future of venture capital 2016 - pwc presentation

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