Ron Leckie & Ian Myles

Transcription

1 Ron Leckie & Ian Myles 1

2 Ron Leckie Independent analyst and consultant to technology companies Specializing in strategic marketing, business development, diligence studies, etc. Over 30 years of experience in semiconductor & equipment sectors Education: BScEE at Heriot Watt University, Edinburgh Ian Myles Independent consultant providing management accounting and business advisory services Over 30 years of management accounting experience at companies in High Tech and Software development Education: BA at Heriot Watt University, Edinburgh 2

3 Doing Business in Silicon Valley Logistics, organization, legal, tax Marketing á la Silicon Valley Style, approach, energy, creativity Funding in Silicon Valley Start-up environment, Angels, VCs 3

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5 Establishing a Presence How to Structure Compliance Surviving 5

6 Population: California 36 million SF Bay Area 7 million San Jose 950,000 6

7 Air 3 International airports San Francisco (SFO) World wide and will connect direct to Europe and the Far East and Pacific Oakland (OAK) Mainly domestic routes and west coast San Jose (SJC) Direct to Central and South America and with connections world wide Wide cultural diversity 7

8 Virtual / Real Short / Long term Incubator units: UK Regional Development Organizations San Jose Software Business Cluster US Market Access Center Pick the right location to work / live 8

9 Plan ahead! Get advice! Basic forms of business here in California are: Corporations ( C Corp, S Corp) Limited Liability Companies (LLC) Partnerships Sole proprietorships Business Licenses City County State Must Register with Secretary of State for California 9

10 Taxation Income (Federal, State) Sales and Use Tax Payroll (Federal, State) Property Custom / Import and UK tax Federal Employment Laws (Federal, State) Immigration Social Security Worker s Comp. Insurance - other State Local 10

11 Use the Network! Professional Services Banks Bank of America, Wells Fargo, Bank of the West, Union Bank Silicon Valley Bank, Comerica Accountants PWC, Deloitte, EY, KPMG BDO, Grant Thornton Lawyers Cooley Godward, Wilson Sonsini Goodrich & Rosati, Pillsbury Winthrop Shaw Pittman 11

12 If you are thinking about doing business in Silicon Valley... Call us first! If we can help, we will If we can t - we ll try to find someone who can We are an untapped asset in California We can be your Silicon Valley connection 12

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14 Casual but professional Thoroughly prepared Active listeners, very responsive Crisp, clear positioning elevator pitch, presentations Network, network, network Business associations, ethnic groups (GS, BABC), Effective use of multi-level selling Motivated, creative, risk-takers Embrace change, adapt, re-invent 14

15 Sales & Support Marcom Investor Relations Mfg. Product Mktg. Corp. Mktg. Engineering 15

16 Product Definition Roadmap, customer/market requirements ROI analysis/justification Product Positioning Branding, sales collateral, presentations Tech notes, articles, applications Product (Lifecycle) Management Transitions, enhancements, releases, launch Pricing, configuration, forecasting 16

17 Strategic Vision, Mission, Image/Branding Served markets, share objectives, Tactical Perception analysis Corporate standards Selection & application of logos, colors, style Branding & messaging Community image (customer, investor, local) 17

18 Tactical Communications Branding Design (logos, application ) Industrial Design (colors, lines ) Advertising PR Website Trade Shows Conferences, events. 18

19 Strategy to coordinate: Qualification Finances, opportunity, can I provide value? Positioning Problem, competition, differentiated, value, to whom? Alignment Customer criteria, power base, their agenda Closing Overcome objections for ready, willing, able customer 19

20 Silicon is a misnomer today The Valley reinvents itself periodically Multiple industries Silicon, systems, software, multi-media, infotech, biotech, nanotech, etc Style and energy apply to all Entrepreneurship is still strong 20

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22 Angel / Seed funding Venture Capital funding Most Entrepreneurs come from Industry Minority are from University spin-outs Lack of success = experience (NOT failure) Strong Support Infrastructure: Will work for Stock Free advice, seminars, etc. 22

23 Modest equity stake for seed funding Experienced and wealthy individuals: Hands-on expertise + money 227,000 US angels put $23B into startups (2005) Groups: e.g. Keiritsu Forum, Band of Angels, etc. Collaborative diligence, diverse expertise Assign hands-on support Committee effect 23

24 Over 1/3 of all VC activity and 1/2 of US VC firms are located in Silicon Valley Rigorous diligence Focused agendas Market + Technology + Team Control vs. Valuation Some looking to Europe for technology Pond Ventures, Vision Capital, 24

25 UK Enterprise Capital Fund (ECF) initiative 4 of 5 new funds awarded: Seraphim Amadeus Capital Partners IQ Capital 21st Century Sustainable Technology Growth Fund Gov t up to 2:1 for up to 30M ea. Bridges the Angel to VC gap ( 250k - 2M) Follow-on initiatives of another 100M planned 25

26 Think Globally, Act Locally Manage effectively across time zones If your market is strong in Silicon Valley - be there If not, learn from their successes and apply them Use the networks: Regional Dev., BABC, individuals, trade associations Be open to commercialization expertise & input Be well prepared for success Learn from mistakes Adapt to changing markets - one size does not fit all 26

27 Ron Leckie & Ian Myles