1. Presence in Silicon Valley for
International Corporations and
Entrepreneurs
By Juan Ramon Zarco
Silicon Valley Growth Partners
jrzarco2012@gmail.com
650-843-9212
6/10/2014 1

2. Topic – Silicon Valley Ecosystem for
International Companies
 Entering and Registering in the U.S. as an entity – doing business
 Silicon Valley Investments Q4 2013
 Investment Breakdowns
 Foreign Companies Attraction to Silicon Valley – Kleiner Perkins
 Comparative Differences between U.S. and Europe
 Do’s and Don’ts
6/10/2014 2

3. What is a Foreign Company in Silicon
Valley?
What is Doing Business?
What is Registering?
Certain organizations formed outside New York may not do business in New York until
authorized to do so. Called "foreign," whether formed in another state of the United States or
in another country, such organizations include for-profit and not-for-profit corporations,
limited liability companies, and limited partnerships.
6/10/2014 3
There are 50 States, 50 Corporate Laws!
Delaware vs. California
Registering – Agent, Incorporating-Existence
Not authorized = no access to tribunals/courts

4. Why Silicon Valley: U.S. Eco-System -
$8.4 Billion Invested, average $7.88
million, 1,077 Deals
in one Quarter
Source: NVCA/PWC Q4, 2013
Region Amount % of Total Deals
Silicon Valley, $3,220M 38.48% 306
NY Metro $1,220M 14.57% 123
New England $917M 10.96% 106
Rest of USA $3,012M 35.99% 542
6/10/2014 4

5. 6/10/2014 5
Regions Defined Total $ Invested Average $ Per Deal Deals
Silicon Valley $3,220,323,200 $10,523,932 306
Amount % of Total Deals
Software $1338M 41.55% 133
Media and Entertainment $465M 14.44% 32
Biotechnology $428M 13.29% 29
IT Services $251M 7.79% 24
Medical Devices and Equipment $162M 5.02% 26
Telecommunications $120M 3.74% 9
Semiconductors $112M 3.47% 13
Consumer Products and Services $73M 2.27% 9
Computers and Peripherals $64M 1.99% 3
Electronics/Instrumentation $56M 1.75% 4
Industrial/Energy $54M 1.68% 8
Business Products and Services $40M 1.24% 5
Retailing/Distribution $29M 0.89% 6
Networking and Equipment $20M 0.61% 2
Healthcare Services $8M 0.23% 2
Financial Services $1M 0.02% 1
Silicon Valley Investments Q4 2013 Broken Down by Sectors

6. 5/10/2014 6
Investments by Stage of Development / Q4 2013
Stages Defined Total $ Invested Average $ Per Deal Deals
All $8,369,192,800 $7,770,838 1077
Amount % of Total Deals
Expansion $2997M 35.81% 275
Early Stage $2895M 34.59% 530
Later Stage $2157M 25.78% 205
Startup/Seed $320M 3.82% 67
Breakdown by Investment Categories

