FAR FROM SILICON VALLEY - Lauder Institute
FAR FROMSILICON VALLEY:The EntrepreneurialGap in EmergingMarketsA Lauder Institute Global Knowledge Lab Project
2
Dear Reader,We are a teamwhose paths coPennsylvaniaincided backwhere we begain 2012 at thn the Whartone University ofprogram. As p/Lauder dualart of this prodegree master’sgram we werea common intasked with foterest on an inrminternationally reg groups withcuriosity forlevant hot topwhat generateics.thItriving innovawas a sharedsystems thattive and entrepbrought us togreetnher. It’s been aeurial ecoEarly on in ouwonderful jourdiscusrnsioeynonly a few citis it became clever since.ear that we coes and woulduld focus onneed to carefuto inform ourlly choose inteunderstandinresting regiong. We spent dacross the glosays researchinbe; some citiesg the big playstood out for hing entreprenersaving long hiseurs and investories of supporting in innovignore as theytation. Other ciwere gainingties were hardunprecedentedand innovatitomomentum inon .entrepreneursBeijing, Banghipalore, Santiagwe were lookinoand Nairobi formg for. We belieed the combinve that these fodifferent regioationur cities illusns around thetrate not onlyworld are approalso what diffehowachrent stages ofthe entrepreneu ing entrepreneurship buttraveled to eachrial ecosystem, met with incrcan look like.edible people, aate about theWend became alltopic and excitethdefomrorwehpassionat the future hAs you read tholds.is report, pleasentrepreneurienote that unlikal and innovae cooking or chtive ecosystemformula; nonemistry,s can’t be creaetheless, we idtedenwtiitfied six factorh a recipe orference. Theses that make asix factors aren important dintended as aabout the creaifguiding framtion of an ecosework for thinystem that driWe hope you fikingves innovationnd the inform.ation as valuable and enjoyHappy readinable as we didg,.The Team3
Highlights6Key Terms10812Global SnapshotThe Experts3022261814The FutureNairobiSantiagoBangaloreBeijingContent4
The TeamMelissa C. BlohmPrior to pursuing her MBA/MA Melissa spent 6 years workingas a Human Capital Consultant. There, she focused on globalimplementation of technology and process solutions. Melissahas a passion for international business challenges and has livedand worked in Venezuela, the United States, Australia and Peru.Melissa is in the process of establishing her own business that willtake technology hardware products to Africa. Her interest in beinga part of this project came from her strong belief that innovativeand entrepreneurial thinking in emerging markets is the key tosolving the world’s biggest challenges. Melissa is fluent in Spanish.David CumminsVinay NarayanVinay is passionate about consumer technology. He spent thesummer of 2013 helping scale a global program at eBay in SiliconValley. Prior to business school he worked in operational rolesacross diverse industries. He has worked in India for a pre-IPOeducation start-up, for the mobile marketing team at Nokia andfor the business development team at J&J, where he focused ongrowing the ocular medical device category. Vinay is fluent inHindi.Dalton J. WrightPrior to Wharton, Dalton was on the founding team of Mexico’sleading venture capital fund, Alta Ventures Mexico, which raised 70M to accelerate entrepreneurship in Latin America. He firstgained experience in venture capital in Utah, helping build Kickstart Seed Fund into the most active seed investor in the region.Dalton loves entrepreneurship and co-founded a media technology company during college which raised angel investment andwas sold to new partners. After graduating from Wharton/Lauderhe will be returning to Utah as a partner in Kickstart Seed Fund III.Dalton is fluent in Spanish.David has always had an interest in venture capital and entrepreneurship. Prior to Wharton, he was a member of the DraperFisher Jurvetson (DFJ) Growth Fund in Silicon Valley. There, heinvested in expansion-stage technology companies in the US andChina, most notably Tesla (Nasdaq: TSLA), AdMob (acquired byGoogle for 750 million), and Okbuy (the “Zappos of China”).He left DFJ to return to his entrepreneurial roots. He co-foundedEnterupt and raised 400,000 from early Skype investor, TimDraper. Enterupt built products in the online reputation and travelmarketplace spaces used by thousands of people. David is fluentin Mandarin Chinese.Yinyin WuProfessor Regina AbramiProfessor Mauro Guillén Ph.D. in Political Science, University of California, Berkeley Senior Lecturer in Political Science, Senior Fellow in the Man- Ph.D. Sociology, Yale University Ph.D. Political Economy, University of Oviedo Director of the Joseph H. Lauder Institute of ManagementAdvisoragement