The US-Mexico Chamber of Commerce NW Chapter




                                      Itzam De Gortari
                                      TechBA-Seattle


                                      March 29, 2012


   TechBA, a Success model for
Technology Companies Going Global
 TechBA Branches




   Vancouver
                               Montreal
    Seattle
Silicon Valley       Detroit
      Phoenix                              Madrid
            Austin
Seattle
What is TechBA Seattle?
                                   Information Technologies
                                   • 90,000 employees
                                   • Puget Sound International Hub
                                   • 150 Companies
                                   • 30 billions (usd)                         Aerospace
  Biotechnology                                                                • 72,000 employees
  • 190 companies                                                              • 737 line of production
  • 16,000 employees                                                           • New 787 Dreamline
  • 10 billions in revenues                                                    • AFA Washington


       Clean Technology
       • High environmental concern                                               Film & Music
       • Clean Tech Cluster, ranks # 1                                            • 1 billion in revenues
         by number employees around                                               • 12,000 employees
         this sector
                                                                 Gaming
                                                                 Largest key players in the
                                 Logistics
                                                                 industry, 497 millions
                                 • 3rd largest shipping
                                                                 9,200 employees
                                 center in USA
ECOSYSTEM

      FEDERAL GOVERNMENT                         STATE OF WASHINGTON
                                                    • enterpriseSeattle
                                                    •  City of Bellevue
                                                    •  University of Washington
                                                    • International Trade and Economic
                                                    Development




          ASSOCIATIONS
                                        TECHBA              COMMUNITY
   •  US-Mexico Chamber of Commerce NW        • Create relationships through business not the
   •  Port of Seattle                         other way around
   • Center of Advanced Manufacturing Puget   •  Sells/business driven
   Sound                                      •  Business culture is direct
   • Venspark                                 •  Merits
   •  Private companies
TechBA Results
Created in 2005, under the mandate to provide an
environment that encourages innovation

•  150 technology companies have reached $ 160 MM usd of international
sales and $ 1 B usd combined, national and international

•  3,500 new high-value positions generated

• High Value Technology Sectors:
IT, aerospace, automotive, life sciences (biotechnology, medical devices),
 energy, high manufacturing
Facts of TechBA Seattle
•  45 Mexican companies have participated in TechBA Seattle (2010-2011)

•  10 companies have been incorporated in the US

•  2 companies starting patent registration

•  4 companies have hired US nationals

•  15 Local Consultants / Coaches

•  12 work spaces available in our offices

•  5 strategic partners: City of Bellevue, enterpriseSeattle,
  Trade Development Alliance, US-Mexico Chamber of Commerce NW,
  and Venspark
TechBA Acceleration Program
      BootCamp	
  




      Pre-­‐accelera)on	
                Acelera)on	
  1	
  and	
  	
             Acelera)on	
  2	
  	
  	
  	
  
                                         	
                                       	
  
•  Customer
generation                            • Marketing Plan
•  Hypothesis                         • Implementation                        • Sales increase
definition             Business	
     • Sales increase
                        Case	
  
•  Smoke test
•  MVP


      5	
  weeks	
                              8	
  to	
  12	
  months	
                12	
  months	
  
BootCamp 2012




10 Companies: VG, Mobile and Web app’s

5 weeks                                       In two mayor steps

Objective: Place a product in the market
Lean Startup




Learning process
6	
  Accelera:on	
  Pillars
                                                                        	
  

                           Product	
  


      Distribu:on	
                       Market	
  
                                                             Elevator	
  Pitch	
  
                                                             Business	
  Case	
  
                                                             Opera:onal	
  Plan	
  
  Business	
  Model	
                     Technology	
  


                          Resources	
  

Quantify and
Replicate
BootCamp
Closure …
BootCamp 2012

Before and after …
MVP:	
  minimum	
  viable	
  	
  product
                                       	
  
BootCamp 2012
other Outcomes …
Quick summary



                          Persona
                          Hypothesis
               Customer   Smoke test
Lean Startup              MVP
                          Metrics



                          6 pillars
                          Get specific
 Venspark /    Company    Make decision
 TechBA                   Take Actions
Companies Portfolio 2009

                  3.23%	
  
                                                               Aerospace
                                                             Aeronau:co	
  
