IDCEE 2013: Investing in tech startups - Igor Taber (Director for Russia/CIS @ Intel Capital)
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Transcript of IDCEE 2013: Investing in tech startups - Igor Taber (Director for Russia/CIS @ Intel Capital)
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Intel Capital Investing in Global
Innovation
Investing in Tech Startups in CEE
Igor Taber Investment Director
Intel Capital Russia CIS
11 Oct 2013
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Global Investment Footprint
$10.8 billion+ in 1276 Companies across 54 Countries
Intel Offices and Intel Capital
Invested
Intel Capital Invested
$500m China Technology Fund II
$250m India Technology Fund
$50m Brazil Technology Fund
$50m Middle East and Turkey Fund
Intel Capital is a stage agnostic, long term, active TMT investor
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Intel Capital Facts in CEE/Russia(CIS)
Number of
Investments:
Last Two Years:
First Investment: Exits:
28/13
9 deals
1999/2002 14/4
50% of capital
Capital Deployed:
Intel Capital is one of the largest and most
active VC investors in CEE
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Investing in CEE
WRONG RIGHT
CONSENSUS
NO CONSENSUS
?
√
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Key Things to Consider
• Deal Flow
• Cash
• Board
• Add Value
• Management
• Local vs Global
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Deal Flow
• Quality/proprietary deal flow is the KEY
• Few companies everyone knows –
• Expensive
• Hype vs Reality
• A lots of capital
• Many companies no one knows
• Usually bootstrapped and profitable and founder managed
• Hard to effectively communicate with investors/pitch
• Governance is a challenge
• Seed vs Series A – no clear line
• Local presence is essential
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Cash availability
• Growth comes with cash availability
• Follow-on cash is hard”ER” to get
• Only 8 growth/expansion deals in Q2
• Ensure longer runways vs optimizing for
dilution
• Lack of cash will lead investors to unnatural
decision making
• Co-invest with parties that are able to
continue funding the business plan
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Active Board Participation • Take board seats; drive for balanced
board/decision making
• Boards in CEE often lack
• Strategic vision
• Financial acumen
• Founders often lack effective board experience
• Don’t try to run the business
• Independents
• Mixed bag
• Window Dressing vs Value Add
• No to “professional board members”
• Yes to Operators who can add value to the CEO
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Value Add • Know when to Lean in/Lean back
• Introductions
• Ex: Intel Technology Days; Intel Global
Summit; other port-cos
• Future rounds/Exits
• Exit opportunities are limited (for now). #1
player in the segment will generate premium
• Just like “tomatos”
• Brand name investors are key
9
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Management/Founders
• Evaluate/benchmark vis-à-vis local market and not
the world (unless competing globally)
• Exit alignment
• Serious shortage of management talent –
• don’t assume you can easily replace founder CEO
post investment – VERY hard to do
• If you don’t think current management can run the
company for next 3 years – don’t invest
• However, make tough decisions sooner rather
then later
1
0
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Think Globally, Act Locally!
• Only consider GO Global (US), when:
• You are in enterprise/ B2B segment or you reached
$50M in revenue in B2C and you are not in Consumer
Internet
• You are able to attract talent in US that
• PERFECT cultural fit between him/her and local team.
• Preferably as VP of Sales and Marketing (not a CEO)
• Ideally founders (including technical) are able to move
• No language barriers with local team
• Clearly differentiated/disruptive solution (cost base
is not a differentiator)
• Otherwise – focus, focus, focus! 1
1
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About Intel Capital
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Consistent Investor
2012
IPOS 7
Acquired 28
Deals
Historical
1,276
B $10.8
Countries
54
37
IPOS 201
Acquired 317 % Dollars
Outside N. America
New Deals
Outside N.America 32
57 % Dollars
Outside N. America
* Number Includes New and Follow-on Deals Data as of Dec. 30, 2012
$352 M
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*Other marks and brands are property of their respective owners
2012 Exits
35 portfolio companies exited in 2012: 28 via M&A & 7 via IPOs
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Supporting the portfolio
• Work with the Intel business units to get on stage demos for:
• Intel events such as IDF (Intel Developer Forum)
• External events with Intel presence: such as CES (Las Vegas),
Computex (Taipei), MWC (Barcelona), E3 (Electronic Entertainment
Expo, LA), CEBIT
• Various chairs of working groups
• Invite to Intel Capital events such as:
• Silicon Valley VC events
• Consumer Board of Advisor meeting
• Enterprise Board of Advisor meeting
• Intel Capital Global Summit
• Intel and Intel Capital Public Relations support
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Supporting the portfolio - at a glance 4000 pieces of coverage for recent Global Summit
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Unleashing the Power of Partnership
Regular, targeted meetings between Intel Capital portfolio companies
and the right decision makers drawn from Intel’s relationships with
suppliers, partners and customers
• 3500+ engagements between portfolio companies & customers in 2012
• 1800+ Intel Capital Global Summit Connect meetings
• 76 Intel Capital Technology Days resulting in 1700+ introductions
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*Other marks and brands are property of their respective owners
Intel Capital Technology Days
Connect with the right decision makers at the right companies
And an additional 100+
Global 2000 Brands…
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