1 / 6

How do you build high potential start-ups?

How do you build high potential start-ups?. September 2011 Erik Straser, es@mdv.com. Firm Overview. 28 Years of Early Stage Venture Investing Leadership. Founded in 1983 Invested in more than 275 companies Over $2.8B aggregate LP distribution to date

telma
Download Presentation

How do you build high potential start-ups?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. How do you build high potential start-ups? September 2011 Erik Straser, es@mdv.com

  2. Firm Overview 28 Years of Early Stage Venture Investing Leadership • Founded in 1983 • Invested in more than 275 companies • Over $2.8B aggregate LP distribution to date • Currently investing from our Ninth Fund; $1.85 under active management Differentiated, Thesis-Led Strategy • Deep domain expertise • Multi-disciplinary • Active, hands-on company builders • Leaders in public policy Diversified Across Three Categories • Cleantech: Solar, Storage, Smart Grid • IT: Enterprise Focused Application & Infrastructure and Consumer Web/ Mobile/Social • Life Sciences: Personalized Medicine and Transformational IT Passionate Commitment to Innovation and Entrepreneurship • Hands-on company builders • Stubborn belief that innovation lies at core of venture returns • Culture of risk-taking, pioneering new areas

  3. Entrepreneurs • The fundamental ingredient • Many people are entrepreneurial, very few are entrepreneurs • Come in usually two types: • Market visionary: have a deep understanding of a market in flux • Technical visionary: have a deep understanding of how a technology could transform a market • Craft credible, measured paths to risk reduction • Are efficient at aggregating resources • Capital • People

  4. Markets • Two types of markets: • Large, incumbent markets being subjected to new forces • Fast growing prospective markets • Being created or transformed by: • New technology • New business models • New Regulatory Environment • Markets that are addressable by a startup • Sales and Marketing • Distribution and Service

  5. Capital • That is available to the best entrepreneurs and companies from: • Angels • Early stage (pre-revenue or early revenue) • Strategic Partners • Late stage (growth capital) • Mezzanine (expansion capital) • Exit via public markets (IPO) or trade sale • That can be patient • That is sufficient in size to finance the company all the way • That understands the risk it is taking • That understands how downstream capital behaves • That is rewarded, along with management, in success

  6. Ecosystem • Hardest thing to replicate about Silicon Valley • Culture of risk taking and a culture that tolerates “smart” failure • Rational policy and regulatory framework that allows startups to succeed • Self reinforcing system • Research Universities for technology and raw talent • Healthy large companies nearby for managerial talent • Risk taking capital • Service providers that understand how to service a startup • Legal • Accounting • Real Estate • Banks and Financial Services • Rewards success both financially and culturally

More Related