INNOVATION
A Changing World

INVESTMENT CASE
Remove Section

INNOVATION

 

Remove Section

Innovation is becoming core in many industries, allowing companies not only to reduce costs thanks to automation (artificial intelligence, robotics), but also to come up with new products, enjoy higher pricing power (smart products) and to develop new business models (sharing economy).
 

This digital evolution has the potential to reshape markets faster than perhaps any force in history, with the spotlight being currently on the Internet of Things, virtual / augmented reality, artificial intelligence, robotics, medical devices.
 

The Innovation theme gathers our top ideas among innovative technologies that are impacting current businesses and transforming the economy.
 

The investment universe is naturally composed of Tech, Biotech and MedTech players, it can also include more traditional companies whose business model shifts thanks to innovation.
 

 FACTSHEET

PRESENTATION

TERMSHEET

 

KIDs (Innovation)      

PRICE (USD)
220.45 Aug. 6, 2020
Remove Section

WHAT IS IT ABOUT?
Remove Section

THE FINAL STAGE OF
TECHNOLOGY EVOLUTION

 

We have reached the 3rd step of technological evolution ->

Remove Section

 

TECHNOLOGY ADOPTION HAS
ACCELERATED OVER THE YEARS

 

Remove Section
The rate of technology adoption has materially accelerated over the years as costs have been going down and as technology has become more user (and developer) friendly.
Consumers now have an open mind when it comes to technology, with many of them being even eager to try new technologies.

 

Remove Section

Source: Michael Felton, The New York Times

 

 

Remove Section

INNOVATION IS BECOMING CORE IN ALL
INDUSTRIES AND FOR GOVERNMENTS

 

Innovation is not exclusive to consumer electronics and healthcare industries anymore.

In traditional industries, innovation emerges as a way to confront rising competition from. Low-cost countries and products and to drive growth.

The cloud and IoT are major breakthroughs.

 

 

 

 

Remove Section

TECHNOLOGY IS BECOMING UBIQUITOUS

 

The self-lacing technology from the 1989 “Back To The Future 2” movie is now real. Smart apparel is on its way. As are smart home appliances. Consumer products companies will get a massive revenue boost thanks to the higher selling prices of smart products.

 

 

 

WHAT IS HAPPENING NOW?
Remove Section

WHAT’S HOT RIGHT NOW?
THE INTERNET OF THINGS

 

Remove Section

 

 

Remove Section

The IoT will soon be at the crossroads of basically everything and will spark the advent of a smart, connected world allowing the remote monitoring of devices feeding Big Data and AI systems. In return, AI systems will make objects smarter.

Starting as a simple tracking solution, the IoT now allows to extract and record a variety of data (speed, temperature, pressure, humidity) from an unlimited number of items: from consumer and industrial products to basic materials, food and drugs.

The IoT will soon power smart homes, with digital assistants (Alexa) making the link between humans and machines.

Smart factories will be another major field of application.

 

 

 

Remove Section

Connecting every single object to the Internet. 80bn objects will be connected to the internet in 2020 vs 15bn today (Source: Idate Consulting).

 

Remove Section

 

Remove Section

WHAT’S HOT RIGHT NOW?
AUGMENTED REALITY

 

Both Facebook and Apple are reportedly working on AR glasses and cameras.
 

The upcoming iPhone 8 is believed to be Apple’s first foray in AR, with a camera expected to allow depth sensing, picture manipulation and virtual effects on images.
 

Wide number of AR applications ranging from gaming to driving or shopping.
 

AR needs tech content, i.e. semiconductors for improved processing power, connectivity, power management and higher resolution displays and media content (video games, rich maps).

 

Remove Section

WHAT’S HOT RIGHT NOW?
SMART CARS

 

The auto industry is becoming the next battleground of tech giants, as illustrated by the recent acquisition of Mobileye by Intel.
 

The autonomous driving market is expected to reach $50-100bn in the medium term:
 

  • assuming tens of millions of cars come out of the factories each year equipped with such technologies
  • and an ASP around $1,000.

