Garry Tan of Initialized Capital (Palantir, Y-Combinator) provided one of the final keynotes at 500 Startups PreMoney Investor Conference 2018

4. Why did Peter make
this offer?

5. In 2017,
Facebook averaged
$750K net profit and
$1.8M in revenue
per employee per year

6. A New Hope

7. Software eats
the world

8. Software eating the world.
Who writes the software?
Engineers. Designers. Builders.

9. Engineers. Designers. Builders.
What do they need to start?
Ramen.

10. Brian Armstrong quit his job at Airbnb in 2012 when Bitcoin was
an oddity. He raised less than $1M.
Today? Coinbase has more user accounts than Charles Schwab.

11. YC startups have created $80+ billion in value
... and counting
Loopt pioneered the
entire geolocation
space before Dennis
Crowley of Foursquare
ever even quit Google
Paul Graham
created the “Harvard
of incubators” in 2005,
created what became
Yahoo Stores
Twitch is the world’s
biggest eSports
streaming video site
and sold for $1B to
Amazon
Posterous
was Garry’s prior startup,
acquired by Twitter. Like the
other Initialized Partners,
he’s a YC alum.
Reddit (now #3 most visited site in
America) was a backup idea when
Alexis and Steve started it in 2005
Scribd
is one of the largest
repositories of documents
outside of Google
Dropbox
is a public company worth
$10 billion and turned
down an acquisition offer
directly from Steve Jobs
Heroku
sold to Salesforce.com for
$240 MM, Y Combinator’s
largest exit until Cruise
Automation
Weebly now
powers over
2% of the
world’s
websites

12. The Empire
Strikes Back

13. Software eating the world
Big tech eating the world
Nearly $3 trillion in
market value in FAAMG
since 2014
Worth more than the next
282 companies in the
S&P500 combined.

14. 24% to 38% of all
public companies
will be dead or
acquired in the
next 5 years

15. Software eating the world
Big tech eating the world
Startups eating the world

16. THE LIMITING RE-AGENT
Software Engineers

17. WHERE DO THEY GO?
Non-tech companies
Big tech companies
Startups

18. The Return
Of The Jedi

19. Existential

20. Instacart - Started in 2012, sent beer to Garry
Today? 100 US retailers signed in 2017, including Walmart
Just closed a new $200M round at $4.2B valuation

21. Cruise Automation - Acquired by GM for $1 billion

22. Good news.
The Jedi live.

23. Good news #2
$225M Raised
Initialized Fund IV

24. The old dark side
All the work is in picking: Help is marketing
Tells you what the future will be
Using the Force
All the work is in being good to the network
The Jedi teach us what the future will be

25. How we help: 8 Full Time Partners
We help with design, product, engineering,
PR/marketing, legal, finance/ops
We are soft advisors trying to keep
people from stepping in land mines…
(Oh so many landmines!)

26. Too few good ideas
Too few companies
Too much capital

27. Infinite problems
Infinite people
Infinite capital

28. garry@initialized.com