Core of our Vision. Silicon Values Partners II, L.P. (hereafter “SiV-BG Partners” or “the Fund”) is a $100 million early-stages venture capital (VC) fund focused on investments in new energy, specifically - solar, nano-medicine, and other advanced “post-semiconductors” applications. A team of veteran technology investors leads the fund. We understand in depth the breakthrough implications of technology – specifically, the converging critical dimensions in the biological sciences and semiconductors. We observe that modern energy economics is becoming similar to the economics of silicon-computer systems – energy is transitioning from being “analog” to “digital”. We are positioning the Fund to define, enhance and capitalize on these opportunities for sophisticated investors.
We already invested a seed fund with the same vision. The new Fund is a follow-up to support these platform investments together with other opportunities.
We believe that nanoenabled energy future is ahead for us. Advanced materials and the latest technologies are reasonably expected to bring solar devices efficiency from the current level ~20-30% to astonishing 60% and above. Zero-energy car is becoming a reality. We believe in solar energy, being completely renewable, emission-free, and distributed (photovoltaics) as a leading segment in the energy solution. Solar power is complementary with water purification & desalination, which would further reduce the costs.
The Mission of the Fund is to further maintain SiV-BG Partners as a premier venture capital operation. The Fund will build a strong portfolio returning reliable and superior long-term financial gains through discipline and differentiated, clearly articulated strategy.
We will invest in a carefully selected portfolio to incubate and build major new enterprises. Furthermore, we will develop and maintain an effective organization with ability to grow and evolve as an institution for future partnership cycles.
Core of our Strategy. Uniqueness of the Fund. We will be concentrating on the already well-defined adjacent markets of new energy, other clean•green-tech and nano-medicine applications. Clean•green technologies span range of industries including alternative energy and its storage, recycling, waste management, and advanced new "clean" materials. These technologies are rapidly penetrating existing Main-Tech markets of 10’s and 100’s billion dollars (from Electricity Generation and Batteries through Engines and Fuels to Construction and Water). Convergence of new energy and bio-technologies is leading to efficient integrated nano-bio-energy solutions.
The Fund is strategically headquartered in the Silicon Valley. The diverse community here has developed a distinct business culture, based on common-sense procedures and practices, which consistently resulted in building leading companies and new industries. The Fund’s managers matured as professionals in the Valley and strongly believe that such business practices provide a crucial edge to any new enterprise seeking to establish itself. That is why, along with identifying right technologies and right partners, this Fund will work to ensure that its portfolio companies embrace the culture and the best practices of the Silicon Valley.
Silicon Valley has deep-rooted manufacturing and prototyping traditions. The Fund originated in Los Altos - exactly the same neighborhood where Steve Jobs team built the first 50 Apple Computers. Among other things it makes us think hard how to design and build winning products, about go-to-market policies and practices. While we are in a transformational period for manufacturing (new strategies may or may not include China), we would expect our companies to manufacture here in the Valley and broader - in the US.
Team.The Fund’s powerful team is a unique mix of seasoned Silicon Valley venture capital professionals and talented entrepreneurs with established track record working together as a team. This is our competitive advantage. Managers of the Fund are senior industry executives active in portfolio companies. We bring technical expertise, operational experience, strategic perspective, prior investments success, and wealth of our networks to assist entrepreneurial teams as they establish and expand their businesses. We grew up with semiconductor industry, life sciences, and have been involved with new energy initiatives early on. We have experienced the challenges of rapid technological innovation and business growth, been part of the emergence of new business models, and seen what works and what doesn’t. The “post-semiconductor” environment has the same characteristics - the basic strategies and winning approaches are the same. The Fund understands this environment.
SiV-BG Partners has access to a distinguished, dynamic, world-renowned group of Advisors and Venture Partners. We see our Limited Partners as a resource. To fully benefit from their leadership, we plan to consult with them frequently in order to achieve a meeting of minds and needs. We expect that traditional interactions - annual partnership meetings and events designed to raise new funds - will represent only a very small percentage of our on-going communications with Limited Partners.
We are very fortunate. The Limited Partner of our seed fund (Silicon Values Partners I) is a distinguished, very entrepreneurial family running a rapidly growing large high-tech business with increasing success. They have built sophisticated software company from scratch and sold it to Yahoo for several hundred million dollars. Their recent achievements have been featured in Forbes and Guinness book - an excellent example of the triumph of the core team talent and technology. Our relationships are 30-years deep - they are friends, trusted advisors, and colleagues.
The Fund represents new generation of VC managers. The team is unique and attractive to Limited Partners because it fits well into several key selection criteria - “proven money makers”, “unusual expertise”, and having access to “unusual networks & deal flows”. We further differentiate with the unique ability to create industrial partnerships and clusters of platform solutions - that strongly contributes to the competitive advantage of SiV-BG Partners. Sophisticated Limited Partners will recognize this opportunity to establish a long-term relationship early on.
SiV-BG Partners seek out leaders for its portfolio companies - those individuals who possess both the strategic ideas and business acumen to create a viable enterprise. The partners skills and networks allow them to build dynamic, well-qualified and, ultimately, successful teams. We are the entrepreneur’s long-term partners, maintaining very high standards for integrity, trust, fairness, and direct communication.
Process.The general strategy is to assess opportunities, invest in those with the highest potential for success, and assist building new businesses with significant growth and market leadership. We will work closely with portfolio companies, providing strategic guidance, operational expertise, recruiting assistance and active participation on their Boards of Directors. This proactive, hands-on approach leverages partners’ technical expertise, operational experience, and, with the rich network of industry contacts, directly contributes to the uniqueness of the Fund. The Fund employs a sophisticated methodology and valuation model to analyze opportunities, help of its Advisors and Venture Partners to make informed investment decisions. With co-investors, it will assist build businesses and will affect profitable exits. In short, the Fund will leverage relationships and well-defined processes to maximize investment opportunities and returns.
Current Portfolio.We have invested in several companies that clearly illustrate the Fund’s investment perspective. The Managing Directors and Venture Partners are actively working with these and other companies in the Fund’s target areas of investment, helping with the following: recruiting personnel, planning financials, developing marketing strategies, driving fundraising activities, and coaching management. More information about these companies can be found in the Portfolio section of this document.
In Summary, Silicon Values Partners II, L.P. will work to develop and maintain an effective, forward-thinking organization, able to grow and evolve in preparation for future partnership cycles. The Fund’s analysis of promising technology, economic, and social trends over the years has proven to be right (“Silicon Economics”, book by BG Partners). We identified early the need and tremendous potential for the next-generation of clean•green-tech, medicine, robotics & media applications. This is the Fund’s focus. These applications now are clearly connected to the very large existing markets of energy, civil & industrial infrastructure, healthcare, education, consumer and entertainment. SiV-BG Partners believe that the time to invest there is now. The team is highly qualified, focused, and driven to provide Limited Partners with financial benefits from clearly emerged market developments. The group is well prepared to incubate and build major new enterprises, mitigating risk through sharp focus and meaningful partnering. The Fund is dedicated to generate outstanding returns for the Limited Partners.
WE OFFER VALUE-ADDED IN-DEPTH OPERATIONAL, TECHNICAL AND INVESTMENTS EXPERTISE FROM SILICON VALLEY VETERANS WITH EXTENSIVE INTERNATIONAL EXPERIENCE. WE ARE PROVEN MONEY MAKERS WITH UNUSUAL CAPABILITIES AND UNUSUAL NETWORKS & DEAL FLOWS.