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Announcing AI PitchForce. Apply now!

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Presented by BootstrapLabs and PeopleConnect, AI Pitchforce is a can’t-miss opportunity for AI startup entrepreneurs to present to top angel investors and VCs. It will take place August 25th from 5:00-8:30 PM at Reed Smith, 101 2nd Street, San Francisco.

The AI PitchForce judges will be:

Companies presenting can expect the following:

  • A demo table on the show floor
  • Multiple networking opportunities with guests and investors
  • An opportunity to earn $500K – $1.5M in seed funding
  • The opportunity to present in front a panel of distinguished investors

Event Format:

During the demo period in the first hour, guests and investors will be able to vote on their favorite five companies. These companies will be granted a 4 minute pitch to the panel, followed by a 4 minute Q&A session and 4 minutes of feedback from the panel. The bottom companies will then be allowed a one minute elevator pitch to the panel. From these companies, one will be chosen to have a full 4 minute pitch in front of the panel. The winner will then be selected by the panel and receive a meeting with BootstrapLabs, a meeting with Javelin Venture Partners and a $1,500 scholarship to the Keiretsu Forum Capital Access Series.

Here’s how to apply:

Rules: Any early stage company specializing in AI or Applied AI may apply

Cost: Totally Free!

Email your Executive Summary and pitch deck to info@bootstraplabs.com to apply.

Guests interested in attending can purchase tickets here: https://www.eventbrite.com/e/ai-pitchforce-tickets-26669745928

Thank you to our sponsor

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Venture Capital Disrupts Itself- Breaking the Concentration Curse

Venture Capital Disrupts Itself: Breaking the Concentration Curse

Please note this is a short version of the Venture Capital Disrupts Itself: Breaking the Concentration Curse report published by the Cambridge Associates. At the end of this blog post you can find the link to access to the original file.


 

Venture Capital Disrupts Itself: Breaking the Concentration Curse

The Old Wives Tale … Conventional investor wisdom holds that a concentrated number of certain venture firms invest in a concentrated number of companies that then account for a majority of venture capital value creation in any given year. Therefore, LPs seeking compelling venture capital returns should only commit to a handful of franchise managers. And those are precisely the managers that do not offer access. Thus, LPs are “cursed” and will never experience the differentiated return pattern offered by venture capital exposure.

Is Flawed. As the venture capital industry and technology markets have evolved and matured, however, more managers are creating significant investment value for LPs, with value increasingly created through companies located outside the United States and across a range of subsectors. Specifically, our analysis of the top 100 venture investments as measured by value creation (i.e., total gains) per year from 1995 through 2012, an 18-year period, demonstrated:

  • an average of 83 companies each year account for value creation in the top 100 investments in the asset class for each year;
  • in the post-1999 (i.e., post-bubble) period, the majority of the value creation in the top 100 each year has, on average, been generated by deals outside the top 10 deals;
  • an average of 61 firms account for value creation in the top 100 investments in venture capital per year; and
  • the composition of the firms participating in this level of value creation has changed, with new and emerging firms consistently accounting for 40%–70% of the value creation in the top 100 over the past 10 years.

In short, the widely held belief that 90% of venture industry performance is generated by just the top 10 firms (which our analysis shows was somewhat relevant pre-2000) is a catchy but unsupported claim that may lead investors to miss attractive opportunities with managers that can provide exposure to substantial value creation.

You can access the full Cambridge Associates report here.

AngelList The Worlds First On Demand VC-as-a-Service Platform

AngelList: The World’s First On Demand VC-as-a-Service Platform

beGobal Panel with Kevin Laws1

[Disclaimer: BootstrapLabs is an investor in AngelList and we have two syndicates, BootstrapLabs Syndicate and BootstrapLabs A+ Syndicate with Gil Penchina]

Last week I had the good fortune to find myself interviewing Kevin Laws, the COO of AngelList just a few days after they had launched a series of announcements that sent tremors through the entire startup and venture investment ecosystems:

  • Launched CSC Upshot: a new $400M seed fund dedicated mostly to early stage startups and syndicated deals on AngelList; which comes in addition to the existing Maiden Lane’s $25M fund launched in April 2014
  • Opened-up its backend infrastructure to offer “SPV as a Service” for angels and VCs interested in capturing pro-rata and/or additional carry on their best deals, across stages
  • Pushed its iOS App for its “joblist” marketplace

First of all, let’s briefly cover what came out of my fireside chat:

BL_KL_beGlobal_2015

  • AngelList is trying hard to stay in love with the problem they set out to solve when they first launched: “How do we help founders (globally) focus on what matters most, which is building their company and products, and spend less time fundraising?” You can sense that they have made this problem a core value at AngelList.
  • We argued that cross-border angel investing would not be possible without online platforms like AngelList, bringing both sides together (founders and angels), yet maybe more importantly without a trust & expertise based syndication model that aligns everyone’s interest, removes significant friction in the decision process (“emotional friction”) and ultimately building technology and processes to close the transactions (“physical friction”). Among the new stats shared by Kevin during our talk, he said that 10% of the capital invested online on AngelList was from outside Silicon Valley, while only 3% of completed fundraising online was for companies outside of the US. The new fund will definitely give a huge boost to the foreign capital percentage number above, unless they classify it as a US fund, event though it is backed 100% by Chinese capital.
  • Kevin placed the number of startups on AngelList at approximately 300,000 with  30,000 or 10% of them being in fundraising mode at any one time. In one sense, the odds of being “discovered” on AngelList are much better than they were in the Apple Store as of June 2015. There were over 1.5M apps, but the syndication of your round by a well known angel investor in Silicon Valley remains your best shot to stand out (kind of your equivalent to being featured by “Apple” in the store). The interesting bit for me was that this was still holding true for foreign companies trying to fundraise on AngelList. Kevin used the example of Descomplica, a Brazilian online education startup that raised $5M in February 2014 from Social+Capital, and used a syndicate led by my friend Lee Jacobs, a local angel investor with ties to Brazil, to ignite the fundraising on AngelList. Lee was also the very first to do a syndicate on AngelList so he gets pioneers’ points in my book :). Kevin also makes a very important point on the video below…you can invest anywhere but you might not be able to get your money back everywhere! Let us not forget that over 80% of technology M&A deals happen in Silicon Valley (buyer or seller is located there) and the last time I checked, corporate sales were responsible for 95% of the return of capital for VCs.

You can find a “meerkat” version of the interview here for now and I will upload a professional version from beGlobal as soon as it becomes available.

Now on with my two cents on their recent announcements:

CSC UPSHOT FUND

Some dubbed it the world’s largest seed fund and it sure is an impressive amount, but read the fine print. You realize that the investment thesis is broader…you are talking about investing in top startups (based on their metrics and syndicate leads) not just in Silicon Valley, but globally with the ability to do pro-rata and access later stage opportunities too (which are now facilitated even further due to their new SPV product). As I mentioned on stage, it takes a “Chinese billionaire” to have the humility to say “I do not have access to Silicon Valley deal flow, nor may I have the skills to vet it, but I sure can get some of the smartest people in the business to discover, vet, and syndicate some of their best deals for me, as well as secure access to follow-on funding via pro-rata rights and SPVs.” I am convinced that many institutions and family offices that invest in venture have been asking themselves why they did not think of it before, how maybe they just needed a lead to follow.

 

FREE ONLINE SPVs FOR ANGELS & VCs SYNDICATING LATER STAGE ROUNDS

This part did not grab the headlines, but this is probably the submerged part of the iceberg in my own opinion. By opening up its backend infrastructure and making these online SPVs free for Angels and VCs ($10K admin fee is spread among the LPs and AngelList does not charge any carry), AngelList is getting 3 very significant benefits:

  • they are getting all the LP contacts
  • they are accelerating the growth of their funds under management, and  
  • last but not least, they are capturing performance and return data at the source

This is by far the most significant announcement AngelList made that day for the future of AngelList.


“JOBLIST” iOS APP

If fundraising is among the top pain point of founders, recruiting talent is probably way up there as well, so it is only natural that AngelList spends a significant amount of time and capital improving its job marketplace product. It will also over time become a very strong competitive advantage and barrier to entry as “startup” skills and know-how are in very high demand across the world. There is also a very natural and synergistic relationship between fundraising and hiring since most $ startups raise goes to hiring more talent!

At BootstrapLabs we ask all our portfolio companies to create and maintain an up to date AngelList profile as a way of communicating with their stakeholders, including future employees.

Thank you to Kevin and the team at beGlobal for providing me with the opportunity!

So long and happy investing.

 

Presentation used by AngelList for their PR announcement

 

About Ben Levy


Twitter | LinkedIn

BL ProfileBen is the co-founder of BootstrapLabs, a Venture Investment Company that invests capital, experience, and skills into disruptive software companies from around the world, and helps their founders relocate to Silicon Valley to build BIG. Born in France and living in Silicon Valley for the past 17 years, Ben is a repeat entrepreneur who launched, built, and exited two startups in the financial technology space, one to Mergent, and another one to SecondMarket, who was recently acquired by NASDAQ.

He has also helped founders raise over $300M of capital from Venture Capitalists and Private Equity Investors and closed $5B worth of technology M&A transactions as an investment banker earlier in his career. He is a frequent speaker on innovation, investing, technology, entrepreneurship and globalization.