7. 6/10/2014 7
View Investee Companies by Region / Q4 2013
- All - select a region
Investee Company Name Region State
955 Dreams Inc Silicon Valley CA
Acerta Pharma LLC Silicon Valley CA
Achaogen Inc Silicon Valley CA
AdLast Inc Silicon Valley CA
Afferent Pharmaceuticals Inc Silicon Valley CA
Afterlivetv Inc Silicon Valley CA
Ajax Vascular, Inc. Silicon Valley CA
Alector LLC Silicon Valley CA
Alienvault LLC Silicon Valley CA
Allergen Research Corp Silicon Valley CA
Alminder Inc Silicon Valley CA
Alpine Data Labs Inc Silicon Valley CA
Altia Systems Inc Silicon Valley CA
AltSchool Inc Silicon Valley CA
Amaranth Medical Inc Silicon Valley CA
American Efficient Silicon Valley CA
Amprius Inc Silicon Valley CA
Anturis Inc Silicon Valley CA
AppDirect Inc Silicon Valley CA
Apps & Zerts Inc Silicon Valley CA
Appthority Inc Silicon Valley CA
Aria Systems Inc Silicon Valley CA
Arista Networks Inc Silicon Valley CA
ARMO Biosciences Inc Silicon Valley CA
Arrayent Inc Silicon Valley CA
Arstasis Inc Silicon Valley CA
Articulinx Inc Silicon Valley CA
Atara Biotherapeutics Inc Silicon Valley CA
Athos Works Inc Silicon Valley CA
Audentes Therapeutics Inc Silicon Valley CA
Audioscribe Ltd Silicon Valley CA
August Silicon Valley CA
Avinger Inc Silicon Valley CA
Bandai Natl Pk Resort Golf Silicon Valley CA
Basis Science Inc Silicon Valley CA
BetterDoctor Inc Silicon Valley CA
Biodesy Inc Silicon Valley CA
Bitcasa Silicon Valley CA
Bloc Inc Silicon Valley CA
Bluenose Analytics Inc Silicon Valley CA
Booyah Inc Silicon Valley CA
Box Inc Silicon Valley CA
Breathometer Inc Silicon Valley CA
Building Robotics Silicon Valley CA
Butter Systems Inc Silicon Valley CA
Butterfly Health, Inc. Silicon Valley CA
C9, Inc. Silicon Valley CA
306 Deals in one
Quarter

8. 6/10/2014 8
Butterfly Health, Inc. Silicon Valley CA
C9, Inc. Silicon Valley CA
Cabochon Aesthetics Inc Silicon Valley CA
Calithera Biosciences Inc Silicon Valley CA
Calysta Energy Inc Silicon Valley CA
Catalyst Biosciences Inc Silicon Valley CA
Cellular Research Silicon Valley CA
Cibiem Inc Silicon Valley CA
Cinarra Systems Inc Silicon Valley CA
Clever Inc Silicon Valley CA
Coho Data, Inc. Silicon Valley CA
Coinbase Inc Silicon Valley CA
Colingo Silicon Valley CA
Compass Electro Optical Systems Ltd Silicon Valley CA
Connu Silicon Valley CA
Contextly Inc Silicon Valley CA
Continuuity Inc Silicon Valley CA
Coraid Inc Silicon Valley CA
Coursera Inc Silicon Valley CA
Cozy Services Ltd Silicon Valley CA
Creative Action Network Silicon Valley CA
Crowdtilt Inc Silicon Valley CA
Cumulus Networks Inc Silicon Valley CA
Cuyana Inc Silicon Valley CA
CymaBay Therapeutics Inc Silicon Valley CA
Cyphort Inc Silicon Valley CA
Cyvera, Ltd. Silicon Valley CA
Danville Group, The Silicon Valley CA
Datahero Inc Silicon Valley CA
Datameer Inc Silicon Valley CA
Datasift Inc Silicon Valley CA
DeliRadio Silicon Valley CA
Deliv Inc Silicon Valley CA
Digital Manufacturing Inc Silicon Valley CA
Doctor On Demand Inc Silicon Valley CA
DoubleDutch Inc Silicon Valley CA
eASIC Corp Silicon Valley CA
EchoPixel Inc Silicon Valley CA
Ecofactor Inc Silicon Valley CA
eConais Inc Silicon Valley CA
Egnyte Inc Silicon Valley CA
Endogastric Solutions Inc Silicon Valley CA
Enlighted Inc Silicon Valley CA
Espresso Logic Inc Silicon Valley CA
Established Tomorrow LLC Silicon Valley CA
ExtendTV Inc Silicon Valley CA
Extole, Inc. Silicon Valley CA
Flint Mobile Inc Silicon Valley CA
Flipboard Inc Silicon Valley CA
Flurry Inc Silicon Valley CA
Formidable Corp Silicon Valley CA
Foundry Newco XI Inc Silicon Valley CA
Funambol Inc Silicon Valley CA
Gainspeed Inc Silicon Valley CA
Garantia Data Ltd Silicon Valley CA
Gemini Mobile Technologies Inc Silicon Valley CA
GenapSys Inc Silicon Valley CA
Ginzamarkets Inc Silicon Valley CA
Glassbeam Inc Silicon Valley CA
Glassdoor Inc Silicon Valley CA
Global Education Learning Holding Ltd Silicon Valley CA
Good.Co Inc Silicon Valley CA
Gridstore Inc Silicon Valley CA
Grokker Inc Silicon Valley CA
GymPact Inc Silicon Valley CA
Hacklog Silicon Valley CA
HDmessaging Inc Silicon Valley CA
HealthEquityLabs Inc Silicon Valley CA
Hexagram 49, Inc. Silicon Valley CA
Hightail Inc Silicon Valley CA
Homejoy Inc Silicon Valley CA
Human Dx Ltd Silicon Valley CA
HydroNovation, Inc. Silicon Valley CA
HydroPoint Data Systems Inc Silicon Valley CA
ICIX Pty Ltd Silicon Valley CA
Imimtek Inc Silicon Valley CA
Index Silicon Valley CA
Integrated Photo Voltaics Inc Silicon Valley CA
Intersect ENT Inc Silicon Valley CA
InVitae Corp Silicon Valley CA
Jiwire Inc Silicon Valley CA
Jut Inc Silicon Valley CA
Kaazing Corp Silicon Valley CA
Kahuna Inc Silicon Valley CA
Kaiam Corp Silicon Valley CA
Kanjoya Inc Silicon Valley CA
Keen Labs Inc Silicon Valley CA
Kidaptive Inc Silicon Valley CA
Kii, Inc. Silicon Valley CA
Kingsoft Office Software Inc Silicon Valley CA
Knotch Inc Silicon Valley CA
Kumu Networks Inc Silicon Valley CA
Layer Inc Silicon Valley CA
LeanData Inc Silicon Valley CA
LendUp Silicon Valley CA
LensVector Inc Silicon Valley CA
Life360 Inc Silicon Valley CA
Lift Labs Silicon Valley CA
LiquidM Inc Silicon Valley CA
Listia Inc Silicon Valley CA
Liveramp Inc Silicon Valley CA
Lookout Inc Silicon Valley CA
Loom Inc Silicon Valley CA
Loop Commerce Inc Silicon Valley CA
Luxul Technology Inc Silicon Valley CA
LuxVue Technology Corp. Silicon Valley CA
Lytro Inc Silicon Valley CA
Madefire Inc Silicon Valley CA
Madison Reed Inc Silicon Valley CA
Markkit Silicon Valley CA
MathCamp Inc Silicon Valley CA

