Silicon Valley 2000-2010: Changes in the Circles of Influence Prepared Tom Kosnik and Lena Ramfelt,  Coauthors of  Circles...
Thanks to NOC Alumni,  NUS Enterprise,  and NEC team for making this presentation possible!  <ul><li>Prof. Lilly Chan </li...
Who is Tom Kosnik? 1970 1980 1990 2000 2005 2010 AMERICAN MANAGEMENT SYSTEMS
Agenda <ul><li>What is Silicon Valley? </li></ul><ul><li>Stanford and NUS are at Ground Zero </li></ul><ul><li>Circles of ...
What is Silicon Valley?  An entrepreneurial  state of mind.
What is Silicon Valley? Miles of roads and too much traffic
What is  Silicon Valley? The highest concentration of entrepreneurial high-tech companies  in the world.
Stanford University is at Ground Zero  in the Silicon Valley Cluster
And So is NUS College of Silicon Valley!
What are the Circles of Influence?  A model to help entrepreneurs get stakes for their ventures.  Entrepreneurial Cluster ...
Players bet their stakes  on entrepreneurial ventures. <ul><ul><li>Venture capital firms (and their Limited Partners) </li...
The Players in Silicon Valley in 2000… Silicon Valley VCs Angel Investors Regional Business News Media Large High Tech Com...
The Players in Silicon Valley in 2010… SV “local” VCs/ and Angels Regional Business News Media Large High Tech Companies w...
The stakes include… And much more… Money Time Talent Technology Customer Relationships Passion
To get players to bet  their stakes on your venture - you’ve got to know the code… <ul><li>What is the code?  </li></ul><u...
Different Industries are like Mountains  in Silicon Valley Silicon Valley Life  Sciences: Biotech, Medical Equip. Pharmace...
Web 2.0 & Mobile Milestones in Silicon Valley 2000 2002 2003 2004 2005 2006 2010 2009 2008 Sequoia Capital Doom &  Gloom 2...
CleanTech Categories on the Rise in Silicon Valley <ul><li>Air, Water, and Waste </li></ul><ul><li>Energy Efficiency </li>...
Venture Capital Investment Trends  in Silicon Valley The bottom line: There is Scarcity in the Land of Plenty! Source: htt...
Reasons for The Venture Capital Crunch Shrinking Value of other investments reduces the amount LPs are allowed for VC fund...
Ron Conway talks about the odds of getting funded
The rise of Incubators and Accelerators to help early stage entrepreneurs  2000 2002 2003 2004 2005 2006 2010 2009 2008 20...
How Entrepreneurs are  Coping with the Changes in Silicon Valley <ul><li>“ Getting outside the building” to develop paying...
Examples of Trustworthy “Young Guns” in VC <ul><li>Web 2.0 and Mobile Media </li></ul><ul><li>Katherine Barr, MDV </li></u...
Mike Maples Jr. Talks about Learning from Failure
Thank You Tom Kosnik 650 450 3330 Facebook: Tom Kosnik skype: thomas.j.kosnik [email_address] Lena Ramfelt [email_address]...
Appendix Myths and Paradoxes in Silicon Valley Not for presentation. Possible use in Q and A
Venture Capital Investment Trends in the U.S. Source: https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=historical
The 7 Paradoxes of Silicon Valley Silicon Valley is “ground zero” for innovation. 7 Paradoxes of Silicon Valley  Paradox 1...
Academic Aristocracies  Sing Praise to Meritocracy: 2003
Academic Aristocracies  Sing Praise to Meritocracy: 2008
Scarcity in the Land of Plenty The Money Talent Merry-Go-Round
It’s OK to fail if you learn –  and shoulder the blame  Myth 5: It’s OK to fail Paradox 5: It’s OK to fail if you learn - ...
Do the Paradoxes of Silicon Valley  apply in your Entrepreneurial Cluster? The Paradoxes of Silicon Valley No ?? Yes 1. Mo...
What segment best describes you tonight? <ul><li>Raise your hand for the color that best fits you tonight: </li></ul><ul><...
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Silicon Valley 2010- Changes in the Circles of Influence from Prof Tom Kosnik

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  • Above the line: academic Below the line: “real world” business 1970s Duke, UVA, CCL, IMD USMC, AMS (1978-2001) 1980s Stanford GSB, HBS Microsoft, HP, Applied Materials 1990s Stanford Engineering, BASES, STVP, SCPD, KTH, NUS Ernst and Young, Apple, Netpulse, Applied Komatsu Technology, Chemdex, Nuance, MDV 2000s MS&amp;E, NUSEA MWH, Litrex, Esbri 2005s [Nothing above] China Mobile, Genesys, Fenwick 2007 SWIB, Energy Crossroads, Palau GIS (four pictures), Cypress, Clean Tech Open, Anapata, IBM
  • Who can give an example of the “code” for raising venture capital here in Silicon Valley? 1. Never cold call. Get a referral… 2. VCs rarely say no. 3. Entrepreneurs should not tell VCs what the valuation is for their company. VC’s offer and set the price.
