Startups Venture Capital Decisionmaking [Entire Talk] Annie Kadavy, Redpoint Ventures with Tina Seelig, Stanford University Watch Now 47 minutes Video
Startups Building Billion Dollar Businesses [Entire Talk] Ravi Belani, Stanford University Watch Now 43 minutes Video
Jeff Hawkins, Numenta The Accidental Entrepreneur: Palm History Hawkins never really wanted to start a company, he admits. He considers himself an accidental entrepreneur who was approached by two venture capitalists while planning on building a small product.
Larry Page, Google Eric Schmidt, Google Google History Larry Page and co-founder Sergey Brin started Google while at Stanford working on their PhD's. When the company grew too big to be run from their dorm rooms, the founders made a pitch to a computer science professor who wrote them a $100,000 check on the spot. As of 2002, it is a company of almost 400 people, it handles over 1500 million searches a day, and it has been profitable for over a year.
Vinod Khosla, Khosla Ventures Technology as Driver of Change Khosla shares his view on technology-driven entrepreneurship and predicts the growing impact of technology on life, society, and the economy.
Vinod Khosla, Khosla Ventures Social Entrepreneurship In Kleiner Perkins perspective, Khosla argues, the traditional model of giving is broken. Social entrepreneurship and ways to leverage money are very important. Although there is not enough money in the world to solve the world's problems, if you apply and multiply, there are, in fact, solutions to some of these problems. Examples of companies providing these solutions include Gramine Bank and Aprotech.
Vinod Khosla, Khosla Ventures Juniper Networks: Customer Feedback Khosla talks about how Juniper Networks started, and the role of customer feedback in the product development. There was not one vendor thinking of building an OC48 router for the internet. Juniper perservered and took a risk in the technology, despite the majority of customer feedback.
Vinod Khosla, Khosla Ventures Role of VC in Valuation Things aren't ever as good or as bad as we think. Today (2002) is one of the best environments to be an investor. The last three or four years were not a lot of fun--if Khosla went to someone to build a reasonable business, the response he would get was that another company was willing to give more money for less work. He would have to explain that the role of a VC was to help companies develop a real economic model and to give an honest valuation.
Vinod Khosla, Khosla Ventures Vinod Khosla: Bit by the Entrepreneurship Bug Vinod Khosla, partner at Kleiner, Perkins, Caufield & Byers, was bitten by the entrepreneurship bug early in life when he heard about Intel starting up. He was enamored by the idea of being able to start your own company. Intel served as as a great role model, he says.
Heidi Roizen, Threshold Ventures VC's Are Open For Business Roizen gives an inside glance at what VCs hopes to invest in. Her company, Mobius, is looking to invest in various fields from nanotechnology to component level architecture, to systems and wireless space.
Heidi Roizen, Threshold Ventures Tips For a Good Pitch Heidi Roizen provides tips for giving good pitches. First, focus on getting to the next step. The day you come in for an hour-long meeting, she says, plan on a 20 min. presentation (no more); get to the value proposition in 5 minutes; be articulate; manage the meeting; show experience and establish credibility.
Heidi Roizen, Threshold Ventures What Numbers Do VC’s Look At? Roizen believes that in the VC business, most companies fail. Therefore, the rare successes of their portfolio companies has to be big. Often you hear 10X, i.e. you should see 10 times your capital coming back, she says. It is also calculated as dollars in, dollars out, or internaI rate of return (IRR). The Mobius fund today has an IRR of 90%. Roizen notes you will almost never hear a VC use IRR.
Heidi Roizen, Threshold Ventures Introduction: Mobius Venture Capital Heidi Roizen, managing director for Mobius Venture Capital, explains that Mobius Venture Capital has $1.5 B under management in current fund, $1 B in prior fund, and 100 active portfolio companies. There are ten VCs at Mobius who invest mostly in software, communication, wireless, next generation and web services, she says.
Heidi Roizen, Threshold Ventures Timing is Everything Timing is everything when starting a company, Roizen says. Mobius raised their money in a good time and now have a lot of gas in the tank, she notes. Some companies needed money in June 2001 when people were not answering phone calls. She considers this an example of bad timing.
Heidi Roizen, Threshold Ventures Small and Large Funds Roizen talks about performance and limited partners in venture capital. Smaller funds on the most part are suffering. A large funds success depends on what a startup's past performance has been.
Heidi Roizen, Stanford University Watching How People Handled the Downturn Roizen says VCs look at how companies behaved during the downturn. Mobius was upfront with their LPs about where they stood and this paid back. Entrepreneurs that were gracious and upfront will be backed again, she notes.
Frank Levinson, Finisar Corporation Creating Win-Win Relationships With Large Customers Levinson believes it is easy to feel like a little fish in a big pond when you're starting your company. He talks about leveraging what you have to make your company stand out from the rest, and it all comes back to customers.
Frank Levinson, Finisar Corporation Communicate with Customers Levinson offers the following bit of advice to brand new entrepreneurs: Talk to customers. Identify potential customers and pick their brains: What do they want? Would they buy what you're selling? And how much would they pay?"
Frank Levinson, Finisar Corporation Real Sales and Customers in Business Number 2 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Levinson talks about how a real business involves selling to customers and receiving money in return. He warns new businesses not to shy away from selling their products early on. He also gives advice on recognizing a real customer.
Frank Levinson, Finisar Corporation Naming Your Company: Put Up a Sign Number 9 in Frank Levinson's Top 10 Things You Must Have to Start a Business. Let people know you're in business, says Levinson. Name your company and put a sign up as soon as possible. Your main motivator should be the customers, he adds.
Frank Levinson, Finisar Corporation Managing The Leverage of Customer Input on Product Development Clearly, without producing something that meets a customer's needs, says Levinson, a business is not a good position to succeed. However, it's important that the business create its own goals and work to fulfill its own needs as well. He describes the best methods to reaching a compromise in this situation.
Frank Levinson, Finisar Corporation Startups that Fail: Netek Frank Levinson, founder of Finisar, begins his talk with a story about a failed startup of his, Netek. Netek is an example of company that had all of the components that are commonly considered to be necessary - idea, business plan, VC investment, team and space. But even with all of that, Netek couldn't get off the ground, he says.
David Kelley, IDEO Product Development Process: Observation Kelley talks about how the observation phase is the most overlooked part of the development process. Kelley hires social scientists to watch people complete tasks instead of asking them usability questions. He prefers to see them as customers instead of users and strongly believes that customer satisfaction comes with understanding their values. He gives examples of how his team will observe a customer in their usual environment instead of inviting them into a sterile lab for product testing. The case studies he presents include a television remote control.