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© ABB Group - Introduction to ABB Technology Ventures
October 15, 2013 | Slide 1
Girish Nadkarni -ABB Technology VenturesElectricity 2013 - Keynote Addresswww.abb.com/ventures
Jerusalem International Convention for Innovation & Business Development in Electricity and Energy
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A global leader in power and automation technologiesLeading market positions in main businesses
© ABB Group April 19, 2023 | Slide 2
Power Products
Power Systems
Discrete Automation and
Motion
Process Automation
$10.7 billion36,000
employees
$7.9 billion20,000
employees
$9.4 billion29,000
employees
$8.2 billion28,000
employees
(2012 revenues)
Low Voltage Products
$6.6 billion31,000
employees
Electricals, automation, controls and instrumentation for power generation and industrial processes
Power transmission
Distribution solutions
Low-voltage products
Motors and drives
Intelligent building systems
Robots and robot systems
Services to improve customers productivity and reliability
ABB’s portfolio covers:
145,000 employees in about 100 countries
$39 billion in revenue (2012)
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MIT Technology ReviewABB Among Top 50 Disruptive Companies of 2013
April 19, 2023 | Slide 3© ABB Group
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Thompson Reuters2013 Top 100 Global Innovators
April 19, 2023 | Slide 4© ABB Group
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ABB Technology Ventures Overview
ABB Technology Ventures (ATV) is the corporate venture capital arm of ABB
Goals:
Gain access to leading edge technologies and business models of strategic interest to ABB
Increase the pace of internal innovation
Profitably invest ABB’s assets
Began investing in 2010
Approx. $150 million USD deployed so far
16 investments to date:
13 investments into companies
3 investments as Limited Partners into other VC funds
3 investment professionals, 1 technologist and 1 intern
Technology/market due diligence and portfolio company support from businesses, industry sectors and corporate research
Report into a Board consisting of CEO, CFO, CTO and 3 other EC members
© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 2012 | Slide 5
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Investment Criteria
© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 2012 | Slide 6
Target ~4 deals per year (not including refinancings)
$1-$20 million USD initial investment size
Stage and geography agnostic
Typically partner with leading financial VCs and/or other strategic investors
Indifferent to leading deal
Investment must meet traditional VC return requirements and have credible strategic value to ABB:
Tight linkages with ABB business units and deep technical resources to ensure additional value-add product pull-through and accelerated R&D
Financial
• 25%+ IRR• Returns commensurate with
early-stage business & technology risk
Strategic
• Exposure/learning for ABB• Hedging bets among competing
technologies• Pre-M&A (Cisco approach)• Support nascent markets (Intel
approach)Key Question • Would a financial VC invest? • Would ABB like to own this company or
be in this space in the future?
+
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Why do we need a corporate venture capital group?
© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 2012 | Slide 7
Teaching ABB businesses to be paranoid!!!Teaching ABB businesses to be paranoid!!!
Smart Grid RenewablesCyber Security
Thousands of Start-Ups
Emerging Technologies
Emerging Competitors
Proximity to current market
Pro
xim
ity t
o c
ore
te
chn
olo
gy
High
Low
Low
R&
D
Business
Developm
entC
orporate
Venturing
Other Sectors with Overlapping Interests
80 CVCs formed in 2011!
Other CVC Groups
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Why Corporates Invest in Startups – 3 L’s
© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 20121 | Slide 8
Leap
Not Mutually Exclusive
Leverage
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Emerging Trends & Technologies from Different Universe….
