ADVANTAGE THROUGH INNOVATION VENTURE CAPITAL – A TOOL TO ACCESS BREAKTHROUGH INNOVATION 1
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ADVANTAGE THROUGH INNOVATION VENTURE CAPITAL – A TOOL TO ACCESS BREAKTHROUGH INNOVATION 1
ADVANTAGE THROUGH INNOVATION VENTURE CAPITAL – A TOOL TO ACCESS BREAKTHROUGH INNOVATION 1 CHRYSALIX VENTURE CAPITAL DEEP INDUSTRIAL, TECHNOLOGY AND ENTREPRENEURIAL EXPERTISE Dr. Wal van Lierop - President & CEO Mike Sherman - Managing Partner Chrysalix Investment Metrics Ex Westcoast Energy, McKinsey, EU, World Bank; PhD Econ. Vrije University Dr. Alfred Lam - Vice President Ex NRC; PhD Chemical & Biological Engineering UBC Stefan Heck – Advisor Stanford Professor; Former McKinsey Dir. Cleantech & Sustain. Peter Bryant – Advisor Senior Fellow Kellogg Innovation Network; Partner Clareo Ex Starbucks; Marketing Specialist; HBA Richard Ivey School of Business Joe Blair - Vice President Clean Energy Startup; MSc Mechanical Eng, Harvard MBA Mark Dudzinski – Advisor Former CMO General Electric Energy; BSc Electrical Eng. Cornell Paul de Martini – Advisor Former CTO CISCO and VP Southern California Edison Richard MacKellar - Managing Partner Ex NxtPhase, Brightside; Degree in Metallurgy, Harvard MBA Wendy Leong - Vice President, Finance 20+ yr. Investment Mgmt. & Financial Reporting; CPA, CA; BComm UBC Dr. Matthias Bichsel – Advisor Former Executive Committee Shell; Various Fortune 500 Board Seats Dr. Charles Haythornthwaite – Partner Co-founder Soliant Energy; PhD Laser Physics & Mat. Science; Berkeley MBA Allison Johnson - Director of Marketing BAH Queen’s University, MSc Management London School of Econ. Michael J. Phelps – Advisor Former CEO WestCoast Energy; Various Fortune 500 Board Seats John Thompson – Advisor Former VP Technology and Development, Teck; Wold Professor Cornell 2 LONG TRADITION OF EARLY STAGE CORPORATE ENGAGEMENT Chrysalix provides leverage & risk reduction to its Limited Partners 3 Large Industries Facing Transition ACCESSING EXTERNAL INNOVATION IS ONE OF THE FEW CARDS LEFT TO PLAY • Industry getting squeezed • Falling productivity and increasing costs • Declining prices • Social licence issues • Tightening environmental regulation • Market rapidly changing 4 Challenges with Innovation CENTRAL QUESTIONS FOR LARGE INDUSTRIALS Chrysalix Innovation Summit Alumni Organizations 1) How do you become aware and access the high value innovation that really matters? 2) How do you create a portfolio of options to access the upside of breakthroughs but minimize the cost and the risk along the way? 5 Risk vs Reward SUCCESS RATE OF INTERNAL INNOVATION CHALLENGING OUTSIDE CORE Big Wins with process led by Senior Champion, BUT with Greater Risk Risk Mitigation Strategy Led by Operations Greatest Margins, Opportunities & Threats Outside Core! 6 Enhanced Innovation Funnel CREATE BROADER STRATEGIC WINDOW OF HIGH VALUE OPPORTUNITIES 7 Strategic Engagement Process ACTIVE COMPANY BUILDING & MATCHMAKING FOR SUCCESS Step 6: Step 5: Step 4: Step 3: Step 2: Step 1: Lab Test Prelim Assessment (TRL 1-4) Customer Pilot Test Large Scale Demo (TRL 5-7) Scale Up First Commercial Deployment (TRL 8-9) Project Finance Corporate Engagement Venture Capital Strong VC Involvement Higher Success Rate Reduced time to Market Efficient use of Capital Large Corp Involvement 8 Chrysalix as Integrator CONNECTING SOLUTIONS TO MARKET DRIVEN PROBLEMS Oil & Gas Solar Thermal Drywall Industry 9 Solar Steam Generator 10 Pilot: McKittrick, CA, USA Large Scale Demo: PDO Amal, Oman 50 tonnes of steam per day 1st Commercial Deployment: PDO Miraah, Oman 6,000 tonnes of steam per day Summary: Chrysalix-Shell Partnership Today: Highly differentiated solar industrial heat technology. World’s largest solar project: 1GWt ($600M). $1.2B MOU and $100B opportunity just in oil and gas. Expected 2017 IPO. Highlights: 2010 – 2012 Chrysalix recognized technology potential and outstanding team. Series A lone investor (ownership ~30%) Based on market knowledge, encouraged switch to much better “hidden” market – enhanced oil recovery Introduced “strategic technology” to Shell (Chrysalix LP) 2012 – 2014 Shell invests in Series B and its Oman JV (PDO) successfully demonstrates pilot in Oman. Shell leads Series C with >$100M valuation including Oman sovereign wealth fund, SGRF. 2015 - 2016 PDO $600M order and $1.2B MOU. Opportunities for financials to invest in pre-IPO round. 14 Chrysalix Venture Capital Industrial Innovation that Matters Alfred Lam Vice President, Chrysalix Venture Capital E: [email protected] T: +1.604.659.5483 www.chrysalix.com 15