We provide up to $1M seed fund to accelerate core technology startups. We’ll match your early stage company with strategic partners in your field. We provide the legal and financial support as well as the business tools to ensure your idea emerges market-ready. We prepare your venture for a successful exit. You focus on developing your dream.

1. INNOVATION ACCELERATOR
An SKTA Innopartners’ White Paper
August 19, 2014

3. 3SKTA Innopartners Innovation Accelerator
Executive summary
SKTA Innopartners Innovation Accelerator is a core tech-
nology focused startup incubator and a seed fund backed
by SK Telecom targeting Information and Communication
Technologies, which we call, core technologies.
A primary differentiator, to similar seed funds and incubators,
is the match we provide at the very onset between startups
and an industry leader (i.e. Strategic Partner). Through the
Partnership, we mitigate the down-side risk of seed-stage
investment, shorten the development period, and maximize
the success rate of startups.
Our process is straightforward. Innovative entrepreneurs or
startups present their technology concept. Then, we seek a
Strategic Partner with interest in the proposed technology.
If we make a match, we invite the startup to join us in the
Accelerator.
Selected startups are granted:
• Funding up to $1MM and professional guidance
through the initial phase of operation
• Secure and dedicated space in our state-of-the-art,
Silicon Valley facility
• Professional services(e.g. project management, IT, HR)
• Favorable rates for accounting and legal services from
top firms
• Access and routine collaboration with mentors at a
Strategic Partner and affiliated VCs
• Assistance preparing for Series A financing round and
introductions to top tier VCs
During incubation, the startup is free to remain laser focused
on product development throughout the typical 12 month
incubation phase. The startup’s goal, in this phase, is to get
from concept to proof-of-concept. Proof-of-concept is rou-
tinely required for professional investors to provide funding.
Our novel model addresses the dwindling investment eco-
system for core technology startups. We create a win-win-
win for Startups, Strategic Partners, and Venture Capitalists.
Startups receive the necessary funding to jump-start their
development. Strategic Partners get early access to “tai-
lor-made” innovations in a cost effective manner and in a
shortened time-to-market environment. Venture Capitalists
receive lower-risk investment opportunities with a higher
velocity of capital.
Terms and definitions
Strategic Partner An industry leading company interested in potentially investing in or acquiring the
startup when it matures. Alignment with a Strategic Partner must be beneficial for the
ecosystem of SK Telecom or affiliated SK entities.
Fundamental technologies, such as semiconductor, hardware and enterprise software.
Foundational technologies, primarily targeted at the Business-to-Business market seg-
ments.
Core Technology
The seed fund and accelerator operated by SKTA Innopartners LLC, a wholly owned
subsidiary of SK Telecom Americas.
Innovation Accelerator

4. 4 SKTA Innopartners Innovation Accelerator © 2014 SKTA Innopartners LLC. All rights reserved.
The Accelerator is focused on bringing the most innovative and inspiring concepts in core technology to life. Fundamen-
tally, the Accelerator exists to reinvigorate the funding ecosystem in core technology startups. More specific examples of
subject matter eligible for funding by the Accelerator include:
Areas of Interest
Big Data-Related Technologies
(E.g. Distributed Processing & Analytics)
Virtualization Technologies
(E.g. Cloud Management, Software-Defined Network, &
Software-Defined Data Center)
Location-Based Technologies
(E.g. Indoor Positioning, GPS)
Beyond LTE-A
(E.g. Small Cell, Network Virtualization, Crowd Sourcing
Technologies, LTE Direct, Proximity Awareness)
Ultra-low power technologies
(E.g. Low power RF, Low power image sensor)
User Interface technologies
(E.g. Gesture Recognition, new touch technologies,
multi-modal input)
Robotics & Self-Driving Cars
(E.g. Vision technology, connected car, machine learning)
Internet of Things
(E.g. Wearables, smart home, smart retail & analytics)
Diagnostic Devices and Analytics
OMICS Analytics and Modeling
DNA Sequencing
SEMICONDUCTOR & SYSTEMS
TELECOM, ENTERPRISE & DATACENTER SMART DEVICE RELATED
HEALTHCARE DEVICES & BIOINFORMATICS
Memory Solutions
(E.g. eSSD, Flash Array, Memory/New Memory Controller,
Hybrid Memory Solutions like NVDIMM)
Storage Management
(E.g. Efficiency Increase*, Data Backup, Object Storage, High
Availability, Operating & Management)
*Efficiency Increase - Caching, Data Compression/Deduplica-
tion
High Speed I/O
Power Management
Sensors
(E.g. CMOS-based compound sensor chip)
Advanced Materials
(E.g. GaN/SiC, nanomaterials and processes)
Memory Materials
(E.g. GST, MTJ)

