Thursday, February 3, 2011

Join Y Combinator Get (nearly) Free Money - The MBA Show Episode 19



Will MBA's follow all the money sloshing into silicon valley?  Yuri Milner offers $150k in convertible debt, no cap, no discount to every Y Combinator participant and Tom and Miro explain what the hell that means.   Bonus: How to turn one informational interview into 10.

(1) Headlines: Financial Times Ranking
LBS and Wharton are Tied for 1st place. They’re neck and neck.

Wait! LBS? What’s a foreigner doing on the list?

Financial Times is one of the only rankings to combine foreign and domestic schools

Why aren’t there international schools in other rankings?

When Business Week started doing rankings of Business schools in 1988, international schools weren’t on the list, simply because they didn’t make the list. The focus of management education was the US. There wasn’t global competition.

All current US business school rankings are now out of date. And we are calling for the inclusion of international schools on ranking lists.

Thanks to Poets & Quants for their great analysis of the FT Rankings

http://poetsandquants.com/2011/01/31/wharton-london-tie-for-first-in-2011-financial-times-mba-ranking/
http://poetsandquants.com/2011/01/31/winners-losers-in-the-2011-mba-ranking-by-the-ft/
http://rankings.ft.com/businessschoolrankings/global-mba-rankings

Financial Times Global MBA Rankings 2010 (no that's not a typo, it says 2010)
1. LBS
2. Wharton
3. HBS
4. Stanford
5. Insead
6. Columbia
6. IE Business School
8. MIT Sloan
9. Chicago Booth
9. Hong Kong UST

(2) Business Porn: Free money

Yuri Milner, the guy who invested hundreds of millions in FaceBook, Zynga, and Groupon, is partnering with SV Angel and is offering $150k to every company in Y Combinator. What the hell is a Y Combinator? (~40)

Y Combinator is a camp/incubator

The terms are very generous:
$150k in Convertible debt, no-cap, no-discount. Think of this as a loan someone is giving your start-up that you never need to pay back in money. You can pay it back in stock, and you only have to if you’re successful.

So what do you think tom?

[Skeptical] So Yuri is investing with out doing any due diligence or background research? The bubble is back baby! Where’s my check book? I’m investing too. Thank god. I can finally stop doing this due diligence that is sooooo 2008. … Where’s my bonus?

Well, it’s not really no background, what’s he’s doing is depending on Y Combinator to do his diligence for him.

Tom can’t keep a straight face. Other people are doing it? It must be right.

Okay, okay. it’s a little nutty. But this money out there and other money chasing it means that there’s going to be more opportunity for MBAs. When companies have money they can afford spend a little more on things like MBAs.

So the takeaway is: The startup money is back. Put startups back on your opportunities list.

Thank you Russian Oligarchs.

http://techcrunch.com/2011/01/28/yuri-milner-sv-angel-offer-every-new-y-combinator-startup-150k/

http://onstartups.com/tabid/3339/bid/38607/8-Reasons-Why-SV-Angel-Yuri-Milner-Investing-150-000-In-Every-YCombinator-Startup-Is-Brilliant.aspx

These are the terms your dad would give you.

3) Jargon: Convertible Debt

Two big to raise money: stock and loans.

Miro: Got that!
-In loans you get money and pay back that same money to owner plus a fee.
-If you sell stocks in your company take money and give them a worthless piece of paper in that entitles future profits in the company.
Where does converable debt

Convertible debt is a hybrid. It starts out feeling like a loan. Because someone gives you cash. At the end of the day the debt is converted into stock.

I understand why I would give people a loan: If they are stable they’ll pay me back with interest
I understand why I would buy stock: becuase if I think a company will grow alot, then a small amount of money will turn into lots of profit.
Why would I give that loan to a highly unstable company hoping for stock? It seems like a worse deal.

Well let’s role play it.. You be the entrepreneur and I’ll be investor.

E-preneur: Dude, man, hey, i just smoked some grass and cake up with this amazing idea: crowd-sourced, social, micro-payments, freemium. It can’t fail. …. Give me a loan.

Investor: It feel a little sktechy right now, can you give me any proof you’ll be around in one week.

E-preneur: [long pause] No

Investor: Okay, why don’t we try this. I think company worth 10. I give you another 10 to make 20. You give me 50% of the stock?

E-preneur: No way this thing will be worth billions!

Investor: That’s the best you can get. No one is going to give you more money for your company than that.

E-preneur: In case you haven’t noticed. This is silicon valley. There’s people around the corner to fund my weed-based brilliance.

Investor: Woah woah woah … woah. Don’t do anything drastic. How about this. I give you $10k now. You go build the thing. If it’s really worth $1,000,000 like you say and you can get someone to pay you for that, then you just give me $10k worth of that deal.

