Main outcomes of the trade mission to Silicon Valley 2011 organized by the City Government of Buenos...

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EVALUATION REPORT:2011 SILICON VALLEY TRADE MISSION RESULTS

1. Technical details of the assessment

General Objectives: Survey the activities and level of satisfaction inTrade Mission to Silicon Valley in 2011

Relieve period: March 2011

Coverage: Participating companies at the Trade Mission

Tipe of study: Face surveys with closed and open questions

Sample size: Thirteen companies

Profile of respondent: CEO´s

1.1. Executive summary

The following report was based on the data processed of 13 quantitative and qualitative survey results.

The questions asked by the Foreing Trade Bureau of Buenos Aires City Government with the objective to relieve the bus nessprojection of the First Trade Mission to Silicon Valley, held from 28th of February to 4th of March of 2011.

The companies profile are heterogeneous, therefore the distribution of businesses and contacts are partially equal. The

evolution of negotiation with each contact will be analyzed during the entire year through the Monitoring Program that thisOffice has implemented on this year.

The Trade Mission was framed from the exploratory field to approach the Buenos Aires ICT sector to this knowledge, innovationand investment U.S Ecosystem.

The profile of Argentine companies was distributed as follows: 69% of the participants develop software and providecomputer services; 23% of them are dedicated to videogame production; and the other 7% produce multimedia content andadvertising.



2. Study results

2.1. The average and the percentage of contacts

The Trade Mission generated a total of 382 contacts wich were distributed with all Argentinians companies. Bigcorporations received the largest volume of percentage record (12.8%). The others percentages were: SMEstechnology companies (11%), Incubators (10.4%), Consultants (10.2%), and Final Consumers (10.2%).

Significantly, the contacts related to the category of investment (angel investors and venture capitals) representedthe 18.2% and 70 meetings were held with such entities.

12.8%

11.0%

9.1% 9.1%10.2%

2.6%

10.2%

8.1%

10.4%

3.4%

1.8%

6.8%

3.6%

C o r p

o r a t e

s

S M E s t e

c h n o

l o g y

c o m p a

n i e s

V C ´ s

A n g e l

I n v e s

t o r s

C o n s

u l t a n t

s

P u b l i s h

e r s

F i n a

l C o n

s u m

e r s

T e c h n o

l o g i c a l p

a r t n

e r s

I n c u b

a t o r s

P u b l i c &

P r i v a

t e E n t i t i e s

N G O ’

s

L a w f i r m

s

O t h e

r s

DISTRIBUTION OF CONTACTS BY CATEGORY (IN THOUSANDS US$)



About the average of contacts that were obtained by Argentinian companies, noteworthy that the distribution was29 contacts, with a minimum of 5 and maximum of 74.

2.2.Businesses during the Mission

The First Trade Mission to Silicon Valley focused on the promotion of the enterprises from Buenos Aires through networking,negotiation and international investment spaces.

Over 15% of the companies have succeeded in sales operations. The average amount of each individual operation was 10,000U.S. dollars.

CONTACTS N

Average

Median

Minimum

Maximum

29.38

30.0

5

74

84.6%

15.4%

Closed

Not

BUSINESSES DURING THE MISSION



2.3. Reasons why there were no commercial operations (in the short term)

The 82.4% of the companies that didn´t close business believes that the reason is: (a) the meetings were for display andpromotions (41.2%); (b) they perceived business possibilites, but they need another instance of negotiation (41.2%).

The 11.8% felt that the counterparts were not suitable. As a consequence, there were not commercial advances becauseproducts and services didn´t match. The remaining 5.9% exposed the fact of being in the product development process andnot being based in San Francisco.

REASONS PERCENTAGE

The products or services were not right for potential partners

Counterparts were not right

The meetings were only for display and promotion

There is commercial potential but have to wait another instance

Others

Total

5.9%

5.9%

41.2%

41.2%

5.9%

100%

41.2%

41.2%

5.9% 5.9%

5.9%

There is commercial potential but have to

wait another instance

Others

The products or services were not right forpotential partners

Counterparts were not right

The meetings were only for display and

romotion

REASONS WHY THERE WERE NO COMMERCIAL OPERATIONS



2.4. Trade barriers in the future

The 26.7% of companies believe that one of the variables that may hinder the realization of sales in this target market is thelack of confidence in investing on projects located in Argentina. Furthermore, the 6.7% of the respondents considered thatmore market information was needed to plan alternative strategies for it´s internationalization.

Regarding the production process, the 6.7% responded that one of the related causes which may hinder the progress of business with the prospects contacted is the lack of structure to generate a greater production scale.

Moreover, the other 60% of the respondents estimate that wouldn´t have problems in closing deals because they are in theprocess of advocacy and negotiation. One of the respondents considered the fact of not being based in San Francisco as themain obstacle to progress in business with the contacts that this company generated in Silicon Valley.

BARRIERS PERCENTAGE

Distrust of investing in Argentina

Low-scale production

Lack of information

Others

Total

26.7%

6.7%

6.7%

60%

100%

6.7%

60%

6.7%

26.7%

Others

Distrust of investing in Argentina

Low-scale production

Lack of information

TRADE BARRIERS IN THE FUTURE



2.5. Sales Projections (medium / long term)

Based on an analysis of projected sales, the 30.8% of the respondents predicted that with this first trip to Si licon Valley wouldgenerate sales of over US$ 1,000,000 and the 42.6% estimate that they would may conduct business over US$ 500,000.

One of the highlights issues of this report is that 10 of 13 CEO´s from Argentinian companies believe that will do business inmedium term with the contacts from the Silicon Valley Trade Mission.

PERCENTAGEProjection (thousands US$)

No

50 to 100

100 to 500500 to 1,000

1,000 to 5,000

More than 10,000

Total

23.1%

15.4%

15.4%

15.4%

23.1%

7.7%

100%

More than 10,000

1,000 to 5,000

500 to 1,000

100 to 500

50 to 100

No

0% 5% 10% 15% 20% 25%

SALES PROJECTIONS (MEDIUM / LONG TERM)



2.6. Interest in setting up in Silicon Valley after the Trade Mission

PERCENTAGE Yes

No

Total

84.6%

15.4%

100%

84.6%

15.4%

No

Yes

INTEREST IN SETTLING IN SILICON VALLEY

Main outcomes of the trade mission to Silicon Valley 2011 organized by the City Government of Buenos...

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