incubit technology ventures corporate open...
TRANSCRIPT
Incubit Technology Ventures
Corporate Open Innovation
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© 2017 by Elbit Systems | Elbit Systems Proprietary
Our Story
▪ What’s an Incubator?
▪ Elbit - and why an Incubator
▪ Open Innovation and the Incubit Model
▪ What’s in it for Founders / Corporate
▪ Incubit examples
© 2017 by Elbit Systems | Elbit Systems Proprietary
An Incubator?
Early stage startups struggle to attract VC funding due to high risk
Identified as a market failure meriting government intervention
Risk Sharing scheme 85%/15%Early StageFunding + Mentoring
Early StageStartups
Market Failure
IIA Incubator Program
2013:
IIA Initiative to
attract Corporate
Strategic Players
as Incubator
Operators
© 2017 by Elbit Systems | Elbit Systems Proprietary
Elbit Systems
Largest Israeli privately held defense industry
▪ >$3B/year revenues with strong 2-years backlog
▪ >$280M/year IR&D
▪ Long heritage of technology innovation
▪ Business lines based on technology ‘wild cards’
▪ 4500 strong engineering
work force (~50% of the organization)
▪ Highly diverse business lines
Elbit
So why do we need an Incubator ?
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Defense & CommercialAirborne Systems & Simulation
EW & CountermeasuresSystems
CYBER Solutions
Combat Vehicles & Artillery Systems
Unmanned VehicleSystems
Homeland SecuritySystems
Naval Systems ISR & Electro-opticSystems
C4I & DAPRadio Communication
© 2017 by Elbit Systems | Elbit Systems Proprietary
The Challenge
struggle to recruit, retain and exploit people with strong innovative skills.
now we have many examples of technology migrating from commercial to defense.
is very broad and it is challenging to support R&D across the entire portfolio.
Big organizations
Direction of technology migration reversed
Elbit's portfolio
Time to stop looking only INSIDE the
organization for innovation
© 2017 by Elbit Systems | Elbit Systems Proprietary
Incubit is part of the Open Innovation in
Elbit’s Innovation strategy
Big organizations need to look
outside - That’s Open Innovation
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An open approach to Open Innovation
First and Only defense industry-backed incubator
© 2017 by Elbit Systems | Elbit Systems Proprietary
Incubit Open Innovation Model
Looking for ‘good’ innovative, technology based startups that have:▪ A Strong commercial business case▪ All the good “numbers” for future VC/CV funding▪ Coachable team
With
▪ Technology that can be relevant to Elbit
Investing only in Deep-Tech startups at early stages
▪ Making that technology accessible to Elbit down the roadvia licensing / f-R&D / investment
▪ Make Defense an advantage through “non-compete”
Open
Innovation
Spin-In model
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Early Stage
Deep-Tech
© 2017 by Elbit Systems | Elbit Systems Proprietary
What’s in it for the Founders?
▪ $650K / 2 year / ~$1.5M pre▪ Deep Tech fearless▪ Tolerant to Pivoting in D-D▪ Corporate backed D-D
▪ Strategic w/ R&D background▪ Access to ESL experts / resources / infrastructure ▪ Mentoring and BD support
▪ Technology vetting▪ Possible f-R&D▪ Non diluting licensing
Early stage Deep TechFunding
More then just Funding
Your best launchpad
Unique
DEEP TECH
Opportunity
© 2017 by Elbit Systems | Elbit Systems Proprietary
What’s in it for the Corporate
▪ New ideas from the cutting edge▪ Positioning through OPIN▪ Better Cost/Risk/TTM
▪ TSA through D-D▪ TSA through mentoring▪ Quick & Dirty feasibility checks
▪ LEAN Startup close hand▪ TTM focused ▪ Dev processes
Early access to Technology from the outside
Technological Situational Awareness
Learning from Founders
Unique
Access to
new
Technology
© 2017 by Elbit Systems | Elbit Systems Proprietary
So far…
Open for business since Jan. 2013 10
Made Nine investmentsScouting of
>550 companies
Spin in Examples
© 2017 by Elbit Systems | Elbit Systems Proprietary
So far…
Spin in
StartupESL
Synergy DESCRIPTION
CENS MaterialsLand SuperCap
CNT dispersion in Li-Ion batteries increasing power
Collage Medial
ImagingKnow How
Optical biopsy for diagnostics of local cancerous tumors within organs
NewRocketAerospace/UASI
“Green Propulsion” rocket enginebased on gel-propellant technology
EchoCare Land/ElisraNon-cooperative, elderly-care home monitoring focused on fall detection
L7 Defense CyberBitBio-Inspired automated mitigation of DDOS attacks
Creative IC3D All Copper based, 3D printing of PCBs
VocaSee ElisraHigh accuracy, speaker agnostic automatic transcription
ExBand
NetworksElisra/C4I High power linear RRH for 4G/5G cellular
SensorDesign Land Next generation seismic data collection 11
SensorDesign
Q & A
Thank you
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