Post on 20-May-2015
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Intel Capital Investing in Global
Innovation
Investing in Tech Startups in CEE
Igor Taber Investment Director
Intel Capital Russia CIS
11 Oct 2013
Global Investment Footprint
$10.8 billion+ in 1276 Companies across 54 Countries
Intel Offices and Intel Capital
Invested
Intel Capital Invested
$500m China Technology Fund II
$250m India Technology Fund
$50m Brazil Technology Fund
$50m Middle East and Turkey Fund
Intel Capital is a stage agnostic, long term, active TMT investor
Intel Capital Facts in CEE/Russia(CIS)
Number of
Investments:
Last Two Years:
First Investment: Exits:
28/13
9 deals
1999/2002 14/4
50% of capital
Capital Deployed:
Intel Capital is one of the largest and most
active VC investors in CEE
Investing in CEE
WRONG RIGHT
CONSENSUS
NO CONSENSUS
?
√
Key Things to Consider
• Deal Flow
• Cash
• Board
• Add Value
• Management
• Local vs Global
Deal Flow
• Quality/proprietary deal flow is the KEY
• Few companies everyone knows –
• Expensive
• Hype vs Reality
• A lots of capital
• Many companies no one knows
• Usually bootstrapped and profitable and founder managed
• Hard to effectively communicate with investors/pitch
• Governance is a challenge
• Seed vs Series A – no clear line
• Local presence is essential
Cash availability
• Growth comes with cash availability
• Follow-on cash is hard”ER” to get
• Only 8 growth/expansion deals in Q2
• Ensure longer runways vs optimizing for
dilution
• Lack of cash will lead investors to unnatural
decision making
• Co-invest with parties that are able to
continue funding the business plan
Active Board Participation • Take board seats; drive for balanced
board/decision making
• Boards in CEE often lack
• Strategic vision
• Financial acumen
• Founders often lack effective board experience
• Don’t try to run the business
• Independents
• Mixed bag
• Window Dressing vs Value Add
• No to “professional board members”
• Yes to Operators who can add value to the CEO
Value Add • Know when to Lean in/Lean back
• Introductions
• Ex: Intel Technology Days; Intel Global
Summit; other port-cos
• Future rounds/Exits
• Exit opportunities are limited (for now). #1
player in the segment will generate premium
• Just like “tomatos”
• Brand name investors are key
9
Management/Founders
• Evaluate/benchmark vis-à-vis local market and not
the world (unless competing globally)
• Exit alignment
• Serious shortage of management talent –
• don’t assume you can easily replace founder CEO
post investment – VERY hard to do
• If you don’t think current management can run the
company for next 3 years – don’t invest
• However, make tough decisions sooner rather
then later
1
0
Think Globally, Act Locally!
• Only consider GO Global (US), when:
• You are in enterprise/ B2B segment or you reached
$50M in revenue in B2C and you are not in Consumer
Internet
• You are able to attract talent in US that
• PERFECT cultural fit between him/her and local team.
• Preferably as VP of Sales and Marketing (not a CEO)
• Ideally founders (including technical) are able to move
• No language barriers with local team
• Clearly differentiated/disruptive solution (cost base
is not a differentiator)
• Otherwise – focus, focus, focus! 1
1
About Intel Capital
Consistent Investor
2012
IPOS 7
Acquired 28
Deals
Historical
1,276
B $10.8
Countries
54
37
IPOS 201
Acquired 317 % Dollars
Outside N. America
New Deals
Outside N.America 32
57 % Dollars
Outside N. America
* Number Includes New and Follow-on Deals Data as of Dec. 30, 2012
$352 M
*Other marks and brands are property of their respective owners
2012 Exits
35 portfolio companies exited in 2012: 28 via M&A & 7 via IPOs
Supporting the portfolio
• Work with the Intel business units to get on stage demos for:
• Intel events such as IDF (Intel Developer Forum)
• External events with Intel presence: such as CES (Las Vegas),
Computex (Taipei), MWC (Barcelona), E3 (Electronic Entertainment
Expo, LA), CEBIT
• Various chairs of working groups
• Invite to Intel Capital events such as:
• Silicon Valley VC events
• Consumer Board of Advisor meeting
• Enterprise Board of Advisor meeting
• Intel Capital Global Summit
• Intel and Intel Capital Public Relations support
Supporting the portfolio - at a glance 4000 pieces of coverage for recent Global Summit
Unleashing the Power of Partnership
Regular, targeted meetings between Intel Capital portfolio companies
and the right decision makers drawn from Intel’s relationships with
suppliers, partners and customers
• 3500+ engagements between portfolio companies & customers in 2012
• 1800+ Intel Capital Global Summit Connect meetings
• 76 Intel Capital Technology Days resulting in 1700+ introductions
*Other marks and brands are property of their respective owners
Intel Capital Technology Days
Connect with the right decision makers at the right companies
And an additional 100+
Global 2000 Brands…