 Hello. Apologies for the delay. We've just got lost back and forth around the Qatar National Convention Center. It's a little bit late, but it's going to be a fun session. Hopefully I just want to give you a quick overview of... Can I welcome you? I mean, I just wanted to go. I thought you already done it. No, I did not. I did not. Sorry. I mean, again, thank you. Thank you, Barish, for being here. Barish actually is a senior director in Intel Capital for the Middle East, Turkey, Africa. Yes. All right. Great. Am I missing any geographical area? No. That was the whole emerging innovation center. Great. So, great having him with us. Actually, Intel Capital, I mean, it would be more capable of presenting it more than me, but Intel Capital has been there for long and not so many of our entrepreneurs know that there is an investment in startups, in technology startups that's owned by Intel. So, with no further ado, I would like to leave the floor for Barish. Thank you, Barish, again, for being here. Thanks for the intro again. Thanks for having me. All right. So, I know I'm late, so I want to go fast, and I want to make it as interactive as possible. If you have any questions, hopefully we're going to go through that more than talking about Intel Capital for half an hour. So, we are Intel's venture arm. We do invest in technology companies anywhere in the world from any stage and anything under the IT umbrella. I'm going to tell a little bit more about that, but if you look at any financial institutions, their sole purpose is to make money for their LPs. And what we do at Intel Capital, we layer on top of financial returns, we also help companies to bring strategic impact for Intel, and that's our purpose. We do, again, as a measure, we do write checks anywhere from $200,000 seed stage deal to $200 million pipe deal into a public company. Last month, we've done a $750 million investment into a software company in the valley called Cloud Era, which is a big data company, and that same month, we also do a $200,000 software startup in Russia. So anywhere between those, we are fairly active and agile to be able to do those deals. We have presence pretty much all around the world, and we have invested in around 55 countries so far. And as Matt mentioned, I've covered Turkey, Middle East, and Africa trying to look for opportunities in technology space anywhere again from seed stage deals to all the way up to later stage companies. Again, our bread and butter, though, it's $5 million to $50 million checks, while we also write seed stage and also big deals like $750 million. As I mentioned, we do invest anywhere under the IT umbrella, meaning starting from all the way from technology manufacturing to internet and enterprise software companies. And we found, again, the technology and manufacturing is fairly strategic for Intel, and whereas on the other end of the spectrum, you have companies, internet companies, media companies, gaming companies, where we still think it has a bigger impact in the company. Again, if you think about most of your devices and most of those services run on the cloud and those devices will only chip. So the way we look at it is we either go very strategic all the way down to technology and manufacturing and go all the way up to the application stack to invest into services companies. So what we look for when we're looking for investments around the world? I mean, obviously the number one area that we try to look for is destructive technologies. What are the changes in the technology landscape? Again, on the previous slide, we're talking about new areas like wearables, internet of things. Again, there is a lot of stuff going on in education and digital media. So these are all the areas that we're looking for a destructive technology, a new usage model. How students at schools are now utilizing tablets? Is there adaptive learning platforms? You go to healthcare, there's a lot of things happening with the wearables and internet of things where you could real-time monitor an elderly person in a house and if there's any problem you could pretty much do the first diagnosis all the way from the hospital rather than going into the house or sending an ambulance and bringing down the patient. So there's a lot of things going on there and all those new technologies are definitely very interesting for us. And again, as I mentioned, every deal we do has a strategic link to Intel and most of those areas are fairly strategic for us. We do a lot of things but we want to make sure the entrepreneur and the company has a good alignment with Intel. Again, like any investor says, a solid management team is very important at the end of the day. We help those companies to become bigger and more innovative but the entrepreneurial team, the management team is the one who is going to execute. So we want to make sure the management team is fairly strong, potentially have maybe domain expertise, have a solid team of technologists, marketers and salespeople in the team already. If not, we'll be happy to help but it will be great to have a strong management team. And while these are all good, again, any investor, the number one thing they will look for is the large market, either existing large market or a fast growing market that is going to be large. When we first started the application, investing into mobile applications, that was a fairly small market but it was probably one of the fastest growing markets within the mobile space and now it comes up to a multi-billion dollar market. You have multi-billion dollar markets are being created. The number today is raising at 17 billion valuation which is operating mainly on a mobile app. We really look for a large market and or a fast growing market where we could eventually exit from our companies and that's the last point which is the exit opportunities where we want to make sure we'll be able to exit either in terms of an acquisition, merger and acquisition or bringing the company to public. We could make this interactive. There is no format, I