9. 6/10/2014 9
Gemini Mobile Technologies Inc Silicon Valley CA
GenapSys Inc Silicon Valley CA
Ginzamarkets Inc Silicon Valley CA
Glassbeam Inc Silicon Valley CA
Glassdoor Inc Silicon Valley CA
Global Education Learning Holding Ltd Silicon Valley CA
Good.Co Inc Silicon Valley CA
Gridstore Inc Silicon Valley CA
Grokker Inc Silicon Valley CA
GymPact Inc Silicon Valley CA
Hacklog Silicon Valley CA
HDmessaging Inc Silicon Valley CA
HealthEquityLabs Inc Silicon Valley CA
Hexagram 49, Inc. Silicon Valley CA
Hightail Inc Silicon Valley CA
Homejoy Inc Silicon Valley CA
Human Dx Ltd Silicon Valley CA
HydroNovation, Inc. Silicon Valley CA
HydroPoint Data Systems Inc Silicon Valley CA
ICIX Pty Ltd Silicon Valley CA
Imimtek Inc Silicon Valley CA
Index Silicon Valley CA
Integrated Photo Voltaics Inc Silicon Valley CA
Intersect ENT Inc Silicon Valley CA
InVitae Corp Silicon Valley CA
Jiwire Inc Silicon Valley CA
Jut Inc Silicon Valley CA
Kaazing Corp Silicon Valley CA
Kahuna Inc Silicon Valley CA
Kaiam Corp Silicon Valley CA
Kanjoya Inc Silicon Valley CA
Keen Labs Inc Silicon Valley CA
Kidaptive Inc Silicon Valley CA
Kii, Inc. Silicon Valley CA
Kingsoft Office Software Inc Silicon Valley CA
Knotch Inc Silicon Valley CA
Kumu Networks Inc Silicon Valley CA
Layer Inc Silicon Valley CA
LeanData Inc Silicon Valley CA
LendUp Silicon Valley CA
LensVector Inc Silicon Valley CA
Life360 Inc Silicon Valley CA
Lift Labs Silicon Valley CA
LiquidM Inc Silicon Valley CA
Listia Inc Silicon Valley CA
Liveramp Inc Silicon Valley CA
Lookout Inc Silicon Valley CA
Loom Inc Silicon Valley CA
Loop Commerce Inc Silicon Valley CA
Luxul Technology Inc Silicon Valley CA
LuxVue Technology Corp. Silicon Valley CA
Lytro Inc Silicon Valley CA
Madefire Inc Silicon Valley CA
Madison Reed Inc Silicon Valley CA
Markkit Silicon Valley CA
MathCamp Inc Silicon Valley CA
QuickPay Corp Silicon Valley CA
QuorumLabs Inc Silicon Valley CA
Quri Silicon Valley CA
R2 Semiconductor Inc Silicon Valley CA
Raydiance Inc Silicon Valley CA
RealScout Inc Silicon Valley CA
Reesio Inc Silicon Valley CA
Relypsa Inc Silicon Valley CA
remind101 Inc Silicon Valley CA
RenovoRx Inc Silicon Valley CA
Reset Therapeutics LLC Silicon Valley CA
Restoration Robotics Inc Silicon Valley CA
RichRelevance Inc Silicon Valley CA
RidePal Inc Silicon Valley CA
Ripple Labs Inc Silicon Valley CA
Robinhood Financial LLC Silicon Valley CA
Rocketick Technologies Ltd Silicon Valley CA
Rumble Entertainment Silicon Valley CA
Runnable Silicon Valley CA
Santa Maria Biotherapeutics Inc Silicon Valley CA
Savveo Inc Silicon Valley CA
Scanadu Inc Silicon Valley CA
Scoot Networks Inc Silicon Valley CA
Selligy Inc Silicon Valley CA
Sentons Inc Silicon Valley CA
SentreHEART Inc Silicon Valley CA
SFJ Pharmaceuticals Inc Silicon Valley CA
Sharethrough Inc Silicon Valley CA
Sherlock Data Science Inc Silicon Valley CA
Shoptap, Inc. Silicon Valley CA
ShowEvidence Inc Silicon Valley CA
SimplyInsured Inc Silicon Valley CA
Skybox Security Inc Silicon Valley CA
Skycross Inc Silicon Valley CA
Smartshoppr Inc Silicon Valley CA
Sojern Inc Silicon Valley CA
Soundhawk Corp Silicon Valley CA
Sparkcentral Inc Silicon Valley CA
Sparks Mobile Inc Silicon Valley CA
Ss8 Networks Inc Silicon Valley CA
StarMaker Interactive Inc Silicon Valley CA
Station X Inc Silicon Valley CA
Stem, Inc. Silicon Valley CA
Stitch Fix Inc Silicon Valley CA
Strevus Inc Silicon Valley CA
Super Evil Mega Corp Silicon Valley CA
Sutro Biopharma Inc Silicon Valley CA
Suvolta Inc Silicon Valley CA
Swapbox Inc Silicon Valley CA
Swarm Solutions Inc Silicon Valley CA
Talari Networks Inc Silicon Valley CA
Talend Inc Silicon Valley CA
Tangible Play Silicon Valley CA
Teambox Silicon Valley CA
Telly Inc Silicon Valley CA
Terrajoule Corporation Silicon Valley CA

