An Introdouction to Venture Capital and Microsoft Ventures

An Introduction to VC & Microsoft Ventures

Dave VoylesTech Evangelist | Microsoft@DaveVoyles

What is Microsoft Ventures?

Microsoft Ventures is a strategic partner for promising startups around the world focused on business growth & development, industrial strength technology and beautiful usable products.

Build locally, scale globally. We help smart companies take flight.

What is venture capital?

Equity financing provided by institutional investors that either manage a fund on behalf of large institutions (usually pension funds and insurance companies) or have their own proprietary pool of capital.

Venture capital (VC) is raised in a series of stages or rounds.

Source: Madison Park Group – A guide to VC

What are the different stages?

- Start-up

- Seed or Early

- Growth

- Late

Stages

- Progress that a potential investment needs to exhibit

- Amount of capital a fund might invest in a given project

- Investment time prospect (i.e., how long before the investor expects to get a return on investment)

- Investor return expectations (i.e., how much of the company will the investor expect to satisfy their return needs)

Parameters for the stages:

I’ve already got money. So why raise capital?

- Increase value of equity without considerate incremental risk

- Speed the market penetration of a company

- Deter other companies from entering the competition

- Resources are constrained by the growth of the firm

Why raise capital?

Sounds appealing. Now when should I raise capital?

- When you have positive momentum!

ie – product launch, new customers or partners, hiring of well-respected folks, etc.

When should I raise capital?

Got it. Now what’s the process like?

-~6 months of searching for funding

- Prepare documents to make a pitch (business plan, legal agreements, etc.)

- You need to know someone to make a connection for you

What’s the process like?

OK, now how does MS Ventures come into play?

How can we get funded after the accelerator ends?

At the end of the four month program, we’ll organize an Investor Demo Day where Microsoft executives as well as angel investors, venture capitalists and industry folks from all over the country will check out your technology and listen to your pitch.

The mentors will coach you so you’re as effective as possible

Where will the mentors come from?

 While Microsoft will contribute many mentors, most of the other mentors are successful entrepreneurs, business leaders and investors with diverse experiences.

Microsoft will have mentors available for Azure and Windows IoT based applications.

Mentors will also be engaged from across industries in both business and technology. Our goal is to create very broad industry and investor support for the selected companies.

What are you looking for in a company?

 We will choose great founders who are proposing solutions that solve real problems or create meaningful innovations.

Minimally, startups should have a strong founding team with a mix of business and technical expertise. We are looking for companies innovating and contributing to make homes smarter.

In short: IoT (Internet of Things) and Home Automation

What’s a normal day like?

 Each startup will have a mentor or group of mentors who will work with them on an ongoing basis.

Also, several times a week, we will organize sessions with mentors and speakers from the tech industry.

These could be Q&A sessions with the CTO of a successful startup to discuss how they overcame specific technical challenges, or a session on social marketing from some of Seattle’s best marketers.

What does this program provide?

What does this program provide? (Pt. 1)

$100,000 USD value of direct benefits; no equity taken by Microsoft.

Minimum $25k optional equity investment from American Family Ventures.

Mentorship from top entrepreneurs, investors, &Microsoft &American Family execs

Office space at Microsoft facilities.

BizSpark membership which includes access to software, dev tools, services & support.

What does this program provide? (Pt. 2)

$60k in Windows Azure credits throught he BizSpark Plus program.

Full curriculum of business and technical training and support.

Partner benefits that include pro-bono & discounted legal, accounting, banking services.

Global access to customers and investors.

Demo Day presentation to angel investors and VCs.

BizSpark – Free software, hardware & cloud?

BizSpark

BizSpark

3 years ofMicrosoft software:

MSDN Ultimate Subscriptions

$150 / month in Azure cloud

credits.Office 365 Developer

Up to 8 users per BizSpark account

per startup

Technical & product support.

Offers from network partners

Marketing visibility. Events.

Ecosystem Connections.

www.microsoft.com/bizspark

Free Website, Blog &Web App HostingHTML5

ASP.NET

Apache Tomcat 7

WordPress, Joomla!

PHP & MySQL

Django

Drupal, and many more…

10 Websites for free!• 1 GB storage, 165 MB per

day outbound data

Shared Websites: $10/month• 1 GB storage, unlimited

outbound data, custom domain support

Basic Website on A2 instance• 10 GB storage, $112/month

Microsoft Azure

Office 365: Office apps on any device

Rich experience using any Office version

Your own machine, any browser, or offline

Personalized experience on all devices

Excel 2013 for PC Office Mobile Office for iPad Office

Online

Visual StudioUltimate Edition

Mobile App Development:• Universal Windows apps for Windows

Phone & Windows tablets, hybrids, laptops & desktops

• Mobile Hybrid apps with Cordova• Mobile Web apps with HTML5 & JavaScript• Native iOS & Android apps with Xamarin

Web Applications: ASP.NET, HTML5, SPAs, support for100% client-side JavaScript frameworksCloud Development with Azure in .NET or Node

C# Scripting Editor for Unity GamesArduino Sketches, .NET Micro Framework, etc.Windows Desktop apps, Office apps, C#, C++, VB, F#, JavaScript, Python, Ruby, and more…

Free Dev Workstationsin the CloudWindows Store DevelopmentWorkstations in the cloud

Visual Studio Ultimate 2013 Update 2on Windows 8.1 Enterprise x64

Visual Studio Ultimate 2013 Update 3 with Multi-Device Hybrid Apps CTP 2.0on Windows 8.1 x64

Visual Studio Professional 14 CTP 2on Windows Server 2012 R2

Windows 7 Enterprise SP1 x64

Large instance (A3): $80/month• 4 cores, 7GB RAM• 10 hrs./day, 26

days/monthXL instance (A4): $135/month• 8 cores, 14GB RAM• 10 hrs./day, 22

days/month

Medium instance (A2): $115/mo• 2 cores, 3.5GB RAM• 24/7 uptime

IaaS: Free Virtual Machinesin the CloudWindows Server, BizTalk, SharePoint,SQL Server, Dynamics CRM, etc.

JDK 6, 7, 8 on Windows

Oracle DB & WebLogic

Oracle Linux

OpenSUSE, SUSE Linux Enterprise Server

Ubuntu

OpenLogic, and more

Two small instances (A1)• 1 core, 1.75Gb RAM• 24/7 uptime: $116/month

One medium instance (A2)• 2 cores, 3.5GB RAM• 24/7 uptime: $115/month

Memory intensive instance (A7)• 8 cores, 56GB RAM• 5 hrs./day, 22 days/mo:

$146

Microsoft Azure

Free Cloud Backendfor Mobile AppsiOS, Android, Windows, HTML5, PhoneGap, Xamarin

Broadcast Push w/ targeting (APN, GCM, WNS, etc.)

Social Integration w/ Facebook, Twitter, Google

Auto-Scale to millions of devices

Backend in C# or NodeJS

Enterprise Single Sign-On w/ Active Directory

Integrate with SQL, Oracle, SAP, MongoDB

Free Service Tier: 1-10 services• 20MB database, 500K API

calls,100K push notifications

Basic Service Tier: $101• 3M API calls, 1GB database,

1M push notifications, 15GB out

Microsoft Azure

Online Microsoft training delivered by experts to help technologists continually learn

Hundreds of courses for developers, IT Pros, students, entrepreneurs and enthusiasts

11 different languages

More than 2.1M students registered

Build your own Learning Plan

All free!

http://www.microsoftvirtualacademy.com

DEVICES

Contact Info

@DaveVoyles

@MicrosoftVentures

Facebook.com/MicrosoftVentures

[email protected]