Birthing a Unicorn is Hard - Cornell entrepreneurship summit

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Things that informed entrepreneurs should know which nobody seems to talk about. There is lots of financing and chatter about unicorns these days but nobody seems to talk about how hard and rare those are. No survivorship bias here.

Text of Birthing a Unicorn is Hard - Cornell entrepreneurship summit

  • 1. Birthing a unicorn is hardThings that informed entrepreneurs should know which nobody seems to talk aboutCornell Entrepreneurship SummitAnand Sanwal@asanwalasanwal@cbinsights.com

2. CB Insights is a big data company that collects and analyzes data on private companies and emerging industries. We offer data, industry analytics and predictive intel to our customers to help them invest & acquire smarter, innovate faster and sell more.We are backed by the National Science Foundation.Who are we?We have hundreds of customers 3. 3According to CB Insights An industry standard for data & insights on whats nextIn 2014, our data has been featured in 400+ media articles. We are regularly sought out for our data and insights on emerging companies, industries and the investors and acquirers behind them.To see all of our press mentions, visit http://www.cbinsights.com/press@asanwal 4. 4Unicorn ChasingUNICORNS!!!! 5. 5Big funding. Big valuations.@asanwal 6. 6Its frothy these daysTons of moneyStartups are sexy Bring the wantrapreneursLots of unicorn talkSurvivorship biasRaising money success@asanwal 7. 7Some of the recent billion dollar wins raised money late (or never). These are the companies we should celebrate.1100x133x280xValuation / Money RaisedDiv/0 (revenue-funded)@asanwalRaised funding when at $500 million in sales. Founders owned > 50% at time of IPO.Revenue-funded. No outside funding. Rumored to be worth a billion.Raised funding very late. One of NYs biggest tech exits (which goes uncelebrated). Read this post by Jon Oringer (CEO) about raising money - http://cbi.vc/1xDNFAW 8. 8Sentiment about your space is important@asanwalRemember when Social was the rage? Things change and investors are not immune to the sentiment on a space. 9. 9By number, enterprise beats consumer on exits@asanwalBy quantity, enterprise exits win. 10. 10But on value, consumer dominates@asanwalIn terms of value, consumer exits dominate. 11. 11Raising money doesnt buy execution@asanwalRaising money doesnt get your mobile app into the top 1000. 12. 12Why startups fail?@asanwalAlthough a bit overused build something people want is the main reason startups fail. 13. 13$1 Billion Valuations Require Lots of Fundraising@asanwalIf you want to build a unicorn, you are going to have to raise a lot of money. 14. 14The Venture Capital Funnel@asanwalRaising each round gets harder and harder. 15. 15If You Exit, Itll Usually Happen Early@asanwal 16. 161.04% of exit were in billion dollar club 72% of exits are less than $200 million@asanwal 17. 17Most VCs talk about investing in Unicorns. Most dont actually invest in Unicorns.@asanwal 18. 18Lets close with some good news@asanwal 19. Birthing a unicorn is hardThings that informed entrepreneurs should know which nobody seems to talk aboutCornell Entrepreneurship SummitAnand Sanwal@asanwalasanwal@cbinsights.com