Internet of things/M2M Communication Big Data 3D Printing Transfer of technology from consumer to industry Cloud Computing Software defined Anything Cyber crime Mobile apps and applications (some countries leapfrogging PC based
internet, e.g. Kenya) Frugal and local (contextual) innovation (Kenya, Brazil, India, China) Social media – 2 Way Communication (reputation, branding), Sourcing
(Über, AirBnB), Sharing (cars, bicycles, handbags, watches) Crowd sourcing (there are people who are smarter or luckier) Service Robots (vision, ease of programming, interaction with humans,
exoskeletons) Autonomous cars Biomimicry – learn from the master Smart Cities – slowly but surely
Implications for:1.Product development2.Business model3.Competition4.Disruption
Implications for:1.Product development2.Business model3.Competition4.Disruption
…. But having long-term implications for ABB
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Benefits of Working with a Corporate Investor
© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 20121 | Slide 10
Source: Partnering with Corporates, Cleantech Group Report
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ABB Technology Ventures February 4, 2013 | Slide 11
Areas of Interest 2013 Priority in Declining Order
High Potentials for 2014
Urban MiningWaste to Energy
el. Power + Heat + Recycling
G2L; P2G & P2LPower to Gas & Liquid
Energy storage, Gas utilization
Smart CityPartly covered in other topics
supervision, optimization, control
Geothermaland co-development
Sub Sea TechnologyOil/Gas
Unconventional O&GWater treatment
LNG regasification
Active Search
Energy EfficiencyIndustrial EEBuilding EMS
Smart manufacturingConnectivity, interface,
Predictive MaintenanceService
Software
Micro-GridDistributed Generation
Home AutomationMultiple sensors,
convergence,
Demand ResponseLighting TechnologiesBuilding and Industrial
applications
Discrete manufacturing& Robotics
Intuitive & easy programming
Sector Strategy to be prepared
Theme Based
Big Data Applications beyond
Smart Grid
Internet of ThingsApplications across BUs
Incl. “real time everything”
3D PrintingProducts & spare parts
Next gen. manufacturing
Reports released
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Solar PVmulti-function / BIPV
Residential
Solar BoS(micro) inverter & power optimizer
Solar CPVHCPV
Tidal energyand co-development
of PTO
Wave energyin synergy with APL &
far off-shore
Wind technologiessmall wind /
distributed Generation
Discrete manufacturingSmart manufacturingconnectivity, interface,
Renewables Smart Grid Energy Efficiency Other High Potentials
Geothermaland co-development
Micro GridDistributed Generation
DC TechnologiesFCL, DC CB, LV
Cyber Securitysoftware
Big DataApplications beyond
Smart Grid
Energy Storageutility scale
Demand ResponsePartly covered in other topics
Energy Efficiencycompressed air systems,
building EMS
Home automationmultiple sensors,
convergence,
Internet of ThingsM2M
(in-house study)
Waste heat recoveryadvanced heat pumpsmall scale generation
Lighting TechnologiesLED control,
Measuringadvanced sensors
Sensor,
Sub Sea TechnologyOil/Gas
Electric and oil separation
Power ElectronicPower Quality
inverter efficiency
3D Printing(in-house study)
Data Center Coolingincl. server and PCB cooling
P2GPower to Gas
Energy storage, Gas utilization
High speed motionmotors andcomponents
Predictive MaintenanceServicesoftware
Smart CityPartly covered in other topics
No real company strategy
Actively investigating sector / companies Passive search – few appealing targets Decline unless exceptional
General Areas of Interest – Evaluated Regularly
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Moving from opportunistic investing to theme and sector driven investing
Energy storage / utility scale battery technologies
Micro Inverter and Power Optimizer
Waste to Energy / Urban Mining
Lighting Control – industry overview
Waste Heat Recovery
Wave and Tidal
Solar CPV
Big data
Internet of things
3D printing
Identify emerging sectors in conjunction with businesses and industry sectors
Conduct thorough analysis and mapping of targeted sector to identify best technologies and investment targets
Study staffed by combination of ventures, business and research teams
Sector Studies Finished
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© ABB April 19, 2023 | Slide 14
Investments – 1 of 2
1 = All amounts in millions unless noted
2 = PIPE
2
Company Description Amount1
Board Involvement
Co-InvestorsLocation
Deals listed in chronological order of initial ATV investment.
As of October 1, 2013
N/DBrookfield, CTUSA
Direct current (DC) power supply systems for the data center
4 seats Oak Hill7 Sold to ABB 12/12
Status
Redwood City, CAUSA
Smart grid communications network using self-forming, self-balancing, and self-healing radio mesh
$20 Observer GE, Investor Growth Capital, VantagePoint, MissionPoint, zouk
1 Active
Foxborough, MAUSA
Cyber security company with applications for power systems, automation, and control systems
$5 1 seat Deep River Ventures2 Active
Santa Clara, CAUSA
Data center automation and energy efficiency management software
$9 Observer DFJ, Point Judith, Good Energies, Department of Energy
3 Active
RehovotIsrael
Advanced LIDAR technology for remote sensing of wind vectors to optimally align turbines
$3 Observer Cedar Fund, Evergreen Venture Partners, DFJ
4 Active
EdinburghUK
Marine energy conversion using Oyster wave power technology
£18 2 seats Sigma Capital, Royal Academy of Engineering, Scottish Enterprise, et al.
5 Active
San Francisco, CAUSA
6 Electric vehicle (EV) fast charging technology
$19 2 seats Public (NASDAQ: ECTY)Asset Sale
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© ABB April 19, 2023 | Slide 15
Investments – 2 of 2
1 = All amounts in millions unless noted
Company Description Amount1
Board Involvement
Co-InvestorsLocation
Deals listed in chronological order of initial ATV investment.
