Transcript of "Michel Wendell - Nexit Ventures - Finland - Stanford Engineering - Mar 5 2012"
Nexit Ventures 0 Bridging Mobile Opportunities Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Nexit VenturesMichel Wendell 1 Grew up in Finland, spent half my life elsewhere EE degree Started businesses from scratch in four countries Held every corporate job outside of finance and HR In the Valley since 1996 Entrepreneur – Nexit is my start-up Cherish life, family, nature, arts, food – hate airplanes and dishonest people Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Nexit VenturesExecutive Summary 2 Focus on mobile and wireless – Software, enabling technology, service and content opportunities – The convergence between communication, computing and content Activities are targeted to the Mobile hot spots – Offices in Helsinki, Stockholm and Silicon Valley – Majority of the investments in the Nordic area – Most of the rest in the US west coast – Networking, business development in China, Korea and Japan Majority of the capital to be deployed in series B and C financings – Initial investments will be typically done in series A and B financings Raised about $200M in two funds, fund structure on Guernsey 6 person investment team, all operational and relevant industry background Hands-on, partnering with the entrepreneurs Investment size; $500k-$5M, total up to $10M We invest in people, innovation and market opportunity Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Nexit StrategyBridging Mobile Opportunities 3The Nexit Bridge – connecting the mobile hot spots Bridging Nordic mobile companies to Silicon Valley markets and exit opportunities Providing US based mobile companies with a Nordic market insight, customer access, and technology resources Access to lead mobile operators and handset manufacturers in Asia Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Market OverviewMobile & Wireless Market 4The history of computing can divided into four distinguishable waves Every wave has lasted roughly 10 years Each wave has been significantly larger (revenue & market cap) than the previous one The initial growth has been faster than in any preceding wave All waves have produced significant new players and generated major wealth for their investors Now the fifth wave – the Mobile Internet – is upon us Source: Morgan Stanley, Nexit Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Market OverviewMobile & Wireless Market 5 Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Mobile Technology Hot SpotsNordic Wireless Knowledge 6 Finland and Sweden on top of the global R&D spending – Sweden and Finland are the only two EU countries spending more than 3 percent of gross domestic product (GDP) on research and development – Investments in knowledge – the sum of investments in R&D, software and higher education – are highest in the United States, Sweden and Finland. In The Nordic countries high tech business has a strong wireless flavor – R&D skills: The Nordic investment in knowledge is largely focused on mobile technologies and wireless telecommunication, led by companies such as Nokia and Ericsson – Business skills: Individuals leaving Nokia and Ericsson (including the top management) are generating a continuously growing world class quality deal flow in mobile space Eurostat 2006, OECD 2003 Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Hot Spots in Financial WorldEntry in EU – High Value Exit in US 7USD $M The Nexit bridge to high value exits50 47 $M45 Median entry valuations exit substantially lower in the EU40 in all VC investment stages3530 Median M&A exit valuations substantially higher in the US25 23 $M20 Arbitrage: entering with low 15 $M15 European valuations and exiting entry with high US valuations10 5 $M50 Median VC pre Median M&A money valuation Europe US valuation Source: DowJones VentureSource Reports Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Hot Spots in Financial WorldThe Acquisition power resides in US 8North America dominates the high tech market – North America represents 30% of the global GDP but over 60% of the value of public technology companies – North American companies make ~3/4 of high tech acquisitions Utilizing the North American M&A market is crucial for high tech VC Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Hot Spots in Financial WorldM&A Activity 9 Source: Capital IQ, SEC, Thompson Reuters, Nexit Ventures. Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Hot Spots in Financial WorldWireless M&A Activity 10 Source: Rutberg & Company, Nexit Ventures. Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Nexit StrategyBridging Mobile Opportunities 11 Flip from Finland to US Flip from Finland to US Partial exit: NTT DoCoMo ~ 75% revenue from USAcquired by ON2/Google US mgmt/bizdev - FIN R&D High Growth, profitable ~ 90% revenue from US Acquired by HP Acquired by nVidia [NYSE:HPQ] Acquired by Sybase [NSDQ:NVDA] [NYSE:SY] Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Strategy ExecutionInvestment Strategy 12Typical portfolio company profile Companies with global ambitions and products that can compete globally Management teams with experience and execution power Target that over 50% of the companies will be originated from the Nordic area, most of the rest in the US, a few in Asia or Europe Nexit should contribute concrete added value for the portfolio company: Our deep domain knowledge and global network combined with active hands on involvement can be used to better monitor and further accelerate the developmentNexit’s investment strategy execution Benchmarking the deal flow globally (teams, technology, market opportunity) Strong involvement in company’s strategy, supporting execution and business development, early international growth Connecting to global partners and customers for faster growth Positioning and building networks for international high value exits Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
Nordic VC Scene 13Typical portfolio company profile Over the past 5 years there has been about $5B in VC investments in the Nordic area in 3700 deals ($32B in VC investment in the US in 2011 in 3200 deals, almost 40% from Silicon Valley) Roughly 75% of the money in the Nordics came from governmental sources There are probably 20 active VCs, down from almost 100 in 2000Deal flow We see 400-600 mobile/wireless plans per year 50% Nordic, 40% US We make 0-2 new investments per year Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
14 Thank You! Kiitos! Tack!Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com
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