Introducing 4i. An Open Innovation Company

4innova'on An Open Innova'on Company All rights reserved

SUNN: A PLATFORM FOR INTERNATIONAL OPEN INNOVATION PROCESSES

INTRODUCING 4 INNOVATION An Open Innova;on Company


Outside-‐In Innova;on Interna'onal disrup've innova'on is a market of strategically and financially high-‐value transac'ons, vital to Spain’s compe''veness. It should be systema'sed and integrated into the Spanish industry.

Inside-‐Out Innova;on Spanish disrup've innova'on should be placed in high-‐demand technology markets with op'ons for real investment returns and access to capital markets. The only way to compete with large scale models is through innova'on and the added value perceived by markets.

Sub headline AGENDA INTRODUCING 4 INNOVATION

It is not a ques'on of crea'ng innova'on, but of knowing where to find it and having the capacity to integrate it into industry in the fastest and most effec've way. In order to do so, one has to explore blue oceans and find new sources of compe''veness and growth, wherever they may be, in Spain or beyond.

“Companies need to go beyond compe'ng. To seize new profit and growth opportuni'es, they also need to create blue oceans”.

Blue Ocean Strategy W.Chan Kim, Rene Mauborgne

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•  4 Innova'on (est. 2009) is an interna;onal company based in Madrid, Tel Aviv, and in Singapore.

•  Our SUNN plaIorm (Start Up Neural Network) connects the supply of disrup've innova'on worldwide to the demand for compe''veness by Spanish and/or interna'onal companies.

•  4i has received several innova;on awards in 2013 (Madrid Network, Ministry of Industry, financial magazines), and we work with major industrial corpora'ons, financial groups and venture capital funds

•  Our model has been assessed by interna;onal and na;onal experts, by the American equity research firm Incremental Advantage and by the Group of Informa'on Technology for Business Management (TIGE) of the Polytechnic University of Madrid. Both companies have highlighted the innova've nature of our approach and the lack of compe'tors offering similar services. The high value informa'on on Israeli companies that 4i owns has also been praised.


Who we are

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Our mission is to systema;cally scout disrup;ve innova;on in countries with high industrial research capabili;es, and to bring such innova;on to our clients



Our Performance

• We have mapped 3000 startups, funds and research groups in Israel.

• We have assisted as deal flow makers in 5 relevant listed companies in Spain and several funds.

• We presented to our clients some 150 Israeli startups seeking financial and strategic investment, with a total investment proposi'on of around $100 mill.

• We developed the first Open Innova;on Management System to monitor our ac'vi'es in Israel.

• We work with large Spanish companies, funds, governments and universi;es.

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Media Impact

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Countries specializing in disrup;ve innova;on Finland

Indicator Rank

Innova;on 2

R&D University-‐industry collabora'on 4

PCT patents 3

Venture Capital availability 13

Firm-‐ level technology absorp'on 6

Quality of research ins'tu'ons 13

Israel

Indicator Rank

Innova;on 3


PCT patents 4



Quality of research ins;tu;ons 1

Singapore

Indicator Rank

Innova'on 8


PCT patents 13




USA

Indicator Rank

Innova'on 6

R&D University-‐industry collabora;on

3

PCT patents 12




Global Innova;on and Compe;;veness Index 2012-‐2013

Source: Global Compe00veness Report 2012-‐2013


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”Internovaliza;on”

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Current restric'ons in the organic growth of companies are causing global movements of great strategical interest, based on the need for technological diversifica;on and interna;onaliza;on, in two dimensions:

•  New Markets (downstream): Diversifica'on towards emerging growing geographical markets (India, China, Brazil and developing countries). In this dimension, companies scout for alliances, purchases and market entry strategies in order to open new markets where sales growth may be created.

•  New Technologies (upstream): The need for growth also involves introducing new products to diversify companies' business and product porjolios, or to allow the replacement or upgrade of exis'ng technologies with fast life cycles.

In a context of economic slowdown and produc;on reloca;on, it is necessary to establish access strategies to highly innova;ve markets, to facilitate the transfer of innova;on to emerging or mature industries.

Growth Dimensions


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Sub headline AGENDA OPEN INNOVATION SPACE

”Internovaliza;on”

Powerful new innova;on-‐intensive sectors unfold in interna;onal markets, in which the countries are in turn posi;oned as research producers (Israel, USA, Singapore), implementers (China, USA) or traders (USA, China, India, Europe, Brazil).

