Strategic PartnershipsBUILDING

by Arthur T. Corry VP Partnerships

for market opportunities

a presentation for personnel of

“Partnership”Colloquial Meaning:

Two or more parties in a shared effort with an agreement.

Legal & Business Definition: Parties are legally bound stakeholders with a contract in place.

Important points: ● These ‘stakes’ can be vary greatly. ● Contracted agreements can be monetary or other types of value exchange.

Partnerships accomplish two main values to an organization:

1. Cost Reduction / Efficiency

2. GrowthExamples that accomplish these:1. New Marketing Channels (co-branding, co-marketing & sharing of databases)

2. Channels for Direct Customer Sales Acquisition

3. R&D and Corporate Intelligence

Current Fintech Market Trends for

& our focus on market opportunities to spur growth

Our sector is being created because of a mega-trend,

The UnbundlingOf Financial Services

Services that were under the control of a bank or major financial services providers are now being better served by

networked technology & apps.

The UnbundlingOf Financial Services

is a global mega-trend&

follows the unbundling trend of many industries because of the internet & digital networks

Industries that have Unbundled& are ‘Unbundling’

● The Information Industry: Books, etc - The Internet Itself, Google, Wikipedia, Blogs

● Communication: Email, Mobile Phone Networks, Social Media, Messaging Apps

● Music Industry: Music File Sharing & Streaming Services,

● Video & Movies: Youtube, Netfix, Torrent File Sharing

● Hospitality Industry: AirBnB, Kayak like Travel Agency Apps

● Transportation: Zipcar, Uber, Halio

● Education: Khan, etc

● Finance: Payments, Crowdfunding/lending, Cryptocurrency & Blockchain, Investment Management,

● Government: ID, Deeds, Voting,

● Law: Smart Contracts, Ownership

Why is this Megatrend important regarding Partnerships?

Partnerships are key and of increasing importance. They are the drivers that allow separate unbundled

services to interact.

Our Peers are Potential Partners

FintechExamples:Notice the many opportunities for Partnerships even at a glance.

Win-Wins can be created even within close market positions.

One way to eliminate a competitor, is to make them your partner.

Market Trend Data:

Partnership Structure

a few relevant examples

A macro view

Pyramid of Alliances:

A micro view

Scouting Individual Market Opportunities:

Some tactics I have found successful:

● Cultivate ‘Listening Posts’ Coordinate with Marketing to keep a ‘Shared Toolbox’ / Heat Sheets & other sales-like community-building tools. This allow influencers to speak back to you - a channel strategy approach to intelligence gathering.

● 2-way Communication ChannelsCorporation Communication has been top-down. Organic Communication now can flow in all directions if technological safeguards are in place. Internal example: Slack. External example: Twitter.

Partnership BuildingInternal Realities:

● Requires cross-departmental collaboration● And it benefits all departments

Upfront Written Agreements:A REQUIREMENT

Ensuring:1. Clarity of understanding2. Legal recourse3. Fair distribution of gains

Building Win-Win Scenarios:Keys Points:1. Equal value flow on both sides is required but need not be monetary.

2. Written Agreements in place upfront & amended as partnership grows.

3. Optimum partners, in alignment with goals, creates defensibility.

4. Share only the appropriate information & ‘silos’ partner interaction internally.

5. De-risk every agreement with terms & sometimes vesting.

6. Be realistic in required terms yet ambitious in envisioned goals.

7. Make the agreement agile, iterative & flexible to support scale and growth.

Successful examples from my career:Joint Venture Partnerships & Acquisitions

● Versapay / Frisco ATMs, bringing customer sales channels, & direct investment capital

● PlanetEye / iStopOver Acquisition: product positioning - PlanetEye (a travel directory website) to fit within iStopOver (an early, Canadian AirBnB clone) - a $3 Million Acquisition of PlanetEye occurred.

● Hovr.it / Slyce Aquisition: INcubes launch $15K investment - aquisition at $3.5M - leading to aquiring company Slyce IPO.

● INcubes partnership based Accelerator model: Government funding ‘investment of $15K per company’ - all ‘acceleration’ services were provided by non-monetary partnerships - hundreds of mentors & service providers.

Successful examples from my careerEvents to build community:

● Lean Startup Machine Toronto - sponsorship and marketing partnership, brought the franchise to Canada & created co-marketing deal flow of incalculable value.

● Bitcoin Expo Toronto - international awareness within “bitcoin circles” and some mainstream press

● Lean Weekends - sponsorship and marketing partnership - created via a partnership I lead

● World Elevator Pitch Tour - CN Tower - international press & community awareness

● CYBF / INcubes partnership - recognized for spurring economic activity in the greater Toronto region

Case Study Brief - Market Example:

1.Successful alliance: Starbucks & Kraft

Basic Terms:● Starbucks packaged coffee - agreed distribution through Kraft only.● Mutual partner benefit.● Kraft provides it’s distribution infrastructure & expertise● Starbucks gained quick entry into 25,000 supermarkets in the USA. 2.

● Supported by the marketing of 35000 Kraft Salespeople.● Kraft gains a top-tier coffee brand and optimum entry into the coffee segment.

Obvious Consideration:Consider there was no partnership. How well do you think a “Kraft Coffee” would have done?

Result: Starbucks (grocery store shelves products) turnover continued to grow after partnership going in one year from $50M to $500M1. Forbes Magazine Article Starbucks & Kraft Alliance 2. Marketing Strategies and Alliances of Starbucks - Paper by Rebecca Larson of Liberty University

Other Starbucks Alliances:● American Airlines

● Apple & Itunes

● Many Acquisitions ○ (made by Starbucks such as Tata Coffee)

● Barnes & Noble

● Pepsi Co

Starbucks 2015 Valuation: $67B

“...each of our several hundred Starbucks Partners and family members… (are treated with the philosophy of)

‘people over profits’. ... as a manager, you have to come up with ways to

encourage entrepreneurship.”- Howard Schultz Starbucks CEO

Strategic PartnershipsBUILDING

by Arthur T. Corry VP Partnerships

for market opportunities

a presentation for personnel of