knife capital exit conference - may 2014
DESCRIPTION
An overview of the Corporate Venturing landscape and how Tech Entrepreneurs can leverage opportunities in this spaceTRANSCRIPT
Corporate Venturing: Insourcing Innovation
Gareth Jane Startup Technical Strategy LeadMicrosoft BizSpark SA
provision of venture capital by one company for another in order to obtain information about the company requiring capital or as a step towards acquiring it (dictionary.com)
activity of a large company investing money in a smaller company in return for a share of its profits (Cambridge Dictionaries Online)
Innovators Dilemma
Source: http://en.wikipedia.org/wiki/Disruptive_innovation Clayton M. Christensen
Corporate Venturing in Technology Companies
Tech Dev
• R&D• Labs
Product Dev
• BU Dev• Open
Innovation
HR
• Recruit • Knowledge
Man
Bus Dev
• Strategy• Tiger
Teams
Market Dev
• PR• Marketing
AcquisitionLicensing
FundingJoint Dev
SIGOpen Source
Inte
rnal
Exte
rnal
Source: Corporate Venturing in Technology Companies . SDG Group. 2012
Access to existing
distribution channels
Access to proprietary technology
Lower cost of capital
Lower operating
costsLower market entry costs
Pre empt competitive retaliation
Make (a lot of) money
Source: John Bates (C) London Business School 2009
Access to new
distribution channels
Access to proprietary innovation
Lower organisation
al cost of failure
Lower operating
costs
Lower market
entry time
Pre empt competitive
attack
Meet Corporate strategic
goalsSource: John Bates (C) London Business School 2009
Venture Harvesting
turning spare corporate resources into cash
Venture Innovation
Intrapreneurship
@Google Talks
3M’s 15% Time
Microsoft Garage
IBM Jams Hackdays
Ecosystem Venturing
provides seed, venture, and growth-stage funding to the best companies — not strategic investments for Google.
Target: Enterprise, Mobile, Consumer, Health, Data, Science
Nike+ Accelerator (in association with TechStars)
Target: use Nike+ fitness technology to create products and services that will inspire athletes across a broad range of activities
Microsoft Ventures
Target for Microsoft VenturesEmbedded Devices
Enterprise Management
Analytics
Education
Entertainment
Smart Cities
Wearables
Breakthrough Tech
Global Accounts Exposure
Grant Funding:$10k - $50k
Corporate Private Equity
“Intel Capital has the mandate to get the best exit possible for Intel Corp., not to serve as a feeder for Intel Corp.,” Sam Hamadeh
Target: invest across the broad spectrum of technology innovation to encourage the creation of the technologies of tomorrow
Ranking of Tech VC firms, rated by total number of 2013 exits
Source: http://venturebeat.com/2014/05/08/intel-capital-saw-more-exits-than-sequoia-greylock-or-google-ventures-last-year/
The Economist: “Samsung tiptoes into the technology to get familiar with it, then waits for its moment…. When it pounces, the company floods the sector with cash, moving into very high volume production as fast as possible.”
Target: semiconductor, telecommunication, software, Internet, bio engineering and medical industry, film/video industry
Amadeus Capital Partners$75 million
Target: Cloud-based Software to be used by the middle class in Africa, Middle East, Asia and Latin America
Source: http://www.ifra.net/blogs/posts/2009/06/30/naspers-rewarded-for-its-focus-on-emerging-markets
Pharmaceutical/BiotechEurope
CVC Grant VC 1 VC 2 VC 3
USA
CVC Grant VC 1
MediTech NicheGvt/
Research
Pharmaceutical/Biotech
Enterprise Development
Government Funding
Equity Equivalence
Venture Integration Team
Acquisition
Azure Incubation
Funding
BizSpark
Programs
People
Chaotic
Align Early
Thank You