Corporate Venture Group Upping the Ante

Transcription

1

2 Corporate Venture Group Upping the Ante

3 CVG Program Overview Welcome CVG Overview & Accomplishments Seizing the opportunity Phil Giesler (Panel) CVC Ambitions & Objectives Gerald Brady, Moderator (Panel) Corporate & Financial VCs Working Together Steve Socolof, Moderator NVCA Annual Meeting Opening Lunch 3

4 CVG Outgoing Advisors Russell Greig, SR One Ltd. Dennis Merens, The Dow Chemical Company Sanjiv Parikh, formerly with Hewlett-Packard Jim Hale, FTV Capital (NVCA Board Liaison) Thanks to all for their great contribution and support!

5 2011 Executive Committee Phil Giesler, Chairman: Unilever Corporate Ventures/Physic Ventures Lisa Frankovich, Incoming Chair: Adams Capital Partners Greg Foster, Immediate Past Chair Sherrill Neff (NVCA Board Liaison)

6 CVG 2010/11 Advisory Board Wes Cole, Alcatel-Lucent Ventures Barbara Dalton, Pfizer Claudia Fan Munce, IBM Venture Capital Group Annette Finsterbusch, Applied Ventures Constance Freedman, Second Century Ventures Mary Kay James, DuPont Ventures Alan Koenning, UPS Jacqueline LeSage Krause, The Hartford Dan l Lewin, Microsoft Alexander Marquez, Intel Capital Kevin McElgunn, The Dow Chemical Co. Steve Socolof, New Venture Partners Paul Weiskopf, Adobe Systems, Inc.

7 Our members.. Adobe Systems Inc. Alcatel-Lucent Ventures Applied Ventures, LLC Ascension Health Ventures, L.L.C. L Chevron Technology Ventures Clarian Health Ventures Companion Capital Management, Inc. Covidien Ventures D.E. Shaw & Co., L.P. The Dow Chemical Company Duchossois Technology Partners, L.L.C. DuPont Ventures General Mills Google Hartford Ventures Hewlett-Packard Co. i2e, Inc. IBM Venture Capital Group In-Q-Tel Inc. Intel Capital Johnson & Johnson Development Corporation Kaiser Permanente Ventures Lilly Ventures Mayo Clinic Health Solutions Microsoft Corporation Mitsui & Co. Venture Partners, Inc MP Healthcare Venture Management, Inc. Novartis Venture Fund Pfizer Strategic Investments Group Physic Ventures (Unilever and PepsiCo) Procter & Gamble S.R. One, Limited Safeguard Scientifics, Inc. Second Century Ventures Siemens Venture Capital, Inc SOFTBANK Capital SRI International Steamboat Ventures SVB Capital Partners UPS Strategic Enterprise Fund Visa International Walgreens Yasuda Enterprise Development Co., Ltd

8 CVG Accomplishments

9 Three sub-groups formed in 2009 Membership: led by Claudia Fan Munce Events: led by Phil Giesler Education: led by Lisa Frankovich

10 CVG Membership Committee A top-target list of non-member CVCs was created for solicitation of new members Six corporate members have joined NVCA since June They are: Alcatel-Lucent Ventures Coca-Cola General Mills SRI International SYNGENTA Walgreens Co. 10

11 CVG Events Committee Polled all CVG members to get their view on priorities Common viewpoint i that t we need to move beyond CVC 101 Top priority: gaining strategic value from and for the corporate structures and governance and performance measurement also scored highh Creating overlap between the VC and corporate for portfolio companies Aligning scope, vision, timeliness Managing the corporate board 11

12 CVG Education Committee The CVG strongly believes that providing valuable content and relevant resources are some of the most important benefits found within the CVG. The sharing of best practices and informational tools, provide an opportunity for venture programs to gain momentum and flourish. Education Committee achievements include: A Frequently Asked Questions document is now available on the CVG portion of the NVCA website. Members provided answers regarding CVC models, reporting structures, compensation, strategic valuation, etc. Complete overhaul of the CVG portion of the NVCA website. The revamp allows users to more readily access information relating to a variety of subjects and tools including: Membership info, Events, FAQs, members-only Online Discussion Forum, Data & Benchmarking Benefits, Investment Stats, Article/Publication Library and more On the Horizon: CVG Webcast Series first program on Performance Measurements 12

