the reset button
DESCRIPTION
The Reset Button. The State of Funding Innovation in Q4, 2008. Let’s look on the bright side…. Very successful businesses will always find capital. Now, for the bad news…. spending their last dollar to hit a home run. IT’S NYSE HERE!. vactioning in war torn public markets. - PowerPoint PPT PresentationTRANSCRIPT
The Reset ButtonThe Reset Button
The State of Funding Innovation The State of Funding Innovation
in Q4, 2008in Q4, 2008
The State of Funding Innovation The State of Funding Innovation
in Q4, 2008in Q4, 2008
Let’s look on the bright side…Let’s look on the bright side…Let’s look on the bright side…Let’s look on the bright side…
Now, for the bad news…Now, for the bad news…Now, for the bad news…Now, for the bad news…
IT’S NYSE HERE!
worrying about mortgage payments
vactioning in war torn public
markets
spending their last dollar to hit
a home run
The model’s not working…The model’s not working…The model’s not working…The model’s not working…
FundraisingFundraising
ExitsExits
SOURCE: NVCA / Thompson Reuters Exit PollSOURCE: NVCA / Thompson Reuters VC Fundraising Q3
So, let’s export it to China…So, let’s export it to China…So, let’s export it to China…So, let’s export it to China…
IsraelIsrael
CanadaCanada
ChinaChina
EuropeEurope
IndiaIndia
SOURCE: EE Times Asia Survey 12/07
Still, nobody’s making real money…Still, nobody’s making real money…Still, nobody’s making real money…Still, nobody’s making real money…
< $50 MM $50 - $500 MM > $500 MM
FAILURE ACCEPTABLE SUCCESS
1 / 100 1 / 1,000 1 / 10,000
MANAGEMENT Bonus ~10% Value ~15% Value
INVESTORS 1x w/ lost time 3-10x >10x
EMPLOYEES Nothing Bonuses Millionaires
SUPPORT Lawyers $$$Lawyers + Bankers
Everyone
< $50 MM$50-500 MM
> $500 MMEXIT VALUES
But, society is reaping rewards…But, society is reaping rewards…But, society is reaping rewards…But, society is reaping rewards…
venture philanthropy?venture philanthropy?
The point is…The point is…The point is…The point is…
It’s about building companies…It’s about building companies…It’s about building companies…It’s about building companies…
The Present Way The Right Way
Goal Sell for $1 Billion Build a Great Company
Selection Crazy Projections Crazy Ideas
Funding Arbitrary Ownership % Needs and Progress
Support Fundraising Business Development
Some tips for VCs…Some tips for VCs…Some tips for VCs…Some tips for VCs…
• Back the unusual
• Believe in the impossible
• Stop being lazy!– help your portfolio
without conditions– back management,
don’t replace them
• Back the unusual
• Believe in the impossible
• Stop being lazy!– help your portfolio
without conditions– back management,
don’t replace them
Some tips for entrepreneurs…Some tips for entrepreneurs…Some tips for entrepreneurs…Some tips for entrepreneurs…
• Cooperate
• Conserve
• Dominate
• and, if in Israel, picthfirms outsid IsraelFIRST!
• Cooperate
• Conserve
• Dominate
• and, if in Israel, picthfirms outsid IsraelFIRST!
So, in conclusion…So, in conclusion…So, in conclusion…So, in conclusion…
IT’S NYSE HERE!