KORY JEFFREY: Welcome, everybody.
We are on site at Founder World in San Francisco.
Joining me in the studio right now
is Edith Yeung from 500 Startups.
Edith, thank you for joining us.
EDITH YEUNG: Thanks.
Nice to meet you, Kory.
KORY JEFFREY: So tell us a little bit about 500 Startups.
EDITH YEUNG: So 500 Startups is a early stage C accelerator
and also VC firm.
500 Startups is actually no longer 500 startups.
We actually have invested in 1,200 startups now.
Our staff is actually almost 90 people now and almost 20
investment professionals.
And so half of our investment is done through accelerator.
What that means is every three or four
months we have about 700 startups
will apply to get into accelerator.
And we usually take about 30 companies.
And once you get accepted, right now we actually
are investing $125,000 for 5% of the company.
Once you get accepted, you actually
spend four months with us on-site,
either in Mountain View office or San Francisco office.
And we will bombard you night and day
with a lot of mentorship, a lot of classes,
but with a very strong focus on growth.
We have about, right now, about 15 [INAUDIBLE] in residence.
So all these guys will basically spend a lot of time
with our companies to help them to figure out the funnel,
really think through like what's the right strategy in terms
of marketing user acquisition.
KORY JEFFREY: Very cool.
So if a lot of the focus is on growth,
does that mean most of the people, the startups
that you take in, have a product already?
EDITH YEUNG: Yeah.
So we don't really invest in idea.
And actually many of the companies
that get accepted as accelerators, let's
say if you're mobile apps, I would minimum
look for at least five digit or above in terms of install base.
If it's just a few hundred, it's very tough for us
to see if this is actually a good--
at least like a product that is valid for a particular market.
KORY JEFFREY: Right.
So 500 Startups has famously said
that we are going to go around the world and invest.
You're probably one of the first accelerators, anyways,
to do that.
EDITH YEUNG: Yes.
KORY JEFFREY: Can you talk a little bit
about your guys' international strategy?
EDITH YEUNG: Yeah, so we-- very, very early on when Dave first
started, Dave and Christine first
started the firm, pretty much a year in, I say like Paul,
your friend, we hired people.
Folks now has people in India Malaysia, Thailand, Singapore,
Vietnam, Japan, Korea, Brazil, Russia and Israel.
We have partners in all these different places
around the world.
So our who strategy is that we believe in emerging markets.
We know that US is great, and all of us
have a lot of awesome developers that we found here.
But still I think in terms of growth,
it's definitely international.
So we want to invest very, very early
in some of the best people in all these different countries.
Of course, Canada is awesome, too.
We need to spend more time in Canada,
and Waterloo particularly.
But really, we want to be the first one that
invests in some of the best people
in that particular country.
And we believe that if we don't have people there,
we don't understand the market.
I want to say right now about 20% of our investments
are international, like non-US founders.
KORY JEFFREY: Awesome.
Wow.
And so you said that about half of your investing
is through the accelerator, so that's
where companies from around the world will come to you.
EDITH YEUNG: Yeah.
KORY JEFFREY: And then is the other half
done by these people in market, in the regions
around the world?
EDITH YEUNG: Yeah, so I actually happen to focus on mobile.
So I have a mobile collective fund,
focus on early stage mobile around the world.
So I've done about 20 investments so far.
And about four of them are non-US.
KORY JEFFREY: OK.
EDITH YEUNG: And we will do more.
So in that case, not all of them will come to accelerator,
because our accelerator's actually very, very US focused.
KORY JEFFREY: Right.
EDITH YEUNG: Or I guess, let's say
if you're from China, if your goal is actually
to grow in the US, I think that an accelerator will
help you a lot.
KORY JEFFREY: Right.
EDITH YEUNG: But we also invest in companies
where a particular-- a Chinese developer
focused on China also.
KORY JEFFREY: Yep.
