Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Mario Orasche - Eagle Ventures - Stanford - Feb 8 2010


Published on

Talk on the state of venture capital in southeastern Europe, with a focus on the Balkans.

  • Be the first to comment

Mario Orasche - Eagle Ventures - Stanford - Feb 8 2010

  1. 1. Venture Capital in Central and Southeast Europe<br />Mario Orasche<br />Managing Partner & Founder, Eagle Ventures<br />European Entrepreneurship and Innovation Thought Leaders,<br />Stanford Engineering<br />February 8, 2010<br />
  2. 2. History of the RegionA brief review of about 16 centuries<br />Honey and blood over centuries in the Balkans<br />Bal = Honey<br />Kan = Blood<br />Byzantine Empire or Eastern Roman Empire (330-1453)<br />A pan-regional symbol: the double-headed eagle<br />Sarajevo, Bosnia 1914:<br />Assassination triggers WW I.<br />As of 19th Century<br />The Austrian / Austro-Hungarian Empire is prevailing until WW I.<br />
  3. 3. Central and Southeast Europe (‘CSE’) TodayIt remains complicated<br />Wars, pain and suffering prevail throughout the 20th century<br />Kingdom of Yugoslavia or Serbs, Croats and Slovenes (1918-1941)<br />EU Enlargement Process (Today)<br />US, UN, NATO, EU Peacekeeping forces inBosnia and Herzegovina (1995-2010)Kosovo (1999-2010)<br />Yugoslav Wars and NATO bombing of Bosnia (1991-2001)<br />
  4. 4. Emerging VC Landscape<br />High potential region, weak innovation ecosystem<br />CSE vs. CA <br />Huge untapped investment opportunity<br />Hungary: Pharma / Biotech<br />Slovenia: <br />RF technology<br />Romania: <br />IT, Pharma<br />Croatia: Chemistry, Telecom<br />Bulgaria: Electronics,<br />Semiconductors<br />Bosnia: Energy Generation,<br />Automotive<br />Serbia: <br />Computer Engineering, Programming<br />Macedonia:ICT Outsourcing <br />Montenegro: Energy Generation<br />* CSE in terms of Eagle Ventures’ focus region: BG, BIH, HR, HU, MK, MNE, RO, SLO, SRB <br />** Eagle Ventures is the first multinational tech VC dedicated to CSE<br />Page4<br />
  5. 5. Major Changes Over Last Decade<br />Environment NOW ready forVC investments<br />© <br />The CSE landscape has improved markedly for technology firms over the last several years<br />Other factors include:<br /><ul><li> Surge in purchasing power
  6. 6. Managerial skill sets
  7. 7. Technology centers / parks
  8. 8. M&A gaining traction</li></li></ul><li>ICT Indicators<br />Recent significant improvements<br />Strong and still growing ICT access indicators<br />* CSE in terms of Eagle Ventures’ focus region: BG, BIH, HR, HU, MK, MNE, RO, SLO, SRB <br /><ul><li> Household Internet penetration soared 4.6 times within 5 years (now close to 40%)
  9. 9. Mobile phone penetration grew about 3 times to > 100%</li></li></ul><li>Investment Activity<br />VC barely existent<br />Funds raised in 2008: €2.5 Bn (VC&PE)<br />Vast majority still into PE, although number of VC deals augments<br />€0.2Bn<br />vs. $28.6Bn, USA<br />Source: NVCA<br />Source: EVCA, 2008 (comprises entire Eastern Europe)<br />12 deals<br />CA: <br />- 1,137 VC Deals<br /><ul><li> $8.9 Bn</li></ul>Source: NVCA, 2009<br />43<br />46<br />Source: EVCA, 2008 (comprises entire Eastern Europe)<br />
  10. 10. Sectors<br />Eastern Europe vs. Silicon Valley<br />Besides Life Sciences, other high-tech sectors still lag behind in Eastern Europe<br />Source: EVCA, 2008 (includes PE investments)<br />Source: NVCA 2009, PWC Moneytree Report (VC only)<br />
