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Asia and The Pacific Incubator Conference (AAPIC)

Internationalization for high-growth business incubators

- an IndiaCo experience

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About IndiaCo – Overview– IndiaCo Journey– Operations– Strategy– Opportunity Focus– Business OverviewInternationalization for high-growth business incubators - an IndiaCo experience

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A Private Equity & financial services company listed on the Bombay stock

exchange that provides capital (investment), direction and operational

expertise in distinct asset classes for select identified industry verticals.

IndiaCo Ventures Limited (IVL)

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Past track record

IndiaCo has been recognized by various multilateral agencies and is supported by InfoDev (a World Bank initiative)established ability to provide investors successful exits; extensive investment experience in listed companies (India/US) and unlisted pre-IPO companies– Provided returns of over 200% on invested capital and for funds advised

by IndiaCo– Has assisted stake holders in unlocking shareholder value market

capitalisation increase of an average of over 200%Worked extensively with small, medium and large enterprises globally ;comprehensive knowledge of corporate venturing and technology transfer, successfully partnering with leading universities and R&D houses globally for Collaborative R&D, Licensing, Joint Venture and Commercialisation programs.Has effectively demonstrated the ability to work “Hands on” with enterprises – “product enhancement”, corporate planning and strategic decision making”

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2001

2005

2004

20032002

2006

Advisory and Incubator

Advisory ,investment through proprietary capital

Advisory (investment and technology) ,fund manager

• Listed enterprise• Advisory – Corporate and Financial• IndiaCo proprietary funds • Leveraged funds• Co-Investment opportunities• Mergers and acquisitions

IndiaCo Journey

2007

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OperationsIndiaCo was founded by a team of professionals with investment ,corporate finance, investment banking, venture funding and private equity experience; IndiaCo restructured its operations so as to augment all its activities under one singular entity. IndiaCo is currently run under 3 main groups, each of these groups are created to align and augment all of IndiaCo’s past experience, knowledge and credentials. IndiaCo collectively have more than 100 years of venture capital/Private equity and operational experience.

The IndiaCo team always works side-by-side with the management of our companies to determine how to take advantage of quickly changing market opportunities and overcome the many challenges that confront today’s enterprises. We have several investment professionals, so as to provide our management teams the focused attention and value-add required to build market-leading enterprises.This approach ensures that each company has a knowledgeable set of resources to leverage while building and growing the business.

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Business StrategyInvestment Group Advisory Group Venturing Group

• Provides strategic capital, direction and operational expertise

• Provide advisory services to private equity funds, Financial Restructuring to enterprises Advise on Mergers and Acquisition strategies Strategic advisory to enterprises to enhance growth

• Utilizing our knowledge of creation of successful companies and models technology transfer; Acquisition strategies Strategic advisory to enterprises to enhance growth and enable creation of new business.

• Combines incubation and technology transfer mechanisms

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Business Overview

IndiaCo Ventures Limited

Advised funds

Investment Group

Investment Sectors

Investment Advisory

Information Technology

Portfolio/Investments

Telecom Manufacturing and Allied

Energy and Chemicals

Portfolio/InvestmentsPortfolio/InvestmentsPortfolio/Investments

Venturing Group Advisory Group

Proprietary Funds

IndiaCo Ventures Limited provides support and co-investment opportunities to the fund advisor

Corporate Advisory

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Board of Directors

Rahul Patwardhan -Vice Chairman and Managing Director

Rahul has over 10 years of experience in the venture capital, general management and product management. Rahul founded IndiaCo in 2001, manages investor relations and fund raising, and also heads the investment committee that oversees investment and deployment of funds at IVL. Rahul has extensive international experience with companies in business planning and strategy, and has held positions in operations management, finance & investment analysis. Rahul holds a Masters in Business Management and a Mechanical Engineering degree from Pune University.

Dhananjay Bendre – Executive Director & COO

Dhananjay joins IndiaCo with over 19 years experience in various roles and various organizations, and has experience developing product strategies and services internationally; Dhananjay has built and developed the following verticals in past; Finance, Banking, Construction, Government, FMCG, IT, Pharmaceutical, for Medium scale organizations/large corporations, across the globe. Dhananjay has to his credit several awards & recognitions and his articles keep on appearing in leading international magazines. Dhananjay joins IndiaCo build & scale IndiaCo to global Financial House. Dhananjay completed his Bachelors in Science and Masters in Business Administration (Marketing).

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Board of DirectorsPrithipal Singh – Independent Director

Prithipal Singh was former Chairman & Managing Director of BSNL. He was a nominee of Padmashree Award 2003 and he has an extensive international experience, having worked in 40 Countries. He is & has been on the Board of many reputed organizations like InfoDynamic Telesystems Private Limited, Punjab Venture Capital Limited, Punjab Information & Communication Technology Corporation Limited, AMITY Institute of Telecom Technology and Management, Punjab Engineering College etc.

