Top Banner
Ethan Kurzweil Bessemer Venture Partners Startup Idol Conference July 23, 2009 VC Perspective on Trends in Investing Presentation online at: http://www.slideshare.net/ethankurz
27

WebGuild Startup Idol VC Perspective

Jan 24, 2015

Download

Technology

ethankurz

Presentation to Startup Idol Conference
Ethan Kurzweil
Bessemer Venture Partners
July 23, 2009
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: WebGuild Startup Idol VC Perspective

Ethan Kurzweil

Bessemer Venture Partners

Startup Idol Conference

July 23, 2009

VC Perspective on Trends in Investing

Presentation online at: http://www.slideshare.net/ethankurz

Page 2: WebGuild Startup Idol VC Perspective

Bessemer Venture PartnersFounded 1911

Mumbai (India)

IsraelBostonNew York

Califonia

Presentation online at: http://www.slideshare.net/ethankurz

Page 3: WebGuild Startup Idol VC Perspective

Andre PeroldFinance Professor

Harvard Business School

$100 Trillion

And so you asked for trends…

Page 4: WebGuild Startup Idol VC Perspective

Page 13

USA Venture-backed M&A and IPO transactionsExit activity falls in the wake of the financial crisis

45

101

2111 13

2430 33

51

25

3

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1200

9

19.5 19.2

1.8 1.6 1.53.7

6.8

0.6

5

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

Q1200

9

US venture-backed M&A transactions $Band number of transactions

US venture-backed IPO amount raised by transactions $B and number of transactions302 200 390 393 361 480 465 471 462 348 68 250 202 22 20 23 67 43 56 76 7

Source: Dow Jones VentureSource Note: chart scales vary for clarity

2.4

Page 5: WebGuild Startup Idol VC Perspective

$3.9

$6.0

$7.8$8.2

$7.8$7.9$8.1$8.1

$7.3$6.6

$7.8$7.6

$6.5477

601635

701706725683

791

653640695713

640

$0

$2

$4

$6

$8

$10

1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09

0

150

300

450

600

750

Amount Invested ($B) Number of Deals

Investment Activity Declines in 1Q ‘09Deal Flow and Equity into Venture-Backed Companies

Am

ount

Inve

sted

($B) N

um

ber of Deals

Source: Dow Jones VentureSource

Page 6: WebGuild Startup Idol VC Perspective

Signs of hope in Q2…

Page 7: WebGuild Startup Idol VC Perspective

And even better, first-time financings are on the rise

Page 8: WebGuild Startup Idol VC Perspective

When Great Companies Were Founded…

1980 1982 1984 1986 1988 1990 1992 1994 1996

FORE SYSTEMS

Page 9: WebGuild Startup Idol VC Perspective

When Great Companies Were Founded…

2001 2002 2003 2004 2005 2006 2007

Page 10: WebGuild Startup Idol VC Perspective

What’s hot right now?

Page 11: WebGuild Startup Idol VC Perspective

Big Markets

• Energy• Internet• Stem Cells• Security• Mobile• Consumerization of

enterprise software

• India• Web Video• Social Gaming• Virtualization• SaaS

Page 12: WebGuild Startup Idol VC Perspective

Resistant: Open Source, Virtualization, Low Cost Recurring

Revenue Models

Portfolio Analysis of Exposure to Changes in GDP

Immune: Cure Cancer , Cost Saving Non-Elective HC Services

Exposed: Consumer Products, Internet Display Ads, Elective

Surgery

Source: Scale Venture Partners

Benefited by GDPChanges

Page 13: WebGuild Startup Idol VC Perspective

Page 18

Israel: Current status of VC-backed companies by year of initial financing

30

8

108

23

169

276 18

1996-2001

2002-2008

IPO M&A Private & Independent Out of Business

225

Source: Dow Jones VentureSource

Year of initial VC financing

325

► In Israel 325 companies have received initial VC financing globally since 2002 and US$2.8 billion has been invested in them to date.

► In the israel 70 Venture-backed M&A and IPO transactions were at 2007-2008

532

Page 19

Total capital invested to date in Israel VC-backed companies by year of initial financing and current status

$2,536.3

76

$134.9

$28.0

1996-2001

2002-2008

Source: Dow Jones VentureSource

Year of initial VC financing

►Israel Venture-backed M&A and IPO transactions value at 2007-2008 is $ 3.9B

$2.8B

$5.7B

Source: Dow Jones VentureSource

Failure *is* an option...

Page 14: WebGuild Startup Idol VC Perspective

Bessemer’s Law of Internet Efficiency

Cost

1995 1999 2003 2007

“The time and money required to

produce (design, develop, test, launch,

scale) a basic e-commerce application

drops in half every two years.”

$300

$20,000

NetScape

Apache

Java

ActiveX

Flash

Shockwave

PHP

XML

Ruby on Rails

service APIs

Amazon EC2

AJAX

Web Application Development

And here’s why…

Page 15: WebGuild Startup Idol VC Perspective

Twitter

Page 16: WebGuild Startup Idol VC Perspective

Piryx

Page 18: WebGuild Startup Idol VC Perspective

MashLogic

“It’s like a frickin Swiss Army Knife for hyperlinks…I’m putting this on my must-have list of Firefox addons.”

Page 19: WebGuild Startup Idol VC Perspective

What’s hot right now?

CAPITALEFFICIENT

Page 20: WebGuild Startup Idol VC Perspective

Tip #1: Meet your new sales force…

Page 21: WebGuild Startup Idol VC Perspective

Tip #1: Meet your new sales force…

Page 22: WebGuild Startup Idol VC Perspective

Tip #2: Get someone else to do it

Page 23: WebGuild Startup Idol VC Perspective

Tip #3: Design: less is more…

Page 24: WebGuild Startup Idol VC Perspective

Tip #4: Who are your customers?

Page 25: WebGuild Startup Idol VC Perspective

Tip #5: Offices are overrated

Page 26: WebGuild Startup Idol VC Perspective

If Bessemer won’t invest…

Page 27: WebGuild Startup Idol VC Perspective

Ethan Kurzweil

Bessemer Venture Partners

[email protected]

Twitter: @ethankurz

Slides available at: http://www.slideshare.net/ethankurz

Startup Idol Conference

July 23, 2009

Thanks!