European VC from aUK PerspectiveStanford EngineeringEuropean Entrepreneurship & Innovation7th January 2013Anne GloverCEO, ...
Amadeus Capital – a Leading European ICT Investor Early stage investor and business builder •   Experienced entrepreneurs ...
Our Experience                                            VC & Transaction                                      70%     Ex...
We increasingly back serial entrepreneurs                                            80% % of companies with serial entrep...
We increasingly attract international deal flow in our sectors                              100%                          ...
Mobility – we understand our sectors deeply       Apps/       Services      Service      Layer      Control      Layer    ...
Amadeus Mobile Portfolio* …… and help them scale exponentially                                         … has grown to >£35...
We Back Ambition… and guide our companies to globalise from early on             Portfolio companies with sales into regio...
… and have exited in all market conditions6,000                       Amadeus Exits vs. Nasdaq Index5,0004,0003,0002,0001,...
SummaryAmadeus Capital• Experienced early stage investor and business builder• Consistently at the forefront of key trends...
Europe is still sub-scale relative to the US……on every dimension (2007-2012)                  Avg. Fund Size              ...
..however this means that median pre-money  valuations are much better in EuropeMedian Pre-money valuations: EU as a % of ...
…and today is the right time to invest because: VC capital invested in Europe is at its lowest level since 1997           ...
…and low fund raising vintages offer the best returns                              European Venture Returns by Vintage Yea...
The UK is a good place to invest…              Total Amount Invested by Country 2007 -2011                       Finland  ...
… but you need to choose the moments to invest!                                                                          ...
The ChallengesFund raising         the euro crisis         poor VC returns since 2000         regulatory burden on LPs fro...
Amadeus Office Network      Cambridge                 London                    Bay AreaInvestment & back office        In...
Anne Glover - Amadeus Capital - UK - Stanford - Jan 7 2013
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Anne Glover - Amadeus Capital - UK - Stanford - Jan 7 2013

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Anne Glover - Amadeus Capital - UK - Stanford - Jan 7 2013

