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:
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 email@example.com
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 The Stack Management Infrastructure Applications Services
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 Technology Enabled Services Web Services Data Services Both delivered together are even better
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 What do we look for? (continued) Disruption – Markets that are being turned upside down because of technology Examples: Marketing & Media Financial Services Telecomm
8 It’s The Data Stupid! Code is commodity - Data is proprietary
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