Department, Wharton School Director of the Global Program at the Lauder Institute of Management and International Studies Previous faculty of Harvard Business SchoolDuring the summer of 2013, Yinyin worked in the account management group of PIMCO in New York City. Prior to Wharton,Yinyin spent 5 years working at Credit Suisse, in New York andSan Francisco, where she advised corporates on liability management transactions and technology companies on financing andM&A opportunities. Yinyin developed an interest in technologicalinnovation during her time living in Silicon Valley and workingwith technology companies at varying stages of maturity. Yinyin isfluent in Mandarin Chinese.AdvisorStudies at Penn Dr. Felix Zandman Endowed Professorship in InternationalManagement at the Wharton School Secondary appointment as Professor of Sociology in theDepartment of Sociology of the University of PennsylvaniaYe Ella LuXitong (Kacie) NieElla has interdisciplinary design experience in graphic, product,exhibition and architectural design. She has always had a passionfor using design to implement social changes. She has work experience in the business development department of the SolomonR. Guggenheim Museum in New York, architecture offices inShanghai, Hong Kong, and the Netherlands.Kacie is a sophomore at Penn, majoring in Systems Engineeringand Finance. On campus, she is the president of Global ChinaConnection and the social chair of International Council onSystems Engineering at Penn. Last summer, she interned at theinvestment banking division of a securities firm in China whereshe worked on M&A deals in healthcare and hospitality. She looksforward to embarking on a career in finance.Design AssistantResearch Assistant5
Executive SummaryOverviewHigh-impact entrepreneurship and ecosystems for innovation are important to the ongoing and futureeconomic development of developed and emerging market economies alike, but what is innovation? Forthe purpose of this report, we define innovation as a product, service, or process invention that createssignificant economic value when applied to a market opportunity.The natural question that follows is: how does a country go about creating an ecosystem for innovation?Experts, academics, investors, entrepreneurs and industry participants each have unique viewpoints as tothe critical elements required to stimulate and sustain high impact entrepreneurship and thriving innovation ecosystems. We will summarize and highlight some of these viewpoints from global thought leadersin more detail in this report.Performance Criteria FactorsBased on our own research, we identified six factor groups that we believe are critical actors that drive thecreation of successful high-impact entrepreneurship and innovation ecosystems. The six factors that weconsidered are listed below. Later in this report, we will define each respective group in more detail.6high BATORS&ACCELERATORS1. High Impact Entrepreneurs2. Community & Culture3. Government & Regulation4. Universities & Education5. Incubators & Accelerators6. Funding & Capital gcrowdfundingcrowdfundingan emerging source ofcapital for startups thatconsists of aggregated smallcontributions from manyindividuals. Driven byrecent changes in U.S.securities law to allow small“unaccredited investors” topurchase stock in privatecompanies, the emergingcrowdfunding market mayaffect how startups raiseearly-stage capital.an emerging source ofcapital for startups thatconsists of aggregated smallcontributions from manyindividuals. Driven byrecent changes in U.S.securities law to allow small“unaccredited investors” topurchase stock in privatecompanies, the emergingcrowdfunding market mayaffect how startups raiseearly-stage capital.an emerging source ofcapital for startups thatconsists of aggregated smallcontributions from manyindividuals. Driven byrecent changes in U.S.securities law to allow small“unaccredited investors” topurchase stock in privatecompanies, the emergingcrowdfunding market mayaffect how startups raiseearly-stage capital.an emerging source ofcapital for startups thatconsists of aggregated smallcontributions from manyindividuals. Driven byrecent changes in U.S.securities law to allow small“unaccredited investors” topurchase stock in privatecompanies, the emergingcrowdfunding market mayaffect how startups raiseearly-stage capital.an emerging source ofcapital for startups thatconsists of aggregated smallcontributions from manyindividuals. Driven byrecent changes in U.S.securities law to allow small“unaccredited investors” topurchase stock in privatecompanies, the emergingcrowdfunding market mayaffect how startups raiseearly-stage capital.
