Silicon Valley and Venture Capital by KsyIVs

VIEWS: 6 PAGES: 17

									        START-UPS:
 Opportunity Recognition,
Evaluation & Assessment
      University of Edinburgh
Informatics Entrepreneurship Class
       November 12, 2008

           Randy Haykin



                                     Page 1
Randy Haykin (A): Pattern?



   School
                              Leadership
Travel abroad
                                Roles                    Next ???




                 Functional
                                             VC &
                Development
                                           Board Roles




                                                               Page 2
Randy Haykin (A): What happened
after the case was written?
 Interactive Minds  Outlook Ventures I, II, III
  • Funded nearly 40 early-stage companies:
      Sold companies to Yahoo, Intuit, Oracle, McAfee,
  • Fund I returned 10X capital
 Investing - Haykin Capital, formed 2007
 Teaching – U. California Berkeley
 Creating - CD (www.vihchorus.org) & book
 (www.faithbalance.com)
 Next Phase : giving back to the community
  • American Cancer Society & Opportunity.org

                                                          Page 3
Lessons Learned

 Get “functional” experience if you want to
 become a future entrepreneur
 Plan well, but LIVE in the PRESENT
 Develop a life vision:
  • Live your life with Balance
  • Live your life with respect for Others
 Put something at the fulcrum/center of the
 vision – something you can bank on…



                                              Page 4
Balance Exercise




                   Page 5
   Individual Exercise
    Rate each aspect for “quality” today - am I feeling positive about this area of
    my life? or do I feel fulfilled (1 = weak, 10 = strong)

Mental/emotional fitness                  Friends
   1                 5              10               1              5                 10

Physical fitness                          Work, school, retirement
   1                 5              10               1              5                 10
Finances                                  Community
   1                 5              10               1              5                 10
Family                                    Fill in:
   1                 5              10               1              5                 10
    The “Balance Wheel”
                        Mental/emotional
                            Fitness
                           10
                            9
                            8

     _____________          7               Physical
                            6
                            5               Fitness
                            4
                            3
                            2

   Community                1
                            0                 Finances
                                              & Money



        Work, school,                      Family
        or retirement
                          Friends

Randy Haykin
www.haykin.net
    The “Balance Wheel”
                        Mental/emotional
                            Fitness
                           10
                            9
                            8
      _____________         7               Physical
                            6
                            5               Fitness
                            4
                            3
                            2

   Community                1
                            0                 Finances
                                              & Money



        Work, school,                      Family
        or retirement
                                            What’s at
                          Friends
                                           the Center?
Randy Haykin
www.haykin.net
Entrepreneurship & Opportunity
         Recognition




                                 Page 9
Opportunity Recognition & Evaluation

 Where do Start-up Ideas come from?
 How are today’s Investors looking for?
 How do Investors decide to invest in an
 opportunity?




                                           Page 10
Opportunity Recognition:
Where Do the best ideas come from?
 Customer knowledge
  • “What does the customer really want?”
  • Example: Facebook
 Adoption of a workable idea
  • “Can we improve upon something that works already?”
  • Example: Google Adsense, Apple iPod
 Functional experience
  • “Where are efficiencies to be found?”
  • Example: Saleforce.com
 Industry and knowledge
  • “Where in the value-chain can we improve things?”
  • Example: Xactly
 Research
  • “Maybe this new invention fit some need?” (“Field of Deams strategy”)
  • Example: ???
 Can you think of other examples?

                                                                            Page 11
Opportunity Recognition:
What Do Investors Look For?
    Team has experience or specific knowledge
    Large untapped market opportunity with minimum
    competition
    Revolutionary, not Evolutionary
•      Killer idea – novel, solves a need
•      A completely different way of addressing a problem
    Intellectual Property (IP) – others cannot easily duplicate
    Some Unfair Competitive Advantage
•      Key partnership, technology, customers, etc.




                                                            Page 12
Opportunity Recognitin:
Evaluation – The “Diligence Process”
Team/management
Concept & product/service
Market size and growth
Competitive environment
Operating Plan
 • Product timeline and
 • Sales & Marketing strategy
Financing Plan
 • Business Model
Funding Needs
 • Related to milestones

                                  Page 13
         Keiretsu Forum (angel network with 600+ members)
         Deal Flow Process



                        30-50
Web Site Application




                                    8-10
                                              4-5

                       Committee Deal        Keiretsu   Due       2-3
                       Review    Screening   Forum      Diligence
                                             Meeting




                                                         Multi-chapter
                                                         sharing of
Week 1                  Week 2     Week 3    Week 4      deal flow
The Venture Process
(Outlook Ventures, 2004 data)
 New deals in past year               850
 Deals meeting our criteria           360
 Deals in first team meeting          100
 Deals as Investment Briefs            50
 Deals in deep/ full diligence         25
 Deals in final partnership meeting    25
 Term sheets proposed                  10
 Deals secured & pending                6

                                          <1% of deals
                                       received are funded

                                                 Page 15
Conclusions

 Start-up ideas come from many sources
 • Mostly from entrepreneur knowing/sensing
    something that others miss
  • Not usually scientific/research




                                              Page 16
Contacting me…



  Contact:

 randy@outlookventures.com OR randy@haykin.net




                                                 Page 17

								
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