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Smau Bologna 2016 - Silverpeak

Il mercato del Venture Capital in Europa: criteri e consigli per eseguire con successo un round di finanziamento equity internazionale

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Smau Bologna 2016 - Silverpeak

  1. 1. Silverpeak IB is authorised and regulated by the Financial Conduct Authority2Silverpeak LLP is an authorised representative of Silverpeak Capital Ltd, which is authorised and regulated by the Financial Conduct Authority An overview of the European tech market: What does it take to close an international growth financing round?
  2. 2. Disclaimer Neither this presentation nor any of its contents may be used without the prior written consent of Silverpeak LLP, trading as ‘Silverpeak technology investment banking’ (“Silverpeak”). The information in this presentation reflects prevailing conditions and our views as of this date, all of which are subject to change. In preparing this presentation, Silverpeak has relied upon and assumed, without independent verification, the accuracy and completeness of all information available to us or from public sources or which was otherwise reviewed by us.
  3. 3. Agenda 1. Silverpeak overview 4 2. European venture environment: recent trends 11 3. Thoughts on the Italian market 23 4. Criteria and tips for international “growth” rounds 26 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. page | June 2016 | prepared for4
  4. 4. We advise innovative, fast-growing technology companies on M&A and financing transactions Investment bank focused on technology M&A and financings advisory for growth companies Vast network of relationships Global reach and proven ability to reach key decision makers Blue-chip investment banking service overview FACTSHEET 3 partners with 80+ years of experience in tech investment banking 150+ deals and assignments completed 15-strong team Regulated by the Financial Conduct Authority Optimum execution for technology companies page | June 2016 | prepared for5 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  5. 5. $11.8m Growth Equity MAY 2014 $19m Series C JANUARY 2014 $6m Seed funding JUNE 2012 Growth Equity and Recapitalisation JANUARY 2012 Strategic and financial advisory JANUARY 2012 €15m Series B JULY 2013 has been acquired by SEPTEMBER 2013 has sold its system integration BU to AUGUST 2013 $8m Series C FEBRUARY 2014 has been acquired by OCTOBER 2014 has been acquired by JUNE 2015 Our presence in the technology sector INTERNET & DIGITAL MEDIA ENTERPRISE SOFTWARE & SaaS ENABLING TECH. & SERVICES HEALTHTECH  eCommerce / Marketplaces  Digital Entertainment  Internet Infrastructure  Adtech  Fintech  ERP / CRM / HRM  Security  Databases & Content Management  Materials  Semiconductors / Components  Communication Infrastructure  Electronics / Robotics  Cleantech  Medical Devices  Digital Health  Genomics  Diagnostics / Imaging  Healthcare IT SUB-SECTOR SPECIFIC EXPERTISE RECENT TRANSACTION EXPERIENCE has been acquired by NOVEMBER 2014 Focus Gestioni Silverpeak has deep sector knowledge and extensive execution experience in the technology market has acquired control of JULY 2015 $8m Series B MAY 2015 has been sold to AUGUST 2015 $7.3m Series B JUNE 2014 page | June 2016 | prepared for6 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  6. 6. A wealth of relationships with key stakeholders in the technology ecosystem Note: Selected logos shown for illustrative purposes page | June 2016 | prepared for7 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  7. 7. We have access to global buyers and investors in our processes We have extensive personal relationships and we leverage the global partner network of Globalscope Locations with people on the ground A selection of the international buyers with whom we have closed deals page | June 2016 | prepared for8 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  8. 