energy: $1,200b

24. In the Internet Revolution, entrepreneurs will be more
powerful and more disruptive than we can imagine.
1. We are nearing a time when anyone, anywhere can create
the next massively high growth company
2. Entrepreneurship is a global phenomenon – anyone can
build highly complex solutions from anywhere
3. Early stage venture investing is undergoing massive
disruption (in favor of entrepreneurs!)
4. Socially-driven Disruption Is Upending Every Industry
(opportunities are everywhere!), especially in important
arenas like education, healthcare, energy and
transportation

25. Shifting Global Economic Mindset
It’s a whole different world out there…
Local
Corporate
Global
Entrepreneurial
Hierarchical
Closed
Networked
Transparent
Transactional
Transformational

26. In the Internet Revolution, entrepreneurs will be more
powerful and more disruptive than we can imagine.

27. Donna Harris
Cofounder
@dharrisindc