vc & cvc stream: the missing piece
DESCRIPTION
VC & CVC Stream: The Missing Piece. Michael Dimelow VP Business Development, ARM. ARM Introduction. Global leader in the development of semiconductor IP - R&D outsourcing Innovative business model yields high margins - license, royalties, technology reuse Long-term, secular growth markets. - PowerPoint PPT PresentationTRANSCRIPT
VC & CVC Stream: The Missing Piece
Michael DimelowVP Business Development, ARM
ARM Introduction• Global leader in the development of semiconductor IP - R&D outsourcing• Innovative business model yields high margins - license, royalties, technology reuse• Long-term, secular growth markets
Approximately 1000 licenses Growing by ~100 every year
Over 330 potential royalty payers
8.7bn ARM-based chips in ‘12~25% CAGR over last 5 years
How many ARM’s Do You Have?
Average Selling Price of a Semiconductor Chip
Opportunity
>$25$10-15$3-6$1-2
Volu
me
Strategic Investor: Semi & Software Investment Goals:
1. Direct involvement in ecosystem2. Window to technology3. Long-term group revenue4. Financial return
Investment strategies:5. Actively expand ARM ecosystem6. Seed markets with ARM Technology7. Explore new business models8. Appropriate return
Example – Calxeda Inc
EngagementsCompany Overview:• Developing server chips based on ARM technology• Fabless semiconductor companyARM Ownership:• UndisclosedStrategic Rationale for Investment:• Establish presence in low power server chipsRecent Events:• Significant customer traction for ultra low power compute• Closed $55 Million Funding Round Q4’2012
Working with Financials • Actively seek co-investors that:
– Keep the company focused on the day job– Have a history of building businesses– Healthy debate with strategic’s for the benefit of the company
• Visibility of complementary deal flow– Jointly qualify business model and technology fields– Identify portfolio collaboration opportunities
• ARM is an active investor– Where an investment continues to serve a strategic purpose
Contacts: [email protected] or +44 77 1000 [email protected] or +44 79 8030 2218
Thank you