Key trends for international tech startups and corporations in 2020. Part of a presentation to Confindustria in November 2019 in San Francisco.

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Coming to Tech’s Mecca
Key trends for international tech startups and corporations in 2019.
Confindustria Meeting
San Francisco, November 7, 2019

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A bit about me
• 20+ years in Software, Technology & Consulting
• 15+ years in Silicon Valley
• Corporate & Startup Experience
• Engineer & MBA
1996 1998 2003 2005 2014
2012200420001997
“Startup
Phase”

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What we do
First, we help technology companies expand in
Silicon Valley & global markets.
Second, we help R&D, Innovation, Corp Dev and
M&A executives scout high-value innovations.

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SV provides an exit path for global
technology companies
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The “dual” company strategy
Rossi SpA
Rossi Inc
Investors
IP / Patents
Proprietary Tech
Trademarks
Customer contracts
• R&D
• Engineering
• CEO
• Marketing
• Sales

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From startup in Italy, to market entry, to exit
Neptuny launches
Caplan
Caplan enters
Gartner Magic Quadrant
Neptuny becomes
Gartner customer
Expedia shows
interest in Caplan
Caplan wins first
EU customers
Expedia becomes
1st US customer
Neptuny secures
Expedia’s reference
Home Depot becomes
2nd US customer

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SV is now a corporate playground
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Corporate presence in SV is accelerating
Source: Mind the Bridge

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Corporate VC has never been bigger or more active
Source: CB Insight

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Companies are investing in
technology scouting
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After decades taking a passive stance…
Corporate R&D/NPD/NBDInnovation Ecosystem
Wearables
Machine
Learning
AI
Sensors
Big Data
Big DataAV/VR
3D
PrintingIoT
Mobility
Analytics
Robotics
Cybersecurity
OpenInnovation
FrontOffice
VCs & IBs
Hackathons
Accelerators
Challenges

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With intrinsic problems…
• Slow process
• “Horse-in-the-race” problem
• Local ecosystems reach
• Low quality deal flow

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Corporations are now active seekers of startups…
Innovation Ecosystem Corporate R&D/NPD/NBD
OpenInnovation
FrontOffice
Scouting
Wearables
Machine
Learning
AI
Sensors
Big Data
Big DataAV/VR
3D
PrintingIoT
Mobility
Analytics
Robotics
Cybersecurity

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Which creates better outcomes.
• Aligned with strategy
• Global ecosystem
• Fast, focused process
• High-quality deal flow

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Cross-border digital M&A is
growing
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Tech is now the main M&A driver
“Acquiring technology assets
now ranks number one as a
strategic driver of M&A deals.
In 2018, 20% cite the acquisition
of technology assets as the
principal reason behind deals, up
from 6% in the spring of 2016.”
Source: The state of the deal M&A trends 2018, Deloitte

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Digital M&A is happening in all industries
Connectivity Platform Real-time Location Digital Concierge Consumer Analytics Sales Apps Infotainment Consumer Analytics
Augmented Reality Pet-owner Community Digital Car Rental Cloud Security Last-mile Delivery Ticket Sales Autonomous Systems

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500+ Digital M&A Deals in 2019
6%
10%
27%
56%
USA
Europe
Asia
ROW
Source data: Crunchbase, CB Insights, MarketLine, FireMatter proprietary research.
Digital M&A is the
acquisition of a “digital”
startup by a corporation
in a traditional industry
sector.
So far in 2019 there have
been a little over 500 of
such M&A deals.

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United States
Canada
France
Germany
Switzerland
Sweden
Italy
China
Denmark
South Korea
Brazil
0 6 12 18 24 30
2
3
4
4
5
6
7
10
14
15
263
Source data: Crunchbase, CB Insights, MarketLine, FireMatter proprietary research.
0% 20% 40% 60% 80% 100%
50%
67%
100%
50%
40%
33%
86%
30%
36%
47%
13%
Cross-Border Digital M&A in 2019

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Bullard
• Bullard is a 100 year-old US
manufacturer of safety equipment
• Darix is an AR spinoff at EPFL
• Bullard will add AR to its firefighter
helmets heat sensors

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SKF
• AI predictive maintenance startup
• SKF to integrate technology in its
rotating equipment offering
• SKF has no digital M&A history

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Nice
• Automation and domotics systems
• Abode is a Silicon Valley startup in
DYI home security systems
• In 2018 Nice takes control of Abode

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The Earnout Newsletter
• One digital M&A deal.
Once a month.
• The why, how and so
what of traditional
corporations gobbling
up digital startups.
https://medium.com/firematter/earnout/

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@firematter
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