The Power of Pioneers

MICHAEL MOE, CFAFounder, GSV @michaelmoe

WELCOME 2015 GSV Pioneer Summit!

Wicked Issues Facing Humanity

$4.5 B+private funding

raised

1,000+Attendees

100Speakers

Ron Johnson

Anne Wojcicki

Michael Abbott

Ira Ehrenpreis

Phil Libin

Guy Kawasaki

GLOBAL SILICON VALLEYHall of Fame

Bill CampbellCoach of the Valley

Larry SonsiniCounsel to Titans

Diane GreeneTechnology Maverick

Dick KramlichVenture Capital

Trailblazer

Mike Homer (in memoriam)Creative Force of Nature

We “Open” at the Close

We won’t have a closing, but rather an opening to conversations and relationships for the coming year to transform industries.  

Megabots Party

Sustainability MobileBig DataEdTech Games

50 cities map

LosAltos

Palo Alto

Atherton

Redwood City

San Mateo

Millbrae

HalfMoon Bay

South San Francisco

SFO

San Francisco

FosterCity

Woodside

Oakland

THE BUSINESSES OFTHE BUSINESSES OF

SILICON VALLEY

Cuperti no

Sunnyvale

Milpitas

Fremont

Mountain View

San Jose

twitter

Venture capitalists are people too…most of them anyway.

Phrases to avoid in a pitch

“”

We’re the Uber for ___.

Phrases to avoid in a pitch

“”

We’re not afraid to pivot.

Phrases to avoid in a pitch

“”

This is the holy grail.

50 cities map

22 The Global Silicon Valley Handbook

the SILICON VALLEYPARKING GARAGE

TESLA MODEL S• Signature car of the

Valley and the CEO’s car, usually parked next to the CFO’s Tesla

• Combines the make and price of a Lambo with the sound of a mute ferret

MINI COOPER• Usually bought by

men and women who think the car is “soooo adorable”

• Has an inferiority complex when parked next to any Hot Wheels

HONDA ODYSSEY• The soccer mom or dad

car

• Has surprising ability to be a “whip,” gunning down the freeway to make it to soccer practi ce on ti me

TOYOTA PRIUS• The workingperson’s car

• Easy to park, aff ordable, effi cient, all in a lunch-box shape

• So average and inconspicuous they are a favorite of drug dealers everywhere

BMW M3• Even if drivers are kind

environmentalists and volunteer at homeless shelters, passersby sti ll think he is a “show-off y, wealth obsessed d-bag”

• High-end car driven by the children of hardworking parents

MOTORCYCLE• Cheap, dangerous,

thrilling, and the number one vehicle on your mother’s hit list

• Most drivers are members of Sons of Anarchy or watch it on Netf lix

RANGE ROVER• The hot rich mom car

• Usually driven by really hot, really rich mom

• This mom is really hot

PORSCHE BOXSTER• Usually bought at the

peak of a midlife crisis

• Oft en seen in the left lane going the speed limit

HORSE AND CARRIAGE• Preferred by the Amish

Google engineer

• Also seen with very very dedicated hipsters

23silicon valley

BAY AREA TO STANDARD AMERICAN ENGLISH TRANSLATOR

By Louis Weinstein, Published by Timothy McSweeny’s

“Who are you again?” BAY AREA“What company do you work for?” ENGLISH

“Do you live in this neighborhood?”“Can you aff ord to live in San Francisco?”

“We should get lunch.”“I’ve identi fi ed your value relati ve to me and wish to start the process of exploiti ng your talents.”

“Our new mobile opti mizati on will change the internet as we know it.”“My startup has yet to go public and is acti vely seeking angel investors.”

“What’s your Facebook?”1. “I would like to mine the Internet for informati on about you that basic social customs preclude me from directly asking about.”2. “I would like to ogle you.”

“I’ll take a bott le of the most expensive wine you have.”“I have enough money to get away with how insuff erable I’m about to be. Yes, I am 22.”

“Thanks for your interest, but we’ve decided to promote Mitch.”“Good luck being a woman in this city. Please, for both our sakes, don’t show emoti on.”

“Where are you, now?”“As our relati onship is enti rely based on our previous co-working experience and this social occasion has mandated that we talk, please defi ne yourself through your current employer. This way, we can have something to discuss unti l we reach a mutual sati sfactory level of social interacti on or I determine that your employment may be of value to me at which point I will suggest that we ‘get lunch’.”

“Cozy studio in south Nob Hill, $2,400/mo”“Extra closet space in former meth lab, Tenderloin district. You will have two roommates and no kitchen. Actually $3,845/month. Parti al roof.”

YOU’RE NOT AN ENTREPRENEUR IF...

