Laszlo is a US/Hungarian investor and executive. His venture capital, private equity, investment banking and operational experience spans e-commerce, Internet, automotive and transport, financial services, consumer and retail, energy and power, health care, manufacturing, technology, business services, and media and telecom, all across Europe. Prior to founding iEurope, he was a Managing Director at Bankers Trust Company/BT Alex Brown in London.

1. #STARTUPADDVENTURE
LASZLO CZIRJAK
iEUROPE
DIFFERENCES BETWEEN
CEE & US STARTUP ECOSYSTEMS

2. Innovation or Implementation?
OR

3. US has more:
Investments
Investors: Venture Capital funds and Angel Investors
IRR and cash on cash returns
Exits (IPO, Trade sale and other)
But Europe maintains the race:
No difference in IPO Exit Likelihood
US has 9% more likely chance of a trade sale than with the
EU
Within Europe: The UK is considered the best versus
Germany and Benelux that are considered the worst (but
it’s changing)
3
Venture Capital: US vs EU
Source: Dow Jones and British Private Equity & Venture
Capital Association: “European Venture Capital Myths &
Facts” – 2013 January

4. 4
Venture Capital in EU and CEE
CEE

5. 5
Why are there Differences?
US has more serial entrepreneurs & more experienced teams
More industry specific experienced investors in the US
More startups in the US
No difference in likelihood of success… But…
European investments have only 15% serial entrepreneurs while
US investments have 35%
Experience /background of Investors appears similar between
the US and Europe
Source: Dow Jones and British Private Equity & Venture Capital Association: “European Venture Capital Myths &
Facts” – 2013 January

6. 6
And Different Approach to Innovation
European Entrepreneurs:
Less entrepreneurs, and many come from large companies
Focus on life style (company car, vacation, dividends) versus on
equity value growth
Fear of failure – social pressures, regulation and lack of personal
bankruptcy resolutions
EU grant focus too much
Investors:
US investors focus on the entrepreneur, while European
investors focus more on financial performance
Financial focus means that Europeans seek profitability
sooner and do not favor funding a longer loss phase
European investors are more risk averse
Smaller fund sizes in Europe

7. 7
What are Traits of a “Good” Entrepreneur?
Passion, sacrificing, focus
Risk taker
Understands market needs
Implementer - market
entry and growth
Willingness to seek and listen
to experienced mentors and advisors

8. 8
What are “Good” Investor Traits?
Sector and operational experience
Proactive involvement in interest of growth
Network – connections to what entrepreneur needs
(and Silicon Valley not for all)
More investment capacity: Follow-on, syndications
Deal/Transaction experience including structuring –
(e.g. appropriate team motivational system and fair
“preferred shares” concepts)

9. 9
Are there Valuation Differences:
US vs EU vs CEE?
Answer – Yes!
Lower in Europe but depends on sector, phase and country
Even lower in CEE
US is “buzzing” – a lot of money need be deployed –
seller’s market
Europe has limited supply of VC funds. In most
countries it’s a buyers market and valuations are
lower. CEE is even lower.
CEE see definitive and growing interest from Western
European and US funds

10. Source: iEurope Capital, Quora
Differences in Fund Raising by Phase –
US vs EUValue

11. 11
Suggested Focus for Entrepreneurs
Customer value delivery focus
Create and maintain competitive edge … market
principle based
Not based tax evasion and only government contracts
Transparent and stakeholder focused
communication
reduces perceived risk
avoids misunderstandings

12. CEE Success Stories

13. iEurope’s Investors & Focus
iEurope Investors =
“Family Offices” and High Net Worth Individuals
with Substantial Business Experience and Networks
iEurope Capital = Fund Management Company
Targeting Niche Investment Areas
Managing Multiple Funds and Relationships
Traditional Private Equity & Estate Investments

14. New iEurope Innovation Fund Focus
IT and Media
Technology-enabled Business Services
Renewable Energy Technology
Health/Medical Equipment and Services
Niche Industrial Technology
Consumer Products/Services

15. Thank You
Laszlo R. Czirjak
www.ieurope.com
Email: laszlo@ieurope.com