[caption id="" align=“aligncenter” width=“500” caption=“Chi-Hua Chien (Kleiner Perkins Caufiled & Byers) Keynote @ iphonedevcamp ‘09”] 
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iphonedevcamp 09 friday keynote intro - BT is the music guest -- did the Monster soundtrack. -- He’s a legend in the electronic scene. -- He has an app (“sonify”) in the appstore. It performs a stutter edit when shaken
Chi-Hua Chien (Kleiner Perkins Caufiled & Byers) Keynote - $100M ifund - KPCB runs it - # users of mobile internet is 4x desktop users, so it’s a huge opportunity - how did the iphone change things? -- high speed internest -- consumer-oriented biz behind it -- appstore -- unified platform - how is the fund doing? -- iphone sales dwarf ipod sales -- news, games, music usage on iphone far exceeds that on desktops -- 1.5B downloads from appstore in 165 days -- 4000 proposals reviewed -- 250 companies met -- actively engaged w/ 5 companes -- $45M deployed; will probably exceed $100M cap -- ifund companies: pelago, gogii, icontrol, ngmoco, booyah, mobshop, +1 unannounced - ideas to consider -- intro --- #1 app in appstore (100k downloads/day): “do not push the red button”. Does nothing! --- current top apps are a bit disappointing, non-innovative -- general thoughts --- innovation is key --- small, hacky apps are not long-term --- $0.06 ecp currently for ad space on apps -- categories --- mobile commerce ---- hypothesis: will be 3-4x size of commerce on internet ($100B), ie close to $1T ---- not too long ago, we were willing to pay $1 for info on 411 ---- phones are great for spontaneous purchases ---- what will be the amazon, google of the mobile world --- realtime everywhere & anywhere ---- the internet was a really good newspaper; after you walk away from the computer, the internet is over. ---- the mobile internet knows a lot more about you ---- the mobile internet is always on --- local search ---- local search is completely different from desktop search, ie social, geo are bigger factors --- healthcare ---- mobile device can transmit monitoring data from embedded device ---- m. device can also analyze data ---- us gov is going to spend a lot to digitize med. data --- augmented reality ---- mobile device overlays data on top of real world --- real-world gaming ---- online games have spent a lot to build massive virtual worlds. what if the planet was the world you played in? what would ou play? -- QA --- size of funding & size of teams? ---- pelago $18M, 3 ppl ---- gogii $25M(?), 3 ---- ngmoco $15M, 3 ppl ---- booyah $5M, 3 ppl ---- mobshop $5M, 1 guy, worked out of KPCB ---- icontrol 25-30 ppl --- min size of team? ---- 1 person --- can u form a company w/ 1 person? ---- yes, the laywers can work that out --- how can a vc firm, fund these companies, given the “capriciousness” of the apple review process? ---- KPCB has a very good relationship w/ apple ---- don’t try to launch a mobile operating sys. --- eductaional apps? ---- mobie is a componenet of ed ---- huge market --- top 5 things that matter when selecting a company to fund? ---- market, team (do you know what you’re doing), tech (is it defensible), prod (compelling?), biz. model (how are you going to make money) --- 4k proposals, $100M avail, are we on track? ---- ballpark, this is a really fast pace ---- KP has 3 ractices: life, info, green ---- 10k biz plans fund 15 comapnies/year --- signal to noise? ---- comperable to other biz areas ---- 300 in 1st 24/hrs ---- former web host has published early proposals --- level of detail in projections? ---- google’s orig. biz plan didn’t account for $1B in first years ---- no way to get it right ---- most important is how you think about it --- do you encourage fin. projections? yes --- preferred method of receiving proposals? email --- do you need a full biz plan? ---- 35 pages used to be the norm ---- now a deck that covers the 5 main areas is sufficient --- given current apps are disapponting, how could apple improve this? ---- apple selects apps that push the platform ---- fb app store was a freeforall ---- all the great apps we could have built around fb never happened because fb had no editorial ---- we’re going thru a market education process ---- the media hasn’t given enough notice to apps that are changing the world --- are these slides avail somewhere? ---- they’ll be on the ipdc website --- how important are barriers to entry? how many have patents? ---- very imp., and almost all have patents ---- very difficult tech. is more imp. than patents --- hardware, software, accessories? ---- hardware takes a lot of capital, so it’s noty a vc-backed //who’s bored? ok, i’ll take 2 more --- to what extent has the pace of dev. in the iphone space affected KP biz. practice? ---- they impl. salesforce behind the site to hadnle the scale of submissions ---- this is still a very personal, high-touch biz --- I have been awarded a project (online sales to iphone), can we get funding? ---- no, KP is not investing in services ---- KP is looking for ppl developing IP --- what’s the dominant revenue model? ---- user-purchase, either virtual goods or real ---- thru apple’s payments platform --- are there tools deleopers can use to promote beyond the appstore, ie how to promote? ---- mobclix, adworld, tapjoy, etc run ad campaigns outside appstore ---- apple has sold 45M iphones/ipod touch, vs billions of handhelds sold overall --- make a lot from a few users, or a little from a lot? ---- depends on market: medical apps cost a lot; tons of free apps that are ad supported. --- would it help or hinder to have multiple disparate projects? ---- focus is best ---- pick the best one --- any segmentation among the funded projects? ---- not at the outset, but now we can see some in the data ---- gogii is loved by teens because their parents won’t get them a texting plan --- iterative dev? ---- yes, the app store looks more like internet dev, than packaged goods --- size of exit from 5M invested? ---- material, pub. companies, are coming. this is the goal of KP cchien@kpcb.com