silicon valley bank startup outlook 2012 webinar presentation

Key Findings May 16, 2012

www.svb.com/startup-outlook-2012/

Speakers

Jeff Clavier, Founder & Managing Partner, SoftTech VC

Mary Dent, General Counsel & Head of Government Affairs, SVB Financial Group

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Agenda

Survey Demographics Key Findings

Business Conditions Jobs, Jobs, Jobs Growth Opportunities/Challenges Global Markets Public Policy Priorities

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Startup Outlook Survey

The startup economy, as seen by 270 U.S.-based startup executives

Their views on: Business conditions Expectations for hiring Opportunities and challenges Role public policy plays in their businesses – what’s going well,

what needs to be better

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Survey Demographics: By Industry

Source: Silicon Valley Bank

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Survey Demographics: By Geography

Source: Silicon Valley Bank

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Survey Demographics: By Number of Employees

Source: Silicon Valley Bank

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Survey Demographics: By Revenue

Source: Silicon Valley Bank

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Why the Startup Outlook Survey?

Startups as a “leading indicator” What can policymakers do to help startups thrive?

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Areas We Focused On

Business performance and economic recovery Hiring and growth Growth Opportunities/Challenges Global Markets Public Policy Priorities

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Company Performance

Source: Silicon Valley Bank

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Business Conditions YoY

Source: Silicon Valley Bank

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Business Conditions Outlook

Source: Silicon Valley Bank

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Company Performance: By Industry

Source: Silicon Valley Bank

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Business Conditions YoY: By Industry

Source: Silicon Valley Bank

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Business Conditions Outlook: By Industry

Source: Silicon Valley Bank

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Source: Silicon Valley Bank

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Will Startups Find Enough Qualified Employees?

Source: Silicon Valley Bank

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Growth Opportunities for Business

Source: Silicon Valley Bank

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Challenges for Business

Source: Silicon Valley Bank

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Raising Capital

Source: Silicon Valley Bank

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International Expansion: Hiring

Source: Silicon Valley Bank

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International Expansion: Revenue Growth

Source: Silicon Valley Bank

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Rationale for International Expansion

Source: Silicon Valley Bank

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Opportunities in Non-U.S Markets

Source: Silicon Valley Bank

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Is the U.S. Losing Its Edge?

Source: Silicon Valley Bank

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Government Policy Priorities

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Source: Silicon Valley Bank

Government Fiscal Priorities

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Source: Silicon Valley Bank

Are We Making Progress?

Source: Silicon Valley Bank

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Priorities by Sector

Source: Silicon Valley Bank

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Questions?

