Don't go to Palo Alto.Go to EntrepreneurCountry - By Julie Meyer,MBE, Founder –...

Visions of the Future


How Ecosystem Economics™ will Define the Winners and Losers of the

Exponential Age


Three Visions of the FutureThe Technology Platform Companies take over every industry

• As Apple has to Music & Telecoms

• As Google has to Advertising

• As Amazon has to Books

The Digital Davids become disruptive forces and create new established giants

• As Wonga has to personal loans

• As airbnb has to travel• As Uber has to taxis

David and Goliath Must Dance

• David brings the new understanding of how technology enables an ecosystem through data and business model

• Goliath brings customers, distribution, scale and reach

Scenario Evidence Winners

vs.

vs.

1

2

3


The Face of Every EntrepreneurThey just may not show it to you!


Two Good Reasons

• They see the inevitable and advance the Future• They are willing to live abnormal lives


Capital Follows IdeasAlways Has, Always Will


The History


Let's Continue With The Historical Perspective….


Economic Growth since the end of the 18th Century has gone through 5 Distinct Stages,

associated with 5 successive Technological Revolutions

Five Successive Technological Revolutions, 1770’s to 2000’s

Technological Revolution

Popular Name for the Period

Core Country or Countries

Big-bang initiating the revolution

Year

FIRST The Industrial Revolution

Britain Arkwright’s mill opens in Cromford

1771

SECOND Age of Steam and Railways

Britain (spreading to Continent and USA)

Test of the Rocket steam engine for the Liverpool-Manchester railway

1829

THIRD Age of Steel, Electricity and Heavy Engineering

US and Germany forging ahead and overtaking Britain

The Carnegie Bessemer stell plant opens in Pittsburgh, Pennsylvania

1875

FOURTH Age of Oil, the Automobile and Mass Production

USA (with Germany at fist vying for world leadership), later spreading to Europe

First Model-T comes out of the Ford plant in Detroit, Michigan

1908

FIFTH Age of Information and Telecommunications

USA (spreading to Europe and Asia)

The Intel microprocessor is announced in Santa Clara, CA

1971© Proprietary & Confidential – Ariadne Capital

Lifecycle of a Technological Revolution

Gestationperiod

Big-bang

Paradigmconfiguration

Introduction of successive new products, industries and technology systems, plus

modernisation of existing ones

Constriction of potential

Time

Period one Period two Period three Period four

Around half a century

Deg

ree o

f te

ch

nolo

gy m

atu

rity

an

d m

ark

et

satu

rati

on

Early new products and industries. Explosive growth and fast innovations

Full constellation (new industries, technology systems and infrastructure)

Full expansion of innovation and market potential

Last new products and industries. Earlier ones approaching maturity and market saturation


AGE OF IT AND TELECOMMUNICATIONS50 ISH YEAR CYCLE – 1971 TO 20...?

• BIG BANG – NOVEMBER 1971 IN SANTA CLARA, CALIFORNIA

• Bob Noyce and Gordon Moore launched Intel’s first microprocessor, the precursor

of the computer on a chip

• INSTALLATION – late 1970’s through to Noughties

• 1976 – Steve Jobs, Steve Wozniak found Apple Computer

• 1984 - Michael Dell founds PC’s Limited later named Dell Computer Corporation

• 1985 – Irwin Jacobs founds QualComm, pioneer in Wireless Communications

• 1990 – CERN / Tim Berners Lee

• 1994 – Yahoo founded

• 2003 – Skype – “free calls on web”

• 2004 - Facebook founded

• THE TURNING POINT


The Revolution


THE REVOLUTION STARTS AS A SMALL FACT

WITH BIG PROMISEAND MOVES TO A SIGNIFICANT

FORCE IN THE MARKET


Technological Revolutions

• 1999 – David with

his slingshot wants to kill Goliath


The Economy & Social Institutions Respond

• 1999 to 2013 – Broadband and Mobile Technologies continue to invade our lives

• 2014 -David and Goliath must dance


The David & Goliath™ Model


Strategic Value

Network Effects- Lock In

Vulnerability

The David/Goliath Grid Model

Financial Value

“Dav

id”

– D

igita

l Ena

bler

– th

e ‘D

igita

l Car

’

