Webvisions 2008: Avoiding the VC Trap

Slide 1: Avoiding the VC Trap Matt Haughey | Webvisions 2008

Slide 2: How to run a successful web business you actually like, doing what you love, and on your own terms

Slide 4: Defining some terms

Slide 5: Why talk about funding?

Slide 7: Paul Graham

Slide 9: Paul Graham

Slide 10: “You might as well be running a shoe store”

Slide 12: What does venture capital do right?

Slide 13: It funds innovation

Slide 14: Gets grown-ups involved

Slide 15: It fuels a cycle that lets really big ideas take off

Slide 16: The downsides

Slide 17: Strings attached

Slide 18: Not the finish, just the begining

Slide 19: Investors want exits, not zombies

Slide 20: Too much

Slide 21: The Myth of the Superstar

Slide 22: What about the great big middle? 2007 2008 2009 2010

Slide 23: Lifestyle Business “Lifestyle Businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a foundation from which to enjoy a particular lifestyle.”

Slide 24: Lifestyle Business “Lifestyle Businesses are businesses that are set up and run by their founders primarily with the aim of sustaining a particular level of income and no more; or to provide a foundation from which to enjoy a particular lifestyle.”

Slide 25: Some ideas for running a successful business online

Slide 26: Find your passion

Slide 27: Build the app you always wanted

Slide 28: Continually improve it

Slide 29: Be the best, most active user of the product

Slide 30: Start small, stay small

Slide 31: Keep your dayjob

Slide 32: Figure out a way to make it pay

Slide 33: Charge something

Slide 34: Do the math $5 x 1,700 users x 12 months = $102,000/year

Slide 35: Free version Pro version

Slide 36: Everyone pays (but with a free trial)

Slide 37: Advertising, sponsorships, memberships, donations

Slide 38: You gotta make it through the slog

Slide 39: Some examples

Slide 40: Web app model

Slide 56: Software house

Slide 61: Community model

Slide 69: Sole Writer/Designer

Slide 75: Conclusions

Slide 76: It’s 2008

Slide 77: Hardware: cheap

Slide 78: Software: cheap

Slide 79: Programming frameworks: plentiful

Slide 80: Chances you will make $1 billion: slim

Slide 81: Chances you will make $100k: good

Slide 82: Total funds needed to launch: $100/mo

Slide 83: Thanks. Questions? Background photos used: cash: Tracey O http://www.flickr.com/photos/tracy_olson/ office building: *Solar ikon* http://flickr.com/photos/chunyang/2210171888/ shoes: Kai Hendry http://flickr.com/photos/hendry/298879660/ grownups: laffy4k http://flickr.com/photos/laffy4k/52061780/ strings: Meanest Indian http://www.flickr.com/photos/meanestindian/328065491/ finish line: Chris Breeze http://www.flickr.com/photos/92833011@N00/270157428/ zombies: atp tyreseus http://www.flickr.com/photos/tyreseus/219645014/ light bulb: greg westfall http://www.flickr.com/photos/gregwestfall/2049488135/ bigwheel crash: sloanro http://www.flickr.com/photos/rs/129806614/ small bug: woodleywonderworks http://www.flickr.com/photos/wwworks/2313927146/ work desk: ten safe frogs http://www.flickr.com/photos/tensafefrogs/7393410/ passion: torroid http://www.flickr.com/photos/torroid/2507357073/in/photostream/ webappschematic: jazzmasterson http://www.flickr.com/photos/jazzmasterson/3038597/ bestuser: top pocket man http://www.flickr.com/photos/mightyjc/111784097/ treadmill: maHidoodi http://www.flickr.com/photos/mahidoodi/199747855/