MARKET WATCH
Investing in our future
In the previous issue we highlighted the recent launch of HP Tech Ventures . As a follow-up , we recently sat down with HP ’ s Chief Disrupter , Andrew Bolwell , to learn more about the team ’ s focus and investment strategy .
HP Tech Ventures is focused on funding early-stage companies that are aligned with emerging technology areas that we believe will be the building blocks for the future , including : 3D transformation , immersive computing , Internet of Things , and smart machines .
According to CB Insights , venture capital funding rose to over $ 27.4 billion in the 2nd quarter of this year even with changes in valuations , and market uncertainties around Brexit and the upcoming U . S . presidential election . A quarter of that investment came from corporate venture capital , as startups look for the added value in manufacturing , supply chain , distribution , and go-to-market that corporate investors provide .
For HP the move into corporate venturing is a strategic , long-term play , as we leverage these investments to identify new , disruptive , and high-growth business opportunities for the company ; as well as accelerate expansion into markets where we have an existing foothold .
“ We are investing in tomorrow , and targeting early-stage startups , allowing us to get in at the ground floor ,” shared Bolwell . “ We intend to be active investors — working with these amazing entrepreneurs when they
28 Innovation Journal · Issue 4 · Fall 2016
Identify new , disruptive , high-growth business opportunities
Primarily Series A ( early stage )
Accelerate TAM expansion in Core and Adjacencies
HP value adds
• Supply chain and manufacturing
• Distribution
• BU partnerships
• Products and services discount programs
• Technology consulting
• Customer and industry connections
Winning aspirations
US and Israel ( WW opportunistically )
Co-investor with lead VCs
Disruptive Technologies
Internet of Things
Digital Health
Overview of HP Tech Ventures opportunity and investment strategy .
need help , and giving them full access to HP ’ s breadth of resources .”
HP ’ s initial investment areas are focused on key technology growth areas — 3D transformation , Internet of Things , immersive computing including augmented reality and virtual reality , digital health and smart machines . Those investments will mostly start with Silicon Valley and Israeli-based start-ups , but could expand to other regions over time .
The HP Tech Ventures team will evaluate opportunities based on a number of key criteria :
• A team well-matched for the problem and market they are intending to address .
• In-market product with established distribution and growing sales of at least
$ 1M current year run-rate .
Follow-on when appropriate
Investment areas
3D Transformation
Immersive - AR / VR
Smart Machines
• Deal priced by 1 st or 2 nd tier institutional investor , with at least half of the round committed .
• Strategic potential for HP to be a customer , referrer , reseller , or original equipment manufacturer for company ’ s products , data , and / or services .
While HP ’ s new venturing arm was only recently launched , they are already seeing traction from the accelerator and incubator relationships they have in place , and from partnerships with top institutional and corporate VCs .
“ We ’ ve hit the ground running and see huge potential with these types of investments ,” added Bolwell . “ This will pave the way for HP and our investment partners to create new markets faster , and in ways never before imagined . I can ’ t wait to see where it takes us .” •
To learn more visit : http :// bit . ly / hpTechVentures �