Backing the companies of tomorrow            ////////////////////////////////////////////Creandum Nordic Technology Exit A...
Creandum exit database•  Database with ~400 private technology company exits (~250 with exit value)    •  20+ parameters c...
Nordic technology firms represent a significant portion of global BUSD exits   •  Nordic companies represented 9% of all  ...
and a disproportionally large portion of Europe                                                       Deloitte Europe     ...
Nordic entrepreneurs create world class companies & services             Sample of recent successful companies & services ...
The Nordics is one of the world’s most attractive regions for a VC               Best Countries         Global            ...
and the Nordic tech opportunity is big and increasing              MEUR                          Total Nordic exit value 1...
The Nordic region consistently produces a significant number of winners  Tech exits larger than €100M 1998 - 2004         ...
and the trend is towards more solid businesses with considerable revenues  Tech exits larger than €100M 2005 - 2011       ...
Sector considerations: Consumer and software increasingly important                     Distribution of Nordic            ...
Geo considerations: Sweden most important geography with 42% of value                        % of Nordic exits and exit va...
IPO and trade sale to US most important for large exits          Exit value distribution for trade                        ...
Nordic VC allocation is required to capture the value of the region                                      % of Nordic exits...
Wrapping up >  Large and growing Nordic tech market   •  €2.4Bn yearly exit value last 7 years   •  A significant part of ...
Upcoming SlideShare
Loading in …5
×

