Your SlideShare is downloading. ×
Preso provided to startups in Madrid
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Preso provided to startups in Madrid

874

Published on

As part of my visit to Spain visiting with startups, I provided this presentation as an overview of the US tech/VC ecosystem

As part of my visit to Spain visiting with startups, I provided this presentation as an overview of the US tech/VC ecosystem

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
874
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Shai Goldman Silicon Valley Bank sgoldman@svb.com Twitter: @shaig Presentation available at slideshare.net Nov 30, 2010 1
  • 2.  Silicon Valley Bank  Venture Debt  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 2
  • 3.  HQ in Bay Area, California – Est. 1983  Technology, Venture Capital, Wine  US, UK, Israel, China, India  10,000 technology companies are clients  50%+ of VCs backed startups are clients  Commercial Bank (Lending, Investments, Valuations, FX) 3
  • 4.  Venture Debt does not replace Venture Capital  Augments Series A round  Typically used for extending run way  Series A round -> 18 months  + Venture Debt -> 24 months  Hit additional milestones  Higher valuation on Series B  Ex: $5M Series A x 20% = $1M Venture Debt  Pricing (equity/warrants + interest) 4
  • 5. 1052 5000 1500 2800 1300 2534 0 1000 2000 3000 4000 5000 6000 1995 2000 2001 2007 2008 2010 5
  • 6. 350 94 57 57 86 6 12 40 0 50 100 150 200 250 300 350 400 2000 2004 2005 2006 2007 2008 2009 2010 6
  • 7. $7 $100 $35 $22 $22? $0 $20 $40 $60 $80 $100 $120 1995 2000 2007 2010 2011 VC investments ($US Billion) Per PWC MoneyTree Report 7
  • 8.  10 year returns = negative (below 0%)*  VCs target a 3X return on fund, 15%+ 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 *http://thomsonreuters.com/content/press_room/financial/2010_08_10_US_ PE_performance_positive 8
  • 9.  Smaller funds < $100M  A few General Partners  $1.5M rounds ($15K to $1M /investment)  LPs are showing interest in these new funds 9
  • 10.  Innovation is not from within  Find and invest in innovation  Cash available  Intel, Google, Cisco, Best Buy, Disney, GM, Nike, Telefonica, Applied Materials, etc 10
  • 11.  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 11
  • 12.  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 12
  • 13.  $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) 13
  • 14.  M&A ◦ $55M Median Acquisition ◦ Active Acquires: Apple, Facebook, Google, HP, Dell, IBM, Oracle, Cisco, Amazon, etc  $1B+ M&A (IPO?) opportunities ◦ Facebook ($34B - $50B), ◦ Groupon ($2.5B - $6B Google? rumor) ◦ Zynga ◦ LinkedIn ◦ Twitter 14

×