SRI Ventures E U L A V G N I T S A L G N I T A E COMMERCIALIZATION AT SRI R C SRI International’s groundbreaking discoveries and innovations have led to billions of dollars of marketplace value. An independent research institute in the heart of Silicon Valley, SRI has launched more than 40 ventures with a total market capitalization exceeding $20 billion. We have developed hundreds of high-value licenses. Every day, people around the world use innovative products that SRI pioneered, including the computer mouse, the Internet, HDTV, and Siri. SRI Ventures identifies important and disruptive market opportunities to bring SRI’s breakthrough technology solutions to the marketplace, either through licensing or the formation of new companies. SRI Ventures commercializes innovations resulting from our government- funded R+D to drive new economic growth. M ptive arke sru t O i p D p o r t u n i t y SRI VENTURES B r e TEAM a k t h ro u g n h io Te ut chnical Sol SRI’S PROCESS FOR CREATING VENTURES + LICENSES • Launch road show NEW VENTURE • Launch venture or license LAUNCH • Secure funding • Identify venture or license concept • Identify champion and form team • Develop NABC* and quantitative value proposition • Assign SRI Ventures team member to incubate venture or license VENTURE OR LICENSE CONCEPT M A E T S E R U T N E V nVENTION I ADVISORY R BOARD S SRI COMMERCIALIZATION BOARD • Obtain external venture • Obtain SRI Commercialization capitalist review Board seed funding • Prepare detailed business plan • Engage entrepreneur-in-residence • Refine NABC* and quantitative value proposition • Build prototype/demo of *NABC: Need, Approach, Benefits per cost, Competition technology solution A COMMERCIALIZATION MODEL THAT ASSURES SUCCESS At SRI, innovation is a discipline refined over the last two decades. Our process assures repeatable success in both our R&D and commercialization activities. Our approach to creating ventures and licenses is a leading model of innovation. Rather than attempting to push our technology advances into markets, we meet important market needs with SRI-developed solutions. SRI’s process begins with identifying a disruptive market opportunity, developing a breakthrough technology solution with a sustainable competitive advantage, and creating a business plan that brings the value proposition to life. SRI IS A WORLD-CLASS INNOVATION CENTER, CREATING INDUSTRY-LEADING VENTURES THAT CONTINUE TO CHANGE THE WORLD. THEIR DISCIPLINED INNOVATION PROCESS FOR CREATING VENTURES IS UNPARALLELED. —GARY MORGENTHALER MANAGING DIRECTOR MORGENTHALER VENTURES OUR GROWING VENTURE PORTFOLIO SIRI NUANCE INTUITIVE SURGICAL FIFO ORCHID CELLMARK TRAPIT AVERATEK ARTIFICIAL MUSCLE SONGBIRD HEARING CIC PYRAMID VISION SECURE PRODUCTS TOUT DISCERN LIGHTSCAPE MATERIALS SENSAR SOME OF OUR INVESTMENT PARTNERS MORGENTHALER VENTURES MAYFIELD FUND U.S. VENTURE PARTNERS MENLO VENTURES KHOSLA VENTURES HORIZON VENTURES DRAPER FISHER JURVETSON INTEL CAPITAL KLEINER PERKINS CAUFIELD & BYERS THERE ARE TWO TYPES OF TECH COMPANIES: ONES YOU FIND BY THE HUNDREDS, AND THE RARE GEMS OF DEEP E U L INTELLECTUAL PROPERTY WITH GENUINE MARKET VALUE. A V ONE SUCH GEM IS SIRI, CONCEIVED, ENVISIONED, G N I AND PROTOTYPED AT SRI. MENLO VENTURES WORKED T S A ALONGSIDE SRI, ACTIVELY ENGAGED AS BOARD MEMBERS L G FROM SIRI’S FORMATION THROUGH TO ITS ACQUISITION N I T BY APPLE. IT’S CLEAR THAT SRI HAS WHAT IT TAKES A E TO PRODUCE GREATNESS. R C —SHAWN CAROLAN MANAGING DIRECTOR MENLO VENTURES SRI International 333 Ravenswood Avenue, Menlo Park, CA 94025 SRI VENTURES CONTACT: Norman Winarsky 650.859.2061 [email protected] www.sri.com © 2012 SRI International .