EDITH YEUNG: So, in that case, our help
is a little bit different then.
And coming to accelerator could help with concept.
But to go to market would be very, very different.
KORY JEFFREY: Yeah, growth-hacking in the US versus
growth-hacking in China would be two very different things.
EDITH YEUNG: Yes, that's right.
KORY JEFFREY: Interesting.
So you were on stage earlier today You
were talking in a panel, I believe, right?
What was kind of the key messaging that was
getting across in that panel?
EDITH YEUNG: So in that panel, it was all about investing
and sort of focus on think through,
at least sharing with the audience, OK,
what do some of these investors look like.
I think the big thing for me to take away,
I was actually quite surprised most of the audience
didn't know some of the basic about this sort of fundraising.
KORY JEFFREY: Right.
EDITH YEUNG: And I think there's a really good book by Brad
Feld.
Shoot, I forgot the name.
What is it called again?
KORY JEFFREY: I know exactly what you're talking about,
but I forget.
EDITH YEUNG: Yeah, that book.
Everybody should read Brad Feld's book
to just learn some of the basics in terms of fundraising.
KORY JEFFREY: Sure.
EDITH YEUNG: But for us, for fundraising, we
invest in any-- for the first check,
anywhere from 50k up to 200k, that I actually have done.
I think the big thing is that early on when
we evaluate a particular startup,
it's all about the founder being very thoughtful about some
of the early metrics that they should look at.
Because we understand that early on you
don't have money to do a lot of paid marketing.
But still, I think, put 100 bucks or a few hundred bucks,
buy Facebook or Twitter advertising.
Particular focus on consumer, if you focus on that,
is not hard, right?
KORY JEFFREY: Right.
EDITH YEUNG: And I think everybody always
love to pitch us on, oh, with like no marketing.
I'm like, OK, sure.
KORY JEFFREY: Not necessarily a good thing.
EDITH YEUNG: But I think early on for founders,
it's only usually a couple people, right?
And you have to do everything.
And when we talk to the founders all about
like thinking through, oh, is this person
being really thoughtful of why they built certain features?
Why did they measure that versus-- like later
on, about monetization, we know that you don't make money.
But it's OK.
So, it's thinking through, like, why this person?
Because it's so much about the founders.
KORY JEFFREY: So as you walk around here today,
you'll see there's all sorts of booths,
so there's all sorts of different technologies.
EDITH YEUNG: Yep.
KORY JEFFREY: Is there anything in particular that excites you?
EDITH YEUNG: Yes, VR.
EDITH YEUNG: VR?
EDITH YEUNG: I'm very bullish on the virtual reality.
I believe that VR, especially for next year,
there's a lot of all the big players.
Even for you guys, you had the cardboard.
KORY JEFFREY: Yep.
EDITH YEUNG: And I have a couple of that at home.
I'm always testing all kind of VR app.
I think VR, the platform itself, will be the next Android.
KORY JEFFREY: That's very cool.
Do you have a favorite Google technology?
EDITH YEUNG: I have to say Android,
because before joining 500, I worked on a Android
browser called Dolphin.
KORY JEFFREY: OK.
EDITH YEUNG: And 90% of our user base are on Android.
And I think that other than the barrier
or maybe-- I guess we are all Android
users, which is awesome.
Most other developers-- you guys hear
that I usually start with iOS.
But they have no idea the rest of the world, 80,
90% of the world population use Android.
KORY JEFFREY: That's right.
So building for that sort of next billion users is--
EDITH YEUNG: That's right.
KORY JEFFREY: --typically an Android focused thing.
EDITH YEUNG: Definitely.
Totally bullish.
KORY JEFFREY: Awesome.
EDITH YEUNG: Big Android fan.
KORY JEFFREY: Big Android.
Well, Edith, thank you very much for joining me.
EDITH YEUNG: Yep.
KORY JEFFREY: And thank you guys for joining.
We are on site at Founder World in San Francisco.
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