Venture capital and the opportunities in the Italian digital economy. A presentation from Annapurna Ventures.

1. Annapurna I early stage venture fund September 2011 Venture Capital for Italy -

3. Digital innovation is part of our daily life

4. Great companies are backed by great investors

8. A recent trend: Founder ’ s funds / Seed funds worldwide Former entrepreneurs are backing new entrepreneurs with funding & mentorship Company / Fund Founders Area Year Size Andreessen-Horowitz Marc Andreessen (Netscape, Ning) USA 2009 $300 M Atomico Ventures II Zennstrom-Friis (Skype) UK 2010 $165 M Innovation Works Kai-Fu Lee (Google China) China 2009 $115 M Felicis Ventures Aydin Senkut (Google Inc.) USA 2010 $40 M Founders Collective Eric Paley (Brontes Technologies) USA 2009 $40 M ISAI Pierre Kosciusko-Morizet (PriceMinister.com) France 2010 $32 M PROfounders Capital Michael Birch (Bebo) UK 2009 $30 M

12. Some examples of Italy ’ s successful digital entrepreneurship history Core business: Exit date: Exit strategy: Valuation at exit: Current mkt cap: Online broking of financial services May 2007 IPO (Italian Stock Exchange, STAR segment) ~170 M€ ~220 M€ (sep 2010) Online travel aggregation (hotels) September 2008 Acquired by Expedia (multiproduct online travel aggregator) Estimated >500 M€ N/A E-commerce (multibrand apparel) November 2009 IPO (Italian Stock Exchange, STAR segment) ~220 M€ ~360 M€ (sep 2010) Mobile & web media and advertising July 2000 IPO (Italian Stock Exchange) ~120 M€ ~80 M€ (sep 2010)

13. There is a big technological opportunity in Italy Italy is as innovative as the United Kingdom and three times more than Spain Italian EPO patent ratio versus million inhabitants for high tech technologies is just 2.8% less than in UK but is three times higher than in Spain. (Our analysis based on Eurostat database - 2010)

14. ICT is the most common technology of Italian spin offs The number of Italian university spin off companies is growing steadily Scientific entrepreneurship is becoming a common habit among universities. Spin off companies are one of the most common targets for venture investments (Our analysis based on Netval Report - 2010) CAGR 18%

15. ICT is the most common technology of Italian spin offs Annapurna will select among the most common technology used by Italian high tech entrepreneurs. (Our analysis based on Netval Report - 2010)

16. Lack of international capital - 1 770M Eu Funds at first closing with European focus None of the funds operating in Europe currently in first closing is focused in Italy. Furthermore funds with large geographical coverage (63% of total capitals) doenot perform seed or first rounds and does not provide hands on entreprenurial coaching. Source: our analysis based on PreQuin database 2010 – early stage funds focused on Annapurna ’ s technological areas

17. Lack of international capital - 2 800M Eu Funds raising with European focus None of the funds operating in Europe currently raising capitals is focused in Italy. No funds are raised in Southern Europe and big funds with continental or intercontinental coverage represent 62% of capital raised. Source: our analysis based on PreQuin database 2010 – early stage funds focused on Annapurna ’ s technological areas

18. Opportunity Annapurna is the only new player to operate in a high intensity deal flow country like Italy and will leverage on co-investments with Pan-European funds for second rounds

21. Annapurna: track record A multiplatform publishing and advertising solution for newspapers, magazines, catalogues and newsletter . O n-line credit broking platform based on comparative search tools. Self-service mobile app development solution for the consumer market. Recommender system for the media & entertainment market. On line wealth management solution for the consumer market. +Plugg empowers objects with intelligence and interaction with smartphones.

22. Paperlit

23. Money360.it

24. AppsBuilder

25. Annapurna I team combines strong industrial and financial experience Massimiliano Magrini Founder, Managing Partner Founded Google Italy and Altavista Italy. 20 years of experience in Business Development and General Managment in Media and Technology companies. Mario Mariani Senior Partner Co-founded and managed Tiscali, funded incubator TheNetValue. 15 years of experience in project development and general management for the ICT sector. Raffaele Mauro, Ph.D. Associate 5 years of experience at Bocconi University and various internet start ups, developing projects related to finance, digital innovation and entrepreneurship. Alessandro Perrone Analyst BSc in Economics at Bocconi University. Member of the board of advisors at SEP - Il Secolo XIX; analyst in 2008 in the brokerage department of Cushman & Wakefield. ANNAPURNA VENTURES

26. Contacts Massimiliano Magrini [email_address] M: +39 335 779 3385 T: +39 02 4966 1426 Blog: ipdixit.com

28. News & Press 16/06/2010-Il Sole 24 Ore – CentroNord “ In appena due anni di vita ha già effettuato dieci investimenti, dall'agricoltura alle nanotecnologie, dalle scienze della vita all'elettronica, puntando su giovani imprese e Pmi consolidate ma innovative. Si tratta di TTVenture ” 09/03/2009 - Affari Finanza “ Ogni progetto viene analizzato sia sotto il profilo scientifico che quello imprenditoriale, grazie ad una squadra di analisti provenienti dal mondo della ricerca industriale ed accademica che si affiancano ai tradizionali analisti finanziari tipici dei fondi chiusi” 17/03/2008 - Affari e Finanza “ Si chiama TTVenture ed è il fondo chiuso di venture capital (ma gli investimenti previsti non riguardano solo le start-up) il cui scopo è semplice: favorire il trasferimento tecnologico alle imprese dei risultati dell’innovazione”