Title:
1Cloning the Silicon Valley will it work for
Sunrise Valley? Innovation through Corporate
Venturing Experiences and outlook
- Carsten Gaarn-Larsen
- Vice President, TDC Innovation
- Vilnius, November 28, 2002
2Agenda
- About the TDC Group
- TDC Innovation
- Facts
- Objectives
- Investments
- Some guidelines from Silicon Valley
- A Danish example
- IT Katrinebjerg, Aarhus
- Conclusions
3TDC assets in Europe
TDC Hakemistot OY (100) InterNordia (100) TDC
Forlag AB (100) Bite (100) Polkomtel
(19.6) TDC Internet, Polska (51) Ceske
Radiokommunikace (18) through Bividion Contactel
(50) UMC (16.3) HTCC (32.1) Connect
Austria - One (15) Bold indicates direct
control
- StorbyGuiden (100)
- Tele Danmark Internordia (100)
- TDC companies (100)
- Talkline (100)
- Belgacom (16.5)
- TDC Switzerland (78.7)
4TDCs long term financial performance
Net revenues EBITDA CAGR 14.2 CAGR 8.1
DKKbn
DKKbn
5TDC InnovationFacts
- Established April 2000
- Offices in Copenhagen and Aarhus
- Initial capital of Euro 40m (DKK 300m)
- Approx. Euro 22m (DKK 160m) invested to date
6 The bottom line.
- Through active investments in and collaboration
with start-up growth companies - Leverage own and Innovators strengths and
competences - Contribute to TDCs growth and earnings
- Accelerate TDCs innovational ability within
growth areas
7TDC InnovationPortfolio companies
8The mediator dilemmaLarge corporation vs.
start-up
Portfolio
TDC Group
- Customers
- Channels
- Sales organisation
- Technical expertise
- Infrastructure
- Management expertise
- Capital
TDC Companies
9Characteristics of the Habitat
- Place where technologies are turned into
businesses - A dense and flexible network of tight
relationships among people who know how to
translate ideas into new products and services
fast enough to stay on the edge of innovation - Networks continually connect people with good
ideas and test the changing market
Source William F. Miller, Professor
Emeritus Standford University
10The entrepreneurial habitatSome characteristics
- Favorable Rules of the Game
- Strong value-added business services
- Free flow of capital to most effective uses
- Free flow of people to best application of talent
- Free flow of ideas to enhance collective learning
- Global linkages to other industrial clusters
Source William F. Miller, Professor
Emeritus Standford University
11A regional innovation habitat (I)IT
Katrinebjerg, Aarhus
- Geographical concentration of IT programmes
- Research environments in which public and private
companies cooperate - Science park, development park, incubator
- entrepreneurs are offered initial support in the
form of management support, technology support
and capital contribution
12A regional innovation habitat (II)IT
Katrinebjerg, Aarhus
- IT Business Centre - offering office service,
restaurant and other facilities for independent
businesses within the IT and venture capital area
- Outgoing public facilities including a Virtual
Reality Centre, a 3D panoramic display, café
environment, theatre and gallery - IT infrastructure in the form of high-speed
networks, wireless networks and physical
infrastructure, which meet the soft as well as
the hard local traffic
13Involvement of TDC IT Katrinebjerg, Aarhus
- INCUBA A/S
- Incubator, seed investor, venture capital
- Expected contractor of new incubator
- Investors
- Schouw Co (industial)
- Research Fund of Aarhus University
- Dansk Kapitalanlæg (venture)
- TDC Innovation (corporate venture)
- Innovation Lab
- Show cases
- Projects with universities, research
institutions, etc - Direct investments
14Conclusions
- Face-to-face interaction core to success
- This is not likely to be enough with the
Internet, because it only allows for long
distance conversations but not handshakes. - Long term relationships pre-requisite which
requires stamina of corporations and their long
term visions, strategies and investments - Expect that new companies will evolve from
initiative and we will invest indirectly and
directly