Part1.startup us entry overview1 박한진 2014.02.18 (BLT & RoA seminar)

Silicon Valley & Startup Feb. 2014

Altos Business Group

9272 Jeronimo Rd. #109 Irvine, CA 92612 T. 408-761-4216 www.altosbusiness.com [email protected]

http://www.altosbusiness.com/

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)


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)


Silicon Valley : Eco System

Human Resources

R & D

Idea

Capital

Law & Regulation


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


Silicon Valley : Funding Share

New Venture Incubation Center September 2012 Corporate Intro. Aug. 2013



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


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


Korean Startups Funded by Silicon Valley VCs





Success Story

Gameville USA (2006) Baseball Game : CBS Sportline (2009) Expand to Mobile 2012 : US Sales $ 25 Mil


Success Story

BilltoMobile (2008) Technology Transfer Local Fund Raising : $ 9.5 Mil 2011 : Closed deal with 4 telecom majors


Silicon Valley can be your Death Valley !


Silicon Valley: Real World


Dark Side

Lessons…


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


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