You ask “Steve who?”or “Elon who?”

You check when the bank holidays are for your offi ce

You get a speeding ti cket and you don’t pitch your startup to the offi cer

You don’t have a TGIS (Thank God It’s Sunday) because that’s when your week starts

You hire a consultant to see if your plan is feasible

You start your business with the goal of selling it

You’re at a Giants game and you don’t have at least one idea for an app that would revoluti onize baseball

You haven’t maxed out at least two credit cards keeping your company afl oat

You haven’t been told by your friends to be realisti c and get a real job

Your signifi cant other tells you it’s them or your business and you don’t say “I love you and I’ll miss you”

22 The Global Silicon Valley Handbook

the SILICON VALLEYPARKING GARAGE

TESLA MODEL S• Signature car of the

Valley and the CEO’s car, usually parked next to the CFO’s Tesla

• Combines the make and price of a Lambo with the sound of a mute ferret

MINI COOPER• Usually bought by

men and women who think the car is “soooo adorable”

• Has an inferiority complex when parked next to any Hot Wheels

HONDA ODYSSEY• The soccer mom or dad

car

• Has surprising ability to be a “whip,” gunning down the freeway to make it to soccer practi ce on ti me

TOYOTA PRIUS• The workingperson’s car

• Easy to park, aff ordable, effi cient, all in a lunch-box shape

• So average and inconspicuous they are a favorite of drug dealers everywhere

BMW M3• Even if drivers are kind

environmentalists and volunteer at homeless shelters, passersby sti ll think he is a “show-off y, wealth obsessed d-bag”

• High-end car driven by the children of hardworking parents

MOTORCYCLE• Cheap, dangerous,

thrilling, and the number one vehicle on your mother’s hit list

• Most drivers are members of Sons of Anarchy or watch it on Netf lix

RANGE ROVER• The hot rich mom car

• Usually driven by really hot, really rich mom

• This mom is really hot

PORSCHE BOXSTER• Usually bought at the

peak of a midlife crisis

• Oft en seen in the left lane going the speed limit

HORSE AND CARRIAGE• Preferred by the Amish

Google engineer

• Also seen with very very dedicated hipsters

23silicon valley

BAY AREA TO STANDARD AMERICAN ENGLISH TRANSLATOR

By Louis Weinstein, Published by Timothy McSweeny’s

“Who are you again?” BAY AREA“What company do you work for?” ENGLISH

“Do you live in this neighborhood?”“Can you aff ord to live in San Francisco?”

“We should get lunch.”“I’ve identi fi ed your value relati ve to me and wish to start the process of exploiti ng your talents.”

“Our new mobile opti mizati on will change the internet as we know it.”“My startup has yet to go public and is acti vely seeking angel investors.”

“What’s your Facebook?”1. “I would like to mine the Internet for informati on about you that basic social customs preclude me from directly asking about.”2. “I would like to ogle you.”

“I’ll take a bott le of the most expensive wine you have.”“I have enough money to get away with how insuff erable I’m about to be. Yes, I am 22.”

“Thanks for your interest, but we’ve decided to promote Mitch.”“Good luck being a woman in this city. Please, for both our sakes, don’t show emoti on.”

“Where are you, now?”“As our relati onship is enti rely based on our previous co-working experience and this social occasion has mandated that we talk, please defi ne yourself through your current employer. This way, we can have something to discuss unti l we reach a mutual sati sfactory level of social interacti on or I determine that your employment may be of value to me at which point I will suggest that we ‘get lunch’.”

“Cozy studio in south Nob Hill, $2,400/mo”“Extra closet space in former meth lab, Tenderloin district. You will have two roommates and no kitchen. Actually $3,845/month. Parti al roof.”

YOU’RE NOT AN ENTREPRENEUR IF...

You ask “Steve who?”or “Elon who?”

You check when the bank holidays are for your offi ce

You get a speeding ti cket and you don’t pitch your startup to the offi cer

You don’t have a TGIS (Thank God It’s Sunday) because that’s when your week starts

You hire a consultant to see if your plan is feasible

You start your business with the goal of selling it

You’re at a Giants game and you don’t have at least one idea for an app that would revoluti onize baseball

You haven’t maxed out at least two credit cards keeping your company afl oat

You haven’t been told by your friends to be realisti c and get a real job

Your signifi cant other tells you it’s them or your business and you don’t say “I love you and I’ll miss you”

Erlich Bachman’s Guide to Business

“

”

We’ll call you when we want pleated khakis.

Erlich Bachman’s Guide to Business

“

”

You just brought shit to a piss fight.

Every day in America 1,100

new businesses are formed.

Source: Gallup, U.S. Census Bureau

Every day in America 1,300 businesses fail.

