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Go Silicon Valley - INVESTOR: BEST PRACTICE + Q&A

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Presentation on 02-26-2015 Vienna, WKO 6th patch Go Silicon Valley initiative

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Go Silicon Valley - INVESTOR: BEST PRACTICE + Q&A

  1. 1. INVESTOR: BEST PRACTICE + Q&A Markus Wagner 26th of Feb. 2015; @MarkusWagner CEO - i5growth Inc. (Palo Alto) – www.innovationcenter.eu Chairmen of Adv. Board - i5invest seed capital (Austria/Vienna) Board AustrianStartups – Austrian Startup Association (non-profit) Investment Committee Member – SpeedInvest (seed and Series A fund in Austria)
  2. 2. 2 | 6/03/2015 MADE in AUSTRIA & Successful in the US (Silicon Valley) CONGRATULATIONS THIS WILL BE AN EXCITING TIME FOR YOU
  3. 3. 3 | 6/03/2015
  4. 4. 4 | 6/03/2015 …known for Mozart, Sissi & Sound of Music
  5. 5. 5 | 6/03/2015 …known for – Music & Culture …part of your job will be educating about Austrian tech & startup scene
  6. 6. 6 | 6/03/2015 Strong Austrian Brands
  7. 7. 7 | 6/03/2015 and recently known for a lively, liberal culture & tech scene
  8. 8. 8 | 6/03/2015 Vienna‘s Biggest Asset: 180.000 students in Vienna (40% int.)
  9. 9. 9 | 6/03/2015 Notable EXITS (starting by 2010): • 2010: fatfoogoo – Digital River • 2010: greentube - Novomatic • 2010: jajah - Telefonica • 2010: 123people - PagesJaunes • 2011: RF-iT Solutions – Enso Detego • 2011: sensordynamics - Maxim • 2011: silverserver – Tele2 • 2011: redcoon – Metro’s Media Saturn • 2011: dynaTrace - Compuware • 2011: payolution – Moneybookers / Skrill • 2011: checkfelix.com - KAYAK • 2012: Kununu - Xing • 2012: Tupalo – Herold / European Directories • 2012: Arztsuche24 – Herold / European Directories • 2012: Blue-tomato – Zumiez Inc. • 2012: paysafecard - Skrill • 2013: tripwolf – German Publisher • 2013: SolveDirect – Cisco • 2013: Runtastic – Axel Springer • 2014: Immobilien.net – ImmobilienScout24 • 2014: Wikidocs – Atlassian • 2014: MobFox – Matomy Media Group (MTMY:LSE) Notable Events (starting by 2012): • 2012: Andreessen Horowitz/Citi Ventures investment into Jumio • 2012: Blossom investment of seedcamp • 2013: CodeShip investment of seedcamp and Techstars • 2013: Former Expedia CEO invests in TourRadar • 2014: CodeShip receives US Series A • 2014: Foundertalks.org launches (brings YC alumni to Austria for experience exchange) • 2014: Ulmon investment of Global Founders Capital • 2014: 100% Austrian Team in YC patch • 2014: Talenthouse investment of ProSiebenSat.1 Media AG • 2014: Austrian team joins YC producthunt.com (founding team member) • 2014: Austrian flatout joins Cisco’s EIR program • 2014: Austrian Crate.io TechCrunch Disrupt Europe Winner • 2015: ChatGrape Betaworks (US) investment Austrian Ecosystem Exits / Notable Events
  10. 10. 10 | 6/03/2015 AUSTRIA i5invest USA i5growth WE ARE LONG TERM PARTNERS (through all stages, 2/year):  START-UP MENTORING  SEED FUNDING  CORPORATE DEVELOPMENT / M&A ADVISORY WE ARE LAUNCHPAD FOR THE US MARKET:  US MARKET ENTRY / STRATEGIC PARTNERSHIPS  START-UPs  EUREOPEAN VCs / ACCELERATORS  OLD ECONOMY
  11. 11. 11 | 6/03/2015 Portfolio Overview #inspire, #innovate, #incubate, #invest, #internationalize
  12. 12. 12 | 6/03/2015 Who we are – Our Team in Vienna – what‘s new Founded 2007, Vienna - partner i5growth Inc. in Palo Alto 6/03/2015 Herwig Springer CEO Corp. Dev., M&A h.springer@i5invest.com +43 650 530 8976 Patrick Prokesch Director Corp. Dev., M&A p.prokesch@i5invest.com +43 676 303 4854 Paul Weinberger Partner Markus Wagner Chairman of Advisory Board CEO - i5growth Inc./ USA Alexander Igelsboeck Advisory Board Martin Brunthaler Advisory Board Georg Novak Executive Assistant g.novak@i5invest.com +43 676 841 282 150 Bernhard Lehner Partner Vlad Gozman Partner Advisory Board Partner
  13. 13. US vs. Europe
  14. 14. 14 | 6/03/2015 US vs. EUROPE – ACCESS TO CAPITAL
  15. 15. 15 | 6/03/2015 3/6/2015 66% 0.00 0.50 1.00 1.50 2.00 2.50 3.00 Europe USA Enterprise Value / Sales - Jan 2015 Enterprise Value / Sales How do capital markets look at Internet Companies? Source: Capital IQ & i5invest Analysis US-based companies trade at a 66% premium above their peers in Europe. Companies in the Anglo-Saxon Region trade at higher multiples in general. Does being in the US add value for the sake of being in the US? 0.00 1.00 2.00 3.00 4.00 5.00 6.00 - 1,000.0 2,000.0 3,000.0 4,000.0 5,000.0 6,000.0 7,000.0 8,000.0 9,000.0 10,000.0 United Internet AG (DB:UTDI) Yandex N.V. (NasdaqGS:YNDX) Telecity Group plc (LSE:TCY) Top 3 "European" Enterprise Value EV / Revenues 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 - 50,000.0 100,000.0 150,000.0 200,000.0 250,000.0 300,000.0 350,000.0 Google Inc. (NasdaqGS:GOOGL) Facebook, Inc. (NasdaqGS:FB) eBay Inc. (NasdaqGS:EBAY) Top 3 American Enterprise Value EV / Revenues What are the big players and their valuations? USD in bn US vs. EUROPE – IT’S A BIG GIRL’s & BOY’s GAME!