8. JANUARY 2014 Advisor to Seatwave Selected Silverpeak completed mandates Workflow software for B2B sales persons MAY 2015 Venture debt and equity financing Advisor to Artesian FEBRUARY 2014 $8m Series C 10 out of 12 of our last fundraising deals are international scale ups JUNE 2014 MAY 2014 $11.8m Growth Equity Advisor to Ticketscript RecentSilverpeakfundraisingswhichhave sincescaledinternationally SEPTEMBER 2013 June 2012 FEBRUARY 2012 JANUARY 2012 Delivery through enthrocytes JULY 2013 €15m Series-B financing led by Focus Gestioni Advisor to EryDel $7.3m Series-B financing led by: Open source e-commerce software Advisor to Commerce Guys Cloud-based event ticketing and management software Fabless semiconductors (manycore processors) Mobile engagement for consumer- facing companies $19m Series C Telehealth software platform Investment & Call option by: Mobile music for the mass market Seed Funding: $6m Humanoid robots for consumer applications Majority sale: $100m Ultra-fast lasers Growth Equity & Recapitalisation: $42m page | June 2016 | prepared for9 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  9. 9. Silverpeak is a sponsor of  10-15 companies pitch to raise €3m – €15m to scale internationally  Two day event with panels, company pitches, one-to-one meetings and networking opportunities  Invitation only event limited to 120-150 selected participants Lorenzo Franchini Founding partner www.scaleit.biz Selected 2015 Companies page | June 2016 | prepared for10 Showcase of the tech top Italian “Scale-ups” for international investors Companies completing a round following ScaleIT 2015
  10. 10. Agenda Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. page | June 2016 | prepared for11 1. Silverpeak overview 4 2. European venture environment: recent trends 11 3. Thoughts on the Italian market 23 4. Criteria and tips for international “growth” rounds 26
  11. 11. Key takeaways of the European venture market  The adjustments in unicorn valuations and other negative news which has been hitting the headlines in the last 6-9 months has not had an effect on European B and C-rounds… yet ‒ We expected a more pronounced slow down of the market, but it is possible that the cycle of investing is longer than the observation period page | June 2016 | prepared for12 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. The environment for European B & C-rounds seems be healthy  In 2015 and Q1 2016 there have been 59 venture funds raised in Europe, for a total of €9.8bn  There is good volume of B & C rounds (€250m per month): Investments are skewed towards larger plays, with average round size increasing, more evidence of cross- border activity and an increasing number of participants outside of the traditional VC world, with capital from global investors  There are 29 EUnicorns and successful recent exits from European companies
  12. 12. 75 80 85 90 95 100 105 110 Jan-15 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Russell 2000 S&P500 Tech Nasdaq Tech Recent public market sentiment on technology has been discouraging TECHNOLOGYMARKET INDICES IPO “DOWN-ROUNDS” SELECTEDPUBLIC INVESTORWRITEDOWNS (10%) (31%) (17%) (13%) (25%) Sources: Capital IQ, CB Insights, Press Articles. No US technology IPOs in Q1 2016 (51%) (44%) (25%) (20%) (23%) (17%) Last private valuation: $2.4bn IPO valuation: $1.7bn (29%) Last private valuation: $450mn IPO valuation: $448mn (0.5%) Last private valuation: $6bn IPO valuation: $2.9bn (52%) Total amount raised: $106mn IPO valuation: $74mn (30%) (32%) (27%) (25%) page | June 2016 | prepared for13 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 13-Jun-16: Twilio announces to IPO and raise up to $160m (expected market cap of $1bn)
  13. 13. Tech IPOs in the US have not performed strongly Source: Mattermark page | June 2016 | prepared for14 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. Stock price change relative to first day close