Radhika C Pereira - Independent Director

A Law graduate from the University of Bombay and a Post-graduate from the University of Cambridge as well as the University of Harvard, she has worked with several leading industry associations such as Mulla & Mulla, Arthur Anderson, Craig Blunt & Caroe. Radhika has worked on a wide range of areas of project finance practice for infrastructure projects and development, intellectual property right related issues and transactions relating to entertainment, information technology and pharmaceutical industry, property laws and real estate transactions, alternate dispute mechanism strategy, legal risk management and contractual documentation. Radhika was a part of the core group committee established by the Government of Maharashtra to make recommendations to the State Government on legal issues relating to privatization. Radhika is a Fellow of the Cambridge Commonwealth Society and Member Scholar of the Pegasus Commonwealth Trust.

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Board of DirectorsSasha Mirchandani - DirectorSasha mentors and executes the overall vision of making Imercius amongst one of the leading BPO companies. He founded Cocoon Ventures - a venture capital company headquartered in Mumbai, India. He also sits on the board of Fractal Technologies and Gulita Securities. He is currently on the Board of The Young Entrepreneurs’ Organization (YEO), Mumbai chapter. YEO is a global organization headquartered in Alexandria, VA with over 5000 members worldwide. Sasha firmly believes that individuals are capable of doing extraordinary tasks and hence takes a personal interest in developing teams and leaders. His involvement with each and every function at Imercius proves to be an invaluable mentor to concrete the building blocks of an organization.

Ruben Abrahm - DirectorReuben is with Cornell University's Center for Sustainable Global Enterprise at the Johnson School of Management and a visiting faculty at the Indian School of Business (ISB) in Hyderabad. He is the Director of the Base of the Pyramid Learning Lab in India, a joint venture between ISB and Cornell. He serves on the global board of directors of George Soros' Economic Development Fund (SEDF), a $145 million fund which aims to catalyze growth in emerging markets. Under the aegis of SEDF, he is setting up a unique India-focused SME seed fund. He was also a TED Global Fellow for 2007 and and a member of the Clinton Global Initiative. He founded and runs the International Private Enterprise Group (IPEG), a New York based network of professionals, which promotes the role of the private sector, capital markets and technology in catalyzing economic development in emerging markets. Before Cornell, he finished his Ph.D. from Columbia University. During his time at Columbia, he was an Associate Fellow in Global Economics at the Council on Foreign Relations and also a Fellow at the Public Policy Consortium. He was a Sloan Foundation/CITI Telecommunications Fellow in 2000. Earlier, he was a co-founder of the RISC (Rural Infrastructure and Services Commons) project. RISC aimed to correct rural market inefficiencies by providing a shared infrastructure platform for user services in a commercially sustainable way by aggregating rural demand and coordinating infrastructure services. During the past eight years, he has worked at three Columbia University research centers, including the Earth Institute, the Columbia Institute of Tele-Information (CITI), a telecom think tank at the Business School, and the Interactive Design Lab. In addition, he also did a consulting stint at the World Bank, where he evaluated the economic impact of telecom on countries in sub-Saharan Africa, the Mercosur region, India, and China. Ruben was involved in the media/telecom business, with two start-ups including Just Another Magazine (J.A.M), one of India's most successful youth magazines. Reuben is also one of the earliest bloggers out of India, with two award winning blogs, Zoo Station (personal blog) and the Indian Economy Blog (a group blog).

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Board of AdvisorsV Chandrasekar

Prof. V Chandrasekar is the Executive Director of the Wadhwani Centre for Entrepreneurship Development at the Indian School of Business. He is responsible for establishing international quality research, partnerships with industry, attracting funding for research, grooming entrepreneurs, and expanding the scope of the Centre. Prof. Chandrasekar has taught in institutions such as IIM-B, IISc, University of Colorado, University of Denver, and ESSEC Business School at Cergy, France. Professor Chandrasekar completed his Masters in Economics from Madras Christian College and received his doctorate degree from the University of Denver, USA where his thesis was in the area of Innovations and Organizational change.

N L Bhatia

N. L. Bhatia is one of the senior most Company Secretaries in practice since 1982. He has experience of over 30 years, he has expertise in all facets of Company Law and Capital Market regulations and advises IndiaCo on matters related to incorporating of Companies, issue of securities through prospectus, Joint Venture Agreements, Stock Exchange and Securities and Exchange Board of India compliances.

