Intro to Silicon Valley workshop to help introduce those who are new to the world of startups and venture capital by providing some fundamental data and case studies to help expand your knowledge and interest. First section - History and data to describe what helped build the world's largest ecosystem in Silicon Valley, how other ecosystems get built and where they're getting built outside of Silicon Valley. Second section - A brief case study on Uber - the largest privately funded startup in history - and its path to raising capital, its product evolution, its founders, and the competitive forces around it. Third section - The top startups launched in 2016, according to Business Insider.

1. SILICONVALLEY 101
STARTECH AUGUST 27, 2016 @CRAFT AND SOCIAL EL PASO,TX

2. WHO ARE WE?
BETO
• Ebetuel (Beto)Pallares – AdVenture Capitalist
• Manages a seed/early-stage fund now: $5.5M
• Manages/advises on a $40M+ fund of funds and direct investment fund
• Network of over 100+ venture funds, with 12 in which he has direct oversight
• Manage nearly 2 dozen direct investments across multiple sectors and stages
• Advises on creation of venture funds and development of ecosystems
• Kauffman Fellow (www.kauffmanfellows.org)
• Presidio Fellow (www.presidiofellows.org)
• Experience in start-up and late-stage company due diligence, both domestic and international
• BA Brandeis University, MBA UTEP, PhD in International Business Strategy with expertise in
accelerators/incubators and international technology companies

3. WHO ARE WE?
ROBERT
• Digital Media/Technology & Sports/Entertainment expert with over 10 years experience
• Conduct start-up and fund due diligence on behalf of Joseph Advisory
• Cofounding CoWork Oasis & STARTech in Downtown El Paso – Fall 2016
• Served as an advisor for NMSU’s Arrowhead Center for Entrepreneurship
• Worked as an analyst for a new early-stage startup fund in Santa Monica (Silicon Beach)
• Worked at ESPN in Sales & Marketing handling multi-million dollar advertising accounts in the West
Coast (i.e.Apple,Toyota, Nissan, Disney, movie studios,Vizio, EA Sports, Stubhub, adidas, Nike, etc.)
• MBA USC Marshall – Entrepreneurship &Venture Capital + Grad Certificate Technology
Commercialization; BA U of Michigan – Sports Management & Communications; HS @ La Jeff

4. STARTECH
@ COWORK OASIS
• STARTech provides education and knowledge to the El Paso Borderland region about
technology based venture startups and what it takes to raise venture capital and succeed.
We want to create a Silicon Sun ecosystem that does not exist in this region, and it
begins with educating people about the industry, and fostering startups to get their
START in El Paso in order to succeed in other regions like SiliconValley. Headed by two
venture capitalists with more than 10 years combined experience investing in startups
and startup investment funds, we bring an outside perspective to El Paso, while also being
based in El Paso.

5. COWORK OASIS
OPENING OCT/NOV 2016 @ 219 E SAN ANTONIO AVE
• CoWork Oasis is a community based shared office workplace enabling and promoting a
tech based entrepreneurial ecosystem in the El Paso Borderland region. It is a communal
space to network with fellow entrepreneurs, freelancers, service providers, web
developers, etc. and meet your next client, cofounder, and/or mentor.The community will
be empowered to create more tech enabled startups in the region via workshops,
educational courses, development tools and an affiliated investor network that will all be
built and housed in the coworking space. Memberships run month-to-month with no
long-term obligation and provide flexibility based on needs.

6. SILICONVALLEY 101
Some History, Data

7. THE EVOLUTION OF SILICONVALLEY
Source: Employment Development Department, Labor Market Information Division
Analytics: Collaborative Economics

8. INNOVATION INDUSTRIES AND OVERALL
ECONOMY SILICON VALLEY (2003-2013)
Source: Moody’s Analytics
Analysis: Collaborative Economics

9. ENTREPRENEURSHIP - START-UPVS SMALL BUSINESS
• Start-ups are different from small businesses
• Success and failure are almost flipped
• A small business has a 75% chance of success
• A start-up has 75% chance of failure (even withVC funding)
• Different financing needs
• Small businesses have a very clear ROI and scale factors
• Start-ups evolve and apply capital in seemingly incoherent ways
• Different inputs (talent, mentors, personalities)
• The small business meets a market need, almost immediately
• The start-up meets a transactional or transformative need, and to do so, they need a different support
infrastructure

10. START-UPS LOOK LESS AND LESS LIKE TRADITIONAL
BUSINESSES,YET THEY SUPPLANT TRADITIONAL
BUSINESSES
Source:The Startup Ecosystem Report

11. NEW POWER GAINS ITS FORCE FROM PEOPLE’S
GROWING CAPACITY – AND DESIRE – TO GO FAR
BEYOND PASSIVE CONSUMPTION OF IDEAS AND
GOODS.
Source: Jeremy Heimans and Henry Timms www.hbr.org

12. WHAT START-UPS MEAN TO SOCIETY
Source: Jeremy Heimans and Henry Timms www.hbr.org

13. FUNDING LIFECYCLE
tSeed
Capital
Angel
Capital
Government
Grants
Venture
Capital
1 – 5 years
$250K - $5M
Expansion
Capital
$

14. PROGRESSION OF EARLY-STAGE INVESTMENT IN SILICON
VALLEY-BASED START-UPS (LAUNCHYEARS 2006, 2009,
2012)
Source: CB Insights
Analysis: Collaborative Economics

15. Source:The Startup Ecosystem Report

17. CRITICAL ELEMENTS OF A SUCCESSFUL
ECOSYSTEM
InvestmentIdeas
Management
üEntrepreneurs
üResearch
üScientists
üIncubators
üPrivate Investors
üInstitutional Investors
üGovernment Sources
üVenture Capital
üStartup Networks
üSourced from university alumni
üOther Companies

18. CAPITAL IGNITES IDEAS AND MANAGEMENT
InvestmentIdeas
People are the key. The ideas are
plentiful but are most easily relocated
to where the money or management is
based.
More seed capital is needed locally to
leverage larger syndicated seed
rounds. With sufficient capital resident
to the idea, key people can be
recruited.