Ecosystem ScorecardIn this report, we focus our analysis on four ecosystems that are geographically diverse and are currently atdifferent stages of development. These ecosystems include, Beijing, Bangalore, Santiago and Nairobi. Wetraveled to each of these geographies in an effort to gather data, collect information and conduct primaryinterviews with entrepreneurs, government officials, investors, corporate players and multiple other industry participants. Below is a summary of how each of these respective ecosystems is performing relative toour six-element checklist. In this report, we provide additional data, insight, performance analysis and ourspecific suggested areas of improvement for each respective ecosystem.CultureGovernment&&Community ators High Impact&Accelerators Entrepreneursworld ngnascentNdeficientGoing ForwardDuring the course of our research it became all the more evident that innovative ecosystems arecritical to the creation of thriving and sustainable economic growth. At the same time, the world ofinnovation and entrepreneurship is quickly changing. Silicon Valley is a good example of success, butit is no longer the only model or success story. In trying to create this ecosystem, each country, cityand community must adjust for its own characteristics and idiosyncrasies. Government support, suchas through visa programs, access to permits, IP protection, and contract enforcement are a must, butwithout the involvement and commitment from all six factor groups success is unlikely.Ultimately, the best ecosystems offer the entrepreneur access to large markets, capital, mentors, customers, educated employees, resources, and IP protection. Based on the geographies that we studied,each comes up short in some respects and room remains for improvement. Those who can build ideasand businesses quickly while overcoming the challenges that exist will be the ones who succeed.7
Key Terms and How We Define ThemWe have provided the following definitions and frameworks to establish a common language bywhich we may evaluate, compare and discuss entrepreneurial ecosystems around the world. While notwo ecosystems are identical and these definitions vary somewhat from region to region, the following represents a useful starting point to understand the structure of a “typical” entrepreneurial ecosystem.incubators & acceleratorsAcceleratorspools of private capital allocated to high-risk, high-return equity investments in emerging technologycompanies. Venture capital has fueled much of theworld's technological advances includingmicroprocessors, computing, software,telecommunications, medical devices,biotech, clean energy, socialnetworking, big data and more.Time: longerMoney: fee-basedCohort: rolling basisate capital allocated to high-risk, high-reFocus: various types & industriesnvestments in emerging technologyVenture capital has fueled much of theExample: StartXnological advances includingsors, computing, software,cations, medical devices,n energy, socialbig data and more.Both offer:Office SpaceMentorshipEarly Stage Support ServicesTime: shorter, condensedMoney: equity-basedCohort: batches or groupsFocus: high growth, often techExample: Y-CombinatorIncubators88funding & Capital BUSINESSFINANCIALVALUESTAGESLiquidity/Exitmultiple millionsGiven the wide variation thatexists between (and even within) ecosystems regarding these terminologies, we have avoidedspecific figures such as investment amounts and company valuations. A venture investment in one market may look more likea seed round in another. ForExpansionthe purposes of this study we have attempted to normalize the concepts based on the stage of acompany from inception through a liquidity -upLiquidity/Exitmultiple iends,Family& FoolsAcceleratorsAngelsSeedVentureCapitalFUNDING -upIdeathousandsFounderFriends,Family& FoolsAcceleratorsAngelsSeedFUNDING gicBuyersCrowdfunding:An emerging source of capitalfor startups that consists ofaggregated small contributionsfrom many individuals.
