Silicon Valley & Startup Feb. 2014
Altos Business Group
9272 Jeronimo Rd. #109 Irvine, CA 92612 T. 408-761-4216 www.altosbusiness.com [email protected]
New Venture Incubation Center September 2012
Altos Business Group
Feb. 2014
Altos Business Group (“ALTOSBIZ”) is an US based Korean-American management and business consulting firm specialized in facilitating business relationships between Korean and US companies.
ALTOSBIZ provides Korean companies with resources and in-depth knowledge of US market, business cultures and practical help on how to adapt to, and function in US business environments.
Silicon Valley: Map
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : Facts
• Size : 4,800 Km²
• Population : 2.9 Million • No of Hi-tech jobs: 850,000 • Median household Income : $ 88,000 • Asian Population : App. 30% • Koreans in Silicon Valley : App. 40 ~ 50K • More than 1,000 High Tech Company HQs • 22% of US exports ($334 Trillion)
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : Waves of Innovation
1st Wave : Defense
(HP, Varian)
1930 1940
1960
1950
1980
1970
2000
1990
2010
2nd Wave : IC
(Fairchild, Intel)
3rd Wave : PC
(Apple, Silicon Graphics)
4th Wave : Internet, Web
(Netscape, Yahoo,
Amazon, Google)
5th Wave : Mobile, SNS
(Facebook, Groupon)
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : Eco System
Human Resources
R & D
Idea
Capital
Law & Regulation
New Venture Incubation Center September 2012 Feb. 2014
Friends & Family
22%
Angel 25%
Super Angel/Mini VC
12%
VC 16%
Incubator 6%
Accelerator 5%
Self Funded 13%
Bank 1%
Silicon Valley : Startup Funding Source
65% from Institutions New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : VC Funds
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : Funding Share
New Venture Incubation Center September 2012 Corporate Intro. Aug. 2013
New Venture Incubation Center September 2012 Feb. 2014
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : Venture Capital Financing 2012
TOTAL Amount $ 11.2 Billion
Median Valuation $ 18.0 Million
Median Funding Size $ 3.7 Million
Number of IPO 16
Median IPO Valuation $ 78.4 Million
Number of M & A 128
Median M & A Price $ 54.0 Million
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley : Funding
Angels &
Incubators
($0-10M)
Seed Funds
($10-50M)
Small VC Funds
($50-250M)
Traditional VC Funds
(>$250M)
Union Square Ventures First Round Capital
SoftTech Garage Tech Ventures
Benchmark Sequoia
Y-Combinator TechStars
FF Angel
FF II
FF I
Funding Process
New Venture Incubation Center September 2012 Feb. 2014
Korean Startups Funded by Silicon Valley VCs
New Venture Incubation Center September 2012 Feb. 2014
New Venture Incubation Center September 2012 Feb. 2014
New Venture Incubation Center September 2012 Feb. 2014
New Venture Incubation Center September 2012 Feb. 2014
Success Story
Gameville USA (2006) Baseball Game : CBS Sportline (2009) Expand to Mobile 2012 : US Sales $ 25 Mil
New Venture Incubation Center September 2012 Feb. 2014
Success Story
BilltoMobile (2008) Technology Transfer Local Fund Raising : $ 9.5 Mil 2011 : Closed deal with 4 telecom majors
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley can be your Death Valley !
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley: Real World
New Venture Incubation Center September 2012 Feb. 2014
Dark Side
Lessons…
New Venture Incubation Center September 2012 Feb. 2014
Silicon Valley: Not a Paradise
• Number of jobs is still declining in SV. • Silicon Valley is a small part of the market. • Cost is very high. • Data over insight • You are unknown.. No friend/ No family • Language • Success in Korea is not counted. • Short term result oriented. • Identical incubators & accelerators with cold mind • Fall of Angels
New Venture Incubation Center September 2012 Feb. 2014
Doing Startup in Silicon Valley: Final Thoughts
Think collaboratively!
Think globally but act locally!
Think big!
Wealth sharing is important.
Build your own human network.
Make your company always for sale.
Failure is a vital learning process.
Work hard!!! Play hard!!!! New Venture Incubation Center September 2012 Feb. 2014