      4.03%	
  
                                                              Automotive
                                                             Automotriz	
  
                         4.84%	
  
                                                             Biotecnología	
  
                                                              Biotechnology
                                     4.03%	
     0.81%	
  
                                                              BPO
                                                             BPO	
  
                                                              Energy
                                                             Energía	
  
                                                             MANUFACTURA	
  
                                                              Manufacturing
                                                              Mining
                                                             Mineria	
  
   80.65%	
  
                                                             Quimica	
  
                                                              Chemicals

                                                             TIC	
  
                                                               ITC
Indicators




Source: http://www.businessinsider.com/the-future-of-mobile-deck-2012-3#-1
Indicators




Source: http://www.businessinsider.com/the-future-of-mobile-deck-2012-3#-1
TechBA Principles
• Technology intensive business and concentrated core business

•  Well established structure with a clear vision that permeates at all levels
of the organization

•  As VC’s, we select people with DNA of an entrepreneur

•  Product is important but excellence in management makes it big

•  Competitive advantages: find what makes you better than
anyone else in the market

•  Test the market as soon as possible and be ready to adapt, test your alpha
 with friends and your beta with customers

•  Self assessment
Context	
  
The	
  company	
  develops	
  applica:ons	
  for	
  mobile	
  phones	
  for	
  Android	
  plaVorms,	
  iOS,	
  Blackberry	
  and	
  Windows	
  7	
  
	
  

Company	
  Achievements	
  under	
  the	
  TechBA	
  program	
  
	
  

	
  


                                                                                 $
	
  
	
  
	
                                                                                              . Sales and Growth
	
  
	
  
Barriers	
                                       1 out of 6 …
Publisher	
  dependent	
  market	
  
High	
  cost	
  of	
  distribu:on	
  
	
  
                                                                                   	
  
                                                                                   	
  
 
	
  

Context	
  
Scio	
  is	
  an	
  Interna:onal	
  full-­‐service	
  consul:ng	
  firm	
  that	
  specializes	
  in	
  so^ware	
  development.	
  	
  
Provides	
  outsourced	
  product	
  development	
  and	
  IT	
  services	
  for	
  ISVs	
  and	
  businesses	
  with	
  internet-­‐based	
  services	
  and	
  applica:ons
                                                                                                                                                                          	
  
that	
  support	
  on-­‐demand	
  businesses	
  and	
  So^ware	
  as	
  a	
  Service	
  (SaaS)	
  specializing	
  in	
  Microso^	
  technologies.	
  

	
  
Company	
  Achievements	
  under	
  the	
  TechBA	
  Program	
  
•  Microso^	
  Cer:fied	
  Partner	
  as	
  Vendor	
  ID	
  in	
  less	
  than	
  3	
  months	
  
•  Contract	
  to	
  develop	
  training	
  programs	
  for	
  Microso^	
  Azure	
  

	
  
Barriers	
  
•      Vendor	
  consolida:on	
  
•      Saturated	
  market	
  (China	
  and	
  India)	
  
•      Market	
  long	
  sales	
  cycle	
  
•      Customer	
  acquisi:on	
  

                                                                                              	
  
                                                                                              	
  
Context	
  
Kaxan	
  is	
  a	
  company	
  conformed	
  by	
  more	
  than	
  100	
  people,	
  focused	
  on	
  intellectual	
  property	
  development,	
  mainly	
  through	
  films,	
  
animated	
  series	
  and	
  video	
  games	
  produced	
  by	
  its	
  two	
  divisions:	
  Kaxan	
  Studios	
  and	
  Kaxan	
  Games.	
  	
  	
  

	
  
Company	
  Achievements	
  under	
  the	
  TechBA	
  program	
  
•      Company’s	
  exposure	
  in	
  the	
  media.	
  Promo:on	
  of	
  Kaxan	
  Games	
  and	
  achievements	
  in	
  the	
  local	
  and	
  interna:onal	
  media:	
  Kaxan	
  
       Developed	
  3	
  iOS	
  games	
  published	
  and	
  released	
  by	
  Chilingo:	
  Taco	
  Master,	
  Finger	
  Shoes	
  and	
  Torture	
  Bunny.	
  Taco	
  Master	
  is	
  the	
  #1	
  
       downloaded	
  app	
  in	
  the	
  iTunes	
  store	
  in	
  Mexico	
  on	
  iPhone	
  and	
  iPad	
  (ahead	
  of	
  such	
  brands	
  as	
  Plants	
  vs.	
  Zombies	
  and	
  Angry	
  Birds).	
  
