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Altos Business Group
Silicon Valley & Startup
Feb. 2014

9272 Jeronimo Rd. #109
Irvine, CA 92612
T. 408-761-4216
www.altosbusiness.com
hpark@altosbusiness.com
Altos Business Group
Altos Business Group (“ALTOSBIZ”) is an US based
Korean-American management and business consulting
firm specialized in facilitating business relationships
between Korean and US companies.

ALTOSBIZ provides Korean companies with resources and
in-depth knowledge of US market, business cultures and
practical help on how to adapt to, and function in US
business environments.

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley: Map

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Facts

• Size : 4,800 Km²
• Population : 2.9 Million
• No of Hi-tech jobs: 850,000
• Median household Income : $ 88,000
• Asian Population : App. 30%
• Koreans in Silicon Valley : App. 40 ~ 50K
• More than 1,000 High Tech Company HQs
• 22% of US exports ($334 Trillion)

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Waves of Innovation
5th Wave : Mobile, SNS
(Facebook, Groupon)

4th Wave : Internet, Web
(Netscape, Yahoo,
Amazon, Google)

2010

2000
3rd Wave : PC
(Apple, Silicon Graphics)

1990

1980
2nd Wave : IC
(Fairchild, Intel)
1st Wave : Defense
(HP, Varian)

1970
1960

1950
1940

1930

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Eco System

Idea

R&D

Law &
Regulation

Capital

Human
Resources

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Startup Funding Source
Self Funded
13%

Bank
1%

Accelerator
5%

Friends &
Family
22%

Incubator
6%

VC
16%
Super
Angel/Mini VC
12%

Angel
25%

65% from Institutions

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : VC Funds

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Funding Share

New Venture Incubation Center

New Corporate Intro.
Venture Incubation Center

Feb. 2014 2012
September

Aug. 2013
September 2012
New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Venture Capital Financing 2012

TOTAL Amount

$ 11.2 Billion

Median Valuation

$ 18.0 Million

Median Funding Size

$ 3.7 Million

Number of IPO

16

Median IPO Valuation

$ 78.4 Million

Number of M & A

128

Median M & A Price

$ 54.0 Million

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley : Funding
Funding Process

TechStars

Angels &
Incubators
($0-10M)

Y-Combinator

FF Angel
Garage Tech Ventures

Seed Funds
($10-50M)

SoftTech

FF I
First Round Capital

Small VC Funds
($50-250M)

Union Square Ventures

FF II
Sequoia

Traditional VC Funds
(>$250M)

Benchmark

New Venture Incubation Center

Feb. 2014 2012
September
Korean Startups Funded by Silicon Valley VCs

New Venture Incubation Center

Feb. 2014 2012
September
New Venture Incubation Center

Feb. 2014 2012
September
New Venture Incubation Center

Feb. 2014 2012
September
New Venture Incubation Center

Feb. 2014 2012
September
Success Story

Gameville USA (2006)
Baseball Game : CBS Sportline (2009)
Expand to Mobile
 2012 : US Sales  $ 25 Mil
New Venture Incubation Center

Feb. 2014 2012
September
Success Story

 BilltoMobile (2008)
 Technology Transfer
Local Fund Raising : $ 9.5 Mil
 2011 : Closed deal with 4 telecom majors

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley can be your Death Valley !

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley: Real World

New Venture Incubation Center

Feb. 2014 2012
September
Dark Side

 Lessons…

New Venture Incubation Center

Feb. 2014 2012
September
Silicon Valley: Not a Paradise
• Number of jobs is still declining in SV.
• Silicon Valley is a small part of the market.
• Cost is very high.
• Data over insight
• You are unknown.. No friend/ No family
• Language
• Success in Korea is not counted.
• Short term result oriented.
• Identical incubators & accelerators with cold mind
• Fall of Angels

New Venture Incubation Center

Feb. 2014 2012
September
Doing Startup in Silicon Valley: Final Thoughts
Think big!

Think globally but act locally!
Think collaboratively!
Wealth sharing is important.
Build your own human network.
Failure is a vital learning process.

Make your company always for sale.

