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Starting a business in Silicon Valley


Published on

- Silicon Valley Story
- How to calculate a good business deal (entrepreneur vs investor)
- Technology Trends

Published in: Business, Economy & Finance
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Starting a business in Silicon Valley

  1. 1. Starting a business in Silicon Valley Ricard Garriga, entrepreneur at YouNoodle Inc.
  2. 2. Silicon Valley start-up ecosystem Where?
  3. 3. San Francisco, CA
  4. 4. Silicon Valley
  5. 5. 1950 American government believes in the University tech transfer centres
  6. 6. What’s next? BioTech Apps mobile Social networks CleanTech 2010 2030 Internet Personal Computers Hardware Army Agriculture 1940 1950 1960 1970 1980 1990 2000 2020 Sectorial Silicon Valley Evolution
  7. 7. Market Sector, Entrepreneurial Cultura Corporations company Quality of life Infrastructures Investors Talent Ecosystem
  8. 8. Entrepreneurial Universities
  9. 9. The most successful Venture Capitalists in the world, are on the same street
  10. 10. Big Startup offices
  11. 11. Startup offices
  12. 12. Value // Beyond the Start-Up Cycle
  13. 13. Investment // Beyond the Start-Up Cycle
  14. 14. $ M&A or IPO VC Serie C VC Serie B VC Serie A Seed Business Angels FFF Time Investment strategy
  15. 15. Start-up Valuation
  16. 16. Silicon Valley start-up ecosystem Tech Trends 2012 Adele Burnes Campaigns Manager
  17. 17. Investment Trends in Deals US Venture Capital Investments by Stage of Development Q1 2012 (Number of Deals) 53 Seed $141 million 208 Early Stage $ 1,612 million 290 207 Expansion $1,714 million Later Stage $2,283 million
  18. 18. Investment Trends by Industry US Venture Capital Investments by Industry Q1 2012 Healthcare Services Electronics/Instrumentation Business Products and Services Retailing/Distribution Computers and Peripherals Financial Services Networking and Equipment Telecommunications Semiconductors IT Services Media and Entertainment Consumer Products and Services Medical Devices and Equipment Industrial/Energy Biotechnology Software 0 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 1,200,000,000 1,400,000,000 1,600,000,000 1,800,000,000
  19. 19. Devices Devices are the technology and tools that we all use to connect to the internet and each other, such as mobile phones, computers and tablet PCs. Trends in devices are towards increased portability and connectivity where ever you go.
  20. 20. Devices People are increasingly connecting to the internet from their mobile devices
  21. 21. Devices
  22. 22. Devices
  23. 23. These are some of the leading tech trends today. Social Location – when we mash up social networking and your location. When your mobile device knows where you are, where your friends are, and what they are doing.
  24. 24. Social networks have become part of the fabric of society. As a result there are many uses and applications that leverage the desire for social connectivity and media and knowledge sharing through our devices
  25. 25. Social Music Sharing Pandora • Create your own stations and share them with your friends Spotify • Access your music collection from anywhere • See what your friends are listening to – Facebook 2011 • Raised $100 Million in June 2011 • Friends DJ for each other • Raised $7 Million in Sept 2011
  26. 26. Peer to Peer Knowledge Sharing Quora • Q&A site with peer reviewed responses • Launched in 2010 and now has 3 million monthly uniques • Raised $50 million in May 2012 Stack Overflow • Community knowledge exchange for programmers • Raised $12M Series B funding in 2011 Formspring • Find out more about your friends by asking and responding to interesting questions. • Raised $11.5M in Jan 2011
  27. 27. Social Currency Klout • Measuring your reach on on the social graph • Raised $8.5 million in Jan 2011 and then $30 million in Jan 2012 Kred • Measures influence in online communities connected by interest • Launched in fall 2011 PayParrot • Tweet and social reach as a form of payment using • Allows companies to sell subscriptions based on users tweeting • Incubating in Start-Up Chile
  28. 28. Social Media Trends Identity will become embedded in your devices Online sharing will become embedded into your media life Location will become embedded into all activities
  29. 29. With the increased usage of GPS enabled smartphones, devices have the ability to know your location and make recommendations of local deals. In addition group buying and local deals are emerging in many niche areas.
  30. 30. Group Buying Groupon • Deals when a group buys the commits to purchase • $12.8 Billion Valuation Living Social • Deals when a group buys the commits to purchase • Raised $176 million in 2011 TicketMonster • Acquired by Living Social in July 2011 for $350 million
  31. 31. Local Deals Savored • Local restaurant deals • Raised $3 million in 2010 Placecast • Mobile notifications of local deals GigWalk • Turn phone into mobile workforce, localized information request • Founded in August 2010, and raised $1.7 million in May 2011
  32. 32. Niche Marketplaces Mindful Meats is an marketplace for local grass fed organic meats Lulan Artisans is a marketplace for artfully crafted and produced products Etsy is a very popular online marketplace where anyone can buy and sell all things handmade
