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Joshua BaerFounder & Managing Director@joshuabaer
MISSION:Austinpreneur
Sunday, December 20, 2009
Today! My entrepreneurial journey
! $500,000 is the new $5,000,000
! Capital Factory
! Startup Lessons! Talk about your idea
! Fail Quickly
! Distribution is harder than development
Sunday, December 20, 2009
Austina great city for tech startups
! Youngest city, growing fast
! University of Texas
! Strong economy and job pool
! Low cost of living
! Outdoor lifestyle, creative class
Sunday, December 20, 2009
AustinpreneurAustin
! Texas
! Education
! Live Music
! Capitalist Hippies
! Geeks
Entrepreneur
! Creativity
! Control my destiny
! Create jobs
! Create value
! Create wealth
Sunday, December 20, 2009
Sunday, December 20, 2009
Family
Jack ResnickGrandfather
Retail Store Owner
Sam BaerGrandfather
Retail Store Owner
Al AlterGreat Uncle
Apparel Company
Robert BaerFather
Photographer
Linda BaerMother
Wedding Invitations
Cindy BaerSister
Actress & Movie Producer
Amy MathewsSister
Catering
Sunday, December 20, 2009
Sunday, December 20, 2009
1,000+ jobs
Sunday, December 20, 2009
1,000+ jobs
Sunday, December 20, 2009
The Rules Changed! Open Source
! Cloud Computing
! New Distribution Channels
! iTunes App Store
Sunday, December 20, 2009
“$500,000 is the new
$5,000,000”Mike Maples, Jr.Maples Investments
Sunday, December 20, 2009
The Rules Changed! More is expected of entrepreneurs
! Not just an idea
! Working prototype
! Feedback from real customers
! Get as far as you can without money
Sunday, December 20, 2009
Case Study: Tra!c Spike
0
25,000
50,000
75,000
100,000
125,000
Sep 1, 2009 Sep 8, 2009 Sep 15, 2009 Sep 22, 2009 Sep 29, 2009 Oct 6, 2009 Oct 13, 20090
100
200
300
400
Users Servers
Sunday, December 20, 2009
Lets do the math! 300 servers x $3,000 each = $900,000
! 300 servers x 2 hours each = 2 months
! Hardware maintenance = at least 1 FTE
! Software?
! What else?
Sunday, December 20, 2009
Funding Gap
1980 1990 2000 2010 2020
$$$ Entrepreneurs need$$$ VC’s want to invest
* take this with a grain of salt, it is meant for illustrative purposes only.
Sunday, December 20, 2009
Now is the time! It’s always best to start at the bottom
! Turmoil means opportunity
! The fluff gets weeded out
! Average venture lifespan is 7 years
! Lots of capital looking for a home
Sunday, December 20, 2009
Sunday, December 20, 2009
(3 minute video)
Sunday, December 20, 2009
Sunday, December 20, 2009
Sunday, December 20, 2009
Sunday, December 20, 2009
Sunday, December 20, 2009
up to $20,000 in cash! Not valuation setting
! You decide how to spend it
! Quit your day job
! Keep it lean
* Exact amount based on # of founders
Sunday, December 20, 2009
$20,000 in free stuff(probably closer to $50k, but who’s counting?)
Sunday, December 20, 2009
20 mentors! Customers
! Partners
! Investors
! Employees
! “Scar tissue”
Sunday, December 20, 2009
10 week program! Weekly group mentoring event
! One-on-one office hours with mentors
! Demo day at the end
! Focus on cash flow
✓ First customers
✓ Angel or VC funding
Sunday, December 20, 2009
Who did we pick?! Cubit Planning
! Famigo Games
! Hourville
! PetsMD
! Sparefoot
and why?Sunday, December 20, 2009
Who didn’t we pick?! Not a good fit for the mentors
! Not ready to commit
! Not receptive to feedback
! No technical co-founder
! Great idea, wrong team
! Lots of great ideas, but no focus
Sunday, December 20, 2009
2009 Curriculum! Fail Quickly: You are
wrong. Start acting like it.
! Rivers of Revenue: Building a marketing machine.
! Converting Sign-ups to your website
! Raising Money
! Cheerleaders: 1% of your customers could be 90% of your success.
! Business Development for Startups
! Mentor Roundtable: Regrets and Lessons
! Mentor Roundtable: Hiring and Firing
Sunday, December 20, 2009
Demo Day! 300 investors and entrepreneurs
! Keynote by Mike Maples, Jr.
! Presentations by 5 companies
! Panel discussion with VC’s
! Standing room only
! Energized Austin entrepreneurship
Sunday, December 20, 2009
Startup Lessons
Sunday, December 20, 2009
“Fear is the path to the dark side.
– Yoda, Star Wars
Fear leads to anger. Anger leads to hate.
Hate leads to suffering.”
Talk about it
Sunday, December 20, 2009
Fail Quickly! Your idea is probably wrong
! The only way to find out how it’s wrong is to get feedback from real customers
! It usually takes many, many iterations
! The faster you iterate, the faster you get to “right”
Sunday, December 20, 2009
Sunday, December 20, 2009
Distribution! Building it is the EASY part
! Getting anyone to do anything is hard
! Don’t “figure that out later”
! Partnerships can help
! Previous relationships can help
Sunday, December 20, 2009
Angel Returns! Angel investors want to find the next
Google, not the next small business
! Think 10x returns, not 30%
! Think big and small
! Paint the vision for how this can get big
! Then focus on how you get the first $$$
Sunday, December 20, 2009
Valuations! Valuation doesn’t matter
! Focus on control and board seats
! 51% of the company doesn’t matter
! 2 out of 3 board seats matters
Sunday, December 20, 2009
Most advice is BS! In an ideal world...
! But you’re not in that world.
! Most entrepreneurs don’t have options
! A lot of deals are “take it or leave it”
! If you want leverage, you need to have termsheets from more than one VC
Sunday, December 20, 2009
Your Mission! Get Puerto Rico excited about entrepreneurship
! Consider entrepreneurship for you
! Talk to others about your ideas
! Talk to me on Twitter @joshuabaer
! Apply for EnterPRize Competition
! Apply for Capital Factory
! Focus on the opportunity, not the idea
! Don’t give up!
Sunday, December 20, 2009
My MentorsBrett Hurt@bazaarbrett! Founder & CEO, Bazaarvoice! Founder & former CEO, Coremetrics
Kip McClanahan@kipmcc! Former CEO, Tipping Point! Former President, Motive! Founder & former CEO, BroadJump
Sunday, December 20, 2009
More information! http://austinpreneur.com
! http://www.capitalfactory.com
! http://www.youtube.com/capitalfactory
! @capitalfactory on Twitter
Sunday, December 20, 2009
More information! http://austinpreneur.com
! http://www.capitalfactory.com
! http://www.youtube.com/capitalfactory
! @capitalfactory on Twitter
Sunday, December 20, 2009