5. 5SKTA Innopartners Innovation Accelerator
Problem Statement
Using the semiconductor sector, as a proxy for core tech-
nologies as a whole, provides insights regarding the fund-
ing ecosystem. The relentless adherence to Moore’s Law
led to the consolidation of the semiconductor market. As
geometries shrink to the atomic scale, the cost of Research
& Development climbs astronomically under constant price
pressures. The barriers to entry in this ruthless ecosystem
grow larger each day.
One barrier is access to capital for entrepreneurs. As Venture
Capitalists increase funding in consumer apps and similar
trendy domains, they decrease funding for core technology.
In 2004, 41 new nanotech startups were funded. By 2013,
that number had plummeted to 3 newly formed startups.
Conversely, the IoT and Wearable domains are experienc-
ing a buyers’ market with VCs competing to fund the
next Nest. For this trend to continue, the network
and datacenter infrastructure will have to be
raised and rebuilt on an architecture tailored
to the heterogeneous nature and the sheer
volume of diverse data.
Traditional Venture Model
The traditional Venture Capital model requires myriad invest-
ments across a multitude of startups. One win, defined as a
10x or more return in 5 years, compensates for the 50-70%
failure rate among a VC’s startup portfolio.
Moreover, as the period to qualify and validate new technol-
ogies pushes out, the time-to-money for VC’s increases in
direct proportion. Generally accepted timeframes for a new
semiconductor design to get from concept through commer-
cialization is approximately 8 to 10 years and requires tens
of millions of investment dollars.
A Venture Capitalist realizes a gain when the startup goes
public or is acquired. IPOs of core technology companies
have been sparse in recent history. Similarly, acquisitions
have dwindled as a simple function of supply and demand for
core technology startups. Moreover, as geometries shrink,
the R&D costs and time-to-market climb. The higher cost to
enter further decreases the investment community’s
appetite to invest in core technologies.
With fewer, higher-cost investment opportuni-
ties available to VCs coupled with limited exit
opportunities, it’s not surprising that venture
funding is flowing into other market segments.
2SEMICONDUCTOR
startups received funding
in 2012

6. 6 SKTA Innopartners Innovation Accelerator © 2014 SKTA Innopartners LLC. All rights reserved.
Innovation Accelerator Model
While Venture Capitalists may shy away from investing in
core technology, the next inflection point driven by wear-
ables, IoT, IoE, etc. necessitates innovation. Breakthroughs
and discoveries in core technologies are the lifeblood of the
connected world. The Accelerator breathes new life into
a failing ecosystem benefiting entrepreneurs, established
industry leaders, and investors.
The Accelerator provides up to $1 million of seed funding,
professional services, and state-of-the-art facilities. The
funding is intended to get the startup from concept to proof-
of-concept, thereby allowing the startup to raise a Series A
round.
Selecting the Startups
There are two ways by which startups are sourced for inclu-
sion in the Accelerator. In limited cases, a Strategic Partner
(SP) requests a specific innovative product. The Accelera-
tor recruits and assembles a team capable and interested
in developing the product. More often, however, a startup
submits an investment proposal to the Accelerator who then
seeks to make a match with a Strategic Partner. The Strategic
Partner network includes both SK affiliates as well as other
industry leaders who have committed to this model.
A Strategic Partner is defined as an industry leadering
company willing to invest at the seed stage and interested
in potentially aquiring the startup when it matures. Seed
investment is comprised of both working capital and in-kind
services designed to accelerate the startups development to
help ensure the startups success at Series A. Alignment with
a Strategic Partner must be beneficial for the ecosystem of
SK Telecom or affiliated SK entities.
Projects are evaluated based on strategic fit with the Strate-
gic Partner, technological impact, potential financial returns,
and likelihood of success. Selection is made by the Innova-
tion Committee comprised of the Head of the Accelerator,
the Strategic Partner’s key decision maker (e.g. CEO/CTO/
CSO), and a VC General Partner (if needed).
Invitation to the Accelerator
The initial seed funding ranges up to $1 million provided to
the company in the form of a promissory note. The Strate-
gic Partner may also wish to participate financially. In some
instances, the seed round may be syndicated barring any
competitive conflicts.
The seed funding is to be used as working capital, along with
the professional services, state-of-the-art facilities and tools:
• Separate & dedicated fully furnished office space
with secure access
• Independent wired/wireline LAN with broadband
Internet access (100Mbps+)
• Shared conference rooms, a training room, a lab
with rackspace, a media room, a kitchen with
breakfast bar & snacks, and a receptionist
• Preferred pricing on legal counseling , accounting
and finance
• Recruiting, and IT (e.g. phone, fax, printers, Cisco/
Polycom video conferencing systems)
Development & Next Round Funding Support
Business plan development – experienced business devel-
opment professionals work with startups to create a solid
business plan and pitch deck designed to be appealing to
both Strategic Partners and VCs
Program management – veteran program managers assist
startups to develop project plans ensuring milestones and
objectives are met
Access to VCs – formal introductions to SKTA’s internal VC
and other affiliated top tier VCs to secure Series A funding
Technical and Marketing Resources – Strategic Partners
commit to provide startups with additional funding, the
latest customer and market intelligence, in-kind services,
related IPs (as required and negotiated), and mentorship

