Ray Haarstick, CEO of data tracking software provider Relevant Equity Systems discussed global strategies for corporate venturing and the opportunities presented by sharing economy with investors from across the globe.
The panel comprised Claudia Fan Munce, managing director of US-based IBM Venture Capital; Matthew Koertge, managing director of Australia-based Telstra Ventures; Charles Searle, CEO of South Africa-based Naspers subsidiary MIH Internet Listed Assets; and Anderson Thees, managing director of Brazil-based VC fund Redpoint e.ventures.
Searle began his career in corporate venturing almost 20 years ago, when any investor stepping into China would have found competition scarce. However, globalisation has had a significant impact on the business environment.
“Now every man and his dog, and his auntie and uncle, is chasing every opportunity,” Searle said. “The emerging markets story has disappeared.”
In particular, exit strategies have changed, “as strategics are looking at earlier stage investments, almost angel.”
At Telstra Ventures, the corporate venturing unit of telecommunications company Telstra, Kearne deploys a two-prong global strategy.
“We are looking for opportunities to expand Telstra’s core business, predominantly into Asia,” Koertge said. “And we are trying to find the world’s best solutions to apply in Australia.”
According to Thees, the venturing approach used to involve finding Brazil-based companies to expand abroad, or to try and resolve problems back in Brazil, typically by looking to the US. Now, a successful strategy is to look across emerging markets for inspiration, for example expanding China-based startup hub TechTemple to Brazil.
Munce explained that while IBM provides infrastructure, it is more focused on local markets and ecosystems, revealing: “Africa is one of the big markets we looking at.”
In response to a question from the floor, Munce added that innovation today was more about ‘consumablity’ and “who needs it, and who will pay for it. Future innovation will come from those with domain experience, rather than scientists.”
The panellists concurred that the sharing economy, epitomised by taxi hailing app Uber – described by Searle as “phenomenal” – presented great opportunities, being asset-light and scalable across the globe.
Citing a report by professional services firm PricewaterhouseCoopers forecasting the market to grow 20-fold within the next decade, Thees said: “It is one of the models that we are looking at keenly.”
