FLC Keynote
Download as PPTX, PDF2 likes1,360 views
The document outlines insights from Chris Yeh on venture capital, emphasizing the importance of market attractiveness, technology, and team when selecting investments. It discusses the '2 and 20' model and the focus on successful outcomes while highlighting case studies like Aluna as examples of favorable investments. The recommendations stress the role of entrepreneurs in creating attractive investment packages and the need to think like a venture capitalist.
FLC Keynote
- 1. Working With Venture Capitalists FLC Far West | 26 August 2015
- 2. Who is this guy? • Chris Yeh, Managing Partner, Wasabi Ventures • @chrisyeh • angel.co/chrisyeh • Founded/invested in/advised over 100 companies • Raised over $50 million in venture capital
- 3. How Does Venture Capital Work?
- 4. How Does Venture Capital Work? • OPM (Other People’s Money) • “2 and 20” • Performance is everything • Only successes matter • Value comes from selection • “Unicorn” hunting, not company building • Minority investments
- 5. So what are VCs looking for?
- 6. A Tale of Three Legends Don Valentine, Sequoia Bill Draper, Sutter Hill & Draper Richards Dick Kramlich, NEA
- 7. You probably know their investments... Don Valentine, Sequoia Bill Draper, Sutter Hill & Draper Richards Dick Kramlich, NEA
- 8. “Only one thing matters….” Great Market Great Technology Great Team
- 9. Market Attractiveness • Size • 10% of a $1B Market = $100M/year = IPO, baby • Openness • Don’t bother creating a new desktop OS • Willingness to try new things • Financial services firms will do anything for an advantage • Successful analogous startups • If Yahoo, then Google; if MySpace, then Facebook
- 10. The Killer App • A major pain (especially in the wallet) • Aspirin, not vitamin (VMware, Uber) • A new crack (cocaine, not plumber) • Viral and/or addictive (Facebook, YouTube) • An affordable indulgence/convenience • Same, but not the same (Macbook) • Magic • Like nothing that came before (iPod/iPhone/iPad)
- 11. Unique Qualifications • Relevant, successful prior experience • Team has the complete set of required skills • The first…the leading…the only… • Relationships with key market players
- 12. The FLC challenge • Technology might not yet be productized • Market might not yet be identified • No team to tackle the problem • VCs are lazy BUT, VCs love monopolies…. It’s all about putting together the package!
- 13. Case Study: ALuna • Technology • Wireless technology spun out of SPAWAR • 40X performance, 1/10th the cost • Team • Serial entrepreneur Tim Rout • Sold Endeka to Boingo Wireless • Market • $23.3 Billion spent on LTE this year • 5G on the horizon
- 14. Recommendations • The linchpin is the entrepreneur, not the financier • Market the fact that you’re offering legal monopolies (especially in Silicon Valley!) • Think like a VC • Make sure when you license your IP, it’s part of an attractive triple-package • Technology + Team + Market • Expect to kiss a lot of frogs!
- 15. Thank you! • To stay in touch: • chris@wasabiventures.com • https://twitter.com/chrisyeh • https://www.linkedin.com/in/chrisyeh