think. Ahmed didn't tell me anything. So if you have any questions, just ask during the process rather than waiting half an hour. We do invest pretty much anywhere in the world. We put 11 billion dollars to work so far. We have multiple funds into specific areas. We have funds to specific domains. We have a 100 million dollar connected fund. We have an education fund. We have an ultrabook fund. We have recently connected devices, Internet of Things fund. And we do also have some regional funds. But the key point I want to make is we have pretty much no boundaries to be able to invest anywhere in a stage as long as it falls under one of the technology areas that we're looking for. This is our 2013 and also the historical score chart, if you will. We are fairly active investors. We usually put around 300 million dollars every year. I mean every single year and we've been pretty consistent about that. Last year we've done 333 investment and sorry, 63 of them were new and the rest were our follow-ons, meaning investing into our existing companies to support them and grow them along the path. We are fairly active in the exit markets. We had around 33 exits last year and that's a fairly large number for any technology fund. We've been recently selected as the number one VC investment firm having the highest number of exits, both for the M&A and also on the IPO track. These are some of the companies we've done just to give you an idea. Snapdeal is one of the largest e-commerce platform in India, which was a fairly large deal. We don't disclose the size but it was a fairly large double-digit number. Clinkle on the other hand, it's a seed stage deal in Stanford. It's a mobile payment app using ultrasound. We have Thalmic Labs, again another series A deal, which is a variable device where you can wear a band and you'll be able to control your drones or your gaming devices. So we do, again, invest in anywhere in the stack in terms of technology and also in terms of stage. Clinkle, seed deal versus Snapdeal, which is a fairly late deal. And these are our exits in terms of IPOs on the right-hand. VQ was in the Japan, it's a fairly large exit. UMI is an IPO video advertising company, and these are the exits we have where we sold it to a larger organization, like mostly in the US, but some of them are outside of the US. Dealmates in Malaysia, for example. And again, we've been doing this for a while, so we have fairly big names under our logo chart here. I've got a question for you. Yeah, sure. It's great to see that within the digital and tech industries... Yeah, thank you. Obviously, oh, that's loud, isn't it? Hello. Obviously, it's great to see the investment that you're putting in here globally, but with the digital and tech industries, you obviously have to budget for a significant failure rate, which is obviously in terms of the new businesses and the skill sets coming up is invaluable to get that. So how does Intel deal with that side of it when you're actually looking to invest in new innovation? Is it a fail rate, Umi? Yeah. I mean, whoever is investing in this business, either as a corporate or as an institutional investor, a failure rate is part of the game. I mean, you will have companies that will fail. And rather than, I would say, digital media versus software or hardware, it's more to do with the stage. So the seed deals or the series A deals, we see more fail, because they are fairly early, higher risk. So you take a lot of risk at that point. You take team risk. The team may not get along. They may not be able to form a team. You have market risk. You have technology risk. You have product risk. You have scaling risk. You take all those at that level, and one of them may blow, and it may not go anywhere. On the later stage, on the other hand, it's a fairly large business. It's not going to go fail. Snap deal is a multi-hundred million-dollar revenue company. So it's more likely it's not going to fail. But, yeah, can we make money of that? That's the other financial piece of it. So in a market like Qatar, which is emerging, and it's obviously setting up, as you can see around us, lots of great new businesses starting here. And obviously, they need a lot more support at this stage. And obviously, I see them in sales here. So that's the sort of thing that you're interested in in terms of investment here as well. So, I mean, we're looking at multiple things here. I mean, like, if there are early-stage companies, this is my first time in Qatar. I would love to meet entrepreneurs and try to see what they are up to. I mean, in Qatar, I'm assuming there are going to be more earlier stages. And I mean, I bet there are later-stage companies, but I think the number I would love to hear your thoughts too, I would assume the early stage is going to be the bigger piece. So in that side, I mean, the key parts we're going to be looking for is this a solid team going after a large market under one of those technology areas that we're looking for. If that is, it's a fairly interesting point for us. I mean, the underlying theme at Intel Capital Days, the innovation, could come anywhere. It doesn't need to be only in US or Europe or China. And I'll show a pie chart showing where our money goes around the world. It comes up anywhere. So we did a CDL in Russia, who is doing a speech recognition engine. So it's a fairly early-stage company. We'll see where it's going to go. But the guys in Russia, which are fairly young two guys, created an amazing technology that is going to go compete with Nuance, which is a fairly large US corporation. I mean, there is innovation everywhere, and I assume it will be here too. I'd love to meet and try to get a better understanding. I mean, you guys, have you been here for a while? Yeah, I've been coming since 2009. So what do you see? I see it very exciting. I think that what's happening here is quite unique, I think, in the region. There's a lot of things starting from the grassroots upwards. I mean, obviously financially, they can enter the market at any point. But