  • Those who blame others Or fail twice are blacklisted
  • Silicon Valley 2010- Changes in the Circles of Influence from Prof Tom Kosnik

    1. 1. Silicon Valley 2000-2010: Changes in the Circles of Influence Prepared Tom Kosnik and Lena Ramfelt, Coauthors of Circles of Influence (in revision) Presented at NUS on March 25, 2010 If you circulate any part of this presentation please give credit to the authors.
    2. 2. Thanks to NOC Alumni, NUS Enterprise, and NEC team for making this presentation possible! <ul><li>Prof. Lilly Chan </li></ul><ul><li>Prof. Teo Chee Leong </li></ul><ul><li>Prof. Wong Poh Kam </li></ul><ul><li>Wong Hong Ting </li></ul><ul><li>Hoey Lit Loo </li></ul><ul><li>Audrey Tan </li></ul><ul><li>Min Xuan Lee </li></ul><ul><li>Lao Zi Jun Lawrence </li></ul><ul><li>Shannen Soo </li></ul><ul><li>Jolia Tan </li></ul><ul><li>Daphne Gong </li></ul><ul><li>And more!!! </li></ul>
    3. 3. Who is Tom Kosnik? 1970 1980 1990 2000 2005 2010 AMERICAN MANAGEMENT SYSTEMS
    4. 4. Agenda <ul><li>What is Silicon Valley? </li></ul><ul><li>Stanford and NUS are at Ground Zero </li></ul><ul><li>Circles of Influence: Players, Stakes and Code </li></ul><ul><li>The Players in 2000… and 2010 </li></ul><ul><li>Web 2.0 & Mobile Milestones in the Valley </li></ul><ul><li>Clean Tech Categories on the Rise in the Valley </li></ul><ul><li>Venture Capital Trends in the Valley </li></ul><ul><li>Reasons for the Venture Capital Crunch </li></ul><ul><li>The Rise of Incubators and Accelerators </li></ul><ul><li>How Entrepreneurs are Coping with Changes </li></ul><ul><li>Examples of Trustworthy “Young Guns” in VC </li></ul>
    5. 5. What is Silicon Valley? An entrepreneurial state of mind.
    6. 6. What is Silicon Valley? Miles of roads and too much traffic
    7. 7. What is Silicon Valley? The highest concentration of entrepreneurial high-tech companies in the world.
    8. 8. Stanford University is at Ground Zero in the Silicon Valley Cluster
    9. 9. And So is NUS College of Silicon Valley!
    10. 10. What are the Circles of Influence? A model to help entrepreneurs get stakes for their ventures. Entrepreneurial Cluster Players Code Stakes The Sweet Spot!
    11. 11. Players bet their stakes on entrepreneurial ventures. <ul><ul><li>Venture capital firms (and their Limited Partners) </li></ul></ul><ul><ul><li>Angel Investors </li></ul></ul><ul><ul><li>Research Universities (Stanford and Cal) </li></ul></ul><ul><ul><li>Silicon Valley Law firms </li></ul></ul><ul><ul><li>Public Accounting firms </li></ul></ul><ul><ul><li>Investment banking firms </li></ul></ul><ul><ul><li>Consulting firms </li></ul></ul><ul><ul><li>Marketing, advertising, and PR firms </li></ul></ul><ul><ul><li>Executive search firms </li></ul></ul><ul><ul><li>Stock exchanges (NASDAQ, NYSE, etc.) </li></ul></ul><ul><ul><li>TiE, Monte Jade, AAMA, Silicon Vikings, etc. </li></ul></ul><ul><ul><li>Industry Associations (Semicon, SVASE) </li></ul></ul><ul><ul><li>Accelerators/Incubators (Astia, Clean Tech Open, Plug-and-Play, Y-Combinator) </li></ul></ul><ul><ul><li>BASES, ASES, NUSEA, Energy Crossroads, SWIB </li></ul></ul><ul><ul><li>Business and Technical News Media, Blogs, etc. </li></ul></ul><ul><ul><li>Joint Venture Silicon Valley; Clean Tech Open, etc. </li></ul></ul><ul><ul><li>Social media for entrepreneurs (Facebook, Linkedin) </li></ul></ul><ul><ul><li>Government agencies </li></ul></ul>These are major players in Silicon Valley. How are they similar to or different from the major players in Singapore?
