Open Innovation strategy for entrepreneurial ecosystems. Wayra relaunch.

1. WAYRA
We scale startups.
2
Sept 20th 2018

2. “We were promised flying cars,
and instead what we got
was 140 characters”.
the time is now
3
Peter Thiel
OPEN INNOVATION

3. the time is now
4
AI meets IoT meets Decentralized
networks meets low latency
broadband Connectivity
The beginning of an era.
OPEN INNOVATION

4. the time is now
The Elephant needs to dance
with the Gazelles.
And not step on their toes.
5
OPEN INNOVATION

5. WE ARE the world’s most
global, connected & tech-driven
Open Innovation Hub
Our Vision
Our Vision
We are the most
global, connected & tech-driven
Open Innovation Hub in the world.
6
OPEN INNOVATION

6. CORPORATE & GOVERNMENTS
OUR FUNDS & OTHERS
TECH PARTNERS
GLOBAL BU’s
& OB’s
…
…
…
WE ARE AN OPEN ECOSYSTEM
We accelerate Telefonica’s business globally with local presence
+50 OPEN FUTURE_ HUBS
11 WAYRA HUBS
HUBS
7
OPEN INNOVATION

8. 400+
ACTIVE
STARTUPS
100+
STARTUPS
WORKING
WITH
TELEFONICA
160+
MILLIONS
EUROS
INVESTED
1.2B
EUROS
INVESTED
BY OTHER
PARTIES
IN OUR
STARTUPS
40M+ WAYRA
120M+ INNOVATION
FUNDS & TELF
VENTURES
270M+ WAYRA
925M+ INNOVATION
FUNDS & TELF
VENTURES
9
STARTUPS VALUED
OVER $50M
20+
EXITS
50+
OPEN INNOVATION

9. WHY WAYRA?. TODAY
It is the time to accelerate
Telefonica's business.
10OPEN INNOVATION

10. JOINT BUSINESS
DEVELOPMENT
WHY WOULD ENTREPRENEURS WANT TO WORK WITH US?
GO-TO PLACE
IN ECOSYSTEM
OPEN COOPERATION
& GLOBAL NETWORK
SKIN IN
THE GAME
BRAND RECOGNITION
& COMPLEMENTARY
ASSETS
ACCESS TO EXPERTISE
& TECHNOLOGY

11. 5
SIMULTANEOUS
PLAYS
WHAT
WE DO
01 02
03
04
05
Innovation
Scouter
Micro-CVC
Business
Generation
Open APIs Ecosystem
Alliances &
Partnerships
12

12. INNOVATION
SCOUTING
1
We find tech
disruptors
Wherever they are
And match their
solutions with the
corporation needs.
13

13. MICRO C-VC
2
We focus on more
mature startups
around our strategic
interests w/ flexible
terms.
14

14. OPEN INNOVATION
IoT (Smart M2M-Kite)
Video & AR/VR (Movistar Play)
Advanced Data Analytics
AI – ML (Aura)
Cyber Security (Elevenpaths)
Fintech (Movistar Money)
Operational efficiency
Future of Telco:
Blockchain, Edge…
Where do we invest & how?
ROLLING
PROGRAM
FIT FIRST,
INVESTMENT
FOLLOWS
NEVER
ALONE
BIGGER
TICKETS
UP TO $150K

15. BUSINESS
GENERATION
3
Startups are an
outliers’ game.
We scale startups
replicating best
practices.
16

16. OPEN APIS
ECOSYSTEM
4
Our global
platforms enable
developers
& startups to access
customers in our
footprint & beyond.
17

17. Open APIs ecosystem
KITE as a foundational element
2G NB-IoT LTESIGFOX LTE-M3G
SECURITY
END-TO-END APPLICATION
MANAGED CONNECTIVITY
NETWORK
TECHNOLOGIES DEVICES
ANALITYCS
Open APIs ecosystem
KITE as a foundational element
2G NB-IoT LTESIGFOX LTE-M3G
SECURITY
END-TO-END APPLICATION
MANAGED CONNECTIVITY
NETWORK
TECHNOLOGIES DEVICES
ANALITYCS

