Design in Tech Report 2015

Design has become a game changer in Silicon Valley. Last year, John Maeda joined KPCB as the firm’s first Design Partner, joining from his role as the President of the Rhode Island School of Design. Now, in his inaugural #DesignInTech Report, Maeda highlights the rising importance of design in the entrepreneurial ecosystem. Drawing on extensive research and his own conversations with hundreds of designers, Maeda examines the intersection of design and technology. The report covers trends ranging from the record amounts of funding flowing into design-led startups to M&A activity with major tech corporations. Beyond designers and technologists, the report will appeal to a broad audience. For all of us who use a computer or mobile device, great design is changing how we live and work. This report helps explain why.

Published in: Design

Design in Tech Report 2015 from Kleiner Perkins Caufield & Byers

Transcript

1. #DesignInTech Report John Maeda, Design Partner Kleiner Perkins Cauﬁeld & Byers 1 TEAM: JACKIE XU (TALENT), AVIV GILBOA (MARKETING & COMMUNICATIONS), JUSTIN SAYARATH (TALENT) WITH SPECIAL THANKS TO CHRISTINA LEE, JULIET DE BAUBIGNY, MARY MEEKER, MIKE ABBOTT 5/15 v 1.1
2. Source: @kpcb @johnmaeda #DesignInTech 2 1 The Data of #DesignInTech 2 A few thoughts about Design, Tech, and Business 3 Why should you (and businesses) care about #DesignInTech? 4 How do you become a #Design(er)InTech? 5 Final Thoughts Overview
3. 3 1 The Data of #DesignInTech
4. Source: @kpcb @johnmaeda @jshoee @wired @philippbohn @anthonydimare #DesignInTech Nine creative ﬁrms have been atypically acquired by companies known for tech like Facebook, Flextronics, Google; also Accenture, Capital One, BBVA, McKinsey & Co http://www.wired.com/2013/05/accenture-fjord/ http://www.americanbanker.com/news/bank-technology/bank-deals-for-digital-design-ﬁrms-highlight-new-mobile-priorities-1073876-1.html http://blogs.blackberry.com/2010/12/rim-welcomes-tat/ 4 2013 2014 2015pre-2013 ■ FACEBOOK +acq. Hot Studio 2013 Timeline of #DesignInTech M&A Activity Agencies acquired by mature startups include 80/20 (+acq. Square 2012), Jet Cooper (+acq. Shopify 2013), Helicopter (+acq. One Kings Lane 2011). ■ ACCENTURE +acq. Fjord 2013 ■ CAPITAL ONE +acq. Adaptive Path 2014 ■ GOOGLE +acq. Gecko Design 2014 ■ FACEBOOK +acq. Teehan+Lax 2015 +acq. Frog Design 2004 ■ FLEXTRONICS +acq. Method 2011 ■ GLOBALLOGIC ■ FACEBOOK +acq. Sofa 2011 ■ GOOGLE +acq. Mike & Maaike 2012 Fourteen ■ BBVA +acq. Spring Studio 2015 +acq. TAT 2010 ■ RIM ■ MCKINSEY +acq. Lunar Design 2015 ■ FACEBOOK +acq. Bolt Peters 2012 ■ OCULUS / FB +acq. Carbon Design 2014
5. Source: @kpcb @johnmaeda @gigaom #DesignInTech Tech companies, and investors, are increasingly seeing the value of designers who know how to work with and within the constraints of the tech industry. https://gigaom.com/2013/11/09/with-moores-law-receding-design-is-how-we-decide/ As the marginal return on more computing power (a la Moore’s law) continues to diminish, a new kind of design will matter more than Moore. 5 The solution to every new problem in tech has been simple: more tech. Why Are Tech Companies Acquiring Design Agencies? 1 A better experience was made with a faster CPU or more memory. 2 Moore’s Law no longer cuts it as the key path to a happier customer. 3 the old way of thinking the new way of thinking
