"To scout pro!table growth opportunities in relationships, both internally and externally, in emerging, mission inclusive markets, and explore new paradigms and then !lter and communicate and evangelize the !ndings."
"To serve the world's most engaged community." (AOL 2006)
A Computer on Every Desk and in Every Home
(1975)
The World On Time
Organize All the World’s Information
people
!rst 5-10==
don’t compromise
a -> ab->cc->d
metric: did i hire someone better than myself?
incentivize
options
rough post-Series A
CEO 5-10%
COO 2-5%
VP 1-2%
(Ind) Board .5-1.5%
Director 0.3-1.2%
Lead Eng 0.5-1%5+ exp Eng .33-.66%
Mgr, Jr Eng 0.1-0.33%
vesting
+ acceleration, etc
founders too
milestones
come up with a series of milestones and
break down tasks to get there
e.g.,product design done
!rst customer testbeta ready
prioritize relentlessly
types
right
consulting
lifestyle
cash"ow
50% of $1Mor
5% of $20M
venture-backed
(img cc flickr user omnidirectional)
(img cc flickr user willie_901)
for most:VC==wrong
(but it’s what I’m going to talk about)
fundraising
sex
(img cc flickr user irlandainquieta)
self ?3Fs 10-100K
angel 200K-1Mvc (series a) 1-8Mvc (series b) 5-25M
mezz 25+MIPO $lots
(some typical amounts)
friends & family
(img cc flickr user martin_hartland)
angels
successful entrepreneursretired execs
professional angels“trailblazers”angel groups
sophisticated
risk / reward
equity
$500K per engineer -$250K per MBA
Guy Kawasaki’s rule of thumb:
(said for series a in a better market)
convertible
disappearing in this marketdisappeared
75% warrant coverage
50% discount
10% per month warrant coverage
(last deals i saw for conv angel roundsw/1st-time entrepreneurs in this market
before they stopped)
20-30% discount in good market
vc
pensions, endowments
carry
“sure bets”
success:20 investments
13 "op/sideways5 2-3X2 10X
10Xes pay
only 10X potential
1000 plans250 initial pitches12 due dilligence6 investments
(img cc flickr user protoflux)
(img cc flickr user bargas)
angelportfolio
entrepreneuradvisorlawyer
CS profs
advisors
advice <-> $
pitch
practice
10
1 hour:20 mins - VC late20 mins - pitch20 mins - questions