The document outlines a presentation on corporate innovation by Asher Siddiqui, detailing his extensive experience in corporate venture capital and startup environments. It emphasizes the importance of innovation in corporations, highlighting the challenges of disruption and the need for companies to adapt through startup engagement, investment, and innovation frameworks. Best practices for collaborating with startups are also provided, focusing on building credibility, de-risking innovation efforts, and fostering genuine partnerships.

1. Corporate Innovation 101
Yerevan, Armenia
5 April 2019
Asher Siddiqui
Investor / Advisor / Mentor ! / " / #

2. AGENDA
1. ABOUT ME
2. CORPORATE INNOVATION 101
3. INNOVATION FRAMEWORK
4. Q&A / DISCUSSION

3. Asher Siddiqui
Investor / Mentor / VC / Corp Dev Exec / Entrepreneur
• ~20 years of experience
• 4 startups; 3 founded; 2 failures; 1 (small) exit
• 2 Corporate VC’s; 2 Venture Investors; 1 VC
• Invested: $7-8bn (Prior to 500)
Late Stage: led 36+ deals valued at $34bn; closed 9
Early Stage: looked at 100’s; closed 12+
• Ex-Managing Partner (+ Member of the Investment Committee) at
500 Startups (San Francisco, USA)
• Ex-Head of M&A at Etisalat Group responsible for Mergers &
Acquisitions and Corporate Venture Capital (UAE).
• Extensive Board level experience.
• Advisor to Private Equity Firms, VC’s, SWF’s and Startups.
• BA in Business and an MSc in Software Development.

4. AGENDA
1. ABOUT ME
2. CORPORATE INNOVATION 101
3. INNOVATION FRAMEWORK
4. Q&A / DISCUSSION

5. Innovation (noun)
“The action or process of innovating.”
Innovate (verb)
“Make changes in something established, especially by introducing new
methods, ideas, or products.”
roots: Latin
“innovare” & “innovatus” = “renew” or “change”
Source: The Oxford Dictionary 2019
Definitions

6. Corporate Innovation
“The actions or processes of making changes to how a corporation operates
or what it does or who it serves by introducing new methods, ideas, or
products.”
or
“the continuous evolution to adapt and better fulfill corporate mission.”
Note: Proposed definitions for the purposes of setting context and/or facilitating discussion
Definitions

7. Corporate Innovation
Whatever it is, “Everyone" is Doing it!

8. The State of Corporate Innovation
“The majority (84.9%) of corporates
surveyed thought that innovation was
important…”
Source: CB Insights State of Innovation Report 2018 (https://www.cbinsights.com/research-state-of-innovation-report)
“41% of corporates surveyed thought
that their businesses were at risk of
disruption…”
…but the majority “…78% of corporates
surveyed were focused on incremental
innovation (driven by customers and
employees)…”

9. How Corporates Deal with Disruption
“…68% of the top
companies from
Forbes Global 500
are engaging with
startups.”
Source: 500 Startups & INSEAD Report (https://www.insead.edu/news/2016-insead-and-500-startups-report)

10. $26.2 Billion $50 Million $19 Billion
Technology Companies Continue to be Acquisitive
$7.5 Billion

11. $3.3 Billion $1 Billion > $1 Billion
Even non-Technology Corporations are Active…
$12.8 Billion

12. Why is this happening?

13. Significant Decrease in the Cost of Launching a Technology Startup
Source: https://bothsidesofthetable.com/why-has-seed-investing-declined-and-what-does-this-mean-for-the-future-6a9572357130
OPEN SOURCE
AWS & CLOUD

14. Source: http://blog.thinque.com.au/futurist-keynote-for-the-hospitality-industry-part-1/2
Startups Move Faster…

15. … & are Focused (Disruption in Pieces: Banks)

16. Corporates Must Adapt or Face the Consequences
Source: https://www.slideshare.net/dmc500hats/dinosaurs-unicorns-avoiding-corporate-extinction-by-investing-in-startup-innovation/14-In_2001_Borders_thought_ebooks

