VF Creds Book 4 _ individual pages FOR PRINT

WHAT’S NEXT 2020 1

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NEW VENTURES FUEL GROWTH I launched VentureFuel 6 years ago after I was energized by the creativity and breakthrough potential of a few startups I met. They were solving challenges my corporate clients had been struggling with for years. These new ventures had the ability to fuel the growth of my corporate clients at scale with speed and at a lower investment level. By solving the corporates’ challenges, the new ventures would prove product market fit with a blue-chip case study that would be 10x-100x more valuable than if a traditional investment. In 2019, we celebrated our 100th corporate innovation program. Along the way, we’ve launched ice cream museums, conquested the World Cup, helped industries rethink their approach to R&D, facilitated first-to-market pilots across VR, AR, AI and a host of other abbreviations. The startups we have introduced to our corporate partners are today valued at over $2 billion collectively and we often facilitated their first deal. Their secret to success: blue flame thinking. Founders focus all of their attention and resources on hyper specific challenges and focused heat, yielding blue flames. We help our corporate partners stave off disruption, reignite growth and seize white spaces. We combine the energy and disruptive creativity of pioneering entrepreneurs with the resources of the biggest brands in the world to create what is next. I’m more confident today than when I scribbled my vision for VentureFuel on a napkin 6 years ago: New Ventures Fuel Growth for Brands Brands Fuel Growth for New Ventures Our secret sauce is our Global Innovation Community of over 500 Venture Capitalists, Accelerators, Incubators and University Labs that help us see what is next, now. They allow us to peek ahead and open our clients up to new opportunities. They played a pivotal role in putting this book together. I hope that you enjoy our look into What’s Next for 2020 and we would love to help fuel the growth of your business. Fred Schonenberg Founder, VentureFuel [email protected] 3

TREND 1 HAPTICS TOUCH TOMORROW TREND 2 REIMAGINING PACKAGING AND SUSTAINABILITY TREND 3 GHOSTS IN THE KITCHEN 4

TREND 4 IRL CONNECTION TREND 5 THE BATTLE FOR YOUR HOME TREND 6 YOUR CAR, REIMAGINED 5

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TREND 1 HAPTICS TOUCH TOMORROW Gentle taps, vibrations and buzzes from our devices enhance our experiences today, but the potential for touch (aka haptics) is just beginning within our accelerating digital world. Marketers frequently praise sight, sound and motion options, but few imagined that touch could be part of the equation to drive more immersive experiences. Imagine feeling the images you see on any of your screens – from mobile to TV. What if you could shake hands with a hologram of your client who is standing in a conference room across the world? Imagine if you could feel the leather seats of your next car in a virtual showroom, or if your yoga pants became your yoga instructor through vibration guidance. What if when you wanted a coffee, your shoes directed you to the closest Starbucks through a series of taps on your toes? One of the limitations of AR Haptic \\’hap-tik\\ and VR is not feeling the reality in which you are immersed. (noun) But with breakthroughs in haptic technology, rich, three- The use of technology that dimensional shapes and stimulates the senses of touch and textures can be felt as well as motion, especially to reproduce seen. You can now experience in remote operation or computer the sensation of touch in mid- simulation the sensations that air. No wonder the Global would be felt by a user interacting Haptics Technology market directly with physical objects. is predicted to reach $43.62 billion by 2026. 7

LECHAL Lechal smart insoles FOOTWEAR OF THE FUTURE WearableX guided yoga pants There is nothing worse than walking down a crowded street and seeing a sea of tourists approaching, heads down, earphones in, tethered to their phones. What if they could navigate hands-free, hassle-free and heads-up? Lechal uses gentle vibratory feedback on your feet to guide you invisibly. Their smart insoles and smart buckles attach to your existing shoes, promising to keep you afoot of the next turn. WEARABLEX ACTIVATED YOGA APPAREL What if you could take a guided yoga session on your own time and on your own terms? WearableX has made that a reality with their Nadi X activated yoga apparel. Their pants include built-in haptic technology with integrated sensors that guide your yoga flow with gentile vibrations, keeping you aligned and energized. The future of wellness is in real-time feedback, and WearableX knows the right touch to share it. ULTRALEAP REDEFINING INTERACTION What if you could feel tactile sensations with no wearables? No controllers? Just natural interaction. Ultraleap projects feeling directly onto your hands using ultrasound that combines hand tracking and virtual touch technologies. This enables you to reach into the digital world. 8

