Corporate Venturing
Crystal Ball:
2012 in Review, 2013 Outlook
Tuesday, December 11, 2012 | 9:00 a.m. PST
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Presenters
James Mawson
Patty Burke
Founder and Editor
Global Corporate Venturing
[email protected]
Partner
Bell Mason Group
+1 831 688 6181
[email protected]
Do not copy or distribute
Mark F. Radcliffe
Partner and Head of Corporate
Venture Capital Practice
DLA Piper
+1 650 833 2266
[email protected]
2
Agenda
Introduction:
Participant Poll
Mark Radcliffe
Global Corporate Venturing: Annual Survey Preview
James Mawson
Bell Mason Group Research: 2012 Trends, 2013
Challenges
Patty Burke
Poll Results / Q&A / Closing
Do not copy or distribute
3
CVC: critical for innovation
Considering the benefits that venture investing offers when best
practices are employed, the real question is whether corporations
can afford not to join the game. In an economy where innovation
spells the difference between success and failure, corporate
venturing can spur tomorrow’s innovations while it helps build an
organization in which innovation is business as usual.
Boston Consulting Group, October 2012
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4
New legal trends: intellectual property
assets
Intellectual property strategy
 Individual portfolio companies
 Across entire portfolio of companies
> Developing platform
Patent Strategy
 Independent value of assets: Nortel $4.5B
 Friendster
> Sold to MOL Global for $39.5M
> Sold 18 Friendster patents to Facebook: $40M
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5
Agenda
Introduction:
Participant Poll
Mark Radcliffe
Global Corporate Venturing: Annual Survey Preview
James Mawson
Bell Mason Group Research: 2012 Trends, 2013
Challenges
Patty Burke
Poll Results / Q&A / Closing
Do not copy or distribute
6
Reframing the Argument
Reframing the Argument
By
James Mawson,
Global Corporate Venturing
7
Data Overview
Bumper year for corporate-backed exits.
Investment pace slowed, as VCs pulled back.
US still about two-thirds of the market.
IT still dominates but with media, health and
consumer closer behind, clean-tech dropping.
• Corporates help allay concern over the seedto-A cliff with 212 first-round deals.
•
•
•
•
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New Funds
• 2012 maintained the rapid growth in the
industry. (Top 21 next slide)
• Rapid growth in China and Japan and UK, each
equaling US launches.
• Trend maintained of multi-corp. launches
• Across all sectors – from IT to industrial to
services
• More than 200 launches since 2010, industry
of more than 750 programs.
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21 New 2012 Funds of > $100M
(Total of $6.4B committed)
Asia-Focused Funds
Haitong Securities &
Shanghai Media Group
$1.97 B
480
SK Group
Netease
450
Fidelity
250
Ping An
China Aerospace Science &
Technology Corporation
158
Tencent
158
ROW-Focused Funds
316
158
$.75 B
Europe-Focused Funds
$1.55 B
LVMH
523
Wellcome Trust
300
France Telecom/Publicis
200
Evonik
130
Telefonica
392
US-Focused Funds
$1.41 B
Google
600
Merck & Co
250
SAP
155
Cisco
547
Bertelsmann
100
Virgin
200
Dell
100
YouTube
100
Intel
100
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10
2013 Outlook Survey
• Corporate venturing into innovation strategy –
being the new PowerBrokers.
• Doing deals, working with business units,
globalising a team, cross-sector deals
• Reframing the argument from corporate
venturing with “baggage” to having “Santa’s
sack”.
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11
Thank you
James Mawson
Founder and Editor,
Global Corporate Venturing
Global University Venturing
[email protected]
12
Do not copy or distribute
Agenda
Introduction:
Participant Poll
Mark Radcliffe
Global Corporate Venturing: Annual Survey Preview
James Mawson
Bell Mason Group Research: 2012 Trends, 2013
Challenges
Patty Burke
Poll Results / Q&A / Closing
Do not copy or distribute
13
BMG Research Preview – 2012 Trends, 2013 Challenges
Corporate Venturing and Innovation Groups:
Evolving Approaches and Objectives
Trends: CV, Incubation, Commercial Piloting, CIO Office
5th Wave of Corporate Venturing – Global Next Generation CVC
Overcoming Corporate Barriers, Accelerating Process
Strategic Metrics that Matter:
Value Delivery for a Range of Stakeholders
© 2012 Bell Mason Group
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14
2012 Trend: Evolving Corporate Innovation Approaches
The Venture Imperative
H. Mason, T. Rohner
© 2012 Bell Mason Group
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15
2013 Challenge:
Overcoming Corporate Barriers in All Quadrants
Bell Mason CV&I Unit Operating Dimensions
Platform &
Portfolio
Invest/
Incubate
Business Plan
Platform
CEO/GM
Controls/
Processes
© 2012 Bell Mason Group
Performance
Marketing
Biz Dev/Partners
Portfolio
Finance &
Operations
Market
Team
Funds
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Board/Advisors
People
16
Corporate Venturing and Innovation: Challenges by
Quadrant
Platform & Portfolio
Market
• Investment strategies
too broad, too narrow
• Best deal flow, ecosystem
• Asset leverage, value add
• Global reach
• Focus area fit, evolving
corporate strategies
Finance & Operations
People
• Corporate approval process
vs. venture deal velocity
• ‘Making the case to
management’
• Strategic metrics
© 2012 Bell Mason Group
• Team expertise, ‘deal guys’
• Career paths, compensation
• Investment management,
evolving Board roles
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17
Strategic Metrics that Matter –
Delivering Value Beyond the Parent
Challenges
•How to determine relevant metrics for a range of stakeholders?
•How can to quantify and track interim progress prior to value delivery?
•How to build consistent management reporting, ‘at a glance’ dashboards?
Investment Management:
Delivering on promise of risk reduced value
acceleration for stakeholders
© 2012 Bell Mason Group
Do not copy or distribute
18
18
2013 Great Expectations:
Maximize the Good, Prevent the Rest
Good
Bad
Ugly

