Electricity 2013 - Keynote Address

youthfulgleekingΔίκτυα και Επικοινωνίες

17 Φεβ 2014 (πριν από 3 χρόνια και 8 μήνες)

356 εμφανίσεις

© ABB Group
-

Introduction to ABB Technology Ventures


October 15, 2013 | Slide
1

Girish Nadkarni
-
ABB Technology Ventures

Electricity 2013
-

Keynote Address


www.abb.com/ventures

Jerusalem International Convention for Innovation & Business Development in Electricity and Energy

A global leader in power and automation technologies

Leading market positions in main businesses


© ABB Group

February 17, 2014

| Slide
2

Power
Products

Power
Systems

Discrete
Automation
and Motion

Process
Automation

$10.7 billion

36,000
employees

$7.9 billion

20,000
employees

$9.4 billion

29,000
employees

$8.2 billion

28,000

employees

(2012 revenues)

Low Voltage
Products

$6.6 billion

31,000

employees


Electricals, automation, controls
and instrumentation for power
generation and industrial
processes


Power transmission


Distribution solutions


Low
-
voltage products



Motors and drives


Intelligent building systems


Robots and robot systems


Services to improve customers
productivity and reliability


ABB’s portfolio covers:


145,000 employees in about 100 countries


$39 billion in revenue (2012)

MIT Technology Review

ABB Among Top 50 Disruptive Companies of 2013

February 17, 2014

| Slide
3

© ABB Group

Thompson Reuters

2013 Top 100 Global Innovators

February 17, 2014

| Slide
4

© ABB Group

ABB Technology Ventures Overview


ABB Technology Ventures (ATV)
is the corporate
venture capital arm
of
ABB


Goals:


Gain
access
to leading edge
technologies
and business models of strategic
interest to
ABB


Increase the pace of internal innovation


Profitably invest ABB’s assets


Began investing in
2010


Approx.
$150 million USD
deployed so far


16

investments to date:


13

investments into companies


3

investments as Limited Partners into other VC funds


3

investment professionals,
1
technologist and
1

intern


Technology/market due
diligence
and portfolio company
support

from
businesses, industry sectors and corporate research


Report into a Board consisting of CEO, CFO, CTO and 3 other EC members

© ABB Group
-

Introduction to ABB Technology Ventures

January 12, 2012 | Slide
5

Investment Criteria

© ABB Group
-

Introduction
to ABB Technology Ventures

January 12,
2012
| Slide
6


Target ~
4

deals per year (not including refinancings)


$1
-
$20 million USD
initial investment size


Stage and geography agnostic


Typically partner with leading financial VCs and/or other strategic investors


Indifferent to leading deal


Investment must meet traditional VC return requirements and have credible
strategic value to ABB:










Tight linkages with ABB business units and deep technical resources to ensure
additional value
-
add product pull
-
through and accelerated R&D

Financial


25%+ IRR


Returns commensurate with
early
-
stage business &
technology risk

Strategic


Exposure/learning for ABB


Hedging bets among competing
technologies


Pre
-
M&A (Cisco approach)


Support nascent markets (Intel approach)

Key Question


Would a financial VC invest?


Would ABB like to own this company or
be in this space in the future?

+

Why do we need a corporate venture capital group?

© ABB Group
-

Introduction to ABB Technology Ventures

January 12, 2012 | Slide
7

Teaching ABB businesses to be paranoid!!!

Smart Grid

Renewables

Cyber Security

Thousands of
Start
-
Ups

Emerging Technologies

Emerging Competitors

Proximity to
current market

Proximity to core
technology

High

Low

Low

Other Sectors with Overlapping Interests

80
CVCs formed in 2011!

Other CVC Groups

Why Corporates Invest in Startups


3 L’s

© ABB Group
-

Introduction to ABB Technology Ventures

January 12, 20121 | Slide
8

New technology

New market

New business
model

New technology

New market

New business
model

Current
technology

Current market

Current business
model

Leap

Not Mutually Exclusive

Leverage

Emerging Trends & Technologies from Different
Universe….