18. Telefonica SIMs
6 months free
global
connectivity
Modules and
devices to test
Open APIs ecosystem
IoT Activation Kit for startups
Access to
Telefonica’s IoT
connectivity
platform
Access to
Telefonica lab to
test E2E solutions
Test LPWA
networks

19. ALLIANCES &
PARTNERSHIPS
5
Partners make us
stronger and help
us serve
entrepreneurs
better.
21

21. THE NEW
Wayra
23

22. OPEN INNOVATION
REPOSITIONING
& REBRANDING
Telefonica Innovation Area
Core Innovation Open Innovation
LEVEL 0.
CORPORATE
LEVEL 1.
BUSINESS UNIT
LEVEL 2.
INNOVATION
CATEGORY
LEVEL 3.
PROJECTS &
INITIATIVES
ENTREPRENEURIAL ECOSYSTEMS
PARTNERSHIPS
OPEN
FUTURE_
PUBLIC- PRIVATE
LOCAL PARTNERS
OTHER
PARTNERSHIPS
FUNDS
• INNOVATION FUNDS
• TELEFONICA VENTURES
• SCOUTING OFFICE SV/IL/CH

23. 25
WAYRA BRAND CODES
NEED A REFRESHING
OPEN INNOVATION

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110
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30. 32
112
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31. 33
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32. 34
115

33. 35

35. Success Stories
38

36. 01RAISED CAPITAL: $4.1M
BY INVESTORS LIKE KASZEK VENTURES,
NXTP LABS, SUPERVIELLE…
02TELEFONICA & INCREASE:
PRODUCT IS PART OF TELEFONICA
ARGENTINA SALES PIPELINE FOR SMBS
IMPROVEMENT IN PROCUREMENT;
MARKETING, NEW PRODUCTS
INTRODUCTION PROCESSES
INCREASE CARD CEO
SEBAS CADENAS
INCREASE
DEBIT & CREDIT CARD MANAGEMENT
SOFTWARE FOR SMBS
40 EMPLOYEES FROM BUENOS AIRES;
ARGENTINA
39

37. ENTERPRISE SAAS FOR SMBS IS A PILLAR
OF TELEFONICA’S DIGITAL OFFERING &
STARTUPS CAN OFFER INNOVATIVE
PRODUCTS FOR OUR SALES CHANNEL
“The impact achieved by adding startups to our B2B unit is
not just the revenues, but how we transformed the
processes in our whole área: from product to marketing to
procurement.”
JOSE LUIS AIELLO
VP B2B Telefonica Argentina
OPEN INNOVATION 40

38. 01
02
COUNTERCRAFT FOUNDER
David Barroso
COUNTERCRAFT
IS A CYBER DECEPTION
PLATFORM THAT DETECTS AND RESPONDS
IN REAL-TIME TO TARGETED CYBER
ATTACKS.
25 EMPLOYEES
OFFICES IN SAN SEBASTIAN AND LONDON
RAISED CAPITAL: $4.6M
INVESTORS INCLUDE: WAYRA, GCHQ,
ADARA VENTURES
TELEFONICA & COUNTERCRAFT
COUNTERCRAFT HAS DEVELOPED A
DISRUPTIVE SOLUTION THAT USES
INNOVATIVE TECHNIQUES TO DETECT,
DISCOVER AND MANIPULATE HOSTILE
PARTIES.
THEIR PRODUCT IS INCLUDED IN TEF’S
SECURITY PORTFOLIO FOR KEY
CUSTOMERS.
41

39. CYBERSECURITY
PROACTIVE DETECTION &
RECOVERY FROM THREATS WILL
MAKE THE DIFFERENCE. SECURITY
WILL BE EMBEDDED EVERYWHERE
“Introducing startups into our product’s
pipeline has led to a significant increase of
revenues in our business”
PEDRO PABLO PÉREZ
CEO ELEVEN PATHS
OPEN INNOVATION 42

