Internet changes everything, big business (FTSE, Fortune 500) need to learn have to adapt to the Internet Age using open data, open source and open standards
20. Innovation can create enormous value in a very short time
1978 1981 1987 1995 1995 1997 1999 1999 2005
and $1.4tn in new market value
creating 440k new jobs
with $545bn in new annual revenue
serving >1bn customers
Source: HIS Global Insight
21% US GDP
21. And in Europe we are starting to build waves of similar dimensions
22. So are we asking the right questions as investors?
23. What can we learn from early stage funding in terms of
calculated investment risks?
28. Some key lessons
1. Be Open – Source, Standards, Data, Innovation
2. Buy (from) small innovative companies
3. Enforce and invest in digital learning
4. Be transparent - sunlight is the best disinfectant
According to the venture impact study, IHS Global Insight, originally VC-backed companies accounted for 11.87m jobs and over $3.1 trn in revenue in the US in 2011—accounting for 21% of GDP and 11% of private-sector employment.
At Index, our portfolio companies alone have generated $4bn worth of revenue, while growing on average by more than 75%, creating 20k jobs with 1k positions currently open
People say VC doesn’t add anythign but maybe when we look back on this cambrian explosion of innovation from 1960s (semis) to 2020s (cloud connected services in every sector) – the broadscale application and understanding of venture economics will be the true legacy of venture rather than Apple, Cisco, Facebook, Google, Microsoft, Salesforce, Skype and Twitter
DATA: https://docs.google.com/a/indexventures.com/spreadsheet/ccc?key=0ArWfM5OOjmKZdDJ4QWcwcHh5UFZSYm9KSENDRHBONWc&usp=drive_web#gid=0
Major corporates are hoarding cash– a more granular look at point you’re making.
In fact, tech titans Apple, Microsoft, Google, Cisco (CSCO), Oracle (ORCL), Intel (INTC) and Big Pharma giants Pfizer (PFE), Merck (MRK), Johnson & Johnson (JNJ) and Amgen (AMGN) collectively have more than $435 billion in cash on their balance sheets. (Feb 2013, Fortune, http://buzz.money.cnn.com/2013/02/12/apple-cash/)
FTSE 100 numbers: market cap: $2.7 trillion
Revenues: $280 billion
Staff: 6.5 million
Cash on balance sheets: $266 billion
IT budgets: 1-8%