GE Corporate Venture Efforts

8/10/2019 GE Corporate Venture Efforts

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GEs Corporate Venture effortsby Marie MOREL, Apolline MORELLE, Alexandre MOUEN MAKOUA, Marc PUISSOCHET

17/11/2014


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TABLE OF CONTENTS

1 GEVENTURES .......................................................................................................................... 1

1.1 Overview.................................................................................................................................. 1

1.2 History of the fund .................................................................................................................. 1

1.3 People ...................................................................................................................................... 2

1.4 A win-win game ....................................................................................................................... 2

1.5 GE Ventures by the numbers .................................................................................................. 3

1.6 Featured investments .............................................................................................................. 3

1.6.1 Stem .............................................................................................................................................. 3

1.6.2 Nanosonics .................................................................................................................................... 3

1.7 The selection process .............................................................................................................. 4

2 JOINT CORPORATE VENTURE CAPITAL............................................................................................ 4

3 OPEN-INNOVATION POLICY .......................................................................................................... 5

3.1 Competitions and challenges .................................................................................................. 5

3.2 OurCrowd ................................................................................................................................ 5

4 SOURCES ................................................................................................................................. 6


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FINANCING OF INNOVATIONTEAM 3 1

Founded in 1892 by Thomas Edison and Charles Coffin in New York as a manufacturer of dynamos and

electric lights, General Electric grew to become a worldwide conglomerate which operates in various

fields such as energy, transportation, infrastructure, finance and oil and gas. Today, GE employs more

than 300,000 people in over 140 countries.

In 2001, Jeffrey Immelt was appointed CEO of GE and he decided to reconnect with the companys

roots: innovation in all spheres. Thus, he changed the corporate signature to GE imagination atworkand started a huge advertising campaign.

Innovation is a critical point for GE. The company is involved in open-innovation programs through

which it agrees to collaborate with several companies providing them the right to use some GE tools

and processes.

GE is doing all of it: Were big in [mergers and acquisition].

Ries came over to do startups. We have licensing groups [to

license out GE inventions]. And then theres the venture

group. Incubations are a great example of how we can behelpful. Karen Kerr, GE Ventures Adv. Manufacturing

1 GEVENTURES1.1 Overview

GE Ventures is a venture capital fund which invests in four main types of businesses in which GE has

capital, technical and commercial expertise. Those businesses are:

software & analytics:data & analytics, XaaS, machine to machine automation, cloud and

security

healthcare:precision medicine, big data & clinical decision support, life sciences, minimally

invasive guidance, patient monitoring & safety

energy:distributed generation, including renewables, smart grid applications, next generation

transportation and infrastructure, oil & gas, thermal technologies

advanced manufacturing:material science, digital fabrication, 3-d printing, additive

manufacturing

1.2 History of the fund

According to Colleen Calhoun, Senior Executive Director, Energy Ventures, GE has been in venture

capital for more than 20 years through its GE Capital business. GE Capital provides loans and leasing

solutions to its customers (usually small or medium enterprises) as well as deep industrial knowledgethat regular banks cannot offer. However, GE Capital does not aim specifically at venture businesses.


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In 2005, Jeff Immelt committed to invest more resources in R&D, launch new solutions that save

money and minimize GEs environmentalfootprint. The commitment was called ecomaginationand

led to technology advances and new partnerships which benefited GE.

Following this successful enterprise, he launched healthymagination in 2009 to improve quality,

access and affordability of healthcareglobally.

In 2012, the company created Access GE, a network of 600 experts within GE who provide non-

financial advice to clients of GE Capital.

Its finally in January 2013 thatGE restructured its health, energy, software and manufacturing venture

investment groups into its GE Venturesunit with a $150M annual fund commitment.

1.3 People

Dennis Cinelli

Chief Financial

Officer

Sue Siegel

Chief Executive

Officer

David Mayhew

Chief Risk Officer

Brett May

Head of Software &

Analytics

Colleen Calhoun

Head of Energy

Rafael Torres

Head of Healthcare

Karen Kerr

Head of Advanced

Manufacturing

1.4 A win-win game

GE Ventures works by investing, incubating, licensing out its own innovations and helping partner

companies to build successful businesses. The selected companies are allowed to use GE intellectual

propertyaccording to GE Open Innovation Manifesto. That gives them access to more than 50 years

of innovations, techniques and patents from GE.

One of the obvious goals for GE in this process is to get good returns on their investment. But GE

Ventures also is an antenna for the corporation in the external world, which allows it to spot promising

ideas and to flag potential disruptions that will help drive better outcomes for their customers and

society.