19. START-UPS CREATEVALUE IN A NON-LINEAR
FASHION
SeriesA
Hit
Milestones
Hit
Milestones
Hit
Milestones
SeriesB
EXIT
AngelRound
Due
Diligence
FindDeal
$100K $1M $5M $50MExample

20. SILICONVALLEY CASE STUDY
UBER

21. EVOLUTION OF THE BRAND

22. MONEY RAISED
• $8.71B in 12 “rounds” the last 5 years
• Aug 2009 - $200k Seed – only Co-Founders – Travis Kalanick & Garret Camp (known as UberCab)
• Oct 2010 - $1.25M Angel – 29 different investors – including First Round Capital
• Feb 2011 - $11M Series A (valued at $60M) – 6 investors
• Dec 2011 - $37M Series B – 11 investors
• Launched Ride-Sharing early 2013
• Aug 2013 - $258M Series C (valued at $3.5B) – 3 investors
• June 2014 - $1.4B Series D (valued at $18.2B) – 8 investors
• Dec 2014 - $1.2B Series E (valued at $40B) – 6 investors

23. STUMBLEUPON

24. UBER CO-FOUNDERS
• Garrett Camp
• 2002 – Founded StumbleUpon in Calgary, Canada
• 2006 – StumbleUpon moves to San Francisco after receiving Angel investment – including First
Round Capital
• 2007 – StumbleUpon gets acquired by eBay for $75M
• 2008 - Comes up with UberCab with Garrett Camp in Paris conference
• 2009 – Camp takes over StumbleUpon again after spinning it back off eBay
• 2012 – Steps down from StumbleUpon
• 2013 – Founded Expa Startup Studio and raises $50M
• 2015 – Takes over StumbleUpon once again after it gets into debt

25. UBER CO-FOUNDERS
• Travis Kalanick (CEO)
• 1998 – Dropped out of UCLA, joined Scour – Scour got invested
• 2000 – Scour gets sued for $250B – goes bankrupt
• 2001 – Founds RedSwoosh
• 2006 – Raises $1.73M Series A for RedSwoosh – from Mark Cuban
• 2007 – Sells RedSwoosh to Akamai Technologies for $19M and becomes a millionaire
• 2008 - Comes up with UberCab with Garrett Camp in Paris conference
• 2009 – Becomes Uber CEO

26. SIDECAR

27. SIDECAR
• Also in San Francisco
• Raised $45.5M in 5 rounds 2011-2014 including GoogleVentures, Richard Branson
• FIRST to do ride-sharing in 2012 (Using your own vehicle)
• FIRST to be able to drop-off/pick-up at the SFO airport (Took Uber/Lyft until 2015)
• Riders selected their drivers (and car) to ride in
• NO Surge Pricing

28. LYFT

29. LYFT
• Strongest competitor to Uber in US
• Raised $2B in 9 ”Rounds” 2008 – 2015 (Spin-off from Zimride)
• Zimride was a ride-share service for road trips
• Passengers offer the driver a tip in addition to star rating system
• GM invested in them in Dec 2015 to help with R&D in autonomous driving
• China’s largest ridesharing company invested in Lyft and now Uber (in turn,Apple
invested into them)

30. WHAT’S NEXT IN 2016 AND BEYOND?

31. STARRY IS MAKING MORE POWERFUL WI-FI FOR
YOUR HOUSE

32. JUICERO WANTS TO MAKE THE FRESHEST JUICE
YOU’VE EVER TASTED

33. CHEDDAR IS BETTING IT CAN BETHE NEW
CNBC FOR MILLENNIALS

34. GRAIL WANTSTO DEVELOP ATEST FOR
CANCER ATTHE EARLIEST POSSIBLE STAGE

35. JUNO WANTSTO BE A DRIVER-FRIENDLY
ALTERNATIVETO UBER

36. OTTO'S SELF-DRIVINGTRUCKS COULD
REVOLUTIONIZETHE INDUSTRY

37. SIMPLE HABIT WANTSTO HELP STRESSED-
OUT MILLENNIALS

38. COMPARABLY CAN SHOWYOU HOW MUCH
YOU'RE BEING PAID COMPARED WITHYOUR
PEERS

39. ZIPLINE'S DRONES PARACHUTE BLOOD AND
MEDICINETO REMOTE RWANDAN CITIES

40. NANIT IS A SUPERPOWERED BABY
MONITOR

41. TRUEBILL WANTSTO STOPYOU FROM
GETTING RIPPED OFF ON SUBSCRIPTIONS

42. WINNIE WANTSTO BETHEYELP FOR
PARENTS

43. RITUAL IS MAKING A BETTERVITAMIN

44. RECHARGE LETSYOU RENT HOTEL ROOMS BY
THE MINUTE FOR WHENEVERYOU NEED A REST

45. LOLA IS A NEW KIND OF ATRAVEL AGENT

46. PEARL WILL HELPTURNYOUR 'DUMB CAR'
INTO A CUTTING-EDGE MODEL

47. KNUEDGE WANTSTO ONE-UP GOOGLE AND
INTEL
In June, former NASA administrator Dan Goldin reemerged to reveal what he had been
working on for the past decade: KnuEdge, a startup based in San Diego with a mission to
one-up Google,AMD, and Intel with the ”fundamental invention” of the next generation
computer processor.