“Goliath” – Distribution – The Highway

Ecosystem Economics™ – shifting industry players

Consumer Data driving new services

Network Orientation to business

Market is bigger than just top players

When partnering with, When acquired,

Brings lean operating system

2)

1) Brings new digital revenues

Und

erst

ands

“th

e ne

w c

omm

on s

ense

”

1)

2)

3)

4)

Can become the Operating System to the Industry

Can reinforce or gain a position as Industry Architect

1)

2)

© Proprietary & Confidential – Ariadne

Capital© Proprietary & Confidential – Ariadne Capital

Network-orientation to business


How do I acquire customers?


Examples of Corporates engaging with Digital Enablers

• Large corporates which are partnering and/or acquiring digital technology firms include:


If you didn't go to Palo Alto at the beginning, you will go to Palo Alto in the end …


APPLICATIONS“Digital Enablers”

INFRASTRUCTURE High Regulation, Low Margin, Others

using your investments without contribution

PLATFORMS

How entrepreneurcountry enables the App Economy

Transition to platform centric companies withCloud, Social,

MobileBig Data solutions

Goliaths(Non-

technology mid-large

enterprise)

Take advantage of Revenue

(Profits)

MakeInvestments in Assets (Costs)


Ecosystem Economics

™


Innovation is about Economics Not Technology

• Otherwise we’d all be flying the Concorde

• But we’re packed into Jumbo Jets


MONITISE IS THE THIRD FASTEST GROWING COMPANY IN THE UK


MobileOperat

ors

has created The Mobile Money Ecosystem over the past 12 years

Bank Platforms

CoreBanking

Other e.g.• CRM• Database

Wealth

Enabler

Use of standard Interfaces

3rd Party Providers

• Sharedealing• Insurance

Payments• Domestic • International

Shopping&

Loyalty

National

Services

• Transit• Utility

CardsProcessor

MobileTopUp


Price (GBp)MONI:LN


and Ecosystem Economics

• Google says that they organise the world’s information

• They actually organise the economics of the world’s information

• I, as a consumer of their search, am not given any economic upside in the search

transaction

• They have built a multi-billion pound business using – albeit anonymously – my personal

data – aggregated with that of others, but releasing none of the economic value to me

• Their biggest Achilles Heel is if someone in the search space were to cut a different set

of economics for the consumer

• Ariadne Capital found that entrepreneur – John Paleomylites – founder of BeatThatQuote,

and sold his business to Google on the 4th of March 2011 for a 122 EBITDA multiple for

these reasons


Industries are being transformed by digital

business models


In 2014, “Network Benefits” accrue to those Firms who understand their role in their ecosystem and organise the

economics for it

This in turn leads to exceptional returns for their shareholders


Don't Go To Palo Alto – Go To www.entrepreneurcountry.com


http://www.entrepreneurcountry.com/

entrepreneurcountryUK - Laboratory • East Africa

• Finland• German-speaking Europe• Ireland• Nigeria• Nordic Region• Poland• Southern Mediterranean• South Africa• Spain• United Kingdom –

NorthWest, Cardiff, London

Expanded to 15 regions on the 30th September:


Be A Native

Not A Tourist


Don't Go To Palo Alto – Go To entrepreneurcountrywww.entrepreneurcountry.comThank you ....

Julie Meyer, MBE Chairman and Chief Executive - Ariadne Capital; Managing Partner – Ariadne Fund; Founder – Entrepreneur Country;

Julie Meyer is an American who has lived in Europe (Paris and London) since September 1988, building global leading technology-enabled firms, shaping the financing of entrepreneurship and helping founders to build & define their industries. She founded Ariadne Capital in August 2000 to bring the "Entrepreneurs Backing Entrepreneurs" model from her native California to Europe as no one was doing this in Europe at the institutional level at that time.

Julie is known for tackling system-level problems and backing entrepreneurs who do so as well. In 1998, she saw the need for a people & investor network across Europe, and built First Tuesday for the market, selling in July 2000 for 20 X her seed investment. She is an advisor to and shareholder in Matternet, the much loved and inspiring drones/UAV firm, as well as a Board Director to Vestergaard, the for-profit humanitarian development firm. She advised Monitise, a global leader in mobile money, from 2004 through 2012. She has backed explosive growth companies like Espotting in 2002, Zopa in 2005, SpinVox in 2006, BeatThatQuote in 2009 (sold to Google), Taggstar & Quill in 2012.

