Successfully reported this slideshow.
“INNOVATION IS ONE OF THE MOST FUNDAMENTAL   PROCESSES UNDERPINNING ECONOMIC GROWTH,THE DRIVER OF GROWTH IN OUTPUT PER UNI...
“ASK 10 PEOPLE TO DEFINE INNOVATION AND YOU’LLGET 10 DIFFERENT ANSWERS. PEOPLE CONFUSE IT WITHENTREPRENEURSHIP AND, JUST A...
EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
STRONG RESEARCH DRIVENUNIVERSITIES WITH ENDOWMENTS              “Google was started at Stanford. The intellectual property...
HIGH TOLERANCE FOR RISK           “The tolerance for risk taking is a huge contributor           to the success of Silicon...
ACCESS TOSOPHISTICATED RISK CAPITAL            “Ron Conway is one of the most prolific and well known            angel inv...
KNOWLEDGE SHARING          “We see a wonderful dynamic in Silicon Valley around          knowledge sharing. People are wil...
CREATIVE DESTRUCTION          “A great example of this in action in Silicon Valley is          Twitter. What few people kn...
GLOBALLY EXPERIENCEDREPEAT ENTREPRENEURS          “What most people don’t know is that the founder and          CEO of Spa...
CONSTRUCTIVE FAILURE          “Constructive failure means learning from the          experience of failure in a constructi...
SUPPORTIVEGOVERNMENT POLICY          “Another example of supportive regulation is the ability          to hire employees ‘...
SOCIAL CAPITAL          “What you see below are the linkages between one          venture capital firm, the companies it h...
POSITIVE AGGREGATE RETURNS             “In Silicon Valley the financial returns for winning             investments are hu...
EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
WWW.BLUESKYMININGBOOK.COM
Upcoming SlideShare
Loading in …5
×

Blue Sky Mining Book Presentation

636 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Blue Sky Mining Book Presentation