•      Taco	
  Master	
  is	
  one	
  of	
  the	
  top	
  100	
  Arcade	
  games	
  in	
  the	
  US	
  iTunes	
  App	
  Store	
  


Barriers	
  
•      Corporate	
  governance	
  
•      Licensing	
  process	
  
•      Limited	
  resources	
  for	
  films	
  
	
  
                                                                                                      	
  
                                                                                                      	
  
 
	
  
Context	
  
Xibalba	
   is	
   an	
   independent	
   company	
   with	
   a	
   global	
   vision	
   devoted	
   to	
   crea:ng	
   innova:ve	
   games	
   by	
   using	
   the	
   latest
                                                                                                                                                                                	
  
gaming	
  technology	
  to	
  achieve	
  the	
  highest	
  quality	
  standards	
  

Company	
  Achievements	
  under	
  the	
  TechBA	
  Program	
  
•  Award	
   winning	
   Mexican	
   company	
   that	
   has	
   developed	
   the	
   game	
   Icebreakers,	
   offered	
   for	
   sale	
   via	
   digital	
   distribu:on:	
   Intel,          	
  
   Desura,	
  OnLive,	
  direct2Drive	
  
•  Icebreakers	
  was	
  awarded	
  the	
  :Level	
  Up	
  2010”	
  awards	
  for	
  Character	
  Design	
  and	
  Best	
  Laptop	
  Game”	
  from	
  Intel	
  
•  Has	
   secured	
   their	
   first	
   extended	
   development	
   contract	
   with	
   a	
   major	
   mobile	
   games	
   indy	
   developer	
   publisher	
   to	
   assist	
   in	
   the	
  
   development	
  of	
  new	
  and	
  exis:ng	
  F2P	
  (Free	
  to	
  Play)	
  mobile	
  games	
  for	
  iOS	
  and	
  Android.	
  
•  Development	
   of	
   the	
   value	
   proposi:on	
   of	
   Xibalba	
   Studios	
   for	
   Games	
   Connec:on	
   in	
   Lyon	
   France	
   to	
   be	
   used	
   with	
   various       	
  
   publishers	
  
•  Poten:al	
  contract	
  with	
  Big	
  Fish	
  Games	
  to	
  publish	
  future	
  :tles	
  

Barriers	
  
Publisher	
  dependent	
  market	
  
High	
  cost	
  of	
  distribu:on	
  

	
  
	
  
	
  
 
Poten)al	
  Success	
  Case	
  
	
  
Context	
  
Anfexi	
   is	
   a	
   company	
   that	
   provides	
   so^ware	
   solu:ons	
   for	
   the	
   loan	
   and	
   credit	
   industry.	
   It	
   has	
   20	
   specialized	
   products	
   with	
   a	
   scope	
  
that	
  goes	
  from	
  the	
  lead	
  genera:on/loan	
  origina:on	
  to	
  the	
  loan	
  management/collec:on	
  and	
  recovery	
  
	
  

Company	
  Achievements	
  under	
  the	
  TechBA	
  Program	
  
•      Anfexi	
  refined	
  its	
  business	
  strategy	
  
•      Found	
  and	
  got	
  in	
  contact	
  with	
  poten:al	
  financial	
  services	
  ins:tu:ons	
  
•      Closed	
  a	
  contract	
  with	
  Sco:a	
  Bank	
  
•      Is	
  nego:a:ng	
  a	
  poten:al	
  partnership	
  with	
  a	
  partner	
  to	
  provide	
  services	
  to	
  credit	
  unions	
  in	
  the	
  U.S.	
  

	
  
Barriers	
  
•  Lenders	
  have	
  the	
  need	
  to	
  sell	
  more	
  loans	
  and	
  reduce	
  the	
  cost	
  of	
  manage	
  them.	
  	