7. 7SKTA Innopartners Innovation Accelerator
Seed Phase Operation
During the Seed Phase of operation, the startup, together
with the support team at the Accelerator and Strategic Part-
ner, develops the product, business plan, milestones and
metrics to produce the proof-of-concept required by Series
A investors. During this phase, the startup also files patents,
conducts necessary simulations, collects and analyzes data
and builds and tests prototypes.
The Seed Phase lasts for 6 to 12 months. At the conclusion
of this phase, the startup raises a Series A round.
Startup Phase Operation
After receiving Series A financing, the startup continues to
develop the technology in its own facility, outside of the
Accelerator, to accommodate the expected headcount
growth. During the Startup Phase, the startup will be on one
of two paths: Spin-In or Traditional. The path is determined
during the Series A negotiations by collaboration among the
Startup, investors, and the Strategic Partner.
The preferred path for the startups is to proceed down the
Spin-In Path where the ultimate objective is for the Strategic
Partner to acquire the startup within 3 years.
Spin-In Path
The Series A funding for a company on the Spin-in Path
should carry the startup to its exit. The Spin-In Path is time
bound with an expectation of 2 to 3 years. There are a few
options on how the exit valuation will be handled and what
would constitute an acquisition trigger.
For example, prior to proceeding on the Spin-In path, the
startup, strategic partner, and investors negotiate not only
the Series A funding, but also the exit valuation range for a
Call Option or, alternatively, a Right of First Refusal (ROFR).
The exit valuation range is based on milestones achieved
during the Startup Phase.
The alternative ROFR allows, the Strategic Partner to match
acquisition bids for a specified period of time.
With the Call Option and ROFR both being time bound, the
Startup has no commitment to the Strategic Partner beyond
that time.
To be clear, the Call Option and ROFR are but two examples
of the type of arrangements that can be negotiated along
with Series A financing. Others include: commerical agree-
ments, branding, exclusivities, and licenses.
Traditional Path
On the Traditional Path, no exit valuation range is pre-ne-
gotiated. The Strategic Partner and startup have no special
rights or obligations. Typical time to exit is between 5 and
8 years. Put simply, this path follows the traditional venture
capital model where Venture Capital firm(s) continue to fund
according to the milestones met and customer traction real-
ized. The ultimate objective, for venture backed startups, is
to be acquired (M&A) or go public (IPO).
How the Model Works
EXIT PATHS
1. Spin-In: Acquisition by the Strategic Partner
2. Traditional: Funding from traditional capital
sources with M&A or IPO as typical exits
Stage 1: Seeding Stage 2: Startup Stage 3: Scale up
Startup
Formation
Create a
focused startup
through
collaboration
Strategic Partner
Innopartners
Entrepreneurs
VC
Continued focus on
product development
Startup
+
R&D
Spin-In
Acquired by SP
M&A or IPO

