Innovation Ecosystem in the USA Rui Boavista Marques

Innovation Ecosystem in the USA Rui Boavista Marques

Portugal Tech Network CALIFORNIA PORTUGAL VENTURES PARTNERSHIP: RUNWAY (LBC) NEW YORK AICEP PARTNERSHIP: MADE IN NY MEDIA CENTER MASSACHUSETTS FCT INTERNATIONAL PARTNERSHIP: MIT HARVARD MEDICAL SCHOOL PORTUGAL VENTURES PARTNERSHIP: CAMBRIDGE INNOVATION CENTER (LBV) PENNSYLVANIA TEXAS FCT INTERNATIONAL PARTNERSHIP: FCT INTERNATIONAL PARTNERSHIP: CARNEGIE MELLON UTEN AT UT AUSTIN Source: Portugal Ventures, FCT, AICEP

Global VC investment EUA 2014 2015 Invest. 52 US$b 59 US$b Global 2014 2015 Invest. 86.7 US$b 128 US$b Source: Dow Jones VentureSource

Estado 2014 ($M) % 2015 ($M) % Califórnia 29,802.4 57,2% 33,666.77 57.25% VC investment in the US Nova Iorque 4,800.77 9,2% 6,230.6 10.59% Massachusetts 4,532.23 8,7% 5,713.03 9.71% Texas 1,750.93 3,4% 1,170.79 1.99% Washington 1,308.59 2,5% 1,210.82 2.06% Flórida 1,025.67 2,0% 460.77 0.78% TOTAL 52,083.13 58,811.19 Source: NVCA

VC Investment in the State of New York 7.000 6.000 5.000 4.000 3.000 2.000 1.000-6230,60 4419,24 2837,91 433 443 462 2013 2014 2015 Source: NVCA Deals Amount (in $M)

Examples of VC firm in New York Fund size $792 million $171M $100M Investment range $0.25 M - $75M $200k - $60M $0.2M - $15M Investment stage Early stage, later stage Seed, early stage, later stage Seed, early stage Sectors Curated web, advertising, software Saas, advertising, software Mobile, SaaS, software Notable investments Duolingo ($45M, Series D), Coinbase ($75M, Series C), Veniam ($4.9M, Series A) AlphaSense ($33M, Venture), ShopKeep ($10M, Series B), ShopKeep ($60M, Series D) Ticketfly ($3M, Series A), SeatGeek ($1M, Series A) Source: CrunchBase, Findthecompany

Incubators and accelerators in New York Source: CrunchBase

VC Investment in the State of Massachusetts 6000 5000 4000 3000 2000 1000 0 5713,62 4655,70 3041,19 380 393 426 2013 2014 2015 Source: NVCA Deals Amount (in $M)

Examples of VC firm in Massachusetts Fund size $2B $285M $1.77B Investment range $1M - $55M $2M - $45M $1M - $275M Investment stage Seed, early stage, later stage, private equity, debt financing Early stage, later stage, debt financing Seed, early stage, later stage Sectors Software, enterprise software, mobile Enterprise software, software, Saas Marketplaces, software, mobile, hardware, consumer tech Notable investments View ($55M, Series D), Pindrop ($1M, Seed), CallMiner ($16M, Venture) Integral Access ($45M, Series D), Invaluable ($33.75M, Series D), ZoomInfo ($7M, Series A) Affirm ($275M, Series B), Foursquare ($45M, Series E), Slack ($160M) Source: CrunchBase, Findthecompany

Incubators in Massachusetts Source: CrunchBase

VC Investment in the state of Texas 1600 1400 1200 1000 800 600 400 200 0 1324,75 1426,81 1170,79 161 187 163 2013 2014 2015 Source: NVCA Deals Amount (in $M)

Examples of VC firm in Texas Fund size $125M $3.85B $133.9M Investment range $2M - $19M $500k - $60M $100k - $50M Investment stage Early stage, later stage Seed, early stage, later stage, private equity Early stage, later stage Sectors Software, biotechnology, security Enterprise software, software, social media Biotechnology, health care, health, wellness Notable investments Lover.ly ($2M, Series B), Sirific Wireless ($18.8M, Series C), Photobucket ($4.5M, Series A) Comfy ($600k, Seed), Civitas Learning ($60M, Series D), Tasktop ($11M, Series A) Terapio ($100k, Series A), Mirna Therapeutics ($41.8M, Series D), Claret Medical ($18M, Series B) Source: CrunchBase, Findthecompany

Incubators in Texas Source: CrunchBase

How venture-capital funds work Every 3-4 years VC firms raise new funds The fund stays open for 10 years 70-80% of the gains are distributed to investors Source: WSJ, March 30, 2016, AICEP

Findings Venture capital market stabilized (importance of reputation, less competition). Expansion investment importance is increasing. Entry rate for startups into Startup Bootcamps and incubators is 2-5%. Only 2% of the startups coming out of the TOP 20 accelerators in the US are successful. Big exits may take 10 years to take place. The origin of the capital is evolving as corporate VC funds are entering the market (Google, Rakuten, Alibaba).

Recommendations Raise money with local VC firm or angel investor. Have a strong track record. Have the financial and legal capacity to launch the product or service in the US. Plan to open an office in the US for operations and marketing. Have a local team. Hire a US attorney (patents, immigration issues, etc). Open a US bank account (with the company registered in the US).

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Rui Boavista Marques rui.boavista.marques@portugalglobal.pt Mais informações em websummitlisbon.pt