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Cogentic Case Studies 2010 Q4


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Cogentic Advisors - Case Studies, 2011-Q4

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Cogentic Case Studies 2010 Q4

  1. 1. cogenticclear strategy | precise execution Innovation | Incubation | Investment Case Studies 2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 1
  2. 2. Business Development: DivX, Inc. Innovation | Incubation | InvestmentChallenge: DivX, the leader in MPEG4-based video compression for PCs, needed to enter Consumer Electronics (CE) to extend its reach.Solution: Created strategic plan to enter CE markets through DVD and set-top box (STB), set licensing strategy, and acquired key IC, OEM, and ODM alliances.Benefit: DivX technology is embedded in DVD players, DTVs, STBs, portable media players, and represents over 70% of their revenue in 2009. Successful CE market penetration powered their IPO (September 2006), which raised over $600M. Sonic Solutions acquired DivX in June 2010 for $320M.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 2
  3. 3. Capital Sourcing: Morphlix Innovation | Incubation | InvestmentChallenge: Morphlix sought funding of $1.5M for development and marketing. They planned to become the first secure delivery system of movies at full HD (1080p) resolution to consumers via removable devices, retail kiosks, and the internet.Solution: Strategy was developed to target 50-80 investors known to participate in media and entertainment technology. Outreach to both VCs and strategics performed over a four month period.Benefit: Cogentic was able to secure the first $1.5M of funds for Morphlix, as well as help them to initiate licensing discussions with major studios.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 3
  4. 4. Tech Strategy: Sony Corporation Innovation | Incubation | InvestmentChallenge: Sony Electronics needed to investigate opportunities and develop strategies for its next generation, SOA-based product suite for the post-production industry.Solution: The project was done in two phases: (a) industry and competitive research on the ecosystem; (b) strategic recommendations on alliance partners, competitive strategy, and pricing methodology.Benefit: Internal funding for the program was provided, and Sony Electronics featured its Media Backbone workflow solutions at NAB2010.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 4
  5. 5. Business Development: LSI Logic Innovation | Incubation | InvestmentChallenge: LSI Logic needed introductions to key executives at post-production facilities and the major Hollywood studios to increase adoption of their new advanced MPEG codec technology.Solution: Cogentic made strategic introductions resulting in meetings with CTOs and key executives at the top three studios and top four post houses. Briefing presentations prepared LSI executives prior to all meetings.Benefit: LSI Logic trials were established at each facility, and engineering development programs with LSI Logic’s integrators were accelerated by six months versus competitors, helping retain >40% market share.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 5
  6. 6. Capital Sourcing: Green Earth Fuels Innovation | Incubation | InvestmentChallenge: Green Earth Fuels, an innovator in bio-fuel technology and processes targeted to raise $80 million in an initial round of capital to fund expansion, and infrastructure developmentSolution: Team members Richard Beleutz, Robert Dolan and Eric Knight developed a syndicate strategy to generate global investor interestBenefit: The team was successful in raising $80 million in an initial round of capital from Carlyle Group, Goldman Sachs and Riverstone Funds. The syndicate subsequently funded a $180 million follow on offering.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 6
  7. 7. Capital Sourcing: VSE Innovation | Incubation | InvestmentChallenge: Virtual Space Entertainment (VSE) created the world’s first 1080p virtual world, and needed to raise $5M to $8M in its Series A round.Solution: Investment packaging, outreach plan, and investor contact was to be performed over six month period in two stages, first to secure $1M and position the company for Series A after abatement of the 4Q-2008 economic downturn.Benefit: Cogentic secured the capital needed, and helped the company secure key senior management team members to lead the company through its next stage of growth. VSE survived 2009, and has subsequently received additional funding in 1Q-2010.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 7
  8. 8. Tech Strategy: Qualcomm (BREW) Innovation | Incubation | InvestmentChallenge: Qualcomm wanted to deploy its Binary Run-Time Environment TM (BREW ) development toolkit to the cellular ecosystem.Solution: Global market entry strategy was developed, including target market strategies for US, Korea and Japan.Benefit: Successful deployment of the technology toolkit, with carriers, handset manufacturers, and application developers forming an infrastructure where BREW applications can be purchased by users. Priority 1 Issues: Korea - Issue Prioritization KC1 = Carrier CRM KD1 = Developer CRM 4.0 KO1 = OEM Sophistication K D1 KD2 = Developer Sophistication K D2 KO2 KE2 K R2 K C1 KO2 = Handset Availability KR2 = Regulatory K L3 KB1 KB2 Capriciousness KB2 = Business Relationship KB3 KE1 Issues Like lihood 2.0 Priority 2 Issues: KB1 = Perception of Qualcomm KB3 = Multi-Linguality KL3 = Contract adherance KE1 = End user expectation 0.0 KE2 = End user sophistication 0.0 2.0 4.0 Se v e rity2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 8
  9. 9. Business Development: Sony Corporation Innovation | Incubation | InvestmentChallenge: Sony Electronics needed to advance its MPEG-based strategy to maintain its leadership role in professional broadcast equipment.Solution: Created two key initiatives: Pro-MPEG Forum (open industry consortium of broadcasters and OEMs) and Sony’s “MPEG World” (individual alliances between Sony and other manufacturers).Benefit: Within 12 months, Sony dominated with its MPEG strategy and resulting sales over two years was over $300M in MPEG equipment.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 9
  10. 10. Buy Side M&A: Easynet (News Corp) Innovation | Incubation | InvestmentChallenge: Easynet Global Services USA, a managed services provider backed by BSkyB (News Corp) wanted to consider options for expanding their USA presence via a targeted acquisition.Solution: After a discovery process to determine goals and constraints, a long list of potential targets was pruned to a short list, based on strategic analysis of factors influencing attractiveness and likelihood of success.Benefit: Armed with information needed for its decision, the company is poised to act – however, no further information can be disclosed at this time.2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 10
  11. 11. Tech Strategy: Apeer Mobile Innovation | Incubation | InvestmentChallenge: Apeer Mobile, a real-time collaboration tool developer, needed to maximize its valuation over 12-18 month time horizonSolution: Corporate and technology strategy were revamped to focus on mobile, alliance plan created to establish wireless media ecosystemBenefit: Company engaged in trials with large advertising firms, major networks and news outfits; in M&A discussions (as of 3Q2009)2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 11
  12. 12. Contact Us Innovation | Incubation | Investment http://www.cogentic.com2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 12