10. 6/10/2014 10
The Fabric LLC Silicon Valley CA
Threefold Photos Inc Silicon Valley CA
Tiatros, Inc. Silicon Valley CA
TicTasks Inc Silicon Valley CA
Tigo Energy Inc Silicon Valley CA
Tinycocom Silicon Valley CA
ToutApp, Inc. Silicon Valley CA
Traina Interactive Inc Silicon Valley CA
Trifacta Inc Silicon Valley CA
Trivascular Inc Silicon Valley CA
True North Therapeutics Inc Silicon Valley CA
Turn Inc Silicon Valley CA
Untangle Inc Silicon Valley CA
UpCounsel Inc Silicon Valley CA
Upthere Inc Silicon Valley CA
Ustyme Inc Silicon Valley CA
Vapore, Inc. Silicon Valley CA
vArmour Networks Inc Silicon Valley CA
Versartis Inc Silicon Valley CA
Vertical Brands Media Inc Silicon Valley CA
Vimo Inc Silicon Valley CA
Visually Inc Silicon Valley CA
Vytronus Inc Silicon Valley CA
WePay Inc Silicon Valley CA
Wevorce Inc Silicon Valley CA
Whistle Labs Inc Silicon Valley CA
WhoKnows Inc Silicon Valley CA
Wildflower Health, Inc. Silicon Valley CA
Woopie Silicon Valley CA
Wordnik, Inc. Silicon Valley CA
Wrike Inc Silicon Valley CA
Xangati Silicon Valley CA
XLumena Inc Silicon Valley CA
Yub Inc Silicon Valley CA
Zenverge Inc Silicon Valley CA
Zepp Labs Inc Silicon Valley CA
Zero Motorcycles Inc Silicon Valley CA
Zosano Pharma Inc Silicon Valley CA
But not one: S.A., GmBH, SARL,
A.G.!!
Examples of Foreign Corps
being invested, relocating
to Silicon Valley
Ustream (Hungary)-
MountainView
UxPin (Poland) -
Sunnyvale

