Inno-Fuel's Contribution on Corporate Strategic Investing & Start-up Acceleration @ PGQP in Porto Alegre on July 16th, 2015 with at the end 'The Healthbank Cooperative Case'

1. Corporate Strategic Investing:
The Corporate Perspective
ColinTurner & Alexandre Grutman
July 16th 2015

2. The rising tide
US Quarterly CSI deal volume trend
Q3’12 to Q4’14
Investment ($M) Deals
Source: cbinsights.com

3. The impact

4. CSI –What is it?
Aim:
Gain specific
competitive
advantage
01 Large company takes an equity stake
02 In a small/innovative/specialist company
03 Possibly providing expertise, access to markets,
production assistance …

5. Accessing external innovation
INTERNAL
to the
corporation
EXTERNAL
to the
corporation
Pure research
in universities
Licensing and
strategic
alliances
Corporate
strategic
investing
Mergers and
acquisitions
Internal
research and
development
Internal
incubation
Maturity of Innovation
Potential Corporate Engagement

6. Traditional CSI rationale
Strategic
fit
Financial
viability
Ideal

7. ECOSYSTEM
RoadmapToday
Types of CSI investments
Gap fillers
Ecosystem fillers
„Eyes and ears“

8. Ecosystem:“whole product model”
Source: Crossing the Chasm: Geoffrey A. Moore
Product
shipped

9. CSI investment positioning
Emerging
Established
Incremental innovation Radical innovation
Marketlifecycle
Innovation type
Illustrative: Differs per industry
5-7+Y
3-5Y
2-3Y
1-1.5Y
Corporate
strategic
investment
„sweet spot“
Established
products and
service line
Applications,
devices &
adjacencies
Platforms

10. When should CSIs Invest?
IPOMezzanineC roundB roundA roundSeed
Stage of development of investee company
Financial
management
Valueaddedbyinvestorbeyondcash
Management
staffing
Marketing
Technology
Sales Channel
Others
Investment bank
Venture capitalAngel
Corporate strategic
investor
Trading
company
Complementary
Skills

11. Specific strategic focus
Develop CSI
specific
strategy
04 Map out the relevant technology landscape
01 Take corporate strategy
02 Extend it forwards and broaden
03 Focus on areas of potential innovation impact
05 Assess potential investible opportunities

12. Who leads the CSI unit?
Ideal
Corporate
Champion
Experienced
Investor
Technology
Expert

13. Risk reduction through co-investment
► Lead due diligence
► Co-operate re technology
development
► Drive industry standards
► Co-operate re marketing
► Build relations across
Business units
► Lead round (Valuation)
► Recruit management
► Support exit strategy
► Support management
► Build portfolio relationships
CSI: Venture capitalist:
Investee Company

14. What to you look for?
Aim:
Gain specific
competitive
advantage for
the
corporation
04 Strategic relevance to CSI
01 Genuinely Innovative
02 Not necessarily unique technology
03 Sustainable business model
05 Strong potential for financial gain

15. How to Organize? $
04 Joint Fund with key ‘Fellow Travelers’
01 Ad hoc investments with Senior Management Approval
02 Dedicated Internal Team “Investing from Balance Sheet”
03 Own Fund with Independent Management
05 Limited Partner in an Independent Fund
Aim:
Balance
Control
against
Impact

16. Dedicated InternalTeam
“Investing from Balance Sheet” $
 Global Reach
 1991+
 > USD 11 Billion
 > 50 Countries
 >1400 Companies
 ~ 600 Successful Exits
 Focus
 Offices in SiliconValley and
Swiss Centres of Excellence
 2007+
 > 35 Companies

17. Own Fund with Independent
Management $
 Nokia Growth Partners
 Nokia as Limited Partner
 2005+
 >USD700M under management
 >50 Companies
 Offices on 3 continents
 GinkoVentures
 FoxConn as Limited Partner
 2015+
 USD 150M under management
 Swiss based
 Focus on Europe and Israel

18. Joint Fund with Key FellowTravelers $
 2002+
 Schneider Electric,Alstom, and
Solvay as Limited Partners
 With the EIF
 > USD250M under management
 > 25 Companies
 Offices on 3 continents

