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Hugh Campbell - UKBAA Northern Investment Summit presentation

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Hugh Campbell, founder and managing partner of GP Bullhound, gives an overview of the tech landscape across the Northern Powerhouse regions

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Hugh Campbell - UKBAA Northern Investment Summit presentation

  1. 1. GP.Bullhound The Fabled Northern Unicorn 28 March 2017 Strictly private and confidential
  2. 2. 3 #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 # Tech Cos. The rise of technology Source: Capital IQ, Financial Times Global 500 1996 2001 2006 2011 2017 0 2 1 3 5
  3. 3. 0 5 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 4 Number of years to become a billion dollar revenue company $bn 5 years 35 years 15 years 5 years 8 years Disruption is increasing in velocity and magnitude
  4. 4. 5 » Information » Messaging » Imaging » Search » Retailing » Banking » Entertainment » Marketplaces » Social networks » Transportation » Gaming » Revolution » Health » Medicine » Artificial intelligence » 3D printing » Currencies » Energy » Water » Food ARAB SPRING SOLAR POWER ENERGY STORAGE CLEAN WATER CRYPTOCURRENCY AI MANUFACTURING The low hanging fruits Enabled by bandwidth Enabled by smartphones Taking care of basic needs Enabled by Internet of Things Steps of technology disruption
  5. 5. 6
  6. 6. 7 The increasingly crowded Unicorn club Source: CBInsights – Private Unicorns since 2011 Date of $1bn Valuation
  7. 7. UNICORN HUNTING PERMIT MUST CHECK SPECIMEN FOR SLOWING GROWTH RATES, WEAK FUNDAMENTALS, AND HIGH CASH BURNS SEASON START 2016 8 Unicorn hunting season – justified?
  8. 8. 9 European Unicorns make money… Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016 Note: CAGR is calculated based on data available, the amount of years taken into account varies across data set; (1) % of sample, sample includes 37 of the 47 companies; (2) company profitability based of EBITDA » Unprofitable Unicorns sacrifice profit for growth » Average CAGR for unprofitable Unicorns 141% vs 49% for profitable Unicorns » Unprofitable companies are on average 4 years younger (2) (2) (2) (2)(2) (2) (2) 60% of unicorns are profitable(1) PROFITABLE UNICORNS UNPROFITABLE UNICORNS 40% of unicorns are unprofitable(1)
  9. 9. 10 Unicorns are being built everywhere Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016 » 10 new Unicorns spread across 7 different countries; US created 30 » Denmark and Switzerland created their first Unicorn EUROPE US SWEDEN LUXEMBOURG DENMARK SWITZERLAND ISRAEL GERMANY UK 30 10
  10. 10. 11 Country Cumulative Value $39.6bn $31.1bn $20.8bn $4.7bn $7.2bn $3.4bn $9.3bn $8.0bn $4.0bn $2.3bn $1.6bn $1.1bn $1.1bn $1.0bn No. of Unicorns 18 7 6 4 3 3 2 2 1 1 1 1 1 1 LTM Additions 2 1 2 1 0 2 0 0 0 0 0 1 1 1 Which country is the Unicorn champ? Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016
  11. 11. 12 12 $1bn tech businesses in the North GP Bullhound Research – Northern Tech Revealed Note: Valuation based on press estimates, most valuable defined as Northern headquartered businesses with valuations above $0.5bn as of 27 March 2017 *Indicates a private business $8.6 $4.8 $2.4 $2.3 $1.9 $1.8 $1.5 $1.3 $1.1 $1.1 $1.0 $1.0 $0.9 $0.8 $0.8 $0.7 $0.6 $0.6 $0.5 $bn
  12. 12. 13
  13. 13. Unicorn Founders 14
  14. 14. Listed Leaders 15
  15. 15. Fast Followers 16 ` ` ` ``` ` ``` `
  16. 16. Savvy Sellers 17
  17. 17. Local Dragons 18
  18. 18. Skilled Scientists 19
  19. 19. Electro Men 20
  20. 20. People Mashups 21
  21. 21. Trainspotters 22
  22. 22. Barmen and Baristas 23
  23. 23. Dynamic Talent 24
  24. 24. Our next challenge... Cumulative value of European unicorns ($bn) Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis. Note: valuations as of March 2017 25 736 408 116 63 32 31 27 Apple Facebook Europe Uber The North Airbnb Snap
  25. 25. £3
  26. 26. LONDON tel. +44 207 101 7560 52 Jermyn Street London, SW1Y 6LX United Kingdom SAN FRANCISCO tel. +1 415 986 0191 One Maritime Plaza Suite 1620 San Francisco, CA 94111 USA STOCKHOLM tel. +46 8 545 074 14 Birger Jarlsgatan 5 Stockholm, 111 45 Sweden BERLIN tel. +49 30 610 80 600 Oberwallstrasse 20 Berlin, 101 17 Germany PARIS tel. +33 1 82 88 43 40 45 rue de Lisbonne 75 008 Paris France MANCHESTER tel. +44 161 413 5030 1 New York Street Manchester, M1 4HD United Kingdom

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