I think they have high levels of education in Qatar, and they have a great opportunity to steal that entrepreneurialism and investment to create some great innovation in digital content products. Yeah, I mean, at the beginning of the ecosystem, usually there's a lot of hand-holding to be done. If there is enough talent, and if there are enough engineers, and the sales and marketing equipment present here, I think the rest is really executing a playbook which has been done. I mean, right next to you, there's a guy sitting in Morat. He's done that in New York. So Neurant started an incubation accelerator platform in New York when there was no one hanging out and doing anything in technology in New York. And now, how many companies do you have in Morat now? Seven. Seven zero. Seven technologies. Again, you need those kind of incubation centers, accelerators, whatever you would call it. That terminology is keep getting mixed now. But you need those here to kind of flourish that. And then hopefully investors are going to kick in. But before the accelerators, you need to have the talent base. And it sounds like you've seen a lot of interesting stuff here. So it's probably a matter of time before you start to see more investments into the technology part. So I'll keep going. So what do we do in terms of company building? Again, capital is everywhere. And again, I think we are living in an era where there's an abundance of capital pretty much in any stage. Maybe it's not distributed around the world well, a balance, but there is a lot of capital looking for companies in technology segments. So how do we differentiate ourselves? Again, as I mentioned early on, while we look at for financial returns, we also look for strategic impact. And to create that impact, we pretty much do a lot of hand-zoning moment with the company from customer introduction. So what we do is we have a concept called Intel Technology Days, where we bring our companies in front of the right people at Fortune 1000 companies around the world, from Procter and Gamble, Visa MasterCard to Germany to BMW, and go to China Telecom to SoftBank in Japan. So what we do is we talk to those guys. We have a 15-person business development team. Their sole purpose is to help our portfolio companies. So we talk to these Fortune 1000 companies, and they called us, hey, we are having challenges in mobile and mobile CRM or big data or social media marketing or education, digital education. And then they tell us, okay, why don't you guys bring 10 or 15 of your portfolio companies and we bring the right people in the room, we spend the whole day. So what happens in those meetings is usually within the 12 months, you see most of the time a contract. And again, I experienced that from the companies that I invested in, in my portfolio companies, and it's a major impact. And for a small company and an unknown entrepreneur in Russia to be able to go talk to the CIO at BMW, who is thinking about putting a speech recognition technology into the car. So this is a fairly big value add to the companies. Again, being Intel, we have a lot of engineers ourselves and we do a lot of things from patents to technology development and also sometimes steering the standard organizations. And that technology expertise we try to transfer or share with our portfolio companies as much as possible. Again, there are always gray zones where we can and they cannot. So we want to make sure they collaborate as much as possible to get that kind of expertise transfer on both sides. And in terms of company building, again, the companies, even though every company is unique, I think whoever you talk to will tell that every company has a unique problem, unique situation. But seeing as many deals as we do, having done as many deals as we've done, there are some similarities in terms of building a team, scaling a company, launching a product, going international, doing a business deal with a telco. So that expertise really helps us to guide the entrepreneurs before they get to a certain problem, before they get to a certain stage. So they find it fairly valuable. And in terms of the M&A piece, again, we do pretty much the problem of most active exit market, exit, having seen an exit in around the world in technology space. So that expertise gives us a lot of contacts in the corporate development, from the corporate side to the bankers, to the auditors, to the lawyers, and things like that. And we've seen, again, lastly, we've seen 33 exits. So meaning we've seen a lot of shareholder agreements deals where stock purchase agreement deals, where we know what the corporate guy on the other end is looking for and what the entrepreneur should watch out for. Again, these are fairly complicated and sophisticated negotiation process, and any kind of expertise that really helps them because while we went through 33 times last year, that entrepreneur that we are working with probably have never had it in his life. So all that discussions, all that terminology, all that, you know, negotiation tactics that he's doing as he goes, and again, in an M&A process you need to be fairly diligent because you may be leaving a lot of money on the table, because on the other side there's a corp dev executive where his or her job, daily job is to buy deals. So they are fairly experienced experienced people. And again, the marketing resources is to be able to help our companies around the world on the ground because Intel has offices in 155, I think, countries. So we use our sales and marketing teams around the world to help navigate our entrepreneurs if they want to go expanded to those areas. So the technology days that I was talking about, these are some of the logos that we work with and these guys keep calling us and we work them because Warner Bros is fairly, for example a closed alliance ally for us on the digital media area. There's a lot of things going on in terms of streaming. There's a lot of things going on video advertising around gaming. We work very close with BMWs and other one. They do