3. Lower Capital Costs
01/29/15Confidential3
Core infrastructure costs for Internet businesses continue to shrink dramatically
Bandwidth Costs
Computing Costs Digital Storage Costs
4. Focus on Early Exits
01/29/15Confidential4
Sub-$50 million deals continue to make up most Internet M&A transactions
Internet M&A Activity
5. VC Model is Broken?
01/29/15Confidential5
2 out 10 Investments are winners
20% Compound Return
2 winners need 30x returns in 10Years
2 and 20 Comp Model
7. Model yourself after Ichiro
01/29/15Confidential7
“ Chicks who dig home runs aren’t the ones who appeal
to me. I think there’s sexiness in infield hits because they
require technique. I’d rather impress the chicks with my
technique than with my brute strength.Then, every now
and then, just to show I can do that, too, I might flirt a
little by hitting one out.”
8. Summary
01/29/15Confidential8
Singles or Doubles are great
First time entrepreneurs – get the Win!
Valuation is not as important as Cap Structure and Terms
Good luck!
