American Idol - Bootstrapping

LivingtheDreamaninvestmentopportunity...

LivingtheDreamaninvestmentopportunity...

InvestmentSought:$1,150,000

Timeframe:12months

Poten7alReturn:10X

Salaryforme:$120,000/12months

Weightreduc7onsandfitnessprogram:$120,000/9months

LivingtheDreamaninvestmentopportunity...

HairTransplant:$90,000/6months

Cosme7cSurgery:$120,000/9month

Wardrobe&Stylist:$400,000/1month

LivingtheDreamaninvestmentopportunity...

VoiceTraining:$100,000/12months

GuitarLessons:$100,000/12months

DanceLessons:$100,000/12months

LivingtheDreamaninvestmentopportunity...

Areyouin?Youshouldn’tbe…

LivingtheDreamaninvestmentopportunity...

Yourdreamsandideasdon’townyou…

Thesis:

Itisagreat7metostartabusinessinTexas!

But,yousay…•  Therearefewac@veVCsleDinTexas...

•  Theangelsarebroke...

Itdoesn’tmaPer...TheVCmodelisdying(fornow)ANDVCmoneyisusuallybadforyourbusiness!‐  VC/Angelinvestment=lowerchanceofa1‐5xreturn‐  VC/Angelinvestment=higherchanceofcompletefailure

‐  VC/Angelinvestment=slowerexit(typicallyadecade)

…oh,didImen,on,youhavea50%chanceofge7ngfiredinthefirstyeara<eraVCinvestment?

Whatkindofbusinessshouldyoustart?

–  Whatareyoupassionateabout?

–  Whatexperiencedoyouhave?–  Howmuchmoneydoyouhave?

–  Howmuchmoneycanyouraise?–  Howlikelyisyourbusinesstosucceed?

Gates(so<ware),Dell(resale)andCuban(service)startedbusinessesthatgeneratedposi,vecashfromthestart,theydidnotneedmuch(ifany)outsideinvestment.

Revolu7onRopes

SandyStephens‐  BeSerropes

‐  $60MMmarket

‐  Part‐@meun@llaunch‐  Profitable

ShopSavvy

RylanBarnes‐  BeSershopping

‐  $12Bmarket

‐  Part‐@meun@llaunch‐  GrowthStage

RPValet

RPPayervand‐  BeSerparking

‐  $7Bmarket

‐  Part‐@meun@llaunch‐  VERYProfitable

Architel

ScoPRyan‐  BeSerITservices

‐  $3.2‐10Bmarket

‐  Part‐@metolaunch‐  Profitable

BeCapitalEfficient

•  Startabusinessyoucanbuildwithoutoutsidecapital.

•  Focusonservices,soDwareortechnology.

•  Assumeyouwillneedtobeprofitable.•  Startsellingimmediately.

•  Partnerprolifically.

Ques7ons?