Work hard!!! Play hard!!!! Incubation Center
New Venture

Feb. 2014 2012
September

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Part1.startup us entry overview1 박한진 2014.02.18 (BLT & RoA seminar)

  • 1. Altos Business Group Silicon Valley & Startup Feb. 2014 9272 Jeronimo Rd. #109 Irvine, CA 92612 T. 408-761-4216 www.altosbusiness.com hpark@altosbusiness.com
  • 2. Altos Business Group Altos Business Group (“ALTOSBIZ”) is an US based Korean-American management and business consulting firm specialized in facilitating business relationships between Korean and US companies. ALTOSBIZ provides Korean companies with resources and in-depth knowledge of US market, business cultures and practical help on how to adapt to, and function in US business environments. New Venture Incubation Center Feb. 2014 2012 September
  • 3. Silicon Valley: Map New Venture Incubation Center Feb. 2014 2012 September
  • 4. Silicon Valley : Facts • Size : 4,800 Km² • Population : 2.9 Million • No of Hi-tech jobs: 850,000 • Median household Income : $ 88,000 • Asian Population : App. 30% • Koreans in Silicon Valley : App. 40 ~ 50K • More than 1,000 High Tech Company HQs • 22% of US exports ($334 Trillion) New Venture Incubation Center Feb. 2014 2012 September
  • 5. Silicon Valley : Waves of Innovation 5th Wave : Mobile, SNS (Facebook, Groupon) 4th Wave : Internet, Web (Netscape, Yahoo, Amazon, Google) 2010 2000 3rd Wave : PC (Apple, Silicon Graphics) 1990 1980 2nd Wave : IC (Fairchild, Intel) 1st Wave : Defense (HP, Varian) 1970 1960 1950 1940 1930 New Venture Incubation Center Feb. 2014 2012 September
  • 6. Silicon Valley : Eco System Idea R&D Law & Regulation Capital Human Resources New Venture Incubation Center Feb. 2014 2012 September
  • 7. Silicon Valley : Startup Funding Source Self Funded 13% Bank 1% Accelerator 5% Friends & Family 22% Incubator 6% VC 16% Super Angel/Mini VC 12% Angel 25% 65% from Institutions New Venture Incubation Center Feb. 2014 2012 September
  • 8. Silicon Valley : VC Funds New Venture Incubation Center Feb. 2014 2012 September
  • 9. Silicon Valley : Funding Share New Venture Incubation Center New Corporate Intro. Venture Incubation Center Feb. 2014 2012 September Aug. 2013 September 2012
  • 10. New Venture Incubation Center Feb. 2014 2012 September
  • 11. Silicon Valley : Venture Capital Financing 2012 TOTAL Amount $ 11.2 Billion Median Valuation $ 18.0 Million Median Funding Size $ 3.7 Million Number of IPO 16 Median IPO Valuation $ 78.4 Million Number of M & A 128 Median M & A Price $ 54.0 Million New Venture Incubation Center Feb. 2014 2012 September
  • 12. Silicon Valley : Funding Funding Process TechStars Angels & Incubators ($0-10M) Y-Combinator FF Angel Garage Tech Ventures Seed Funds ($10-50M) SoftTech FF I First Round Capital Small VC Funds ($50-250M) Union Square Ventures FF II Sequoia Traditional VC Funds (>$250M) Benchmark New Venture Incubation Center Feb. 2014 2012 September
  • 13. Korean Startups Funded by Silicon Valley VCs New Venture Incubation Center Feb. 2014 2012 September
  • 14. New Venture Incubation Center Feb. 2014 2012 September
  • 15. New Venture Incubation Center Feb. 2014 2012 September
  • 16. New Venture Incubation Center Feb. 2014 2012 September
  • 17. Success Story Gameville USA (2006) Baseball Game : CBS Sportline (2009) Expand to Mobile  2012 : US Sales  $ 25 Mil New Venture Incubation Center Feb. 2014 2012 September
  • 18. Success Story  BilltoMobile (2008)  Technology Transfer Local Fund Raising : $ 9.5 Mil  2011 : Closed deal with 4 telecom majors New Venture Incubation Center Feb. 2014 2012 September
  • 19. Silicon Valley can be your Death Valley ! New Venture Incubation Center Feb. 2014 2012 September
  • 20. Silicon Valley: Real World New Venture Incubation Center Feb. 2014 2012 September
  • 21. Dark Side  Lessons… New Venture Incubation Center Feb. 2014 2012 September
  • 22. Silicon Valley: Not a Paradise • Number of jobs is still declining in SV. • Silicon Valley is a small part of the market. • Cost is very high. • Data over insight • You are unknown.. No friend/ No family • Language • Success in Korea is not counted. • Short term result oriented. • Identical incubators & accelerators with cold mind • Fall of Angels New Venture Incubation Center Feb. 2014 2012 September
  • 23. Doing Startup in Silicon Valley: Final Thoughts Think big! Think globally but act locally! Think collaboratively! Wealth sharing is important. Build your own human network. Failure is a vital learning process. Make your company always for sale. Work hard!!! Play hard!!!! Incubation Center New Venture Feb. 2014 2012 September