Starting a business in Silicon ValleyRicard Garriga, entrepreneur at YouNoodle Inc.

Where?

Silicon Valley start-up ecosystem

San Francisco, CA

Silicon Valley

1950 American government believes in the University tech transfer centres

Sectorial Silicon Valley Evolution

Agriculture

Army

Hardware

Personal Computers

Internet

Social networks

BioTech

1940

Technology Revolution

1950 1960 1970 1980 1990 2000 2010 2020

CleanTechAppsmobile

What’s next?

2030

company

Market

Sector,Corporations

Investors

TalentInfrastructures

Quality of life

Entrepreneurial Cultura

Ecosystem

mailto:http://vimeo.com/47336983%23at%3D0

Entrepreneurial Universities

The most successful Venture Capitalists in the world, are on the same street

Big Startup offices

Startup offices

Value // Beyond the Start-Up Cycle

Investment // Beyond the Start-Up Cycle

Investment strategy

Time

$

FFF

SeedBusiness Angels

VC Serie A

VC Serie B

M&A or IPO

VC Serie C

Start-up Valuation

Tech Trends2012

Adele BurnesCampaigns Manager

Silicon Valley start-up ecosystem

Investment Trends in Deals

53

290

207

208

US Venture Capital Investments by Stage of Development Q1 2012

(Number of Deals)

Seed Early Stage

Expansion Later Stage

Investment Trends by Industry

Software

Biotechnology

Industrial/Energy

Medical Devices and Equipment

Consumer Products and Services

Media and Entertainment

IT Services

Semiconductors

Telecommunications

Networking and Equipment

Financial Services

Computers and Peripherals

Retailing/Distribution

Business Products and Services

Electronics/Instrumentation

Healthcare Services

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

US Venture Capital Investments by Industry Q1 2012

Devices

Devices are the technology and tools that we all use to connect to the internet and each other, such as mobile

phones, computers and tablet PCs. Trends in devices are towards increased portability

and connectivity where ever you go.

Devices

People are increasingly

connecting to the internet from their

mobile devices

Devices

Devices

These are some of the leading tech trends today. Social Location – when we mash up social networking and your location. When your mobile device knows where you are, where your friends are, and what they are doing.

Social networks have become part of the fabric of society. As a result there are many uses and applications that leverage the desire for social connectivity and media and knowledge sharing through our devices

Social Music Sharing

Pandora• Create your own stations and share them with your

friends

Spotify• Access your music collection from anywhere• See what your friends are listening to – Facebook 2011• Raised $100 Million in June 2011

Turntable.fm• Friends DJ for each other• Raised $7 Million in Sept 2011

Peer to Peer Knowledge Sharing

Quora• Q&A site with peer reviewed responses• Launched in 2010 and now has 3 million monthly uniques • Raised $50 million in May 2012

Stack Overflow• Community knowledge exchange for programmers• Raised $12M Series B funding in 2011

Formspring• Find out more about your friends by asking and responding

to interesting questions. • Raised $11.5M in Jan 2011

Social CurrencyKlout• Measuring your reach on on the social graph• Raised $8.5 million in Jan 2011 and then $30 million in Jan

2012

Kred• Measures influence in online communities connected by

interest• Launched in fall 2011

PayParrot• Tweet and social reach as a form of payment using• Allows companies to sell subscriptions based on users

tweeting• Incubating in Start-Up Chile

Social Media Trends

Identity will become embedded in your devices

Online sharing will become embedded into your media life

Location will become embedded into all activities

With the increased usage of GPS enabled smartphones, devices have the ability to know your location and make recommendations of local deals. In addition group buying and local deals are emerging in many niche areas.

Group Buying

Groupon• Deals when a group buys the commits to purchase• $12.8 Billion Valuation

Living Social• Deals when a group buys the commits to purchase• Raised $176 million in 2011

TicketMonster• Acquired by Living Social in July 2011 for $350 million

Local Deals

Savored• Local restaurant deals• Raised $3 million in 2010

Placecast• Mobile notifications of local deals

GigWalk• Turn phone into mobile workforce, localized information request• Founded in August 2010, and raised $1.7 million in May 2011

Mindful Meats is an marketplace for local grass fed organic meats

Lulan Artisans is a marketplace for artfully crafted and produced products

Etsy is a very popular online marketplace where anyone can buy and sell all things handmade

Niche Marketplaces

With the combined functionality of smartphones, an ecosystem of applications has emerged, with many more possibilities ahead.

