Venture Capital for Long Tail Entrepreneurs

“Venture Capital for the Long Tail”describes the need for a fundamentallydifferent, economically viable modelfor creating and funding micro-businesses. Venture capital needs anew model to adapt to declining coststo start businesses, the impact ofGeneration Y and increased personaland corporate transparency andsharing.

SXSW, Sunday, March 15, Event tag: #SX09-682

@ Taylor Davidson | Unstructured Ventures

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THIS IS NOT

“How to raise venture capital.”

“How to fund your startup.”

“What is the right funding and operationalmodel for a venture capital firm today.”

INSTEAD

The future will be different than today;

What cultural, business, technological andpolitical trends are “framing” our future?

@ Taylor Davidson | Unstructured Ventures

TEN FRAMES +1

@ Taylor Davidson | Unstructured Ventures

A. Value is created at theedges, but captured at thehubs.

B. The Long Tail has manyedges ”and it better have ahub”.

@ Taylor Davidson | Unstructured Ventures

Broken or not, venturecapital is ripe forcreative destructionand reconstruction.

@ Taylor Davidson | Unstructured Ventures

… preferred and common equity, convertible debt, venture debt, SBA, SBIC, DARPA, universityresearch grants, mutual guarantee funds, angel, seed, pre-seed, Series A, B, C, “friends and family”,angel and entrepreneur investment tax credits, bootstrapping, consulting, bridge financing, “smart”and “dumb” money, mentorship-based capital, social venture commons …

Incubate people, notcompanies.

“Lifestyle business” shouldn’t be adirty word.

@ Taylor Davidson | Unstructured Ventures

Collaboration is a corecompetence.

@ Taylor Davidson | Unstructured Ventures

Companies are people.

“Transparent lives” will create“transparent companies”.

@ Taylor Davidson | Unstructured Ventures

“Scaling people” is theuntapped promise ofthe Internet.

Creating context is more valuablethan creating content.

@ Taylor Davidson | Unstructured Ventures

Social capital isn’tnew, but everythingabout it is.

@ Taylor Davidson | Unstructured Ventures

Value (flow) is king.

Value > Cash

Flow > Stock

@ Taylor Davidson | Unstructured Ventures

“Passion allocation” ismore important thanasset allocation.

Time, passion and attention are the most

important costs of tomorrow’s economy.

Taylor Davidson | Unstructured Ventures@ Taylor Davidson | Unstructured Ventures

Generation Y isn’twaiting around.

Conflicts create companies.

@ Taylor Davidson | Unstructured Ventures

Everyone is a futurist.

Yet we’ll almost always be wrong.

@ Taylor Davidson | Unstructured Ventures