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.
State of Corporate Venturing - A VC perspective on Markets and Outlook
1. State of Corporate Venturing
Thomas Grota, Investment Director
at Deutsche Telekom AG
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.
15. 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.
16. 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
17. Where business runs Everywhere on…
Telco's life in a complex World
Fast Secure ubiquitous
Networks
18. 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
19. 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
20. Like Startups – VCs are risking to burn $$$ of LPs…
… but in CVC the Corporation will feel the impact!
Thomas Grota
Twitter @thomasgr