1. We create value by investing in
the best digital startups
M A R K E T O V E R V I E W
#INVESTNOW
2. MARKET OVERVIEW
Digital Revolution & Opportunities
The digital economy is growing at an incredible
speed;
New technologies are fostering innovation and the
birth of startups, thus creating new opportunities
every day;
Digital startups need low initial capital and even a
small investment can generate significant returns
and high margins.
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3. The VC Opportunity
USA: in 2015, approximately $59bn were invested in VC,
second highest value over the last 20 years;
USA: +35% fundings to internet startups 2015 vs. 2014;
EU: in 2015 $13.4bn were invested in VC, reaching a
record;
EU: digital tech startups received 78% of the total VC
investments.
Source: MoneyTree report from PwC and NVCA
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4. Early Stage Scenario
In 2015 Seed and early stage represented over 60% of
VC investment activity in EU;
In 2015 Business Angels covered 73% of the European
early stage investments;
Equity crowdfunding had an impact of 1%.
Source: MoneyTree Report from PwC and NVCA
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5. MARKET OVERVIEW
LVenture Group’s positioning in the
funding pipeline
Competitions
Challanges
Tech Hubs
Incubators
PRE-SEED
Family & Friends
Grants
Accelerators
Business Angels
MICRO-SEED
Business Angels
Seed Funds
SEED
EARLY STAGE
Early Stage Funds
LATER STAGE
Growth Funds
Banks
Private Equity
1st Round
2nd
3rd
Mezzanine
Seed Investment
TIME
Valley of death
Break even
REVENUE
Source: The Venture Capital Cycle - Cardullo (1999)
OUR POSITIONING
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FOCUS ON ITALY
Volume of tech deals: 70 in 2013-2014, +208% vs.
2011-2012
Value of the VC industry: €133M in 2015, +11% vs. 2014
Source: CB Insights
No other European country has shown such growth rates
Italy is likely to become the next European
Tech Hub
7. +9.3%
4.704
5.143
2014 2015
Source: Infocamere Report
Registered Innovative Startups
The number of startups classified as innovative according to the law included
in the Italian register of established companies continues to grow
8. Source: Boston Consulting Group
3.5% GDP
2.1% GDP
2010 2016
€ 21bn
€ 24bn
CAGR
11.5%
The internet share of the GDP in Italy has increased impressively
over the past years and continues to show an upward trend
Internet’s numbers are growing
9. Tax relief
In 2014 the Italian Government introduced legal provisions
providing tax relief for investments in innovative startups.
The incentives apply to individuals and companies that in 2016
invest either directly or through entities or limited companies as
LVenture Group;
19% deduction on personal income tax (max. €500k);
20% deduction on corporate taxes (max. €1,8M).
Law n. 221, 17/12/2012
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10. Ideal conditions
Low setting up costs compared to other countries;
Great availability of high quality human capital;
Excellent know-how in design and creativity and
growing expertise in technology.
In Italy there are favorable condition for the initial
development of early stage startups.
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Source: Italian Ministry of Economic Development, Italian Ministry of Education University & Research
11. Arbitrage opportunity
The Italian scenario provides the opportunity to invest with competitive
valuations and rapidly scaling startups to international markets with
higher valuations.
0
3
6
9
12
0
3
5
8
10
Italy Europe USA Italy Europe USA
Seed
Average Pre-money Valuation
Series A
Average Pre-money Valuation
1,5 3
5 5
7
10
Source: data elaboration based on industry reports
