How To Invest In An Industrial Efficiency Start Up

Transcription

1 Ecosummit London, October 7/8 th, 2014 Strategic investments in industrial efficiency start-ups Itziar Estevez, Siemens Venture Capital

2 Common questions and concerns from start-ups about strategic investments Will an investment from Siemens Venture Capital limit exit opportunities? Will you have the ability to block an acquisition by a competitor of Siemens? Does Siemens Venture Capital make the portfolio companies captive for a potential acquisition at a later stage? How will Siemens competitors perceive an investment from Siemens? Will we still be able to work with them? What special rights does Siemens Venture Capital take as an investor? Will you try to push the Siemens strategic agenda? Page 2

3 Strategic investments create tight links between corporate and start-ups Type of cooperation Acquisitions Venture investments Co-development projects Benefits from venture investments Align long-term interests between corporate and start-ups Have a skin in the game by owning a portion of the company Ensure the company is properly financed to engage in a strategic partnership In certain cases, first step towards a potential acquisition down the road Partnerships Our objective is to build strong stand-alone companies Page 3

4 Siemens Venture Capital aims for different paths to exit Example of portfolio companies acquired by: 1 Competitor of Siemens Products and services for the industrial cyber security (Canada) Exit: 2014 Photo-realistic 3D visualization (Germany) Exit: Company in a different space than Siemens Software for automated field service management (USA) Exit: 2014 Intelligent Transport Systems (China) Exit: Siemens Lighting control systems (USA) Exit: 2011 Page 4

5 This year, we launched a $100m early stage fund focused on industrial technologies Investment criteria: Pioneering start-ups that have the potential to change the landscape of manufacturing and industrial automation Pre-revenue, with proof of concept Size of investment $500,000 to $1,000,000 Industry of the future Fund Four investments closed in the Industry of the Future Fund: Software platform for accelerating the development of cloud-based digital eyewear applications (USA) Cloud-based high performance photorealistic 3D visualization (Canada / Germany) Predictive cyber security based on bioinspired algorithms (Israel) Cyber security: next generation end-point protection (USA) Investment criteria: Siemens existing venture capital funds Emerging technologies with high growth potential in the area of Industry, Energy, Infrastructure & Cities, Healthcare Commercially proven products and services, revenues generally above $5,000,000 Size of investment $1,000,000 to $10,000,000 Page 5

6 We are part of Siemens and cover different asset classes Siemens Venture Capital business lines & services Siemens Business Mandate Corporate Venture Capital (for Siemens Divisions) Private Equity Asset Management (for Siemens Pension Trusts) VC Fund-of-Funds Management (for Siemens Pension Trusts and institutional investors) Asset Classes Venture Capital direct investments (early to expansion stage) Technology Growth Equity, PIPE Mezzanine debt, convertible notes Venture Capital fund investments Private Equity fund investments (LBO, turnaround, Growth Equity, secondaries) Private Equity buy-out co-investments Offered Service Full PE/VC life cycle asset management Investment strategy development, focused market screening, due diligence, transaction financing, board representation, value creation, portfolio management and monitoring, exit realization Page 6

7 Resource efficiency and cleantech is an important part of our direct investment portfolio Example of portfolio companies in the cleantech space Bio-ethanol production from industrial waste gases (New Zealand) Energy and industrial emission control and oil vapor recovery (China) Building automation software solutions (USA) Nanogrid energy storage solution, integrated with on-premise PV (USA) Software suite for energy optimization in commercial buildings (Australia / USA) Dual-axis trackers for ground mounted PV and CPV installations Utility-centric energy service management solutions (USA) Product and corporate sustainability performance solutions (Germany) Page 7 Charging infrastructure for Electric Vehicles and Plug-in Hybrids (USA) Turnkey systems for power cogeneration, waste heat recovery, effluent water recycling (India) Products and services for diagnosis and condition monitoring of cables (Norway) Intelligent energy management solutions that provide commercial and industrial end users (USA)

8 Contact details Itziar Estevez Thank you! Page 8