a lot of things in the cars. They keep telling us about interesting technologies around mobile, around big data, how they could build location-based services into the car, how they can tie it to the mobile phone. So there's a lot of things going on there. And also we do every year a global summit usually in US. This year is November 3rd in Huntington Beach in California. So we try to bring what we do again is we work for our entrepreneurs. We bring all our products here and along with that we bring a lot of industry executives around the world to make sure they spend time with our portfolio companies. The key idea is really to make sure our entrepreneurs network with the right people for three days and have a bunch of educational sessions or generic things like how to hire a VP of sales or what kind of equity should they give them, what should be the salary, how to fire a CTO. There's a lot of this common stuff that entrepreneurs will love to hear from someone and also talk to each other because they each have a lot of expertise and it's trying to create information sharing expertise sharing platform for it. And one other last point, it's one thing that we do for portfolio companies is our global investment syndicate. Again, as the average time in US from start to exit is around eight years. So it takes eight years to company from start to bring to an exit either IP or M&A in average. So not everything is Instagram and gets sold in a year. So during that eight years you usually need not only one round of financing but you need multiple rounds of financing. In US this is a little bit easier because there's a lot of, there's a major access to capital in different stages but in other parts of the world it's not that easy to get access to the capital. So if you're a series A company you do execute well or you miss certain milestones maybe but you will need a series B to scale out of the country that you're in. So how are you going to bring that series B? So we have 30 plus syndicate members around the world. These are the top investors in their regions and we bring them along with our deals. We share our deal flow. We have pre-signed agreements with these guys. So if you have a deal looking for a series B you go to these guys first. This is the company in Qatar looking for maybe series B for their digital education platform. So getting the guys in China the guys in Russia, the guys in US to look at it and be able to participate in the round the whole idea is to make the entrepreneur's life easy to get the capital focus on the business. So that was the distribution I was talking about. Again Middle East is still not getting a big chunk of the money yet but it is bigger than for us at least, China and Latin America the amount of money that we deploy into the region. That includes, you know, MENA Central Eastern Europe and Russia. So the bigger chunk of our investments is go, so this is 2013, so we invested 333 million so half of it almost went to US and the rest split around different regions again Asia Pacific excluding China is getting a big piece so that includes Japan, Taiwan you know, but now emerging countries like Indonesia Malaysia, Vietnam and western Europe is still getting a big chunk too and dominantly driven by you know the England's of the world's Germanies and now increasingly northern Europe Finland, especially in gaming and the next step is really Middle East Central Eastern Europe and Russia so this is I think this is my last slide so happy to answer any questions or let me know if you have any questions. Yeah, sure. I've been actually, it's quite interesting in terms of the models I was at GDC in California last year. Yeah, very good I ran a big open event and also initiative in the United Kingdom. Thank you very much with regard to video gaming taking it from 11 years in education right through to outputs of video game companies I'm just delighted that you referenced the gaming industry twice within this because I think that one of the key areas within Qatar is that there is a huge interest for video games and us just over here who are making great video games it's a personal thing. How do you actually see the rise of the mobile device and the opportunities that are going to arise through gaming and gamification globally? Yeah, I mean I love gaming and I've done multiple investments in gaming and it's been very profitable for us. There's a major disruption going on every industry and I think wherever industry you're working on it's getting right now disrupted by social and mobile and potentially the big data. There are a lot of big companies being formed around each of this disruption and mobile is one of them. I reference Uber but within gaming the whole distribution channel has been disrupted before you develop two years of game the titles and then go to one of the distributors to come out and make sure put your game into the shelves or you go through the EA's of the world to kind of publish you but that whole system got disrupted but Facebook first and you've got companies like Zynga formed up and then that was a fairly short period of time where you create Zynga like companies which is multi-billion dollars even though it got criticized but again it started in I think in six years you're creating a multi-billion dollar gaming company it's fairly impressive and now what's happening is with the mobile the whole distribution channel has again changed. Now Zynga's of the world which was just created and now trying to find how to get in front of the users and companies like Supercell or Rovio or kendicrushking.com has been created so you really need to understand the distribution channel because at the end of the day the gaming has the gaming piece either it's been evolving in terms of the casual MMORPGs the later stage hardcore games but the distribution channel changed a lot so how do you get to those users and the economics from you know you pay the game and then play to free to play and pay within the game free to play model has been fairly dominant so it creates a