Our venture opportunity is about bringing both technology

and the startup culture into the organization.

Karen Kerr, GE Ventures Adv. Manufacturing
http://www.geventures.com/teams/member/dennis-cinellihttp://www.geventures.com/teams/member/dennis-cinellihttp://www.geventures.com/teams/member/sue-siegelhttp://www.geventures.com/teams/member/sue-siegelhttp://www.geventures.com/teams/member/david-mayhewhttp://www.geventures.com/teams/member/david-mayhewhttp://www.geventures.com/teams/member/brett-mayhttp://www.geventures.com/teams/member/brett-mayhttp://www.geventures.com/teams/member/colleen-calhounhttp://www.geventures.com/teams/member/colleen-calhounhttp://www.geventures.com/teams/member/rafael-torreshttp://www.geventures.com/teams/member/rafael-torreshttp://www.nist.gov/director/vcat/kerr.cfmhttp://www.nist.gov/director/vcat/kerr.cfmhttp://www.nist.gov/director/vcat/kerr.cfmhttp://www.geventures.com/teams/member/rafael-torreshttp://www.geventures.com/teams/member/colleen-calhounhttp://www.geventures.com/teams/member/brett-mayhttp://www.geventures.com/teams/member/david-mayhewhttp://www.geventures.com/teams/member/sue-siegelhttp://www.geventures.com/teams/member/dennis-cinelli


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1.5 GE Ventures by the numbers

Only in 2013, GE participated in 17 deals, representing $ 535M in funding.

If we have a look at GEs investments since 2010 by sector, we can notice that 60% of its deals have

gone to either healthcare or energy/utilities companies, while only 14% of GEs investments were in

the software space.

1.6 Featured investments

1.6.1 StemStemprovides software-based solutions to reduce the energy consumption of companies and cities.

This company created in 2009 is now among the leaders in advanced energy technology. In October

2014, Stem entered the 2014 Global CleanTech 100which honors the most innovative and promising

ideas in Clean Technologies. The partnership between Stem and GE Ventures seems to be a success!

1.6.2 Nanosonics

Nanosonics develops innovative technology for infection control, with a focus on Hospital Acquired

Infections. GE Capital invested in Nanosonics in 2012 through its healthymagination Fund which has

since then been taken over by GE Venture.

$ 483M

$ 695M

$ 243M

$ 535M

15

23

10

17

2010 2011 2012 2013 YTD

GE Investment Deal and Funding Trend

Investments ($M) Deals

31%

28%

14%

8%

8%4%

3%4%

Sector Breakdown of GE Investments

Energy & Utilities

Healthcare

Software (non-internet)

Industrial

Internet

Computer Hardware &

ServicesElectronics

Other

www.cbinsi hts.com
https://www.cbinsights.com/blog/ge-siemens-venture-capital/https://www.cbinsights.com/blog/ge-siemens-venture-capital/


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1.7 The selection process

In the various interviews they gave, the managing directors of GE Ventures systematically emphasize

two critical dimensions:

i. The pain-point: the Corporate Venture Fund gets feedback from GEs units of which

problems are considered as bleeding-from-the-neck problems and that they hope to getthrough in the next three to five years they also are paint-points in the society, but the

focus is pain-points for GEs business units;

ii. The management team: GE Ventures prioritizes companies that have a management team

with great reputation and that can execute.

As for the pain-point, key areas for GE Ventures are global access to healthcare, distributing power, oil

& gas, big data, robotics and the automation of the house, additive manufacturing.

Were looking for technologies and service solutions that are

focused in the disruption of our key areas and are attracted

to management teams with a great reputation.

Colleen Calhoun, GE Ventures Energy

Inan interview to CleanTech,Colleen Calhoun gave three pieces of advice to technology companies

who approach GE for a partnership:

be specific:GE is a large company with lots of resources, the startup has to be specific about

how they want to partner with GE, what their expectations are and where they see success;

be pushy:GE is attracted to startups because they have the ability to innovate quickly and to

capitalize on things in a different way than GE can, it is crucial that the startup be able to stay

focused and does not let a big company like GE derail them;

be bold:you dont get if you dont ask, the company must not hesitate to ask for what they

need to make the partnership a success.

2

J

OINT

C

ORPORATE

V

ENTURE

C

APITAL

Founded in January 2011, Energy Technology Ventures is a joint

venture involving General Electric, NRG Energy, and ConocoPhillips.

