Slides from Reinventure's presentation at PwC innovation event. Authors: Simon Cant Danny Gilligan Rohen Sood

1. Danny Gilligan@dannygilligan
Simon Cant@simoncant
Rohen Sood @rohensood13
www.reinventure.com.au
Corporate Venture Capital
December 2014

2. 2
What we drew from media: Killing Fairfax
Corp. investment horizon
Venture investment horizon
Years
Return
01234567
Sustaining innovation more attractive near term
Disruptive innovation attractive long term
Internal Innovation (FXJ classies): failed
VC model (PBL+SEEK, NEWS+REA): succeeded
•Internal business units
•Over invest in startup (citysearch)
•Under invest in growth
•Stifled by fear of cannibalization
•Led by salaried execs
•Separate ventures
•Limited initial investment
•Follow-on raisings/reinvest profits
•Corporate funder drove synergies
•Entrepreneurs on sweat equity
Source: Reinventure

3. 3
The Reinventuremodel: Corporate VC 2.0
Committed fund
Independent Management
Minority investments
Proven entrepreneurs
Invest where WBC can add value
Local plays & fast follows
•Long term commitment to addressing disruption by Westpac
•Longer horizon than Westpac
•Experienced venture managers
•Venture access to external capital
•Diversity/double down on winners
•100% higher success rate
•Prepared to share risk
•Potential disruption of core profit pools -create options to diversify
•Spot disruptive innovations early and leverage local advantages
Fund structure
Fund strategy
Source: Reinventure

4. 4
Where we see opportunity: unbundling banking
Ubiquitous
Data
Technology Driven Networks
Artificial
Intelligence
Savings & spending e.g.
Wealth management e.g.
P2P lending e.g.
Crowdfunding e.g.
Payment
platforms e.g.
Risk priced insurance e.g.
Source: Reinventure
Risk based lending e.g.

5. 5
Australian Media Revenues 2013
Why we think local opportunities matter
Local disruptors
Global disruptors
Involve local barriers to entry e.g.
•Sales force on the ground
•Regulation
•Or local network effects e.g.
•Cars, houses, jobs
Global economies of scale e.g.
•Amazon web services
Or global network effects e.g.
•Adwords
Flow-on benefits …
Flow-on benefits …
•$7M tax in AU in 2014
Source: Reinventure, IBIS world
Newspapers, 15.40%
OOH, 5.40%
Radio, 8.90%
STV, 4.30%
Magazines, 3.90%
Internet, 29.80%
FTA, 31.30%
•Execs have started up next generation of ventures
•Angels/VCs (Squarepeg, Constant Innovation)
47%or $1.74B
20% or $750M
$12.3b