Julie was part of the early team at Tom Teichman's NewMedia Investors in 1998, which became early stage investment firm Spark Ventures in October 1999. At NewMedia Investors, she co-managed deals in key technology companies including ArcCores, lastminute.com and WGSN.

She has been named one of INSEAD's Top 50 Alumni, Ernst & Young Entrepreneur of the Year, World Economic Forum Global Leader of Tomorrow, TIME Magazine Digital 50, one of WIRED's 100, one of London's 1000 Most Influential People (Evening Standard) and one of the Top 30 Most Influential Women in Europe. Julie is also one of the BBC's Online Dragons in the award-winning Dragon's Den Online, and is also currently setting up a "Dads and Daughters" foundation to support and extend her thesis that women's identities are shaped - for good or bad - by the messages they receive from their father's as children and young adults. She is on the Board of Directors of INSEAD, her business school. She graduated with a Bachelor of Arts degree in Humanities and English Literature from Valparaiso University, near Chicago, US in 1988, having spent her junior year in Cambridge, UK in 1986.

In 2011, she was asked to be on the Secretary of State's Entrepreneurs Panel. In 2012, Julie was honoured to receive an honorary MBE, for her ‘services to entrepreneurship’. Julie’s first book ‘Welcome to Entrepreneur Country’ was published in June 2012.


[email protected]@juliemariemeyer


mailto:[email protected]

Appendix



Ariadne Capital Limited Business Units

Venture Capital

Investment

Bankingentrepreneurcountry

• Ariadne Capital Fund - A target £50m venture capital fund with £5.3m under management

• Early-stage investor in entrepreneur-led businesses, providing capital for seed and start-up (post-product, early revenue) rounds; ~£500k

• Invest in "digital enablers" bringing high-growth to the established companies with large distribution and reach in the new digital ecosystems which are emerging

• Ariadne Capital has provided investment banking expertise to leading corporates & fast-growing start-ups. We specialise in delivering valuations & transactional advice & support. We have concluded more than £350 million worth of transactions since 2000.

• We undertake:o Valuations o Private Placementso M&A advisory

‒ sell-side M&A‒ buy-side M&A‒ Private placements

• entrepreneurcountry is a ‘Global Discovery Platform’ operating in 15 regions globally.

• Corporate Partners pay to have access to and discover ‘digital enablers’ which can bring digital revenues to their firms through partnerships

• Welcome To Entrepreneur Country – What it is, How to Find It, Why You Should Go There was published in the UK in late 2012, & has been published in Russian and Greek with a Spanish edition currently underway.

• www.entrepreneurcountry.com & www.follow-the-entrepreneur.com

• Workshops – ‘A Day in Entrepreneur Country’ Show and Tell days where Ariadne facilitates the presentations of high-growth ‘digital enablers’ to corporates which enable them to see how to build digital revenues in their marketplace

• Marketscans – Leveraging our dealflow, network and portfolio, we produce a report of relevant innovation.

Ariadne Capital LimitedFounded in 2000 by Julie Meyer

& 62 leading entrepreneurs who

have backed her

Appendix : Slide 1


http://www.follow-the-entrepreneur.com/

Seamless: raised €36m in capital in Nov 2013 Mobile Payment

SimplyZesty sold to UTV Media plc in March 2012 Social media agency

BeatThat Quote sold to Google in March 2011 Product Comparison

AIM listed in 2007; current market cap ~£160m (2011) Mobile banking

Stan James acquired 50% Racing Today, Nov 2010 Online Gambling

Acquired by EMI, August 2010 Viral Widget Distribution

70% acquired by Powwownow, July 2010 SaaS Collaboration Tools

Acquired by Nuance for $102m, Dec 2009 Voice-as-a-Service

Acquired by EMC for $153m, May 2006 Data Protection

Acquired by eBay for $2.6bn, Sep 2005...(Microsoft 2011 for $8.5bn ) VoIP

Acquired by Miva for $183m, June 2004 Pay-Per-Click

New.netAcquired by Vendare Media in 2004, then to Connexus and Epic Advertising Search Relevancy

