Going Global through Silicon Valley Andrus Viirg Enterprise Estonia Silicon Valley andrus.viirg@eas.ee www.estonia.eu www.investinestonia.com ENTERPRISE ESTONIA State foundation for Business Support & Development: implementing agency of the EU structural funds in Estonia ca 270+ employees financing agency (grants) for enterprises, R&D and non-profit institutions budget 784 mln EUR during 2007-2013 budget 750 mln EUR for 2014-2020 Investment, Trade, Tourism & Innovation Promotion – assisting international companies to estonianize – assisting Estonian companies to internationalize – Foreign Representative Offices (FDI, Export): China (Shanghai); Denmark (Copenhagen); Finland (Helsinki); France (Paris); Germany (Hamburg, Munich); India (New Delhi); Japan (Tokyo); Norway (Oslo); Russia (St. Petersburg); Sweden (Stockholm); UK (London); USA (Silicon Valley) California – the 8th economy in the World (GDP ca 2,3trillionUSD, 38mln people) - 13% of US GDP Silicon Valley 3% of USA GDP; 18% of California GDP, ca 5 mln people: • 37% of residents foreign born • ca 400,000+ high tech jobs (20+% of all the world´s tech companies based here) • most millionaires and billionaires in US per capita • Average annual earnings 116 000 USD • San Francisco - major driver of the regions economic prosperity • innovation: 14.2% of all USA reg.patents • Universities, R&D institutions – Stanford, UC Berkeley, San Jose State… – SRI International,… • 15+% of the World´s venture capital, 48+% of USA Venture Capital deals (USD billion) 120 other US Silicon Valley 100 2014 Silicon Valley: 48% of all US deals in USD (23,4 bln USD of 48,3 bln USD) 32% of deals in numbers (1409 deals of 4356 of all USA) 80 68 60 40 20 0 24.9 26 32 19 16.4 14.2 12.7 14.2 15 12 6.8 6.3 7.8 8 9.6 11 18 16.7 16.1 17.4 11.2 14 23.4 11 7.8 9 11.7 11.2 12.6 200020012002200320042005200620072008200920102011201220132014 PWC: MoneyTree Report 2014 NVCA US Venture Capital VC investments by State (2013) 30K Review Every Plan 750 First Meetings 150 Follow-on Meetings Due diligence process DFJ Annual Deal Funnel 12 - 24 Investments Per Year Building a global tech company US market – ‘the gold standard’ for success in the technology industry – – – – Largest revenue opportunity Best location for raising growth capital Largest number of potential acquirers Strongest appetite for tech stocks – Best place to realize your liquid wealth Enterprise Estonia Silicon Valley CONNECTING PEOPLE - Helping to create valuable connections between Estonian and US companies and institutions, Organizing meetings, seminars and networking with key players. BUSINESS DEVELOPMENT - - Supporting the development of your business model to fit into the US market and helping to establish in US (virtual office or incorporating) Office space for meetings and events. RAISING CAPITAL - Helping to find funding and scaling opportunities in US for Estonian companies. Promoting Estonia as a place to do business (FDI) for US companies Companies with`Eesti` roots in USA East Coast (Boston & NYC area) Silicon Valley / California • • • • • • • • • • • • • • • • www.clickandgrow.com www.cognuse.com www.deltabid.com www.digitalsputnik.com www.egeeninc.com www.fortumo.com www.fotki.com www.guardtime.com www.import2.com www.iot.ee www.mangobio.com www.myhistro.com www.pipedrive.com www.planetOS.com www.scoro.com www.spmtips.com www.teleport.org www.testlio.com www.wellbiome.com www.3DprinterOS • • • • • • • • • www.gosnazz.com www.easybitz.com www.erply.com www.merocrat.com www.mobile-now.us www.tenantking.com www.transferwise.com www.zeroturnaround.com www.zerply.com Central US (Utah) • www.enefit.com Acquisitions: FusionOne (acquired by Synchronoss in 2010, Silicon Valley) Modesat (acquired by Xilinx in 2012, Silicon Valley) GrabCAD (acquired by Stratasys in 2014, Boston) USA in Estonia Entering US market • Understand the target customer’s challenges, need and pain points – Talk to customers and prospects first before finalizing your product/service • Develop a clear value proposition – KISS: Keep It Simple Stupid • Marketing – Build credibility with marketing materials that are professionally written and adapted for the new market • References – A company in US vs (unknown) company from Europe (Estonia) • Team – presence of the core team crucial – marketing team could be local Andrus Viirg Enterprise Estonia Silicon Valley andrus.viirg@eas.ee www.investinestonia.com