We believe there are six factors that drive the creation ofsuccessful innovative and entrepreneurial environments.high impactentrepreneursAn entire ecosystem built to supportentrepreneurs as they attempt to solve large,pressing problems through innovative, scalabletechnologies and business models. Entrepreneurs inthriving ecosystems create new industries, disruptincumbent enterprises and generate new growth thatresults in high-paying jobs for skilled workers, an elevatedstandard of living in the region and creative solutions thatadvance what is possible in the world.There is a different type of entrepreneurship oftenreferred to as “needs-based” entrepreneurship.This report does not address thistype of entrepreneurship.ovationnfunding& capitalA multitude of private and public sources by whichentrepreneurs can obtain funding. Angel investors, seedfunds and venture funds allocate capital to high-risk,high-return equity investments in emergingcompanies. In addition to capital, investors offerrelationships, guidance and services toportfolio companies in an effort to increasevaluations and generate returns throughacquisition or IPO. Successfulventure funds are an indicatorof a healthy entrepreneurial ecosystem.crowdfundingan emerging source ofcapital for startups thatconsists of aggregated smallcontributions from manyindividuals. Driven byrecent changes in U.S.securities law to allow small“unaccredited investors” topurchase stock in privatecompanies, the emergingcrowdfunding market mayaffect how startups raiseEngaged people building trusted,informal networks with establishednorms that encourage collaboration,sharing, learning, research, exploration,risk-taking and entrepreneurship. Culture is theelusive, intangible element that causes entrepreneurial ecosystems to thrive when other necessaryingredients are present. Visionary entrepreneurs inthe emerging ecosystem are usually theorganizers of the community anddrivers of its culture.nEntities that provide support to veryearly-stage companies including officespace, internet access, mentoring,networking, accounting and legalservices. The primary differencebetween an incubator and acceleratoris the business model they pursue;incubators tend to accept a variety ofstartups and charge a monthly fee forservices while accelerators seek onlyhigh-growth potential companiesand share risk by making smallequity-linked investments.iINCUBATORS& ACCELERATORScommunity& culturegovernment& regulationEffective government policy thatreduces barriers to entrepreneurship and encourages innovation,investment and new ventureformation. Successful ecosystemstend to have laws that guaranteeproperty rights, enforce businesscontracts, protect intellectualproperty and incentivizeinvestment while avoidingbureaucratic friction or makingdirect investment decisions.universities &educationPrivate and public institutions of higher education thatbuild networks of skilled people including engineers,scientists, designers and businesspeople from aroundthe world. This diversity of talent and experienceenables the cross-pollination of ideas necessaryfor innovation. Research universities alsohouse advanced labs with scholars whoproduce breakthrough inventions thatcan be commercialized throughtechnology transfer tostartup companies.crowdfundingcrowdfundingcrowdfundingWhat dowe mean by innovation?crowdfundingan emerging source ofan emerging source ofan emerging source ofan emerging source ofcapital for startups thatcapital for startups thatcapital for startups thatcapital for startups thatThestudy consistsof innovationhassmallproduceddozensof definitions.Sub categoriesconsists of aggregatedsmallof aggregatedconsistsof aggregatedsmallconsistsof aggregated cansmallcontributions from anycontributionsfrommanydisruptive, breakthrough and incremental innovation as well as prodindividuals. Driven byindividuals. Driven byindividuals. Driven byindividuals. Driven byuct, processand business model innovation.For the purposeof this study werecent changes in U.S.recent changes in U.S.recent changes in U.S.recent changes in U.S.havedefinedinnovationas curities law to allowsmallsecuritieslaw to allowsecuritieslaw tosmall inventionsecurities lawallow small“unaccredited investors”to“unaccreditedinvestors”to �unaccredited investors” tosignificanteconomic valuewhento a marketpurchase stock in privatepurchase stock in privatepurchase stock in privatepurchase stock in privatecompanies, the emergingcompanies, the emergingcompanies, the emergingcompanies, the emergingcrowdfunding market maycrowdfunding market maycrowdfunding market maycrowdfunding market mayaffect how startups raiseaffect how startups raiseaffect how startups raiseaffect how startups raise9
