Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Upcoming SlideShare
Why Venture Capitalists invest in the app economy T-Ventures Deutsche Telekom
Next
Download to read offline and view in fullscreen.

Share

State of Corporate Venturing - A VC perspective on Markets and Outlook

Download to read offline

The markets have changed, unicorns are becoming an obstical to have in your portfolio and comporations are pushed to be active in investing and partnering. 5 take aways on how to survive and generate value as a corporate VC in 2016.

Related Books

Free with a 30 day trial from Scribd

See all

State of Corporate Venturing - A VC perspective on Markets and Outlook

  1. 1. State of Corporate Venturing Thomas Grota, Investment Director at Deutsche Telekom AG
  2. 2. While CVC deal number increases... • General Motors, under pressure from Ford, Google, Apple, Uber and just about every other big company doing something car-related, made a $500 million investment in Lyft this week. The deal includes a partnership that will focus on developing a car-hailing service using autonomous driving technology. • Pharmaceutical giant Roche led a $175 million in Flatiron Health, the biotech startup that sells software related to cancer treatment. Allen & Company, Baillie Gifford and Casdin Capital also kicked in for this latest round; previous investors include Google Ventures and First Round Capital • UPS led a $28 million funding round for the same-day delivery startup Deliv. Other investors included Upfront Ventures, RPM Ventures, General Growth Properties and Simon Property Group (Wall Street Journal). • Struggling $10 billion grocery chain Whole Foods is leading an unknown sized investment in the $2 billion grocery delivery startup Instacart, and the two are inking an exclusive five-year delivery partnership.
  3. 3. ... there is Winter in Silicon Valley
  4. 4. 4 Venture Capital is a tough and risky Business.
  5. 5. 55% of US investments are written off 0 5 10 15 20 25 30 35 40 45 50 x<0.5 0.5<x<1 x=1 1<x<2 2<x<5 x>5 % Cost % Value
  6. 6. 62% of EU investments are written off 0 10 20 30 40 50 60 x<0.5 0.5<x<1 x=1 1<x<2 2<x<5 x>5 % Cost % Value
  7. 7. Entrepreneurs need less capital to start … Thanks to cloud, viral marketing via social & easy payment. 4.000.000 € 400.000 € 40.000 € 4.000 € 1995 2005 2010 2014 CostneededtostartanITcompany Technology Drivers Open Source Cloud + AWS Developers Start Companies 99% cost reduction
  8. 8. 0,2 0,4 0,8 4,3 18 Cisco Amazon Microsoft LinkedIn Twitter facebook Alibaba Private investor capture gains today Previous Tech Cycle Current market cap: $133B+ $261B+ $405B+ $15B+ $13B+ $307B+ $163B+ New Tech Cycle Market Capitalization at IPO ($B) vs. current *) Data from Q1 2016. 104 150
  9. 9. Companies see the Pre-IPO Dip Valuation Time Financing rounds IPO (same for trade sales) indicative fb: $304bn box: $1.39bn sq: $3.37bn +214% -28% -42%
  10. 10. Negative Outlook creates Impact
  11. 11. medium.com/@thomasgr > www.medium.com/@thomasgr
  12. 12. 14 So the Markets have changed – and so did VCs.
  13. 13. Late stage financing produces lofty valuations Seed Stage Early Stage Later Stage Larger Later stage rounds after validation More seed rounds as costs decline & sources of capital increase Traditional VC Today’s VC ValuationBetter equity position for early stage investors and founders competitive areas (Big funds needed) … When a concept works the competition is fierce.
  14. 14. Private Investors have different Goals 500 Startups, Y Combinator Seedcamp, Startupbootcamp @500: ca. 900 invests, 50 exits, 3 unicorns @seedc: 240 invests, 12 exits, 0 unicorns Accel, Index, Bessemer, KPCB, Sequoia, A16Z, Fidelity, Highland, Kinevik, Global Founders, RI IPOs, Unicorns, 1000+ investments Salesforce, Intel, Samsung, SAP, Google Ventures “The good, the bad, the ugly…” Alphabet Capital, facebook, SoftBank, Elan Musk, ... “Big Bets on Moonshots” Seed Stage Late stage 1x 8x 2x na
  15. 15. Where business runs Everywhere on… Telco's life in a complex World Fast Secure ubiquitous Networks
  16. 16. Telco’s Chance to benefit Partnering & Venturing Contents & Advertising Social Networks Security Platforms Connected Computing Opportunities of Venturing Opportunities of Partnering IoT & 5G Cyber / Privacy Big Data Messaging
  17. 17. The way for Corporate Investors • More corporations need to invest & partner • Many bets on small ideas is good Marketing • Big bets on “close to core” businesses need focus • CVC funds are nice to have - but less efficient • Investments from balance sheet is the way to go
  18. 18. Like Startups – VCs are risking to burn $$$ of LPs… … but in CVC the Corporation will feel the impact! Thomas Grota Twitter @thomasgr
  • ukaszMrowiski

    Nov. 1, 2018
  • smoblast

    Mar. 11, 2016

The markets have changed, unicorns are becoming an obstical to have in your portfolio and comporations are pushed to be active in investing and partnering. 5 take aways on how to survive and generate value as a corporate VC in 2016.

Views

Total views

1,374

On Slideshare

0

From embeds

0

Number of embeds

54

Actions

Downloads

33

Shares

0

Comments

0

Likes

2

×