  33. 33. With the combined functionality of smartphones, an ecosystem of applications has emerged, with many more possibilities ahead. Camera Internet Music Video Applications email Wifi and 3G GPS
  34. 34. Mobile Photo Apps Color • Photo sharing with people in proximity • Raised $41 Million in March 2011 Sincerely • Easily send real photos in the mail from your phone • Raised $3 Million seed funding in Oct 2011 Instagram • Photo sharing with filters • Founded in 2012, Raised $57 Million in 2012 • Acquired by Facebook for $1 Billion
  35. 35. Education Apps (solving your own problems) Find My Car • App to help you locate your parked car • Developed by student in summer – in 6 months over 2Million downloads iStanford - Blackboard • App with school information: maps, courses, events • Developed by students and acquired by Blackboard for $8million right after student graduated Courserank • Site to ranks your professors but with controlled access by current students • Developed by students and acquired by Chegg for $15million when students graduated
  36. 36. Text Based Apps (often targeting and emerging from developing countries) Juntos Finanzas • Manage spending and finances using SMS • Text spending and receive a paper report • Winner of Stanford BASES E-Challenge 2011 Harass Map • Report abuse or harassment anonymously using SMS • Gives a voice to marginalized and informs public of dangerous areas Patatat • Simple group texting service allowing a group to communicate and mobilize using text messages
  37. 37. Mobile and Smartphone Trends NFC – Near Field Communication, wireless identification 3D Screens Tactile feedback screens Solar Powered smartphones
  38. 38. Cloud Cloud computing is a model for enabling convenient and ondemand access to a shared pool of configurable resources (networks, servers, applications and services) that can be readily and rapidly scaled and serviced.
  39. 39. Cloud Storage Dropbox • Access your files from any device using cloud storage • Raised $250 Million in Oct 2011 at $4 Billion Valuation • Online file sharing, content management and collaboration • Raised $125 Million in July 2012 Bitcasa • Provides secure, unlimited storage on any device, files are streamed and load more quickly. • Raised $7 million in June 2012
  40. 40. Cloud Hosting Amazon Web Services • Cloud hosting and storage for any site. Computing platform in the cloud Azure • Create, deploy and manage web apps in the cloud Heroku • Application hosting platform • Bought by Salesforce in 2011 for $212 Million
  41. 41. Gaming and Gamification Online gaming through social networks has gained massive traction and attracted significant capital investment. Meanwhile the gamification of education, consumer experiences and other new arenas are hooking users in a new and more engaging user experience.
  42. 42. Gaming and Gamification Zynga is a successful social gaming network. Raised $1 billion in funding thru 6 rounds Khan Academy provides video education, increasing the interactiveness and gamification of education With Foursquare, members note their locations with a mobile phone and receive badges for repeat check-ins, gamifying the purchasing experience. Raised $50 million in 2011 with over 15 million users
  43. 43. Travel Interestingly there are a bunch of new travel sites that have raised significant funding in the last year. These travel sites are innovating on traditional travel, presenting data more effectively and accessing new markets.
  44. 44. Travel Sites Airbnb is a global network of accommodations offered by locals. Raised $112 Million, Valued at $1 billion+ Cruisewise aggregates data from many different cruise providers to make online cruise shopping and booking easier. Hipmunk is a travel booking site with improved data visualization. Raised $5.22 million since 2010. Ostrovok is a hotels focused online travel site for Russian consumers. Raised $13.6 million in 2011
  45. 45. Utilizing the Crowd There is a movement towards utilizing the the large number of people online (the crowd) to source work, make design decisions, raise funding and many other services.
  46. 46. Crowd-Sourcing LoudSauce • Crowd fund ad space for your favorite campaigns on TV, billboards and other ad spaces AdsByMe • Crowdsourced company slogans and analytics of most successful campaigns Threadless • T-shirt designs submitted by users, chosen by community of users and sold online.
  47. 47. Crowd-Sourcing Contestification Kaggle is a platform for data prediction competitions. Raised $11 Million in Nov 2011 Contestify is a platform for running your online contests or sweepstakes Innocentive is a challenge driven innovation approach that leverages open innovation and crowdsourcing to help organizations solve pressing challenges.
  48. 48. Crowd-funding Kickstarter is a platform to allow anyone to start a campaign to raise money for a project from their community SoMoLend is a peer lending platform, where borrows can create profiles, and anyone can lend money and make interest Raised $1.7 Million in May 2012 Crowdfunder allows businesses to gather funding from community to launch business. Launched in Dec 2011 and Raised $400K in Seed funding in May 2012 IndieGogo is a global crowd funding platform for any type of campaign from creative to social Raised $15 Million in June 2012
  49. 49. Resources Tech Blogs: Investment Blogs: • • • • • • • • • • • • • • • • • Tech podcast •
  50. 50. Thank you!! Ricard Garriga and Adele Burnes @YouNoode @RicardGarriga