What Some Experts Say.10 Leaders are the entrepreneurs who lead the community, and Feeders are the support system thatare comprised of the government, universities, investors,mentors, service providers and large companies. Theentrepreneurial community needs grass-roots activitiesstarted by entrepreneurs that bring together the players. The main cultural attributes that are essential to SiliconValley are - Give before you get, (“pay it forward” culture.) Everyone is a mentor, so share your knowledgeand give back. Embrace weirdness. Entrepreneurs need to be committed to theirregion for the long term (20 years), the community andits leaders must be inclusive, play a non-zero sum game,be mentorship-driven and be comfortable experimentingand failing fast. Top-down government driven clusters are not the mosteffective. There is a disconnect between entrepreneurs and governments, such that entrepreneurs areself-aware and bottoms up while governments are unaware and macro-focused. Schools like MIT and Stanford are “outward facing”research universities that act as community catalysts, a magnet for entrepreneurial talent for the region,teachers, and a pipeline for talent back into the region.Their research offers a continual stream of newtechnologies to be commercialized. Accelerators
70M to accelerate entrepreneurship in Latin America. He first gained experience in venture capital in Utah, helping build Kick-start Seed Fund into the most active seed investor in the region. Dalton loves entrepreneurship and co-founded a media technol-ogy company during college wh
Directors can be found in this Proxy Statement beginning on page 8. Ronald S. Lauder Chairman of Clinique None Laboratories, LLC William P. Lauder Executive Chairman of The Nominating and Governance Estee Lauder Companies Inc. Committee Richard D. Parsons Senior Advisor to Providence Compensation Committee; Equity Partners LLC; and and .
Meet with Silicon Valley investors, angels and venture capitalists and experts to gain an introduction and insight into the unique Silicon Valley investment landscape Build relationships with industry insiders and key players in the startup world to develop your own Silicon Valley network Visit a Silicon Valley accelerator and participate
The Startup Growth program offers an in-depth Silicon Valley experience for Seed/Early stage startups seeking to maximize their time in the Valley by providing the opportunity to learn the key aspects required to become a Silicon Valley startup, gain exposure and start to build their local Silicon Valley network of experts, founders and investors.
The CMOS Process - photolithography (1) Silicon Wafer Silicon Wafer SiO 2 1μm Silicon Wafer photoresist (a) Bare silicon wafer (b) Grow Oxide layer (c) Spin on photoresist Lecture 3 - 4 The CMOS Process - photolithography (2) Silicon Wafer (d) Expose resist to UV light through a MASK Silicon Wafer (e) Remove unexposed resist Silicon Wafer
The Estée Lauder Companies’ Story In 2014, The Estée Lauder Companies—one of the world’s leading manufacturers and marketers of quality skin care, makeup, fragrance, and hair care products—signed a lease for approximately 10,000 square feet on Floor 26 at 110 East 5
The Estée Lauder Companies Inc. 767 Fifth Avenue New York, New York 10153 William P. Lauder Executive Chairman September 24, 2021 Dear Fellow Stockholder: You are cordially invited to attend the 2021 Annual Meeting of Stockholders. It will be held on Friday, November 12, 2021, at 10:00 a.m., Eastern Time, where we will ask you to
Start-ups in Silicon Valley have quick access to venture capital. On average, it takes 11.6 months for Silicon Valley’s start-ups to complete their first round of venture finance, five months faster than the national average. In addition, the quicker access to capital is found in every major industry in Silicon Valley.
SERVING SILICON VALLEY 2 KEY FINDINGS Roughly 14,000 unionized tech cafeteria workers, janitors, and security officers work in Silicon Valley.* An estimated 63% of workers in those blue-collar tech occupations are Black or Latinx. Nearly 1 out of 8 Latino men in Silicon Valley (12.1%) works in a janitorial, security, or foodservice occupation.