2012 02 creandum nordic exit analysis

5,404 views

Published on

A presentation of the Creandum Nordic Tech Exit Analysis

Published in: Economy & Finance, Business

2012 02 creandum nordic exit analysis

  1. 1. Backing the companies of tomorrow ////////////////////////////////////////////Creandum Nordic Technology Exit Analysis 1
  2. 2. Creandum exit database•  Database with ~400 private technology company exits (~250 with exit value) •  20+ parameters covered including exit value, exit revenue, exit type, years from inception to exit •  Companies from Denmark, Finland, Norway & Sweden •  Focus on VC & angel investments – no buyout or privatizations •  Exit value (€m) of companies at time of trade sale or IPO (end of 1st day trading) •  EXCLUDING Life science, med tech, bio tech, retail, energy (oil & gas etc) & environmental and consulting•  Sources include official information (web sites, press releases, newspaper articles, annual reports) as well as financial resources & databases•  Feel free to use the material but please mention the source•  The database is good but not complete – total exit values are likely to be higher Copyright Creandum 2011 2
  3. 3. Nordic technology firms represent a significant portion of global BUSD exits •  Nordic companies represented 9% of all BUSD Technology Exits 2005-2009 global billion dollar technology exits during 9% 6% 2005 – 2009 •  In terms of M&A exit value for VC-backed 18% technology companies, the Nordics represented ~18% compared to the US 35% during the same period (but only 5% of active VC firms & likely even lower percentage of capital) •  Sample of recent significant BUSD Nordic 32% company exits: Nordic (3) US (11) Rest of Europe (6) China (12) IPO: $6.7Bn M&A: $2.75Bn Others (2) IPO: $1Bn M&A: $1BnSources: NVCA, EVCA, Thompson, Dow Jones, Creandum, Balderton Copyright Creandum 2011 3
  4. 4. and a disproportionally large portion of Europe Deloitte Europe Billion dollar exits Fast-500 companies Amount of VC investment 27,6% 33,0% 14,0% 2005-2009: Nordics Rest of Europe Europe’s 100 largest Olympic gold software companies medals:)* Population 22,0% 3,5% 21,0%*Includes all gold medals between 1896-2010 for existing and previous European countriesSources: EVCA, Thompson, Dow Jones, Creandum, Truffle, Deloitte, International Olympic Committee Copyright Creandum 2011 4
  5. 5. Nordic entrepreneurs create world class companies & services Sample of recent successful companies & services created by Nordic entrepreneursCreandum Note: Skype, Soundcloud, SuccessFactors, Playfish primarily established outside Nordics Copyright Creandum 2011 5
  6. 6. The Nordics is one of the world’s most attractive regions for a VC Best Countries Global Researchers Global Corruption R&D as % of Rank To Start a Innovation per 1000 Competitive- Perceptions GDP3 Company1 Index2 employed3 ness Index4 Index5 1 Denmark Iceland Israel Finland Switzerland Denmark 2 Canada Sweden Sweden Iceland Sweden New Zealand 3 United States Hong Kong Finland Denmark Singapore Singapore 4 Sweden Switzerland United States Sweden United States Finland 5 New Zealand Denmark Denmark Norway Germany Sweden 6 Ireland Finland Austria Austria Japan Canada 7 Switzerland Singapore Iceland United Kingdom Finland Netherlands 8 Norway Netherlands France Estonia Netherlands Australia 9 Iceland New Zealand Belgium Slovenia Denmark Switzerland 10 Netherlands Norway United Kingdom Luxembourg Canada NorwaySources: 1) Small Business Administrations Office of Advocacy 2) INSEAD 3) OECD 2010 Factbook4) World Economic Forum 5) Transparency International CPI 2010 Copyright Creandum 2011 6
  7. 7. and the Nordic tech opportunity is big and increasing MEUR Total Nordic exit value 1998-2011 7 000,0 6 000,0 5 000,0 4 000,0 3 000,0 €2.4Bn 2 000,0 €1.4Bn 1 000,0 0,0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Exit year Avg. annual exit value 1998-2004 Avg. annual exit value 2005-2011 •  Average exit value per year for the last seven years is €2.4Bn •  Total exit market value increased 72% between economic cycle in ‘98-’04 and ‘05-’11 •  17% of M&As & IPOs represent 82% of total exit value •  VC investors in 100% of exits > €500M and 73% of exits > €100M (% of total exits)Sources: EVCA, Thompson, Dow Jones, Creandum Copyright Creandum 2011 7
  8. 8. The Nordic region consistently produces a significant number of winners Tech exits larger than €100M 1998 - 2004 M&A: 940 MEUR IPO: 514 MEUR IPO: 474 MEUR M&A: 961 MEUR IPO: 491 MEUR IPO: 383 MEUR M&A: 600 MEUR IPO: 189 MEUR IPO: 347 MEUR IPO: 430 MEUR M&A: 284 MEUR IPO: 200 MEUR IPO: 191 MEUR M&A: 230 MEUR IPO: 167 MEUR IPO: 278 MEUR SendIt M&A: 120 MEUR M&A: 150 MEUR* M&A: 169 MEUR IPO: 254 MEUR M&A: 135 MEUR Revenue 1 MEUR 10 MEUR 50 MEUR Median P/S: 15 Median Rev: 27 MEUR*Part of Kelkoo exitSources: Creandum Copyright Creandum 2011 8
  9. 9. and the trend is towards more solid businesses with considerable revenues Tech exits larger than €100M 2005 - 2011 IPO: 5’148 MEUR IPO: 732 MEUR M&A: 645 MEUR M&A: 282 MEUR M&A: 645 MEUR M&A: 473 MEUR M&A: 2’200 MEUR M&A: 258 MEUR IPO: 415 MEUR M&A: 222 MEUR M&A: 172 MEUR IPO: 198 MEUR M&A: 196 MEUR M&A: 162 MEUR M&A: 194 MEUR IPO: 160 MEUR M&A: 140 MEUR M&A: 186 MEUR M&A: 121 MEUR M&A: 109 MEUR M&A: 100 MEUR Revenue 1 MEUR 10 MEUR 50 MEUR Median P/S: 6 Median Rev: 53 MEURSources: Creandum Copyright Creandum 2011 9
  10. 10. Sector considerations: Consumer and software increasingly important Distribution of Nordic Total exit value distribution last 5 exits > €100M years for selected sectors 14 12 11,4% 10 Hardware 8 45,4% Software 6 43,3% Consumer 4 2 0 Consumer Software Hardware Other * 1998-2004 2005-2010 •  Significant increase in value creation in consumer sector and decrease in hardware and software •  Consumer and software close to 90% of value created in selected sectors •  Emerging new sectors (other) likely to generate value as well*REC IPO valued at 5,143 MEUR.Sources: NVCA, EVCA, Thompson, Dow Jones, Creandum, Balderton CONFIDENTIAL 10
  11. 11. Geo considerations: Sweden most important geography with 42% of value % of Nordic exits and exit value per country 1998-2011 60% 208 50% €10.9Bn 40% €8.2Bn Number of exits 30% Exit value 20% 70 Number of IPO 52 €3.9Bn Company value at IPO 42 €3.1Bn 10% 0% Sweden Norway Denmark Finland •  Swedish & Norwegian companies represent 70% of exits & 73% of exit value •  Large portion (62%) of Norway exit value through one IPO (REC €5.1Bn) •  Denmark & Finland continually decreasing in importance since 2001Skype 50/50 Sweden & Denmark, MySQL 50/50 Sweden & Finland Copyright Creandum 2011 11
  12. 12. IPO and trade sale to US most important for large exits Exit value distribution for trade Nr of exits for trade sale & sale & IPO (of total exit value) IPO per exit interval % of Exits 8%   100%   90%   80%   RoW   70%   US   60%  49%   34%   Other  nordic  country   50%   40%   Inside  country   30%   IPO   20%   10%   0%   Exit =<  10   10  -­‐  49   50  -­‐  99   100  -­‐  499   ≥  500   intervals 3%   6%   in M€ •  Lack of larger Nordic exit opportunities since IPO-market dried up after 2000 •  Larger exits very dependent on US exit market •  VC investors in 100% of exits larger than €500M and 73% of exits larger than €100M (% of total exits) Copyright Creandum 2011 12
  13. 13. Nordic VC allocation is required to capture the value of the region % of Nordic exits with VCs from Nordic, % of Nordic exits with VCs from Nordic, UK & Rest of Europe 1996 - 2010 UK & Rest of Europe 1996 - 2010 100.0% 80.0% Nordic VC US VC 60.0% RoW VC RoE VC 40.0% UK VC 20.0% 0.0% Exit value Intervals (MEUR) >=10 >=50 >=100 •  Nordic VCs present in ~90% of all VC-backed exits larger than €100M •  Non-Nordic VCs are on average only represented in 1.3 Nordic exit deals each – very difficult to access the value from outside the regionSources: EVCA, Thompson, Dow Jones, Creandum Copyright Creandum 2011 13
  14. 14. Wrapping up >  Large and growing Nordic tech market •  €2.4Bn yearly exit value last 7 years •  A significant part of European and global exit •  Increased high-quality deal flow •  Software & consumer sectors dominant and Sweden most important geography >  Significantly maturing ecosystem •  More serial entrepreneurs •  Successful entrepreneurs becoming angel investors •  Experienced growth company management teams available •  Few but more experienced investors active in the region CONFIDENTIAL 14

×