Entrepreneurship 2.0Entrepreneurship 2.0

Everything has Changed. March, 2009Everything has Changed. March, 2009Everything has Changed. March, 2009Everything has Changed. March, 2009

EVERYTHINGEVERYTHINGHAS HAS

CHANGEDCHANGED

13 years ago to today is…13 years ago to today is…13 years ago to today is…13 years ago to today is…a career of no market value?!?a career of no market value?!?a career of no market value?!?a career of no market value?!?

ideas, markets, and models!ideas, markets, and models!ideas, markets, and models!ideas, markets, and models!NO! This collapse = death of oldNO! This collapse = death of oldNO! This collapse = death of oldNO! This collapse = death of old

CHANGE = CHANGE = GOODGOODFOR FOR

STARTUPSSTARTUPS

R.I.P.R.I.P. R.I.P.

DOWN WITHDOWN WITHTHE OLD THE OLD IDEAS!IDEAS!

BUILD?BUILD?is it a good time tois it a good time to

Everything has changedEverything has changedEverything has changedEverything has changed

• POINT 1: Financing has collapsed• POINT 1: Financing has collapsed

IT’S NYSE HERE!

worrying about mortgage payments

vactioning in war torn public

markets

spending their last dollar to hit

a home run

Venture capitalVenture capitalVenture capitalVenture capital

• Funds get committed on paper from Limited Partners (LPs) – Endowments, Pensions

• VCs make capital calls from LPs to fund a company through liquidity, creating reserves

• VCs earn management fees and carry only as money is actually invested

• Funds get committed on paper from Limited Partners (LPs) – Endowments, Pensions

• VCs make capital calls from LPs to fund a company through liquidity, creating reserves

• VCs earn management fees and carry only as money is actually invested

has died…has died…has died…has died…

• Limited Partner liquidity crisis– No cash for capital calls

• Under-reserved funds for existing portfolio– Expected participation by others funds

• Collpased secondary market for LP positions– 4 sellers : 1 buyer, LPs paying to drop positions

• Regulatory pressure for mark-to-market– FAS 157 collapsing reported portfolio valuations

• Limited Partner liquidity crisis– No cash for capital calls

• Under-reserved funds for existing portfolio– Expected participation by others funds

• Collpased secondary market for LP positions– 4 sellers : 1 buyer, LPs paying to drop positions

• Regulatory pressure for mark-to-market– FAS 157 collapsing reported portfolio valuations

Everything has changedEverything has changedEverything has changedEverything has changed

Market pain is your gainMarket pain is your gainMarket pain is your gainMarket pain is your gain

• Declining cost of processing power– Cheap Hardware, Cloud Resources

• Open source and free software– The Open OS, The Free Productivity Suite

• Declining labor costs– Crowdsourcing, Global Talent Pools

• Abundant real estate– The Commercial Crash of 2009

• Declining cost of processing power– Cheap Hardware, Cloud Resources

• Open source and free software– The Open OS, The Free Productivity Suite

• Declining labor costs– Crowdsourcing, Global Talent Pools

• Abundant real estate– The Commercial Crash of 2009

Everything has changedEverything has changedEverything has changedEverything has changed

People are seeking solutionsPeople are seeking solutionsPeople are seeking solutionsPeople are seeking solutions

• Massive industry failures– Banking, insurance, media

• New ideas are needed– Traditional businesses have land less to lose

• The end of the old ideas– Older generations are losing their grip…

• Massive industry failures– Banking, insurance, media

• New ideas are needed– Traditional businesses have land less to lose

• The end of the old ideas– Older generations are losing their grip…

Everything has changedEverything has changedEverything has changedEverything has changed

The career is deadThe career is deadThe career is deadThe career is dead

• Freelance workforce– The “Gig”economy, Passion careers

• Distributed teams– The best person for a task

• Working remotely– The customized home office (seaside)

• Upside compensation– Earn equity, Share profilt

• Freelance workforce– The “Gig”economy, Passion careers

• Distributed teams– The best person for a task

• Working remotely– The customized home office (seaside)

• Upside compensation– Earn equity, Share profilt

Everything has changedEverything has changedEverything has changedEverything has changed

BUILD!BUILD!yes,yes,

Entrepreneur 2.0 Traction PathEntrepreneur 2.0 Traction PathEntrepreneur 2.0 Traction PathEntrepreneur 2.0 Traction Path

• The Idea

• The Team

• Prototype

• The Launch

• Adoption

• Revenue

• Profitability

• The Idea

• The Team

• Prototype

• The Launch

• Adoption

• Revenue

• Profitability

Entrepreneur 2.0 Financing ModelEntrepreneur 2.0 Financing ModelEntrepreneur 2.0 Financing ModelEntrepreneur 2.0 Financing Model

• Customer Financing– Sell features, Front-load contracts for warrants

• Vendor Financing– Payment terms, Barter, and Promotion

• Employee Financing– Deffered compensation, Profilt sharing

• Customer Financing– Sell features, Front-load contracts for warrants

• Vendor Financing– Payment terms, Barter, and Promotion

• Employee Financing– Deffered compensation, Profilt sharing

Entrepreneur 2.0 CredoEntrepreneur 2.0 CredoEntrepreneur 2.0 CredoEntrepreneur 2.0 Credo

FAILUREFAILUREIS NOT AN IS NOT AN

OPTIONOPTION