DFJ Esprit Presentation MTF 11.10.2012


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Presentation slides from DFJ Esprit on their investment approach in the MoneyTalks® Forum on the 11th of October, 2012.

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DFJ Esprit Presentation MTF 11.10.2012

  1. 1. EU VC October 2012
  2. 2. DFJ Esprit – Differentiated Approach  As an active primary VC we are actively engaged with many technology businesses in Europe as many raise capital multiple times  Exclusive European partner of Draper Fisher Jurvetson (“DFJ”), a top Silicon Valley VC who co-invest in every deal. DFJ investments include:  More Secondary expertise than any other firm in Europe having acquired VC portfolios of:  Plus Tempo experience of 5 portfolios acquired2
  3. 3. One of the most experienced VC teams in Europe: unique mix of VCs, entrepreneurs, bankers Partners Age Sector Focus Previous Experience VC Experience Simon Cook 43 Semi & Media Cazenove, 3i, KPMG, Games 15 Paul Murray 41 Comms & Cleantech Cazenove, 3i 15 Olav Ostin 42 Secondary Tempo, Nova, ETF, Enskilda 12 David Tate 56 Secondary Tempo, Nova, WestLB 12 Nic Brisbourne 37 Internet Cazenove, Reuters VC 10 Brian Caulfield 44 Software & Comms Trinity Venture, Entrepreneur 18 Alan Duncan 63 Semi & Elec. Prelude, Ferranti 26 Richard Marsh 40 Software Oxford Capital, Entrepreneur 12 Stuart Chapman 42 Software Cazenove, 3i USA & UK 18 Krishna Visvanathan 39 Semis & Comms 3i, Entrepreneur 12 Associates/Junior Partners Kelvin Au 29 Secondary Tempo, CSFB 3 Jonathan Sibilia 32 IT/Ctech Apax, Rothschild, Jefferies 3 Scott Sage 29 IT/Ctech BVCA, UBS 3 Venture Partners Victor Basta Broadview, Arma Stefan Elsser 3i Germany, KfW Mikko Suonenlahti SFK Finance Oy, 3i USA Hansjoerg Ruof 3i Germany David Cummings IMI, Lazard, KPMG Rob Eckelmann Intel, US government Peter Keen Exosect, Serentis, Merlin Bio Sciences3
  4. 4. DFJ Global Network: 4 continents, $7B in Capital, Top Silicon Valley VCUnsurpassed Deal Flow, Rolodex, Market Intelligence, Business Development, 150 Professionals
  5. 5. DFJ Esprit European Portfolio Digital Media & Hardware & NextGen Telecom Software Lifesciences CleanTech Internet Electronics & Wireless Current Investments Key Exits5
  6. 6. Some recent primary deals Conversocial Neul Customer feedback and service via social media. Wireless network using ‘whitespace’ spectrum. Founded First investment: 2009 (early stage) by ex-CSR founders, backed previously by DFJ Esprit team Current revenue: £1m+ First investment: 2011 (seed stage) Current revenue: <£1m Graze Healthy snacks, delivered by post. RadiumOne Founder was co-founder of LOVEFiLM. Targeted adverts using social media interaction and links First investment: 2009 (seed stage) for relevance. Serial entrepreneur, backed previously by DFJ Current revenue (F): ~£30++m Esprit team. First investment: 2011 (later stage) Current revenue (F): ~£19m Horizon Discovery Accelerating targeted drug development for personalised medicine. Strike Ad First investment: 2010 (early stage) Demand-side platform for mobile advertising Current revenue (F): ~£7m First investment: 2011 (later stage) Current revenue (F): ~£4m+ Achica Sport Pursuit Home Furnishings flash sale private members Flash sales ecommerce for high performance sports club. First investment 2012 (late stage) equipment and clothing Current revenue (£40m++) First investment: 2012 (early stage) Current revenue (F): ~£4m+ Redkite Financial markets software to prevent market Lyst abuse Fashion social commerce business First investment: 2011 (early stage) First investment: 2012 (early stage) Current revenue: <£1m Current revenue (F): ~£5m+6
  7. 7. Some recent secondary deals Qosmos Horizon Discovery Deep packet inspection for IP networks. Accelerating targeted drug development French, with no UK office – so non-EIS for personalised medicine. First Investment: 2011 (later stage, secondary) First investment: 2010 (early stage) Current revenue (F): ~£14m Current revenue (F): ~£7m Top Technology portfolio A tail portfolio of 8 companies acquired from IP Group plc and other LPs including
  8. 8. European VC Market Deal Data ($5m+ deals) In line with (low) historic volumes Sector # of deals Avg Deal Size $m Total $m DFJ $5m+ deals Cleantech 20 27.0 327.4 Comms 7 17.6 123.1 Neul Internet 70 22.7 1,589.3 Electronics 13 20.0 259.4 ZBD, Displaylink Medtech 26 13.7 355.7 Horizon Software 27 10.4 281.8 Qosmos TOTAL 163 18.6 2,936.6 Cf DFJE Dealflow by Country Market Geography Split (June 2011 - Feb 2012) 4% 4% Finland 8% France 6% 21% DACH 19% Nordics Germany UK 10% UK/Ireland 42% 12% France Ireland 6% Benelux South Other Nordics 40% 5% ROW Rest of Europe 7% 16%8