  16. 16. 16 | 6/03/2015 US vs. EUROPE - IT IS EXPENSIVE THERE! 6/03/2015 Factors that should be considered when talking about a bubble Interest rates are basically 0% Total tech investments incl. M&A close to 2000 Rising pre-money values IPOs with negative Earnings Rising tech salaries We are in Europe (with still big global potential) BUT: We need to improve the ecosystem and create serial entrepreneurs with international exits 1 2 5 3 4 - 2,000.0 4,000.0 6,000.0 8,000.0 0 200 400 600 800 Tech investments Number of Deals Investments (USD in m) 2 4 0 20 40 60 80 100 The percentage of IPOs with negative earnings 3 0 20 40 60 80 100 Pre-Money Valuations Later Round Second Round First Round (USD in m) 5 86000 88000 90000 92000 94000 96000 98000 2009 2010 2011 2012 2013 2014 Software Engineer Base Salary (USD) Source: i5invest analysis, PwC, DJ VentureSource, Jay R. Ritter / Business Insider and Glassdoor / BI.
  17. 17. What are silicon valley investors looking for?
  18. 18. 18 | 6/03/2015 What are investors looking for? 1. Amazing management team (facebook, google, airbnb, …) 2. Strong IP / technology – protection of IP 3. It needs to solve a clear problem - clear product market fit 4. User traction, great growth 5. Revenues - proof of revenue potential 6. Huge market size 7. Competitive landscape: Defensibility, entry barriers 8. Capital needs 9. Clear sales & go-to-market strategy 10. Clear exit strategy 11. Sources of credibility & trust: known team-members, angels, accelerators, … 12. Office location: US / Silicon Valley / SF 13. Visa issues: none
  19. 19. 19 | 6/03/2015 …in the end supply and demand for investment opportunities drive the valuation Startupinvestment opportunities Angelinvestors (Deals) experience and points of reference for valuation Industry knowledge Angel network Supply Demand What is the value of a startup?
  20. 20. 20 | 6/03/2015 THE BAD NEWS: The supply is huge, no euro investments Hundreds of accelerators, incubators Tens of thousands of startups Thousands of founder teams of ex-googlers, facebook, NASA, tesler, Microsoft, EA, …
  21. 21. 21 | 6/03/2015 THE GOOD NEWS: Funding follows Success Use your time in the valley to work on your success: • Think big – most probably your idea serves a too small market for the valley (think 10x = 10 times as big) • Success means product – market – fit • Success means traction • KPI’s • Customers • Revenues • Users, Traffic, conversions • You will need a rock star team, with rock star execution skills • Build your network, you will need it later • Fail well = fast, learn, there are valuable leftovers, keep on going • Be open, the outcome might be different to what you think • You might move & flip • You might change your product, customers, business plan, team • You might go back to Europe and even be more successful there
  22. 22. Come prepared
  23. 23. 23 | 6/03/2015 Come prepared 1 1. Create a great linkedin presence (premium) 2. Create a great Angel.co presence 3. Create a great crunchbase presence 4. Choose a time of interesting industry events 5. Look for the right place to work (bay vs. SF, …) 6. Look out for interesting accelerator programs 7. Look out for experts, evangelists in your space, they might become angels later 8. Meet competitors, connect with peers 9. Meet former employees of competitors and potential future team members 10.Act as you always have been here for a long time 11.Bring a unlocked phone, multiple credit cards (or check) 12.Bring English business cards, pitch deck, train the pitch
  24. 24. 24 | 6/03/2015 Come prepared 2 13.Watch silicon valley show: http://www.hbo.com/silicon-valley#/ 14.Start-up Class from Y Combinator Sam Altman in Stanford: http://startupclass.samaltman.com/ 15.Reading Advice: http://www.amazon.com/Zero- One-Notes-Startups-Future/dp/0804139296 16.Start to read techcrunch frequently 17.Watch great company pitches on youtube, i.e. TechCrunch Disrupt 18.Learn about growth hacking: #500Distro https://www.youtube.com/user/500startups 19.Look for the right meetups (www.meetup.com) 20.Sign up for newsletter: http://www.aicsv.at/ 21.Go Silicon Valley - Austrian Pavilion Group
  25. 25. See you soon, in the valley!
  26. 26. 26 | 6/03/2015 Startup Mentoring and Seed Funding Venture 1 Venture 2 Venture 3 Venture 4 Venture 5 Innovation Management and Product Strategy Go-to-Market Strategy Company Setup and Office Infrastructure IT Dev. & Operations, Accounting, Finance Seed Funding, Business Planning & Public Funding HR & Recruiting Marketing, PR & Media Planning Social Media Marketing and SEO Development Project Management Product Management Development Project Management Product Management Development Project Management Product Management Development Project Management Product Management Development Project Management Product Management help ideas to grow ? International Business Network Business development

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