Reinventure speech - PwC event - slideshare
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The document discusses the evolution of corporate venture capital, specifically through the lens of Reinventure and Westpac's strategies. It highlights the importance of addressing disruption in the banking sector and identifies various opportunities in AI-driven finance, crowdfunding, and risk-based lending. The findings suggest that local disruptors can have significant advantages due to regulatory barriers and local market networks.
Reinventure speech - PwC event - slideshare
- 1. Danny Gilligan@dannygilligan Simon Cant@simoncant Rohen Sood @rohensood13 www.reinventure.com.au Corporate Venture Capital December 2014
- 2. 2 What we drew from media: Killing Fairfax Corp. investment horizon Venture investment horizon Years Return 01234567 Sustaining innovation more attractive near term Disruptive innovation attractive long term Internal Innovation (FXJ classies): failed VC model (PBL+SEEK, NEWS+REA): succeeded •Internal business units •Over invest in startup (citysearch) •Under invest in growth •Stifled by fear of cannibalization •Led by salaried execs •Separate ventures •Limited initial investment •Follow-on raisings/reinvest profits •Corporate funder drove synergies •Entrepreneurs on sweat equity Source: Reinventure
- 3. 3 The Reinventuremodel: Corporate VC 2.0 Committed fund Independent Management Minority investments Proven entrepreneurs Invest where WBC can add value Local plays & fast follows •Long term commitment to addressing disruption by Westpac •Longer horizon than Westpac •Experienced venture managers •Venture access to external capital •Diversity/double down on winners •100% higher success rate •Prepared to share risk •Potential disruption of core profit pools -create options to diversify •Spot disruptive innovations early and leverage local advantages Fund structure Fund strategy Source: Reinventure
- 4. 4 Where we see opportunity: unbundling banking Ubiquitous Data Technology Driven Networks Artificial Intelligence Savings & spending e.g. Wealth management e.g. P2P lending e.g. Crowdfunding e.g. Payment platforms e.g. Risk priced insurance e.g. Source: Reinventure Risk based lending e.g.
- 5. 5 Australian Media Revenues 2013 Why we think local opportunities matter Local disruptors Global disruptors Involve local barriers to entry e.g. •Sales force on the ground •Regulation •Or local network effects e.g. •Cars, houses, jobs Global economies of scale e.g. •Amazon web services Or global network effects e.g. •Adwords Flow-on benefits … Flow-on benefits … •$7M tax in AU in 2014 Source: Reinventure, IBIS world Newspapers, 15.40% OOH, 5.40% Radio, 8.90% STV, 4.30% Magazines, 3.90% Internet, 29.80% FTA, 31.30% •Execs have started up next generation of ventures •Angels/VCs (Squarepeg, Constant Innovation) 47%or $1.74B 20% or $750M $12.3b