Vadim Kotelnikov

Vadim has vast experience in providing consultancy & training services all over the globe. He is the President of Global Incubator of Venture & Innovation Strategies, USA, is the CEO of Ten3 East-West, Russia and also the Principal of Ten3 NZ Ltd. New Zealand and Ten3 Consulting, Germany. He is the Director General & Board Member of Congress Prominvest, Russia. Since 2006, he is an adviser to International Centre for Scientific and Technological Information. He also has rendered his consultancy and advisory services to UNDP Asia-Pacific Development Information Programme and UNESCAP Asian and Pacific Centre for Transfer of Technology, New Delhi. Vadim has a masters degree in Cybernetics and is a PhD in Economics.

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Internationalization for high-growth business incubators

- an IndiaCo experience

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Contents

Why internationalize?– Mission objectives– Traditionally?Challenges and main difficulties with Internationalization strategies for incubators "Internationalization" strategies– The IndiaCo difference

–”element 6”Returns and benefits

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Why internationalize?

The Traditional role is primarily to accelerate the growth and development of high growth start up companiesThe traditional model of business incubators a group of start up companies with a high growth potential; Located in a common physical space sharing mentorship from the host of the incubator and its administrative services.The host of the incubator usually a university or government entity or private incubators Provides technical and marketing assistance and funding / or assistance in procuring funds to the firms till they become strong enough to operate on their own.

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Mission objectives

Providing companies/clients with a strategic combination of targeted resources and services.These services are designed and developed for the client or orchestrated by the incubator’s managementCompanies/clients in turn should have the ability to create jobs, revitalize neighborhoods, commercialize new technologies etc. all of which in turn should result in the strengthening of local and national economies.

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Problems Faced by Incubators- an IndiaCo observation

Lack of innovative high growth start ups / projects Government policies sometimes hazy and do not offer much flexibility. Unavailability of Capital – The lack of funds for investment ,“Seed Stage investment” leading to dying of strong ideasLow regulatory compliances investors are shy of investing in ventures There is a paucity of basic operating infrastructure (most incubators sill “survive” on rental income)Lack of structured approach to the process of technology commercialization and investmentInsufficient understanding of IP protection and patenting laws Self Sustenance is almost always an issue

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Traditionally?If working and helping companies is the main mission of any incubator then, it is necessary for an incubation to be as international as possibleMergers, acquisitions with other clients of incubators globally, market strategies, technology, team, or fundingIn order for incubators to be able to go international the incubators has to have the necessary skills, the right team and the ability to look beyond

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"Internationalization" strategiesCritical Mass of High Growth Companies– Companies not available locally ? – Can the incubator go virtual, and go beyond selling space but rather sell

“expertise”?– Required – an excellent management team to support and mentor

companies Availability of personnel, Technologies – Can the company setup manufacturing in china?– Can our company merge with this other company and create scale?– Can we license technology from Russia for one of our clients?

Monitoring and structured mentoring– Can the incubator have the ability to lay down deliverables from the incubator

and from the client companies– Can the incubator monitor and provide support to multiple clients in

different parts of the globe?Risk and return– Can the incubator invest capital and put money down to show commitment?

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The IndiaCo difference –”element 6”

Go beyond geographic boundariesManagement Team – GlobalM/A strategies, corporate advisory, financial advisory and technology advisoryMile stone based delivery from the incubator and the clients through “Knowledge, milestone and systems program”Tools and resources to assist the clients and IndiaCo’s management team to monitor and structure the “right”adviseStructured investment program, with the ability to leverage other funding sourcesIndiaCo has and will continue to “self sustain” ;a “Financially viable entity” as self a sustaining revenue generating entity that can self perpetuate.

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IC “One World” - exampleIndiaCo Global Incubation initiative

IndiaCo Global Incubation program

Partners

IndiaCo

Enterprise value creation Program

IC - Knowledge, Milestones and Systems

- Enterprise building- Providing long term sustenance- Job creation- Improving Competitiveness - Economic development - Learning

Software + HardwareData baseSoftware tools

MilestonesRoadmapApprovals

MonitoringBudgetingProgress reviewFeed back system

HandholdingBusiness - AnalysisBusiness - MentoringBusiness-Implementation

Investment in Enterprises

Fees/Services

IndiaCo Tools Databases

TemplatesWorking Documents

Enterprise

Other Private equity players

InfoDev funded Incubators

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Risk and return

Increased interaction between the client companiesServices revenues beyond “rent”Ability to provide M/A, corporate advice and financial advisoryWill generate new investment opportunitiesEventually make the incubator self sustaining and a profitable entity

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Contact

IndiaCo Ventures LimitedIndiaCo Center, 4th Floor, Symphony ,Shivaji Nagar, Pune 411007Email: rahul@indiaco.com

www.indiaco.com

All logos and trade marks belong to the respective companies,IndiaCo or IndiaCo subsidiaries claim no ownership or rights.Logos and representation have no bearing on the relationship and transaction

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“IndiaCo” and “Accelerating Innovation” are registered trade marks of IndiaCo, any use of these without written consent of IndiaCo Ventures Limited will be liable for legal action

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