Silicon Valley Startup Ecosystem Boston Startup Ecosystem How to Leverage the East Cost startup Ecosystem East v. West Boston’s Top Accelerators, Incubators, and Startup Programs Artificial Intelligence in Boston – An Overview of Startups, Funding, and Trends Spark Blockchain Investment Key Agenda Investor’s View of Startup KSF Investor’s Tips for Startup Pitches Investor’s View of Startup Valuation Investor’s View of AI Investment Investor’s View of Blockchain Investment Boston AI & Blockchain Angel & VC Information STO (Security Token Offering) SEC STO Fund Raising Compliance Launching A STO in the US

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Boston & Silicon Valley
Blockchain & AI
Startup Ecosystem
&
Investment Trends
November 13, 2019
Alex G. Lee (alexglee@techipm.com)

2. ©2019 TechIPm, LLC All Rights Reserved www.techipm.com
Startup Ecosystem

3. Silicon Valley Startup Ecosystem
https://www.meetup.com/Silicon-Valley-Startup-Idea-to-IPO/

4. Silicon Valley Startup Ecosystem
https://www.meetup.com/sventrepreneurs/

5. Silicon Valley Startup Ecosystem
https://www.meetup.com/Founder/

6. Silicon Valley Startup Ecosystem
https://www.meetup.com/San-Francisco-Bitcoin-Social/
https://www.meetup.com/Starfish-Mission/

7. Silicon Valley Startup Ecosystem
https://www.meetup.com/San-Francisco-Bitcoin-Social/
https://www.meetup.com/Silicon-Valley-Machine-Learning/

8. Boston Startup Ecosystem
https://www.meetup.com/Boston_New_Technology/
https://www.meetup.com/startupalooza/

9. Boston Startup Ecosystem
https://www.meetup.com/Boston-Blockchain-Association/

10. Boston Startup Ecosystem
https://www.meetup.com/Boston-Blockchain-Meetup/
https://www.meetup.com/Hyperledger-Boston/

11. Boston Startup Ecosystem
https://www.meetup.com/Boston-Artificial-Intelligence-Deep-Learning/
https://www.meetup.com/bostonml/

12. How to Leverage the East Cost startup Ecosystem

13. East v. West 1

14. East v. West 2

15. Boston’s Top Accelerators, Incubators, and Startup Programs
Boston Founder Institute (https://fi.co/): the world’s premier idea-stage accelerator and startup
launch program that provides the structure, training, mentor support, and global network
needed to start an enduring company.
Harvard innovation labs (https://innovationlabs.harvard.edu/): an innovation ecosystem for
Harvard students, alumni, and life science majors.
MassChallenge Accelerator (https://masschallenge.org/about-faq): a community of innovators
working together to solve some of the world’s biggest challenges that strengthens the global
innovation ecosystem by accelerating high-potential startups.
MIT Enterprise Forum of Cambridge (https://www.mitforumcambridge.org/about/classes-
mentors-entrepreneurs/mentor-smart/): The MIT Mentor Smart Program assists science and
technology entrepreneurs in moving their ideas forward by assigning them mentors to help with
both long and short term goals.
Boston Startup Accelerators, Incubators, & Support Programs
https://bostonstartupsguide.com/guide/every-boston-startup-accelerator-incubator/

16. Artificial Intelligence in Boston – An Overview of Startups, Funding, and Trends
Source: https://emerj.com/ai-market-research/artificial-intelligence-boston-overview-
startups-funding-trends/
1 – Artificial Intelligence in Boston – The Origins of the Field
2 – How the Boston AI Ecosystem has Changed in the Last 3 Years
3 – The Advantages of Boston as an AI and Startup Hub
4 – The Disadvantages of Boston as an AI and Startup Hub
5 – The State of Startup Venture Investment in Boston
6 – Boston vs. San Francisco – A Comparison
7 – Boston as a Hub for AI and Ethics
8 – The Future for AI in Boston

17. Spark Blockchain
Source: https://sparkincu.com/

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VC & Angel Investment

19. Investment Key Agenda
Financing Your Startup: A venture capitalist
looks for three things in evaluating a startup:
technology, market, and you (team).
The Hero Startup Pitch: It should be
passionate, and clear and convincing, but it also
should be something important.

20. Investor’s View of Startup KSF

21. Investor’s View of Startup KSF

22. Investor’s Tips for Startup Pitches

23. Investor’s Tips for Startup Pitches

24. Investor’s View of Startup Valuation

25. Investor’s View of AI Investment

26. Investor’s View of AI Investment

27. Investor’s View of Blockchain Investment

28. Boston AI & Blockchain Angel & VC Information
Boston Angel Investors: https://angel.co/boston/investors
Boston Venture Capital Investors: https://www.crunchbase.com/hub/boston-venture-
capital-investors#section-overview
Venture Capital and Blockchain Technology in Boston’s Startup Culture:
https://www.americaninno.com/boston/from-the-community-boston/venture-capital-
and-blockchain-technology-in-bostons-startup-culture/
The 10 Top Funded Artificial Intelligence Startups in Boston:
https://www.americaninno.com/boston/the-10-top-funded-artificial-intelligence-
startups-in-boston/

29. STO (Security Token Offering)?
Asset tokenization is to convert the legal rights to assets with economic
value into a digital token. Asset tokenization (security token) represent
shares of ownership in asset.
Potential Benefits
For Investors
Fractioned ownership and divisibility
Programmable tokens
24/7 trading
Improved settlement times
For Issuers
New sources of financing without loosing governance on equity
Making illiquid markets liquid (secondary markets)
Lower costs in transaction and operations

30. SEC STO Fund Raising Compliance
Regulation Amount Investor Requirement/Manner of
Offering
Time Cost Transfer
Limitation
Reg D
506c
unlimited unlimited US
accredited
investors/up to 35
non-accredited
investors
Form D/no general
solicitation(*)
~ 100
days
$50,000 -
150,000(**)
1 year
Reg S unlimited non-accredited
Offshore Investors
subject to local law
(e.g., restrict
investor in China )
no required SEC
registration/Private
Placement
Memorandum (PPM)
and Subscription
Agreement
$20,000 -
$50,000
depending
on
complexity
1 year for
resales into
the US/local
law holding
period
•Issuers can advertise their offerings. But, they do have to verify that anyone who actually invests is an accredited
investor, and investors must prove they are accredited to participate in the offering.
** This includes: (a) preparing all offering documents (b) preparing the purchase agreement for the sale of the
tokens (c) addressing state blue sky laws (d) addressing federal FinCEN money transmission issues (e)
addressing state money transmission issues (each of the 50 states has their own money transmission laws and
some, like New York, have specific laws that apply to virtual currency businesses (f) white paper review (if any).
For (d) and (e), the above estimate does not include any filing and bonding fees.

31. Launching A STO in the US
Explore asset to be tokenized: real estate, business, technology/intellectual
property
Strategic planning the STO: valuation of asset, amount of capital to raise &
offering time frame, designing STO entity structure, type of compliance
Legal compliance
Whitelisting of investors who can be approved to invest (KYC/AML)
Targeted marketing to the right potential investors (experienced broker dealer
for specific asset to be tokenized
Handling the financial reward (dividend payments/tax reporting)
Handling lost private keys (canceling/issuing of tokens & transfer to the new
account)
Implementing data privacy compliance