The secret sauce of Silicon Valley - Marco Marinucci, Jul 2011

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What makes Silicon Valley so unique?
An intro of Silicon Valley, particularly catered for Italian entrepreneurs

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The secret sauce of Silicon Valley - Marco Marinucci, Jul 2011

  1. 1. A vision of Entrepreneurship in Silicon Valley<br />On Startups, Innovation and Wave Surfing<br />IE, June 2011<br />Marco Marinucci<br /><ul><li>IE IXMBA [04], MSs EE Uni Genova [93]
  2. 2. Google inc., Strategic Partnerships
  3. 3. Mind the Bridge, founder and CEO
  4. 4. MTB GYM incubator managing partner
  5. 5. Corriere della Sera, contributor SiliconValley.corriere.it
  6. 6. IE Silicon Valley week</li></li></ul><li>2<br />Startup Summer School<br /><ul><li> 3 weeks in San Francisco
  7. 7. live and breath with the startups
  8. 8. Pier 38 (~60 startups)
  9. 9. 20 modules
  10. 10. visits @ companies
  11. 11. work on your project or with a startup</li></ul>http://school.mindthebridge.org<br />
  12. 12. 3<br />Do we care about Innovation?<br />Innovation is about what will be NEXT<br />“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<br />
  13. 13. 4/13<br />the “Valley”<br />
  14. 14. 5/13<br />The History of the Valley<br />
  15. 15. 6/13<br />The (real) History of the Valley<br />
  16. 16. 7/13<br />The (real) History of the Valley<br />
  17. 17. 8<br />The (real) History of the Valley<br />? <br />Today:25 of Fortune 100<br />Adobe Systems<br />AMD<br />Agilent Technologies<br />Apple Inc.<br />Applied Materials<br />Business Objects<br />Cisco Systems<br />eBay<br />Electronic Arts<br />Google<br />Hewlett-Packard<br />Intel<br />Intuit<br />LSI Logic<br />Maxtor<br />National Semiconductor<br />Network Appliance<br />Nvidia<br />Oracle Corporation<br />SanDisk<br />Seagate Technology<br />Solectron<br />Symantec<br />Sun Microsystems<br />Yahoo!<br />…<br />INTERNET<br />PERSONAL COMPUTERS<br /><ul><li>Yahoo, ebay, Google (90s)</li></ul>INTEGRATED CIRCUITS<br /><ul><li>3Com, Adobe, Cisco </li></ul>WAVES OF INNOVATION<br /><ul><li>Apple (80)
  18. 18. Kleiner Perkins (72)</li></ul>DEFENSE<br />INNOVATION NETWORKS<br /><ul><li>Intel (68)
  19. 19. HP (47)
  20. 20. Lockheed
  21. 21. NASA</li></ul>1930 1940 1950 1960 1970 1980 1990 2000 <br />
  22. 22. 9/13<br />The main pillars<br />KEY QUESTIONS<br /><ul><li>Is that replicable / portable?
  23. 23. Is it sustainable long-term?
  24. 24. What is the impact of the changing international outlook?</li></li></ul><li>10<br />Soft Factors<br />Key to Success<br /><ul><li>The importance of Dynamism, speed: continuous evolving world
  25. 25. Approach to Risk
  26. 26. Value of Failure (not just a downside but a must-have)
  27. 27. Importance of the Hub: a world of opportunities
  28. 28. Think Big</li></li></ul><li>11<br />Does it really kick ass?<br />Annual VC Investment (B US$)<br />Number of Deals<br />62<br />0.028<br />Italy<br /><ul><li> Globalization
  29. 29. Moving to extremes</li></ul>[*Source: Ernest Young Global VC report – 2007]<br />
  30. 30. 12<br />What’s hot?<br />[*Source: Ernest Young Global VC report – 2007]<br />
  31. 31. 13<br />VCs immune from Crisis? Bullshit! *Techcrunch<br />[*Source: TechCrunchApri 09 from PriceWaterHouseCoopers] <br />
  32. 32. 14<br />Clean tech not feeling so good anymore<br />[*Source: TechCrunchApri 09 from PriceWaterHouseCoopers] <br />
  33. 33. 15<br />Investment Types<br />>$ 100K<br /><ul><li>1-3 Years</li></ul>>$ 2M <br /><ul><li>3-7 Years</li></ul>IPO<br />>$ 10M <br /><ul><li>3-7 Years</li></li></ul><li>16<br />The Funding Decision<br />Bootstrapping<br />Equity Financing<br />Founders’ capital<br />Savings<br />Credit cards<br />Capital from:<br />Family/friends<br />Angels<br />Early stage VC<br />Early sources<br />Loans<br />Acconts receivable<br />Strategic Partners<br />Retained earnings<br />VC firms<br />Corporate VC<br />Private placement<br />Investment banking<br />Public markets<br />Later sources<br />
  34. 34. The Venture Capitalist<br />
