the rise of corporate venture capital; an australian perpective
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Venture Forth The Rise of Corporate Venture Capital
Alfred Lo Lead Principal [email protected] / @apglo
Optus-Innov8 is a collaboration between Optus and Singtel Innov8 bringing together funding and resources for Australian
tech startups
EST. 2010
To help Singtel Group adopt open innovation, seek new growth opportunities, foray into new markets and strengthen its businesses
INDEPENDENT BOARD & DECISION MAKING
SINGAPORE SAN FRANCISCO
TEL AVIV
$200M initial fund size
SCOUT Act as a technology and innovation scout for the group
INVEST Identify and invest in promising companies which have synergistic value to the group
BUILD AWARENESS
Be the partner/investor of choice for startups
PARTNER Develop partnerships to accelerate incubation of new ideas
UNICORNS WITH CORPORATE VENTURE BACKING
Baidu Google Ventures
ComcastCoca-Cola Horizon
Salesforce in-q-tel Samsung Ventures
Visa Starbucks
Singtel Innov8Intel Capital Red Hat Salesforce Ventures Emc in-q-tel
Rakuten
2014
Source: CB Insights
US COMPANIES HOLDING MORE CASH THAN EVER BEFORE - $1.6T AT END OF 2013
Led to surge of CVCs as companies looked
for more innovative R&D solutions
GOOGLE VENTURES WAS
THE WORLD’S MOST
ACTIVE CORPORATE VC,
INVESTING $2.8 BILLION
INTO 122 COMPANIES
TECH COMPANIES THAT
SEE RAPID CHANGE IN
THEIR LANDSCAPES
APPRECIATE CV FUNDS
25 OF THE 30 FIRMS THAT COMPRISE THE DOW JONES INDUSTRIAL AVERAGE HAVE
A CVC UNIT
PAST FOUR YEARS MORE THAN 475 CORPORATE VENTURE FUNDS HAVE
STARTED, NOW 1,100 FUNDS, MORE THAN DOUBLE NUMBER IN 2009
HALF OF TOP 100 US FIRMS HAVE CVC AND 25% OF FORTUNE 500
25/30
1100
50+/100
DISRUPTIVE INNOVATION IS THE SINGLE BIGGEST WORRY FOR FIRMS
RESEARCH & DEVELOPMENT
ACQUISITON TARGETS
INFLUENCE INDUSTRY’S ECOSYSTEM
CVC yield 3 times # patents per $ invested
than in-house R&D
1/3 of CVC-backed startups acquired versus 1/10 from private VC only
Identifying new markets and building up their existing businesses
ADVANTAGE OF INVOLVEMENT WITH STARTUPS AT THE EARLY STAGES, WHEN THEY CAN MOST BENEFIT FROM ACCESS TO A LARGE, ESTABLISHED CUSTOMER BASE, CREDIBILITY THROUGH BRAND ASSOCIATION AND A LARGER NETWORK OF PARTNER COMPANIES AND ADVISORS.
INSIGHTS INTO NEW MARKETS & TECHNOLOGY
NEXT GEN PRODUCTS & SERVICES
DOMAIN EXPERTISE
NEW BUSINESS MODELS FOR THE FUTURE
COST SAVINGS
TECH STARTUPS ARE INDUSTRY GAME CHANGERS
APPETITE FOR CORPORATE VENTURE IS GROWING
CVC CAN IDENTIFY DISTRUPTIVE INNOVATION EARLY
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TAKEAWAYS
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Venture Forth The Rise of Corporate Venture Capital
Alfred Lo Lead Principal [email protected] / @apglo