  14. 14. Other headwinds in tech Unicorns  Unicorpse Online food delivery market slowing down2 Rocket Internet Layoffs 20,000 new jobs created in 2015 by tech investment >129,600 new jobs created in the tech industry in 2013 and 2014 (total 6.5m jobs) HOWEVER: Q1’16 had the fewest deals (by count and $ amount since Q4’14) In December 2015 there were c. 230 tech unicorns worldwide (private companies with a valuation of >€1bn)1  2016 has however yielded several notable “unicorpses” or bad stories: $10 $20 $30 $40 $50 $60 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Rocket’s share price has steadily declined since its October 2014 IPO 1: Forbes 2: CBInsights In administrationValuation plummeted following allegations of inaccurate tests Fired CEO following problems with lending practices CEO stepped down following investigations from regulators  According to analyst predictions, there will be c. 260k tech layoffs in 2016  Notable examples include: 18k (15%)14k (20%) 85k (20%) 26k (20%) 231 (25%) 280 (50%) PUBLIC PRIVATE page | June 2016 | prepared for15 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. Key: # layoffs (% total workforce) CEO pledges to restore investor confidence: − Rocket will not carry out any dilutive capital-raising in the next 3 years − It will list 1 of its proven winners within the next 18 months − 3 of its proven winners will break even by end of 2017
  15. 15. However, the European tech market carries on… page | June 2016 | prepared for16 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  16. 16. Capital continues to flow into tech €3,812mn €6,455mn €9,890mn 59 41 54 2014 2015 2016E total value of European funds raised # of European funds raised Value and volume of European VC, GE & CVC funds raised 2014 – 2016YTD (total # of funds raised to date = 118) (annualised) (annualised) YTD Value: €3,297mn Source: PitchBook. * Government funds Top 3 largest funds: Top 3 largest funds: Top 3 largest funds: 1. €640mn 2. €630mn 3. €450mn 1. €1,544mn 2. €650mn 3. €400mn 1. €500mn 2. €400mn 3. €305mn # of funds: 18 Selected Italian Funds €76m (2013) €95m (2015)€42m (2013) €65m (2016) + €200m target; ongoing * * UniCredit Evo page | June 2016 | prepared for17 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 1
  17. 17. 0 2 4 6 8 10 12 14 16 18 0 100 200 300 400 500 600 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 TotalDealsPerMonth(#) TotalAmountRaised(€mn) Large HTI Series B & C Total Financing Amounts (€mn) and Deal Count by Month, 2015 - 2016YTD B Rounds C Rounds Total Deal Count Tech companies continue to raise scale-up rounds (B and C) Source: Go4Venture HTI Database. page | June 2016 | prepared for18 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 2 Last 12 months Median B-round: €15m Median C-round: €25m
  18. 18. From a wide variety of investors Total Volume of 2015 Landmark HTI (≥€20mn) Investments by Lead Investor Category Source: Go4Venture HTI Database. 12 77 13 22 9 21 Large VCs Corporates Growth Equity Institutionals, Family Offices & State Funds Private Equity Undisclosed 20 97 2015 2 page | June 2016 | prepared for19
  19. 19. “EUnicorns” are growing (1 of 2) UK (9) FR (2) LU (1) SE (3) NL (2) RU (1) FI (1) DE (5) IL (5) COMMENTARY • 29 EUnicorns total • The UK and Germany have 14 unicorns combined – almost half of Europe’s total • Israel has the next most with 5 • Several notable European countries have yet to produce a unicorn, including: Spain, Switzerland, Portugal and Italy SE, 3, 10% UK, 9, 31% NL, 2, 7% FR, 2, 7% FI, 1, 4% RU, 1, 4% DE, 5, 17% LU, 1, 3% IL, 5, 17% EUNICORNS, BY COUNTRY Sources: Silverpeak analysis European private tech companies with a valuation of > $1bn page | June 2016 | prepared for20 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 3
  20. 20. COMMENTARY • The sector with the most unicorns (8) is SaaS • The ecommerce and Fintech sectors have 6 and 5 unicorns, respectively FINTECH (6) ECOMMERCE (5) B2C APP (3) SAAS (8) MARKETPLACE (2)OTHER (5) B2C App, 3, 11% Ecommerce, 5, 17% Fintech, 5, 17% Market places, 3, 10% Other, 5, 17% SaaS, 8, 28% EUNICORNS, BY SECTOR European private tech companies with a valuation of > $1bn “EUnicorns” are growing (2 of 2) page | June 2016 | prepared for21 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 3