Touching the virtual world with Ultraleap 9

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TREND 2 REIMAGINING PACKAGING AND SUSTAINABILITY We are what we eat and drink. Our world is becoming what we throw away. The convenience afforded to us by e-commerce, globalization and plastics is destroying the planet and consumers are wising up to choosing brands based on their commitment to sustainability. 91% of potentially recyclable plastic in the U.S. ends up in landfills. Worse, it takes thousands of years to disintegrate and never really goes away. By 2050, the volume of accumulated plastics in the oceans will be greater than that of fish. Production of one cardboard box (usually used only once) causes more than 260g of CO2 emissions, not including additional sticker tape, labelling or filling material. By 2050, the More than 80% of consumers say they feel volume of it is “important or extremely important” accumulated that companies design their products to plastics in the be more environmentally friendly. oceans will be greater than What if we shipped our e-commerce that of fish. items with reusable materials? What if plastic bottles were biodegradable and compostable? As usual, startups are leading the way in creating new products and opportunities to seize this consumer white-space and help save the planet. 11

COVE LivingPackets smart and reusable BO 100% BIODEGRADABLE Notpla edible packaging Cove is the first bottle of water made entirely of biodegradable material. Plastic takes thousands of years to disintegrate, but it will never really go away. Cove’s packaging is more like a flower or an orange peel than plastic. Their bottles are made of PHA, a material that will break down into CO2, water and organic waste over time. This breakdown will occur whether in compost, a landfill or even in the ocean. 100% biodegradable, 100% water. LIVINGPACKETS INFINITELY RECYCLABLE LivingPackets offers smart, secure and environmentally friendly e-commerce packaging with THE BOX. THE BOX combines all logistics and payment into one reusable product, which can help eliminate 100 billion cartons each year, saving 700 million trees, all while delivering a great e-commerce experience. LivingPackets’ take—“Reusing is more clever than recycling.” NOTPLA YOU CAN HAVE YOUR PACKAGING AND EAT IT TOO Both edible and biodegradable, Notpla’s flexible packaging is made out of a revolutionary material combining seaweed and plant matter, making it ideal for on-the-go consumption that doesn’t hurt the environment. With their team of designers, chemists and engineers, Notpla is changing the face of packaging and making brown seaweed the star of the show. 12

able BOX Cove 100% biodegradable water bottle 13

SHOWCASE: TOP RETHINKING MILK COMPANIES For generations we have nourished our families with the Bears Nutrition wholesome deliciousness of milk. Milk enjoys 94% household (Winner) – A nutritious, penetration, but per capita consumption has been declining healthy, convenient as options in the dairy aisle have gone unchanged even as milk-based beverage for consumers’ preferences have evolved. children that contains proteins, vitamins, minerals and omega- To inspire innovation and investment in fluid milk products 3s to help kids stay healthy within California, the California Milk Advisory Board (CMAB) and active. and VentureFuel launched the biggest dairy competition of all time — The Real California Milk Accelerator. Good Citizens Collagen Latte – A global search led to 9 high-growth potential liquid milk Good Citizens combined the finalists, with cow’s milk making up at least 50% of their growing trends of ready-to- formulas. The applicants all committed to producing in drink caffeinated beverages California should they win the competition, thus making an and collagen supplements for economic impact on the dairy farmers and processors of healthy skin, nails and joints to California. create their canned collagen latte in multiple flavors. “We have a product that has been around for a long, long time. With sales declining, we have to find ways to be more Perq+ relevant to this changing consumer audience and reconnect Carbonated with them via new and innovative products,“ said John Beverage – Created with the Talbot, CEO of California Milk Advisory Board (CMAB). mission to take over the soft drink market with a healthy After sourcing the companies, VentureFuel led an all-star alternative, Perq+ has the mentorship program to help the startups go from idea to carbonated, fruity taste of shelf-ready before the giant final event in Silicon Valley where flavored soda with a dairy milk- the finalists pitched to the who’s who of the dairy industry. base for protein and nutrients. 14

“Bringing in entrepreneurs and startups just infused this big category of ours with ideas, and life, and potential.” – Bob Carrol, VP, CMAB 15