Globaliza;on is forcing countries to specialize, causing some of them (such as the United States, Israel and Singapore) to aim to create innova'on ecosystems. These ecosystems present tech-‐based research proposals to the interna'onal markets that, in general, are only valuable if they are complemented by the necessary produc'on and distribu'on capabili'es.

These countries present the following characteris'cs:

•  High concentra;on of venture capital funds

•  High presence of startups, spin offs and companies in different stages of innova'on.

•  Specializa;on in emerging sectors: Energy, Cleantech, Security, ICTs, and Life Science.

•  High and rapid capitaliza;on for strong company turnovers with public offerings.

•  Presence of interna;onal research centers in these countries, that increases the collec've intelligence.

Specialisa;on in value chain

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Open innova;on Term coined by professor Henry Chesbrough expressing a new paradigm in the pursuit of innova'on beyond the limits of the internal R&D of regions or companies.

Innova'on is not simply entrepreneurship. Breaking technological cycles and turning added value into a compe''ve advantage is a skill.

STARTUP NEURAL NETWORK (SUNN)

Compe;;ve innova;on Disrup've technologies or processes that increase sales or streamline business costs, providing a compara've advantage throughout the opera'ng 'me of the patent.

Interna;onal innova;on The need to invent disrup've technological applica'ons enables countries such as Israel, Singapore and Finland to become great innova'on partners for Spain.


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Sub headline AGENDA Startup Neural Network (SUNN)

What is SUNN?

•  SUNN technology plaIorm, developed by 4i, provides a link between different agents of the innova'on system (research groups, disrup've start-‐ups, venture capital funds and companies) and allows them to interact. SUNN is a neural system that learns from the supply and demand requirements of disrup've technology, by understanding the rela'onship that exists between industrial capabili'es, compe''veness factors and technological innova'on.

•  The system is based on extensive research of Israel’s innova;on model, carried out between 2009 and 2013, in which we have come to understand and standardize the success of the so-‐called Start Up Na'on.

•  SUNN will allow users to:

•  Automa'cally access, search and browse interna'onal innova'on opportuni'es that can affect industrial compe''veness (patents, spin-‐offs, research groups and startups, from Israel, Singapore, the U.S., Finland or Spain)

•  Increase the visibility of university research groups towards the demands of interna'onal industrial corpora'ons.

•  Detect na'onal and interna'onal disrup've innova'on projects, financed by venture capital funds.

•  In both cases, watch and be watched in the interna'onal environment of disrup've innova'on.

•  Nowadays, SUNN includes about 3,000 Israeli companies, research groups and VCs organised by Innova;on Ecosystems.

Project Goals

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It is a workflow between interna;onal agents of the innova;on system

If they do not transfer innova'on to industries, companies will gradually lose compe''veness.

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It is a technological plaIorm of neural networks

Without a technology that manages the rela'onships and transac'ons of an innova'on system, the effec'veness of the transfer processes is reduced.

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It is another way of understanding interna;onalisa;on+ Innova;on: “Internovaliza;on"

If we do not know how to access and work with countries with a global compe''ve posi'on in the applica'on of industrial science, we will lose compe''veness.

SUNN is a permanent, technological mee;ng point for the innova;on needs of the industry with a global supply of disrup;ve startups, research groups, patents and na;onal and interna;onal venture capital

funds.


What is SUNN?

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Start Up Neural Network Spain

•  The rela'onship between innova'on actors takes place within the so-‐called Ecosystem, as a group of disrup've technologies of interna'onal demand. The Innova'on Ecosystems are those that can change global industries. The so-‐called “source ecosystems” are: Energy, Cleantech, Advanced ICT, Life Science and New Materials.

•  4i has understood the rela'onship between all actors in the ecosystems, and the rela'onship between them and tradi'onal industries, and groups innova'on into four compe''ve areas: innova;on affec;ng the core business of companies, innova;on adding substan;al value, innova;on allowing business diversifica;on, and currently undeveloped “alpha” projects.

