SXSW Core Conversation, March 15th, 2009, 3:30-4:30 “Venture Capital for the Long Tail” describes the need for a fundamentally different, economically viable model for creating and funding micro-businesses. Venture capital needs a new model to adapt to declining costs to start businesses, the impact of Generation Y and increased personal and corporate transparency and sharing.

1. “Venture Capital for the Long Tail”
describes the need for a fundamentally
different, economically viable model
for creating and funding micro-
businesses. Venture capital needs a
new model to adapt to declining costs
to start businesses, the impact of
Generation Y and increased personal
and corporate transparency and
sharing.
SXSW, Sunday, March 15, Event tag: #SX09-682
@ Taylor Davidson | Unstructured Ventures
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2. THIS IS NOT
“How to raise venture capital.”
“How to fund your startup.”
“What is the right funding and operational
model for a venture capital firm today.”
INSTEAD
The future will be different than today;
What cultural, business, technological and
political trends are “framing” our future?
@ Taylor Davidson | Unstructured Ventures

3. TEN FRAMES +1
@ Taylor Davidson | Unstructured Ventures

4. A. Value is created at the
edges, but captured at the
hubs.
B. The Long Tail has many
edges ”and it better have a
hub”.
@ Taylor Davidson | Unstructured Ventures

5. … preferred and common equity, convertible debt, venture debt, SBA, SBIC, DARPA, university
research grants, mutual guarantee funds, angel, seed, pre-seed, Series A, B, C, “friends and family”,
angel and entrepreneur investment tax credits, bootstrapping, consulting, bridge financing, “smart”
and “dumb” money, mentorship-based capital, social venture commons …
Broken or not, venture
capital is ripe for
creative destruction
and reconstruction.
@ Taylor Davidson | Unstructured Ventures

6. Incubate people, not
companies.
“Lifestyle business” shouldn’t be a
dirty word.
@ Taylor Davidson | Unstructured Ventures

7. Collaboration is a core
competence.
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8. Companies are people.
“Transparent lives” will create
“transparent companies”.
@ Taylor Davidson | Unstructured Ventures

9. “Scaling people” is the
untapped promise of
the Internet.
Creating context is more valuable
than creating content.
@ Taylor Davidson | Unstructured Ventures

10. Social capital isn’t
new, but everything
about it is.
@ Taylor Davidson | Unstructured Ventures

11. Value (flow) is king.
Value > Cash
Flow > Stock
@ Taylor Davidson | Unstructured Ventures

12. “Passion allocation” is
more important than
asset allocation.
Time, passion and attention are the most
important costs of tomorrow’s economy.
@ Taylor Davidson | Unstructured Ventures
Taylor Davidson | Unstructured Ventures

13. Generation Y isn’t
waiting around.
Conflicts create companies.
@ Taylor Davidson | Unstructured Ventures

14. Everyone is a futurist.
Yet we’ll almost always be wrong.
@ Taylor Davidson | Unstructured Ventures