Future of Venture Capitalism

" Scoreboard we love new enterprises that embody the spirit of capitalism but sometimes the spirit is willing. But the capital is weak that's when venture capitalists are called on. To it despite all the risks make a leap of faith and throw their capital behind some pretty wild notions and occasionally. Even wilder idealists as a part of our special series capitalist heroes we now welcome three venture capitalists here to tell us just what trends they're looking to invest in these days mark susser is of GRP partners. Kate Mitchell is from scale venture partners and sub -- is from spark capital. And we welcome these. Heroes of capitalism -- today thank you offer being here sought -- I want to go to you first because if there is almost a religious. Sense where. You have to make a leap of faith were some. Some guy usually these entrepreneurs to have wild ideas they stay up all night working I'm working 365. Days a year. You must've seen some very while mentions what finally leads you to that leap of faith we're willing to put your money into the bet."

" So. You you know usually you are looking for an entrepreneur that's very passionate about what they do and there are only thinking about like how they're going to change the world and how they're going to make sure you're looking for the crazy people I am looking for the crazy people on the crazy is that event happen that's ironic."

" That's decade I I hear you laughing market is that true for you was well. Oh absolutely I mean I should tell you I was at -- time entrepreneur before I became a venture capitalist. Yet to be obsessive you have to be compulsive yet to be completely accurate and I think to be successful as an entrepreneur sir yet that we're looking for almost. Maniacal -- okay what is what is the most give us an example we love stories what's the most maniacal character that you ever had to deal with. Went up a little -- I think that's true for all of us sir that's for K to go ahead Kate."

" Got the most maniacal well I think all of our CEOs are incredible most multi tasker a stand to have great focus keep our eyes and their competition keep our eyes and that is achieving something at the bottom line. And looking forward. I can think of a few event that they come to mind most recent Josh chains and the company just got sold to Adobe. When I'm -- cut cash he's just learning how to shave he became CEO of what ultimately was sold one point eight billion to. To Adobe this last week but a real a real leader in real. -- charismatic guy who really believed him when he did."

" And -- and it's not only did maniacal crazy people but it's their ideas sometimes their ideas must seem so far fetched. And I'll bring us bring up one of them Twitter the notion of Twitter when I first heard of -- I said that's absurd it'll never catch up. I'd -- little -- I know I mean with the email on all the shows why do you need Twitter but Q what did you see and Twitter because you're one of the investors right."

" Yeah we -- one of the early investors in the company I think you you know you just have to. Yes it. It's a different generation that's out there living the of this Internet life right now they actually living their life out in the open that very -- comfortable communicating anything and everything about themselves so. Actually we also outside young guys and I shop now I'm not one of them. That actually understand this type guy so what's going on what's going on with next generation of young people are coming out so actually when we looked at Twitter we we actually clearly could see. The momentum that was building behind the company and I think you know you say where does that by the way you know we we were those fees be invested there was ST John investment going to happen in the company it was. You know they were not there is because there are I think there were like ten million like a year ago not now a little over than more than not they put they have like a million uses something that was very early on in their development. And you could see the momentum building behind behind the company knew very rarely get to. Associate yourselves with a company that's actually becomes a -- that bag right a Twitter something that genocide across Georgia how little science and then when you start hearing people thinking that talking those -- you. I understand that you're on to something big and these guys have come up with an amazing idea."

" Wal-Mart is there it was there ever any idea or maybe even a person that was just seemed too out there too far out they're too crazy that you you passed up. I would say I probably see people too crazy and -- often than not. Really we're looking for people who are. Coming up with a big ideas but they have to be grounded in facts that have to be a problem that they're solving -- have to have. Economic benefit that we can -- other companies can make money. You know people talk about Twitter Twitter hasn't yet monetize greatly and the companies like Twitter will be phenomenal successes but they're they're more rare. And what you find more venture capitals people focusing on domain experience an individual who know how to make money. So and -- by that time. Somebody comes and knocks on your door have they already developed a product or sometimes is it just in their head."

" It's all of the above me sometimes is just an hour and sometimes they have a prototype to show you sometimes -- has something working I think mark put it well. The thing we care about first is how they thought it through. Isn't a market that's going to take off we we all here care about. Investing in -- and inflection point the demand really has to be there and the business has to be there. And then it got there has to match that with a business plan to meet that to meet that need and so we see it in all in all flavors."

" But you know sides of -- it's there's an irony here because in one sense you're looking for people whose cancer in the cloud. They've got his vision this tremendous vision and -- insert of as marks at a maniacal sense about them but they do have that. Be grounded at in New York as well or do they are needed is some time are you the ground for some of these people."

" Yeah I think you you know. To assume that we have all the answers that we can actually ground and I think that would be a mistake you know usually what I deal with what my friend deals with -- two guys and a dog and the dog is that talent you know so. Yeah actually yeah actually. You know. We we actually have to start people that may not have a track record yet there are showing signs that they're going to come up with something big so you have to. Have a a you have to take a leap of faith with them and you have to go through the journey with behind you have to be as good a guide as you can be. As they're trying to I've realized that idea."

" Well before I leave you guys you gotta tell -- the next big thing what is the next big thing that is not become a verb but that may. You know so that that there's a bunch of friends that are happening so the whole socialization of the web that's a big -- and you know the -- you know on that's on the social site is very hard to figure out but you know. There's a lot of lessons learned from the Internet and what happened there to going to all these while Jason markets mark got to get in Iraq from a producer but I gotta get one for you what's what's the one big thing that we're about to hear about that you're involved."

" Well I would tell you that performance based marketing of the huge -- at the advertising markets 300 billion dollars in US. Only thirty billion evidence on -- immeasurable so we're really focused on measurability. Of the 270 billion companies like ring revenue. That enable you to track phone calls the way people track -- today will I think ideas like that will be -- and K we only got ten seconds what's your big idea."

" Well we I would -- healthcare investing so I'll say that things that both. Innovate medically anime in terms of cost reduction it's another place while focusing Kate Mitchell mark sues your son -- lead the thank you very much it was a terrific session --"