E-preneur: Done! [Handshake]

Both: And Scene! [Hippie gesture].

So the takeaway here is that Convertible Debt is generally considered great for the entrepreneur. If it’s an option, it’s really worth considering.

(5) Business School Tip of the Week:
- Get two referrals at the end of every conversation. Job networking, business starting. Any question.
Follow-up: can i use your name

You only need one cold introductionn.

Thanks for sitting down with me. Who else should I be talking to about this topic?

(7) What’s on your Radar?
Miro: Superbowl party
Tom: Tutoring Indian b-school students DURING the superbowl

Sign-up for our newsletter at www.thembashow.com to check out the following bonus content (the newsletter will be launched by 2/17/2011):
Bonus Topics:

(1) Convertible Debt: Exists where there is competition

(2) Convertible Debt: Seems like a buyers market to outsiders, but in reality, highly limited access to amazing deals.

(3) Convertible Debt: What the hell is Milner thinking?

(4) Convertible Debt: What other terms do you typically see in convertible debt deals?

(5) Converitble Debt: Why would any sane investor ever agree to give convertible debt?

39 comments:

  1. Lots of fun and education packed into this one! Loved it.

    Sumant

    ReplyDelete
  2. Thanks Sumant. Glad to have you as a viewer :)

    ReplyDelete
  3. I have watched your whole video and realized and showed the how to he get money. Really, it is a amazing presentation for everyone. http://www.1855cashloan.com/

    ReplyDelete
  4. Its very difficult to be a management consultant, right after MBA. An MBA in any of the core fields like Finance or Marketing can act as a stepping stone.

