View
1.162
Download
4
Category
Preview:
DESCRIPTION
What makes Silicon Valley so unique?An intro of Silicon Valley, particularly catered for Italian entrepreneurs
Citation preview
prepared by:Marco Marinucci ©
IE, June 2011Marco Marinucci
A VISION OF ENTREPRENEURSHIP IN SILICON VALLEY
ON STARTUPS, INNOVATION AND WAVE SURFING
• IE IXMBA [04], MSs EE Uni Genova [93]• Google inc., Strategic Partnerships• Mind the Bridge, founder and CEO• MTB GYM incubator managing partner• Corriere della Sera, contributor
SiliconValley.corriere.it• IE Silicon Valley week
2
Startup Summer School
http://school.mindthebridge.org
• 3 weeks in San Francisco• live and breath with the startups• Pier 38 (~60 startups)• 20 modules• visits @ companies• work on your project or with a startup
prepared by:Marco Marinucci © 3
DO WE CARE ABOUT INNOVATION?
Innovation is about what will be NEXT
“You cannot plan innovation. You cannot plan invention. All you can do is try very hard to be at the right place and be ready.” Eric Schmidt, May 09
prepared by:Marco Marinucci © 4/13
THE “VALLEY”
prepared by:Marco Marinucci © 5/13
THE HISTORY OF THE VALLEY
prepared by:Marco Marinucci © 7/13
THE (REAL) HISTORY OF THE VALLEY
prepared by:Marco Marinucci © 8
THE (REAL) HISTORY OF THE VALLEY
1930 1940 1950 1960 1970 1980 1990 2000
WAV
ES O
F IN
NOVA
TION
INNOVATION NETWORKS
INTERNET
PERSONAL COMPUTERS
INTEGRATED CIRCUITS
DEFENSE
Today:25 of Fortune 100Adobe SystemsAMDAgilent TechnologiesApple Inc.Applied MaterialsBusiness ObjectsCisco SystemseBayElectronic ArtsGoogleHewlett-PackardIntelIntuitLSI LogicMaxtorNational SemiconductorNetwork ApplianceNvidiaOracle CorporationSanDiskSeagate TechnologySolectronSymantecSun MicrosystemsYahoo!…
◊ NASA◊
Lockheed
◊ HP (47)
◊ Intel (68)
◊ Kleiner Perkins (72)
◊ Apple (80)
◊ 3Com, Adobe, Cisco
◊ Yahoo, ebay, Google (90s)
?
prepared by:Marco Marinucci © 9/13
THE MAIN PILLARS
◊ Is that replicable / portable?
◊ Is it sustainable long-term?
◊ What is the impact of the changing international outlook?
KEY QUESTIONS
prepared by:Marco Marinucci © 10
SOFT FACTORS
◊ The importance of Dynamism, speed: continuous evolving world
◊ Approach to Risk
◊ Value of Failure (not just a downside but a must-have)
◊ Importance of the Hub: a world of opportunities
◊ Think Big
KEY TO SUCCESS
prepared by:Marco Marinucci © 11
DOES IT REALLY KICK ASS?
[*Source: Ernest Young Global VC report – 2007]
2003 2004 2005 20060
1
2
3
4
5
6
7
8
9
10
3.6 3.8 3.9 4.1
6.8
8.3 8.59
USAEuropeSilicon Val-ley
2003 2004 2005 20060
500
1,000
1,500
2,000
2,500
3,000
22192328
2422 2454
13731265 1189
867701 767 814 811
US
Europe
Silicon Valley
Annual VC Investment (B US$) Number of Deals
0.028 62
Italy• Globalization• Moving to
extremes
prepared by:Marco Marinucci © 12
WHAT’S HOT?
