What’s Hot and What’s Not in 2004 –

A lot has changed in the startup and venture capital community over the last few years, so we thought we’d take a look at the changing landscape of startups and venture capital firms. Enjoy.

Series A $4M $20M

Series B $6M $30M

Series C $10 $40M

Lifetime capital requirement $20M $100M

Expected exit valuation $100M $1B

Syndicate Traditional” Fully funded”

Board meetings In person Conference call

Entrepreneur’s experience 18 years 18 months

Value proposition Total Cost of Ownership (TCO) Eyeballs

Success milestone Profit Market share

Advertising Google Super Bowl

Company motto Less is more Get big fast

Engineering strategy They come and we will build it Build it and they

will come

Executive recruiting method Contingent Retained

Preferred recruiting method Rolodex Executive


Sign-on bonus Lunch BMW-325

Entrepreneurial “must-have” Experience Vision

Employee morale booster Diet Coke Aeron chair back


Most important role CFO Founder

What matters Bottom line Top line

What matters most Experience and vision Vision

For VCs What?s HOT What?s NOT

Air transportation Jet Blue Blue jet

When flying commercial… Coach First class

Vacation home Time Share in Salt Lake Share time in 5


Favorite ski vacation Car Pool to Tahoe Private mountain

Sabbatical Every 7 years Every 7 weeks

Wheels of choice Prius Porsche

Next fund size $200M $1B

Annual meeting 2 hours of PowerPoint 2 days of golf

Key issue Clawbacks Distributions

Key partnership decisio Whom to fire Whom to hire

Disclosure No way! Bring it on!

Offices Single site Dual-coast

Number of board seats per VC 5 15

Favorite outfit Brooks Brothers Dockers

What VCs don’t like most Law suit Three-piece suit

What matters most Working the money Putting money to