Humberto GarciaSjogrim 96

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Humberto Garcia-Sjogrim 96
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U.S. Venture-backed Investments 1996 - 2000
1997
1998
1999
2000
1996
Source PricewaterhouseCoopers MoneyTree Survey
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How to Form Your Very Own Silicon Valley-- By
Laura Lemay

• Step 1 Go to Menlo Park. Find a tree.Step 2
  Shake the tree. A venture capitalist will fall
  out.Step 3 Before the venture capitalist
  regains its wits, recite thefollowing
  incantation "Internet! Electronic
  Commerce!Distributed Enterprise-Enabled
  Applications! Java!"Step 4 The venture
  capitalist will give you four million
  dollars.Step 5 In 18 months, go public.Step
  6 After you receive your check, go back to Menlo
  Park. Find a tree.Step 7 Climb it. Wait.

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Its a long, tough road

• Chances are 6 in 1 million that an idea for a
  high-tech businesses eventually become a
  successful company that goes public.
• VCs fund, on average, 6 out of each 1,000
  business plans they receive.
• Of the start-ups that get to an IPO, the median
  company takes 3-5 years.

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Succeeding in todays environment

• Focus on fundamentals
• Experienced Management
• Customers
• Large Market
• Clear and quick path to profitability

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Building a successful company

• Idea (vision) Closing Incorporating
• Kitchen table Finding a home
• Founders commitments Start up
• Quit job
• Business Plan 2nd Round
• Management Launch 1st product
• Seed Capital Raise working capital
• IPO

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Common mistakes

• Hiring your friends
• Thinking that a bunch of MBAs can solve anything
• Dumb money
• Thinking that a fancy presentation means you have
  a good business
• Underestimating customer adoption
• Lack of industry experience