6. Source: @kpcb @johnmaeda #DesignInTech Brian Chesky, Joe Gebbia, and Nathan Blecharczyk co-founded Airbnb in 2008. Brian and Joe are graduates of the Rhode Island School of Design (RISD). The WSJ reported that in October 2014 the valuation of Airbnb was at $13B — up from $10B in April of that year. 6 [Silicon Valley] didn’t think a designer could build and run a company. They were straight up about it. We weren’t MBAs, we weren’t two PhD students from Stanford. Being designers they thought we were people that worked for people that ran companies. —BRIAN CHESKY Co-founder of Airbnb via Dezeen http://www.dezeen.com/2014/01/28/silicon-valley-didnt-think-a-designer-could-build-a-company-interview-airbnb-co-founder-brian-chesky/ http://www.wsj.com/articles/airbnb-mulls-employee-stock-sale-at-13-billion-valuation-1414100930 “ ” What was it like before all this heat around #DesignInTech?
7. Source: @designerfund @kpcb @johnmaeda @jshoee @raphaelschaad @ﬂipboard #DesignInTech 27 startups that were co-founded by designers have been acquired since 2010 by companies like Google, Facebook, Adobe, LinkedIn, Dropbox, and Yahoo. http://designerfund.com/infographic Designing for mobile brought new design and engineering constraints compared with the desktop: 1. Limited computing power, 2. Smaller display → harder to read, 3. Can't rely on network connection, 4. No ‘hover’ state (no mouse), 5. Hand covers screen when using, 6. Apps silo user data. 7 2005 2006 2007 2008 2009 2010 to the Present Fab Level Money Polar Ultravisual WillCall Beats Readmill Simple Sold Tumblr Pulse Mailbox Foodspotting Forrst Behance Acrylic Software Sparrow Mail Slideshare Instagram OMGPOP Posterous Gowalla Hunch Push Pop Press Daytum about.me Songza +acq. for $1.65B Mobile was the inflection point for #DesignInTech Mint +acq. for $1.0B #DesignInTech M&A Activity YouTube Vimeo Flickr Android NUMBER OF DESIGNER CO-FOUNDED TECH COMPANIES
8. Source: @cbinsights @designerfund @kpcb @johnmaeda @jshoee #DesignInTech Five (20%) of the top cumulative-funded VC-backed ventures that have raised additional capital since 2013 have designer co-founders. http://www.kpcb.com/design More design-led startups include Flipboard, Gumroad, Path, Tradesy, Segment.io, Quirky, StoreHouse, The Grommet, SOLS. And startups are bringing design expertise in-house earlier: Ionic Security, ZenPayroll, Remind, and aboutLife are a few startups that had design leads in their ﬁrst 10 hires. 8 Cumulative funding for CB Insights “Internet Sector” category and US-only startups $1.2B 0 2013 2014 2015 #DesignInTech Funding Activity Each blue dot represents a top funded VC-backed startup CUMULATIVE FUNDING Fab.com 1 Pinterest 2 Airbnb 3 Vice Media 4 Lynda.com 5 April 2015
9. Sand Hill Road Source: @kpcb @johnmaeda @designerfund @collabfund #DesignInTech There were no designers on Silicon Valley’s fabled “Sand Hill Road” until January of 2014 when I arrived at KPCB. Since then, six more have now joined VC ﬁrms. http://www.kpcb.com/design VC ﬁrms with designers include: Google Ventures, Sequoia Capital, Khosla Ventures, Greylock Partners, True Ventures, Sutter Hill Ventures. Seed funds for designers include Designer Fund and Collaborative Fund. Accelerators with designers include: Y Combinator and Samsung Accelerator. 9 How is Venture Capital Embracing #DesignInTech? Sand Hill Road New Design Partner in VC JANUARY 2014 Sand Hill Road After JANUARY 2014 Sand Hill Road With new designer partners born away from Sand Hill too: Google Ventures has the largest design team, founded by Braden Kowitz in 2010.

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Thursday, May 28, 2015