  35. 35. Investment Strategy<br />Medium Risk<br />Low Risk<br />Medium Risk<br />High Risk<br />IPO<br />M&A<br />Valuation<br />M&A<br />Investment<br />Focus<br />Cumulative Investment <br />BETA<br />CUSTOMERS<br />EXPANSION<br />MARKETSHARE<br />IDEA<br />DEVELOPMENT<br />12-24 months<br />3 months<br />3-6 months<br />12-18 months<br />12-24 months<br />Management Focus<br />Vision/ Product Focus<br />Customer / Market Share Focus<br />
  36. 36. Venture Capital General Investment Process<br />Venture Capital General Investment Process<br />Limited Partners<br />Distributions<br />Fundraising Commitments<br />VC Firm (General Partners)<br />Fund<br />Fund<br />Fund<br />Investment Disbursements<br />Proceeds<br />Startup Companies<br />Exit<br />IPO/M&A<br />
  37. 37. Agreement variables and control mechanisms<br />
  38. 38. Venture Capital Compensation Structure<br />
  39. 39. 22<br />Read those or you’re out<br />www.Techcrunch.com<br />www.Linkedin.com<br />www.Valleywag.com<br />www.Siliconvalley.com<br />www.BoingBoing.net<br />www.Digg.com<br />www.startupdigest.com<br />news.ycombinator.com/<br />www.thefunded.com<br />
  40. 40. 23<br />Read those or you’re out<br />www.baia-network.com<br />www.lobbyinnovazione.it<br />siliconvalley.corriere.it<br />www.italianidifrontiera.com<br />www.workingcapital.telecomitalia.it<br />FACEBOOK: <br />ITALIAN STARTUP SCENE<br />RIDE THE WAVE TO SF<br />MIND THE BRIDGE GYM<br />
  41. 41. 24<br />Successful Landings <br /> Find a dedicated mentor (soon!)<br /> Set your quarterly objectives<br /> Use the network<br /> Customers before funding<br /> Get local (advisory committee)<br /> Learn from who disagrees<br />
  42. 42. 25<br />(5) Lessons from Google<br />the team is all (almost)<br />healthy disregard for the impossible<br />big problems are better than small ones<br />users first<br />don’t pay attention to the VC bandwagon<br />
  43. 43. 26<br />Raising money Today (@#$!) in SV<br />Don’t talk to me if you…<br /> are you not local<br /> how many exits again?<br /> don’t show me the buyer (don’t IPO me…)<br /> haven’t jumped yet <br />
  44. 44. 27<br />Why now?<br />It’s the best opportunity<br /> talent abounds <br /> from scarcity comes clarity<br /> innovation comes from hunger<br /> startup cost ~0<br />
  45. 45. 28<br />How to Pitch a Silicon Valley VC <br /> a few Resources<br />Books<br /><ul><li>The Art of the start - Guy Kawasaki
  46. 46. Communicating the American Way: A Guide to Business Communications in the U.S. by Blendstrup, Ghisini  Amazon.com
  47. 47. The Home Run Hitter's Guide to Fundraising: Happy About Raising Capital without Pitching by Dan Sapp Amazon.com
  48. 48. Presenting to Win: The Art of Telling Your Story by Jerry WeissmanAmazon.com</li></ul>Videos<br /><ul><li> Guy Kawasaki: 10-20-30 rule   </li></ul>WWW<br /><ul><li>How to Present to VCs: http://www.hcp.com/advice 
  49. 49. Stanford Ecorner:http://ecorner.stanford.edu/popularVideos.html</li></li></ul><li>29<br />Instructions for use<br />Suggested take-aways<br /> Unique exposure, get the best out of it<br /> Get prepared in advance, have something interesting to say<br /> Be part of the network: you are the contacts that you have<br />Nurture your contacts: take and give <br />
  50. 50. 30<br />Agenda<br />WEDNESDAY May, 12<br /> * 10.00AM-12.00AM - VMWare<br /> * 1.00PM-2.00PM - Sun/Oracle<br /> * 3.00PM-5.00PM - Autodesk<br />THURSDAY May, 13<br /> * 9.00AM-11.00AM - Google<br /> * 11.30AM-1.00PM - Stanford Univ.<br /> * 4.00PM - 5.30PM - Facebook<br />MONDAY May, 10<br /> * 9.00AM-12.30PM - Accenture<br /> * 2.00PM-4.00PM - Strands<br /> * 4.30PM-5.45PM - Intro to Silicon Valley<br /> * 6.00PM-9.00PM - Startup night<br />TUESDAY May, 11<br /> * 7.30AM- 9.30AM - Yahoo<br /> * 10.00AM-11.30AM - Innovation Mgmt Institute<br /> * 3.30PM-5.30PM - Plug & Play Tech center<br /> * 6.00PM-8.00PM - IE cocktail<br />
  51. 51. 31<br />Speakers<br />www.iesiliconvalleyweek.com<br />Bob Sutton,Stanford<br />AtakanCetinsoy,Strands<br />Javier Olivan, Facebook<br />VittorioViarengo,VMWare<br />Julian Keith Loren, Innovation Mgmt Inst<br />EttoreLeale,Yahoo<br />Jon Pittman,Autodesk<br />Bernardo Hernandez,Google<br />Marco Marinucci,Google, MTB<br />
  52. 52. 32<br />Q&A<br />ContactEmail:MMarinucci@gmail.com<br />

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