Мark Phillips "Intoduction to Silicon Valley"
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Мark Phillips "Intoduction to Silicon Valley"

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Мark Phillips "Intoduction to Silicon Valley" Мark Phillips "Intoduction to Silicon Valley" Presentation Transcript

  • Introduction toSilicon Valley Mark Phillips CTO
  • Silicon Valley Distance from San Francisco to San Jose is 80 km/50 milesSand Hill Road 2
  • Silicon Valley – Brief History• 1891 Stanford University founded by a former Governor of California• 1939 HP founded by Stanford graduates Bill Hewlett and Dave Packard• 1950’s Stanford University experienced financial difficulties - leased land to technology companies• 1951 Stanford Industrial Park established – considered Silicon Valley’s starting point• 1971 Intel created the world’s first microprocessor (the Intel 4004 Chip)• 1976 Apple Computer creates the first Personal Computer (Apple – 1)• 1977 Oracle Founded – IPO in 1986• 1980 Apple Computer goes public - largest public offering since Ford went public in 1956• 1984 Cisco Founded - IPO in 1990 3
  • Silicon Valley – Brief History cont.• 1995 Netscape goes public one year after founding – at US$1.96 billion, the largest IPO in history• 1995 Yahoo Founded - IPO in 1996• 1995 eBay Founded - IPO in 1998 1995-2000: Venture capital boom and the Internet/dot-com bubble.• 1998 Google Founded - IPO in 2004• 2000 Stock Market (NASDAQ) crashed• 2001 Lohika Founded - Private• 2003 LinkedIn – IPO in 2011• 2004 Facebook – IPO expected in May, 2012• 2006 Twitter Founded - IPO in 2013?• 2011 HP now a global company with ~350,000 employees and revenues of US$127 billion 4
  • IT and BioTech Companies Top Public IT Companies Rank by Revenue (2010) Largest VC-Funded Biotech Company Revenue (US$ Employees Deals in Silicon Valley (2010) millions) (total) Hewlett Packard 127,158 324,600 Company VC Funding # of Apple 76,283 46,000 Investors Intel 43,624 82,500 Cisco Systems 42,361 63,465 Founded in last Relypsa Inc 70,000,000 6 Oracle 34,479 108,800 ~15 years and Solazyne, Inc 60,000,000 11 Google 29,321 32,467 employ ~75% Pacific Biosciences 59,000,000 2Applied Materials 10,386 13,900 of Silicon Valley IT workers. Pacific Biosciences 50,000,000 2 Synnex 9,179 10,000 Incline Therapeutics 43,000,000 7 eBay 9,156 17,700 Pearl Therapeutics 37,500,000 4 Sanmina-SCI 6,503 48,000 AMD 6,494 11,000 Achaogen, Inc 35,360,900 8 Yahoo 6,325 13,700 CardioDx, Inc 34,565,000 4 Symantec 6,048 18,600 iPierian, Inc 28,470,400 9 Aglient 5,750 18,500 VeraCyte, Inc 28,000,000 4 SanDisk 4,827 3,469 NetApp 4,785 11,800Juniper Networks 4,093 8,772 Adobe 3,969 9,117 Intuit 3,554 8,700 Nvidia 3,543 6,029 5
  • VC Firms – Overview and Structure• Venture capital (VC) firms typically finance early stage and growing companies organized as partnerships: • General Partners • Limited Partners• VC firms are very selective and look to fund growing companies that have promising technology and high growth potential• With their investment, the VC firm owns significant equity in the company. Liquidity (IPO or acquisition) after 3 to 7 years .• VC firms create funds with a specific investment focus – i.e. a particular industry or stage of growth 6
  • How does VC funding work? VC funding is typically categorized as ‘venture rounds’ when certain business milestones are met:• Seed/Angel - $50K to $500K• Series A (First Round) - $1M to $3M• Series B (Second Round) - $3M to $10M• Series C (Third Round) - Mezzanine financing - $10M to $100M• Series D (Fourth Round) - $10M to $100M• IPO: Initial public offering or Acquisition 7
  • Top Silicon Valley VC’s• The top 10 VC Firms based on probability of high performance and success:• Total funding managed by each VC from $135 million to $3 billion.• Kleiner Perkins (KPCB) was founded in 1972 - the first VC firm to set-up in Silicon Valley.• Andreessen Horowitz was founded in 2009 8
  • Boom and Bust • Last 15 years, Silicon Valley has experienced a cycle of relative ‘boom and bust’ • Dot-com bubble started mid-90s and culminated in the NASDAQ crash in early 2000. • Silicon Valley still one of the top technology centers in the world. • From 2000 onwards, VC financing gradually revived, diversification: pharma, energy, biotech, farming etc. • Last year economy in Silicon Valley is improved. Still not at 2000 height of ~1 million jobs Lohika Confidential 9
  • Boom and Bust cont.Job Market: VC investment: $100.1 BillionThe number of jobs still at1995 level.Since 1995 population has VC Investment:grown by ~20% and the $29.1 Billionnumber of unemployed(~100,000 during therecession) is the highestsince 1990. VC Investment: $21.8 Billion VC Investment: $21.2 Billion VC Investment: $7.3 Billion 10
  • Life at a Start-up in Silicon Valley • High tech start-ups range from two person founders raising seed money to VC- backed firms with several hundred people – all have one thing in common, they are always looking for MONEY!!! Chaotic Sleep Creative under your desk ‘Company-First’ Beer mindset Flexible and PizzaLong Hours Potential for big pay-off if successful Fun, open, unstructured work environment 11