BayPartners (Facebook AppCamp)

Angela Strange
BayPartners
(VC firm)

They have a fund targeted at social networking applications, not just facebook applications.

(Once again notes will be edited as time permits)

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300 million fund
looking to fund applications that are built on f8 or other social media.

Do you really need money?
Don’t raise the money if you don’t need it.

Raise the minimum needed, trauche the money only take the money in chucks as needed. So if the money is not needed, then equity for later trauches is not given away.

if you’re going to raise then get more than just capital.

criteria
-clarity of your thoughts and ideas. ( need idea in the first 2 sentences ) if need 2 pages, then hard for her to understand reason for product.

entre/team
* strong tech prowess mainly, being able to execute.
prioir track record or indications of potential for first-time

* idea uniqueness/ differentiations/competition/depth — provocative

* business model /sustainability

most interested in apps that may start on f8 but can go outside of f8.

traction ( if already launch)

evidence of high level of engagement/ or growth rates.

for example: may be privacy apps might be

are there any applications that should wait until api matures — as/ no go for it now! Look at any productive apps that could work with f8.

as) there is a market for more utilitatarian apps — like classroom wiki

jury is out on if there is going be any market for utilitarian apps.

communication, shopping or service where you know who you are / connected.

bay partners:

* app
* amazon free hosting/data services
* post lauch services (marketting services)
* not taking board seats

for apps already launched:

1 app with 10 million users is more valuable than 10 apps with 100K users each — pretty easy to get to 100K users and then it dies off — but 10m users is much harder to do.

CTR for apps have not been very good.

earlier losers: anything too complex, so if you think it is a little complex it is probably 10x too complex.

building private social network: for boating enthusiasists.

for apps that have launched value the users $1 – $20/ active user.

convertible note: “caps” — $100K with $1m “cap” then bay partners get 10% when the next round is funded (no matter how much is valuation at that time.)

“cap” with no conversion — the next round investors will call and bay partners will say well we won’t want to participate at 10million but we will participate at $5million because other wise the initial 100K invested will be wiped out.
“equal participation (in next round)” is better than First rights.