How to getVenture Capital

Investmentin the Silicon Valley

jorge.zavala@techba.comjorge@zavala.com.mx

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• Global High Tech Business Development• Fast ecosystem for development of

commercial capabilities for the companies participanting in the program

• A program sponsored by the Minister of Economy of Mexico. The program is operated by the US Mexico Foundation for Science (FUMEC)

What is TechBA

Discover new opportunities

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TechBA Silicon Valley gives you the knowledge to start exploring new markets and expand your company's business to the U.S. and beyond.

• Provides the necessary Mentoring to achieve your goals

• Help you in establishing a Total Sales Process aligned to markets

• Guide you to create the Market Strategies to identify and penetrate opportunities

• Search with you how to build an Effective Management Team

• Focus your energy in establishing a Business Development/Financial process

CommunicationNetwork

InnovativeGlobal

Company

eTechBA – The TechBA echosystemLocal OperationLocal Operation AwarenessAwareness

TransformationTransformationPerforming in the global environmentPerforming in the global environment

Are you looking to build a great company?

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What kind of company?

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Where do you want to go?

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What is your dream?

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What are you willing to give up to achieve your dream?

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Do you have a team?

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What is more important to make your company

successful?

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Is your idea good for a VC?

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Publishing a Blog

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What is NOT interesting for a VC

Fancy Hands - Personal Assistants in the Cloud

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What is NOT interesting for a VC

8 Startup Lessons from Constant Contact

• If an investor tells you that you can’t build a real business on $20/month, direct them to Constant Contact

• SAAS (Software as a Service) startups need to focus on getting on past what Gail calls the slow ramp of death

• The trick is to give experiments enough time to prove themselves.• Get a CEO peer group to bounce ideas off of as soon as possible• If your product is strong enough, people do not need to be sold.• There are no silver bullets, just many “A-ha” moments.• A startup CEO’s only important job is what Gail calls searching for

the model• Raising money from institutional investors is all about working

the entire partnership, not just your single partner.15

With more than 350,000 customers, Constant Contact is a publicly traded company (Nasdaq: CTCT)

JackBe

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The traditional VC world

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http://www.mercurynews.com/business

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2Q 2010

229 Deals$ 2,826,005,100 Dollars

Investment Flow

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Founder Angel Venture

Seed Series A Series B Series C

MarketValidation

Prototype TeamBuild out

CustomerShipments

Expansion

FFF

What will a VC ask you?

• Great management team

• A product with a big and profitable market

• Local Company

• 5X or 10X exit

• Clear exit strategy– M&A– IPO

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Build wealth not just survive

The new VC world: the lean startup

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Customer Development Cycle

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Customer Discovery

• Existing Market

• Re-segmented Market– Low Cost– Niche Market

• New Market

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The Future of Startup Funding

• Seed approach – Ycombinator• Angels doing bigger rounds, VCs doing smaller

round• Super-Angels: they work as a VC with large

investment than Angels• Wait till the startup is ready for investment

– Too late to invest // missing the boat

• Better startup founders than VCs managers

26http://www.paulgraham.com/future.html

http://thestartupdigest.com/

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Chris McCannchris@thestartupdigest.com

startupSQUARE Get your startup started!Tools and Services Main

http://www.startupsquare.com/

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Espacios de Innovación en Línea

http://www.symbyoz.com/Online notebook for Social Collaboration

Random Hacks of Kindness: Hacking for Humanity

December 4th and 5th, 2010 What is Random Hacks of Kindness? Random Hacks of Kindness (RHoK) is a unique collaboration between Google, Microsoft, Yahoo! and the World Bank dedicated to using technology to make the world a better place by building a volunteer community of innovation. RHoK brings the ever-growing global hacker community together with experts in disaster risk management with to identify critical global challenges, and develop software to respond to them. A RHoK hackathon event draws on the talents and initiative of the best and the brightest hackers from around the world, who volunteer their time to respond to real-world problems with solutions that can have an immediate impact on the ground.

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References

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Where to find about startups that have been funded?

• Vator.tv - Voice of the Entrepreneur -- vator.tv• CrunchBase, The Free Tech Company Database --

www.crunchbase.com• VentureBeat Profiles - Discover find and share information

about new top startups and companies -- venturebeatprofiles.com

• PricewaterhouseCoopers- Global- Insights & Solutions- MoneyTree™ Survey Report -- https://www.pwcmoneytree.com

• This Week In Startups -- thisweekin-startups• This Week In Venture Capital -- thisweekin-venture-capital• Mastering the VC Game by Jeffrey Bussgang

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The new VC world is around the lean startup

• The Future of Startup Funding -- http://www.paulgraham.com/future.html• Lessons Learned -- www.startuplessonslearned.com• Startup Lessons Learned Conference -- www.sllconf.com• Startup Lessons Learned - Videos -- http://www.justin.tv/startuplessonslearned/videos • Building a Lean Startup -- http://www.slideshare.net/ashmaurya/building-a-lean-startup• Lean Startup Machine – NYC - Market By Numbers - Marketing Help -- lean-startup-

machine-nyc• startupSQUARE – Get your startup started!- Tools and Services Main --

http://www.startupsquare.com/• How to Build a Data-Driven Startup -- http://davidcancel.com/data-driven-startups/• Practice Trumps Theory- Lean Startup + Customer Development + Bootstrap --

www.ashmaurya.com• Customer Development Survey -- survey.io• http://thestartupdigest.com/• http://www.paulgraham.com/future.html -- a great reference of new business creation

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How to get Venture Capital Investmentin the Silicon Valley

jorge.zavala@techba.org jorge@zavala.com.mx

Thanks!San Jose, California, USA

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Presentation available in http://www.slideshare.net/zavala55

Examples

• Venture Focus– JackBe– Aonori Aquafarm– Echopixel

• Bootstrapping Companies– Xpertal– SCIO– InfoLink

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