SXSW Core Conversation, March 15th, 2009, 3:30-4:30
“Venture Capital for the Long Tail” describes the need for a fundamentally different, economically viable model for creating and funding micro-businesses. Venture capital needs a new model to adapt to declining costs to start businesses, the impact of Generation Y and increased personal and corporate transparency and sharing.
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Venture Capital for Long Tail Entrepreneurs
1. “Venture Capital for the Long Tail”
describes the need for a fundamentally
different, economically viable model
for creating and funding micro-
businesses. Venture capital needs a
new model to adapt to declining costs
to start businesses, the impact of
Generation Y and increased personal
and corporate transparency and
sharing.
SXSW, Sunday, March 15, Event tag: #SX09-682
@ Taylor Davidson | Unstructured Ventures
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Business@unstructuredventures.com
+1 540.860.4119, @tdavidson, business strategy,
photography, innovation, entrepreneurship,
financial modeling, nomad, perspective, hope
2. THIS IS NOT
“How to raise venture capital.”
“How to fund your startup.”
“What is the right funding and operational
model for a venture capital firm today.”
INSTEAD
The future will be different than today;
What cultural, business, technological and
political trends are “framing” our future?
@ Taylor Davidson | Unstructured Ventures
4. A. Value is created at the
edges, but captured at the
hubs.
B. The Long Tail has many
edges ”and it better have a
hub”.
@ Taylor Davidson | Unstructured Ventures
5. … preferred and common equity, convertible debt, venture debt, SBA, SBIC, DARPA, university
research grants, mutual guarantee funds, angel, seed, pre-seed, Series A, B, C, “friends and family”,
angel and entrepreneur investment tax credits, bootstrapping, consulting, bridge financing, “smart”
and “dumb” money, mentorship-based capital, social venture commons …
Broken or not, venture
capital is ripe for
creative destruction
and reconstruction.
@ Taylor Davidson | Unstructured Ventures
6. Incubate people, not
companies.
“Lifestyle business” shouldn’t be a
dirty word.
@ Taylor Davidson | Unstructured Ventures
7. Collaboration is a core
competence.
@ Taylor Davidson | Unstructured Ventures
8. Companies are people.
“Transparent lives” will create
“transparent companies”.
@ Taylor Davidson | Unstructured Ventures
9. “Scaling people” is the
untapped promise of
the Internet.
Creating context is more valuable
than creating content.
@ Taylor Davidson | Unstructured Ventures
10. Social capital isn’t
new, but everything
about it is.
@ Taylor Davidson | Unstructured Ventures
11. Value (flow) is king.
Value > Cash
Flow > Stock
@ Taylor Davidson | Unstructured Ventures
12. “Passion allocation” is
more important than
asset allocation.
Time, passion and attention are the most
important costs of tomorrow’s economy.
@ Taylor Davidson | Unstructured Ventures
Taylor Davidson | Unstructured Ventures
13. Generation Y isn’t
waiting around.
Conflicts create companies.
@ Taylor Davidson | Unstructured Ventures
14. Everyone is a futurist.
Yet we’ll almost always be wrong.
@ Taylor Davidson | Unstructured Ventures