Inefficiencies in Venture Capital

The Funding Of

Innovation

is BROKEN

is BROKEN

But Why?

is BROKENCHAOS

1) Those who get lost between the cracks

1) Those who get lost between the cracksa.) Pre-Revenue, niche, consumer goods

1) Those who get lost between the cracksa.) Pre-Revenue, niche, consumer goodsb.) Hybrid business models

1) Those who get lost between the cracksa.) Pre-Revenue, niche, consumer goodsb.) Hybrid business modelsc.) Non Ivy-league

1) Those who get lost between the cracksa.) Pre-Revenue, niche, consumer goodsb.) Hybrid business modelsc.) Non Ivy-leagued.) Minorities (this includes Women)

2) Location

2) Locationa.) Invest Local, but think Global

2) Locationa.) Invest Local, but think Globalb.) Waiting for deals to find you

2) Locationa.) Invest Local, but think Globalb.) Waiting for deals to find youc.) Seeking out investments at events

3) Investors Themselves

3) Investors Themselvesa.) Introduction Requirements

3) Investors Themselvesa.) Introduction Requirementsb.) Risk Aversion

3) Investors Themselvesa.) Introduction Requirementsb.) Risk Aversionc.) Multiple GP decision making (& mandates)

4) Trends

4) Trendsa.) Funding Today’s Trends

4) Trendsa.) Funding Today’s Trendsinstead of...

4) Trendsa.) Funding Today’s Trendsinstead of...b.) Funding based on Future Trend Predictions

Following a Trend

Following a TrendLeads to More Clones

Create Trends

Spot Trends

Don’t Follow Them

As Benjamin Graham would have said...

it’s a pendulum

Don’t chase a rising pendulum (trend)

All reach a peak before they fall

All these things...

...are part of Risk

Without Risk, There is NO Great Reward!

True Disruption Carries MORE RiskThan the average company

Their founders and/or their ideasare usually called

“CRAZY”

ONLY THOSE CRAZY ENOUGH TO BELIEVE THEY CAN CHANGE THE WORLD

WILL DO SO...

Nikola Tesla

The Wright Brothers

Steve Jobs

Doing the same thing over and over

while getting the same results, but expecting things to change...

Doing the same thing over and over

while getting the same results, but expecting things to change...

...Is INSANE

IT’S TIME FOR NEW:

IT’S TIME FOR NEW:MODELS

IT’S TIME FOR NEW:MODELSMODES OF THOUGHT

IT’S TIME FOR NEW:MODELSMODES OF THOUGHT&SEEKING OUT THOSE WORKING ON CHANGING THE WORLD

The next Instagram WILL NOT make the world any better

Think Between The Cracksand outside of Stanford, Harvard, Etc etcetera...

I HAVE NO RACE, I AM INDIGO

THINK OUTSIDE OF YOUR CLOSE CIRCLE

THINK OUTSIDE OF YOUR CLOSE CIRCLEYOU WILL NOT KNOW EVERYONE

THINK OUTSIDE OF YOUR CLOSE CIRCLEYOU WILL NOT KNOW EVERYONE

Psst...Would you had known Tesla? who

wrote on WIFI around 1900

They took him out the

Smithsonian

THINK OUTSIDE OF YOUR CLOSE CIRCLEYOU WILL NOT KNOW EVERYONE

Would you had know Einstein, the late bloomer? His father unsuccessfully wrote a professor to try to get him a job

THINK OUTSIDE OF TODAY

THINK OUTSIDE OF TODAYIMAGINE TOMORROW