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International Funds – Research Groups, patents – Spanish Industrial Companies - Disruptive startups

Disruption - Time


Startups


Agents and Resources Connected

Patents

Research Groups

Companies

Funds

Disrup'on

Industrial Capabili'es

Compe''veness Factors

Ecosystems

Demands for Innova'on Innova;on

Agents Innova;on Resources

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4i Watch

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SUNN's Ecosystem Watching

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VC Funds

Start-‐Ups

R&D Groups

Companies

Strategic Investment

Tech Accelera'on

Pledge Funds

Ecosystem startups , R&D groups Areas of Innova'on:

Reinven'ng core business Added Value Diversifica'on Alpha Problem

Innova'on Workflow Pledge Fund Tech Vigilance

Ecosystem startups Deal Flow in emerging markets

Deal flow organiza'on and scou'ng Risk Analysis Sanity checks Pledge funds

Technology follow up Due diligences

Industrial demand of innova;on in early stages Observatory

Industrial capabili'es connec'ng to ecosystems

Patents Exposure Commercial workflow

Industrial Ecosystem: demand of innova;on, industrial capabili;es

Observatory Compe''ve analysis

Ra'ng Coopera'on workflow

Interna'onal sanity check Investments


1 Understanding Mapping na'onal innova'on system resources and agents

1. Understanding

Your Ecosystem EXAMPLE

TEXT Go ahead

and replace it

2.

Building your Scou;ng

2 Building Building and priori'sing the Ecosystems of the region to organise the value chain according to innova'on and compe''veness demand criteria

3 Search Establishing the Innova'on Ecosystem Search and semng up the plajorm to access, as a first stage, the na'onal innova'on of Israel and Singapore

EXAMPLE TEXT Go ahead and replace it with your own text.

3.

Matching your Strategy with Disrup;ve

Innova;on

EXAMPLE TEXT Go ahead and replace it with your own text.

4. Deal with the World of

Innova;on

4 Connec;ng Semng up an Open Innova'on Office that manages the interac'ons of the system agents in projects


Our approach


Leadership Team

Julio Lage President

Carlos Marqueríe Founder, Global Partner and CEO

§  Advisor Naje' VC Fund §  Director at Union Fenosa, Indra,

CapGemini and Coopers and Lybrand §  Consultant at KPMG and Principal at

Arthur Andersen §  Law graduate from Complutense and

MBA -‐ IE Business School and London Business School


Our Team

§  Telecommunica'on Engineer, PhD in Computer Science and MBA in Knowledge Engineering at Polytechnic University of Madrid.

§  Long experience in the banking industry, where he held several Managing Director posi'ons: IT % Systems Managing Director at Banesto, Managing Director at Santander Group and Managing Director at La Caixa.

§  Also member of the Board of Banco Herrero and Visa España, among others.

§  Formerly Partner at Arthur Andersen and Founding Partner and President of Europa Management Consul'ng.

§  He is currently Vice President of the "Associa'on of Gallegos" of Madrid (AEGEMA) and Chief Advisor of several companies.

Rafael Delgado Global Partner

§  Law graduate from the University of Valladolid (Spain)

§  He has vast experience in the prepara'on and development of strategies for coopera'on, compe''veness, business innova'on and development, as well as in different management and financial technology companies.

§  He has held various posi'ons in the areas of economy, industry, educa'on, culture and R & D in the Autonomous Region of Cas'le and León. President of Sodical, Society of Capital Risk and Fund Management. President and CEO of Technology Parks of C. and L. , S.A. and Gesturcal , SA.


Leadership Team

Carlos Blanco General Manager

Eduardo Gómez-‐ Acebo Venture Partner

§  MD Universidad Complutense Madrid and MBA IESE Universidad de Navarra

§  Execu've posi'ons in Pharmaceu'cal Industry in An'bio'cos SA Spain and Montedison, Italy

§  Advisor and execu've as well as Board member in Zel'a Group, Genomica, Neuropharma, Sylen's

§  Founder and shareholder of companies in Biotechnology, Mycetus Biotechnology, Soil Biogenics, Seprox Biotech, Renewable Energy, Northeolic, Helionorth

§  Member of the Board of NGOs such as Habitafrica, APS, Vencer el Cancer


Our Team

§  Telecommunica'on Engineer at Polytechnic University of Madrid. MBA at Na'onal Distance Educa'on University. Harvard Execu've Program (Real Colegio Complutense de Madrid).

§  Long experience in the Communica'ons & Media sectors, across a range of companies including Telecom Operators, Informa'on Technology, Broadband Networks, Mul'media, TV and internet companies, in the areas of Strategic Planning, Business Development, R&D and Innova'on, Marke'ng, Product Development and Sales.

§  Innova'on Director at Madrid Network; Director of Broadband Services at Hispasat; Mul'media Manager at BBVA; Digital TV Services Manager at Telefónica R&D.


When it comes to innova;on, we must start from the beginning, but we know it is a

process that never ends.