Internet of things/M2M Communication


Big Data


3D Printing


Transfer of technology from consumer to industry


Cloud Computing


Software defined Anything


Cyber crime


Mobile apps and applications (some countries leapfrogging PC based
internet, e.g. Kenya)


Frugal and local (contextual) innovation (Kenya, Brazil, India, China)


Social media


2 Way Communication (reputation, branding), Sourcing
(Über, AirBnB), Sharing (cars, bicycles, handbags, watches)


Crowd sourcing (there are people who are smarter or luckier)


Service Robots (vision, ease of programming, interaction with humans,
exoskeletons)


Autonomous cars


Biomimicry


learn from the master


Smart Cities


slowly but surely

Implications for:

1.
Product
development

2.
Business model

3.
Competition

4.
Disruption

…. But having long
-
term implications for ABB

Benefits of Working with a Corporate Investor

© ABB Group
-

Introduction to ABB Technology Ventures

January 12, 20121 | Slide
10

To Startups


Validation for
company and
products



Path to
commercialization
through financial
assistance and
industry knowledge



Market access

To VCs


Technology &
business model due
diligence



Access to, and
perspective on, new
markets and
geographies



Stimulate additional
interest in VC’s
portfolio companies

To Corporates


Expand portfolio of
customer offerings



Validate potentially
new technologies at
low cost



Insight into
companies for future
acquisition



Inspire additional
innovative thinking
across the
organization

Source: Partnering with Corporates, Cleantech Group Report

ABB Technology Ventures February 4, 2013 | Slide
11

Areas of Interest 2013

Priority in Declining Order


High Potentials for 2014


Urban Mining

Waste to Energy

el. Power + Heat + Recycling


G2L; P2G & P2L

Power to Gas & Liquid

Energy storage, Gas utilization

Smart City

Partly covered in other topics

supervision, optimization, control


Geothermal

and co
-
development


Sub Sea Technology

Oil/Gas

Unconventional O&G

Water treatment

LNG regasification

Active Search

Energy Efficiency

Industrial EE

Building EMS


Smart manufacturing

Connectivity, interface,



Predictive Maintenance

Service

Software



Micro
-
Grid

Distributed Generation


Home Automation

Multiple sensors,

convergence,

Demand Response


Lighting Technologies

Building and Industrial

applications



Discrete manufacturing

& Robotics

Intuitive & easy programming


Sector Strategy

to be prepared

Theme Based

Big Data

Applications beyond

Smart Grid

Internet of Things

Applications across BUs

Incl. “real time everything”

3D Printing

Products & spare parts

Next gen. manufacturing

Reports released

Solar PV

multi
-
function / BIPV

Residential

Solar BoS

(micro)
inverter


& power optimizer

Solar CPV

HCPV


Tidal energy

and co
-
development

of PTO



Wave energy

in synergy with APL &

far off
-
shore



Wind technologies

small wind /

distributed Generation



Discrete manufacturing

Smart manufacturing

connectivity, interface,


Renewables

Smart Grid

Energy Efficiency

Other High Potentials


Geothermal

and co
-
development



Micro Grid

Distributed Generation


DC Technologies

FCL, DC CB, LV


Cyber Security

software


Big Data

Applications beyond

Smart Grid

Energy Storage

utility scale

Demand Response

Partly covered in other topics


Energy Efficiency

compressed air systems,

building EMS


Home automation

multiple sensors,

convergence,


Internet of Things

M2M

(in
-
house study)



Waste heat recovery

advanced heat pump

small scale generation


Lighting Technologies

LED control,


Measuring

advanced sensors

Sensor,

Sub Sea Technology

Oil/Gas

Electric and oil separation


Power Electronic

Power Quality

inverter efficiency


3D Printing

(in
-
house study)


