Preso provided to startups in Madrid
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US Tech/VC Overview Shai Goldman Silicon Valley Bank [email protected] Twitter: @shaig Presentation available at slideshare.net Nov 30, 2010 1
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As part of my visit to Spain visiting with startups, I provided this presentation as an overview of the US tech/VC ecosystem
Transcript of Preso provided to startups in Madrid
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US Tech/VC Overview
Shai GoldmanSilicon Valley [email protected]: @shaigPresentation available at slideshare.net
Nov 30, 2010
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Silicon Valley Bank Venture Debt Macro Overview Less VC $ Super Angel / Micro VC $ Corporate VC $ Less interest in cleantech, life science, semi More interest in software More M&A and Less IPO
Topics
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HQ in Bay Area, California – Est. 1983 Technology, Venture Capital, Wine US, UK, Israel, China, India 10,000 technology companies are clients 50%+ of VCs backed startups are clients Commercial Bank (Lending, Investments, Valuations,
FX)
Silicon Valley Bank
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Venture Debt does not replace Venture Capital Augments Series A round Typically used for extending run way Series A round -> 18 months + Venture Debt -> 24 months Hit additional milestones Higher valuation on Series B Ex: $5M Series A x 20% = $1M Venture Debt Pricing (equity/warrants + interest)
Venture Debt
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NASDAQ (a US public stock market)
1995 2000 2001 2007 2008 20100
1000
2000
3000
4000
5000
6000
1052
5000
1500
2800
1300
2534
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IPOs (Initial Public Offerings on US Markets)
2000 2004 2005 2006 2007 2008 2009 20100
50
100
150
200
250
300
350
400350
9457
5786
6 1240
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1995 2000 2007 2010 2011$0
$20
$40
$60
$80
$100
$120
$7
$100
$35
$22 $22?
VC investments ($US Billion)
Less VC $ (amount invested by US VCs)
Per PWC MoneyTree Report
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10 year returns = negative (below 0%)* VCs target a 3X return on fund, 15%+ annual return Less interest by their investors i.e. Limited Partners (LPs) SWF (Sovereign Wealth Funds) are showing increased
interest Exits have decreased, median acquisition is $55M
*http://thomsonreuters.com/content/press_room/financial/2010_08_10_US_PE_performance_positive
Less VC $
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Smaller funds < $100M A few General Partners $1.5M rounds ($15K to $1M /investment) LPs are showing interest in these new funds
More Super Angel/Micro VC $
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Innovation is not from within Find and invest in innovation Cash available Intel, Google, Cisco, Best Buy, Disney, GM,
Nike, Telefonica, Applied Materials, etc
Corporate VC
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Cleantech (down)◦ Very capital intensive, over funded in 2006/2007
Life Science (down)◦ Capital intensive, long investment period, regulatory issues
Semi (down)◦ Capital intensive, only a couple of acquires
Software (up)◦ Delivery: SaaS/Web, Mobile◦ Clients: Enterprise, Consumer◦ Billing: Subscription, Freemium◦ Capital Efficient
Tech Trends
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Mobile: iOS (Apple), Android (Google), RIM? MS? Infrastructure: HP, Cisco, VMware, IBM, MS Enterprise: SAP, Oracle, Salesforce, MS Consumer: Apple, Google, Facebook, Twitter,
Amazon, Disney, Netflix
Tech Trends
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$500K to $1.5M SW (mobile, consumer, enterprise,
infrastructure) 2+ Founders Full Time Initial Product Complete Revenue/Customers US (Bay Area, NYC, Boston, LA, Seattle, Austin)
Seed / Series A
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M&A◦ $55M Median Acquisition◦ Active Acquires: Apple, Facebook, Google, HP,
Dell, IBM, Oracle, Cisco, Amazon, etc
$1B+ M&A (IPO?) opportunities◦ Facebook ($34B - $50B), ◦ Groupon ($2.5B - $6B Google? rumor)◦ Zynga◦ LinkedIn◦ Twitter
Exits