  1. 1. “INNOVATION IS ONE OF THE MOST FUNDAMENTAL PROCESSES UNDERPINNING ECONOMIC GROWTH,THE DRIVER OF GROWTH IN OUTPUT PER UNIT OF LABOR AND CAPITAL INVESTED.” - OECD EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  2. 2. “ASK 10 PEOPLE TO DEFINE INNOVATION AND YOU’LLGET 10 DIFFERENT ANSWERS. PEOPLE CONFUSE IT WITHENTREPRENEURSHIP AND, JUST AS OFTEN, INVENTION.… INVENTION IS JUST ONE TYPE OF INNOVATION AND IT’S OFTEN NOT THE MOST CRITICAL.” EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  3. 3. EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  4. 4. STRONG RESEARCH DRIVENUNIVERSITIES WITH ENDOWMENTS “Google was started at Stanford. The intellectual property that was the initial foundation was spun out and the university kept a relatively small percentage of the resulting company. No onerous restrictions were placed on the IP that would hinder Google’s ability to raise additional capital. No onerous restrictions either on what could and couldn’t be done with the intellectual property, and no onerous managerial or business controls on the resulting entity. The result was epic. According to the Wall Street Journal, at time of IPO the university’s stake in Google was worth $179.5 million. Since that time the value of Google stock has increased almost 10-fold.” EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  5. 5. HIGH TOLERANCE FOR RISK “The tolerance for risk taking is a huge contributor to the success of Silicon Valley, and not just for entrepreneurs. Employees in the Valley understand the value of risk taking. They know if a company is successful, their stock options will be worth a lot of money. Specialised banks show a willingness to offer venture debt and lines of credit to new ventures with little or no operating history and unproven revenue models. Attorneys are willing to work pro bono until a new venture secures venture funding. Landlords are willing to rent or lease space to new ventures with no operating history. Residential landlords and personal banks are willing to take risks and support people who may have only just started working with a new venture.” EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  6. 6. ACCESS TOSOPHISTICATED RISK CAPITAL “Ron Conway is one of the most prolific and well known angel investor in Silicon Valley. Ron is invested in my company, Mocana. He was an angel investor in Google, and is invested in Facebook, Twitter and hundreds of other startups. He brings not only money but connections, and is savvy in his investment methodology. An example is an event I attended in the month prior to the publication of this book.…The forum was an interactive discussion with Ron’s portfolio CEO’s about the highest impact practices for building new ventures, and a discussion on market trends. Huge value add. Investors like Ron also understand and ensure that the early fundraising rounds are clean and not overly aggressive to ensure that the new venture can attract follow-on financing.” EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  7. 7. KNOWLEDGE SHARING “We see a wonderful dynamic in Silicon Valley around knowledge sharing. People are willing to share their experiences openly. I recall last year going to a local Churchill Club event where Larry Ellison, CEO and a founder of Oracle, was talking about what it was like to be CEO of a fast-growing company at different stages of its evolution. The Churchill Club, founded by Tony Perkins and Rich Karlgaard, personifies this culture of knowledge sharing with an annual calendar of high-caliber events that allow entrepreneurs to network and learn from each others’ experiences.”EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  8. 8. CREATIVE DESTRUCTION “A great example of this in action in Silicon Valley is Twitter. What few people know is that Twitter started out as a side project by the founder of a company called Odeo. Odeo was a blogging site that was going nowhere fast. The founder, Jack Dorsey gave back Odeo investors’ money and offered them the chance to invest in Twitter when it appeared Twitter had more potential, even though it was still unproven. There aren’t many places in the world where this would happen. On secondary market exchanges, Twitter has a value today that is approximately $4 billion, and some suggest as high as $8 billion.”EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  9. 9. GLOBALLY EXPERIENCEDREPEAT ENTREPRENEURS “What most people don’t know is that the founder and CEO of SpaceX is Elon Musk. He is also the CEO and founder of the electric car company Tesla, a NASDAQ listed company with a market capitalization of more than $3.5 billion. (25) He is also Chairman and primary investor in the largest financier of solar installations in the U.S., a company called Solar Winds. Before starting or becoming an investor in these companies, Elon was a founder of PayPal that was acquired by eBay for $1.5 billion, and also Zip2 that was acquired by Lycos for $307 million. Elon Musk is 38 years old.”EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  10. 10. CONSTRUCTIVE FAILURE “Constructive failure means learning from the experience of failure in a constructive way that benefits the individuals involved as well as the ecosphere as a whole.…On the surface, Go was a $75 million failure. But the executive team learned an enormous amount working together through those turbulent times. In other non-financial ways it was not a failure at all: Bill Campbell went on to run Intuit (and mentor other CEOs), Stratton Sclavos went on to start Verisign, Mike Homer went on to help start Netscape and Randy Komisar went on to run Lucas Entertainment.”EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  11. 11. SUPPORTIVEGOVERNMENT POLICY “Another example of supportive regulation is the ability to hire employees ‘at will’ in California and Silicon Valley, meaning they can also be let go at will and without cause. This labor flexibility is crucial to a new venture’s ability to adapt to the market and to the ecosphere as a whole. Counter intuitively it doesn’t lead to lower employment, it fosters new venture creation, and consequently additional employment. Still another example is tax incentives to encourage new venture creation.”EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  12. 12. SOCIAL CAPITAL “What you see below are the linkages between one venture capital firm, the companies it has invested in and the executives within those companies. It is this massive number of connections—the social capital— that also allows venture firms to add value beyond mere money. The firm shown here is Sequoia Capital, investors in Yahoo and Google among others. They also invested in YouTube, acquired by Google, as well as Cisco and a whole host of companies Sequoia helped grow that Cisco acquired over the years.”EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  13. 13. POSITIVE AGGREGATE RETURNS “In Silicon Valley the financial returns for winning investments are huge. They need to be, in order to compensate for the failures or losses. Silicon Valley has spawned iconic global businesses, providing stellar investor returns. As mentioned previously, and to illustrate just how big these returns can be, Benchmark Capital put $6.7 million into eBay and two years later the stake was worth $5 billion. What good Silicon Valley investors do better than anyone else is help turn small companies into massively profitable, global companies.” EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  14. 14. EXTRACTS FROM THE BOOK BLUE SKY MINING – WWW.BLUESKYMININGBOOK.COM
  15. 15. WWW.BLUESKYMININGBOOK.COM

×