Data Center Cooling

incl. server and PCB cooling


P2G

Power to Gas

Energy storage, Gas utilization

High speed motion

motors and

components


Predictive Maintenance

Service

software


Smart City

Partly covered in other topics

No real company strategy

Actively investigating sector / companies

Passive search


few appealing targets

Decline unless exceptional

General Areas of Interest


Evaluated Regularly


Moving from opportunistic investing to theme and
sector driven investing




Energy
storage / utility scale battery technologies


Micro Inverter and Power Optimizer


Waste to Energy / Urban Mining


Lighting Control


industry overview


Waste Heat
Recovery


Wave and Tidal


Solar
CPV


Big
data


Internet of things


3D printing




Identify emerging sectors in conjunction with businesses and industry sectors


Conduct thorough analysis and mapping of targeted sector to identify best
technologies and investment targets


Study staffed by combination of ventures, business and research teams

Sector Studies Finished


© ABB

February 17, 2014

| Slide
14

Investments


1 of 2

1 = All amounts in millions unless noted

2 = PIPE

2

Company

Description

Amount
1

Board

Involvement

Co
-
Investors

Location

Deals listed in chronological order of initial ATV investment.

As of October 1, 2013

N/D

Brookfield, CT

USA

Direct current (DC) power supply
systems for the data center

4 seats

Oak Hill

7

Sold to
ABB
12/12

Status

Redwood City, CA

USA

Smart grid communications network
using self
-
forming, self
-
balancing,
and self
-
healing radio mesh

$20

Observer

GE, Investor Growth
Capital, VantagePoint,
MissionPoint, zouk

1

Active

Foxborough, MA

USA

Cyber security company with
applications for power systems,
automation, and control systems

$5

1 seat

Deep River Ventures

2

Active

Santa Clara, CA

USA

Data center automation and energy
efficiency management software

$9

Observer

DFJ, Point Judith, Good
Energies, Department of
Energy

3

Active

Rehovot

Israel

Advanced LIDAR technology for
remote sensing of wind vectors to
optimally align turbines

$3

Observer

Cedar Fund, Evergreen
Venture Partners, DFJ


4

Active

Edinburgh

UK

Marine energy conversion using
Oyster wave power technology

£18

2 seats

Sigma Capital, Royal
Academy of Engineering,
Scottish Enterprise, et al.


5

Active

San Francisco, CA

USA

6

Electric vehicle (EV) fast charging
technology

$19

2 seats

Public (NASDAQ: ECTY)

Asset
Sale


© ABB

February 17, 2014

| Slide
15

Investments


2 of 2

1 = All amounts in millions unless noted

Company

Description

Amount
1

Board

Involvement

Co
-
Investors

Location

Deals listed in chronological order of initial ATV investment.

As of October 1, 2013

Status

Fremont, CA

USA

Highly efficient concentrating
photovoltaic (CPV) solar systems

$20

2 seats

Oak Investment Partners

8

Asset
Sale

Tel Aviv

Israel

Cloud
-
based network monitoring
and leak detection software
platform for water utilities

$3

1 observer

Emerald Technology
Ventures, Gemini Israel
Funds, Giza Venture
Capital

9

Active

Orkney

UK

Advanced hydrokinetic device for
floating tidal streams and run
-
of
-
river applications

$8

2 seats

TOTAL, Fred Olsen

10

Active

Czech Republic

Technology park and Incubation
center focused on direct current
(DC) technology in the LV and MV
space


2

N/A

E.ON, Philips,

Alliance Federated Energy

11

Active

Zug

Switzerland

Technology + services company
focused on wind farm performance
through yaw alignment optimization


1

1 seat

Yellow & Blue Investment
Management,

b
-
to
-
v Partners AG

12

Active

Santa Clara, CA

USA

Electroadhesion technology for
robotics, material handling and
industrial automation