As of October 1, 2013
Status
Fremont, CAUSA
Highly efficient concentrating photovoltaic (CPV) solar systems
$20 2 seats Oak Investment Partners8 Asset Sale
Tel AvivIsrael
Cloud-based network monitoring and leak detection software platform for water utilities
$3 1 observer Emerald Technology Ventures, Gemini Israel Funds, Giza Venture Capital
9 Active
OrkneyUK
Advanced hydrokinetic device for floating tidal streams and run-of-river applications
$8 2 seats TOTAL, Fred Olsen10 Active
Czech Republic Technology park and Incubation center focused on direct current (DC) technology in the LV and MV space
€2 N/A E.ON, Philips, Alliance Federated Energy
11 Active
ZugSwitzerland
Technology + services company focused on wind farm performance through yaw alignment optimization
€1 1 seat Yellow & Blue Investment Management, b-to-v Partners AG
12 Active
Santa Clara, CAUSA
Electroadhesion technology for robotics, material handling and industrial automation
1 seat Formation 8 and Nike$113 Active
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Beijing, China
© ABB April 19, 2023 | Slide 16
Fund Investments
Fund Name
RepresentativeInvestments
Location
Fund Size
Strategic Focus
Founded
AUM
ET SolarChina Hydroelectric Corporation (CHC)Haiyuan GroupNeo-NeonNetPowerChina SunergyLDK
$271MM USD
2001
Targeting investments in cleantech companies in China or those having a nexus to China with a mix of earlier stage to expansion stage companies
China Environment Fund IV (CEF IV)
$350MM USD
Managing Partner Don Ye
Zurich, CH / Toronto, Canada
TaKaDu1
Evergreen Solar (Nasdaq: ESLR)Pemeas (acquired by BASF)RuggedCom (TSX:RCM)River Basin EnergySynapsenseXunlight
€300MM
Targeting €4-10MM investments in early and expansion stage cleantech companies in Europe and North America
2000
Emerald Cleantech Fund III
€100MM target (€25MM first close)
Gina Domanig
1 ABB Technology Ventures co-investment
Juno Beach, Florida USA
2012
ClearSky Power & Technology Fund
Alex Weiss
New fund, sponsored by NextEra Energy
$350MM target
Strategic fund for NextEra Energy
Targeting late/growth stage equity investments in renewable energy generation, smart grid, energy efficiency, energy storage and air & environment
iControlClean Energy Finance
Other undisclosed investments
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ATV Team
Girish NadkarniPresident, ABB Technology Ventures
Kurt KalteneggerHead of Technology
Andrew TangManaging Director
8 yrs. at ABB; prev. responsible for ABB’s global cost migration program and ran global automotive business for the Robotics Division as Sr. Vice President
Prior: EIR, View Group; President & CEO, vSimplify; Mgr., Corp. Dev., GE; GE Capital; Prudential Capital
Nominated as one of the top 100 global corporate venture capitalists
20 yr. ABB veteran; fmr. head of high voltage circuit breaker development; global medium voltage products BU technology manager
Director of Research Center in China (Beijing) and CTO for ABB CN; more than 30 patents
10+ yrs. VC experience; founding Managing Director at DFJ DragonFund; exits include Broadbus (MOT), Zettacom (IDTI), and NuTool (ASMI)
Prior: Partner, Infineon Ventures; Credit Suisse First Boston (investment banking); Intel and Motorola
MBA, Harvard LL.M., UVA LL.B., University of Mumbai B.Com, University of Mumbai
PhD, Montanistic U. Leoben (solid state physics & superconductivity)
MSc, Karl-Franzens University Graz
MBA, Wharton MSEE, MIT BSEE, UT Austin
© ABB April 19, 2023 | Slide 17
Grant AllenSenior Vice President
Formerly VP at Core Capital Partners ($350MM Washington, DC fund focused on enterprise software)
Notable deals: TaKaDu, Validus, Valen Technologies Prior: Microsoft Corp., Liberty Associated Partners (VC),
Dean & Company (mgmt. consulting), 3 start-ups
MBA, Wharton BSE, Duke
Zurich
Zurich
Palo Alto, CA
Washington, DC
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How to Work with a Corporate VC
Find companies which have in interest in your space
Educate yourself about their strategy and priorities
Approach their corporate venture group – Helpful but not critical that it be through a common connection
In your presentation:
Show how your technology will help them strategically
Discuss the type of support you expect from them other than money
If a deal develops, ensure that there is buy-in from the relevant business unit
© ABB Group - Introduction to ABB Technology VenturesJanuary 12, 20121 | Slide 18
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© ABB Group 091023- Introduction to ABB Technology VenturesNovember 1, 2011 | Slide 19© ABB Group 091111- ATV Investment Strategy & PolicyApril 19, 2023 | Slide 19