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

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Presentation on theme: "Working With A Large Company Jean-Louis Trochu Texas Instruments May 2011."— Presentation transcript:

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

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

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  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 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

6 Multiple engagements  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 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

7 Direct Equity Investment May 2011 JL Trochu 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 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 How strategic investors generally differ from VCs

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

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