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TREND 3 GHOSTS IN THE KITCHEN Ghost kitchens, also known as virtual or cloud kitchens, have investors drooling even if chefs and diners aren’t sure they find them as appetizing. According to Technomic, in 2018 consumers spent $10.2 billion on orders through third-party delivery platforms like UberEats and GrubHub. This growth exacerbates the fact that most restaurants lose money on delivery and that delivery cannibalizes in-restaurant sales. Enter ghost kitchens, which have received over $45 billion in VC funding. A ghost kitchen is a stripped down commercial kitchen with no dine-in options that operates a RAAS (Restaurant-As-A-Service) model where all the logistics of delivery and kitchen infrastructure are taken care of. This enables multiple restaurants to operate under one roof to maximize delivery sales while minimizing overhead on real estate and kitchen costs. But what about the art of cooking? Ghost Kitchen: The unique individual flavors of a chef? These will of course continue to exist, (aka virtual, cloud or but when was the last time you thought dark kitchen) about the unique flavors of McDonald’s or Applebee’s or Dominoes? If you Professional kitchen set want consistent product conveniently up for the preparation of delivered, and aren’t interested in a delivery-only meals with dining experience, this model allows no dining area for walk-in for more consumer choice at greater customers. speed and convenience. 17

KITOPI Kitopi streamlined operations center KITCHENS ON DEMAND Zuul full kitchen support Powering the on-demand food economy, Kitchen Operations Innovation (Kit. Op. I) combines call center operations, kitchen operations and delivery operations to streamline the entire on-demand delivery process for restaurants. Essentially, they cook and deliver on behalf of other food brands. This enables delivery-only locations with minimum capital expenditure and time. ZUUL KITCHENS FULL KITCHEN SUITE OF SUPPORT In the capital-intensive marketplace of the urban restaurant, Zuul provides a home and resources for ghost kitchens. Their goal is to support seamless expansion and new revenue channels for restaurant brands. Zuul’s services include kitchen infrastructure, menu consultation, POS and delivery tech as well as on-site fulfillment. CLOUD KITCHENS PUTTING THE SMART INTO THE KITCHEN Like WeWork for restaurant kitchens, Cloud Kitchens rents commercial space to offer delivery- only restaurants and chefs a place to prepare food without needing the dine-in, capital intensive brick and mortar side of the restaurant business. Advantages for growing restaurant brands include lower real estate costs, more efficient labor and de-risking the food experimentation process. 18

er Cloud Kitchens real estate solution 19

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TREND 4 IRL CONNECTION Technology is supposed to save us time, facilitate connections and make us more efficient so we can spend more time with people we love. The truth is that many technologies, even the ones that are supposed to be the facilitator of connection (social media), replace in-real-life human interaction. This has a catastrophic impact on our lives and our society. 22% of U.S. adults say they always or often feel lonely. 39% of high school seniors say they often feel lonely (up from 26% in 2012). These are shocking statistics given our technological ability to connect with anyone. From the advent of the dryer (replacing the backyard clothesline) to the garage clicker (replacing the serendipitous run-in with neighbors), technology has minimized our need to get together. Teens no longer go on dates or even get driver’s licenses. Startups are racing to solve this epidemic by addressing digital connectedness – the idea that tech can encourage in-real-life meetups and human interaction. Look no further than the evolution of e-sports. What started as gaming 39% alone in a basement evolved into chat, video interaction and now of high school must-attend live events and an seniors say they entire sport ecosystem. often feel lonely despite checking Will the emergence of 5G support the evolution of online interactions their phones an to a level where we feel human interaction? Can technology average of 150 facilitate in-real-life meetups that times a day. transcend the loneliness of an Insta-life? 21

TWENTY Meet up IRL with Twenty LOCATION-BASED FRIEND CONNECTOR Plain Sight connecting the freelance economy Twenty brings friends together in real life by allowing users to see who’s around and who’s down to hang out. Not another social network, a network that makes you more social. According to Teen Vogue, “Twenty is on a mission to remind us what it’s like to unplug, spending time with friends in real life and driving more human connection is the goal.” PLAIN SIGHT BUILDING BUSINESS IRL With the growth in the freelance economy and remote office culture, Plain Sight seeks to help businesspeople connect with each other in all kinds of spaces including events, airplane lounges, coffee shops and hotel lobbies. Anonymous profiles allow users to pick who they want to meet in person based on background and skills, as opposed to what they look like, evening the playing field of the freelance marketplace. BOUNCE A DATING APP FOR ACTUAL DATES It might be shocking to some that singles spend 7 hours on dating apps swiping and chatting for every 1 hour on an actual date. That’s a lot of prep time for minimal real-life connections. Bounce seeks to change that dynamic by setting up dates on the same day as couples match. Users simply choose a neighborhood, swipe, match and meet up at a designated location for a real, IRL experience. 22

Bounce same-day dating experience 23

There are 130,000 startups that launch everyday… We’ve completed over 100+ innovation programs. Tangible Results for Corporate Clients 137% 18.7% $10mm Sales Lift Lift in Brand Savings Per Year Perception 24

