igal rotem invent or die
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Day of the Entrepreneur 2008Tuesday, June 03, 2008TRANSCRIPT
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Invent or Die The PowerDsine version
Igal Rotem – CEO and Co-Founder: [email protected]
MIT Forum - Day of the EntrepreneurJune 3rd 2008
Copyright © 2008 by PowerDsine Ltd. All rights reserved. No part of this presentation may be reproduced or distributed in any form by any means, or stored in a data base or retrieval system, without the prior written permission of PowerDsine.
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PowerDsine Snapshot
Established in 1995
New product line every 2-3 years
1999 - Creating “Power over Ethernet”
2003 – Power over Ethernet IEEE 802.3af
standard ratified
5 private financing rounds raising about $60M
2004 –IPO in NASDAQ raising $80M
Global presence; R&D in IsraelSales in the U.S. Taiwan, Korea
January 2007 Acquisition by
(MSCC) for $250M
Most InnovativeProduct
OutstandingEmergingCompany
Key Contributor to 802.3 af
PowerDsine Headquarters
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Leading, Global Customer Base
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1995 – First Cooperation
First product – Ring Signal Generator
First Customer -
1 half time employee…
1 office space..
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1998 – PairGain Systems…
New Product Line xDSL Modules.
Can you sell to a Giant ???!!!
Make sure your products works !!!…
You have to have enough money..
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VoIP Phone
WLAN Access Point
Network Security Device
2000 - Power-over-Ethernet (PoE)
Data and Power over a single Ethernet cable
Transmitting safe and uninterrupted power (15W, 48V) over existing LAN infrastructure
IEEE 802.3af standards based
CostSavings
ImprovedNetwork
Reliability
PoE EnabledLAN Switch
1011
011
1011011
1011011
Power
EthernetCable
Power
Power
Ease End Device
Deployment
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PowerDsine: Strong Technical Foundation
Analog / Mixed SignalAnalog / Mixed Signal
SoC IntegrationSoC IntegrationPower ManagementPower Management
Software / Embedded Controller
Software / Embedded Controller
Comms / NetworkingSystems Expertise
Comms / NetworkingSystems Expertise
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2001- Raising $30M
Private funding after the burst of the bubble….. Great FUN….
“Don’t ever try to catch a falling knife…”
Europe here we come….
Signing date: 11-Sep-2001 @ 5PM…
What’s next ??!!!
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Pioneer of PoE Technology
Power-over-Ethernet Standard approved in June 2003
Over 70% of the Standard contributed by PowerDsine
System ProtectionCompatibility
PowerSafe Solution
802.3af
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27.8
43.5
62.8
84.9
105.9
2005 2006 2007 2008 2009
PoE Switch Market (millions of ports) (1)
(1) Source: Gartner Dataquest, November 2005.
2005 – 2009 CAGR: 40%
PowerDsine: Growing PoE Opportunity
PoE market is being driven by emerging high growth applications
VoIP
WLAN
WiMAX
Advanced security
PowerDsine first to sell PoE ICs commercially
PowerDsine sells to nearly every Ethernet switch vendor
New applications for PoE using the 802.3at high power standard such as laptops will drive future growth
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2004 – Going Public
One of the first Israeli startup going public after 2001
“A” Team…led by CITI Group.
SEC, Lawyers, Accountants, and more Lawyers…
RoadShow – around the world in 14 days…
June 10th 2004 – First Trading Day
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Invent or Die – Some observations:
If you build a new market, become #1 or #2, or else you will have no business nor profits
Invest in IP, it may be your ONLY way to make a living..
Constant search for new growth engines
Assume new market will grow 3 times slower than you think
When the market will be large, the big guys will get in
Price decline will be 2 -3 time faster if the market is growing
Don’t believe the research firms, they have no clue, and they charge a lot for telling you that…
Last but not least, BE OPTIMISTIC !!!
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2007 - M&A The Bride is here where is the Groom ??
Companies are been BOUGHT not SOLDBut process is still a MUSTPrepare yourself and the teamMake sure that the Bride will havemore than 1 admirer..The highest bidder is not necessary the right one…
Short negotiation and process are KEY, Its like fresh milk, if stays out too long it gets sour….
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…The outcome of too much US market focus…
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Discussion….☺