The fund is focused on the development of next-generation energy

technologiesand invests in venture- and growth-stage companies.

The main areas the JV invests in are renewable power generation, energy efficiency, emission controls,

smart grid, oil, natural gas, coal and nuclear energy, water and biofuels sectors. With their deep and

complementary technical and financial expertise, relationships, services and products, the three

market leaders GE, NRG Energy and ConocoPhillips intend to help start-ups develop next-generation

energy technology.
https://www.youtube.com/watch?v=vCe9c7kL3K0https://www.youtube.com/watch?v=vCe9c7kL3K0https://www.youtube.com/watch?v=vCe9c7kL3K0https://www.youtube.com/watch?v=vCe9c7kL3K0


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3 OPENINNOVATION POLICYToday, GE is one of the most involved companies in open innovation. It understood very

early that very advanced manufacturing techniques and highly complicated processes

required collaboration. By crowdsourcing innovationboth internally and externallyGE is

now driving advancements across industries.

3.1 Competitions and challenges

Recently, GE had an innovative way to come up with innovations related to the emerging

smart electric grid: the company asked for ideas. Last July, GE launched what it called an

ecomagination challenge, a competition in which startups and inventors were asked to

present technologies that could help GE accelerate its development of products and services

related to the smart grid. GE got 4,000 submissions. It gave $100,000 cash awards to five

young companies and formed strategic partnerships with 12 others; all of them are

expected to help GEs business in one way or another in such areas as energy storage, utility

security, energy management software, and electric-vehicle charging services.

In another field, GE and its partners announced winning Open Collaboration innovations

of industrial internet flight quest 2 and 3D printing production quest. Flight Quest 2 is aimed

to help GE develop first-of-a-kind solution allowing airlines to determine the most efficient

flight routein real time; could save the industry $3 billion each year. 3D Printing Production

Quest identifies three fabricators with capabilities to produce complex medical imaging

device partswith high precision; it will drive greater product performance, quality and cost

savings for healthcare customers.

3.2 OurCrowd

In November 2013, GE Ventures

entered a co-investment partnership with Israeli crowdfunding platform OurCrowdthat will

enable GE Ventures to co-invest with OurCrowd in select early stage companies. This

demonstrates GEs confidence in crowdfunding as a valuable method to discover

companies.

OurCrowd is an equity crowdfunding platform exclusively for accredited investors, who need

to invest at least $10,000 per deal.

OurCrowd has created a unique platform for dynamic early

stage origination and funding, the partnership will give GE

increased access to early innovation.

Sue Siegel, GE Ventures CEO


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4 SOURCES- http://www.geventures.com/

- http://www.ge.com/sites/default/files/GE%20Ventures%20EXTERNAL%20Fact%20Sheet%20FIN

AL_0.pdf

- http://www.mediapost.com/publications/article/8197/ge-imagination-at-work.html

- http://www.stem.com/archives/11445

- http://www.nanosonics.com.au/

- http://www.ninesigma.com/

- http://www.technologyreview.com/

- https://www.cbinsights.com/blog/ge-siemens-venture-capital/

- http://www.crunchbase.com/organization/ge-ventures/people

- http://www.crunchbase.com/organization/energy-technology-ventures

- http://allthingsd.com/20130520/ge-ventures-officially-opens-for-business-in-silicon-valley-video/

- http://blogs.wsj.com/venturecapital/2014/05/05/ge-ventures-sue-siegel-accelerators-reduce-risk-

for-early-stage-investors/

- http://www.chicagotribune.com/bluesky/series/big-company/chi-ge-ventures-karen-kerr-bsi-

20140930-story.htmlhttp://blog.cleantech.com/companies/company-spotlight/10x13-ep-8-colleen-calhoun-sr-exec-dir-

for-energy-ventures-at-ge-on-themespartnerships/

- http://allthingsd.com/20130520/ge-ventures-officially-opens-for-business-in-silicon-valley-video/

- http://venturebeat.com/2013/11/04/ge-enters-the-crowdfunding-arena-with-ourcrowd-partnership/