lot of interesting opportunities I mean kendicrush is an amazing game so there are 2012 revenues I think around 180 million dollars 2013 revenues is 1.8 billion in a year they 10x the revenue I'm not sure where else you see this it's I mean again there are other challenges like you know how do you get other other hits but it's a very profitable area if you do it well and again from UK right absolutely yes I have an incubation there for the video game companies predominantly and I mean one of one of the teams that we built up just looking at the Xbox one being here today I mean using that device they're pushing very much into the indie market because they're finding that there's great success here for startup businesses with the mobile device so they were one of only 20 companies that Microsoft picked to showcase at Xbox at GDC this year because the fact that yeah because of the fact that it's got a cross-platform approach so you can play it on any of the devices and I guess that this is the model that is going to increasingly go forward over the next year or two and so for a market like Kata it's the perfect timing for it because you know in terms of growing it from grass shoots got a lot of younger businesses their opportunities are getting product to market a greater probably now than ever yeah I mean is there any gaming entrepreneurship or how many people are entrepreneurs here Faraj Faraj here's a very brilliant young gaming entrepreneur actually from Kata so here you are good to meet you nice to meet you too it's a great opportunity you get to pitch it in like 10 seconds what do you do well first of all I apologize I wasn't paying attention yes I believe it has a very big potential the market is still green as you can call it the green field so no one is there at the moment there is a lot of a very big potential to be exploited and yeah there is a lot of small very minor initiatives that are basically what I want to say is that very serious investors that are the very serious initiatives that are there out in the minor region are probably a number of companies that you can count in a single hand so there is no a lot of big companies going in that area there are a few initiatives I'm saying but not really serious yeah so I mean one big problem in the gaming investment though is or challenge I should say is there is the hit nature right it's that makes it very risky for all of us so as an investor you just want to say let's see if it's going to work and you try to invest right before it's picking up but every company almost at the beginning they all look like similar right they're all growing and there's that tipping point where they start going up and you're going to pick it for me at least my job is to pick right before you go out basically it's an R&D nature so you have to research a lot and suddenly you will find out that one of your research it's your hit yeah let's chat after this is there any other question okay yeah hello as an investor I can understand that the investor is always trying to find an exit but what do you prefer finding an exit or expand with the company and to what limit I mean it's there is a natural I think point where the entrepreneur wants to take it to an exit so one of the difference I forgot to mention thanks for the questions we don't have a time limitation in terms of getting out of a deal a lot of the funds have certain investment period and then harvesting time for us we have no constraints around what we want to get out so we have one company called smart technologies is an education company started by a husband and wife entrepreneur out of Canada they started in 93 I think we invested in 95 or something like that and we bring them so the company got big and they expand and in 2010 entrepreneurs wanted to go to an exit so we hired a banker and we did all that stuff so the company went public in New York Stock Exchange in 2010 after 15 years but so there is a natural kind of point where the entrepreneur is like okay we got a 2 billion dollar all for visual sound and then we don't say no but you know we never pressure because at the end of the day it's the entrepreneur who might really build a big company as you just mentioned so you help the entrepreneurs to sell the share like if they reach a proper so yeah we help them to run through the process again we are not going to sell ourselves but we will make sure they work with the right banker for that specific company because every banker has talent into specific regions, specific themes, specific stage so we want to make sure they work with the right people navigate through the process and if everyone decides to sell then we sell, I mean we'd never pressure anyone to go after an exit Thanks I just want to ask again about the 5% and the leads, why is it that way is it like there is no focus on the leads to invest by the capital or is there not enough pitches from the region that qualifies to your investment I mean I think it's more the latter but it's a combination in one sense because I I used to be in San Francisco, I moved to Istanbul covering this region in late 2012 and before then there was a colleague of mine I think he's been looking at for 2-3 years so it's very new whereas in US we've been doing it for 20 years right investment in Europe is probably 10 plus years so it's new, it's coming up so there is that but on the other hand we don't see enough deals we see in Silicon Valley we see way many more deals than what we see in Silicon Valley so that's in Silicon Valley so that's why a certain percentage of him gets closed that gets the 5% number What do you do with the companies here do you invest in them where they are incorporated or about to get incorporated depending on the country they are in or do you actually prefer US laws and move them to San Francisco or somewhere else we don't care the entrepreneur should do the best for the company whatever makes more sense we can invest in any form there are certain things we cannot but pretty much any legal structure we should be able to invest