Keynote Speech: Andrew Tang | SVIEF
9:29PM Sep 30, 2018
So now I'm going to welcome one of those judges, Andrew Tang. He's going to give the keynote speech first. And he actually received the distinguished investor of the Year award yesterday in our tech night event. And he is also a partner of the Draper associates and CEO of Draper University. Without further ado, Andrew Tang.
Good afternoon. I guess I don't need a mic.
First of all, let me take a quick survey. How many of you guys have done anything for eight years? Eight, anything you've done for eight years, let's say going to work at a company for eight years, raising kids for eight years
maintaining a hobby like working out for eight years, right.
Not a lot of hands. So
today, I'm actually very privileged to be here speaking with you, Benson and Iris they started svief eight years ago, eight years. So
it's amazing what how much they have done in the last a year or so. So first of all, thank you very much for inviting me and congratulations, what a year anniversary. It's gonna run applause
a years in VC lingo is vesting twice. Okay. So you invested your stock options for twice already. So
eight years ago, actually came back to Silicon Valley from China. And I also did something I work with Tim Draper to start the Draper ecosystem.
The Draper funding part of our business is very well known. You've come across Draper Fisher service in dfj Dragon fund the effect Growth Fund,
but that is really only a
by capital is a large but by economic activity. It's a small part of our practice or ecosystem.
So since 2012, we actually started an incubator essentially to feed into our venture business model.
We also built a accelerator that feeds into the incubator
and then we also started the school that helps students or entrepreneurs first I want for us to start a business
and this year we actually started Draper Institute. This is a nonprofit
that helps entrepreneur brainstorm what to do next, we will write white papers study
mega trends that are transformative. Why do we do all these, the idea is we want to help entrepreneurs at all stages of their career, right? Whether it's a growth stage company, looking for 10 to $15 million at the right on the right hand, right to
see Stage Company looking for funding, or companies looking for $200,000 in an incubator or link for $50,000 in accelerator, or companies or founders, not looking for money, but looking for some help to get this thing started, right. So you come to Draper University,
or you're working at a company, you are still thinking, hey, what should I do now? Right. So that's where the Draper Institute comes in, and kind of help inspire you to think about what to do next. And we have and the reason why we have created this ecosystem is that
we have noticed a lot of our big exits actually come from very transformative ideas. For instance, we got into the blockchain technology in you know, 2011, right, very early at that point, it was just really individual partners, hobbies, right? So, and if you look at, you know, autonomous driving, we also got in around 2012, 2013 timeframe. It's also just one of the partners happened to ride in the car that was that didn't kill them. And he was very intrigued by the technology. So we sort of got in. So a lot of these things that we see early. And we want to be able to bring these interesting ideas to entrepreneurs early and
help them along the way regardless where they are in the stage.
So some stats on this school that we started. So the school has been in place for six years, we graduated close to 1000 people, one of the most,
one of the things we're most proud of
is that this is a kind of a post undergrad school. Many posts such schools track the salary you will receive after graduation. What we track is how many jobs you provide, right? So true to a
entrepreneurial spirit, right? We think about when we
bring entrepreneurs to the
when we train entrepreneurs, we want them to think about what they could create, versus how much they could get paid.
And within the last five years, we basically have three great examples of students who started their career from scratch at Draper University. And each one of them has, in their own right, accomplish something that we're very proud of. So Danny
has created a yogurt company from scratch. So you know, he's a business school grad, come to Draper University, went back to China and started yoga company cannot be far from what we normally do in the Draper funding circles, right? We typically think about high tech, but you want to do a subscription based yogurt company, Greek yogurt, I remember going to Beijing to visit him. And he had this yoga from Tim and I to taste I was very skeptical because there was a very warm day and that yogurt didn't taste all that good. So I give to Tim first let them try it. He said it was okay. So I tried it. And thankfully, next day, we were still okay. And today that's one of the last one is one of the most popular yoga company for millennials in China. And it's based on a web subscription base.
Patrick is another engineer that came through our program. And he had graduated from university and shortly after he would transform him from a CTO of a company to starting his own public blockchain in China. So he's still one of the top 10 public chains in Asia or from scratch. Serbia is one of our graduates from the first pilot class, she started a medical devices company from scratch for detecting ovarian cancer. Her company was sold to the Boston Scientific this year for close to $300 million dollars. So
as you can see, they're all very different business going from yoga to blockchain to
very specialized medical devices company. So what we train is really not think about it to really not specific domain or expertise, but it's more about general entrepreneurial spirit, how we foster the spirit help people start business.
This is a map of the Draper
venture ecosystem. So we have 22 funds, globally about $3 billion under management
or early stage, we basically focused on writing $1 million checks at the early stage, ranging from China, Korea, Japan, to a couple funds in Europe, a couple of funds in South America, across Africa, Middle East Australia, and I actually started the first international and their work fund with Tim and to partners in Shanghai.
So because of our scale, were able to invest in corporate relationships, what we noticed is that
last 510 years, venture funds are being asked more and more to provide, you know, HR services, corporate development, and just really some of the things that's none core to startups. So we, as a group of venture capitalists, we are a venture fund basically invest in these prayer for functions to try to help our startups
last but not least, these are the three areas that I'm looking at. So I like to look at very sort of crazy things that would take 1015 years to play out. And it ranges from blockchains no longer is crazy, right, five years ago, trying to convince people you can replace gold is a little bit crazy. But now I think you can see, you know, it's, it's, it's what people do
in mortality in space. So all these three things have one thing in common, they essentially rely on the declining computational costs in the network cost, right? Basically, we all have one of these things in our pocket, right. And this thing allows you to watch movie though, do all kinds of things, the amount of computational power in network speed, it's, it's far more powerful compared to a mainframe computer at 1020 years ago. So what it means is that you could run banking applications, you could essentially serve yourself as a bank that's watching application, you could probably apply some AI or Big Data algorithm to help
to to, to complement the biology based drug discovery process in Big Pharma. You could use these to help with space exploration, the miniaturization of space applications. So with all that, you know, these are fundamental
driving forces that I think is going to help we find interesting applications across many different sectors. These just happened to be three that I personally love. So with that, I just want to leave you with one word, you know, we back crazy ideas. We're very open minded, and I think they're going to be quite a few startups up here to present their ideas. We always think this mindset, any business, you can poke many holes, what's wrong with it, right? If it doesn't have any potential holes, and it's not a startup, but we always ask this question what if they become successful? What if, right, how big is it? So with that, enjoy the rest of the startup competition and I look forward to interacting with you after show.