Reality Ventures®

Investing in tomorrow

REALITY VENTURES gathers and engages a small number of major strategic corporate and financial investors to realize the mining of brilliant ideas in tandem with MINE to create breakthrough technologies and transform them into viable enterprises.

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Mine & Reality Ventures

MINE® and REALITY VENTURES® combined constitute a unique, vertically integrated, sustainable ecosystem for the targeted creation of new technologies and technology companies.

Reality Ventures funds the operations of MINE and, in a series of three secured and possibly optional additional funding rounds, funds the expansion of the start-up companies emerging from MINE and their establishment in the market.

Reality Ventures’ efficient and sustainable funding model for the creation and expansion of start-ups benefits both innovators and investors.

It provides the strategic corporate and financial investors cost-effective, lower risk technology innovation with higher ROI than traditional venture funding.

Our unconventional model is based on: Focus, Talent, Process, and Thrift.

Focus

We have demanding selection criteria that enable us to focus on a short list of high priority technology domains.

We focus on projects with the greatest relevance to industries that we and our corporate strategic investors understand deeply.

We identify likely winners early and focus our attention, talent and financial resources on their success.

Talent

We recruit top talent for the chosen projects. We shape and support their teams. We do not regard prior experience, and its associated cost, as a burden.

Our model is designed to vastly expand the pool of talent we can recruit. Tens or hundreds of thousands of very talented scientists, researchers, and engineers have never considered joining a start-up. Some have brilliant unrealized ideas worthy of pursuit. Others have execution skills honed at topnotch companies. We make it possible for them to become entrepreneurs by removing start-up burdens, providing adequate compensation and creating equity incentives.

Process

We follow a disciplined, five-stage process we call IP Mining. The process makes it likely that projects we undertake will advance and that projects we advance will succeed.

During the first two stages of the five-stage process, members of the project team are MINE employees. When the project is green-lighted into stage three, called Incubation, the inventors, researchers and engineers are given an incentive to join the new entity by the offer of a significant ownership share. Their personal risk remains low.

During Incubation, our corporate strategic investors provide the team with insights and critiques, obtaining in return a window into a company that could one day become an acquisition, a business partner or a lucrative investment.

Thrift

The multi-stage development process avoids incurring costs until appropriate.

To control costs, engineering focus is used to develop an idea into a proof of concept before other overheads are added.

We use a collaborative, non-redundant, and professional distributed development process that saves money.

We conduct some of the research, scientific, and engineering functions in lower-cost jurisdictions.

Five principles of our creation process

A Vertically Integrated Ecosystem

1. Two Components

First, there are two components to the ecosystem that work together and are funded together by the investors.

One component is MINE which forms teams to explore highly innovative ideas and develops prototypes for evaluation in a process called Ingeneering™. MINE provides the expertise from a scientific and engineering standpoint and elements of business evaluation.

The other component is Reality Ventures which Incubates acceptable ideas by forming a company and adding management and a team to build and market a product starting from a prototype. Reality Ventures also Invests in the company and takes it to an Implementation phase in which markets are penetrated, expansion is ongoing, and the company is prepared for acquisition or IPO.

2. Targeted innovation

The second principle of MINE/Reality Ventures is targeted innovation based on areas of focus and/or large markets.

Initially the areas of key focus are for fundamental and scalable platform solutions for cloud computing and related cloud-based consumer and professional applications including data and process distribution, secure communication and transaction processing, image processing, data analytics, visualization, and simulation. There are also several other areas of focus which may be pursued in the future.

Throughout the process, MINE employs a group of extremely talented and respected scientists and engineers to pursue these areas.

3. Efficiency

The third principle is efficiency in the development process.

Money is spent on actual innovation engineering with modest overhead expenses.

By having focus, experts, and cumulative experience, projects started should have a higher likelihood of success.

4. Creating an environment

The fourth principle is that, by creating an environment that welcomes experience and that allows such experienced people to join without the necessity to pursue all the administrative and funding burdens typically entailed as such people attempt to become entrepreneurs, MINE/Reality Ventures avails itself of a broader pool of talent to find and develop ideas. These people will receive competitive compensation, work among a stimulating and respected group of professionals, and can join the company resulting from the project they contribute to, while being granted considerable equity interest in the venture. They will not have to deal with administrative burdens or months spent on the road to try to find capital.

5. Investors

The fifth principle is that the investors who fund MINE/Reality Ventures will be limited in number to two recognized technology companies and three major institutional investors. The strategic corporates are sources of funds and also sources of ideas and people, and in return they get the opportunity to see new ideas developed which they may be able to acquire. The institutional investors are sources of funds but also of review and good governance. All investors will be stockholders of Reality Ventures and members of a governing Investment Committee. Part of the investment in Reality Ventures will be used to fund the development activities of MINE and the balance used for funding investments in projects who meet the criteria for advancement.

Criteria for Excellence

Innovation engineering projects are selected based on two criteria.

VC model vs. Mine and Reality Ventures

MANAGEMENT

DIDIER GAILLOT, General Manager

Didier Gaillot has 25 years of experience in executive finance positions in technology companies, supporting growth in an international environment. He spent 20 years at Dassault Systèmes (DS), where he led the IPO, run financial communication (NASDAQ and Euronext) and M+A completing more than 80 transactions for a total investment of about $2.5b.

He also held CFO positions and provided advisory corporate finance role to software companies outside of DS Group.

He now works on DS special corporate projects and holds board seats in tech companies in France, in the US and in Asia.

Didier collaborated with Rolf Herken on the inception of MINE and Reality Ventures and is the General Manager of Reality Ventures. Since beginning of 2014, he also holds a seat in the supervisory board of RTT AG (ticker: R1T) and provides the company with consulting on Business Administration.

Didier is graduated from the Sup de Co Reims Business School, holds a B.A. in Public Accounting and started his career as a PWC consultant.

Golden Gate Bridge

Contact

Reality Ventures
Voltastraße 5
D-13355 Berlin
Germany

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