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Working With A Large Company

Working With A Large Company. Jean-Louis Trochu Texas Instruments May 2011. At the center of today’s hi-tech companies goals, be they Small or Large. “Do or Die”. Top Line Growth Innovation. May 2011 JL Trochu. What could the large company seek?.

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Working With A Large Company

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  1. Working With A Large Company Jean-Louis Trochu Texas Instruments May 2011

  2. At the center of today’s hi-tech companies goals, be they Small or Large. “Do or Die” • Top Line Growth • Innovation May 2011 JL Trochu

  3. What could the large company seek? • Access to technology or product • Development of the eco-system, Differentiation, Catching up, etc. • Access to a new business model • Access to a new market • Access to talent pool • Intangible benefits May 2011 JL Trochu

  4. What could the start-up seek? • Generate sales • Direct sales • Opportunity to integrate into a system solution • Leveraging on infrastructure, name recognition • Access to manufacturing • Access to capital • Direct equity investment • Intangible benefits / Other May 2011 JL Trochu

  5. Selling directly to a large company CA-based semiconductor start up, VC financed About 5 year old, one known customer, ~$10M in sales First opportunity to sell to TI on a sole source basis but had to invest $$ upfront; significant revenue and profit • Price • Timely device development and qualification • Assurance of supply (unknown demand) • Clean of IP infringement risk / claims • Financial resilience and default risk (breach) May 2011 JL Trochu

  6. Multiple engagements Belgium based software start up, with complex structure About 4 year old, one known customer, <20 employees Great algorithm SW complementing TI’s offering but limited ability to engage with global customers • TI reimbursed company to port its SW on TI’s silicon • TI invited company at customers visits, trade shows,.. • 2010 – TI declined investing in company • Change in TI BU executive mngt and account mngt • Change in company structure • Company delivers on goal / nurture relationship • 2011 – TI revisiting potential investment in company May 2011 JL Trochu

  7. Direct Equity Investment Israel company is 1 year old, appealing SW technology No financing available, no revenues, <10 employees Great 3D algorithm SW to differentiate TI’s offering How strategic investors generally differ from VCs • Ownership <20% • Board observer only • Veto and other tight pre- emptive rights • Not just an equity invest. • Not equipped for exit mngt • Not equipped for daily intervention, staff upgrade,.. • Not always perf. aligned May 2011 JL Trochu

  8. Some Observations…. • Stay focused • Know what you really need, what your vision/goals are • Balance opportunities with constraints • IP protection; today’s gain vs tomorrow’s handcuffs • Establish multiple-point relationship • Nurture; everyone needs attention; it is a marathon • Develop your selling / negotiating skills • Prepare; ask lots of questions; adjust to audience • Know your alternatives; move on w/o burning bridges • Enlist experts • Not everyone is a CEO to-be; devil is in details May 2011 JL Trochu

  9. Title Good Luck and Thank You • Lorem ipsum dolor sit amet, sed sem sed magna suscipit egestas. • Lorem Fusce sed sem sed magna suscipit egestas. May 2011 JL Trochu

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