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Biographies

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Jeff Clavier Based in Palo Alto, California, Jean-Francois “Jeff” Clavier is the Founder and Managing Partner of SoftTech VC, one of the most active seed stage investors in Web 2.0 startups. Since 2004, Jeff has invested 110+ consumer internet startups (Fund I, Fund II, Fund III) in areas like social media, monetization, search, gaming or B2B/B2C web services. These investments are typically located in Silicon Valley, New-York and Boulder. With over 20 years of operational, entrepreneurial and venture capital experience, Jeff is able to add relevant perspective and value to his companies as they grow from inception to maturity, and hopefully, success. In 2007, Jeff was recognized as one of the 13 “Web 2.0 King Makers” by (late) Business 2.0. BusinessWeek named him one of “The 25 Most Influential People on the Web” in 2008, and one of the “Top 25 Angels in Tech” in 2010. He was also nominated in the “Best Angel” category at the Crunchies in 2009 and 2010. He is often noted for his investments in categories such as “passion-centric communities” or online gaming, or for having sold a number of his Web 2.0 startups to the likes of Yahoo, AOL, Intuit or more recently Twitter and Groupon. In September 2007, after successfully investing as a business angel, Jeff announced the formation of SoftTech VC II, L.P. – a $15M seed fund backed by a mix of institutional and private investors to invest in 60+ consumer Internet companies over 3 years. Some of Jeff’s representative investments include Mint (Intuit), Brightroll, Truveo (AOL), Userplane (AOL), Rapleaf, Ustream, Milo (eBay), Blekko, Eventbrite, Tapulous (Disney), DNANexus, FanBridge, BillFloat, Fab, Gigwalk, Betterworks,… A popular speaker and moderator, Jeff appears at dozens of industry events per year, and is regularly interviewed on TV. Ranging from local Silicon Valley keynotes or panel discussions to international conferences, he shares his passion for building Internet startups, angel and VC investing, innovation and entrepreneurship. Jeff has produced a number of technology conferences and was a founding co-chair of the SDForum Search Special Interest Group. Believing that you have to practice what you invest in, and vice-versa, Jeff started Software Only in 2004, one of the early venture capital blogs where he primarily covered social media, search, online communities and investing. After a few years of active posting, Jeff switched to micro-blogging, and a less time consuming production, mostly through @jeff on Twitter. Prior to founding SoftTech VC, Jeff spent more than 16 years in the enterprise software world as an entrepreneur, senior executive and venture capitalist. Throughout his career, he was exposed to global markets leading development teams in Europe and on Wall Street, designing products sold internationally and investing in software infrastructure startups across the U.S. and Europe. In 2000, Jeff became President of RVC Capital, the firm managing the Reuters Greenhouse Fund with $600M invested in 82 companies, including Yahoo!, Verisign, Phone.com and Infoseek. He joined the venture arm of Reuters from the company’s product development division, where he was leading a 250+ staff in Paris, London and New York, and was responsible for the Risk Management and Desktop products. Jeff joined Reuters through the acquisition of Effix Systems, a Paris-based startup company he helped develop in 1989 while still in school. Jeff was born, raised and educated in France, earning a MS in Computer Science and a research degree in Distributed Computing.

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Mary Dent Mary Dent is SVB Financial Group's general counsel and secretary. She is responsible for leading the company's legal and compliance departments, providing strategic guidance to its management team and board, and building a research & development function within the Company. In addition, Dent spearheads the company's government affairs initiative and SVB’s cleantech policy initiative. Pioneering SVB’s government affairs effort, Dent is responsible for building relationships and successfully influencing policymakers on issues that affect the ability of emerging and high-growth innovative companies to succeed. Dent advocates for policies that promote long term growth and disruptive innovation, and creates an avenue for Silicon Valley companies to be heard by policymakers in Washington. On the cleantech front, Dent works closely with Matt Maloney, the head of SVB’s cleantech banking practice, to advocate for policies that will help the United States develop a robust cleantech sector: In addition, she is responsible for leading SVB’s “green” initiative, which implements cleaner, greener business practices within SVB. Dent has more than 15 years of legal experience in the public and private sectors. She joined SVB Financial Group from New Skies Satellites, a global satellite communications service provider based in the Netherlands. While serving as New Skies' general counsel, she was responsible for all securities and governance matters, including the company's IPO in 2000 on the NYSE and AEX, as well as all regulatory, contractual, and other legal matters affecting the company. She also served as a member of the company's executive management team and, in that capacity, participated in determining and implementing its long term strategy. During the past several years, she played a central role in taking New Skies private in 2004, conducting the company's second IPO on the NYSE in 2005, and in its recent sale to a strategic buyer. Prior to joining New Skies, Dent was an attorney with Goldberg, Godles, Wiener & Wright, a Washington, DC-based law firm that specializes in legal and policy matters for technology companies. Over the course of her professional career, Dent also worked for Senator Edward Kennedy, was a fellow with the Women's Law & Public Policy Fellowship Program, and served as a law clerk to Judge Royce Lamberth of the U.S. District Court in Washington, D.C. Currently, Dent is a member of the board and the finance committee of Joint Venture: Silicon Valley Network. Dent earned a bachelor's degree in economics from UCLA, graduating Phi Beta Kappa and Magna Cum Laude, and a Juris Doctor degree with Distinction from Stanford Law School.

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Disclosures

© 2012 Silicon Valley Bank. All rights reserved. Silicon Valley Bank is a member of FDIC and Federal Reserve System. SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley Bank are registered trademarks.

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