Why limit yourself Silicon to the 1% of Valley startups based California in Silicon Valley? We have unmatched access to innovation. A global network of vetted startups and emerging tech. 2+ million 200+ 300+ Startups Worldwide Investors & VC’s Accelerators, Incubators & University Labs 25

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TREND 5 THE BATTLE FOR YOUR HOME Alexa, turn on my lights. Turn on the heat. Turn on music. Measure out 3 cups of water. Add to shopping cart. Call Grandma on Portal. Homes are getting smarter and more efficient, accelerated by 5G and a plethora of connected devices. In December 2019, Amazon, Google, Apple and the Zigbee Alliance unveiled a new working group to promote the adoption of a new royalty-free connectivity standard to make smart home products more compatible. This will undoubtedly lead to more players entering the space with the ability to work with existing hubs and players. With more smart appliances, dynamic lighting, warming toilet seats, voice-activated faucets and automatic window coverings, there will be a battle for your attention in your own home. Nearly a third The total smart and connected of all consumers homes market is estimated to reported that reach $263 billion by 2025. they owned at least one voice- Something to watch: Prashanth activated device Halappa, Senior Product Manager in 2019, up from at Amazon, touted a new Alexa 14% in 2017. feature that will “use inventory sensors in your smart home skill to provide consumption updates and Alexa does the rest. Alexa will let customers know when supplies used by your device are running low or parts need replacement.” No more ordering printer cartridges, toothbrush heads, detergent. 27

PANTRYON PantryOn automated home goods assistant YOUR GROCERY LIST, AUTOMATICALLY Capsules to pastries with Tigout PantryOn is an app-centric household appliance system designed for real- time management of household goods like food and cleaning supplies. Fully automated shopping lists are generated, and the system requires no human involvement in the purchase process. PantryOn saves you time, energy and the money of wasted items. Plus, you’ll never run out of toilet paper. TIGOUT THE KEURIG OF PASTRIES Imagine a machine sitting in your kitchen and a capsule, that together in just a few minutes give you bakery-quality pastries in perfect portions. Their recipes combine quality ingredients with great textures and flavors including muffins, brownies, chocolate fudge cakes, apple crumbles and meringues. You can even control it remotely via the connected mobile app. DREEM HOME SLEEP CARE One headband, a world of solutions to help you sleep. Dreem’s custom approach to sleep uses personalized data to monitor, assess and create a tailored plan of exercises, coaching and support to help users get the best sleep of their lives. 28

Dreem personalized sleep technology 29

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TREND 6 YOUR CAR, REIMAGINED If your car can drive itself, what do you plan to do while you are being driven? Several startups are racing to create your new car experience, once your hands and minds can separate from driving. The average American driver spends just under an hour driving every day, making the car our third living space (after home and work). The global in-car infotainment market is predicted to be worth $35 billion by 2020. Every day in the U.S., over 6 million rides are requested via mobile phone and all signs point to the car becoming a place of free time where you can catch up on emails, shop, watch movies, read or even have new experiences. 31

TELENAV Telenav smart in-car commerce IN-CAR COMMERCE Remarkable ride-sharing experiences with Ivee In-car commerce saves drivers valuable time and money on the road by bringing vehicle payment and order-ahead capabilities to the car. Combining Telenav’s location-based services and advertising capabilities, drivers can take advantage of ordering and paying for their favorite item(s) before they even arrive at their destination. Fully voice-enabled and integrated into navigation, search, maps and predictive cards, Telenav’s technology will let drivers do almost anything from the comfort of their car. WAYRAY AR IN THE CAR Wayray is creating the first holographic AR navigation system for cars that is projected onto windows and windshields. Whether enhanced navigation, safety features or elements to supplement the travelers’ experience, AR integration potential in vehicles offers drivers a new way to own the road. IVEE PASSENGER FIRST MOBILITY If the future of local transportation is in ride sharing services, Ivee wants to take an everyday cross-town trip and turn it into a remarkable experience. From entertainment to WiFi to free swag, each experience will be customized to riders’ mood and where they’re going. Plus, all the cars are 100% electric for zero emissions. 32

Wayray holographic AR navigation 33

TRADITIONAL VentureFuel helps R&D top companies tap into startups to invent the future. IS M E LT I N G 34

“THE BEST WAY TO P R E D I C T THE FUTURE IS TO I N V E N T IT.” – ALAN KAY www.venturefuel.net 35

www.venturefuel.net 36