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2 Agenda Who Am I? State of the Start-Up Ecosystem How Have VCs Found Deals Historically? How has Data Impacted Venture Sourcing? Trends for 2015 Advice for Founders Q&A
3 Who Am I? Investor at Battery Ventures focused on B2B software investing Battery typically looks to write checks between $8 and $25M Active with our firm’s investments in Coupa, Glassdoor and Yesware www.loganvc.com
4 State of the Start-Up Ecosystem
1. Cost of starting a company is decreasing 5 Source: Mark Suster – Upfront Ventures
2. Proliferation of micro vc and microbrews 6 Source: CB Insights
3. Smart minds aren’t running to Wall Street 7 Source: Zero Hedge
4. Market sizes are expanding 8 Source: Packetworks
5. Distribution is enhancing market velocity 9
6. Companies are staying private longer 10 Source: Mark Suster – Upfront Ventures
7. Public money is playing in private markets 11 Source: CB Insights
12 So…….. what??
Valuations go up… 14 Source: Pitchbook
Round sizes go up… 15 Source: Tom Tunguz - Redpoint
Unicorns go up… 16 Source: CB Insights
… And winners take all 17 Source: Play Bigger Advisors, LLC.
18 Entrepreneurs should be all like….
19 Because great companies are started in all markets For a full list of all Battery investments and exits, please visit www.battery.com Nasdaq
20 You just need to keep building value …
21 … and growing up and to the right
How Have VCs Found Deals Historically? 22
Method 1: Smile and dial 23
Method 2: Networking and referrals 24
How has Data Impacted Venture Sourcing? 25
The Godfathers: LinkedIn and TechCrunch 26 LinkedIn provided new insights into both companies and employees Crunchbase crowdsourced funding information and provided extensive coverage on the start-up ecosystem
Commercialization for the have nots 27 Companies like Facebook, Netflix, LinkedIn, Twitter, AirBnB etc. built tools to handle their scale that were later commercialized Mattermark took practices that were done at the top venture firms and institutionalized it for the masses… . … and made it searchable by investor, stage, business model etc.
Tools have proliferated 28 Company-Focused People-Focused For a full list of all Battery investments and exits, please visit www.battery.com
29 So…….. what??
Targeted outreach 30
Trends for 2015 31
More dinosaurs gonna die 32 Bubble, My Ass: Some Unicorns Might Be Overvalued, But All Dinosaurs Gonna Die. By Dave McClure
More security breaches are coming 33
Advice for Founders 34
Stay lean and talk to all potential customer… 35
… and diligence VCs before reaching out 36
Don’t optimize for valuation early … 37
… because it’s a long journey 38
… but a fun one 39