DEFINED LEVELS
OF AUTOMATION

 

 

Remove Section

Many technologies are vying for the car of the future:
 

  • from the Intel Xeon CPU - Mobileye vision sensors combo
  • to Google’s LIDAR sensors and NXP’s BlueBox
  • and to graphics cards for the computing power

 

PERSPECTIVES
Remove Section

INNOVATION DRIVES LONG-TERM
ECONOMIC GROWTH

 

There are 3 main types of innovations:

  • Process (cost saving opportunity, e.g. robots)
  • Product (revenue opportunity, e.g. iPhone)
  • Business model (e.g. sharing economy)

Remove Section

R&D INVESTMENTS ARE STRONGER THAN EVER
 

Remove Section

In recent years, R&D spending has been growing at a 5% pace, well above global GDP growth around 3% suggesting that many innovative products are about to hit the market soon.

Unsurprisingly, artificial intelligence, robotics, data analysis and new medical technologies rank high in terms of R&D priorities.

Remove Section

 

R&D Spending CHART

Source: Bloomberg data, CapitalQdata, Strategy & Analysts

 

Remove Section

A HUGE POTENTIAL AHEAD OF US 

 

McKinsey Global Institute estimates the positive economic impact of technologies on global GDP ($80 trillion) in a range of 17%-41% by 2025.

Reducing by 50% the number of years for major economies to double in size by 2035.

 

 

Artificial Intelligence could double economic growth over the next 20 years in 12 developed economies (Accenture).

 

PLAYERS
Remove Section

NEW PLAYERS KEEP POPPING UP

 

As the cost and complexity of technology keep going down, new players are coming from out of nowhere in many industries contributing to the global innovation effort as they come up with original ideas, products and business models… and putting continued pressure on the cost and complexity of technology.

After the GAFA (Google, Apple, Facebook and Amazon), the newcomers to the Tech world are the NATU (Netflix, Airbnb, Tesla and Uber).

Remove Section

HOW TO PLAY INNOVATION?

Remove Section

 

Remove Section

Terms of use and legal information

Please read this notice carefully

Term of Use

By accessing this website ("Site") and any of its pages you expressly agree that you have read, understood and agree to be bound by the terms and conditions and the legal information contained herein. If you do not agree to the terms and conditions below, you should exit the Site now.

Access to the information contained on this Site may be subject to legal and regulatory restrictions applicable to user (by reason of user’s place of residence or domicile, nationality, or for any other reason). Persons concerned by such prohibitions should not enter the Site.

No offer, solicitation or recommendation

The contents of this Site are provided for information purposes only. Nothing contained on this Site constitutes a solicitation, an offer or a recommendation to purchase or sell any product and/or may be construed as an offer, an invitation or solicitation to enter into any specific transaction or strategy. None of the products mentioned on this Site are available and term sheet shall not be distributed to any person or entity in any jurisdiction or country where such distribution or use would be contrary to any applicable law or regulation.

The collective investment scheme (hereinafter referred to as the "Fund") referred to on this Site is registered only in Luxembourg.

US restrictions

The products mentioned on the Site may not be offered, sold, assigned, or delivered, directly or indirectly at any time by any “US person”. In particular, the Fund mentioned on the Site has not been nor will be registered under the Securities Act of 1933 in the USA.

No warranty, no investment advice

Although AtonRâ Partners believes that the information is reliable when posted on the Site, it makes no representation or guarantee that it is accurate or complete.

The information and opinions contained on the Site are subject to change without notice.

Limitation of liability

AtonRâ Partners shall not be responsible or liable for any loss or damage of any nature whatsoever (including direct, indirect, incidental or consequential) arising out of or in connection with the access to or the use of, or any inability to access or to use any information or data on this Site, including without limitation in the event of negligence.

Copyright

Unless expressly stated otherwise, all information available on this Site is protected by copyright, with all rights reserved. The elements may be used freely for navigation purposes only and must expressly mention AtonRâ Partners in the event of reproduction, in whole or in part, of such elements in any form whatsoever, including in written or electronic form. No part of this Site may be distributed or transmitted without the express consent of AtonRâ Partners. Links to the Site or use of the content for advertising or commercial purposes is subject to the prior written consent of AtonRâ Partners.

Data protection

AtonRâ Partners places great importance on data protection and makes every effort to safeguard the privacy of information. However, the Internet, like other electronic information and communication systems, cannot guarantee absolute security.

Governing law and jurisdiction

Use of this Site is subject to the laws of Switzerland without reference to any conflict of law principles. The courts of Geneva, Switzerland, shall have exclusive jurisdiction over any claims or disputes arising out of or in connection with the Site and its use.

By clicking on 'I AGREE', I acknowledge having read the terms of use and legal information and agree with the above statements.