Ecosummit London, October 7/8th, 2014
Strategic investments in industrial efficiency start-ups
Itziar Estevez, Siemens Venture Capital
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Financial Services
Common questions and concerns from start-ups
about strategic investments
• Will an investment from Siemens Venture Capital limit exit opportunities?
Will you have the ability to block an acquisition by a competitor of Siemens?
• Does Siemens Venture Capital make the portfolio companies captive for a
potential acquisition at a later stage?
• How will Siemens competitors perceive an investment from Siemens?
Will we still be able to work with them?
• What special rights does Siemens Venture Capital take as an investor?
Will you try to push the Siemens strategic agenda?
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Strategic investments create tight links between
corporate and start-ups
Type of cooperation
Benefits from venture investments
• Align long-term interests between corporate
and start-ups
Acquisitions
Venture
investments
• Have a ‘skin in the game’ by owning a portion
of the company
Co-development
projects
• Ensure the company is properly financed to
engage in a strategic partnership
• In certain cases, first step towards a potential
acquisition down the road
Partnerships
Our objective is to build strong stand-alone companies
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Siemens Venture Capital aims for different
paths to exit
Example of portfolio companies acquired by:
1
Competitor of Siemens
Products and services for the industrial cyber
security (Canada)
Exit: 2014
Photo-realistic 3D visualization (Germany)
Exit: 2013
2
Company in a different space
than Siemens
Software for automated field service
management (USA)
Exit: 2014
Intelligent Transport Systems (China)
Exit: 2012
3
Siemens
Lighting control systems (USA)
Exit: 2011
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This year, we launched a $100m early stage fund
focused on industrial technologies
‘Industry of the future Fund’
Investment criteria:
• Pioneering start-ups that have the potential to change the landscape of manufacturing and industrial automation
• Pre-revenue, with proof of concept
• Size of investment $500,000 to $1,000,000
Four investments closed in the Industry of the Future Fund:
Software platform for accelerating the
development of cloud-based digital eyewear
applications (USA)
‘Predictive cyber security’ based on bioinspired algorithms (Israel)
Cloud-based high performance photorealistic
3D visualization (Canada / Germany)
Cyber security: next generation end-point
protection (USA)
Siemens’ existing venture capital funds
Investment criteria:
• Emerging technologies with high growth potential in the area of Industry, Energy, Infrastructure & Cities, Healthcare
• Commercially proven products and services, revenues generally above $5,000,000
• Size of investment $1,000,000 to $10,000,000
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We are part of Siemens Financial Services and
cover different asset classes
Siemens Venture Capital business lines & services
Siemens Business
Mandate
Corporate Venture Capital (for Siemens Divisions)
Private Equity Asset Management (for Siemens Pension Trusts)
VC Fund-of-Funds Management (for Siemens Pension Trusts
and institutional investors)
Asset Classes
Venture Capital direct investments (early to expansion stage)
Technology Growth Equity, PIPE
Mezzanine debt, convertible notes
Venture Capital fund investments
Private Equity fund investments
(LBO, turnaround, Growth Equity, secondaries)
Private Equity buy-out co-investments
Offered Service
Full PE/VC life cycle asset management
Investment strategy development, focused market screening, due
diligence, transaction financing, board representation, value
creation, portfolio management and monitoring, exit realization
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Resource efficiency and cleantech is an important
part of our direct investment portfolio
Example of portfolio companies in the cleantech space
Bio-ethanol production from industrial waste
gases (New Zealand) - 2014
Energy and industrial emission control and oil
vapor recovery (China) - 2014
Building automation software
solutions (USA) - 2014
Nanogrid energy storage solution, integrated
with on-premise PV (USA) - 2014
Software suite for energy optimization in
commercial buildings (Australia / USA) - 2013
Dual-axis trackers for ground mounted PV
and CPV installations - 2012
Utility-centric energy service management
solutions (USA) - 2011
Product and corporate sustainability
performance solutions (Germany) - 2010
Charging infrastructure for Electric Vehicles
and Plug-in Hybrids (USA) - 2010
Products and services for diagnosis and
condition monitoring of cables (Norway) 2010
Turnkey systems for power cogeneration,
waste heat recovery, effluent water recycling
(India) - 2009
Intelligent energy management solutions that
provide commercial and industrial end users
(USA) - 2009
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Contact details
Itziar Estevez
Itziar.estevez@siemens.com
http://www.siemens.com/venturecapital
Thank you!
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