Ariadne Exits 2000-2013Ariadne has spotted trends and entrepreneurs early


Appendix : Slide 2

Ariadne Fund I Limited PartnersWorld-class networks provides strong market intelligenceStrong expertise in asset management, financial services and venture capital Institutional Investor

Leading entrepreneurs with successful track records and exits

Leading Corporate Executives and Business Builders

Mike Alfant AC Sabeer Bhatia AC

Andrew Black AC

Peter Cunningham AC

Wilf Eaton AC Andre Hoffman

Clive Jacobs Irwin Jacobs

Fusion Systems Founder ( FS Japan sold to IMRglobal – NASDAQ); Citibank; Bankers Trust; AT&T Bell Labs

Hotmail Founder (sold to Microsoft); Sabse/Jaxtr CEO; Nano City Chairman;

Betfair Founder & Non-Executive Director (IPO, 2010) product roles at Boxall, MoD

Founder & Chairman of Input; technical & management positions with ICL

Founder , OASiS Group plc (sold to Sybase Inc); NXD QA plc; Founder & Chairman Metaskil

NXD of Roche Pharmaceuticals; European M&A James Capel &Co; Nestle UK

Founder of Holiday Autos (sold to lastminute.com) for £43m; Chairman of Travel Weekly

Founder of Qualcomm; ex-CEO, Chairman, Founder Linkabit; ex-MIT professor

Clive Pinder John Redford AC

David Rowe AC Chris Taylor Martin Velasco AC

Edward Wray AC

Founder Healthy Worlds; ex-CEO Vielife (sold to CIGNA); ex-CEO Metrius, Board Expert-24

Broadcom Director Engineering; founder & VP Systems, Element 14; Acorn CTO

Easynet Founder & CEO; Sold Easynet to BSkyB (2006) and then reverse takeover Lloyds TSB Dev. Capital (2010)

Taylor Brothers Founder - built and sold businesses in music and entertainment;

Health & Biotech Entrepreneur, Founder & Chairman Anecova; Founder & Board Sumerian and Speedlingua

Betfair Founder & Non-Executive Chairman; Ex-CEO Betfair (IPO, 2010); JP Morgan; NXD – Funding Circle

Travis Baxter Nicholas Birtles

Nigel Burton AC

AI Noor Ramji Jon Rubinstein

Russ Shaw Wendy Williams

Nigel Wray

Content Director Bauer Radio. Former MD Bauer Radio; worked at RTL, EMAP, Operating Partner Advent Int’l SoundOut NXD

Ran Europe Ops for Comshare, GUPTA, Ingres (£100m revenue p.a. sold to Tipco), CEO Constellar (sold to DataMirror Corp)

CFO PetroSaudi Oil Services. Granby Oil & Gas (IPO 2005, sold 2008), Finance director; Ex-CFO Advanced Power; CFO WILink; UBS

EVP, Misys; Former CEO BT Innovate & Design; CIO Qwest Com. Swiss Bank Corp.; Head of ops for Credit Suisse First Boston

QualComm NXD Hewlett-Packard Senior VP & GM; Palm CEO; Apple Senior VP (iPod), Amazon NXD

Former Head of International Skype; Former Global Innovation Director Telefonica Chairman Marketing Group; CMO O2

North-east Chief Crown Prosecutor - Crown Prosecution Service (CPS)

Domino’s Pizza, early Investor & NXD; Saracens Owner & Chairman; Entrepreneur; Singer & Friedlander

Ian Cormack AC Eric Hagman Felda Hardymon

Toon den Heijer AC

Qatar Financial Centre Authority NXD; ex-AIG CEO Europe; 32 years Citibank – incl. UK CEO

Non-Executive Chairman Matthew Algie and Espresso Warehouse; NXD AON UK, UBS Wealth Mgt

GP Bessemer Venture Partners; NXD Endeca, Silicon Valley Bank, Vertica

Gilde Investment Management Managing Director IT Funds; ~€500m iAUM


Appendix : Slide 3

Don't go to Palo Alto.Go to EntrepreneurCountry - By Julie Meyer,MBE, Founder –...

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