Doing Business in

Andrus Viirg Enterprise Silicon Valley » investinestonia.com [email protected] California - the 5th economy in the World (GDP ca 2,9trillionUSD, 39mln people) - 14% of US GDP Silicon Valley - 4% 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 www.investinestonia.com Venture Capital deals (USD billion)

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45 20 16 18 16 32 14 14 14 23 27 7 8 10 11 9 11 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018

Silicon Valley other US www.workinestonia.com www.e-estonia.com www.visitestonia.com www.e-resident.gov.ee ENTERPRISE ESTONIA www.tradewithestonia.com www.investinestonia.com

Government Foundation Implementing European Structural Funds - grants for companies, R&D and non-profit institutions - budget 588 mln EUR for 2014-2020 - 280+ employees

Investment, Trade, Tourism & Innovation Promotion assisting foreign companies to estonianize assisting Estonian companies to internationalize

Network of rep offices and consultants Silicon Valley USA Japan Invest in Estonia services: Estonia Astana Kazakhstan - information services and investment preparation Finland - investment proposals and tours UK China - facilitating contacts, negotiation with authorities Sweden France India - organising recruitment Denmark Netherlands Singapore - identifying suitable real estate and facilities Norway , Nürnberg Germany Dubai UAE - post-investment / aftercare services Enterprise Estonia, Silicon Valley

Startups Established Universities Companies & Institutions CONNECTING PEOPLE - Helping to create valuable BUILDING NETWORKS: connections between Estonian and 1) linking Estonian universities, organizations and companies to US companies and institutions, Silicon Valley counterparts and networks; - Organizing meetings, seminars and 2) organizing inspiration&tech tours for public and private sector; networking with key players. BUSINESS DEVELOPMENT MARKET VALIDATION & SCALING: - Supporting the development of your 1) identifying potential mentors/advisors and clients; business model to fit into the US market and helping to establish in US 2) providing short term office space and technical support in arranging meetings. (virtual office or incorporating) - Office space for meetings and events. RAISING CAPITAL INVESTMENT PROMOTION - Helping to find funding and scaling opportunities in US for Estonian 1) identifying potential venture funding (VCs, accelerators, companies. business angels,…) for intros with Estonian founders; - Promoting Estonia as a place to do 2) promoting Estonia as a place to do business (FDI promotion). business (FDI) for US companies 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

www.investinestonia.com Companies with `Estonian` roots in US

• www.bikeep.com West Coast (Silicon Valley / LA / East Coast • www.budgetmatador.com Seattle) • www.bindagency.com • www.clickandgrow.com • www.scoro.com • www.ventondemand.com • www.cleveron.eu • www.chatcreate.com • www.spmtips.com • www.wellbiome.com • www.starship.xyz • www.wolf3d.io • www.easybitz.com • www.cognuse.com • www.sprayprinter.com • www.3DPrinterOS • www.enefit.com • www.deltabid.com • www.thinnect.com • Qualitex USA Inc. • www.erply.com • www.digitalsputnik.com • www.testlio.com /KRISTISTAR • www.investorise.com • www.egeeninc.com • www.upgraded.io • www.merocrat.com • www.fortumo.com • www.veriff.me • www.zerply.com • www.ovela.us • www.fotki.com • www.pipedrive.com • www.guardtime.com • www.transferwise.com • www.icosagen.com Acquisitions: • Laul Estonia Piano Factory • www.import2.com FusionOne - Synchronoss in 2010, Silicon Valley Modesat - Xilinx in 2012, Silicon Valley • www.laavatech.com GrabCAD - Stratasys in 2014, Boston • www.mangobio.com NowInnovations (Mobile-Now) – InfraPark (FRA) 2015 • www.myhistro.com Vitalfields – The Climate Corporation / Monsanto in 2016, Silicon Valley • www.nortal.com Teleport – MOVE Guides in 2017 (US/UK) • www.powerupenergytech.com PlanetOS – Intertrust in 2017, Silicon Valley Zeroturnaround – RogueWave, 2017, Boston www.investinestonia.com 290 50 280 #EstonianMafia fundraisings 272,22 270 260 45 45 245,68 45 250 240 42 230 40 40 Million EURMillion 220 38 210 200 35 190 180 170 30 160 150 140 25 130 22 120 103,83 20 110 19 96,57 100 90 15 15 80 68,68 70 60 10 11 10 50 40 5 8 30,86 30 18,53 22,30 5 4 7,30 9,63 11,10 12,10 20 5,69 4,80 8,20 5,64 10 5,69 3,95 3,07 4,313,56 4,29 3,81 3,06 6,41 3,15 0 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Capital raised, mln EUR Capital raised from Estonia, mln EUR Number of Deals www.startupestonia.ee/startups/investment s US companies in Estonia (production and/or product development/engineering)

www.investinestonia.com https://unicornhatchery.org/ High growth opportunities Sufficient market size/potential Understanding customer need Strong management team Developed business model Scalable sales strategy Sustainable competitive advantage Likelihood of profitable exit Right type of investor https://events.bizzabo.com/LinkingLeaders

April 7 – 9, 2019

• GASC is the “execution arm” for implementing the binational R&D agreements between South Carolina and Israel, and between South Carolina and Estonia.

• GASC’s mission is to stimulate education exchanges, research collaborations and business partnerships with stakeholders in South Carolina, Israel and Estonia to enhance economic prosperity.

www.investinestonia.com

750 First 150 Follow-on Review Meetings 12 - 24 Meetings 30K Every Investments Plan Per Year

Due diligence process

DFJ Annual Deal Funnel 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: Keep It Simple Stupid (KISS)

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 www.investinestonia.com Examples of Silicon Valley Startup Ecosystem Players

YCombinator Accelerator http://www.ycombinator.com/ IVP VC https://www.ivp.com/

Alchemist Accelerator https://alchemistaccelerator.com/ Orange Silicon Valley VC https://www.orangesv.com/

Yamaha Motor Ventures & Accelerator https://www.ymvsv.com/ 500 Startups VC https://500.co/ Laboratory Sony Innovation Fund VC http://www.sonyinnovationfund.com/ Sutardja Center for University Program https://scet.berkeley.edu/about/ Nexit Ventures VC http://www.nexitventures.com/ Entrepreneurship & Technology Future VC VC https://future.ventures/ Pipeline Angels Angel Network http://pipelineangels.com/ Sequoia Capital VC https://www.sequoiacap.com/ Band of Angels Angel Network https://www.bandangels.com/about/

Sand Hill Angels Angel Network http://www.sandhillangels.com/

SV Angel Angel Network https://svangel.com/

Angel Venture Capital Government Policy https://www.angelcapitalassociation.org/ Association

National Venture Capital Government Policy https://nvca.org/ Association

Berkeley Angel Network Angel Network https://www.berkeleyangelnetwork.com/

www.investinestonia.com