This document provides an overview and summary of changes in Silicon Valley from 2000 to 2010 based on a presentation by Tom Kosnik and Lena Ramfelt. It discusses the major players and stakeholders in Silicon Valley, how they have changed over time, trends in areas like venture capital funding, the rise of incubators and accelerators, and how entrepreneurs have adapted to challenges.

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.

3. Who is Tom Kosnik? 1970 1980 1990 2000 2005 2010 AMERICAN MANAGEMENT SYSTEMS

5. What is Silicon Valley? An entrepreneurial state of mind.

6. What is Silicon Valley? Miles of roads and too much traffic

7. What is Silicon Valley? The highest concentration of entrepreneurial high-tech companies in the world.

8. Stanford University is at Ground Zero in the Silicon Valley Cluster

9. And So is NUS College of Silicon Valley!

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!

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. 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. The stakes include… And much more… Money Time Talent Technology Customer Relationships Passion

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. 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

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. 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. Ron Conway talks about the odds of getting funded

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

25. Mike Maples Jr. Talks about Learning from Failure

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. Appendix Myths and Paradoxes in Silicon Valley Not for presentation. Possible use in Q and A

28. Venture Capital Investment Trends in the U.S. Source: https://www.pwcmoneytree.com/MTPublic/ns/nav.jsp?page=historical

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. Academic Aristocracies Sing Praise to Meritocracy: 2003

31. Academic Aristocracies Sing Praise to Meritocracy: 2008

32. Scarcity in the Land of Plenty The Money Talent Merry-Go-Round

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?