Harvesting insight for
corporation, beyond
science
 Investment
management missteps,
failure to deliver
 Stop/start cycles
continue, Corporate
Venturing wave peaks

“Building the case’:
metrics, reporting, at a
glance dashboards
 Sluggish execution

Earning respect: VCs,
entrepreneurs,
ecosystem
© 2012 Bell Mason Group
Do not copy or distribute
19
19
2013 Global Developments and Trends
• ‘Global Innovation Hubs’
emerging: Investment and
assets to nurture innovation
• Government role as
innovation ecosystem players
© 2012 Bell Mason Group
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20
Agenda
Introduction:
Participant Poll
Mark Radcliffe
Global Corporate Venturing – Annual Survey Preview
James Mawson
Bell Mason Group Research: 2012 Trends, 2013
Challenges
Patty Burke
Poll Results / Q&A / Closing
Do not copy or distribute
21
Questions?
Mark F. Radcliffe
James Mawson
Patty Burke
Founder and Editor
Global Corporate Venturing
[email protected]
Partner
Bell Mason Group
+1 831 688 6181
[email protected]
Partner and Head of Corporate
Venture Capital Practice
DLA Piper
+1 650 833 2266
[email protected]
Do not copy or distribute
22
Closing - CV&I 2012 – 2013 Calendar Notes
Date
Event
December
Global Corporate Venturing CV Special Edition – CV 201
January
2013 Webinar Series Kick-off
February 1113
IBF Corporate Venturing and Innovation Partnering
Conference, Newport Beach, CA
BMG leads Pre-Conference Workshop Feb.11 – Use BMG
Discount Code CVPB
March
Next Webinar in series
May 20-23
Global Corporate Venturing PowerBrokers Conference,
London
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