    improve IELTS Listening Skills

    ReplyDelete
  5. ED Hardy Outlet http://www.edhardypopsale.com

    Michael Kors Outlet http://www.michaelkorsoutletsonlines.us.com

    Coach Outlet http://www.coachoutletonlinesstore.us.com

    Kate Spade Outlet http://www.katespadeoutletsstore.us.com

    Cheap Jordans http://www.cheapjordansretro.us.com

    Michael Kors Outlet Store http://www.michaelkorsoutletsstores.us.com

    Coach Handbags http://www.coachhandbagstore.us.com

    Coach Factory http://www.coachoutletsonlinestore.us.com

    Oakley Sunglasses http://www.oakleyglassessale.us.com

    Tory Burch Outlet http://www.toryburch-outlet.us.org

    Longchamp Handbags http://www.longchampoutlets.us.com

    Louis Vuitton Outlet http://www.pagina16.com

    Michael Kors Handbags http://www.innnov8.com

    Coach Outlet http://www.innnovate.com

    UGG Boots http://www.uggbootsoutlets.us.com

    Red Bottom Shoes http://www.redbottomshoeoutlet.com

    Moncler Jackets http://www.monclerdownjackets.us.com

    North Face Outlet http://www.northfaceoutletblackfriday.com

    Kate Spade Black Friday http://www.katespadefactoryoutlet.us.com

    Moncler Outlet http://www.monclerjacketsoutlet.com.co

    Coach Factory http://www.maganates.com

    Coach Handbags http://www.coachhandbagsfactoryoutlet.us.com

    Kate Spade Outlet http://www.katesapdeoutlet.us.org

    North Face Jackets http://www.northfacejacketsinc.com

    Ray Ban Outlet http://www.raybanoutlets.com.co

    Cheap Ray Ban Sunglasses http://www.raybanglasses.name

    Burberry Outlet http://www.burberryoutletsstore.us.com

    Cheap UGG Boots http://www.uggbootoutlet.us.com

    Christian Louboutin Shoes http://www.christianlouboutinshoes.name

    North Face Outlet http://www.outletnorthface.name

    Coach Factory Outlet http://www.coachfactoryoutlet.name

    Kate Spade Outlet http://www.katespadeoutletonline.name

    Michael Kors Outlet http://www.michaelkorsoutlet.name

    Coach Outlet http://www.coachoutlet.name

    Nike Air Max http://www.nikeairmaxstore.ru

    Moncler Jackets http://www.monclerjacketsru.ru

    Nike Roshe Run http://www.tanienikerosherun.pl

    Cheap Nike Air Max http://www.nike-airmaxaustralia.com

    Buty Nike Air Max http://www.airmaxsprzedazdla.pl

    Nike Air Max Damskie http://www.cheapnikeairmax.pl

    Nike Air Max http://www.nikeairmax.com.co

    Cheap Red Bottom Shoes http://www.redbottomshoes.name

    Christian Louboutin Outlet http://www.christianlouboutinsoutlets.com

    Burberry Outlet http://www.outletburberry.us.com

    Balenciaga Outlet http://www.balenciagaoutlet.us.com

    Burberry Handbags http://www.burberryshandbag.us.com

    Balenciaga Handbags http://www.balenciagahandbags.us.com

    Louis Vuitton Wallet http://www.louisvuittonwallets.org

    Cheap UGG Boots http://www.uggcheapbootstore.com

    Uggs Boots http://www.uggbootsinc.us.com

    Kate Spade Outlet http://www.katespadeoutleinc.com

    Toms Shoes http://www.tomshoesoutlet.us.com

    Hermes Blet http://www.hermesbeltstore.com

    UGG Boots http://www.uggboots2015.us.com

    UGG Boots Outlet http://www.uggbootsoutlet.net

    UGG Boots Sale http://www.uggbootssale.us.com

    ReplyDelete
  6. Copy, move, preview, compression, decompression, and Mail Sending can be done while confirming the composition of the folder. downlodable torrent A: We try to get your tasks to you as quickly as possible.

    ReplyDelete
  7. He likes to nap, eat kibble, but not hunt flies - because of their taste. download games You must withstand the enemy's overwhelming attacks with the machine guns, cannon shot and air backup to hold your fortress.

    ReplyDelete
  8. It is dispensable, but we strongly suggest you to upgrade your device's OS version to iOS 4. download ebooks Make yourself look like a manga character, email it, and crack people up.

    ReplyDelete
  9. Save time by grouping your favorite tasks so you can run them in a single action. download videos Its as close as you can get to the Tour without a passport.

    ReplyDelete
  10. Send us your feedback for updates, as we have plans for many future improvements. Welcome to my site. Watch out for the gem blocks that stick together or you&'ll get stuck and have to shake your iPhone to restart the level.

    ReplyDelete
  11. Over 130 explosive levels of varying difficulty await as you devise strategies to batter the barricades while conserving ammunition. downloadlagustafa.com First class company with more to offer than someone who wrote a basic program.

    ReplyDelete
  12. Youve spent 1,000s of hours and dollars training to be the best out on the ice. downlodable serial numbers Ability to send feedback directly to Big Hill Software via email.

    ReplyDelete
  13. Echomobi Pocket Dictionary with Voice featuring Phrase Logic. http://kakskachatigrynaandroid.ru It contains a large number of improvements, fixes and enhancements.

    ReplyDelete
  14. As a tank commander, you find and destroy an enemy tank platoon. bestdownloadwarezarchive.pro Here are the modules available in the Milan City Travel Guide: 1.

    ReplyDelete
  15. To our astonishment, OrangeCD Player seems unable to do the one task that is promised by both its name and description. http://topdownloadtorrenttoday.us Fans of the cult movie Tron should check out the free Tron Screensaver.

    ReplyDelete
  16. Exchanges: Coinbase, BTC-e, Cryptsy, CampBX, Bitstamp, Bitfinex. http://downloadfilesfromalexandra.online With a few clicks create and store hundreds of themes for your viewing pleasure.

    ReplyDelete
  17. WiFi file sharing: upload/download everything via browser, very friendly. downloadtorrenthere.top It helps immensely, and lets us get out more updates.

    ReplyDelete
  18. III- CryptoVGN Scanned with Updated AVG Antivirus FREE and there is no virus, spy or anything like these reported. bestdownloadfilesonline.us Its you who decides how to rule towns and manage resources, how to train and improve your warriors.

    ReplyDelete
  19. Check out the full version for more levels and more fun. downloadfilesfromalexandra.download Wheresit is fun for geocaching and other location searching games and a useful tool for marking locations to return to later.

    ReplyDelete
  20. Color ComicInspired by A Scanner Darkly, this effect makes any ordinary shot into a posterized art painting. downloadfreematerialshere.me Do you have trouble remembering coffee orders like we do.

    ReplyDelete
  21. الرائد من افضل شركات الخدمات المنزلية في المملكة وخدماتها تغطى كل المنطقة العربية للمزيد قم بزيارة
    شركة تنظيف خزانات بمكة شركة غسيل خزانات بمكة
    افضل شركة تنظيف منازل بالمدينة المنورة افضل شركات تنظيف منازل بالمدينة المنورة
    افضل شركة تنظيف بمكة بالبخار شركة تنظيف بمكة بالبخار
    شركة نقل عفش من جدة الى الاردن شركة نقل اثاث من جدة الى الاردن
    شركة تنظيف مجالس بمكة افضل شركة تنظيف مجالس بمكة

    ReplyDelete
  22. This comment has been removed by the author.

    ReplyDelete
  23. Practice questions can help familiarize with the FAA sectional chart test, but in the end, we need to be physically and mentally ready to answer the questions without any doubt.

    ReplyDelete