    12. 12. The Players in Silicon Valley in 2000… Silicon Valley VCs Angel Investors Regional Business News Media Large High Tech Companies with Silicon Valley HQ (Lead Customers And Suppliers) Local Government Institutions Leading Silicon Valley Law Firms Fortune 500 Firms not in Silicon Valley (Customers) Executive Search Firms State Government Institutions Investment Banks NASDAQ National Business News Media Stanford & Berkeley Big 4 CPA Firms U.S. Government Global Consulting Firms Most Non-US Corporations Local Influence Of Players Inside Silicon Valley Global Influence of Players Outside Silicon Valley Low Low High High Medium Medium
    13. 13. The Players in Silicon Valley in 2010… SV “local” VCs/ and Angels Regional Business News Media Large High Tech Companies with Silicon Valley HQ (Lead Customers And Suppliers) Local Government Institutions SV’s “global” VCs Leading Silicon Valley Law Firms Blogs & Social media (Facebook, Linkedin) Fortune 500 Firms not in Silicon Valley (Customers) Accelerators & Incubators Executive Search Firms State Government Institutions U.S. Government National Business News Media Stanford & Berkeley Big 4 CPA Firms Most Non-US Corporations Global Consulting Firms NASDAQ Investment Banks Local Influence Of Players Inside Silicon Valley Global Influence of Players Outside Silicon Valley Low Low High High Medium Medium
    14. 14. The stakes include… And much more… Money Time Talent Technology Customer Relationships Passion
    15. 15. To get players to bet their stakes on your venture - you’ve got to know the code… <ul><li>What is the code? </li></ul><ul><li>“ Local” rules of the game </li></ul><ul><li>Usually implicit </li></ul><ul><li>Communicated in private </li></ul><ul><li>Rooted in local entrepreneurial cultures </li></ul><ul><li>Changing across industries in the same location. </li></ul>Knowing the code accelerates your ability to build trust.
    16. 16. Different Industries are like Mountains in Silicon Valley Silicon Valley Life Sciences: Biotech, Medical Equip. Pharmaceuticals. Personalized Medicine Medical Informatics. Etc. Different guides know the code for each mountain! Defense/ Aero Clean Tech Computers & Communications Software, Software as a service, Web 2.0, etc. Semi Mfg./ Semi- Conductors s
    17. 17. Web 2.0 & Mobile Milestones in Silicon Valley 2000 2002 2003 2004 2005 2006 2010 2009 2008 Sequoia Capital Doom & Gloom 2001 NUS College in Silicon Valley 2007
    18. 18. CleanTech Categories on the Rise in Silicon Valley <ul><li>Air, Water, and Waste </li></ul><ul><li>Energy Efficiency </li></ul><ul><li>Green Building </li></ul><ul><li>Renewable Energy </li></ul><ul><ul><li>Solar </li></ul></ul><ul><ul><li>Wind </li></ul></ul><ul><ul><li>Waves </li></ul></ul><ul><ul><li>Thermal </li></ul></ul><ul><ul><li>Biofuels </li></ul></ul><ul><li>Smart Power, Smart Grid, Energy Storage </li></ul><ul><li>Transportation </li></ul>Categories Adapted from: Source: http://www.cleantechopen.com/app.cgi/content/competition/category_description
    19. 19. Venture Capital Investment Trends in Silicon Valley The bottom line: There is Scarcity in the Land of Plenty! Source: https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=historical
    20. 20. Reasons for The Venture Capital Crunch Shrinking Value of other investments reduces the amount LPs are allowed for VC funds Poor performance of most VC funds in last 10 years makes VC less attractive Disruption of investment banks make fewer trusted players to help with IPOs and M&A Public distrust requires VCs to hold startups longer to reach profitability before exit Venture Capital Funds
    21. 21. Ron Conway talks about the odds of getting funded
    22. 22. The rise of Incubators and Accelerators to help early stage entrepreneurs 2000 2002 2003 2004 2005 2006 2010 2009 2008 2001 2007 1999 NUS College in Silicon Valley Emerging Leaders Forum
    23. 23. How Entrepreneurs are Coping with the Changes in Silicon Valley <ul><li>“ Getting outside the building” to develop paying customers while developing products!!! </li></ul><ul><li>Relying on parents to bootstrap their ventures </li></ul><ul><li>Sharing info on VCs on TheFunded.com </li></ul><ul><li>Avoiding “old school VCs” – working with “young guns” </li></ul><ul><li>Joining Incubators and/or Accelerators </li></ul><ul><li>Entering multiple business plan competitions </li></ul><ul><li>Offshoring development from the outset. </li></ul>Some of these are opportunities for NUS Enterprise & NOC Alumni!