Music

Camera

ApplicationsVideo

Internetemail

GPSWifi and 3G

Mobile Photo Apps

Color• Photo sharing with people in proximity• Raised $41 Million in March 2011

Sincerely• Easily send real photos in the mail from your phone• Raised $3 Million seed funding in Oct 2011

Instagram• Photo sharing with filters• Founded in 2012, Raised $57 Million in 2012• Acquired by Facebook for $1 Billion

Find My Car• App to help you locate your parked car• Developed by student in summer – in 6 months over 2Million

downloads

iStanford - Blackboard• App with school information: maps, courses, events• Developed by students and acquired by Blackboard for $8million

right after student graduated

Courserank• Site to ranks your professors but with controlled access by

current students• Developed by students and acquired by Chegg for $15million

when students graduated

Education Apps(solving your own problems)

Juntos Finanzas• Manage spending and finances using SMS• Text spending and receive a paper report • Winner of Stanford BASES E-Challenge 2011

Harass Map• Report abuse or harassment anonymously using SMS• Gives a voice to marginalized and informs public of

dangerous areas

Patatat• Simple group texting service allowing a group to

communicate and mobilize using text messages

Text Based Apps(often targeting and emerging from developing

countries)

Mobile and Smartphone Trends

NFC – Near Field Communication, wireless identification

3D Screens Tactile feedback screens

Solar Powered smartphones

Cloud

Cloud computing is a model for enabling convenient and on-

demand access to a shared pool of configurable resources

(networks, servers, applications and services) that can be readily and rapidly scaled and serviced.

Cloud Storage

Dropbox• Access your files from any device using cloud storage• Raised $250 Million in Oct 2011 at $4 Billion Valuation

Box.net• Online file sharing, content management and

collaboration• Raised $125 Million in July 2012

Bitcasa• Provides secure, unlimited storage on any device, files

are streamed and load more quickly. • Raised $7 million in June 2012

Cloud Hosting

Amazon Web Services• Cloud hosting and storage for any site. Computing

platform in the cloud

Azure• Create, deploy and manage web apps in the cloud

Heroku• Application hosting platform• Bought by Salesforce in 2011 for $212 Million

Gaming and GamificationOnline gaming through social networks has gained massive

traction and attracted significant capital investment. Meanwhile the gamification of education, consumer

experiences and other new arenas are hooking users in a new and more engaging user experience.

Gaming and Gamification

Zynga is a successful social gaming network.Raised $1 billion in funding thru 6 rounds

Khan Academy provides video education, increasing the interactiveness and gamification of education

With Foursquare, members note their locations with a mobile phone and receive badges for repeat check-ins, gamifying the purchasing experience. Raised $50 million in 2011 with over 15 million users

Travel

Interestingly there are a bunch of new travel sites that have raised significant funding in the last year. These travel sites are innovating on traditional travel, presenting data more

effectively and accessing new markets.

Travel SitesAirbnb is a global network of accommodations offered by locals. Raised $112 Million, Valued at $1 billion+

Cruisewise aggregates data from many different cruise providers to make online cruise shopping and booking easier.

Hipmunk is a travel booking site with improved data visualization. Raised $5.22 million since 2010.

Ostrovok is a hotels focused online travel site for Russian consumers. Raised $13.6 million in 2011

Utilizing the Crowd

There is a movement towards utilizing the the large number of people online (the crowd) to source work, make design

decisions, raise funding and many other services.

Crowd-SourcingLoudSauce• Crowd fund ad space for your favorite campaigns

on TV, billboards and other ad spaces

AdsByMe• Crowdsourced company slogans and analytics of

most successful campaigns

Threadless • T-shirt designs submitted by users, chosen by

community of users and sold online.

Crowd-Sourcing Contestification

Contestify is a platform for running your online contests or sweepstakes

Kaggle is a platform for data prediction competitions.Raised $11 Million in Nov 2011

Innocentive is a challenge driven innovation approach that leverages open innovation and crowdsourcing to help organizations solve pressing challenges.

Crowd-fundingKickstarter is a platform to allow anyone to start a campaign to raise money for a project from their community

SoMoLend is a peer lending platform, where borrows can create profiles, and anyone can lend money and make interestRaised $1.7 Million in May 2012

Crowdfunder allows businesses to gather funding from community to launch business. Launched in Dec 2011 and Raised $400K in Seed funding in May 2012

IndieGogo is a global crowd funding platform for any type of campaign from creative to socialRaised $15 Million in June 2012

ResourcesTech Blogs:• http://techcrunch.com/• http://venturebeat.com/• http://

www.technologyreview.com/• http://gigaom.com/• http://allthingsd.com/• http://www.businessinsider.co

m/• http://mashable.com/• http://www.wired.com/• http://www.thenextweb.com/• http://www.engadget.com/• http://news.cnet.com/• http://arstechnica.com/

Investment Blogs:• http://www.avc.com/• http://abovethecrowd.com/• http://www.readwriteweb.com/• http://cdixon.org/• http://www.bothsidesofthetable.

com/

Tech podcast• http://TWiT.tv/

Thank you!!Ricard Garriga and Adele Burnes

@YouNoode

@RicardGarrigawww.YouNoodle.com