1 The State of Corporate Venture Capital Investment Powered by: February 2013 © 2011 Dow Jones & Company, Inc. All rights reserved.
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2 Global Corporate VC Investment Declined in 2012 732
$12
$10
630
$10.9
800
725
$12.6
652
600
559
$9.9
$9.7
$8
500
400
$7.4
$6
700
300
$4
Number of Deals Amount Invested ($B) $14
200
$2
100
$0
0
2008
2009
2010
2011
2012
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Source: Dow Jones VentureSource
*Global refers to Canada, China, Europe, India, Israel & U.S.
3 13% of Global 2012 Deals Had Corporate ParHcipaHon 120
100%
8%
202
1,074
15%
12%
85%
88%
China
Europe
205
92
6%
3,363
5,056
13%
13%
87%
87%
United
States
Overall
28%
80%
60%
40%
92%
94%
72%
20%
0%
Canada
India
Israel
% of Deals without Corporate Participation
% of Deals with Corporate Participation
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© 2013 Dow Jones & Company, Inc. All rights reserved.
Source: Dow Jones VentureSource
Overall # of
equity deals
into VCbacked
companies
IT Sector & Companies GeneraHng Revenue Had Most Corporate VC Investment in 2012 Corporate Participation by Industry Group
Corporate Participation by Development Stage
Business & Financial Services
15%
Consumer Services
19%
Healthcare
21%
Energy & Utilities
4%
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Source: Dow Jones VentureSource
Startup
2%
Product Devt.
23%
Consumer Goods
1%
Information Technology
37%
Industrial Goods & Materials
3%
Profitable
3%
Generating Revenue
72%
4 5 US Corporate ParHcipaHon Slides % VC Rounds with At Least 1 Corporate Investor by Company HQ and Close Year % VC Rounds w/Corp Co-­‐Investors 35% 30% 25% 20% 15% 10% 5% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US © 2011 Dow Jones & Company, Inc. All rights reserved.
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EU Israel China India Foreign Corps Co-­‐Invest Most Frequently in China & India 6 % of VC Deals with At Least 1 Foreign Corp Co-­‐Investor US 100% 80% 80% 60% 60% 40% 40% 20% 27% 24% 0% 2006 2007 2008 2009 2010 2011 2012 China 100% 48% 20% 2006 2007 80% 60% 60% 57% 20% 0% 2008 2009 2010 2011 2012 India 100% 84% 43% 0% 80% 40% Europe 100% 100% 40% 20% 0% 2006 2007 2008 2009 © 2011 Dow Jones & Company, Inc. All rights reserved.
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2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 7 Most AcHve Corporate Co-­‐Investors in 2011-­‐2012 Google Ventures (39) Intel Capital (39) Comcast Ventures (12) US
T-­‐Venture Holding Gmbh (7) SAP Ventures (12) Qualcomm Ventures (12) Intel Capital (10) India
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Europe
China
Qualcomm Ventures (2) Intel Capital (9) Innovacom (7) Intel Capital (11) Tencent Holdings (9) Qualcomm Ventures (7) 8 Corp-­‐Backed Companies Garner Higher Pre-­‐ValuaHons $400 $380 $350 $301 $309 $300 $255 $250 $260 $200 $150 $100 $112 Non-­‐corp parRcipaRon © 2011 Dow Jones & Company, Inc. All rights reserved.
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Corp ParRcipaRon Overall 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 $0 1999 $50 1998 Median Pre-­‐Money ValuaHon Prior to IPO ($USD M) Median Pre-­‐ValuaFon at IPO of Venture-­‐Backed Companies (Converted $USD) 9 Global IPO Time to Exit (Y) Years From IniFal Financing to IPO for Venture-­‐Backed Companies (Converted $USD) 14 12.1 10 8 6 4 4.3 3.1 3.6 Non-­‐corp parRcipaRon © 2011 Dow Jones & Company, Inc. All rights reserved.
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Corp ParRcipaRon Overall 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 0 1998 2.6 2 2.3 2012 Years To IPO 12 10 Majority of Failures Lack Corporate Backing % IPO/M&A Venture-­‐Backed Exits w/Corp Backing and % Venture-­‐Backed Companies that Ceased Ops w/o Corp Fin 100% 90% 80% % Exits 70% 60% 50% 40% 30% 20% 10% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 IPO & Acq w/Corp © 2011 Dow Jones & Company, Inc. All rights reserved.
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Gone Co w/o Corp Fin 11 Top 2012 Deals with Corporate ParHcipaHon Company Name
Country
Industry Segment
Industry Group
Total Deal
Amount ($M)
Corporate Investor(s)
GreatPoint Energy Inc.
United States
Non-­‐Renewable Energy
Energy & Utilities
$420
China Wanxiang Holdings
Woodman Labs Inc.
United States
Electronics & Computer Hardware
Information Technology
$200
Foxconn
LifeLock Inc.
United States
Business Support Services
Business & Financial Services
$186
Symantec Corp.**
Evernote Corp.
United States
Software
Information Technology
$155
DOCOMO Capital Inc.**
Box Inc.
United States
Business Support Services
Business & Financial Services
$125
Intel Capital, SAP Ventures**
Lianlian Pay Inc.
China
Business & Financial Institutions & Services
Financial Services
$125
American Express Co.
** Other investors also parRcipated in financing © 2011 Dow Jones & Company, Inc. All rights reserved.
© 2013 Dow Jones & Company, Inc. All rights reserved.
Source: Dow Jones VentureSource
12 Google Ventures Most AcHve in 2012 Investor Name
Number of Global VC Deals
Google Ventures
70
Intel Capital
48
Qualcomm Ventures
26
T-­‐Venture Holding GmbH
13
Kaiser Permanente Ventures
12
Novartis Venture Fund
12
Bertelsmann Digital Media Investments
11
Comcast Ventures
11
HV Holtzbrinck Ventures Adviser GmbH
11
O'Reilly AlphaTech Ventures LLC
10
S.R. One Ltd.
10
© 2011 Dow Jones & Company, Inc. All rights reserved.
© 2013 Dow Jones & Company, Inc. All rights reserved.
Source: Dow Jones VentureSource
*Global refers to Canada, China, Europe, India, Israel & U.S.
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