  21. 21. With some notable exits of European companies (Nov-15-2016YTD) $90m 1.3x $250m >250x $170m $700m 40x c. $180m c. 22x-45x $73.6m 2.7x $30m 3.0x $32m Source: Cobalt/ S&P Capital IQ Note: Sectors ordered with parent sector first, then subsectors BUYERTARGETBUYERTARGET UK Rest of Europe Sectors: internet services / marketplace / hospitality Sectors: software / video conferencing / cloud Sectors: software / online games Sectors: software / ticketing Sectors: software / security Sectors: software / SaaS / cloudSectors: software / B2C app Sectors: hardware / lasers page | June 2016 | prepared for22 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 4
  22. 22. Agenda 1. Silverpeak overview 4 2. European venture environment: recent trends 11 3. Thoughts on the Italian market 23 4. Criteria and tips for international “growth” rounds 26 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. page | June 2016 | prepared for23
  23. 23. There are relatively few scale-up rounds in Italy, even fewer from international investors Digital platform to help consumers to save money when shopping via offers and leaflets €10,000,000 Series C September 2015 Fastest growing sport social network $5,000,000 Series A March 2016 Online platform for activities, tours, museums, shows and art events €5,000,000 Series A March 2015 End-to-end management of online video €8,000,000 Series B May 2016 Roboadvisor €16,000,000 Series A November 2015 Italian biotech startup €10,000,000 Series A March 2015 Field audits in crowdsourcing €6,500,000 Series B May 2016 Biomedical devices for stem cell applications €8,700,000 Venture May 2016 Biotech company €12,000,000 Series A May 2016 Biotech Provider of a cloud Wi- Fi platform $8,000,000 Series B March 2016 Provider of online games $15,000,000 Series A January 2016 page | June 2016 | prepared for24 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. Note: ordered reverse chronologically
  24. 24. IPO Announcement: May 2016 Amount raised: £12.8m Market Cap: £33.2m Sold to Announcement: 2015 Value: Undisclosed Sold to Announcement: Feb 2015 Value: Undisclosed Sold to Announcement: May 2016 Value: Undisclosed Sold to Announcement: Sep 2014 Value: €133m (estimated) Sold to Announcement: Jul 2015 Value: $30m Sold to Announcement: Feb 2015 Value: $55m Sold to Announcement: May 2016 Value: Undisclosed However, there are notable Italian M&A exits to foreign buyers Sources: CapitalIQ, Mergermarket, company filings Note: ordered reverse chronologically (Rocket Internet) page | June 2016 | prepared for25 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. Sold to Announcement: June 2016 Value: €100-150m
  25. 25. Agenda 1. Silverpeak overview 4 2. European venture environment: recent trends 11 3. Thoughts on the Italian market 23 4. Criteria and tips for international “growth” rounds 26 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. page | June 2016 | prepared for26
  26. 26. Date Company Description, Amount raised Investors Date Company Description, Amount raised Investors Apr-16 • Vacation rentals meta-search • $20m Series B May-16 • Travel agents marketplace • $21m Series C Apr-16 • European P2P lending platform • $13.5m Series B Mar-16 • Direct debit • $13m Series C Mar-16 • Student loans • Series B: £19m + £100m Debt financing Apr-16 • Roboadvisor • €7m Series A Nov-15 • Roboadvisor • €16m Series A Apr-16 • Background checking • $25m Series B Mar-16 • Shift planner • $14m Series B Mar-16 • Document management • €33m Series B May-16 • End-to-end management of online video campaigns • €8m Series B Nov-15 • Student accommodation • $24m Series A Apr-16 • Field audits in crowdsourcing • €6.5m Series A Sep-15 • Money-saving digital shopping platform • €10m Series C May-16 • DIY & Gardening ecommerce • €13m Series B Mar-16 • Recipes & ingredients delivery • $17m Series B Mar-16 • Fastest growing sport social network • $5m Series A Mar-16 • Wi-Fi engagement platform • $8m Series B Selected international scale up rounds TravelFintechSoftware/SaaSMarketplace E-commerce/ FoodOther page | June 2016 | prepared for27 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. Undisclosed investors Other Undisclosed investors
