Our first year in Germany Berlin, Nov 20 2013

Heritage

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Introduction

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Independent VC

Entrepreneurial

Fund I+II EUR 250m

Founded and Funded 2006

Target Investment

€3-8m tickets Digital media & marketing

Mobile

Edtech

E-commerce & Enterprise services

Late Series A, Series B

Co-investments with VCs/angels

Buy & Build

Coach & Commit

Internationalisation

Size Areas Approach

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Portfolio

Digital media Digital marketing E-commerce Enterprise services Television

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Last 14 months

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Discussed 11 intensely internally

Made 6 offers

0 Investments

Looked at 86 companies

1. Timing/ Speed

Being so “young” in the market, more time to assess is needed

§  Being honest: VCs are not the fastest

§  And being more honest: Dutch are not the fastest

§  Clearly a case of 1 + 1 = 3

§  Must have time to get to know opportunity/ management

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2. Internationalization Strategy

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3. Founders’ Shares

Founders’ shares often rather low

§  Median per founder share

§  in portfolio higher than 20-30% - post our round

§  for companies we looked at so far less than 15% - pre our round

§  Less money at the beginning (NL = more US than DE approach)

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4. Company Structure

Focus and unity

§  Multiple VC/ Angel investors on board at Series B (A)

§  “New Kid on the Block”

§  “Too many cooks spoil the broth”

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5. Valuation Expectation

Difference in “potential-view”/ maybe Dutch “problem”

§  Simplified example: eCommerce

§  expected going in valuation of 1.5 - 2.0x Revs FY1

§  sold today at 1.0x Revs FY0

§  Must 3 to 4-fold before money is back and no profit has been made

§  Could be own experience only: Albumprinter and CentralPoint

§  Not seen anyone else do these deals, we denied on valuation

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1. Warm Welcome

Has been easy to become part of the community

§  Many events to network

§  People open and happy to connect

§  A broad network of investors wanting/ looking to work with us

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2. Political/ Governmental Support

Many “political” helping hands

§  IBB (venture and debt)

§  KfW (venture and debt)

§  HTGF

§  …

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3. Highly Experienced Talent

Through the many large/ professional players,

§  a group of talented and trained entrepreneurs created

§  but also “onliners”/ online experts

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Conclusion

We need more time, but we will definitely soon get there!

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