2 VC & CVC Stream: The Missing Piece Michael Dimelow VP Business Development, ARM
3 ARM IntroductionGlobal leader in the development of semiconductor IP - R&D outsourcingInnovative business model yields high margins - license, royalties, technology reuseLong-term, secular growth marketsApproximately 1000 licenses Growing by ~100 every yearOver 330 potential royalty payers8.7bn ARM-based chips in ‘12 ~25% CAGR over last 5 years
4 How many ARM’s Do You Have? VolumeOpportunity$1-2$3-6$10-15>$25Average Selling Price of a Semiconductor Chip
5 Strategic Investor: Semi & Software Investment Goals:Direct involvement in ecosystemWindow to technologyLong-term group revenueFinancial returnInvestment strategies:Actively expand ARM ecosystemSeed markets with ARM TechnologyExplore new business modelsAppropriate return
6 Example – Calxeda Inc Company Overview: Developing server chips based on ARM technologyFabless semiconductor companyARM Ownership:UndisclosedStrategic Rationale for Investment:Establish presence in low power server chipsRecent Events:Significant customer traction for ultra low power computeClosed $55 Million Funding Round Q4’2012Engagements
7 Working with Financials Actively seek co-investors that:Keep the company focused on the day jobHave a history of building businessesHealthy debate with strategic’s for the benefit of the companyVisibility of complementary deal flowJointly qualify business model and technology fieldsIdentify portfolio collaboration opportunitiesARM is an active investorWhere an investment continues to serve a strategic purpose
8 Thank you Contacts: firstname.lastname@example.org or +44 77 1000 5575 or
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