Puerto Rico Venture Forum 2009 Keynote

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Transcript of Puerto Rico Venture Forum 2009 Keynote

  • 1.MISSION: Austinpreneur Joshua Baer Founder & Managing Director @joshuabaerSunday, December 20, 2009

2. 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 3. Austin a 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 4. AustinpreneurAustin Entrepreneur! Texas! Creativity ! Education! Control my destiny ! Live Music ! Create jobs ! Capitalist Hippies ! Create value ! Geeks! Create wealthSunday, December 20, 2009 5. Sunday, December 20, 2009 6. Family Jack ResnickSam BaerAl Alter Robert Baer GrandfatherGrandfatherGreat UncleFatherRetail Store Owner Retail Store OwnerApparel Company PhotographerLinda Baer Cindy BaerAmy MathewsMotherSisterSister Wedding InvitationsActress & Movie Producer CateringSunday, December 20, 2009 7. Sunday, December 20, 2009 8. 1,000+ jobs Sunday, December 20, 2009 9. 1,000+ jobs Sunday, December 20, 2009 10. The Rules Changed! Open Source ! Cloud Computing ! New Distribution Channels! Facebook! Twitter! iTunes App StoreSunday, December 20, 2009 11. $500,000is the new $5,000,000 Mike Maples, Jr. Maples Investments Sunday, December 20, 2009 12. 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 13. Case Study: Trac Spike 125,000 400 100,000 30075,000 20050,000 10025,000 0 0Sep 1, 2009Sep 8, 2009 Sep 15, 2009 Sep 22, 2009 Sep 29, 2009 Oct 6, 2009 Oct 13, 2009Users Servers Sunday, December 20, 2009 14. 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 15. Funding Gap 1980 19902000 2010 2020$$$ Entrepreneurs need $$$ VCs want to invest* take this with a grain of salt, it is meant for illustrative purposes only. Sunday, December 20, 2009 16. Now is the time! Its 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 17. Sunday, December 20, 2009 18. (3 minute video)Sunday, December 20, 2009 19. Sunday, December 20, 2009 20. Sunday, December 20, 2009 21. Sunday, December 20, 2009 22. Sunday, December 20, 2009 23. 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 foundersSunday, December 20, 2009 24. $20,000 in free stuff (probably closer to $50k, but whos counting?) Sunday, December 20, 2009 25. 20 mentors! Customers ! Partners ! Investors ! Employees ! Scar tissue Sunday, December 20, 2009 26. 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 fundingSunday, December 20, 2009 27. Who did we pick?! Cubit Planning ! Famigo Games ! Hourville ! PetsMD ! Sparefoot and why? Sunday, December 20, 2009 28. Who didnt 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 29. 2009 Curriculum! Fail Quickly: You are ! Cheerleaders: 1% of wrong. Start acting like your customers could it.be 90% of yoursuccess.! Rivers of Revenue: Building a marketing ! Business Development machine. for Startups! Converting Sign-ups to! Mentor Roundtable: your website Regrets and Lessons! Raising Money ! Mentor Roundtable:Hiring and FiringSunday, December 20, 2009 30. Demo Day! 300 investors and entrepreneurs ! Keynote by Mike Maples, Jr. ! Presentations by 5 companies ! Panel discussion with VCs ! Standing room only ! Energized Austin entrepreneurshipSunday, December 20, 2009 31. Startup LessonsSunday, December 20, 2009 32. Talk about it Fear is the path to the dark side.Fear leads to anger.Anger leads to hate.Hate leads to suffering. Yoda, Star Wars Sunday, December 20, 2009 33. Fail Quickly! Your idea is probably wrong ! The only way to find out how its wrong is to get feedback from real customers! It usually takes many, many iterations ! The faster you iterate, the faster you get to rightSunday, December 20, 2009 34. Sunday, December 20, 2009 35. Distribution! Building it is the EASY part ! Getting anyone to do anything is hard ! Dont figure that out later ! Partnerships can help ! Previous relationships can help Sunday, December 20, 2009 36. 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 37. Valuations! Valuation doesnt matter ! Focus on control and board seats! 51% of the company doesnt matter! 2 out of 3 board seats matters Sunday, December 20, 2009 38. Most advice is BS! In an ideal world... ! But youre not in that world. ! Most entrepreneurs dont 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 39. 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 ! Dont give up! Sunday, December 20, 2009 40. My Mentors Brett Hurt @bazaarbrett ! Founder & CEO, Bazaarvoice ! Founder & former CEO, Coremetrics Kip McClanahan @kipmcc ! Former CEO, Tipping Point ! Former President, Motive ! Founder & former CEO, BroadJumpSunday, December 20, 2009 41. More information! http://austinpreneur.com ! http://www.capitalfactory.com ! http://www.youtube.com/capitalfactory ! info@capitalfactory.com ! @capitalfactory on Twitter Sunday, December 20, 2009 42. More information! http://austinpreneur.com ! http://www.capitalfactory.com ! http://www.youtube.com/capitalfactory ! info@capitalfactory.com ! @capitalfactory on Twitter Sunday, December 20, 2009