1. cogentic
clear strategy | precise execution
Innovation | Incubation | Investment
Case Studies
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 1
2. Business Development: DivX, Inc.
Innovation | Incubation | Investment
Challenge: DivX, the leader in MPEG4-based video compression for PCs, needed
to enter Consumer Electronics (CE) to extend its reach.
Solution: Created strategic plan to enter CE markets through DVD and set-top
box (STB), set licensing strategy, and acquired key IC, OEM, and
ODM alliances.
Benefit: DivX technology is embedded in DVD players, DTVs, STBs, portable
media players, and represents over 70% of their revenue in 2009.
Successful CE market penetration powered their IPO (September
2006), which raised over $600M. Sonic Solutions acquired DivX in
June 2010 for $320M.
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3. Capital Sourcing: Morphlix
Innovation | Incubation | Investment
Challenge: Morphlix sought funding of $1.5M for development and marketing.
They planned to become the first secure delivery system of movies at
full HD (1080p) resolution to consumers via removable devices, retail
kiosks, and the internet.
Solution: Strategy was developed to target 50-80 investors known to participate
in media and entertainment technology. Outreach to both VCs and
strategics performed over a four month period.
Benefit: Cogentic was able to secure the first $1.5M of funds for Morphlix, as
well as help them to initiate licensing discussions with major studios.
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4. Tech Strategy: Sony Corporation
Innovation | Incubation | Investment
Challenge: Sony Electronics needed to investigate opportunities and develop
strategies for its next generation, SOA-based product suite for the
post-production industry.
Solution: The project was done in two phases: (a) industry and competitive
research on the ecosystem; (b) strategic recommendations on alliance
partners, competitive strategy, and pricing methodology.
Benefit: Internal funding for the program was provided, and Sony Electronics
featured its Media Backbone workflow solutions at NAB2010.
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5. Business Development: LSI Logic
Innovation | Incubation | Investment
Challenge: LSI Logic needed introductions to key executives at post-production
facilities and the major Hollywood studios to increase adoption of their
new advanced MPEG codec technology.
Solution: Cogentic made strategic introductions resulting in meetings with CTOs
and key executives at the top three studios and top four post houses.
Briefing presentations prepared LSI executives prior to all meetings.
Benefit: LSI Logic trials were established at each facility, and engineering
development programs with LSI Logic’s integrators were accelerated
by six months versus competitors, helping retain >40% market share.
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6. Capital Sourcing: Green Earth Fuels
Innovation | Incubation | Investment
Challenge: Green Earth Fuels, an innovator in bio-fuel technology and processes
targeted to raise $80 million in an initial round of capital to fund
expansion, and infrastructure development
Solution: Team members Richard Beleutz, Robert Dolan and Eric Knight
developed a syndicate strategy to generate global investor interest
Benefit: The team was successful in raising $80 million in an initial round of
capital from Carlyle Group, Goldman Sachs and Riverstone Funds.
The syndicate subsequently funded a $180 million follow on offering.
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7. Capital Sourcing: VSE
Innovation | Incubation | Investment
Challenge: Virtual Space Entertainment (VSE) created the world’s first 1080p
virtual world, and needed to raise $5M to $8M in its Series A round.
Solution: Investment packaging, outreach plan, and investor contact was to be
performed over six month period in two stages, first to secure $1M
and position the company for Series A after abatement of the 4Q-2008
economic downturn.
Benefit: Cogentic secured the capital needed, and helped the company secure
key senior management team members to lead the company through
its next stage of growth. VSE survived 2009, and has subsequently
received additional funding in 1Q-2010.
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 7
8. Tech Strategy: Qualcomm (BREW)
Innovation | Incubation | Investment
Challenge: Qualcomm wanted to deploy its Binary Run-Time Environment
TM
(BREW ) development toolkit to the cellular ecosystem.
Solution: Global market entry strategy was developed, including target market
strategies for US, Korea and Japan.
Benefit: Successful deployment of the technology toolkit, with carriers, handset
manufacturers, and application developers forming an infrastructure
where BREW applications can be purchased by users.
Priority 1 Issues:
Korea - Issue Prioritization
KC1 = Carrier CRM
KD1 = Developer CRM
4.0 KO1 = OEM Sophistication
K D1
KD2 = Developer Sophistication
K D2 KO2
KE2
K R2 K C1
KO2 = Handset Availability
KR2 = Regulatory
K L3
KB1 KB2 Capriciousness
KB2 = Business Relationship
KB3
KE1 Issues
Like lihood
2.0
Priority 2 Issues:
KB1 = Perception of Qualcomm
KB3 = Multi-Linguality
KL3 = Contract adherance
KE1 = End user expectation
0.0 KE2 = End user sophistication
0.0 2.0 4.0
Se v e rity
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 8
9. Business Development: Sony Corporation
Innovation | Incubation | Investment
Challenge: Sony Electronics needed to advance its MPEG-based strategy to
maintain its leadership role in professional broadcast equipment.
Solution: Created two key initiatives: Pro-MPEG Forum (open industry
consortium of broadcasters and OEMs) and Sony’s “MPEG World”
(individual alliances between Sony and other manufacturers).
Benefit: Within 12 months, Sony dominated with its MPEG strategy and
resulting sales over two years was over $300M in MPEG equipment.
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 9
10. Buy Side M&A: Easynet (News Corp)
Innovation | Incubation | Investment
Challenge: Easynet Global Services USA, a managed services provider backed
by BSkyB (News Corp) wanted to consider options for expanding their
USA presence via a targeted acquisition.
Solution: After a discovery process to determine goals and constraints, a long
list of potential targets was pruned to a short list, based on strategic
analysis of factors influencing attractiveness and likelihood of success.
Benefit: Armed with information needed for its decision, the company is poised
to act – however, no further information can be disclosed at this time.
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 10
11. Tech Strategy: Apeer Mobile
Innovation | Incubation | Investment
Challenge: Apeer Mobile, a real-time collaboration tool developer, needed to
maximize its valuation over 12-18 month time horizon
Solution: Corporate and technology strategy were revamped to focus on
mobile, alliance plan created to establish wireless media ecosystem
Benefit: Company engaged in trials with large advertising firms, major
networks and news outfits; in M&A discussions (as of 3Q2009)
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 11
12. Contact Us
Innovation | Incubation | Investment
http://www.cogentic.com
2010-Q4 PROPRIETARY AND CONFIDENTIAL Page 12