Session 03. [alots business group] 박한진 대표 startup entry silicon valley (1)

US Market Entry (Silicon Valley)

March, 2016

Altos Business Group

4340 Campus Dr. # 215Newport Beach, CA 92603T. [email protected]

http://www.altosbusiness.com/

Business Scope

Business Consulting

Business Acceleration(Hardware Platform)

Finance Services

Marketing /Sales ChannelServices

New Venture Incubation Center September 2012 Silicon Valley & Startup

Silicon Valley : Facts

New Venture Incubation Center September 2012

• Size : 4,800 Km²

• Population : 2.9 Million• No of Hi-tech jobs: 850,000• Median household Income : $ 94,600 • 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 & Startup

Silicon Valley : Eco System


Human Resources

R & D

Idea

Capital

Law & Regulation


Silicon Valley : Culture (Good side)


•Failure : Learning Process, Learn from it!•Entrepreneurship : Dream Big!!• Network of peers & highly educated work force• Abundance of capital (VCs)• Fully run by private sectors (No Govt. involvement)• Ecosystem of lawyer, bankers, accountants• Practical & Result Driven• Quality life (beaches & mountains)

Friends & Family

22%

Angel25%

Super Angel/Mini VC

12%

VC16%

Incubator6%

Accelerator5%

Self Funded13%

Bank 1%

Silicon Valley : Startup Funding Source


65% from Institutions



Silicon Valley : VC Funds


Silicon Valley : Funding


Incubators &

Accelerators

($0-1M)

Seed Funds

Angels, Micro Angels

($1-20M)

Small VC Funds

($20-100M)

Traditional VC Funds

(>$100M)

Union Square Ventures

SoftTechSV Angel

Sequoia

Y-Combinator TechStars

Funding Process


Rise of Accelerators171 Programs Worldwide2896 Companies155 Exits ($ 1.3 Bil)$ 2.6 Bil Funding


Korean Startups Funded by Silicon Valley VCs


Sequoia Capital: $100 Mil

(2013)

Stonebridge Capital +

Insight Venture Partners : $ 100 Mil

(2011)

IMM Investment+

Primer Partners: $ 13 Mil

(2014)

Qualcomm : $1.5 Mil

(2010)

Walden International +

Storm Ventures : $ 4 Mil

(2012) Altos Ventures+

IMM Investment: $ 12 Mil

(2014)

Maverick Capital+

DCM : $ 20 Mil

(2011)


Silicon Valley can be your Death Valley !



Silicon Valley: Not a Paradise


• Cost is very high.• Result/Fact/Number Driven• You are unknown.. No friend/ No family• Language/Communication• Success in Korea is not counted!• No Loyalty !! • Fall of Angels Rise of Accelerators• Another Bubble?


Silicon Valley: Trends in 2015


• More Corporate Deals• More Incubators / Accelerators• More Investment for Early Stage Startups• More Number of Funds• More Minority Founders (including Women)


What to prepare…(for investment)


TechnologyOver Business

ModelExpandability

Good Team

Clear Goal Over Vision

Proven RecordOver Plan

Disruption Over Innovation


Doing Startup in Silicon Valley: Final Thoughts


Silicon Valley is just small part of market.

Business first!

Wealth sharing is important.

Build your own human network.

Make your company always for sale.

Failure is a vital learning process.

Be a part of community
