EUROPE HAS NEVER BEEN BETTER

Nenad Marovac, DN Capital, 2012

Who reads The Economist?

It’s time to change the record

Ever used this?

Or this?

Or this?

Recognize these?

What do they have in common?

Yes, Europe is the source of many global leaders

9

• Worldwide gaming portal• Estimated valuation: $600

million

• Online dating service• Current valuation: $360

million

• Exit price: €2 billion (eBay)• Spun out and reacquired by

Microsoft for $8.5 billion

• Enterprise software• Exit price : $6.5 billion (IPO)• Acquired by HP for $10.2

billion

• Mobile gaming company• Estimated valuation: $1.2

billion

• Private-sale online retailer• Estimated valuation: $3.0

billion

• Music recognition mobile app• Estimated valuation: $1 billion

• Music streaming software• Estimated valuation: $1

billion

8 European Start-ups generated c.$25bn of value* over the last 10 years

*THESE VALUATIONS ARE ROUGH ESTMATIONS AND SHOULD NOT BE CONSIDERED AS THE EXACT VALUES OF THE PRESENTED COMPANIES

Putting this in context

10

$25bn of Value Generated by 8 Companies

Reasonably assume that 50% of Equity is Owned by Founders and Management Team

Yes, that is $12.5bn going to the entrepreneurs!

So, what makes Europe so successful?

� Evolution of the European ecosystem� Emergence of serial, experienced

entrepreneurs� Global leading companies coming from

Europe and generating substantial returns� European start-ups going international� US VCs investing in Europe

A new ecosystem is emerging in Europe

1

.

Higher quality companies

Higher returns

… helping to create the new generation of

successful entrepreneurs

The emergence of serial entrepreneurs

… supported by high profile, experienced

angel and seed funding…

… while major events and groups are nurturing the

ecosystem…

The emergence of serial entrepreneurs

The vibrant entrepreneurial ecosystem in Europe is led by serial and experienced entrepreneurs:

Lukasz Gadowski

Marc Simoncini

Niklas

Zennstrom

Brent Hoberman

Stefan Glaenzer

Marc Simoncini

Xavier Niel

Brent Hoberman

Lars Hinrichs

Lukasz Gadowski

NiklasZennstrom

Nenad Marovac

Supported by high profile,experiencedangel and seed funding…

Giuseppe Zocco

1996 2000 2006 2008 2010 20112009

And of Course the Infamous Trio …

… while major events and groups are nurturing the ecosystem…

SEEDCAMPSEEDCAMP

LeWeb ParisLeWeb Paris

DLDDLD

… helping to create the new generation of successful entrepreneurs

A new wave of young and talented European entrepreneurs:

Hej jag ärDanielEk

Hi! I AmAlexander Ljung

Hallo ichbin Dirk Graber

Hej jag ärJacob de Geer

The Top US VCs have now accepted that Europe is a great place to start a company

� Bessemer, KPCB, Sequoia and Union Square Venture have all invested in European start-ups, including:

Such an ecoystem has enabled European start-ups to conquer the world…

100m+downloads of “Angry Birds”

84m+ tags per monthShazam for TV – Partnered with 50% of Super Bowl Advertisers

Stardoll by barbie$20.99 retail price

2m+ app downloads on mobile devices

500K+Fon Hotspots

Diadmond Dashfeatured in 14/19 app stores in Africa

50% of Kids Aged 6-12 have adopted a pet

So where is the action?Legend

> $1bn

>$100m

Potential

($100m or more)

Valuation at 1st exit

A = Acquired;

I = IPO

P = Potential Exit

Where is Europe Leading the Way?

MUSIC Games

E-commerce Software

Consumer Digital Media Trends

The “App-economy”

� Revenue from major app stores grew from $830 million in 2009

to an estimated $5.6 billion in 2012

Consumer Digital Media TrendsMobile Games

� 1 billion downloads

� 50m Angry Birds Space

� downloads in 35 days

� Gamers play Angry Birds 200 million minutes � per day!

� 16 years of gameplay every hour!

� Reported valuation of $1 billion+

The market for start-ups in Europe has never been better

24

High quality entrepreneurs and ecosystem

Smart MoneyMarket ready for success

stories

QUESTIONS ?

THANK YOU!

Nenad Marovacnenad@dncapital.com

+44 (0)20 7340 1600