Entrepreneurship Seminar Planning a successful Exit

25th February 2015

© 2015 Atlantic Bridge

ELAINE COUGHLAN

2

CO FOUNDER ATLANTIC

BRIDGE CAPITAL

@COUGHLANELAINE

@ATLANTICBRIDGEV

Atlantic Bridge Leading Technology Platform Applying “Bridge Model” to US and China

Who are We

– Entrepreneurs with Capital track record of scaling companies – $7bn in 5 IPOs on NASDAQ as entrepreneurs – 10 companies sold > $1bn in proceeds for investors – Tech Growth Equity in Europe & US – 4 Funds > $500M in Assets – Set up 2004

What we do – “Bridge Model” into US and China markets – Focused on Disruptive Sectors of Big Data, Mobile, Cloud, SaaS & Core Tech – Global Platform Accelerates the scaling up of European & US Companies – Invest Series A and later Performance – Top performing Growth Equity Fund in Europe – > 30 Companies invested in Ireland, Europe, US

© 2014 Atlantic Bridge 3

Global Platform applying a “Bridge Model” for scale-up

© 2015 Atlantic Bridge 4

Dublin London

Accelerate Scaling through Our Global Platform and Networks in US and China markets

Silicon Valley China

Dublin London Palo Alto Beijing Hong Kong Sand Hill Road

>$1Bn in proceeds generated for investors and founders

December, 2007

has been

acquired by

May 2012

has been acquired

by

IPO on NASDAQ

Stock Exchange

Lead Underwriter:

April 2012 December 2012

has been

acquired by

December 2011

has been

acquired by

May 2011

has been

acquired by

April 2011

has been

acquired by

IPO on NASDAQ

Stock Exchange

Lead Underwriter:

May 2000

Atlantic Bridge Exit Track Record

5

Has been acquired

by

October 2014

VC Funds becoming more focused on specific domains

Positive …..The Irish Investment VC/PE Sector is evolving well

Corporates invest strategically to keep at front of innovation curve

Gives a first look at new and emerging technologies and trends

Spurs innovation internally

25% of all deals now involve a corporate Investor

Engaging early with corporate starts relationship with a potential investors, partners, customer and acquirer

Corporate Venture Investment increasing

© 2014 Atlantic Bridge 7

M&A and IPO Increasing in Europe

• M&A is most likely exit outcome

© 2015 Atlantic Bridge 8

Source: Dow Jones Venture Source

Outcomes are becoming bigger in Europe

• IPO • M&A

© 2015 Atlantic Bridge 9

Company Date Market Cap

Aug-14 $12.3Bn

Oct-14 $8.4Bn

Mar-14 $6Bn

Oct-;14 $6.7Bn

Apr ’14 $2.4Bn

Oct ’13 $2.3Bn

June-14 $1.57Bn

Oct ’12 $1.3Bn

May ’14 $910m

Mar ‘13 $884m

June-14 $171m

June-14 $135m

Company Date Acquirer Valuation

Oct ’13 $3Bn

Sept ’14 $2Bn

Feb ’14 $900m

Feb ’14 $800m

Mar ’14 $600m

Feb ‘14 $555m

Jan ’14 $527m

Jan ’14 $400m+

July ‘14 $215m

Oct ‘14 $150m

Sept ‘14 $493

July ‘14 $450

Europe is home to many global leaders and billion $ companies

© 2015 Atlantic Bridge 10

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

© 2014 Atlantic Bridge

European tech companies reaching USD 1bn valuations •It Took 10 years for 3 companies to reach $1bn •Europe has created 24 in last 4 years

Scaling up for Growth Mkt Share and Strong Exit

• Small business plan = small outcome

• Limited window + competition is intense

• First mover advantage in most industries – Leads to Category leadership

• Having a value add investor can help: – enter new mkts

– Expand the company

– Hire and attract the best talent

– Build Your board

– Win customers, have credibility and stability in capital structure

– Secure Bigger Exits

© 2014 Atlantic Bridge 11

IPO Window is Open but volatile

• High profile IPOs including Ali Baba generating confidence

– Sucked some of the air out of IPO Mkt

• Strong and predictable revenue stream very important

• Companies taking longer to go public

• Raising much larger rounds privately first

– Uber 42bn, Airbnb, SnapChat 19bn

• Outcome of all this not yet know

– FOMO !!

© 2015 Atlantic Bridge 12

However Europe has less growth capital than the US Taking on Capital influences Outcomes……

13 Source: VentureSource

• (Investment by Stage US vs. Europe, Q1 2008 to Q3 2014)

© 2015 Atlantic Bridge

Why Companies are acquired

• Strategic

• Customers

• Revenue

• Technology

• Staff

© 2015 Atlantic Bridge 14

Increasing value

M&A begins with establishing relationships

• BU Support critical

• Senior relationships

• Combined selling into corporate base

• Securing corporate investor

• Strategic customer deals

• Displace large competitor from key accounts

• Companies want to be confident of smooth integration with company – Trust critical

– People/Culture and integration risk

© 2015 Atlantic Bridge 15

Impediments to Successful M&A

• Important to have as few restrictions on M&A as possible

– Right of first refusal and information rights can derail an M&A process

– If must have….limit time as much as possible

• Make sure IP licensing is clean

– Can be used as bargaining chip over price

• Negotiate as much payment upfront

– Acquirer will want retention for key staff

– Ensure any earn outs are achievable and in your control

© 2015 Atlantic Bridge 16

China is a €15Bn+ FDI Opportunity in Europe

© 2015 Atlantic Bridge 17

MAJOR TECH TREND: CHINA “GOES GLOBAL”

© 2014 WestSummit Capital – Private & Confidential

18

30-YEAR OPEN DOOR POLICY

FIRST TIER MARKET FOR

GLOBAL GOODS & SERVICES

EMERGENCE OF DOMESTIC

LEADERS WITH SCALE

HIGHLY COMPETITIVE DOMESTIC

MARKET

INTERNATIONAL EXPANSION IS

NEXT FRONTIER

ROLE OF TECHNOLOGY IN GLOBALIZATION

© 2014 WestSummit Capital – Private & Confidential 19

DESIRE TO BUILD NEW COMPETITIVE

ADVANTAGES

HUNGRY FOR INNOVATION & NEW

TECHNOLOGIES IN WESTERN WORLD:

ACQUIRE OVERSEAS TALENT

ENTER WESTERN MARKETS

PARTNERSHIP, INVESTMENT, M&A

OVERSEAS INVESTMENT BY CHINESE COMPANIES

© 2014 WestSummit Capital – Private & Confidential 20

Exits, Realisations

© 2014 Atlantic Bridge 21

You have to Kiss a lot of Frogs

© 2014 Atlantic Bridge 22

To get A Prince

Role Of Advisors

• Seek domain specific advisors

• Must have senior level relationships

• Ideal if you receive starting a process

• Can generate sufficient interest to get competitive bidding

• Can be used as “bad cop” in negotiations

– Important not to sour working relationship for post acquisition world

• Important advisor incentivised correctly to drive outcome you want

© 2015 Atlantic Bridge 23

Thank You! For further information contact:

www.abven.com

+353 1 6034450

elaine@abven.com

© 2015 Atlantic Bridge