OSGi World Congress 2003

1. VC activities in EMEA
T Nicolle IBM PvC EMEA Business Dev Executive
10.10.03

2. EMEA VC PRIVATE EQUITY INVESTMENTS IN B$
0
2
4
6
8
10
12
2000 2001 2002 2003

3. EMEA VC PRIVATE EQUITY INVESTMENTS
DEALS FIGURES
0
1000
2000
3000
4000
5000
6000
7000
8000
2000 2001 2002 2003

4. EMEA VC PRIVATE EQUITY INVESTMENTS
SECTOR %
0
10
20
30
40
50
IT
Life
Microelec
Others

5. EMEA VC PRIVATE EQUITY INVESTMENTS
IT distribution in %
0
10
20
30
40
50
60
70
80
SW
Comms
Info
services

6. EMEA VC PRIVATE EQUITY INVESTMENTS
IT related distribution in B$ (All SW)
0
0.2
0.4
0.6
0.8
1
1.2
SW
Comms
Info
services

7. EMEA VC INDUSTRY FACTS
! 6x Smaller compared to the US VC industry
! Facing the most severe downturn in history
! Almost no seeding investment
! Average investment per deal : 0.7M$
! Major countries :1-UK 2-Germany
3-France
! Situation seems to improve (Q2 2003)

8. EMEA VC INDUSTRY TRENDS
! VC Industry still need consolidation. Just starting the process
! VCs are very selective and not likely to go after seeding or early
stage A companies.
! Trend is to consolidate selected companies in existing portfolio to
transition them from Stage A to B
! Exit pattern is almost exclusively M&A

9. What does it mean for you?
! In the past :
! 1999- 2000 + +Internet=
! 2001-2002 : Basic metrics applies :
! Defendable assets
! Go to market track of record with references
! Simple channel enablement strategy
! Today you need to demonstrate that you can
transition a company from STAGE A to B :
! World class leadership team are mandatory with solid track of record
! Understand strategic alliances with minor and major partners
! Understand how to to structure a go to market +channel enablement
! Can implement and manage non organic growth

10. How OSGi Alliance can help you?
! Technology is not important to VCs but building successful
Ecosystems is the key to build value added companies
! What does OSGi Alliance provide in this
context?
! Federate a strong community to serve multiple
markets with strong potential with an open approach view.
! Get accurate market trends
! Influence the market
! Offer access to the key players TO BUILD VIABLE
PARTNERSHIPS

11. Is it enough?
! No but it is a significant way to make THE difference
! THINGS TO REMEMBER
! VCs are not willing to feed existing businesses but concentrate
on growing ones
! Position in the value chain is KEY. Being an OSGi Alliance
active member can help to determine the right positioning with
the right partners
! Be innovative on how to manage non organic growth to
transition to Stage B A.S.A.P.

12. Questions?