Cogentic Case Studies 2010 Q4

Innovation | Incubation | InvestmentInnovation | Incubation | Investment

Case Studies

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2010-Q4 Page 1PROPRIETARY AND CONFIDENTIAL

Innovation | Incubation | Investment

Challenge: DivX, the leader in MPEG4-based video compression for PCs, needed to enter Consumer Electronics (CE) to extend its reach.

Solution: Created strategic plan to enter CE markets through DVD and set-top box (STB), set licensing strategy, and acquired key IC, OEM, and ODM alliances.

Benefit: DivX technology is embedded in DVD players, DTVs, STBs, portable media players, and represents over 70% of their revenue in 2009. Successful CE market penetration powered their IPO (September 2006), which raised over $600M. Sonic Solutions acquired DivX in June 2010 for $320M.

Business Development: DivX, Inc.

Page 2PROPRIETARY AND CONFIDENTIAL2010-Q4


Challenge: Morphlix sought funding of $1.5M for development and marketing. They planned to become the first secure delivery system of movies at full HD (1080p) resolution to consumers via removable devices, retail kiosks, and the internet.

Solution: Strategy was developed to target 50-80 investors known to participate in media and entertainment technology. Outreach to both VCs and strategics performed over a four month period.

Benefit: Cogentic was able to secure the first $1.5M of funds for Morphlix, as well as help them to initiate licensing discussions with major studios.

Capital Sourcing: Morphlix



Challenge: Sony Electronics needed to investigate opportunities and develop strategies for its next generation, SOA-based product suite for the post-production industry.

Solution: The project was done in two phases: (a) industry and competitive research on the ecosystem; (b) strategic recommendations on alliance partners, competitive strategy, and pricing methodology.

Benefit: Internal funding for the program was provided, and Sony Electronics featured its Media Backbone workflow solutions at NAB2010.

Tech Strategy: Sony Corporation



Challenge: LSI Logic needed introductions to key executives at post-production facilities and the major Hollywood studios to increase adoption of their new advanced MPEG codec technology.

Solution: Cogentic made strategic introductions resulting in meetings with CTOs and key executives at the top three studios and top four post houses. Briefing presentations prepared LSI executives prior to all meetings.

Benefit: LSI Logic trials were established at each facility, and engineering development programs with LSI Logic’s integrators were accelerated by six months versus competitors, helping retain >40% market share.

Business Development: LSI Logic



Challenge: Green Earth Fuels, an innovator in bio-fuel technology and processes targeted to raise $80 million in an initial round of capital to fund expansion, and infrastructure development

Solution: Team members Richard Beleutz, Robert Dolan and Eric Knight developed a syndicate strategy to generate global investor interest

Benefit: The team was successful in raising $80 million in an initial round of capital from Carlyle Group, Goldman Sachs and Riverstone Funds. The syndicate subsequently funded a $180 million follow on offering.

Capital Sourcing: Green Earth Fuels



Challenge: Virtual Space Entertainment (VSE) created the world’s first 1080p virtual world, and needed to raise $5M to $8M in its Series A round.

Solution: Investment packaging, outreach plan, and investor contact was to be performed over six month period in two stages, first to secure $1M and position the company for Series A after abatement of the 4Q-2008 economic downturn.

Benefit: Cogentic secured the capital needed, and helped the company secure key senior management team members to lead the company through its next stage of growth. VSE survived 2009, and has subsequently received additional funding in 1Q-2010.

Capital Sourcing: VSE



Challenge: Qualcomm wanted to deploy its Binary Run-Time Environment (BREWTM) development toolkit to the cellular ecosystem.

Solution: Global market entry strategy was developed, including target market strategies for US, Korea and Japan.

Benefit: Successful deployment of the technology toolkit, with carriers, handset manufacturers, and application developers forming an infrastructure where BREW applications can be purchased by users.

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Tech Strategy: Qualcomm (BREW)



Challenge: Sony Electronics needed to advance its MPEG-based strategy to maintain its leadership role in professional broadcast equipment.

Solution: Created two key initiatives: Pro-MPEG Forum (open industry consortium of broadcasters and OEMs) and Sony’s “MPEG World” (individual alliances between Sony and other manufacturers).

Benefit: Within 12 months, Sony dominated with its MPEG strategy and resulting sales over two years was over $300M in MPEG equipment.

Business Development: Sony Corporation



Challenge: Easynet Global Services USA, a managed services provider backed by BSkyB (News Corp) wanted to consider options for expanding their USA presence via a targeted acquisition.

Solution: After a discovery process to determine goals and constraints, a long list of potential targets was pruned to a short list, based on strategic analysis of factors influencing attractiveness and likelihood of success.

Benefit: Armed with information needed for its decision, the company is poised to act – however, no further information can be disclosed at this time.

Buy Side M&A: Easynet (News Corp)



Challenge: Apeer Mobile, a real-time collaboration tool developer, needed to maximize its valuation over 12-18 month time horizon

Solution: Corporate and technology strategy were revamped to focus on mobile, alliance plan created to establish wireless media ecosystem

Benefit: Company engaged in trials with large advertising firms, major networks and news outfits; in M&A discussions (as of 3Q2009)

Tech Strategy: Apeer Mobile



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Cogentic Case Studies 2010 Q4

Documents

competitive strategy

tech strategy

licensing strategy

syndicate strategy

q4 proprietary

divx technology

capital sourcing

business development