Presented at the Digital Ventures/Siam Commercial Bank Faster Future Fintech Forum (28 Feb 2017, Bangkok) by Paul Ark, Managing Director of Corporate Venture Capital of Digital Ventures

1. BUSINESS OPPORTUNITY THROUGH
CORPORATEVENTURE CAPITAL
FASTER
FUTURE
FINTECH
FORUM

2. “They suck! They are not interested in the company’s
success or the entrepreneur’s success. Corporations exist to
maximize their interests. They can never be menchy or
magnanimous. It’s not in their DNA, and so they suck as
investors.”
- Fred Wilson of Union Square Ventures, on corporate venture capital
CVC: VC’S MISUNDERSTOOD, LESS SEXY COUSIN?

3. GLOBALVC INVESTMENT ACTIVITY
GLOBALVC INVESTMENT ACTIVITY ON THE RISE WITH 2015 BEING A RECORDYEAR
$45
$64 $59
$65
$108
$141
$127
8,459
10,842
13,006
15,800
18,157 17,992
…
2010 2011 2012 2013 2014 2015 2016
GLOBALVC FINANCING
Invested ($Bn) Deal count (#)
Source: KPMG
13,655
$5.3M $5.9M $4.5M $4.1M $5.9M $7.8M $9.3MAVR. $/ROUND

4. 57%
12%
31%
GLOBALVC INVESTMENT ACTIVITY
GLOBALVC ACTIVITY HAS NEARLY DOUBLED FROM 2013 TO 2016
$127.4BN
INVESTED
13,665
DEALS
2016
AMERICAS
§ $72BN INVESTED
§ 8642 DEALS
EUROPE
§ $16BN INVESTED
§ 3142 DEALS
ASIA
§ $39BN INVESTED
§ 1742 DEALS
Source: KPMG

5. CORPORATEVENTURING BY THE NUMBERS
CORPORATE INVESTMENT ACTIVITY HAS RISEN SHARPLY OVER THE PAST 5YEARS
Source: Forbes, KPMG, CB Insights
NUMBER OF GLOBAL
ACTIVE CORPORATE
INVESTORS IN 2016
965 3x 75%
INCREASE IN GLOBAL
ACTIVE CORPORATE
INVESTORS
PERCENTAGE OF FORTUNE
100 ENGAGED IN
CORPORATE INVESTING
NUMBER OF PATENTS
PER DOLLAR INVESTED
VS. IN-HOUSE R&D
3x 32%
PERCENTAGE OF CVC
FUNDINGTO ALL
STARTUP FUNDRAISINGS

6. CORPORATEVENTURE INVESTMENTVOLUME
Source: CB Insights
CORPORATES PLAYING AN INCREASINGLY PROMINENT ROLE INVENTURE FUNDING
9.7 16.9 29.1
12.7
31.9
54.1
71.3
26.4
23% 24%
29%
32%
2013 2014 2015 1H2016
CVC FUNDING CONTRIBUTION ($BN)
Other Funding ($Bn)
CVC Funding ($Bn)
CVC Funding to Total Funding (%)
960 1260 1365 633
4902
5475 5753
2480
16%
19% 19% 20%
2013 2014 2015 1H2016
CVC PARTICIPATED DEALS (#)
No CVC Deals (#)
CVC Partipated Deals (#)
CVC Deals to Total Deals (%)

7. WHO ARE THESE CORPORATEVENTURERS?
A WIDE ARRAY OF INSTUTIONS SPANNING TECH, HEALTH CARE, FINANCE,AUTO, FMCG,
ENERGY & MEDIA HAVE JOINED THEVC SPHERE TO FOSTER INNOVATION

8. THAI CVC AS A DRIVER OF INNOVATION
IN 2016 & 2017,THAILAND’S STARTUP ECOSYSTEM HAS SEEN AN INFLUX OF CVC ACTIVITY, WITH
LOCAL BANKS LEADING THE WAY WITH OVER US$150 MILLION IN NEW INVESTMENT FUNDS
Wave 2: FinancialWave 1: Telcom Wave 3: Industry

9. STRATEGIC REASONS FOR CVC
THERE ARE AVARIETY OF STRATEGIC
REASONS FOR COMPANIES TO ENGAGE
IN CORPORATEVENTURING, AND
MANY WAYS TO MEASURE STRATEGIC
RETURNS FROM SUCH ACTIVITY
SOURCE NEW
PRODUCTS &
SERVICES
OUTSOURCE
R&D
NURTURE
ECOSYSTEM
& STIMULATE
INNOVATION
SOURCE
ACQUISITION
TARGETS
KNOWLEDGE
ACQUISITION
& TRANSFER
RECRUIT,
DEVELOP &
MOTIVATE
TALENT

10. COMPARISON: FINANCIALVS. CORPORATEVC
FUND OBJECTIVE
CONTROL PREFERENCE
VALUE CREATION
Financial return
FINANCIALVC CORPORATEVC
Financial and/or Strategic return
Board seat (active role) Board observer role (passive role)
Financial return
• Successful exit of portfolio
company (IPO, trade sale)
Strategic return
• Learning (Tech know-how)
• Product implementation usage
• Company acquisition
Financial return
• Successful exit of portfolio
company (IPO, trade sale)
SOURCE OF FUNDS External (Limited partners) Internal (Company-sponsored)
FUND HORIZON Limited life (typically 10 years) Typically no end of fund life
FOLLOW ON Based on investment prospects Based on corp. objectives & appetite

11. CORPORATEVENTURING CHALLENGES
• DECISION MAKING PROCESS &
SPEED
• TIME & COST OF IMPLEMENTATION
• COMMITMENT & LONGEVITY
• ALIGNMENT B/W
CORPORATE & STARTUP
• EXCLUSIVITY
• COMMAND & CONTROL
• FINANCIALVS. STRATEGIC RETURNS
• VALUE ADD & EXTRACTION
• TYPE & TIMING OF EXIT
• ALIGNMENT B/W
CORPORATE &VCs
• COMPENSATION & CARRY
• RECRUITMENT &
RETENTION
TALENT RETURNS
ORGANIZATIONCULTURE

12. FASTER
FUTURE
FINTECH
FORUM