11. 6/10/2014 11
Why Silicon Valley:
IT Cyprus Company:
iOS/MSDOS/Android – All
U.S.A.

12. DIFFERENT CORPORATE CULTURES
Europe vs. U.S.A.
 Limited Choices in Corporate Structures
 Public/Private/Representative Office
 One country, one presence
 Cash Compensation Model
 Low probable Exit Strategy
 Registration Culture
 Different Entities – C-corp, non-profit, LLC,
LLP
 Capitalization – preferred/common, initial $
 Multiple States, Agent (Foreign), registrations
 Employment Contracts, Term sheets
 Complex shareholder agreements, corporate
control – votes vs. actual shares
 ISO Compensation Model – High Probable Exit
Strategy
6/10/2014 12

13. 6/10/2014 13
WHAT NOT TO DO
Not Register: Viclone (Spain) – Northrop Grummon, multi-
lingual CRM
WHAT TO DO
Incorporate:
MaxGen International (Russia) – online Travel, PayPal-Bank
of the West
Corporate creations, Contracts, IP registrations,
Subsidiary: Gain Access to U.S. markets by Local Presence
WAZE – Google acquisition
Joint Ventures – Distribution Agreements:
Liftforward Inc. –JV- with Medical Groups –
P2 Convertible Note Capital, Corporate-Securities-
Contracts management, expansion with medical
companies and SMBs platforms

14. U.S. Business Presence Issues
 What type of entity? Which State?
 Product being Sold – Software, Hardware
 Registration in the State to Litigate
 Contracts B to B where are you going to litigate?
 Work for Hire, Local employees, 23%, size of company --- over 50, employee handbooks
 Capital, money transfer, taxes
 International treaties related to taxes
 Domestic companies
 Offshore entities
 Foreign investors
 International Treaties re IP
 Business culture – most things in the U.S. by lawyers, Europe relies on Napoleonic Code
6/10/2014 14

15. CONCLUSION
 Acknowledge Different Corporate Cultures
 Careful of complex Term Sheets, equity distribution and proxy votes
 U.S. based companies preference
 Careful of Deals with other U.S. companies
6/10/2014 15

16. Muito Obrigado!
Gracias!
Thank You!
 Juan Ramon Zarco
 650-843-9212, jrzarco2001@yahoocom
6/10/2014 16