Source: Gallup, U.S. Census Bureau

In 2014, Venture Capitalists invested in

4,356 companies.

Source: NVCA, PwC

In 2014, just 115 venture-backed companies went

public….

Source: Thomson Reuters, NVCA

…and that was the best year since 2000.

Source: Dow Jones Venture Source, Fenwick & West

20% Chance Company Survives First 3 Years

What kind of nut would start a

business?

Name that “Nut”

Lost job in ’32

Defeated in race for State Legislature in ’32

Failed in business ‘33

He had a nervous breakdown in ’41

Defeated in races for:

Congress in ‘43 Senate in ‘55

Vice President in ‘56 Senate in ‘58

And the answer is…

Teachers told him he was “too stupid to learn anything”

Fired from his first two jobs for lack of productivity

Thomas Edison

$256 Billion Market Cap

He was fired by a newspaper editor because he "lacked imagination

and had no good ideas"

Launched film studios in 1920 and 1921… both went bankrupt

$173 Billion Market Cap

$208 BillionMarket Cap

“In order to earn better than a ‘C’, the idea must be feasible.”

-Yale professor response to a paper he submitted in 1965

Wilson turned FedEx’s last $5,000 into $27,000 at the Black Jack table

Whatever it Takes

$41 Billion Market Cap

Dyslexic

Turned down by 53 banks for a business loan

Founded 8$1 Billion Dollar Businesses

College dropout

Dumped from the company he founded

Next business was a near failure

Largest Market Cap in the World

Fired as CEO while on vacation

Spent every dime he had to keep his next company afloat

Other company he founded literally crashed and burned

$32 Billion Market Cap

$12 Billion Valuation

Moore’s Law 50th Anniversary

Moore’s Law

2000 2015$0.04

$7.03

Cost of Computing (per MM transistors)

Source: Deloitte

98% decline

2000 2015$0.02

$4.77

Cost of Storage (per GB)

Source: Deloitte

99% decline

1990: $20KToday: $1

Source: Deloitte

Global Internet Users (billions)

1996 1999 2002 2005 2008 2011 2015

3.12.2

1.51.0

0.70.30.1

21% CAGR

Source: Internet Live Stats

2.0 B+ Smart Phone Users

Source: eMarketer

2012 2013 2014 2015 (P) 2016 (P) 2017 (P)

270225

180140

10070

Android and iOS App Downloads (billions)

Source: Gartner

31% CAGR

Austin

Boston

Chicago

Sao Paulo

Mumbai

Shanghai

Dubai

Global Silicon Valley

ImagiNation

Founded: 2004

Source: Facebook, World Bank

Population Size

1.5B 1.24B1.35B

Founded: 1921

Founded: 2009

Market Value: $51 Billion

S t . P e t e r ’s S q u a re : 2 0 0 5

S t . P e t e r ’s S q u a re : 2 0 1 3

Founded: 1888

Market Value: Bankrupt

Founded: 2011

Market Value: $15 Billion

Founded: 1957

Market Cap: $7 Billion

Founded: 2008

Market Value: $25 Billion

Things change…

U.S. Workforce Breakdown: 1800

95%

5%

Agriculture

Other

Source: U.S. Bureau of Labor Statistics, GSV Asset Management

Life Expectancy 1800: 37

U.S. Workforce Breakdown: 1900

42%

30%

28%

Services & Information

Agriculture Industrial

Source: U.S. Bureau of Labor Statistics, GSV Asset Management

PLAY LEARN WORK RETIRE

0-5 25-65 65+5-25

Old System1900

“As GM Goes, So Goes the Nation.”

-Charles Wilson CEO, General Motors (1953)

$0

$25

$50

$75

$100

2000 2001 2002 2003 2004 2005 2007 2008 2009

GM Share Price, 2000-2009

Source: CapitalIQ

Only 12% of the Companies on the 1955 List Remain

Since 1990, Fortune 500 Lost 25 Million Jobs…

75 Million Jobs Created by New Businesses

U.S. Workforce Breakdown: 20201%

95%

4%

Services & Information

IndustrialAgriculture

Source: U.S. Bureau of Labor Statistics, GSV Asset Management

Today: 30% of Newborns Will Live to be 100

Source: New York Times

Millennials’ Projected Lifetime

Careers: 15+

Source: Forbes, U.S. Bureau of Labor Statistics

“Siri, make me a

sandwich.”

PLAY WORK RETIRE?

0-5 JOB

LEARN

SCHOOL JOB JOB JOB

New System

ENTREPRENEUR

As the entrepreneur goes, so goes the

Global Silicon Valley

Thank You!

@michaelmoe

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