THE NEXT GENERATION
OF ENTREPRENEURS IS
CAPITALIZING ON A FASTER
INNOVATION CYCLE, NEW
TECHNOLOGIES AND A MORE
In 2013, a rising generation of technology-savvy entrepreneurs brought new products and disruptive ideas into the global spotlight. The most productive innovators of 2013 set ambitious goals and were successful due to their creativity, market insights, unshakable fortitude and strategic execution. At Goldman Sachs, we work with new entrants and disruptive companies that change the way businesses compete and drive progress.
14 IN A WORLD OF LARGELY
RADICAL THINKERS CAN
HAVE THE BIGGEST IMPACT
NO ONE EPITOMIZES TRANSFORMATION more than Elon Musk. From his trailblazing electric car company, Tesla Motors, to his proposed solar-powered Hyperloop intercity transporter, Musk’s ideas are intended not merely to challenge convention — but to shatter it. Simply put, Musk doesn’t know how to think small. As his ideas continue to move from concept to reality, they often do so with the assistance of Goldman Sachs. For example, in 2013, we helped to raise over $1 billion in financing for Tesla Motors, serving as sole manager and lead left bookrunner for respective offerings of common stock and convertible bonds.
GROW THEIR BUSINESSES
AND SCALE QUICKLY
“The 2013 Builders & Innovators Summit brought together a group of entrepreneurs that are doing really interesting work — so that they can network, and have an opportunity to interact with other innovators who have been successful at building businesses and establishing their platforms. Our goal is for the entrepreneurs to take away best practices, connections and relationships that will help them achieve their goals.” — David Solomon, co-head of the Investment Banking Division at Goldman Sachs
The Summit gives 100 rising entrepreneurs the chance to share ideas among their peers and learn from some of the most seasoned business and financial leaders in the world.
“When you’re an entrepreneur, your passion and vision are so strong that it’s almost impossible for somebody to knock you over.”
Julie Rice, SoulCycle co-founder and co-CEO, helped found the popular indoor cycling chain because she believed spin class “could be so much more.”
“Take advantage of the opportunities in front of you, take a risk, jump.”
Elizabeth Cutler, SoulCycle co-founder and co-CEO, looks forward to expanding her company to new cities, overseas and across the Internet.
“I’m not selling something that’s just a product for me. This is my life, and I’m all in.”
Ben Milne, Dwolla co-founder and CEO, founded a stand-alone payment network and infrastructure after seeing his profits diminished by credit card fees.
“If you’re doing something you’re deeply passionate about, that’s giving you meaning, that you believe in, the journey is as much a satisfactory experience as the goal.”
Daniel Lubetzky, KIND Healthy Snacks founder and CEO, created a revolutionary line of healthy snacks made from ingredients you can see and pronounce®.
16 First-movers do not always rise to the top — creativity, a sound business model and a keen understanding of consumer preferences set enduring market leaders apart
DANIEL EK AND MARTIN LORENTZON in Sweden saw a sea change in the way the world discovers, buys and listens to music. Founded in 2008, Spotify became a global leader in online music subscription because Ek and Lorentzon identified the right mix of a successful freemium model, social networking features and a service that gives users access to over 20 million tracks. The company has grown with strategic advice and financing from a number of investors, including Goldman Sachs. Spotify now has over 24 million active users and over 6 million paying subscribers worldwide.
17 ENTREPRENEURS WITH THE RIGHT ANSWER, AT THE RIGHT MOMENT, EXPERIENCE RAPID GROWTH
As data becomes a key strategic resource for businesses, powerful data storage solutions are becoming mission-critical. Nimble Storage CEO Suresh Vasudevan saw this opportunity and helped companies around the world rethink their traditional approaches to data storage. The idea: a hybrid, Flash-optimized storage platform powered by a new storage operating system that integrates the speed of solid-state storage with the efficiency of high-capacity disk storage. The result: a new solution that delivers higher performance, uses less hardware and provides next-generation support through an innovative cloud-based service. In December, Nimble raised $193 million in its IPO, lead managed by Goldman Sachs.
18 U.S. entrepreneurs are continuing
to create new jobs
We’ve continued to expand Goldman Sachs’ 10,000 Small Businesses program in the U.S., helping entrepreneurs across the country to create jobs and economic opportunity by providing greater access to education, capital and business support services. Through collaboration with leading business schools, the $500 million program delivers an integrated curriculum of management classes and the professional support to develop a strategic and customized business growth plan. In a recent survey conducted by Babson College, 63.7 percent of program graduates increased revenues within six months and 44.8 percent added new jobs.
Adding New Jobs
19 In the
“Small business owners are, by their very nature, very entrepreneurial. Often, they’re experts in their field. What they sometimes aren’t, are experts in running a business. Our 10,000 Small Businesses program aims to give people core skills necessary to grow a business.” — Michelle Pinggera, international chief of staff at Goldman Sachs
In the United Kingdom, high-growth entrepreneurial businesses generate a disproportionate number of jobs and innovations. Such businesses are the primary focus of 10,000 Small Businesses U.K., a Goldman Sachs Foundation initiative that offers entrepreneurs business training, networking opportunities and support in accessing capital. A key objective of the program is to help create networks of local “communities of entrepreneurs” across the country. Community building was a major focus of the last gathering of program alumni in London, who convened not only for the chance to hear about growth strategies from notable corporate leaders, but also for the opportunity to meet other entrepreneurs, make business connections and find solutions to commonly shared problems.
20 CLOSING THE CREDIT GAP: PROVIDING CAPITAL FOR WOMEN ENTREPRENEURS GROWS BUSINESSES AND HELPS LOCAL COMMUNITIES
THE GOLDMAN SACHS 10,000 Women initiative reached an important milestone in December when the 10,000th woman was enrolled in business and management education. To further deepen its commitment to women entrepreneurs around the world, Goldman Sachs 10,000 Women recently launched a $50 million new partnership with IFC to create the first-ever global finance facility for women-owned small and medium enterprises (SMEs), which will enable approximately 100,000 women to access capital. New research by Goldman Sachs, Giving Credit Where It Is Due, shows that access to credit is the biggest constraint on growth for women-owned SMEs, and that closing this credit gap for women could increase per capita income in BRIC and Next 11 countries by an average of 12 percent by 2030. Coupled with the business and management education that 10,000 Women will continue to provide globally, the capital this new partnership will catalyze will give women entrepreneurs a greater chance of reaching their full potential. The Goldman Sachs Foundation will provide a $32 million anchor investment in order to catalyze capital from commercial investors and bilateral donors. The facility will extend lines of credit and share risk with local banks in emerging markets, enabling them to on-lend to women-owned SMEs. In order to spur innovative approaches to lending to women entrepreneurs, The Goldman Sachs Foundation will provide an $18 million anchor donation to fund capacity building support for banks and women borrowers. This support will address the barriers to banks deploying capital and women entrepreneurs accessing it.