  

	
  
	
  
 
Poten)al	
  Success	
  Case	
  
	
  
Context	
  
Locomocion	
  3D	
  is	
  a	
  Mexican	
  company	
  that	
  provides	
  Mo:on	
  Controlled	
  Camera	
  Services	
  and	
  recently	
  it	
  has	
  been	
  involved	
  in	
  game	
  
development	
  through	
  the	
  planning	
  of	
  a	
  virtual	
  studio	
  

	
  
Company	
  Achievements	
  under	
  the	
  TechBA	
  Program	
  
•  Development	
   of	
   a	
   new	
   and	
   improved	
   business	
   plan	
   including	
   sales	
   materials	
   focusing	
   on	
   key	
   ac:ons	
   to	
   enabling	
   partnership	
  
   opportuni:es	
  
•  Locomocion	
  3D	
  had	
  a	
  business	
  mee:ng	
  with	
  Microso^	
  having	
  an	
  excellent	
  outcome	
  with	
  the	
  purpose	
  of	
  using	
  Kinect	
  in	
  B2B              	
  
   applica:ons.	
  
•  Iden:fied	
  poten:al	
  partners	
  and	
  engagement	
  for	
  company’s	
  sales	
  exten:on	
  opportuni:es	
  



Barriers	
  
Publisher	
  dependent	
  market	
  
High	
  cost	
  of	
  distribu:on	
  

	
  
	
  
	
  
 
Poten)al	
  Success	
  Case	
  
	
  
Context	
  
Kokonut	
  Studio	
  is	
  an	
  independent	
  and	
  crea:ve	
  Mexican	
  game	
  studio	
  driven	
  by	
  their	
  desire	
  to	
  innovate	
  mobile	
  experiences	
  

	
  
Company	
  Achievements	
  under	
  the	
  TechBA	
  Program	
  
•  Ability	
  to	
  execute	
  a	
  competent	
  product	
  development	
  in	
  the	
  video	
  games	
  sector	
  
•  Development	
  and	
  valida:on	
  of	
  a	
  new	
  posi:oning	
  around	
  “Context	
  Based	
  Games”	
  
•  Access	
  to	
  10	
  major	
  poten:al	
  publishers	
  or	
  distribu:on	
  partners	
  
•  Nego:a:ons	
  with	
  distribu:on	
  partners	
  

Barriers	
  
Publisher	
  dependent	
  market	
  
High	
  cost	
  of	
  distribu:on	
  

	
  
	
  

	
  
	
  
	
  

	
  
Take away


•  Accelerator model successful for economic development based on
 push strategies: especial emphasis in sales

• People, structure and operations

•  Facilitators, based on consultants promoting:
     • Key business relationships in the new market

• Hubs: education, political structure that understands business needs and
     Financial institution willing to invest in innovation
Thanks

