http://idcee.org/p/igor-taber-intel-capital/ Igor Taber is a Director at Intel Capital’s Moscow office. He joined Intel Capital in 2008 to reestablish Intel Capital presence in the region. He focuses on investments in consumer internet, ecommerce, enterprise software, mobile and digital media in Russia and CIS countries. He has invested and serves on the boards as observer or director of kupiVIP (ecommerce), Ozon (ecommerce), Altergeo (mobile) ,DeNovo (enterprise data center and cloud provider), Rock Flow Dynamics (enterprise software). He also invested and served on the board of Sapato (online footwear retail) before it was acquired by Ozon. Igor serves on the Board of Russia Venture Capital Association. Igor joined Intel in 2001 and worked in US, German and Russian offices in number of operations, product management and business development roles. Prior to Intel Capital, Igor was Director for Business Development in Intel WiMAX Group where he led deal structuring and negotiations with Sprint Nextel which resulted in Sprint’s initial commitment to WiMAX for its 4G network. He was also Chief of Staff to VP and GM of Intel WiMAX group. Early in his career he was in product management defining Intel next generation optical and communication products. Pic's are here: http://www.flickr.com/photos/idcee/sets/ More @ http://idcee.org Follow us on: YouTube: http://www.youtube.com/user/OfficialIDCEEChannel Facebook: https://www.facebook.com/IDCEE Linkedin: http://www.linkedin.com/groups/IDCEE-3940138 Twitter: https://twitter.com/idcee_eu Google+: http://gplus.to/idcee Flickr: http://www.flickr.com/photos/idcee/collections/

1. Intel
Capital
Investing in Tech
Startups in CEE
Investing in Global
Innovation
Igor Taber
Investment Director
Intel Capital Russia CIS
11 Oct 2013

2. Global Investment Footprint
$10.8 billion+ in 1276 Companies across 54 Countries
Intel Capital Invested
Intel Offices and Intel Capital
Invested
Intel Capital is a stage agnostic, long term, active TMT investor
$500m China Technology Fund II
$250m India Technology Fund
$50m Brazil Technology Fund
$50m Middle East and Turkey Fund

3. Intel Capital Facts in CEE/Russia(CIS)
First Investment: 1999/2002
Exits: 14/4
Number of
Investments:
Last Two Years:
28/13
9
deals
Capital Deployed:
50%
of capital
Intel Capital is one of the largest and most
active VC investors in CEE

4. Investing in CEE
WRONG
CONSENSUS
NO CONSENSUS
RIGHT
?
√

5. Key Things to Consider
•
•
•
•
•
•
Deal Flow
Cash
Board
Add Value
Management
Local vs Global

6. Deal Flow
•
•
Quality/proprietary deal flow is the KEY
Few companies everyone knows –
•
•
•
•
Many companies no one knows
•
•
•
•
•
Expensive
Hype vs Reality
A lots of capital
Usually bootstrapped and profitable and founder managed
Hard to effectively communicate with investors/pitch
Governance is a challenge
Seed vs Series A – no clear line
Local presence is essential

7. Cash availability
• Growth comes with cash availability
• Follow-on cash is hard”ER” to get
• Only 8 growth/expansion deals in Q2
• Ensure longer runways vs optimizing for
dilution
• Lack of cash will lead investors to unnatural
decision making
• Co-invest with parties that are able to
continue funding the business plan

8. Active Board Participation
• Take board seats; drive for balanced
board/decision making
• Boards in CEE often lack
•
•
•
Strategic vision
Financial acumen
Founders often lack effective board experience
• Don’t try to run the business
• Independents
•
•
•
•
Mixed bag
Window Dressing vs Value Add
No to “professional board members”
Yes to Operators who can add value to the CEO

9. Value Add
• Know when to Lean in/Lean back
• Introductions
• Ex: Intel Technology Days; Intel Global
Summit; other port-cos
• Future rounds/Exits
• Exit opportunities are limited (for now). #1
player in the segment will generate premium
• Just like “tomatos”
•
9
Brand name investors are key

10. Management/Founders
• Evaluate/benchmark vis-à-vis local market and not
the world (unless competing globally)
• Exit alignment
• Serious shortage of management talent –
•
•
don’t assume you can easily replace founder CEO
post investment – VERY hard to do
If you don’t think current management can run the
company for next 3 years – don’t invest
• However, make tough decisions sooner rather
then later
1

11. Think Globally, Act Locally!
• Only consider GO Global (US), when:
•
•
You are in enterprise/ B2B segment or you reached
$50M in revenue in B2C and you are not in Consumer
Internet
You are able to attract talent in US that
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•
•
•
•
PERFECT cultural fit between him/her and local team.
Preferably as VP of Sales and Marketing (not a CEO)
Ideally founders (including technical) are able to move
No language barriers with local team
Clearly differentiated/disruptive solution (cost base
is not a differentiator)
• Otherwise – focus, focus, focus!
1

12. About Intel Capital

13. Consistent Investor
2012
$352
M
32
57
Historical
1,276
Deals
$10.8
B
* Number Includes New and Follow-on Deals
54
37
7
New Deals
Outside N.America
% Dollars
Outside N. America
Countries
% Dollars
Outside N. America
28
IPOS
Acquired
201
IPOS
317 Acquired
Data as of Dec. 30, 2012

14. 2012 Exits
35 portfolio companies exited in 2012: 28 via M&A & 7 via IPOs
*Other marks and brands are property of their respective owners

15. Supporting the portfolio
• Work with the Intel business units to get on stage demos for:
•
•
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Intel events such as IDF (Intel Developer Forum)
External events with Intel presence: such as CES (Las Vegas),
Computex (Taipei), MWC (Barcelona), E3 (Electronic Entertainment
Expo, LA), CEBIT
Various chairs of working groups
• Invite to Intel Capital events such as:
•
•
•
•
Silicon Valley VC events
Consumer Board of Advisor meeting
Enterprise Board of Advisor meeting
Intel Capital Global Summit
• Intel and Intel Capital Public Relations support

16. Supporting the portfolio - at a glance
4000 pieces of coverage for recent Global Summit

17. Unleashing the Power of Partnership
Regular, targeted meetings between Intel Capital portfolio companies
and the right decision makers drawn from Intel’s relationships with
suppliers, partners and customers
•
•
•
3500+ engagements between portfolio companies & customers in 2012
1800+ Intel Capital Global Summit Connect meetings
76 Intel Capital Technology Days resulting in 1700+ introductions

18. Intel Capital Technology Days
Connect with the right decision makers at the right companies
And an additional 100+
Global 2000 Brands…
*Other marks and brands are property of their respective owners