19. Tantum – Inno-Fuel:
‘Bringing 2 complementary worlds together’
Strategy & Innovation
leadership
• Internal Innovation focus
• Corporate DNA & Ecosystem
• Innovation & Execution
Excellence
• Traditional (fee based)
business model
Early stage sourcing, investing
and coaching leadership
• External Innovation focus
• Start-up/Early stage investing DNA and
Ecosystem (30+)
• Value Creation & Initiative taking
• Hybrid model with ‘skin in the game’
• Extensive Expertise in various industry
value chains
‘We fuel the innovation ecosystem’
A globally organized
professional services business
that Develops Innovative
Strategies and Implements
Innovation Programs.

20. ‘Seizing the external innovation opportunity’ out of
Switzerland
Customer &
Market
- Customer Needs
- Market Identification
- Partner identification
- Value Chain Understanding
- Business Case & Execution,
Design & Planning
Innovation
Strategy & Mgt
- Strategy design,planning, governance &
process & performance management
- Coaching & best practices
(Co-creation, design thinking, business
modelling, performance mgt.,…)
Technology
Understanding
- Technology Scouting
- Materials & Process
Selection
- Ind. Design & Proto-typing
- Technological Solutions
Risk &
Entrepreneur-
ship
RichTech
Environment
Global Market
Needs

21. WhoWe are
• Tantum Strategy & Innovation Excellence
• Digital Health SME
• Start-upAccelerator
• Serial Entrepreneur
• 35 + tech. start-ups invested,
• Best early stage track record in the region
• CSI thought leader
• Investor
• RecognizedAdviser / Coach to start-ups
• Serial Entrepreneur
• Packaging Industry thought leader
• Corporate Innovation expert
Mathias Mangels:
Tantum / Symnetics
Founder
AlexandreGrutman:
TantumGroup
Switzerland MD

22. Our Focus
▪ Multinationals
▪ Designing & Executing a customized CSI Strategy
▪ Establish a ST to LT Plan
▪ Sourcing
▪ Financing
▪ Managing
▪ Exiting / Integrating
▪ Expertise (Internal & External), Training, Coaching & Network
▪ Execution support
▪ Awareness building
▪ How to start ?

23. Our Focus
▪ Start-ups (6)
▪ Focus
▪ Industry:
▪ Packaging
▪ Counterfeiting & Exclusivity
▪ Customer Intimacy & Interaction
▪ Digital Health
▪ Patient – Dr Interaction
▪ Patient Data Security & Governance
▪ Disruptions or Incremental with large impact (Regional or Global)
▪ Technology and / or business model innovation
▪ Perfect fit for multinationals

24. www.healthbank.coop
Your Data,Your Choice,Your healthbank
Our most recent, globally oriented & disruptive Start-Up

25. Global
Health Data
Transaction
Platform
…based in CH
…broad definition
…benefits to users
…neutral,
independent,
eco-system
In a Nutshell

26. The User Experience
YOU
&Your Account
Your Dashboard
Your Rewards
Your Care
Providers
Your
Wearables/
Apps
Your IoT
Devices

27. The Platform’sThree Stakeholders
User B2B / B2G Research
Secure, Independent,
Neutral Data Storage
Exchange of data with
health care profs,
family, friends,
research
Granular Individual
Consent
Secure, Independent,
Neutral Data Storage
Product/Service
enhancement
opportunities
“powered by healthbank”
Branding
Flexible, real-time
Non-clinical projects
Patient recruitment
for clinical trails
Information Hub to
share needs and
outcomes with the
global community
Dynamic control panel

28. Inno-Fuel as catalyst
28
- Insurance Companies
- Pharma / Medtech
- ICT Providers
- Digital Device Providers
- Governments
- Research Organizations
CSI & Start-Up
Acceleration

29. Thank you !
Alexandre Grutman
(TantumGroup / Inno-Fuel Founder)
a.grutman@tantum.com / a.grutman@inno-fuel.com
&
ColinTurner
(TantumGroup / Inno-Fuel CSIThought leader)
c.turner@tantum.com / c.turner@inno-fuel.com
Rue de la Colombière 8 - 1260 Nyon - Switzerland
T: +41 (0) 22 361 23 44
W: www.tantum.com / www.inno-fuel.com