    24. 24. Examples of Trustworthy “Young Guns” in VC <ul><li>Web 2.0 and Mobile Media </li></ul><ul><li>Katherine Barr, MDV </li></ul><ul><li>Ravi Belani, DFJ </li></ul><ul><li>Chi-Hua Chien, KPCB </li></ul><ul><li>David Hornik, August </li></ul><ul><li>Mike Maples Jr., Maples </li></ul><ul><li>Ann Miura Ko, Maples </li></ul><ul><li>Sergio Monsalve, NVP </li></ul><ul><li>Jonathan Teo, Benchmark </li></ul><ul><li>Clean Technologies </li></ul><ul><li>Raj Atluru, DFJ </li></ul><ul><li>Andrew Chen, Lightspeed </li></ul><ul><li>Ira Ehrenpreis, Technology Partners </li></ul><ul><li>Warren Hogarth, Sequoia </li></ul><ul><li>K.T. Moorgat, MDV </li></ul><ul><li>Eric Straser, MDV </li></ul><ul><li>Steve Vassallo, Foundation </li></ul><ul><li>Trae Vassallo, KPCB </li></ul>Note: I do not get a referral fee! 
    25. 25. Mike Maples Jr. Talks about Learning from Failure
    26. 26. Thank You Tom Kosnik 650 450 3330 Facebook: Tom Kosnik skype: thomas.j.kosnik [email_address] Lena Ramfelt [email_address] 0733 756 012 Linkedin: Lena Ramfelt Skype: lenaramfelt
    27. 27. Appendix Myths and Paradoxes in Silicon Valley Not for presentation. Possible use in Q and A
    28. 28. Venture Capital Investment Trends in the U.S. Source: https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=historical
    29. 29. The 7 Paradoxes of Silicon Valley Silicon Valley is “ground zero” for innovation. 7 Paradoxes of Silicon Valley Paradox 1: Mountains in the Valley. Paradox 2: Academic aristocracies sing praise to meritocracy. Paradox 3: Scarcity in the land of plenty. Paradox 4: Innovation masks tradition. Paradox 5: It’s OK to fail if you shoulder the blame. Paradox 6: Long on knowledge, short on wisdom Myths about entrepreneurship in Silicon Valley The Valley is an open network. The Valley is a meritocracy. Money, talent, and other resources are abundant. It’s OK to fail! Learning fuels success in Silicon Valley. Everyone cooperates – even competitors. Paradox 7: Competitors Collaborate and Collaborators Compete.
    30. 30. Academic Aristocracies Sing Praise to Meritocracy: 2003
    31. 31. Academic Aristocracies Sing Praise to Meritocracy: 2008
    32. 32. Scarcity in the Land of Plenty The Money Talent Merry-Go-Round
    33. 33. It’s OK to fail if you learn – and shoulder the blame Myth 5: It’s OK to fail Paradox 5: It’s OK to fail if you learn - And shoulder the blame. <ul><li>How to cope with the paradox: </li></ul><ul><li>If you blame investors they won’t forgive or forget. </li></ul><ul><li>Fail fast and adapt before burning through your funding. </li></ul><ul><li>When failing remember to show grace under fire. </li></ul>
    34. 34. Do the Paradoxes of Silicon Valley apply in your Entrepreneurial Cluster? The Paradoxes of Silicon Valley No ?? Yes 1. Mountains in the Valley 2. Academic aristocracies sing praise to meritocracy 3. Scarcity in the land of plenty 4. It’s OK to fail if you learn – and shoulder the blame 5. Innovation masks tradition 6. Long on knowledge, short on wisdom 7. Competitors collaborate, collaborators compete Are there other paradoxes in your community?
    35. 35. What segment best describes you tonight? <ul><li>Raise your hand for the color that best fits you tonight: </li></ul><ul><ul><li>Blue = I have an opportunity, am looking for money and talent </li></ul></ul><ul><ul><li>Red = I have talent, am looking for the right opportunity </li></ul></ul><ul><ul><li>Green = I have money to invest (as a customer, angel, VC, etc.) </li></ul></ul><ul><ul><li>Yellow = I have other resources entrepreneurs need to grow </li></ul></ul>

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