40. 01
02
Founders (CEO & CTO)
JUAN CARLOS RIVEIRO
ELISENDA BOU
VILYNX
ENABLING MACHINES, FOR THE FIRST
TIME, TO LEARN BY THEMSELVES IN ORDER
TO LET THEM HELP US.
50 EMPLOYEES.
OFFICES IN BARCELONA, PALO ALTO AND
NEW YORK.
RAISED CAPITAL: $ 14.5M
INVESTORS INCLUDE: KIBO VENTURES,
RIDGEWOOD CAPITAL, CAIXA CAPITAL RISC
TELEFONICA & VILYNX:
EXTRACTING METADATA FROM VIDEOS
THROUGH ML ALGORITHMS.
CONNECTING THE AUDIENCE TO THE
VIDEOS THEY LIKE.
43
Innovation Funds

41. VIDEO
“PERSONALIZATION IS THE NEW
BLACK. NOT ONLY IN TERMS OF
CUSTOMER EXPERIENCE BUT ALSO TO
MANAGE THE CUSTOMER LIFE CYCLE”
“Startups will help us to find innovative AI algorithms
and tools to offer our customers’ a unique and enriching
video experience they can’t find elsewhere.”
PAULA FIGUEROA AVARENA
DIRECTOR LATAM VIDEO, TELEFONICA
OPEN INNOVATION 44

42. 01
02
YBVR FOUNDER
HECTOR PRIETO
YERBA BUENA VR
YBVR TECH POWERS NEXT-GEN VR/360
VIDEO EXPERIENCES, PROVIDING SUPER
HIGH-RES STREAMING (8K LIVE 360),
INSTANT CAMERA CHANGE & SHARED
EXPERIENCES (AVATARS)
11 EMPLOYEES
MADRID AND SILICON VALLEY
RAISED CAPITAL: 3M€
INVESTORS INCLUDE: WAYRA, GVR
FUND, HBS ANGELS…
TELEFONICA & YBVR
YBVR JOINS EDGE COMPUTING AND VR
TO OPTIMISE BANDWIDTH
REQUIREMENTS AND THEREBY IMPROVE
USER EXPERIENCE. THIS IS KEY GIVEN
THE IMMINENT ARRIVAL OF 5G
TECNOLOGY AND 8K RESOLUTION,
WHICH ARE IMPORTANT FUTURE
REVENUE STREAMS FOR TEF.
45

43. FUTURE OF TELCO
WITH EDGE COMPUTING IN THE NETWORKS,
TELCOS COULD DELIVER VR EXPERIENCES
THAT ARE INDISTINGUISHABLE FROM ACTUAL
REALITY.
“Through Open Innovation, we are able to take the first steps
to offering our customers exciting new VR experiences.”
DAVID DEL VAL
DIRECTOR PRODUCT INNOVATION, TELEFONICA
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OPEN INNOVATION

44. 800+ 400+ 100+ 40
+50 Exits Current Active Portfolio Current Fit Champions
MEASURE
OF SUCCESS
FIT, MATURE
FIT, SEED
NO FIT, SEED
Focus in
outliers
July 2018
100+ Startups work with Telefonica
OPEN INNOVATION 47

45. Organizational learnings &
Cultural shift
Future trends scouting
Competitive Advantage
Institutional relations &
branding
The innovation
ripple effect
Hard $$ need to be
measured,
but the impact is
wider & lasting
New Revenue Streams
Costs savings
Financial ROI
OPEN INNOVATION 48

46. FUTURE TRENDS
SCOUTING
49
OPEN INNOVATION

47. INSTITUTIONAL RELATIONS
& POSITIONING
50
OPEN INNOVATION

48. COMPETITIVE
ADVANTAGE
51
OPEN INNOVATION

49. ORGANIZATIONAL LEARNINGS
& CULTURAL SHIFT
52
OPEN INNOVATION

50. 2020
53
WHAT IF?
Over 200 startups work with Telefonica to drive
meaningful revenues & cost efficiencies.
We have a thriving ecosystem of developers & startups
using our global digital products via open APIs.
Cultural shift infects the whole corporation driving
digitalisation and agile processes.
OPEN INNOVATION

51. 54
HOW?
OPEN INNOVATION

52. THE
RULES
ARE NOT YET
WRITTEN
OPEN INNOVATION 55

53. 56