1. What would you like to grow?
whatwouldyouliketogrow.com.au
The Future of
Venture Capital
February 2016
Corporate Venturing&
the Digital Ecomony

2. The PwC perspective
1 2
Steve Maarbani
Partner, Venture Capital & Private Equity
PwC
@SteveMaarbani

3. whatwouldyouliketogrow.com.au
What would you like to grow?
Fund establishment
@SteveMaarbani

4. whatwouldyouliketogrow.com.au
What would you like to grow?
“When the rate of
change on the outside
exceeds the rate of
change on the inside,
the end is near.”
Jack Welsh
Chairman& CEO of General Electric
(1995)
@SteveMaarbani

5. whatwouldyouliketogrow.com.au
What would you like to grow?
Global CVC growth
●Number of CVCs globally has doubled since 2010
●Number of deals increased 55% since 2012
●Funding volumes have nearly doubled since 2012
●Syndicate participation has increased – 1 in 5 VC
deals involved a CVC
●Asian CVC has nearly trebled since 2012
Source: CB Insights

6. whatwouldyouliketogrow.com.au
What would you like to grow?
Australian CVC activity
+
+
@SteveMaarbani

7. Accelerating growth
Keymilestones
§ Test assumptions
§ Develop proof of
concept
§ Develop launch product
or service
§ Business development
strategy
§ Customer acquisition
§ Business processes
§ Legal & compliance
§ Recruit key team members
§ Scale up customer
acquisition
$500k+
Accelerators / Friends &Family
SEED STAGE
Ideation
From idea to product
EXPANSION STAGE
Commercialisation
Customer acquisition & scale
STARTUP STAGE
Incubation
Technical & consumer validation
$100k-$500k<$100k
Fundingrange
Angels / EBCF / Micro-VCs
Venture Capital
CVC
• Brand & credibility
• Customers & distribution
• Infrastructure & resources
• Sector IP & know-how
• Network & relationships

8. Keymilestones
§ Test assumptions
§ Develop proof of
concept
$500k+
Accelerators / Friends &Family
SEED STAGE
Ideation
From idea to product
EXPANSION STAGE
Commercialisation
Customer acquisition & scale
STARTUP STAGE
Incubation
Technical & consumer validation
$100k-$500k<$100k
Fundingrange
Angels / EBCF / Micro-VCs
Venture Capital
CVC
• Brand & credibility
• Customers & distribution
• Infrastructure & resources
• Sector IP & know-how
• Network & relationships
Corporate Venture Capital
§ Develop launch product
or service
§ Business development
strategy
§ Customer acquisition
§ Business processes
§ Legal & compliance
§ Recruit key team members
§ Scale up customer
acquisition
Accelerating growth

9. whatwouldyouliketogrow.com.au
What would you like to grow?
Unicorns backed by CVCs
@SteveMaarbani

10. whatwouldyouliketogrow.com.au
What would you like to grow?
CIV strategy framework
4.
Synergy
Realisation
1.
Define
Objectives
2.
Pipeline
Development
3.
Engagement
Methods
@SteveMaarbani
Define & document core
objectives:
• Branding & marketing
• Attract & retain talent
• Accelerate internal
innovation
• Future-proofing
Develop opportunity
pipeline:
• Increasing number of
startups
• Exposure to best of
breed technology
• Ecosystem partnerships
Determine
engagement methods:
• Investment
• Strategic alliance
• Joint venture
• Customer
• Distribution
Post transaction synergy
realisation by leveraging:
• Brand & credibility
• Customers & distribution
• Resources
• IP & know-how
• Networks

11. whatwouldyouliketogrow.com.au
What would you like to grow?
“There has never been
a more exciting time
to be an Australian
venture capital fund
manager.”
(with apologies to Malcolm Turnbull)
@SteveMaarbani

12. The CVC perspective
2 12
Todd Forest
MD, NAB Ventures

13. What would you like to grow?
whatwouldyouliketogrow.com.au
The Future of
Venture Capital
February 2016
Corporate Venturing&
the Digital Economy