TechBA Seattle- USMCOC NW March 2012

  • 1.
    The US-Mexico Chamberof Commerce NW Chapter Itzam De Gortari TechBA-Seattle March 29, 2012 TechBA, a Success model for Technology Companies Going Global
  • 2.
     TechBA Branches Vancouver Montreal Seattle Silicon Valley Detroit Phoenix Madrid Austin
  • 3.
    Seattle What is TechBASeattle? Information Technologies • 90,000 employees • Puget Sound International Hub • 150 Companies • 30 billions (usd) Aerospace Biotechnology • 72,000 employees • 190 companies • 737 line of production • 16,000 employees • New 787 Dreamline • 10 billions in revenues • AFA Washington Clean Technology • High environmental concern Film & Music • Clean Tech Cluster, ranks # 1 • 1 billion in revenues by number employees around • 12,000 employees this sector Gaming Largest key players in the Logistics industry, 497 millions • 3rd largest shipping 9,200 employees center in USA
  • 4.
    ECOSYSTEM FEDERAL GOVERNMENT STATE OF WASHINGTON • enterpriseSeattle •  City of Bellevue •  University of Washington • International Trade and Economic Development ASSOCIATIONS TECHBA COMMUNITY •  US-Mexico Chamber of Commerce NW • Create relationships through business not the •  Port of Seattle other way around • Center of Advanced Manufacturing Puget •  Sells/business driven Sound •  Business culture is direct • Venspark •  Merits •  Private companies
  • 5.
    TechBA Results Created in2005, under the mandate to provide an environment that encourages innovation •  150 technology companies have reached $ 160 MM usd of international sales and $ 1 B usd combined, national and international •  3,500 new high-value positions generated • High Value Technology Sectors: IT, aerospace, automotive, life sciences (biotechnology, medical devices), energy, high manufacturing
  • 6.
    Facts of TechBASeattle •  45 Mexican companies have participated in TechBA Seattle (2010-2011) •  10 companies have been incorporated in the US •  2 companies starting patent registration •  4 companies have hired US nationals •  15 Local Consultants / Coaches •  12 work spaces available in our offices •  5 strategic partners: City of Bellevue, enterpriseSeattle, Trade Development Alliance, US-Mexico Chamber of Commerce NW, and Venspark
  • 7.
    TechBA Acceleration Program BootCamp   Pre-­‐accelera)on   Acelera)on  1  and     Acelera)on  2             •  Customer generation • Marketing Plan •  Hypothesis • Implementation • Sales increase definition Business   • Sales increase Case   •  Smoke test •  MVP 5  weeks   8  to  12  months   12  months  
  • 8.
    BootCamp 2012 10 Companies:VG, Mobile and Web app’s 5 weeks In two mayor steps Objective: Place a product in the market
  • 9.
  • 10.
    6  Accelera:on  Pillars   Product   Distribu:on   Market   Elevator  Pitch   Business  Case   Opera:onal  Plan   Business  Model   Technology   Resources   Quantify and Replicate
  • 11.
  • 12.
  • 13.
    MVP:  minimum  viable    product  
  • 14.
  • 15.
    Quick summary Persona Hypothesis Customer Smoke test Lean Startup MVP Metrics 6 pillars Get specific Venspark / Company Make decision TechBA Take Actions
  • 16.
    Companies Portfolio 2009 3.23%   Aerospace Aeronau:co   4.03%   Automotive Automotriz   4.84%   Biotecnología   Biotechnology 4.03%   0.81%   BPO BPO   Energy Energía   MANUFACTURA   Manufacturing Mining Mineria   80.65%   Quimica   Chemicals TIC   ITC
  • 17.
  • 18.
  • 20.
    TechBA Principles • Technology intensivebusiness and concentrated core business •  Well established structure with a clear vision that permeates at all levels of the organization •  As VC’s, we select people with DNA of an entrepreneur •  Product is important but excellence in management makes it big •  Competitive advantages: find what makes you better than anyone else in the market •  Test the market as soon as possible and be ready to adapt, test your alpha with friends and your beta with customers •  Self assessment
  • 21.
    Context   The  company  develops  applica:ons  for  mobile  phones  for  Android  plaVorms,  iOS,  Blackberry  and  Windows  7     Company  Achievements  under  the  TechBA  program       $       . Sales and Growth     Barriers   1 out of 6 … Publisher  dependent  market   High  cost  of  distribu:on        
  • 22.
        Context   Scio  is  an  Interna:onal  full-­‐service  consul:ng  firm  that  specializes  in  so^ware  development.     Provides  outsourced  product  development  and  IT  services  for  ISVs  and  businesses  with  internet-­‐based  services  and  applica:ons   that  support  on-­‐demand  businesses  and  So^ware  as  a  Service  (SaaS)  specializing  in  Microso^  technologies.     Company  Achievements  under  the  TechBA  Program   •  Microso^  Cer:fied  Partner  as  Vendor  ID  in  less  than  3  months   •  Contract  to  develop  training  programs  for  Microso^  Azure     Barriers   •  Vendor  consolida:on   •  Saturated  market  (China  and  India)   •  Market  long  sales  cycle   •  Customer  acquisi:on      
