All Segments
Fred Wilson of Union Square Ventures | Disrupt NY 2013 Fireside Chat
22 segments available
Onstage at TechCrunch Disrupt with Michael Arrington and Fred Wilson. Today during Fred Wilson's interview with Michael Arrington, the two discussed how, and how not to, pitch a VC. Hearing the two speak frankly about what works and what doesn't is absolutely helpful to entrepreneurs. Keep reading here: http://goo.gl/AwzTf Subscribe to TechCrunch Today: http://goo.gl/eg167 TechCrunch Disrupt is one of the most anticipated technology conferences of the year. From April 29th -- May 1st, TechCrunch TV will be airing exclusive coverage from Manhattan Center in NYC. Disrupt NY has an all new slate of outstanding startups, influential speakers, and celebrity guests. Click here to watch event highlights: http://goo.gl/lJnwu
Segments Timeline
Late Night with Bill Gurley
Fred Wilson shares a light-hearted anecdote about his late-night outing with Bill Gurley, discussing their shared admiration for Kevin Durant. This segment sets a casual tone for the conversation, highlighting Wilson's personable nature and connections in the venture capital world.
"good morning I'm Blinded By the Light so you were just telling me backstage that you you were out partying with Bill Gurley last night until you said 4:00 a.m. Bill Gurley and I share a love for Kevin..."
The Herd Mentality in VC
Wilson critiques the venture capital industry, describing most VCs as 'sheep' who follow trends rather than lead them. He emphasizes the importance of making independent decisions and recognizing opportunities before they become obvious to others, which is crucial for successful investing.
"you were hanging out with Jim Cramer last night yes Jim Kramer who who is a lot of fun to and he's exactly the same in person as he is you know on the screen yeah there's one Jim Kramer basically you ..."
Embracing Ridicule for Success
In this segment, Wilson discusses the correlation between ridicule and successful ideas in venture capital. He suggests that if an idea is met with laughter, it might actually be a good sign, encouraging entrepreneurs to embrace unconventional concepts that challenge the status quo.
"this you you recently talked about how well first of all you said most Venture capitalists are sheep following the herd it's true yeah and uh if if other VCS are sheep what kind of animal are you I ma..."
Accidental Entrepreneurs
Wilson reflects on the concept of accidental entrepreneurship, sharing examples of successful entrepreneurs who started their ventures as hobbies. He argues that authentic passion often leads to greater success than traditional business plans, highlighting the importance of genuine interest in one's work.
"you're getting pitched and you someone should walk in and say this is going to be the stupidest thing you've ever heard and immediately you're going to say I'm listening exactly I think that's that'd ..."
The VC Pitch Process: A Shift in Perspective
Fred Wilson shares his insights on the venture capital pitching process, revealing how his perspective changed after becoming a VC. He emphasizes the need for engaging conversations over lengthy presentations, advising entrepreneurs to focus on making bold statements to capture attention.
"seems less likely to be successful you remember in the when you as you're doing this back in the 90s you know the sort of NBA plus PowerPoint plus Venture round and then you know go public right you k..."
Common Pitfalls in VC Pitches
In this segment, Wilson outlines the common mistakes entrepreneurs make during VC pitches, such as providing excessive backstory and failing to engage the audience. He stresses the importance of getting to the point quickly and making a strong initial impression to keep investors interested.
"raising money worked you know you go in You' get the partner to agree to a partner meeting you go and sit in a room very nice room always with projectors and nice drinks and you you know you'd have so..."
The Power of a Single Slide
Wilson discusses the effectiveness of simplifying presentations to a single impactful slide. He shares examples from successful pitches, illustrating how a concise and clear message can effectively communicate the opportunity and engage investors right from the start.
"hear this well and also some of the best things so I think going through a really long backstory is a bad idea well you know in 19 you know 72 I graduated from college and then in my first job I did t..."
Show, Don't Just Tell
In this segment, Wilson critiques entrepreneurs who spend excessive time discussing their product without demonstrating it. He explains that showing a product provides essential context and can significantly enhance the pitch's effectiveness, as investors prefer tangible evidence of a concept.
"could just do one just think about if there was just one slide that could describe the opportunity what Alex Leong did was he had one slide and it had you know video YouTube uh blog posts WordPress yo..."
Signs of a Successful Pitch
Wilson shares insights on how entrepreneurs can gauge the success of their pitch. He emphasizes the importance of engagement, noting that if investors are leaning in and asking questions, it indicates a positive response. Conversely, a lack of interaction suggests the pitch may not be resonating.
"product yeah okay so you know it's the backstory thing kills me and and I don't think people realize it it's they come in and it's 25 minutes there's it let me just start off by telling you a little b..."
Investing in New Payment Models
Fred Wilson discusses his interest in innovative payment solutions and digital currencies. He highlights the potential for reducing transaction costs and mentions specific investments, such as Dalala, that aim to streamline financial transactions, showcasing the evolving landscape of money management.
"this room at some point will probably be one-on-one with you what are the signs that things are going well or what's a sign that they should adjust you know it's it's the classic uh you know I guess I..."
