VC & CVC Stream: The Missing Piece
Michael Dimelow
VP Business Development, ARM
ARM Introduction
• Global leader in the development of semiconductor IP - R&D outsourcing
• Innovative business model yields high margins - license, royalties, technology reuse
• Long-term, secular growth markets
Approximately 1000 licenses
Growing by ~100 every year
Over 330 potential
royalty payers
8.7bn ARM-based chips in ‘12
~25% CAGR over last 5 years
Volume
How many ARM’s Do You Have?
Opportunity
$1-2
$3-6
$10-15
Average Selling Price of a Semiconductor Chip
>$25
Strategic Investor: Semi & Software
Investment Goals:
1.
2.
3.
4.
Direct involvement in ecosystem
Window to technology
Long-term group revenue
Financial return
Investment strategies:
1.
2.
3.
4.
Actively expand ARM ecosystem
Seed markets with ARM Technology
Explore new business models
Appropriate return
Example – Calxeda Inc
Company Overview:
• Developing server chips based on ARM technology
• Fabless semiconductor company
ARM Ownership:
• Undisclosed
Strategic Rationale for Investment:
• Establish presence in low power server chips
Recent Events:
• Significant customer traction for ultra low power compute
• Closed $55 Million Funding Round Q4’2012
Engagements
Working with Financials
•
Actively seek co-investors that:
– Keep the company focused on the day job
– Have a history of building businesses
– Healthy debate with strategic’s for the benefit of the company
•
Visibility of complementary deal flow
– Jointly qualify business model and technology fields
– Identify portfolio collaboration opportunities
•
ARM is an active investor
– Where an investment continues to serve a strategic purpose
Thank you
Contacts:
michael.dimelow@arm.com or +44 77 1000 5575
adam.bastin@arm.com or +44 79 8030 2218