17. What are Corporations doing?

18. Building…
Source: Kleiner Perkins Internet Trends 2018 Report (presented by Mary Meeker)

19. Partnering…
CASE STUDY: AT&T ACS + TWILIO (2012)

20. Investing…
Source: https://www.cbinsights.com/research/report/corporate-venture-capital-trends-2017-h1/

21. Invest – CVC on the Rise Even in non-Tech & Emerging Markets…

22. …and/or Acquiring

23. AGENDA
1. ABOUT ME
2. CORPORATE INNOVATION
3. INNOVATION FRAMEWORK
4. Q&A / DISCUSSION

24. Before you jump!
…let’s consider how you could pursue
corporation innovation…

25. A Framework
…to help figure out “the how”
www.newlineventures.com

26. Inside the
corporation
Jointly explored and
conceived between
internal and external
resources
Outside the
corporation
INNOVATION SOURCE
INTERNAL HYBRID EXTERNAL
Where is the source of innovative concepts?
Source & Credit: Pedram Mokrian (New Line Ventures and The Stanford School of Engineering)

27. Discovery and conception
of new opportunities
Development of identified
opportunities into viable
businesses
Delivering value at the
corporate level through
scale
INNOVATIONSTAGE
DISCOVERDEVELOPDELIVER
What is the strategic stage of the innovation program and the level of
maturity?
Source & Credit: Pedram Mokrian (New Line Ventures and The Stanford School of Engineering)

28. INNOVATIONSTAGE
INNOVATION SOURCE
INTERNAL HYBRID EXTERNAL
DISCOVERDEVELOPDELIVER
Alignment between Innovation Programs Using these Factors?
Source & Credit: Pedram Mokrian (New Line Ventures and The Stanford School of Engineering)

29. INNOVATIONSTAGE
INNOVATION SOURCE
INTERNAL HYBRID EXTERNAL
PRODUCT-LINE
INNOVATION
PARTNERSHIPS M&A (&D)
SKUNKWORKS
VENTURE
STUDIO
EXTERNAL CVC
R&D
ORGANIC
PLATFORMS
HACKATHONS,
ACCELERATORS,
COMPETITIONS
DISCOVERDEVELOPDELIVER
The Innovation Management Matrix
Source & Credit: Pedram Mokrian (New Line Ventures and The Stanford School of Engineering)

30. Q&A

31. AGENDA THE ECOSYSTEM

32. Bootstrap Angels Seed SeriesA GrowthTalent
Stages of Development in the Startup Ecosystem
The Technology Startup Deal Flow Funnel

33. VC Funding continues to grow…
Source: PwC MoneyTree Report 2018 & CB Insights

34. The Unicorn Club continues to grow…

35. Fund LP’s
VC’s
Angel
Investors
Corporates Startups
At first glance it appears to be a set of disparate groups
The Key Stakeholders in the Ecosystem
Appearances can be deceptive…

36. …but everyone knows everybody
The Key Stakeholders in the Ecosystem
…and each stakeholder plays multiple roles…
Fund LP’s
VC’s
Angel
Investors
Corporates Startups

37. -B2B startups want access to large corporates
-B2C startups want access to large customer base
-Corporates can ease cross-border market access
The Corporates’ Role Cuts Across the Ecosystem…
Source: Report & Data from https://startupgenome.com/
Market
Policy
Funding
Networks &
Platforms
Corporates run
accelerators PoC programs,
and similar; they sponsor
events to bring the
ecosystem together
services institutions can help
startups navigate regulation
-Corporates act as VCs
and do M&A
-Increase competition
for the best startups

38. AGENDA CORPORATE INNOVATION BEST PRACTICES

39. What are the Best Practices for Engaging with Startups?

40. 1) Build Credibility with Startups
2) De-risk Innovation Efforts (through achievable pilots, POC’s)
3) Set Specific & Achievable Objectives
4) Remove Red Tape, Barriers & Create a Fast-Track Process
5) Engage in a True Partnership
5 Best Practices to Give You an Edge on Startup Innovation
Source: 500 Startups Unlocking Innovation Report (http://go.500.co/unlockinginnovation)

41. Consider building innovation teams, empowering them…
…and letting them fail (and learn)