  9. 9. VC Activity $5m+ deals >$5m deals since 1/1/11 (VentureSource) including follow-ons announced (ex biopharma) Investor Deals Companies Index 6 Farfetch, Groupalia, Housetrip, Justeat, Privalia, Stylefantasie Balderton 6 Housetrip, Livebookings, Wooga, Worldstores, VestairedeCopines, Achica DFJ Esprit 5 Horizon, Neul, Displaylink, Qosmos, ZBD CAPE 4 Aldebaran, Novate, Trustyou, Visiware Auriga 4 Amplitude, Bonitasoft, Cellnovo, Neolane Xange 4 Mixcommerce, MobileTag, Neolane, VisionOSS Ventech 4 Bonitasoft, Crocus, Prosonix ,VestairedeCopines Imperial Innovations 3 Nexeon, Plaxica, Veryan CDC 3 Amplitude, MonExTel, RBMHGroupe Accel 3 Spotify, Cloud9, Stylefantasia Idinvest 3 Crocus, Kobojo ,LaCompaignedeAnimaux Imperial 3 Nexeon, Plaxica, Veryan Capricorn 3 Ducatt, Novashunt, Novopolymers Wellington 3 Enecsys, Livebookings, SapiensSteering Advent 3 Cellnovo, Far-fetch, Worldstores Intel Capital 3 Altobridge, Total Immersion, Vision OSS Highland 3 Prescritpion Eyewear, Wooga, Privalia Amadeus 3 Ipaccess, UnRuly, Glysure GIMV 3 Novopolymers, Ebuzzing, Prosonix Dumont 3 Doo, Yourdelivery, Yourvideocard Earlybird 3 Cleanmobile, Madvertise, Miracor Innovacom 3 Videoplaza, Coachclub, Mixcommerce SEP 3 Exointouch, ipaccess, MediaGenuity Serena 3 Coachclub, Bonitasoft, LaConmpagniedesAnimaux9
  10. 10. European VC Market Exit Overview Number of $ 100M+ Exits Over Time in US and Europe USA  Volume is c.100 per year in Europe US in normal markets (95-98, 04-07), drops to 50 per year400 in poor years, avg.350  USA generates $32 billion per year of VC returns300  Avg. major exits running at 33250 a year in Europe for 5 years pre crash200  Europe generates $10 billion per year of VC returns150  USA has already rebounded –100 with 160 exits in 2011 50  Europe up to 25 exits a year, split 2/3rd M&A, 1/3rd IPO 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: VentureSource, DFJ Esprit analysis
  11. 11. DFJ Esprit leads European VC M&A Total European VC M&A 2010/2011 > $40m exits (Source: Venturesource) Companies / Exits Value $m Sellers Companies / Exits Value $m Sellers Eusa 650 Other VCs (3i) The Office Group Ltd. 76 Other VCs Novexel 375 Other VCs TLC 75 DFJ Esprit Icera 367 DFJ Esprit, others Phyworks 73 DFJ Esprit, others ApaTech 330 DFJ Esprit, others StreamServe 71 Other VCs LoveFilm 300 DFJ Esprit, others Cellerix 70 Other VCs HBI 284 DFJ Esprit, others Qbranch 66 Other VCs C3 267 Other VCs Sensitive Object SA 62 Other VCs BabelStore SA 200 Other VCs (DFJE preempt) Private Sale GmbH 200 Other VCs Streetcar Ltd. 62 Other VCs Dailydeal 175 Other VCs Digitick 54 Other VCs Sensordynamics 164 Other VCs Frontier Silicon 52 Other VCs Exalead SA 162 Other VCs Picochip 51 Other VCs Shipequip 160 Other VCs Lagan 50 DFJ Esprit, others Memometal 150 Other VCs Clearswift 50 DFJ Esprit, others Zeus 140 DFJ Esprit, others Tweetdeck 50 Other VCs Svox 125 DFJ Esprit Sec, others Acra 50 Other VCs Astex 120 Other VCs Miyowa 45 Other VCs Applied Language 119 Other VCs Podio 44 Other VCs Preglem 116 Other VCs Stokes Bio Ltd. 44 Other VCs Adeptra 115 Other VCs Netviewer 114 Other VCs Dibcom 43 DFJ Esprit, others Synosia 113 Other VCs Nimbus 42 DFJ Esprit, others Cellzome 108 Other VCs BProcess 42 Other VCs Kiala 100 DFJ Esprit Sec, others Synchronica 42 Other VCs Go Viral Ltd. 97 Other VCs Aasset Security 42 Other Vcs DFJ share BuyVIP GmbH 84 Other VCs (3i) OmniBus Systems 41 Other VCs Inc current 34% LuciaWind AG 78 Other VCs The Cloud 78 DFJ Esprit, others Cumulated Enterprise Value 6,492 DFJ = 2,057 32%11
  12. 12. Thoughts for early stage companies  Changes in the VC world :  Fewer ‘established’ players, new early stage funds  Capital availability not getting easier  Actually fewer large ($5m+) deals than understood  Impact on investment trends:  Capital efficiency – ecommerce  Avoiding financing risk - Cleantech, hardware, Semiconductors
  13. 13. Thoughts for early stage companies  How much cash do you really need?  What proves your business model? Not your technology  Is it really a big market? It needs to be.  CUSTOMERS  Be realistic on financing  Have you ‘proven’ your proposition?  Availability & price of money  Where to look?  Love Tekes
  14. 14. DFJ Esprit LLP For further information please contact: www.dfjesprit.com Paul Murray, Managing Partner paul.murray@dfjesprit.com 14 Buckingham Gate London, SW1E 6LB United Kingdom14