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NOAH Advisors - NOAH12 London

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  • 1. November  2012  Strictly  Private  and  Confiden2al  
  • 2. Reaching  to  New  Limits  …  We  Are  Proud  to  Be  Here   Guys,   It  is  Really   Finally   Let’s  Go!   Hot  Here   Here!   2  
  • 3. Europe  MaJers!  A  significant  number  of  companies  are  valued  at  over  €200  million     3  Note:  selected  examples.  
  • 4. European  Internet  Pioneers  &  Global  Leaders  Some  business  models  were  invented  or  most  successfully  executed  in  Europe   Company   Segment   Company   Segment     InnovaQve  payment  plaRorm     Remote  access     Largest  pure-­‐play  fashion  Retailer     Open-­‐source  database     Enterprise  soTware     FX     Social  networking  for  people  you   don’t  know     VerQcal  ad  network  (soccer)     BeVng     VoIP     Free  to  play  online  gaming     Legal  music  service     Toolbars     Global  hotel  comparison  leader     Freemium  anQ-­‐virus     Private  sales     Payment  instalments     Personal  loans   4  
  • 5. Company  Size  and  ValuaQon  Growth     US  company  universe  valued  2.3x  higher  than  European  one     However,  EU  companies  performed  4.5x  beGer  since  IPO  than  the  US  group     European  Internet  IPOs  are  cheaper  than  US  Internet  IPOs   Average  Market  Cap  ($bn)   Average  Share  Price  Performance  since  IPO    Average  market  cap  of  across  sampled  firms     Average  share  price  increase  since  IPO  of  sampled  firms   4.4   36%   1.9   8%   US   Europe   US   Europe  Sources:    Bloomberg,  FactSet,  4-­‐traders,  NOAH  Advisors.  We  excluded  Asos  (up  11,175%  since  IPO)   5  
  • 6. VC  Funding  is  Less  Developed  in  Europe     European  public  companies  have  relied  less  on  VC  money  than  US  ones     VC  investment  per  company  and  in  %  of  current  market  cap  significantly   lower  in  Europe  compared  to  the  US     However,  there  are  also  fewer  winners  in  Europe  (less  exits)   Average  VC  Funding  Raised  ($m)   VC  Funding  as  %  of  Market  Cap    Average  amount  of  venture  capital  raised  across  sampled     Average  of  venture  capital  raised  as  a  percentage  of  current   firms   market  capitalisa:on  of  sampled  firms   367   17.1%   71   1.9%   US   Europe   US   Europe  Sources:    Bloomberg,  FactSet,  4-­‐traders,  NOAH  Advisors.   Excluded  Tradedoubler  and  Ocado  for  Europe.   6  
  • 7. A  Look  at  the  Largest  VC  Backed  Companies  Over-­‐promised  and  under-­‐delivered?  They  jumped  several  hurdles  in  our  valuaQon  chain   VC  Capital  Raised  ($bn)   Share  Price  Performance  since  IPO   2,240   (48.6%)   1,140   (73.6%)   860   (75.7%)   510   (0.5%)   471   (63.1%)  Source:  Bloomberg,  FactSet,  4-­‐traders  &  NOAH  Advisors.   7  
  • 8. High  Profile  Venture  Backed  Companies  European  VC  is  waking  up  or  rather  has  been  awakened  by  many  US  investors   Company   Last  Round   Raised   Selected  Investors   Company   Last  Round   Raised   Selected  Investors   Mar-­‐11   $218m   Feb-­‐09   $65m   June-­‐11   $188m   Jan-­‐12   $63m   Dec-­‐11   $166m   Apr-­‐12   $62m   Feb-­‐12   $145m   Mar-­‐11   $59m   Jul-­‐07   $130m   Feb-­‐12   $58m   Apr-­‐12   $129m   Jun-­‐09   $53m   Sep-­‐07   $117m   Jun-­‐12   $47m   May-­‐11   $114m   May-­‐10   $23m   Feb-­‐12   ~$100m  Sources:  Crunchbase,  NOAH  Advisors.   8  
  • 9. ValuaQon  Drivers  in  the  Context  of  a  Company’s  Development  Stage:  How  NOAH  sees  the  World   Market   Management   Technology   Users  /  KPIs   Revenues   EBITDA   Leadership   Increasing  valuaQons  –  However  MulQples  Get  More  Reasonable  (in  Theory)   Decreasing  ExecuQon  Risk  and  Benefit  of  the  Doubt  (Less  to  Hope  for)     (GROWTH  *  MARGIN)  Predictability  =  ValuaQon  MulQple   9  
  • 10. The  NOAH  Network  –  Leaders  Connected  !   Internet     Coverage  of  over  10,000  industry  leaders:  500  target  companies  and  300  investors   TradiQonal     Large  Cap   TMT  &  Retail   Angels  /     Family     VC  and     Hedge  Funds   Offices   Private     Growth     Equity   Funds   Maryland   Klaus  Hommels   Armira   10