The Marketplace Model's Resurgence
Wilson reflects on the enduring relevance of marketplace models in business, citing recent investments in companies like Science Exchange. He discusses how various sectors, from ride-sharing to arts and crafts, are increasingly adopting marketplace frameworks, indicating a significant shift in how commerce is conducted.
"to us I still love Market places we announced yesterday an investment in a company called science exchange which is a Marketplace for people who are doing research in universities and Laboratories and..."
Lessons from TheStreet.com
In this segment, Wilson recounts his experience with TheStreet.com and the missed opportunity to embrace a more authentic, real-time media model. He emphasizes the importance of allowing entrepreneurs to innovate without being overly prescriptive, reflecting on how past experiences have shaped his investment philosophy.
"legs you're talking about again randomly backstage you're talking about the street.com it started with the Jim Kramer discussion you talked about how how they were doing these amazing things that you ..."
Evolving as an Investor
Fred Wilson discusses how his approach to venture capital has changed over the years, particularly in allowing entrepreneurs more freedom to pursue their vision. He shares an anecdote about David Karp of Tumblr, illustrating the shift towards trusting founders' instincts rather than imposing traditional expectations.
"business have you learned something for that where today when you see your companies do weird things that you step back and say is there something I'm not seeing here or well one you know I think we u..."
The Fine Line of 'Crazy' Entrepreneurs
In this segment, Wilson explores the concept of 'crazy' entrepreneurs, discussing the balance between creativity and instability. He highlights the traits of successful founders, emphasizing that a bit of eccentricity can be beneficial, but warns against crossing into harmful behavior.
"ones who like say what should I do next then then you know you're in trouble you know uh the company that you were talking about yesterday that which we won't say the name of the company but I know th..."
Identifying Good Crazy vs. Bad Crazy
Fred Wilson elaborates on the characteristics that differentiate productive 'crazy' entrepreneurs from those who may be detrimental to their ventures. He shares anecdotes about notable figures like Perry Chen of Kickstarter and reflects on the challenges of recognizing these traits before investing.
"differently I think and and so you see so when I guess what I'm asking is you meet someone you're like they're crazy but it's kind of cool they've got the right name it's crazy names crazy idea but th..."
The Risks of Investing in Unstable Founders
Wilson candidly discusses the risks associated with investing in founders who may exhibit unstable behavior. He acknowledges the difficulty in identifying these traits early on and emphasizes the importance of maintaining a positive relationship with the companies they invest in.
"because it was ev's company but he was running it how crazy is EV by the way I don't think EV is that crazy EV is super creative I think EV is uh very normal but hyper creative okay whereas Pinkus is ..."
Navigating Marketplaces and Global Ventures
In this segment, Wilson addresses questions about investing in marketplaces and the venture capital landscape in Asia. He shares insights on the challenges and opportunities in Southeast Asia, highlighting the potential for growth in regions with less venture capital presence.
"compliment I just said that I think you make money with people who are crazy I think we have a few minutes to take some questions if you'd like that's fine let's do that um do we have microphones I ne..."
Geographic Diversity in Investments
Fred Wilson clarifies Union Square Ventures' investment geography, revealing that they have portfolio companies not just in New York but also in the Bay Area, Europe, and various cities across the U.S. This segment underscores the firm's commitment to a diverse investment strategy beyond traditional tech hubs.
"trajectory hey Fred i' lik your comment on marketplaces um I moved from San Francisco to Singapore to build a uh B Toc Marketplace which is you know showing Great Signs uh do you have a view in invest..."
Board Meetings Across the U.S.
Fred Wilson shares insights on how he conducts board meetings with companies located outside of New York. He discusses the importance of visiting companies in person and the dynamics of board meetings in different regions, particularly in the Midwest. This segment highlights the personal touch in venture capital management.
"fly there for board meetings or do you make them fly to New York for board I like to go to the companies in go to Europe for board meetings and de Mo uh well Albert's on the board of of uh of um dalal..."
Navigating Entrepreneurial Challenges
In this segment, Fred Wilson talks about the role of investors in guiding entrepreneurs through difficult times. He emphasizes the importance of confronting teams when things aren't working and shares examples of companies that have successfully pivoted. This discussion sheds light on the investor's responsibility in the startup ecosystem.
"of the United States like it's it's literally like you why you say I'm I'm Fred Wilson like moved to New York why would why why would we do that that doesn't make any sense no it doesn't are there any..."
Identifying Good vs. Bad Crazy in Founders
Fred Wilson addresses a question about how to discern between good and bad 'crazy' in founders. He emphasizes the value of conversations and time spent with entrepreneurs to reveal their true character. This segment provides insights into the psychological aspects of venture capital and founder assessments.
"uh we you know you I mean our portfolio is full of companies who pivoted um you know Mike aend Diddy who uh was the CEO of CUO and runs a company called yieldmo now um we invested in his company and h..."
Building Relationships with Founders
In this concluding segment, Fred Wilson discusses the importance of building relationships with founders to assess their potential. He explains how spending time with entrepreneurs can help investors gauge their suitability for investment. This segment highlights the relational aspect of venture capital and the significance of trust in the investment process.
"think people reveal themselves over time that the challenge in the Venture business is something you don't have a lot of time to make an investment decision and and you know sometimes we will just bac..."