future of venture capital 2016 - pwc presentation
TRANSCRIPT
What would you like to grow?
whatwouldyouliketogrow.com.au
The Future of Venture Capital
February 2016
Corporate Venturing & the Digital Ecomony
The PwC perspective
12
Steve MaarbaniPartner, Venture Capital & Private Equity PwC
@SteveMaarbani
whatwouldyouliketogrow.com.au
What would you like to grow?
Fund establishment
@SteveMaarbani
whatwouldyouliketogrow.com.au
What would you like to grow?
“When the rate of change on the outside exceeds the rate of change on the inside, the end is near.”Jack Welsh Chairman & CEO of General Electric (1995)
@SteveMaarbani
whatwouldyouliketogrow.com.au
What would you like to grow?
Global CVC growth●Number of CVCs globally has doubled since 2010●Number of deals increased 55% since 2012●Funding volumes have nearly doubled since 2012●Syndicate participation has increased – 1 in 5 VC
deals involved a CVC●Asian CVC has nearly trebled since 2012
Source: CB Insights
whatwouldyouliketogrow.com.au
What would you like to grow?
Australian CVC activity
+
+
@SteveMaarbani
Accelerating growthK
ey m
ilest
ones § Test assumptions
§ Develop proof of concept
§ Develop launch product or service
§ Business development strategy
§ Customer acquisition
§ Business processes § Legal & compliance§ Recruit key team members§ Scale up customer
acquisition
$500
k+
Accelerators / Friends & Family
SEED STAGEIdeation
From idea to product
EXPANSION STAGECommercialisation
Customer acquisition & scale
STARTUP STAGEIncubation
Technical & consumer validation
$100
k-$5
00k
<$10
0k
Fund
ing
rang
e
Angels / EBCF / Micro-VCs
Venture Capital
CV
C • Brand & credibility• Customers & distribution
• Infrastructure & resources• Sector IP & know-how
• Network & relationships
Key
mile
ston
es § Test assumptions§ Develop proof of
concept
$500
k+
Accelerators / Friends & Family
SEED STAGEIdeation
From idea to product
EXPANSION STAGECommercialisation
Customer acquisition & scale
STARTUP STAGEIncubation
Technical & consumer validation
$100
k-$5
00k
<$10
0k
Fund
ing
rang
e
Angels / EBCF / Micro-VCs
Venture Capital
CV
C • Brand & credibility• Customers & distribution
• Infrastructure & resources• Sector IP & know-how
• Network & relationships
Corporate Venture Capital
§ Develop launch product or service
§ Business development strategy
§ Customer acquisition
§ Business processes § Legal & compliance§ Recruit key team members§ Scale up customer
acquisition
Accelerating growth
whatwouldyouliketogrow.com.au
What would you like to grow?
Unicorns backed by CVCs
@SteveMaarbani
whatwouldyouliketogrow.com.au
What would you like to grow?
CIV strategy framework
4.Synergy
Realisation
1. Define
Objectives
2. Pipeline
Development
3.Engagement
Methods
@SteveMaarbani
Define & document core objectives:
• Branding & marketing• Attract & retain talent• Accelerate internal
innovation• Future-proofing
Develop opportunity pipeline:
• Increasing number of startups
• Exposure to best of breed technology
• Ecosystem partnerships
Determine engagement methods:
• Investment• Strategic alliance• Joint venture• Customer• Distribution
Post transaction synergy realisation by leveraging:
• Brand & credibility• Customers & distribution• Resources• IP & know-how• Networks
whatwouldyouliketogrow.com.au
What would you like to grow?
“There has never been a more exciting time to be an Australian venture capital fund manager.”(with apologies to Malcolm Turnbull)
@SteveMaarbani
The CVC perspective
212
Todd ForestMD, NAB Ventures
What would you like to grow?
whatwouldyouliketogrow.com.au
The Future of Venture Capital
February 2016
Corporate Venturing & the Digital Economy