  11. 11. LP Landscape<br />Not too different from the US<br />Limited investor landscape for emerging VCs<br />(€2.5 Bn, includes PE)<br />Source: EVCA, 2008<br /><ul><li> Top LPs are FoFs, Pension Funds and Other Sources
  12. 12. Endowments and Foundations are of significantly higher importance in the US </li></li></ul><li>Introduction to Eagle Ventures A Novel Approach<br />Unique investment focus and strategy generates high return potential<br />TRIPLE FOCUS<br />2<br />1<br />3<br /> CSE Region<br /><ul><li>Tier 1: Former Yugoslavia(Bosnia, Croatia, Macedonia, Montenegro, Serbia and Slovenia)
  13. 13. Tier 2: Bulgaria, Hungary and Romania
  14. 14. Selectively anywhere if there is a clear CSE connection</li></ul> Technology Sectors<br /><ul><li>Digital Media
  15. 15. Software & IT
  16. 16. Electronics
  17. 17. Greentech</li></ul> Early Stage<br /><ul><li>Primarily A and B investment rounds
  18. 18. Selectively, seed or late-stage venture
  19. 19. Co-investments with value adding VCs and co-investors
  20. 20. Started with €10 Mn cornerstone commitment, Abanka, Slovenia
  21. 21. Made first investment in leading-edge live video streaming platform
  22. 22. Continue fundraising in Europe and US, Fund target size €40-65 Mn ($100 Mn cap)</li></li></ul><li>Management TeamStrong VC, entrepreneurial and tech background<br />Tech Exit Value, $1.5 Bn<br />Profound local knowledge and sound tech VC track record<br />Tech Investment Value, $200 Mn<br />Mario Orasche, <br />Ljubljana, Slovenia <br />Entrepreneurial Experience<br />George Sarcevich, <br />Belgrade, Serbia<br />Corporate Experience<br />Ivan Vrdoljak,Zagreb, Croatia<br />
  23. 23. Eagle Ventures<br />West Coast approach – unique in CSE<br />Supervisory Board<br />Bostjan Heric<br />Tone Pekolj<br />Christian Schopper<br />Venture AdvisorsAdvice on Investment / Divestment Decisions<br />FUNDNew Europe Tech I<br />Modeled after West Coast VC organizationsto leverage knowledge and execution<br />Fund Management Company<br />Alon Adler<br />Alan Barrell<br />Peter Globokar<br />Mario Orasche<br />George Sarcevich<br />IvanVrdoljak<br />Nino Marakovic<br />Peter Zaboji<br />Managing Partner, SRB<br />Managing Partner, HR<br />Managing Partner, SLO<br />Investment Manager II<br />TBA<br />Vladimir Delic<br />Damjan<br /> Lampret<br />Portfolio Companies<br />Analyst, SRB<br />Tech Expert, SLO<br />Analyst, HR+SRB<br />2<br />3<br />4<br />5-15<br />1<br />Crucial Venture Capital Skill Sets<br />Venture Capital + Technology + Finance + Operations<br />Venture PartnersHands-on Management Support to Portfolio<br />Zdenek Bilek<br />Karl Heinz Messer<br />Dragan Pleskonjic<br />DamirSabol<br />Peter Szlavik<br />Domen Verdnik<br />
  24. 24. First Portfolio Company<br />Leading global player in real time video streaming<br /><ul><li>HQ Bay Area, top engineering team in Slovenia, Founded in 2008
  25. 25. Revenues $1 Mn
  26. 26. Headcount 20
  27. 27. Strategic partnership with Alcatel-Lucent
  28. 28. Customers:
  29. 29. Preparing financing round with Silicon Valley investors</li></ul>Offers a unique 2-way (up and down), 3-screen (mobile, web and broadcast) live video streaming platform<br /><br />
  30. 30. Contact<br />Thanks <br />Mario Orasche<br />Managing Partner, Founder <br />EAGLE VENTURES<br /><br /><br />