Presentation to REEE

Guy Kawasaki

CEO and Managing DirectorGarage Technology Ventures

For copies of this presentation:kawasaki@garage.com

Then and Now:10 Changes in Entrepreneuring

1Then

Now

Cleverness

Technology

FoundationFoundation

2Then

Now

Build Brand

Build Business

PriorityPriority

3Then

Now

Raise more money

Bootstrap

FinancingFinancing

4Then

Now

MBAs

Engineers

Key EmployeesKey Employees

5Then

Now

Advertising

PR

Getting the Word OutGetting the Word Out

6Then

Now

Disintermediation

Evangelism

LeverageLeverage

7Then

Now

Think Global

Act Local

ScopeScope

8Then

Now

Alliances

Revenues

Business DevelopmentBusiness Development

9Then

Now

Liquidity

Passion

Raison d’ êtreRaison d’ être

10Then

Now

Next Big Thing

Next Big Thing

Big PictureBig Picture

Silicon Valley 4.0Silicon Valley 4.0

Silicon Valley 4.0Silicon Valley 4.0

1.0 Chips

2.0 Personal Computers

3.0 Internet

4.0 Intelligence

1 Not fixing Silicon Valley 3.0

Silicon Valley 4.0Silicon Valley 4.0

2 Quantum leap in ubiquity

Silicon Valley 4.0Silicon Valley 4.0

3 Infinite and free bandwidth

Silicon Valley 4.0Silicon Valley 4.0

4 Totally wireless

Silicon Valley 4.0Silicon Valley 4.0

5 Always on

Silicon Valley 4.0Silicon Valley 4.0

6 Always connected

Silicon Valley 4.0Silicon Valley 4.0

7 Every device has an IPaddress

Silicon Valley 4.0Silicon Valley 4.0

8 Self healing

Silicon Valley 4.0Silicon Valley 4.0

9 New storage and searcharchitecture

Silicon Valley 4.0Silicon Valley 4.0

10 Network is theknowledge

Silicon Valley 4.0Silicon Valley 4.0

Ten Ways It’s Not Going toHappen

Ten Ways It’s Not Going toHappen

1 Not going to be a proventeam

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

2 Not going to be a proventechnology

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

3 Not going to be a provenbusiness model

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

4 Not going to raise $50million in capital

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

5 Not going to generatecompetitive term sheets

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

6 Not going to be embracedby today’s “experts”

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

7 Not going to be created byan existing company

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

8 Not going to be sold toexpected customers

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

9 Not going to be used inanticipated ways

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

10 Not going to happen ifnobody tries

Ten Ways It’s Not Going toHappenTen Ways It’s Not Going toHappen

Guy KawasakiCEO, Garage Technology Ventures

Lessons from the Trenches:Ten Things Students Should LearnBefore They Graduate

1

Lessons from the TrenchesLessons from the Trenches

Ideas are easy,implementation is hard

2

Lessons from the TrenchesLessons from the Trenches

More OB, less Finance

3 Do the math

Lessons from the TrenchesLessons from the Trenches

• Costs $1• Sell for $5• Margin = 20%

Lessons from the TrenchesLessons from the Trenches

4 Everyone is a “productmanager”

Lessons from the TrenchesLessons from the Trenches

Power

Responsibility

CurriculumIncomingstudents

X

Lessons from the TrenchesLessons from the Trenches

Kona

5 • One-page emails• Twelve slides• One hour meetings

Lessons from the TrenchesLessons from the Trenches

Be brief

6 Make your boss lookgood

Lessons from the TrenchesLessons from the Trenches

7 Life’s a niche

Lessons from the TrenchesLessons from the Trenches

Unique abilityto provide

Value to customer

Stupid

Price

X

Lessons from the TrenchesLessons from the Trenches

Dotcom

8 A players hire A players

Lessons from the TrenchesLessons from the Trenches

B players hire C players

9

Lessons from the TrenchesLessons from the Trenches

Don’t ask anyone to dosomething you wouldn’tdo

01 Right and wrong areabsolute

Lessons from the TrenchesLessons from the Trenches

11 Karma counts

Lessons from the TrenchesLessons from the Trenches

Overview of GarageOverview of Garage

� Boutique investment bank

� Three services

� Venture capital� Private placement� M & A advisory

� Capital for innovation

� Venture� Intellectual� Relationship

Garage CaliforniaEntrepreneurs FundGarage CaliforniaEntrepreneurs Fund

� $10M funded by CalPERS

� Focus on companies emerging from

California universities and research labs

� Sectors: software, communications, and

infrastructure

� Garage will lead or co-invest

� Typical investment: $250K seed stage, up to

$400-500K total over time

For copies of this presentation:kawasaki@garage.com