A decade after joining phone operator Verizon’s nascent corporate venturing unit and Mark Smith, executive director at Verizon Ventures, seems to have been moving at an ever-faster pace.
Smith, nominated by John Doherty, senior vice-president for corporate development, said: “Verizon Ventures is an evergreen multi-stage corporate venture program building meaningful connections between Verizon and the tech community through direct investments as well as a variety of engagement programs and events.
“I joined my colleague Dan Keoppel as the second member of the team in 2007. After the first five years of the program we had made a total of nine investments, one of which I had led.
“Fast forward to 2016 and we now have a team of 14 people, have made more than 70 investments, and placed over $300m of Verizon’s capital to work helping entrepreneurs accelerate their businesses.”
His one deal has expanded commensurately. Smith said: “Over my years on the team I have worked on over two dozen deals and I currently have responsibility for 15 active portfolio investments. While that sounds like a crazy number, we have a very strong development group who I work with day in and day out to figure out how we can bring value to the relationship.”
He said his current portfolio companies were AdStage, Benbria, Civis Analytics, MapD, Verdigris Technologies, AdTheorent, BL Healthcare, Kiip, Qualia Media – formerly LocalResponse – MobileRQ, Payfone, Rounds, Urban Airship and Q-Sensei.
The range and scope of these deals have also expanded. Smith said: “Early in our program’s existence our investments were very tactical. For a period of a few years on the investment side it was a challenge to convince our investment committee to look beyond the known adjacent spaces of our current businesses and product roadmaps.
“As everyone became more comfortable with our processes and judgment and investment outcomes the range of potential deals we could do expanded. Also, I think we have universal understanding and almost urgent appreciation that disruptive competitive products and services can come from any vector and that Ventures provides a great window into new potential ideas and businesses.”
Smith added: “We have had a number of positive exits, which, of course, is good for the financial calculations that support our program.
“As we have expanded the program we have had a great opportunity to bring more talent and diversity to the team. Within the larger Verizon organisation I see greater understanding of what we do, the expertise and connections we have, with the result that we get early or first calls from executives on many topics of interest or are sought out for feedback and participation on internal projects often with our portfolio companies.”
His former portfolio companies include:
• Invidi Technologies, an advertising technology company agreed to be acquired in November by AT&T. If completed as planned in this quarter, AT&T would hold a controlling stake in Invidi, which would continue to operate independently, with WPP remaining as a minority shareholder and Dish joining as a new investor.
• Run, which was acquired by Publicis in October 2014 through its Starcom MediaVest Group.
• BlueKai, a data services and technology company acquired by Oracle reportedly for up to $400m in February 2014.
• 4Home, a home automation device maker acquired by Motorola Mobility at the end of 2010.
But Smith said: “Importantly, we continuously raise the bar on our development and engagement activities.”
He helped establish the Verizon Powerful Answers Award Challenge and back in September had just back from an event at Verizon headquarters to foster “cross-portfolio networking and cooperation as well as exposure to our executives” for the 20 portfolio companies that presented and 400 RSVPs from our company.
And longevity in the industry has given pithy perspective on what has brought success: “Stay focused on actions that enable entrepreneurs to succeed. Work with other CVCs on broader policy and industry issues. Share best practices.”
And win, he might have added. “Before joining Verizon Ventures I was part of Verizon’s mergers and acquisition group which I joined from Lehman Brothers. For about a dozen years I used to blow off steam by competitive racing – swimming, triathlons and marathons. I have hung up my bike and goggles for competitions and my current focus is on tennis. Billie Jean King said: ‘Tennis is a perfect combination of violent action taking place in an atmosphere of total tranquillity.’ I still like to win, but the social part of tennis is more enjoyable and less wear and tear on the body.”