Top Industry Segments - Silicon Valley 2006
Rank Segment Amount (US$ M)
Rounds
1 Software 2,300 2612 Communications 1,176 793 Biopharmaceuticals 1,031 544 Semiconductors 1,018 715 Information Services 993 1286 Medical Devices 923 777 Electronics 540 408 Cons/Bus Services 383 429 Energy 233 1810 Cons/Bus Products 75 9
Amount (M $)
Oak Investment Partners 2,560New Enterprise Associates 2,500Polaris Venture Partners 1,000
US - Top VC funds Raised 2006
Amount (M EU)
Scottish Equity Partners 235Northzone Ventures 175Life Sciences Partners BV 150
EU - Top VC funds Raised 2006
[*Source: Ernest Young Global VC report – 2007]
prepared by:Marco Marinucci © 13
VCS IMMUNE FROM CRISIS? BULLSHIT! *TECHCRUNCH
[*Source: TechCrunch Apri 09 from PriceWaterHouseCoopers]
prepared by:Marco Marinucci ©
INVESTMENT TYPES
>$ 100K• 1-3 Years
>$ 2M • 3-7 Years
IPO
>$ 10M • 3-7 Years
prepared by:Marco Marinucci ©
THE FUNDING DECISION
Founders’ capitalSavings
Credit cards
LoansAcconts receivableStrategic PartnersRetained earnings
VC firmsCorporate VC
Private placementInvestment banking
Public markets
Capital from:Family/friends
AngelsEarly stage VC
Bootstrapping Equity Financing
Early sources
Later sources
prepared by:Marco Marinucci ©
THE VENTURE CAPITALIST
prepared by:Marco Marinucci ©
INVESTMENT STRATEGY
IDEA DEVELOPMENT BETA CUSTOMERS EXPANSION MARKET SHARE
12-24 months
3 months
3-6 months 12-18 months
12-24 months
Vision/ Product Focus Customer / Market Share Focus
M&A
M&A Valuation
Cumulative Investment
Management Focus
IPO
Medium Risk High Risk
Medium Risk Low Risk
Investment
Focus
prepared by:Marco Marinucci ©
Limited Partners
VC Firm (General Partners)
Startup Companies
IPO/M&A
Fund Fund Fund
Exit
Distributions Fundraising Commitments
Investment DisbursementsProceeds
VENTURE CAPITAL GENERAL INVESTMENT PROCESSVENTURE CAPITAL GENERAL INVESTMENT PROCESS
prepared by:Marco Marinucci ©
AGREEMENT VARIABLES AND CONTROL MECHANISMS
prepared by:Marco Marinucci ©
VENTURE CAPITAL COMPENSATION STRUCTURE
prepared by:Marco Marinucci © 22
READ THOSE OR YOU’RE OUT
WWW.TECHCRUNCH.COMWWW.LINKEDIN.COMWWW.VALLEYWAG.COMWWW.SILICONVALLEY.COMWWW.BOINGBOING.NETwww.Digg.comwww.startupdigest.comnews.ycombinator.com/www.thefunded.com
prepared by:Marco Marinucci © 23
READ THOSE OR YOU’RE OUT
WWW.BAIA-NETWORK.COMWWW.LOBBYINNOVAZIONE.ITSILICONVALLEY.CORRIERE.ITWWW.ITALIANIDIFRONTIERA.COMWWW.WORKINGCAPITAL.TELECOMITALIA.IT
FACEBOOK: ITALIAN STARTUP SCENERIDE THE WAVE TO SFMIND THE BRIDGE GYM
prepared by:Marco Marinucci © 24
SUCCESSFUL LANDINGS
1. Find a dedicated mentor (soon!)
2. Set your quarterly objectives
3. Use the network4. Customers before funding5. Get local (advisory
committee)6. Learn from who disagrees
prepared by:Marco Marinucci © 25
(5) LESSONS FROM GOOGLE
1. the team is all (almost)
2. healthy disregard for the impossible
3. big problems are better than small ones
4. users first
5. don’t pay attention to the VC bandwagon
prepared by:Marco Marinucci © 26
RAISING MONEY TODAY (@#$!) IN SV
are you not local
how many exits again?
don’t show me the buyer (don’t IPO me…)
haven’t jumped yet
DON’T TALK TO ME IF YOU…
prepared by:Marco Marinucci © 27
WHY NOW?
talent abounds
from scarcity comes clarity
innovation comes from hunger
startup cost ~0
IT’S THE BEST OPPORTUNITY
prepared by:Marco Marinucci © 28
HOW TO PITCH A SILICON VALLEY VC
Books• The Art of the start - Guy Kawasaki
• Communicating the American Way: A Guide to Business Communications in the U.S. by Blendstrup, Ghisini Amazon.com
• The Home Run Hitter's Guide to Fundraising: Happy About Raising Capital without Pitching by Dan Sapp Amazon.com
• Presenting to Win: The Art of Telling Your Story by Jerry Weissman Amazon.com
Videos• Guy Kawasaki: 10-20-30 rule
WWW• How to Present to VCs: http://www.hcp.com/advice • Stanford Ecorner:http://ecorner.stanford.edu/
popularVideos.html
A FEW RESOURCES
prepared by:Marco Marinucci © 29
INSTRUCTIONS FOR USE
Unique exposure, get the best out of it Get prepared in advance, have something interesting to say
Be part of the network: you are the contacts that you have
Nurture your contacts: take and give
SUGGESTED TAKE-AWAYS
Recommended