1 seat

Formation 8 and Nike

$1

13

Active

Beijing, China


© ABB

February 17, 2014

| Slide
16

Fund Investments

Fund Name

Representative

Investments

Location

Fund Size

Strategic
Focus

Founded

AUM

ET Solar

China Hydroelectric Corporation (CHC)

Haiyuan Group

Neo
-
Neon

NetPower

China Sunergy

LDK

$271MM USD

2001

Targeting investments in cleantech
companies in China or those having a
nexus to China with a mix of earlier stage
to expansion stage companies

China Environment Fund IV (CEF IV)

$350MM USD

Managing Partner

Don Ye

Zurich, CH / Toronto, Canada

TaKaDu
1

Evergreen Solar (Nasdaq: ESLR)

Pemeas (acquired by BASF)

RuggedCom (TSX:RCM)

River Basin Energy

Synapsense

Xunlight


300MM

Targeting

4
-
10MM investments in
early and expansion stage cleantech
companies in Europe and North
America

2000

Emerald Cleantech Fund III


100MM target (

25MM first close)

Gina Domanig

1
ABB Technology Ventures co
-
investment

Juno Beach, Florida USA

2012

ClearSky Power & Technology Fund

Alex Weiss

New fund, sponsored by NextEra Energy


$350MM target

Strategic fund for NextEra Energy


Targeting late/growth stage equity
investments in renewable energy
generation, smart grid, energy
efficiency, energy storage and air &
environment

iControl

Clean Energy Finance

Other undisclosed investments

ATV Team

Girish

Nadkarni

President,

ABB Technology Ventures

Kurt
Kaltenegger

Head of Technology

Andrew Tang

Managing Director


8 yrs. at ABB; prev. responsible for ABB’s global cost
migration program and ran global automotive business
for the Robotics Division as Sr. Vice President


Prior: EIR, View Group; President & CEO,
vSimplify
;
Mgr., Corp. Dev., GE; GE Capital; Prudential Capital


Nominated as one of the top 100 global corporate
venture capitalists


20 yr. ABB veteran;
fmr
. head of high voltage circuit
breaker development; global medium voltage products
BU technology manager


Director of Research Center in China (Beijing) and CTO
for ABB CN; more than 30 patents


10+ yrs. VC experience; founding Managing Director at
DFJ
DragonFund
; exits include
Broadbus

(MOT),
Zettacom

(IDTI), and
NuTool

(ASMI)


Prior: Partner, Infineon Ventures; Credit Suisse First
Boston (investment banking); Intel and
Motorola


MBA, Harvard


LL.M., UVA


LL.B., University of Mumbai


B.Com
, University of Mumbai


PhD,
Montanistic

U.
Leoben

(solid state physics &
superconductivity)


MSc, Karl
-
Franzens

University Graz


MBA, Wharton


MSEE, MIT


BSEE, UT Austin



© ABB

February 17, 2014

| Slide
17

Grant Allen

Senior Vice President


Formerly VP at Core Capital Partners

($350MM
Washington, DC fund focused on enterprise software)


Notable deals: TaKaDu, Validus,
Valen

Technologies


Prior: Microsoft Corp., Liberty Associated Partners (VC),
Dean & Company (mgmt. consulting), 3 start
-
ups



MBA, Wharton


BSE, Duke

Zurich

Zurich

Palo Alto, CA

Washington, DC

How to Work with a Corporate VC


Find companies which have in interest in your space


Educate yourself about their strategy and priorities


Approach their corporate venture group


Helpful but not
critical that it be through a common connection


In your presentation:


Show how your technology will help them strategically


Discuss the type of support you expect from them other
than money


If a deal develops, ensure that there is buy
-
in from the
relevant business unit

© ABB Group
-

Introduction to ABB Technology Ventures

January 12, 20121 | Slide
18

© ABB Group 091023
-

Introduction to ABB Technology Ventures

November 1, 2011 | Slide
19

© ABB Group 091111
-

ATV Investment Strategy & Policy

February 17, 2014

| Slide
19