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Doerr_ETL Feb05v2

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					           Everywhere We Look We See

….the Power of
Networks and
Entrepreneurs

John Doerr
& Aileen Lee
KPCB
January 26, 2005
    Your Time, Your Topics

•     •        •       •




                             2
        Q’s for you


•   What are your priorities?
•   How to make meaning?
•   How to achieve success? And…
•   Someday, how will you measure your
    success… and its significance?


                                     3
         Your Priorities? (ok, mine)

1.   Families, friends, and loved ones
2.   Professional peers, team, growth
3.   Customers, clients
4.   __________________
5.   Community



                                         4
     What makes a Great Venture?


• A+ Leadership, Passionate Founders
• Commitment to Technical Excellence
• Large, Rapidly Growing, Unserved
  Market
• Reasonable Financings




                                       5
          A+ Leadership, Founders

• Outstanding technical talent, intelligence
  – Want to build the world’s best company, not a quick flip or an
    IPO
  – Obsessed with customers, not competition
  – Building a team, product or service, not a deal or a play
  – Sense of urgency, and yet patience
• People we want to get into trouble with?
• References!
• Great people is what’s in shortest supply…



                                                                     6
            Mercenaries vs. Missionaries

drive, paranoia             passion
opportunistic               strategic
“the pitch, the deal”       “the big idea, partnership”
sprint, short run           marathon, long run
obsess on competition       obsess on customers
aristocracy of founder(s)   meritocracy, best idea wins
financial statements        mission, values statement
bosses of wolf packs        mentors, coaches of teams
entitlement                 contribution
the “deferred life” plan    a whole life (that works)
lust for making money       lust to make meaning (& money)
success                     significance

                                                             7
       Commitment to Technical
       Excellence

• Order-of-magnitude technology change
   – Measurable differentiation vs competition, alternatives
   – Measurable ROI
• Innovation - in product, process, or capability
• Strong IP, defensible
• Examples: Google, Genomic Health, Infinera




                                                               8
      Large, Growing Market

• How large is the market ($Bns)
• Market need
  – Do customers identify with need? Can return be measured?

• Path to Market
  – What change is required for adoption
  – Ideally, bought, not sold
• Business Model
  – Building authoritative, trusted brand
  – Obsess on customer experience
  – Leverages network effects



                                                           9
      Reasonable Financings

• Reality check key assumptions to the plan
  – Comparable company comparisons?
• Technology risk out upfront
  – How much will be required for marketing, customer
    acquisition?
• Capital to reach measurable milestones,
  breakeven
• Possible returns on investment




                                                        10
        Best Practices

•   Incredible networking
•   360s
•   Coaching
•   Mentoring
•   Time Buddy
•   White Books
•   Reference Checking
•   OKRs

                            11
       Great Groups

• Great groups have shaped our world
• "collaborative advantage,” the Lone Ranger is
  dead…
• Key elements:
   – strong leader
   – enormously talented people
   – sense of mission
   – culture of pragmatic optimism
   – Inexperience can be an asset
• See Organizing Genius, by Warren Bennis


                                              12
     Consilience

• “A jumping together”… unified
  learning
• Integrate knowledge across
  sciences and humanities
• Don’t be “professionally atomized”




                                       13
          Recent Investment Initiatives

1.   Wi-Fi, Wireless, Handweb (Quorum, Stoke, Good,
     PalmOne, Kodiak)
2.   Enterprise Security and Search (Fortify, Oakley,
     Visible Path)
3.   Consumer Content, Services and Search (Google,
     Digital Chocolate, Friendster, stealth)
4.   Open Source (SpikeSource, Xensource)
5.   Nexgen chips, Memory (Infinera, Mobilygen, Zettacore)
6.   Energy Innovations (several stealth)
7.   Evidence-based EMR (Wellinx)
8.   Personalized Medicine (XDX, Genomic Health)
9.   Social & Policy Entrepreneurs (NewSchools fund,
     prop 71 stem cell initiative, Grameen Bank)

                                                      14
16
1. britney spears
2. paris hilton
3. christina aguilera
4. pamela anderson
5. chat
6. games
7. carmen electra
8. orlando bloom
9. harry potter
10. mp3

                        17
       From Google Labs

• Suggest- Suggests searches as you type
  them in
• Scholar- Access to academic publications
• Local- Yellow pages & indexed web
  pages, ex. Vegetarian pizza
• Desktop Search- Searching your own
  files as easy as the web
• Blogger- Global, free speech

                                         18
      The Power of Entrepreneurs

• Provocateurs, risk takers, innovators for
  rapid, scalable change
• Do more than anyone thinks possible
  with less than anyone thinks possible
• Missionaries, not mercenaries




                                              19
            Call to Action

•   Find, be, and connect with mentors
•   Prioritize and measure
•   Build or join a great group
•   Use this time to learn – consiliate (?)

• Send your 3 best ideas, books, blogs,
  websites, and resume to:
    jdoerr@kpcb.com, alee@kpcb.com
* 3+ categories = google gift


                                              20
Appendix




           21
       Thank you


• Slides: jdoerr@kpcb and 3 books that
  inspire you




                                         22
           Kleiner’s Laws              (Doerr’s Discoveries)


1. Risk Up Front, Out Early
     Don’t Make $$$ By Cutting Tough Deals
2.   There is a Time          When Panic Appropriate
     Only Back Teams you wouldn’t mind...
3.   The Time to Grab               Hors D’Oeuvre...
     You can raise too much as well as too little...
4.   Never sell stock in rapidly growing
     Build backlog, if can’t measure, isn’t real
5.   Abhor market risk
     All of risk is in 4 parts...

                                                           23
        Kleiner’s Laws (Doerr’s Discoveries)
6. Everyone in new venture is selling
   Prefer products bought, not sold
7. Formula easy: tech, mkt, people
   It’s reality that’s difficult
8. VC is people, people, people
   Teams win. Plenty of tech, ent, mkt, $$$
9. VC is a service business
   Want KPCB to be a full service operation
10. Time to be nicest is saying no
    Never been better time than now
11. Don’t be dumb
                                               24
        Stories & Scar Tissue

• The microprocessor & PC:
  – Intel, Compaq, Lotus, Sun, Silicon Compilers,
    Citrix, Dynabook, GO, Symantec, Intuit
• The internet:
  – AOL/Netscape, Excite@home, Amazon,
    Drugstore, Verisign, Google, Friendster, Sun,
    WebMD, Homestore, Blue Nile, Autotrader




                                                25

				
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