Preso provided to startups in Madrid

US Tech/VC OverviewMadrid Network ChallengeOpinno
Shai Goldman
Silicon Valley Bank
sgoldman@svb.com
Twitter: @shaig
Nov 30, 2010

HQ in Bay Area, California – Est. 1983
Technology, Venture Capital, Wine
US, UK, Israel, China, India
10,000 technology companies as clients
50%+ of VCs backed startups are clients
Commercial Bank (Lending, Investments, Valuations, FX)
Silicon Valley Bank

Macro Overview
Less VC $
Super Angel / Micro VC $
Corporate VC $
Less interest in cleantech, life science, semi
More interest in software
More M&A and Less IPO
Topics

NASDAQ (a US stock market)

Tech IPOs (Initial Public Offerings on US Markets)

Less VC $ (amount invested by US VCs)

10 year returns = negative (below 0%)
VCs target a 3X return on fund, 20%+ annual return
Less interest by their investors i.e. Limited Partners (LPs)
SWF (Sovereign Wealth Funds) are showing increased interest
Exits have decreased, median acquisition is $55M
Less VC $

Smaller funds < $100M
A few General Partners
$1M rounds ($50K to $1M /investment)
LPs are interested in these new funds
Angels-> Super Angels-> Micro VCs

Innovation is not from within
Find and invest in innovation
Cash available
Intel, Google, Cisco, Best Buy, Disney, GM, Nike, Telefonica, Applied Materials, etc
Corporate VC

Cleantech (down)
Very capital intensive, over funded in 2006/2007
Life Science (down)
Capital intensive, long investment period, regulatory issues
Semi (down)
Capital intensive, only a couple of acquires
Software (up)
Delivery: SaaS/Web, Mobile
Clients: Enterprise, Consumer
Billing: Subscription, Freemium
Capital Efficient
Tech Trends

Mobile: iOS (Apple), Android (Google), RIM? MS?
Infrastructure: HP, Cisco, VMware, IBM, MS
Enterprise: SAP, Oracle, Salesforce, MS
Consumer: Apple, Google, Facebook, Twitter, Amazon, Disney, Netflix
Tech Trends

$500K to $1.5M
SW (mobile, consumer, enterprise, infrastructure)
2+ Founders Full Time
Initial Product Complete
Revenue/Customers
US (Bay Area, NYC, Boston, LA, Seattle, Austin)
Seed / Series A

M&A
$55M Median Acquisition
Apple, Facebook, Google, HP, IBM, Oracle, Cisco, Amazon, etc
$1B+ IPO / M&A opportunities
Facebook, Zynga, LinkedIn, Groupon, Twitter
Exits

Preso provided to startups in Madrid

by Shai Goldman on Nov 29, 2010

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Preso provided to startups in Madrid — Presentation Transcript