13 Corporate Venture Group Summit Boston Nov 4 th Structures and Governance Aligning the vision Alternatives approaches for participation Corporate deal structures Building Strategic Value Ways of working with portfolio companies Bridging the relationship Deal flow sharing Managing the link to Open Innovation Working with traditional VC s Building Growth options Incubating and seeding start-ups Spinning out and growing Scaling with a corporate

14

15 Seizing i the opportunity of the Corporate Growth Agenda PHIL GIESLER Innovation Director Unilever Corporate Ventures Physic Ventures, LLC

16 VC s throttled back in 2009 Total VC investment $BN $17.8BN, Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters

17 Corporate VC s were no exceptions Total CVC investment t $BN $1.3BN, Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree Report, Data: Thomson Reuters

18 Corporate participation in deals holding firm % of Venture deals and $'s from CVC % of $'s 30.0% %ofdeals 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% year

19 Take outs..what s been happening Corporates have had less cash to invest in venture Off-balance sheet investors have throttled back However corporates recognize more than ever the growth imperative Open Innovation is increasingly i at the center of their thinking Growth agenda now paramount as businesses seek to think beyond the recession Corporates are about to enter a very different and very unfamiliar environment this was no ordinary recession.the bubbly asset prices, even easier credit and cheap oil that fueled America s age of consumerism are not about to return. Instead America s economy will undergo one of its biggest transformations in decades..bringing different lifestyles and different jobs in different places The Economist: Time to rebalance: A special report on America s economy: April 3 rd 2010

20 There has been a multi-decade shift in technology innovation towards smaller enterprises % of spend of US R&D by size of enterprise 100% 90% 80% 70% > < % 50% 40% 30% 20% 10% 0% Source: National Science Foundation, Science Resource Studies, Survey of Industrial Research Development Thanks also to Sanjiv Parikh for this slide

21 Corporates are making some big shifts not just new NVCA members But also putting resources on the ground in the Valley Recent announcements of W. Coast offices.now seeing this for Asian businesses too

22 Corporate VC: the impact on the broader VC market Likely material reduction in the number of venture firms Fundraising environment, succession plans, move to smaller funds The imperative for partnership for start-ups Dominance of M&A as the exit route Source of non-dilutive capital and market entry mechanism Competition accelerates for corporate venture investors Choices for partnership are growing Corporate VC money and expertise likely to be of growing significance in the future For corporates, increasing open innovation capabilities means that they are looking for more than just scouting new technologies.new growth options will be a major deliverable from VC partners

23 Challenges and Thoughts.using partnership to build a business The VC Capital Partners Discipline Structure New Business The Start-up Speed Entrepreneur New capabilities The Corporate Technology Resources Scale

24 Partnering to Scale $1BN $100MM $10MM $1MM Insight Catalyze Partner Buy Corporates need to shift the needle on growth Frequently that means scaling beyond VC means How do partnerships manage this? What s the role of private equity? How do you transition through the growth stages?

25 ..we look forward to seeing you in the months ahead and in Boston on Nov 4 th to discuss and tackle these issues.

26

27 CVC Ambitions and Objectives in 2010 and Beyond GERALD BRADY - Moderator Managing Director, SVB JONATHAN GLASS Managing Director, GE Capital STEVE MELLER Chief Innovation Catalyst, Procter & Gamble ROB TRICE Senior Managing Director, SK Telecom Ventures

28

29 Corporate and Financial VCs Working Together to Build Value STEVE SOCOLOF - Moderator Managing Partner, New Venture Partners NAGRAJ KASHYAP Vice President, Ventures and Innovation Qualcomm Ventures STEVE KRAUSZ General Partner, US U.S. Venture Partners RISA STACK Partner Kleiner Perkins Caufield & Byers JENNIFER GOLDSTEIN Director, Pfizer Venture Capital