8. 8 SKTA Innopartners Innovation Accelerator © 2014 SKTA Innopartners LLC. All rights reserved.
The Innovation Accelerator model works because it offers
something that does not exist in the current startup funding
ecosystem – providing benefits to entrepreneurs, strategic
partners, and venture capitalists.
Entrepreneurs
Given the lack of funding flowing to core technology start-
ups, entrepreneurs have the most to gain. Not only do they
receive funding, but they also receive additional benefits.
First, entrepreneurs receive professional services, space in
state-of-the-art facilities and necessary development tools.
Entrepreneurs focus their time and energy on product devel-
opment rather than necessary, but unproductive, activities
associated with setting up a new company.
Second, prior to being invited to join the accelerator, a Stra-
tegic Partner (an industry leading company), commits to pro-
vide additional funding, technical/marketing assistance and
in-kind services to the Startup. The Strategic Partners’ role
is to assure their sponsored Startup is working on the mini-
mum viable product and targeting the right market segment.
Third, entrepreneurs may be offered a de-risked exit path
through a Call Option with a set exit valuation range for
completing the milestones negotiated prior to beginning
the Series-A phase after graduating from the Accelerator.
Alternatively, the entrepreneurs may negotiate a Right of
First Refusal to increase the Series A funding they receive or
other in-kind services. Many other de-risking agreements are
possible: these are but two examples that may be provided
to Startups participating in the Spin-In Path.
For startups acquired from the Spin-In Path, the entrepre-
neurs will likely continue leading and growing the business
at the Strategic Partner.
Strategic Partners
The benefits to Strategic Partners are both nuanced and
quantitative. At the most nuanced extreme, reinvigorat-
ing core technology startup innovation benefits the entire
industry. More specifically, the ability to secure “custom-tai-
lored” innovative technologies in a low-cost, compressed
time-to-market model provides a competitive advantage and
quantifiable benefits in time saved and profits earned. Even
if the Strategic Partner ultimately elects not to acquire, the
potential exists for that startup to dramatically influence the
industry to the Strategic Partner’s benefit and financial gain.
Venture Capitalists
The Innovation Accelerator model offers venture capitalists
access to significantly de-risked deals and faster returns on
those deals. Typical venture investment is approximately 5
to 8 years for core technology startups. The Spin-In Path
is a mere 2 to 3 years and is significantly de-risked, thanks
to the efforts of the Strategic Partner and influence of
Innopartners. Therefore, the velocity of capital with short-
ened time-to-exit provide for healthy returns in-line with
LP expectations.
Strategic Rationale
The SKTA Innopartners’ Innovation Accelerator con-
cept is a revolutionary way to fund and accelerate
core technology development. Entrepreneurs focus
100% of their time and energy on product develop-
ment and may receive a guaranteed exit valuation
range as a reward. Strategic Partners may secure the
option to acquire tailor made startups on an acceler-
ated development timeline with low up-front costs.
Similarly, Venture Capitalists get access to lower risk
investment opportunities with a shortened time-to-
money.
SUMMARY

9. 9SKTA Innopartners Innovation Accelerator
Social & Education Programs
Mixers (Monthly) - Monthly Mixers offer heavy appetiz-
ers, soft drinks and beer for a fun and socializing time. Our
mentors and advisors are invited to join us because the best
conversations happen in more informal settings.
Birthday Celebrations (Monthly) - Once a month, we cele-
brate people who were born that month. Join us for a time
of cake and socializing.
Lunch and Learn (Quarterly) - We know how important it is
to make the best use of your time. That is why we have lunch
and learn sessions. These informal sessions take place once
a month at lunch so we can eat together while gaining valu-
able knowledge. During these sessions, startups may pres-
ent their technology or product and receive feedback from
other entrepreneurs. Alternatively, the Accelerator team and
industry veterans lead discussions on startup funding, indus-
try trends, pitch development, business plan development,
and other topics of interest.
Conferences/Seminars (Monthly) - Knowledge is power.
Once a month we invite our attorney bench, accountant
bench, expert bench, and others to make formal presenta-
tions and answer your questions on relevant topics.
Meetups (Quarterly) - We host Meetups at the Acceler-
ator for ecosystem building with VCs, entrepreneurs, and
industry leaders.
Demo Days (Annual) - Demo Days provide a platform for
our portfolio startups to pitch on a voluntary basis. We invite
advisors, interested VCs, Strategic Partners, and other resi-
dent entrepreneurs to provide feedback allowing the startup
to gauge readiness for Series A fund raising and the indus-
try’s interest in their technology.
Mentorship (Ad Hoc) - Dedicated mentors with decades of
experience guide startups and entrepreneurs on the path
to success. We align our mentors’ expertise and the start-
ups needs. A Startups participation is purely voluntary and
completely free.
Tailgates (Ad Hoc) - Who doesn’t like a little rivalry in sports?
For select sporting events, we organize a pre-game “tailgate”
followed by a game watch on the bigger than big screen in
the training room.

10. 10 SKTA Innopartners Innovation Accelerator © 2014 SKTA Innopartners LLC. All rights reserved.
Advisors

11. 11SKTA Innopartners Innovation Accelerator
Innopartners relies on the following entities to ensure the Innovation Accelerator excels in every facet from selecting the
entrepreneurs to fund to accelerating the startups.
Friends & Partners