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IT Investing “It’s the end of the world as we know it and I feel fine” Fred Wilson Managing Partner Union Square Ventures 915 Broadway, New York, NY 212-994-7880.

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Presentation on theme: "IT Investing “It’s the end of the world as we know it and I feel fine” Fred Wilson Managing Partner Union Square Ventures 915 Broadway, New York, NY 212-994-7880."— Presentation transcript:

1 IT Investing “It’s the end of the world as we know it and I feel fine” Fred Wilson Managing Partner Union Square Ventures 915 Broadway, New York, NY 212-994-7880 fred@unionsquareventures.com

2 2 Degree of Diffusion Next Big-bang Deployment Period Installation Period CrashBig-bang Time IRRUPTION Institutional re-composition FRENZY SYNERGY MATURITY Source: Carlota Perez, Technological Revolutions and Financial Capital What’s Happening? We Are Here

3 3 The Stack Management Infrastructure Applications Services

4 4 What’s Changed? Fund Sizes$250mm to $1bn$100mm to $400mm MarketsLarge HorizontalSmaller Vertical Product FocusTechnical ProblemBusiness Problem TechnologyCritical Success FactorEnabler DataBy-productCore Value DifferentiationTechnical ApproachSuitability, Effectiveness, Efficiency DefensibilityIntellectual PropertySwitching Costs, Network Effects Management TeamEngineering DrivenSales, Marketing, Operations Driven Capital Requirements$30-50M$5-15M Typical Exit Values$250-500M$50-150M Valuation MetricTechnology PositionRevenue/Earnings Multiple Then Now

5 5 Technology Enabled Services  Web Services  Data Services  Both delivered together are even better

6 6 What do we look for?  Technology leverage. Can the service scale without incremental headcount and capex?  Service definition. Does the management team understand the problem/solution at a deep level?  Capital efficiency. Can the company be built for a small amount of capital?

7 7 What do we look for? (continued)  Disruption – Markets that are being turned upside down because of technology  Examples:  Marketing & Media  Financial Services  Telecomm

8 8 It’s The Data Stupid! Code is commodity - Data is proprietary

9 9 Our Investments

10 10 How We Do Business  Partner driven firm  Small is better than big  Early is better than late  We want to be the first investor  If you don’t want our advice, don’t take our money

11 11 How to reach us www.unionsquareventures.com fred@unionsquareventures.com brad@unionsquareventures.com

12 12 Or Read My Blog


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