How To Beat Silicon Valley - Global Venture Capital Trends 2018
1. HOW TO BEAT…
VITALY M. GOLOMB
@vitalyg || FB/VitalyGolomb
www.AcceleratedStartup.me
2. Author of Accelerated Startup (2017)
Contributing Writer @ TechCrunch
Supervisory Board @ Ukraine Venture Capital Association
Previously: Founding Partner and a 3X CEO
B.A. in Computer and Video Imaging @ Cogswell College
Venture Capital @ UC Berkeley Haas School of Business
Vitaly M. Golomb
Managing Director and
Global Head of Principal Investments
4. 3RD INDUSTRIAL REVOLUTION CHANGES EVERYTHING
2007-
3rd INDUSTRIAL
REVOLUTION
CONVERGENCE,
EXTERNAL NEURAL
NETWORKS
CYBER-PHYSICAL
SYSTEMS
1969-2000
DIGITAZATION
OF ECONOMY
ELECTRONICS,
AUTOMATED
PRODUCTION
1st INDUSTRIAL
REVOLUTION
1760-1840
STEAM, WATER,
MECHANICAL
PRODUCTION
EQUIPMENT
1860-1914
2nd INDUSTRIAL
REVOLUTION
DIVISION OF LABOR,
ELECTRICITY,
MASS
PRODUCTION
COMMUNICATE
+ MANAGE
ECONOMIC ACTIVITY
POWER + FUEL
ECONOMIC ACTIVITY
MOVE
ECONOMIC ACTIVITY
PRINTING PRESS
TELEGRAPH
COAL STEAM OIL FOSSIL
FUELS
TELEPHONE
RADIO
COMBUSTION ENGINE
AUTOMOBILE
STEAM POWERED
RAIL
INTERNET UBIQUITY
RENEWABLE ENERGY
AUTONOMY
WE
ARE
HERE
5. It is easier to startup
anywhere today
Than in 1999
in Silicon Valley
6. Hacker Rank Best Developers
1. China 2. Russia 3. Poland 4. Switzerland 5. Hungary 6. Japan 7. Taiwan 8. France 9. Czech Republic 10. Italy 11. Ukraine
12. Bulgaria 13. Singapore 14. Germany 15. Finland 16. Belgium 17. Hong Kong 18. Spain 19. Australia 20. Romania
Algorithms 1. Russia 2. Poland 3. China 4. Switzerland 5. Taiwan
Artificial Intelligence 1. Japan 2. Belgium 3. Vietnam 4. Russia 5. Ireland
US News & World Report Best Global Universities 2017
BIOLOGY, COMPUTER SCIENCE, CHEMISTRY, ENGINEERING, MATERIAL SCIENCE, MATH, PHYSICS, SPACE SCIENCE
Harvard, MIT, Stanford, Princeton, UC Berkeley, Georgia Tech, University of Texas, Cornell
University of Toronto Cambridge, Oxford Marie Curie University Ecole Polytechnic Federal Lausanne
Fudan, Trinsghua, Peking, Zhejiang, Harbin, Shanghai Jiao Tongu City University of Hong Kong Nanyang, National University of Singapore
THE NEXT WAVE NEEDS GLOBAL TECHNICAL TALENT
COMBINED WITH THE RAPID GROWTH MODEL OF SILICON VALLEY
15. A STARTUP IS...
AN EXPERIMENT IN SEARCH
OF A BUSINESS MODEL- STEVE BLANK
16. SCALABLE
STARTUP
TRANSITION COMPANY
BUSINESS MODEL FOUND
PRODUCT/MARKET FIT
REPEATABLE SALES MODEL
MANAGERS HIRED
BREAK-EVEN
PROFITABLE
RAPID SCALE
NEW SENIOR MANAGEMENT
~150 PEOPLE
“A STARTUP IS NOT A SMALLER
VERSION OF A LARGE COMPANY”- STEVE BLANK
17. THE TECHNOLOGY LIFE CYCLE “S CURVE”
PRODUCTPERFORMANCE
TIME/EFFORT/INVESTMENT/EXPERTISE
RESEARCH
MATURITY
INNOVATION SWEET SPOT
- RAPID PRODUCT
& MARKET DEVELOPMENT
- NEW SOLUTIONS
- SHORT PRODUCT LIFE CYCLES
- LOWERING BARRIERS TO ENTRY
22. CITIES VS. COUNTRIES
Source: “Clusters and the New Economics of Competition”, Michael Porter, Harvard Business Review
23. Large Pools of
Private Capital
Source: Jerome S. Engel
WHAT IS AN INNOVATION CLUSTER?
Entrepreneurs
Venture
Capitalists
Major Corps/
Strategic Investors/
R&D Centers/
Potential Acquirers
Universities
Government
Professionals
Management
Public Stock
Markets
24. THE ECONOMIC IMPACT OF
VENTURE CAPITAL
Source: ILYA A. STREBULAEV and WILL GORNALL
VC-BACKED COMPANIES AS A PERCENTAGE OF
PUBLIC U.S. COMPANIES FOUNDED SINCE 1979
25. WHAT ENTIRE INDUSTRIES ARE BEING REINVENTED
“IN 10 YEARS, 75% OF THE FORTUNE 500 WILL BE
COMPANIES THAT HAVEN’T BEEN STARTED YET”
-BCG
41. 3 SPEED WORLD BY 2030:
DIFFERENT REGIONS, DIFFERENT ISSUES
United States
(speed 1)
Brazil
Europe
(speed 1)
Russia
India Japan
China
(speed 2)
Sub-Saharan
Africa
(speed 3)
2.1%
Medical, AI, ICT,
Batteries
Global leadership
Innovation
GDP growth
2030
3.68%
Leapfrog technologies
Digital currency
Quality of life
Security
GDP growth
2030 5%
AI, Robotics,
Batteries
Global leadership
Energy & resources
GDP growth 2030
1.62%
Cloud market
Renewable energy
Resource efficiency
Digital single market
GDP growth
2030
Real GDP 2010 Real GDP 2030
48. Develop a
model for
how the
flatworm
regenerates
Source: Wired Source: Wired
100 YEAR OLD SCIENCE PUZZLE
SOLVED BY ALGORITHM IN 42 HOURS
49. 1000 units of
Pepper, the human-
like robot that feels
emotions, sold out
in a minute.
Source: PC World
2015 - FIRST ROBOT
TO RECOGNIZE AND
MIMIC HUMAN
EMOTION
50. 3D TRANSFORMATION
DRIVING THE NEXT INDUSTRIAL REVOLUTION
Today
Industrial
Revolution
Blueprint design
and mass production
3D
Transformation
Immersive and easier design
and Proto-type & Final Part
“Digital” production
Handmade
and time intensive
Pre-
Industrial
Internet
Computer aided design
and JIT machine production
Next
Industrial
Revolution
Democratization of
Design and Ubiquitous
production
56. DISRUPTIVE USECASES = DIGITAL TRUST
P IDENTITY
P NOTARY
P DIGITAL ASSETS/SECURITIES
P SMART CONTRACTS
P DIGITAL VOTING
P DISTRIBUTED STORAGE
O AND LOTS OF BULLSHIT