  27. 27. Comparison of selected scale up rounds - size Size  Scale-up rounds come at different stages of companies’ growth (A-C rounds)  Customer/user base is of a meaningful size − Indicatively 50+ customers in B2B or 100k-1m+ users in B2C or B2B2C  Revenues in the millions, often > €10m  Sizeable team, often larger than 50  Some internal presence already established page | June 2016 | prepared for28 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. TAKEAWAYS Travel Software / SaaS Fintech E-commerce / Food Marketplace Other Evaneos HomeToGo Planday Mosaicoon M-FilesCorp ScalableCapital GoCardless MoneyFarm FutureFinance Onfido Lendix ManoMano MarleySpoon BeMyEye UniPlaces DoveConviene (Shopfully) Cloud4Wi TOK.tv Founded 2009 2014 2004 2009 1987 2014 2011 2011 2013 2012 2014 2012 2014 2011 2011 2010 2014 2012 HQ FR DE UK IT FI DE UK IT UK UK FR FR DE IT PO IT IT IT Stage / size C / $21m B / $20m B / $14m B / €8m B / €33m A2 / €7m C / $13m A / €16m B / £19m B / $25m B / $13.5m B / €13m B / $17m A / €6.5m A2 / $24m C / €10m B / $8m A / $5m Date May-16 Apr-16 Mar-16 May-16 Mar-16 Apr-16 Mar-16 Nov-15 Mar-16 Apr-16 Apr-16 Mar-16 Mar-16 May-16 Nov-15 Sep-15 Mar-16 Mar-16 Stage / size B / $6m A / €6m A / $3.8m Seed / €0.7m A / €6m A1 / €4m B / $7m Seed / €3m A / $26.5m A / $4.5m A / €3.2m Seed / €2m A2 / $3.5m Seed / €2m A1 / $3.5m B / $5.2m A / $4m Angel / $0.8m Date Jan-14 Jul-15 May-14 Jun-13 Apr-13 Apr-15 Jan-14 Jan-14 Mar-14 Feb-15 Mar-15 Sep-14 Apr-15 May-14 Oct-14 Dec-14 Mar-14 Jun-14 Users / Customers (#) 120k (since day 1) 100k 1,000 250k eyes/ customers 20k rooms 13m users 8m users Revenue €14m (2012) € 0.4m (2014) $15m (2014) € 32m (2014) €5m (2014) Team Size (#) 88 70 80 80 226 35 69 36 38 96 31 63 89 58 136 120 70 11 Supply side / other indicators 650 agents 150 countries 6m properties 250 partners 800m user-reach 450 partners 33 UK universities 10m checks International Presence P P P P P P P P P P P P P P User growth 100% 20% (per month) 300% loan growth 40% (per month) 300% 1500% Rev. growth >100% 220% 180% Months since last round 28 9 22 36 36 12 26 22 24 14 13 18 11 24 13 9 24 21 Strategic Partners P P P P Board / team Profile P P P P P P P P P Size 1000% 1000% in booking value Latest round 600% 3rdParty Validation Prior round Traction
  28. 28. Comparison of selected scale up rounds - traction page | June 2016 | prepared for29 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. Traction  Users/revenue growth of 50-100%+ − Growth acceleration comes also from initial internationalisation  Growth pattern lasting typically for more than 3 years  Typically not yet profitable: investment for growth TAKEAWAYS Travel Software / SaaS Fintech E-commerce / Food Marketplace Other Evaneos HomeToGo Planday Mosaicoon M-FilesCorp ScalableCapital GoCardless MoneyFarm FutureFinance Onfido Lendix ManoMano MarleySpoon BeMyEye UniPlaces DoveConviene (Shopfully) Cloud4Wi TOK.tv Founded 2009 2014 2004 2009 1987 2014 2011 2011 2013 2012 2014 2012 2014 2011 2011 2010 2014 2012 HQ FR DE UK IT FI DE UK IT UK UK FR FR DE IT PO IT IT IT Stage / size C / $21m B / $20m B / $14m B / €8m B / €33m A2 / €7m C / $13m A / €16m B / £19m B / $25m B / $13.5m B / €13m B / $17m A / €6.5m A2 / $24m C / €10m B / $8m A / $5m Date May-16 Apr-16 Mar-16 May-16 Mar-16 Apr-16 Mar-16 Nov-15 Mar-16 Apr-16 Apr-16 Mar-16 Mar-16 May-16 Nov-15 Sep-15 Mar-16 Mar-16 Stage / size B / $6m A / €6m A / $3.8m Seed / €0.7m A / €6m A1 / €4m B / $7m Seed / €3m A / $26.5m A / $4.5m A / €3.2m Seed / €2m A2 / $3.5m Seed / €2m A1 / $3.5m B / $5.2m A / $4m Angel / $0.8m Date Jan-14 Jul-15 May-14 Jun-13 Apr-13 Apr-15 Jan-14 Jan-14 Mar-14 Feb-15 Mar-15 Sep-14 Apr-15 May-14 Oct-14 Dec-14 Mar-14 Jun-14 Users / Customers (#) 120k (since day 1) 100k 1,000 250k eyes/ customers 20k rooms 13m users 8m users Revenue €14m (2012) € 0.4m (2014) $15m (2014) € 32m (2014) €5m (2014) Team Size (#) 88 70 80 80 226 35 69 36 38 96 31 63 89 58 136 120 70 11 Supply side / other indicators 650 agents 150 countries 6m properties 250 partners 800m user-reach 450 partners 33 UK universities 10m checks International Presence P P P P P P P P P P P P P P User growth 100% 20% (per month) 300% loan growth 40% (per month) 300% 1500% Rev. growth >100% 220% 180% Months since last round 28 9 22 36 36 12 26 22 24 14 13 18 11 24 13 9 24 21 Strategic Partners P P P P Board / team Profile P P P P P P P P P Size 1000% 1000% in booking value Latest round 600% 3rdParty Validation Prior round Traction
  29. 29. Comparison of selected scale up rounds – third party validation page | June 2016 | prepared for30 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4. 3rd party validation  Blue chip brand name association: customers, strategic partners, board member  Visibility: PR, awards, testimonials, analysts coverage, events and conferences  Traction from previous round and quality of existing investors TAKEAWAYS Travel Software / SaaS Fintech E-commerce / Food Marketplace Other Evaneos HomeToGo Planday Mosaicoon M-FilesCorp ScalableCapital GoCardless MoneyFarm FutureFinance Onfido Lendix ManoMano MarleySpoon BeMyEye UniPlaces DoveConviene (Shopfully) Cloud4Wi TOK.tv Founded 2009 2014 2004 2009 1987 2014 2011 2011 2013 2012 2014 2012 2014 2011 2011 2010 2014 2012 HQ FR DE UK IT FI DE UK IT UK UK FR FR DE IT PO IT IT IT Stage / size C / $21m B / $20m B / $14m B / €8m B / €33m A2 / €7m C / $13m A / €16m B / £19m B / $25m B / $13.5m B / €13m B / $17m A / €6.5m A2 / $24m C / €10m B / $8m A / $5m Date May-16 Apr-16 Mar-16 May-16 Mar-16 Apr-16 Mar-16 Nov-15 Mar-16 Apr-16 Apr-16 Mar-16 Mar-16 May-16 Nov-15 Sep-15 Mar-16 Mar-16 Stage / size B / $6m A / €6m A / $3.8m Seed / €0.7m A / €6m A1 / €4m B / $7m Seed / €3m A / $26.5m A / $4.5m A / €3.2m Seed / €2m A2 / $3.5m Seed / €2m A1 / $3.5m B / $5.2m A / $4m Angel / $0.8m Date Jan-14 Jul-15 May-14 Jun-13 Apr-13 Apr-15 Jan-14 Jan-14 Mar-14 Feb-15 Mar-15 Sep-14 Apr-15 May-14 Oct-14 Dec-14 Mar-14 Jun-14 Users / Customers (#) 120k (since day 1) 100k 1,000 250k eyes/ customers 20k rooms 13m users 8m users Revenue €14m (2012) € 0.4m (2014) $15m (2014) € 32m (2014) €5m (2014) Team Size (#) 88 70 80 80 226 35 69 36 38 96 31 63 89 58 136 120 70 11 Supply side / other indicators 650 agents 150 countries 6m properties 250 partners 800m user-reach 450 partners 33 UK universities 10m checks International Presence P P P P P P P P P P P P P P User growth 100% 20% (per month) 300% loan growth 40% (per month) 300% 1500% Rev. growth >100% 220% 180% Months since last round 28 9 22 36 36 12 26 22 24 14 13 18 11 24 13 9 24 21 Strategic Partners P P P P Board / team Profile P P P P P P P P P Size 1000% 1000% in booking value Latest round 600% 3rdParty Validation Prior round Traction
  30. 30. Recurring themes on growth rounds The characteristics of EU companies successful in raising growth rounds vary significantly, also due different sectors and business models Some themes can be drawn by combining business insight with data-based evidence  Clear and “investible” equity story  Strong value proposition  Proven revenue model  Sustainable business model and cost structure  Operational leverage  Referenceable customers  Organisational scalability  Global businesses (not country champions) with geographical expansion plan  Market sizing: bottom-up and top-down  Customer segmentation  Customer-based forecasting  Competitive analysis  Unit Economics ─ Customer acquisition costs ─ Sales cycle  Pricing structure Attractive business fundamentals Ability to articulate the value proposition page | June 2016 | prepared for31 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  31. 