ARTICLE ABOUT HOW SILICON VALLEY CONCEPT STARTED

Objective: to know how to adopt Silicon Valley Concept & identify who/what are the talents a VC should pursue

I. DEFINITION OF TERMS
Silicon Valley (southern region of San Francisco Bay, California)
- home to many of the worlds largest technology firms, including startups
- continues to be the leading startup hub for high-tech innovations (e.g. Apple, Google, Facebook)
- accounts for 1/3 of all venture capital investment in US
II. SUMMARY OF THE ARTICLE
Traitorous Eight (aka Fairchildren)
- Gordon Moore & 7 others left Shockley Semiconductor in 1957, to form Fairchild Semiconductor;
- and created the basis of Silicon Valley* (see Definition of Terms)
Fairchild Semiconductor - first venture-backed startup
Capitalism(before Silicon Valley started)
- Capital is king
- Balance of power favors those who control capital
- Capital acquires/controls talents
- Labor intensive especially in manufacturing
- Cant/difficult to launch an endeavor without access to loan or without wealthy connections
Silicon Valleys Venture Capital Model
- Talent is king
- Reversed capitalism - Capital chases the talent
- Created new talent-based economy (before internet or ideas about information economy existed)
- Continually drives innovation
- Innovators work outside corporate constraints
- Risk transferred to Venture Capital LPs (Limited Partnerships w/c often finance ventures)
- Removes significant risk factors for talent to work on new developments
III.
TALENTS LOCAL VENTURE CAPITALISTS SHOULD PURSUE(based on web-check)
Filipino engineers & technology experts (technologists) in sectors/industries (recommended by experts as good
investment destinations):
Telecommunications
Energy/Alternative energy
Transport
Electronic
Biotechnology
Cloud computing
Infrastructure
Agriculture
Manufacturing (e.g. food processing)
Water treatment& utilization
Media
Information & Communication Technology (ICT)
Computer programs, customized software, hardware & accessories
Healthcare (e.g. Herbal medicine)
Green technology
Mining
Note:
Some of these are recommended by experts (in Venture Capital or Silicon Valley) as good
Industries/sectors for investment; or the preferred industries in exhibits of Technoprenr& similar events.
Underlined & bold Industries industries of the group. Good to prioritize these.
Those with innovations with market need orpotential (commerciable), and with industry synergy.


ADOPTING SILICON VALLEYS CONCEPT(based on web-check)
Organizations (w/c encourage venture capitalizing in the industries mentioned) organize/support events or
activities like:
Nationwide caravan or Competition of technopreneurs/students with innovative ideas
- They are given time to present/exhibit their innovation.
- The innovative technology/ies may earn funds/capital from angel investors or venture
capitalists from the audience, for its commercialization.
Recommended by DiosdadoBanatao,
a Filipino major player in Silicon Valley
Summit e.g. Filipino Technopreneurship Summit (FTSii) w/c aims to inspire future
filipinotechnopreneurs& empower them with entrep. tools & concepts
Exhibit
- E.g. Technology Showcase at Technology Resource Center (TRC) w/c invites proponents,
inventors, R&D institutions, angel investors & potential buyers of specialized products. They
also do business matching service (BMS) to link exhibitors & visitors.
Some organizations behind these events are:
Science & Tech. Advisory Council, Silicon Valley Division (STAC SV) provides:
- advice on activities in the academic & research arena in Phils.
- input to Phl govt re: viability to convert ideas in global Science & Technology (S&T) related
industries
PhilDev foundation committed to social devt&technopreneurship initiatives for Filipinos, thru
assistance & serving as mentors
Developers Connect Philippines (DevCon) foundation aims to showcase the "IT Pinoy Talent"
Venture capitalists & Business incubators
IV.
ANALYSIS
Sponsoring such events (e.g. competition) to gain seats & watch the technopreneurs presentation is costly.
Around P200,000, especially if organizers are international or US-based.
Facilitating/establishing our own nationwide (or at least regional) search caravan/competition is also costly.
RECOMMENDATION
Watch out for events that showcase filipinos innovative technologies/ideas (similar to events mentioned above).
There may be events w/c are free or less costly.
____ A VCs marketing tools/efforts should also be inviting for technopreneurs or individuals with innovative
ideas/technologies. The message of this mktg. effort is somewhat promising to make ideas be realized.
- This may be delivered thru our website.
Scout for startups or technopreneurs thru the internet.
In short-listing prospect innovative ideas/projects/investments, we might need to prioritize industries where the
group of companies is in.
o So it will be easier to evaluate the prospect
o If its not 1 of our industries, we need to know every detail of the project, to properly weigh its pros & cons.
Having our own back-up detailed research will be needed.
GAIN NETWORKS
Establish network/connections with the organizers of such events. We may gain referrals from them of good
prospect ideas to invest to. Short-list
organizers we can possibly gain connection. Not a competitor. Possibly a foundation or govt
agency (e.g. DOST, ASTI, FPRDI, MIRDC, BAR).
Business incubators.
____ (a VC) is already short-listing business brokers or consultancy firms where we can gain promising projects
or firms or startups, for investments.
______ (a VC) Might as well see if it can search/identify consultancy firms that cater to those with
technopreneurs with innovative ideas
Look for Top Universities with entrepreneur program, to look for investment opportunities.
It should also consider:
o Colleges/universities leading in the industries mentioned above, e.g. Mapua.
o those with technopreneur program, even colleges like ABE Internatinal Bus. College
o Science & Technology or prominent high schools w/c require Investigatory projects
If we are successful of gaining reliable & diversified networks, facilitating/organizingsearch-for-innovative-idea
events (assisted by sponsors the networks) can also be done in the future.