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Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
Jez Challengeinbuildingupearlystagecompanies
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Jez Challengeinbuildingupearlystagecompanies

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  • 1. Challenges in building up early stage companies venture capital perspective Vladislav Jež JV Capital Management/Credo Ventures Prague Summer Conference on IP & Innovation, Sept 14, 2010 1
  • 2. What is PE/VC? Private Equity Venture Capital Early stage ReplacementSeed Start-up Expansion Capital Buyout Sept 14, 2010 Prague 2
  • 3. Investment stages Maturity Revenues Expansion IPO, Acquisition Buyouts Growth Banks, Leasing Start Launch Time SetupFFF Prototype VC Business Angels Sept 14, 2010 Prague 3
  • 4. How to finance the growth of early stage companies• Business Angels• Venture Capital• Governmental support encouraging technology transfer commercialization of intellectual propertyMaximase leverage of public sector funds and the engagement of private sector investors Sept 14, 2010 Prague 4
  • 5. Priorities of VC Investors• Partnership with Entrepreneur• Management team – strongly motivated• Growth potential• Solid business plan with a clear vision• Clear exit strategy Sept 14, 2010 Prague 5
  • 6. Fundraising, Investments & Exits Sept 14, 2010 Prague 6
  • 7. Fundraising for CEE – PE/VC 2003 - 2009 4000 3500 3000 2500 mil.EUR 2000 1500 1000 500 0 2003 2004 2005 2006 2007 2008 2009Source: EVCA/PEREP Sept 14, 2010 Prague 7
  • 8. CEE funds raised – incremental closings during the year (€1,000s) 2007 2008 2009 Funds raised by fund stage focus Amount % Amount % Amount % Early-stage 6,000 0.2 49,010 2.0 0 0.0 Later-stage venture 38,150 1.0 132,850 5.3 26,000 6.9 Balanced 32,700 0.8 28,200 1.1 3,000 0.8 Total venture 76,850 1.9 210,060 8.4 29,000 7.7 Growth capital 260,500 6.5 154,500 6.2 6,300 1.7 Buyout 3,277,630 82.3 1,893,250 76.1 146,140 38.7 Mezzanine 225,000 5.6 161,200 6.5 140,000 37.1 Generalist 143,470 3.6 69,610 2.8 56,070 14.9 Total funds raised 3,983,450 100.0 2,488,620 100.0 377,510 100.0Source: EVCA/PEREP_AnalyticsDisclaimer: Data is continuously updated and therefore subject tochange. Sept 14, 2010 Prague 8
  • 9. New VC Fund – Credo Stage One Fund • Size - EUR 20 mil. • Geography – CEE (primary focus CR+SR) • Investment Size – min.EUR 250.000,- • Investors – HNWI, institutional investors • Sectors – Internet, Software, Mobile, Health Sept 14, 2010 Prague 9
  • 10. Investments in 2009 stage distribution by % of invested amount€ ´000 CZECH REP. CEE Europeseed 0,0% 0,1% 0,6%Start-up 0,0% 0,4% 8,1%Later stage VC 0,02% 1,3% 8,1%Total VC 0,02% 1,8% 16,8%Growth+Buy-out 99,98% 98,2% 83,2%Total 2009 1,396,000 2,456,000 22,690,000Total 2008 450,000 2,480,000 52,675,000 Source:EVCA/Perep Sept 14, 2010 Prague 10
  • 11. Investments (mil.EUR) Czech republic 1600 1400 1200 1000 mil.EUR 800 600 400 200 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 rokySource: EVCA/CVCA Sept 14, 2010 Prague 11
  • 12. Number of Investments Czech rep. 25 20 počet investic 15 10 5 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 rokySource: EVCA/CVCA Sept 14, 2010 Prague 12
  • 13. Returns in PE/VC EuropeStage 1Y IRR 3Y IRR 5Y IRR 10Y IRREarly Stage 5,7 2,3 -4,7 -1,1Development 2,4 6,9 1,2 7,1Balanced 35,3 6,6 -1,8 7,9All Venture 17,2 5,0 -2,0 4,1Buyouts 29,6 15,3 8,3 14,3Generalist 98,6 15,8 5,9 10,0All Private Equity 36,1 13,0 5,4 11,0Source: Thomson Financial for EVCA Sept 14, 2010 Prague 13
  • 14. Why not more deals in early stage?• Limited participation by local investors• Public incentive missing• Limited number of experienced Fund Managers• Limited contacts with Universities• Missing more success stories Sept 14, 2010 Prague 14
  • 15. Early stage investments backed by VC• NetCentrum – web portal• Voicetronics – voice recognition technology• Nostromo – entertainment mobile content• Systinet – provider of web services infrastructure software• NewsTin –cross-language news aggregation• Geewa –multiplayer casual games Sept 14, 2010 Prague 15
  • 16. Czech Private Equity&Venture Capital Association• Founded in 1995• 40 members - Full members: 14 fund managers - Associate members: 26 companies Sept 14, 2010 Prague 16
  • 17. ContactsTel.: +420 737 238 278E-Mail: info@cvca.cz; jez@credoventures.com www.cvca.cz;www;credoventures.com Sept 14, 2010 Prague 17

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