- http://www.forbes.com/sites/markfidelman/2013/11/12/heres-what-general-electrics-ge-big-bet-on-

crowdfunding-looks-like/

- http://www.ge.com/about-us/openinnovation

- http://volans.com/project/investing-in-breakthrough-corporate-venture-capital/
http://www.geventures.com/http://www.ge.com/sites/default/files/GE%20Ventures%20EXTERNAL%20Fact%20Sheet%20FINAL_0.pdfhttp://www.ge.com/sites/default/files/GE%20Ventures%20EXTERNAL%20Fact%20Sheet%20FINAL_0.pdfhttp://www.stem.com/archives/11445http://www.nanosonics.com.au/http://www.ninesigma.com/http://www.technologyreview.com/https://www.cbinsights.com/blog/ge-siemens-venture-capital/http://www.crunchbase.com/organization/ge-ventures/peoplehttp://www.crunchbase.com/organization/energy-technology-ventureshttp://allthingsd.com/20130520/ge-ventures-officially-opens-for-business-in-silicon-valley-video/http://blogs.wsj.com/venturecapital/2014/05/05/ge-ventures-sue-siegel-accelerators-reduce-risk-for-early-stage-investors/http://blogs.wsj.com/venturecapital/2014/05/05/ge-ventures-sue-siegel-accelerators-reduce-risk-for-early-stage-investors/http://www.chicagotribune.com/bluesky/series/big-company/chi-ge-ventures-karen-kerr-bsi-20140930-story.htmlhttp://www.chicagotribune.com/bluesky/series/big-company/chi-ge-ventures-karen-kerr-bsi-20140930-story.htmlhttp://blog.cleantech.com/companies/company-spotlight/10x13-ep-8-colleen-calhoun-sr-exec-dir-for-energy-ventures-at-ge-on-themespartnerships/http://blog.cleantech.com/companies/company-spotlight/10x13-ep-8-colleen-calhoun-sr-exec-dir-for-energy-ventures-at-ge-on-themespartnerships/http://allthingsd.com/20130520/ge-ventures-officially-opens-for-business-in-silicon-valley-video/http://venturebeat.com/2013/11/04/ge-enters-the-crowdfunding-arena-with-ourcrowd-partnership/http://www.forbes.com/sites/markfidelman/2013/11/12/heres-what-general-electrics-ge-big-bet-on-crowdfunding-looks-like/http://www.forbes.com/sites/markfidelman/2013/11/12/heres-what-general-electrics-ge-big-bet-on-crowdfunding-looks-like/http://www.ge.com/about-us/openinnovationhttp://volans.com/project/investing-in-breakthrough-corporate-venture-capital/http://volans.com/project/investing-in-breakthrough-corporate-venture-capital/http://www.ge.com/about-us/openinnovationhttp://www.forbes.com/sites/markfidelman/2013/11/12/heres-what-general-electrics-ge-big-bet-on-crowdfunding-looks-like/http://www.forbes.com/sites/markfidelman/2013/11/12/heres-what-general-electrics-ge-big-bet-on-crowdfunding-looks-like/http://venturebeat.com/2013/11/04/ge-enters-the-crowdfunding-arena-with-ourcrowd-partnership/http://allthingsd.com/20130520/ge-ventures-officially-opens-for-business-in-silicon-valley-video/http://blog.cleantech.com/companies/company-spotlight/10x13-ep-8-colleen-calhoun-sr-exec-dir-for-energy-ventures-at-ge-on-themespartnerships/http://blog.cleantech.com/companies/company-spotlight/10x13-ep-8-colleen-calhoun-sr-exec-dir-for-energy-ventures-at-ge-on-themespartnerships/http://www.chicagotribune.com/bluesky/series/big-company/chi-ge-ventures-karen-kerr-bsi-20140930-story.htmlhttp://www.chicagotribune.com/bluesky/series/big-company/chi-ge-ventures-karen-kerr-bsi-20140930-story.htmlhttp://blogs.wsj.com/venturecapital/2014/05/05/ge-ventures-sue-siegel-accelerators-reduce-risk-for-early-stage-investors/http://blogs.wsj.com/venturecapital/2014/05/05/ge-ventures-sue-siegel-accelerators-reduce-risk-for-early-stage-investors/http://allthingsd.com/20130520/ge-ventures-officially-opens-for-business-in-silicon-valley-video/http://www.crunchbase.com/organization/energy-technology-ventureshttp://www.crunchbase.com/organization/ge-ventures/peoplehttps://www.cbinsights.com/blog/ge-siemens-venture-capital/http://www.technologyreview.com/http://www.ninesigma.com/http://www.nanosonics.com.au/http://www.stem.com/archives/11445http://www.ge.com/sites/default/files/GE%20Ventures%20EXTERNAL%20Fact%20Sheet%20FINAL_0.pdfhttp://www.ge.com/sites/default/files/GE%20Ventures%20EXTERNAL%20Fact%20Sheet%20FINAL_0.pdfhttp://www.geventures.com/

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