31. Final negotiationsGo-to-marketPreparation phaseBefore the fundraising  Raise the company visibility and profile - Board that includes high- profile independent industry figures - Attract senior talent, possibly from non-domestic markets - PR and industry analysts coverage  Financial support from existing investors (finance the business to sustain process)  Establish early relationships with potential investors in “non-suspect times”  Defining and sizing the target market, linking into commercial pipeline, revenues and market share  Correct positioning of the business (incl. competitive landscape)  Business model based on unit economics that can be verified in due diligence  Preparing and rehearsing the management presentation  Involve the first-line reports to the CEO, as appropriate  Balance time/resources between time with investors versus running the business  Identify and speak to the “A- list” investors: relevant experience, available funds, fitting criteria  Phase the approaches: first B-list, then A-list  Clear answers backed up by spreadsheets or documents  Process that makes the investors feel “special”  Use competitive deal dynamics appropriately  Staged supply of info  Meeting or exceeding the forecasts over the fund raising period  Involve the Board to support the CEO in the negotiations  Be well informed of current market terms (financial and non-financial) What needs to happen for a successful B-round fund raising page | June 2016 | prepared for32 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  32. 32.  Wrong timing - Starting the process without sufficient financing - Starting too late increasing the risk of running out of money - Starting too early without sufficient demonstration points - Overplaying the cycle: rushing for fund raising when not ready  Weak story - Go-to-market story too high level - Business plan dependent on new revenue streams that have not been demonstrated - Limited or no exposure to strongest competitors or global players - Lack of exit planning  Wrong process - “Polluting” the market ahead of the process - Selling to investors like selling to clients - Missing the numbers during the process - Speak about valuation and pricing too early when there is not enough interest - Not enough managers involved; too many employees involved - Provide too much or too little information • Fund raising usually takes longer than expected • Companies often think that they already have good presentation materials: they rarely do • Process requires careful thinking: small things can make the difference Typical mistakes on B-rounds page | June 2016 | prepared for33 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  33. 33. • Advisors become an extension to the company and the Board • A “fresh pair eyes” • Enhance the equity story and the company positioning in its marketplace • Hiring advisors indicates that the fund raising is serious • Advisors provide perspective and get management ready: − Early in the process, “force” management to think about their own business in the way investors will Time leverage  CEO and management focus on the business  Communicate the feeling of management’s “time preciousness” Investors selection and pre-qualification  Knowledge of the investment community and identification of suitable investors Documentation and analysis  Marketing materials preparation: cover email, teaser, presentation  Financial modelling  Help the company with the analyses that investors will ask for Marketing and process management  Investors’ introductions and follow-ups  Ability to identify the market feedback and address it  Control of information flow  Creating competitive tension Expertise to negotiate and defend valuations  Valuation analysis  Experience on precedent valuations and current market trends Execution  Management of multiple parties  Data room management  Negotiation of closing documents A B C D E F The role of advisors page | June 2016 | prepared for34 Silverpeak Overview European venture environment Italian market Tips for international “growth” rounds1. 2. 3. 4.
  34. 34. Silverpeak IB is authorised and regulated by the Financial Conduct Authority Thank you. page | CONFIDENTIAL Silverpeak LLP 23 Hanover Square London W1S 1JB United Kingdom www.silverpeakib.com

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