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Gerald Brady. Managing Director Silicon Valley Bank. Banking the Innovation Economy. Our Mission:. To increase our clients’ probability of success. Build Deep Relationships Give Advice Make It Easy to Do Business with Us Solve Problems. Vision.
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Gerald Brady Managing Director Silicon Valley Bank
Our Mission: To increase our clients’probability of success Build Deep Relationships Give Advice Make It Easy to Do Business with Us Solve Problems
Vision To be the premier provider of financial services and thought leadership to innovation companies, of all sizes, and their investors, world-wide 5
Differentiated Focus on “innovation” markets Mainly balance sheet lender Strong deposit franchise Diversified revenue streams Global reach
Leader • THE bank for innovation companies • More than 600 venture/ PE firm clients • Global reputation
Established • 30 years of supporting innovation • 26 U.S. and 7 international offices • $20.0 billion in total assets • $35.5 billion in total client funds
We work with start-ups to global corportions ~50% Market Share <15% Market Share <10% Market Share
Innovation: Macro-themes 2008-2010: Developed economies slow down / corporate growth impacted Company EPS maintained through RIFs, operational excellence programs and increased productivity – little or no focus on innovation The pace of innovation continues to accelerate – largely driven by start-ups Corporates have more cash on their balance sheet than at any other time Established leaders stumble - i.e. Nokia, Microsoft, Pfizer etc
The CEO’s agenda – looking beyond 2012 Technology impact and business model shift across all industries Technology driven disruption of existing supply chains Non-traditional alliances & partnerships accelerate i.e. GE & Google, P&G & Inverness Chinese corporatesgo from local to regional to global champions Innovation becomes driver for competiveness
Innovation is back on the CEO’s agenda Capital market stabilization results in investors shifting focus from cost management to growth: - “where is long-term revenue growth going to coming from?” Innovation returns to the CEO agenda – as a driver of growth Increasingly, corporate venturing goes beyond “open innovation” to include: - Internal & external innovation initiatives - Corporate ventures - Licensing - Partnering - JVs - M&A
CVC is different this time Traditional Corporate Innovation The new model for corporate innovation Greater external focus Internally focused Separated from CVC / Strategy • Innovation partnering CEO / CTO / Chief Innovation Officer led Driven by R&D Outcome driven Cost not outcome focused Evolution NOT Revolution Open to cannibalization
The corporate ecosystem: growth is driving the need for innovation Disney, Hearst, News Corp, WB BMW, GM, Honda, VW Amazon, eBay, Google Cisco, Juniper, Huawei, Mot Glaxo, Pfizer, Roche, Takeda Allianz, Citi, CS, Hartford, Visa Pepsi, Coke, Gen Mills, Nestle Adobe, IBM, MSoft, SAP Best Buy, Ikea, P&G, Unilever App Mat, Arm, Intel, Nat Semi ABB, HON, GE, Siemens, Vestas
Corporate innovation intersects all company stages Mature M&APartneringDistribution Venture Portfolio:Segmentation bycompany stage Corporate Innovation Growth Disruptive trends, white spaces& roadmaps Start-ups
SVB’s role: At the center of the innovation economy SVB’s Role • Positioned like Switzerland • Neutral about: - Investors - Location - Stage - Sector • Able to connect: • Corporate CompaniesCorporate VCsCorporate Corporate