  1. European VC from aUK PerspectiveStanford EngineeringEuropean Entrepreneurship & Innovation7th January 2013Anne GloverCEO, Amadeus Capital Partners Limited,Chairman of EVCA, VC Council
  2. Amadeus Capital – a Leading European ICT Investor Early stage investor and business builder • Experienced entrepreneurs and start-up executives • 15 years  85 companies  7 funds  £500m AUM • Global and multi-cultural Consistently at the forefront of key trends in the ICT industry • Backed leaders in every ICT wave since the 70’s • Active today in mobile services, security software, medtech and h’care IT • Deep global network of investors, entrepreneurs and corporations Proven contributor to the creation of tech ecosystems • Generates benefits beyond returns – M&A, partnerships, incubation • Active in the development of clusters – Cambridge, London, Stockholm • Leading role in BVCA, EVCA and UK and EU innovation initiatives 2
  3. Our Experience VC & Transaction 70% Experience Operational 60% ExperiencePercentage of Total Work Experience 50% P&L Responsibility International 40% Experience Start-up Experience 30% Experience Gained at 20% Amadeus 10% 0% Total of 219 Person Years Unique transaction and business building capabilities 3
  4. We increasingly back serial entrepreneurs 80% % of companies with serial entrepreneurs 70% 68% 60% 50% 40% 37% 30% 20% 17% 10% 0% AMI AMII AMIII 5
  5. We increasingly attract international deal flow in our sectors 100% 90% 80% 70% Percentage of Deals Seen 60% 50% 40% 30% 20% 10% 0% UK International - Europe International - USA International - Other Source: Amadeus internal analysis 6
  6. Mobility – we understand our sectors deeply Apps/ Services Service Layer Control Layer SS7 SIP / IMS Transport Layer Access Layer Devices 7 Amadeus Mobile Portfolio
  7. Amadeus Mobile Portfolio* …… and help them scale exponentially … has grown to >£350m in annual sales 400 350 Portfolio Revenue (£ millions) 300 250 82% CAGR 200 150 100 50 0 1 2 3 4 5 6 Years from First Investment *17 mobile companies excluding End2End 8 because of short holding period
  8. We Back Ambition… and guide our companies to globalise from early on Portfolio companies with sales into region > 5% North America Western Europe 7 1 19 Global 3 Emerging Markets 22 out of 30 portfolio companies sell into emerging markets 9
  9. … and have exited in all market conditions6,000 Amadeus Exits vs. Nasdaq Index5,0004,0003,0002,0001,000 0 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 … frequently via IPOs 10 Source data: Nasdaq Composite indices
  10. SummaryAmadeus Capital• Experienced early stage investor and business builder• Consistently at the forefront of key trends in the ICT industry• Consistently built market leading companies• Focussed on the sectors we know, rather than following momentum based trends• Proven contributor to the creation of tech ecosystems BUT… 11
  11. Europe is still sub-scale relative to the US……on every dimension (2007-2012) Avg. Fund Size No. of Funds 140 200 120 100 58% 150 45%$millions 80 100 60 40 50 20 - - US Europe US Europe Annual Funds Raised US 25 Europe 20 = 26% $Billions 15 10 5 - US Europe 12 Dow Jones Venture Source
  12. ..however this means that median pre-money valuations are much better in EuropeMedian Pre-money valuations: EU as a % of US Median Pre-money valuations: US vs EU 1H’12 $50 46m $45140% $40120% $35 30m US100% $30 EU80% $25 21m $2060% $15 11m40% 10m $1020% 4m 3m $5 1m 0% $0 2007 2008 2009 2010 2011 1H12 Later Second First Seed Later Second First Seed Source: Venture Source 13 :
  13. …and today is the right time to invest because: VC capital invested in Europe is at its lowest level since 1997 5,000 25 4,500 Number of companies (lines) 4,000 20 3,500 €bn (bars) 3,000 15 2,500 2,000 10 1,500 1,000 5 500 0 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Seed Start up Later Stage 14 Source: EVCA
  14. …and low fund raising vintages offer the best returns European Venture Returns by Vintage Year (IRR % - GBP) 10% 100 Tech Credit 8% Bubble/Crash Bubble/Crash 80 6% 60 No. of Funds raised 4% 40IRR% - GBP 2% 20 0% 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 -2% -20 -4% -40 -6% -60 Upper Median No of funds raised Slide 6 Source: Thomson One
  15. The UK is a good place to invest… Total Amount Invested by Country 2007 -2011 Finland Austria Italy Ireland 1% 2% 2% 2% Belgium 3% Denmark 3% United Kingdom Norway 23% 4% Switzerland 4% Netherlands 5% Spain France 6% 19% Sweden 7% Germany 17% …it remains the largest VC market in Europe 16 Source: EVCA
  16. … but you need to choose the moments to invest!   Seed Early Rev  Expansion ...Seed and Early Stage .. OR… Expansion Stage 17
  17. The ChallengesFund raising the euro crisis poor VC returns since 2000 regulatory burden on LPs from Brussels banks, insurance companies, pension funds all pulling out fund of funds struggling because of double fee burden large pools of capital cannot write small cheques for small VC fund sizes Need to re-invent LP base yet again – family offices, endowments, corporatesExits High value exits require competition at the time of exit, often vs. IPO European stock market investors are risk averse and dividend driven Need to scale companies successfully to list in the US or Need to create globally compelling stories, and sell to an ex-US cash rich corporations VC is about entrepreneurship and we are having to be entrepreneurial as well 18
  18. Amadeus Office Network Cambridge London Bay AreaInvestment & back office Investment Investment & connectivity 2 Mount Pleasant, 16 St James’s Street, 321 Pacific Avenue, San Cambridge CB3 0RN London SW1A 1ER Francisco, CA 94111 Tel: +44 1223 707 000 Tel: +44 20 7024 6900 Tel: +1 (415) 699 4834 19

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