  • 23.
    Context   Kaxan  is  a  company  conformed  by  more  than  100  people,  focused  on  intellectual  property  development,  mainly  through  films,   animated  series  and  video  games  produced  by  its  two  divisions:  Kaxan  Studios  and  Kaxan  Games.         Company  Achievements  under  the  TechBA  program   •  Company’s  exposure  in  the  media.  Promo:on  of  Kaxan  Games  and  achievements  in  the  local  and  interna:onal  media:  Kaxan   Developed  3  iOS  games  published  and  released  by  Chilingo:  Taco  Master,  Finger  Shoes  and  Torture  Bunny.  Taco  Master  is  the  #1   downloaded  app  in  the  iTunes  store  in  Mexico  on  iPhone  and  iPad  (ahead  of  such  brands  as  Plants  vs.  Zombies  and  Angry  Birds).   •  Taco  Master  is  one  of  the  top  100  Arcade  games  in  the  US  iTunes  App  Store   Barriers   •  Corporate  governance   •  Licensing  process   •  Limited  resources  for  films        
  • 24.
        Context   Xibalba   is   an   independent   company   with   a   global   vision   devoted   to   crea:ng   innova:ve   games   by   using   the   latest   gaming  technology  to  achieve  the  highest  quality  standards   Company  Achievements  under  the  TechBA  Program   •  Award   winning   Mexican   company   that   has   developed   the   game   Icebreakers,   offered   for   sale   via   digital   distribu:on:   Intel,   Desura,  OnLive,  direct2Drive   •  Icebreakers  was  awarded  the  :Level  Up  2010”  awards  for  Character  Design  and  Best  Laptop  Game”  from  Intel   •  Has   secured   their   first   extended   development   contract   with   a   major   mobile   games   indy   developer   publisher   to   assist   in   the   development  of  new  and  exis:ng  F2P  (Free  to  Play)  mobile  games  for  iOS  and  Android.   •  Development   of   the   value   proposi:on   of   Xibalba   Studios   for   Games   Connec:on   in   Lyon   France   to   be   used   with   various   publishers   •  Poten:al  contract  with  Big  Fish  Games  to  publish  future  :tles   Barriers   Publisher  dependent  market   High  cost  of  distribu:on        
  • 25.
      Poten)al  Success  Case     Context   Anfexi   is   a   company   that   provides   so^ware   solu:ons   for   the   loan   and   credit   industry.   It   has   20   specialized   products   with   a   scope   that  goes  from  the  lead  genera:on/loan  origina:on  to  the  loan  management/collec:on  and  recovery     Company  Achievements  under  the  TechBA  Program   •  Anfexi  refined  its  business  strategy   •  Found  and  got  in  contact  with  poten:al  financial  services  ins:tu:ons   •  Closed  a  contract  with  Sco:a  Bank   •  Is  nego:a:ng  a  poten:al  partnership  with  a  partner  to  provide  services  to  credit  unions  in  the  U.S.     Barriers   •  Lenders  have  the  need  to  sell  more  loans  and  reduce  the  cost  of  manage  them.        
  • 26.
      Poten)al  Success  Case     Context   Locomocion  3D  is  a  Mexican  company  that  provides  Mo:on  Controlled  Camera  Services  and  recently  it  has  been  involved  in  game   development  through  the  planning  of  a  virtual  studio     Company  Achievements  under  the  TechBA  Program   •  Development   of   a   new   and   improved   business   plan   including   sales   materials   focusing   on   key   ac:ons   to   enabling   partnership   opportuni:es   •  Locomocion  3D  had  a  business  mee:ng  with  Microso^  having  an  excellent  outcome  with  the  purpose  of  using  Kinect  in  B2B   applica:ons.   •  Iden:fied  poten:al  partners  and  engagement  for  company’s  sales  exten:on  opportuni:es   Barriers   Publisher  dependent  market   High  cost  of  distribu:on        
  • 27.
      Poten)al  Success  Case     Context   Kokonut  Studio  is  an  independent  and  crea:ve  Mexican  game  studio  driven  by  their  desire  to  innovate  mobile  experiences     Company  Achievements  under  the  TechBA  Program   •  Ability  to  execute  a  competent  product  development  in  the  video  games  sector   •  Development  and  valida:on  of  a  new  posi:oning  around  “Context  Based  Games”   •  Access  to  10  major  poten:al  publishers  or  distribu:on  partners   •  Nego:a:ons  with  distribu:on  partners   Barriers   Publisher  dependent  market   High  cost  of  distribu:on              
  • 28.
    Take away •  Acceleratormodel successful for economic development based on push strategies: especial emphasis in sales • People, structure and operations •  Facilitators, based on consultants promoting: • Key business relationships in the new market • Hubs: education, political structure that understands business needs and Financial institution willing to invest in innovation
  • 29.