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Silicon Valley Open Doors
Stas Khirman
Managing Partner, TEC Ventures
stas@khirman.com
About Myself
• Moved to the Valley in 1998
• Co-Founded 3 startups, 2 successful exits
– Boeing
– Deutsche Telekom

• Managing Partner at TEC Ventures
• Director @ AmBAR, Co-Chair @ SVOD
• Contact: stas@khirman.com
Silicon Valley & San Francisco
Stanford University
Venture Capital in the Silicon Valley

NVCA & PWC MoneyTree
Venture Capital in the Silicon Valley
Silicon Valley + San Francisco (2012- pwc-MoneyTree):
- 1159 deals (30.7% of US)
- $10.9B (40.4% of US)
- Average deal: $9.5m
Europe (2012 – Dow Jones VentureSource)
- 1074 deals
- $5.8B
- Average deal: $5.4m
Median Pre-Money Valuations
$160
$140
$120
$100

Series C+

$80

Series B

$60

Series A

$40
$20
$2007

2008

2009

2010

2011

2012

Q1'2013

By Leonard Grayver, WSGR, Fenwick
Median Amount Raised
$30
$25
$20

Series C+

$15

Series B
Series A

$10
$5
$2007

2008

2009

2010

2011

2012

Q1'2013

By Leonard Grayver, WSGR, Fenwick
Round A Investors Share
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
2007

2008

2009

2010

2011

2012

Q1'2013
MERGERS & ACQUISITIONS

By Factset Mergerstat LLC
Global Companies
Immigrant-Founded Venture-Backed
Companies by Year of IPO
From National Venture Capital Association report:
• 2006-2012 – 92 IPO companies (33% of US) had one or few foreign born founders
• Rise of about 60% from previous 7 years.

NVCA
Immigrant-Founded Companies in the
Silicon Valley

Kauffman Foundation
Origins of Engineering and Technology Company
Immigrant Founders (Silicon Valley )

Kauffman Foundation
Palo Alto, Ancestry…

Russia: 2,425 (3.88 %)
Palo Alto, Ancestry…

Ukraine: 563 (0.90%)
Palo Alto, Ancestry…

“Russians”: 2.998(4.78 %)
Palo Alto, Ancestry…
18.00%
16.00%
14.00%
12.00%
10.00%
PALO ALTO

8.00%

USA
6.00%
4.00%
2.00%

IC
AN

AM
ER

H
LIS
PO

TT
IS
H
SC
O

N
IT
AL
IA

H
EN
C
FR

IN
DI
AN

US
SI
AN
"
"R

IR
IS
H

AN
GE
RM

IS
H
EN
GL

CH

IN
E

SE

0.00%
Map.AmBARclub.Org
Map.AmBARclub.Org
Partnerships
SVOD Conference
Silicon Valley Open Doors!
December 3-4, 2013
Computer History Museum

NOT TO BE MISSED EVENT!

http://svod.org/
Investors & Startups

http://svod.org/
SVOD Success Stories
• Evernote – SVOD2005 presenter!
• Viewdle – First Ukrainian startup acquired by
Google
• Wrike – just got $10m investment
• Wikimart, OkToGo, GetGoing – first major
investments at SVOD!

http://svod.org/
Silicon Valley Open Doors
Q&A

stas@khirman.com
info@svod.org

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IDCEE 2013: Silicon Valley Open Doors - Stas Khirman (CTO @ Deutsche Telekom Hosted Business Services & Managing Partner @ TEC Ventures)

Notes de l'éditeur

  1. SF->SJ = 50 MILES OR 80KM
  2. http://www.theatlanticcities.com/jobs-and-economy/2013/06/americas-top-metros-venture-capital/3284/
  3. http://www.pwc.ru/ru_RU/ru/technology/publications/moneytree-april-2013.jhtml
  4. [Substantially higher in 2012 than in 2010 and 2011. And going up in 1st quarter of 2013. Especially for the later rounds.  So this is good news for entrepreneurs. There are several reasons for the increase in valuation. Economy is improving; the “instagram effect” and pinterest effect; successful second or third time founders commanding higher valuations. Perhaps the best explanation is the fact that companies use their money more efficiently than before and seek to raise new rounds later in the company’s life, in terms of technology development, achieving milestones, etc. This translates into a higher valuation]
  5. What’s the most important take away from this discussion? It’s that in initial and follow on financings, the founders get to keep more of the company. It’s math. The percentage of the company investor gets equal the amount of investment divided by the pre-money valuation. My friends at WSGR have come up with a very nifty graph, which I’ve reproduced below. The graph shows the company ownership after the first round of financing.  This graph assumes that 15% of the company is reserved for stock options issuances, which usually comes out of the founders’ shares.
  6. http://www.siliconvalleyindex.org/index.php/economy/entrepreneurship
  7. http://viodi.com/2011/09/28/global-telcos-come-to-silicon-valley-in-search-of-innovation-and-partnerships/Telecom companiesBritish TelecomFrance Telecom-OrangeDeuchetelekomSamsungNokiaSonySiemense
  8. http://www.kauffman.org/entrepreneurship/foreign-born-entrepreneurs.aspx
  9. http://venturebeat.com/2012/10/15/how-indians-defied-gravity-and-achieved-success-in-silicon-valley/#ZSdtRrjDA5OctiKA.99http://www.kauffman.org//uploadedFiles/Then_and_now_americas_new_immigrant_entrepreneurs.pdfhttp://papers.ssrn.com/sol3/papers.cfm?abstract_id=2159875Then and Now: America's New Immigrant Entrepreneurs, Part VIIVivekWadhwaCenter for Entrepreneurship and Research Commercialization, Pratt School of Engineering; Stanford University - Arthur & Toni Rembe Rock Center for Corporate GovernanceAnnaLeeSaxenianUniversity of California, Berkeley - School of InformationFrancis Daniel Siciliano IIStanford Law School
  10. http://zipatlas.com/us/ca/palo-alto.htm#ancestry
  11. Founded in 2002Over 10,000 membersAmBAR (American Business Association of Russian-speakingProfessionals) is the largest Russian-speaking business associationthat serves as a networking platform to facilitate the exchange ofknowledge and ideas among technology entrepreneurs, professionals, andangel/VC investorsSergey BrinMax LevchinPhil Libin
  12. Founded in 2002Over 10,000 membersSergey BrinMax LevchinPhil Libin
  13. Founded in 2002Over 10,000 members
  14. Founded in 2002Over 10,000 members
  15. Founded in 2002Over 10,000 members