Slides for my talk at the StartNorfolk 3 event.

1. @paulsingh #startnorfolk
THE RISE OF THE ANGELS
(AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com

2. @paulsingh #startnorfolk
GETTING TO KNOW
500 STARTUPS BECAUSE WE’RE KIND OF A BIG DEAL
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com

3. @paulsingh #startnorfolk

4. @paulsingh #startnorfolk
EARLY STAGE
STARTUPS
HAVE CHANGED

5. @paulsingh #startnorfolk
CLOUD, OPEN SOURCE AND ONLINE DISTRIBUTION DRIVING
STARTUP COSTS
LOWER THAN EVERBUT SCALING STILL COSTS MONEY

6. @paulsingh #startnorfolk
WEB GETS BIGGER.
WORLD GETS SMALLER.

7. @paulsingh #startnorfolk
TRACTION IS THE NEW
INTELLECTUAL PROPERTY
PLATFORMS (SEARCH, SOCIAL & MOBILE) PRIMARILY DRIVING THE CHANGE.
NO LONGER “GOOD ENOUGH” TO DEPEND ON TECH DIFFERENTIATION.

8. @paulsingh #startnorfolk
CAPITAL
INCREASINGLY
COMMODITIZED
RISE OF THE ANGELS, YO!

9. @paulsingh #startnorfolk
NEW REALITY:
MONEY FOLLOWS
FOUNDERS
RISE OF THE ENTREPRENEURS, YO!

10. @paulsingh #startnorfolk
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

11. @paulsingh #startnorfolk
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

12. @paulsingh #startnorfolk
TRANSPARENCY IS
SIGNALS ARE
EVERYWHERE
BIG DATA + OPEN SOURCE ANALYTICS = NEW TECHNIQUES FOR VC

13. @paulsingh #startnorfolk
WALL STREET
BEAT US TO IT

14. @paulsingh #startnorfolk

15. @paulsingh #startnorfolk
“ UBS PROPRIETARY
SATELLITE PARKING LOT
FILL RATE ANALYSIS
POINTS TO AN
INTERESTING CADENCE
INTRA-QUARTER AND
POTENTIAL UPSIDE TO
OUR VIEW.

16. @paulsingh #startnorfolk

17. @paulsingh #startnorfolk
“
TWICE A WEEK A SMALL
HELICOPTER CIRCLES
OVER CUSHING’S TANK
FARMS ON AN OIL
INDUSTRY SPYING
MISSION.

18. @paulsingh #startnorfolk
WALL STREET
ISN’T ALONE
THESE TECHNIQUES ALREADY USED TO UNDERWRITE IN-VITRO
FERTILIZATION LENDING, PAYDAY LOANS, SUBPRIME AUTO
LENDING, HOME/PERSONAL/AUTO INSURANCE AND MORE.

19. @paulsingh #startnorfolk
IT TURNS OUT,
WE CAN DO IT, TOO SURPRISE!

20. @paulsingh #startnorfolk

21. @paulsingh #startnorfolk
+ “GUT” + TRUSTED MENTORS + MUCH, MUCH MORE DATA.

22. @paulsingh #startnorfolk
WE CAN DO IT, TOO.

23. @paulsingh #startnorfolk
WE CAN DO IT, TOO.

24. @paulsingh #startnorfolk
WE’RE DOING IT, TOO.

25. @paulsingh #startnorfolk

26. @paulsingh #startnorfolk
“ VENTURE CAPITAL IS
OPEN TO ATTACK BY
DISRUPTIVE NEW
BUSINESS MODELS AND
TECHNOLOGY.
-- NAVAL RAVIKANT (@naval)

27. @paulsingh #startnorfolk
EARLY STAGE VC
IS CHANGING
HAS CHANGED

28. @paulsingh #startnorfolk
STATE OF THE ART IN EARLY
STAGE INVESTING IS NOT
VERY SOPHISTICATED

29. @paulsingh #startnorfolk
UNBUNDLING OF
ADVICE, CONTROL
AND MONEY

30. @paulsingh #startnorfolk
USED TO BE ABOUT
CAPITAL, DEALFLOW
AND JUDGEMENT
TODAY, IT’S ABOUT ACCESS.

31. @paulsingh #startnorfolk
(500) CHECKLIST
Product solves a problem for a specific target customer
Capital-efficient businesses - operational @ <$1M funding
Primarily internet-based distribution - search, social, mobile, local
Simple revenue models - transactions, subscriptions or affiliate
Functional prototype before investment (or previous success)
Small but measurable usage - some customers, early revenue
Small but cross-functional team - engineer, design/UX, marketing

32. @paulsingh #startnorfolk
(NEW) FINANCINGS
Standardized terms
No fixed amounts, no closings, no leads
Continuous, not discrete rounds
Prices beginning to float
No Board seats at the earliest stage
Herd mentality and oversubscriptions

33. @paulsingh #startnorfolk
THE PRIVATE MARKETS
ARE BECOMING
LIQUID AND EFFICIENT

34. @paulsingh #startnorfolk
“ BY ITS NATURE, THE
INTERNET UNDERMINES
ANYONE WHOSE STATUS
DEPENDS ON
PRIVILEGED ACCESS TO
INFORMATION.
-- MICHAEL LEWIS

35. @paulsingh #startnorfolk
Demo Day Videos ⟹ livestream.com/500startups
Sample Pitch Decks ⟹ slideshare.net/500startups
Venture Capital 101 ⟹ venturehacks.com/archives
Investor Thoughts:
Brad Feld ⟹ feld.com
Fred Wilson ⟹ avc.com
Chris Dixon ⟹ cdixon.org
Mark Suster ⟹ bothsidesofthetable.com
angel.co/valuations and angel.co/salaries

36. @paulsingh #startnorfolk
YOUR KEY TAKEAWAYS
Focus on Traction.
Learn to Communicate and Inspire.

37. @paulsingh #startnorfolk
ALSO...
Distribution > Product
Tactics > Strategy
Focus on customer acquisition
Get on AngelList
Raise 12-18+ months of funding
Learn the basics of VC economics
Progress and Probability
Coming soon: dashboard.io

38. @paulsingh #startnorfolk
THE RISE OF THE ANGELS
(AND THE ENTREPRENEURS)
PAUL SINGH
@paulsingh・paul@500startups.com・resultsjunkies.com