STA’s mission is to identify and implement the best possible strategy for the external commercialization of innovative Siemens technologies that fall outside of Siemens core business. The STA team has extensive expertise in technology start-ups and in the sale and licensing of technologies. STA also has access to Siemens, and all the advantages that come with being part of a global powerhouse in electronics and electrical engineering.
Since 2001 Siemens Technology Accelerator (STA) has turned innovative technologies and commercial opportunities that have attractive applications outside of Siemens business into successful businesses. These businesses are founded as venture capital-financed start-up companies, or created through sales and licensing deals.
STA employs a proven three-stage approach for external commercialization, beginning with evaluation, through deal transaction, and on to portfolio management. STA’s methodology spans the process from business plan development, to partner and pilot customer identification, through successful negotiation with external investors, buyers or licensees.
Siemens Technology Accelerator:
External commercialization of internal innovations
Siemens Technology Accelerator (STA) was founded in Munich in 2001 as a wholly owned subsidiary of Siemens, and part of Siemens Corporate Technology (CT). Siemens Corporate Technology plays a crucial role in the company’s strategic focus on being a technological trendsetter in all of its fields of business. Its close ties to CT gives STA the ability to quickly and expertly commercialize innovative technologies in areas that aren’t core to Siemens businesses.
STA brings in external investors for every start-up it founds, both to demonstrate its independence from Siemens, and to highlight its competitive strength in the market.
As Siemens’ corporate venture capital organization, Siemens Venture Capital GmbH (SVC) acts as a global venture investor in start-up companies with innovative technologies that can enhance Siemens core business, particularly in the company’s focus areas of energy, industry, and healthcare. For STA founded start-ups, SVC makes investment decisions on a project-by-project basis.
Since its founding, STA has an enviable record of success in creating successful start-up companies, and in the sale or licensing of technology in throughout Europe and the U.S.
The commercialization process: a proven methodology for business success
STA uses a proven three-step approach for the external commercialization of innovative non-core Siemens technologies: Evaluation; Transaction; and Portfolio Management.
Verifying business potential
STA systematically evaluates and verifies the business potential for every innovative non-core Siemens technology we consider for commercialization.
During the Project Scope phase STA clarifies the requirements for carving out the innovative non-core technology from Siemens with all Siemens stakeholders.
In the Business Opportunity phase STA develops a business concept for the technology, identifying the addressable target market and evaluating whether it presents an opportunity for significant scale. Each technology must also deliver substantial customer value, with a significant competitive advantage and the potential for fast time to market. STA talks to industry experts, prospective customers and partners to substantiate the business opportunity, and in parallel analyzes the technical and commercial feasibility of the business opportunity.
In the Business Concept phase STA conducts more in-depth market and competitive analyses and develops a business model for the commercialization of the technology, including a draft business plan. The business plan must be substantiated by strong interest from prospective lead customers, at which point STA selects the most suitable commercialization option (founding a spin-off company, or the sale or licensing of the technology). Once STA has confirmed that the technology has strong business potential, we enter the Transaction Phase.
The transaction: Transforming business concepts into reality
The direction of the Transaction Phase depends on which path to commercialization has been selected during the Evaluation Phase (start-up, sale or licensing). If founding a start-up is the optimal route for commercialization, STA establishes the foundation for the company and creates a detailed business plan, working closely with potential lead customers. STA focuses on building a world-class founding team, then supports the new company during the set-up phase and financing process.
For sales and licensing deals, we find the optimal partner for the technology, based on a solid M&A strategy. We identify suitable potential buyers or licensees for the technology, and use a structured approach to reaching out to selected companies. We then support interested companies throughout the due diligence process, negotiating contracts and establishing the conditions for executing the final deal. In the Execution Phase the agreed upon closing conditions are fulfilled and post-closing activities such as the technology transfer are carried out. Depending on the contract STA may retain shares in the company of the buyer or licensor of the technology.
Portfolio Management: Maximizing returns
After the transaction closes-except in the case of technology sales for cash-STA stays involved in portfolio management activities to maximize the returns the technology commercialization delivers.