European Entrepreneurship and Innovation Thought Leaders · 2013. 8. 2. · A Case for Venture in...
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European Venture Capital Market European Entrepreneurship and Innovation Thought Leaders Innovation Thought Leaders April 13 2009 April 13, 2009 Uli W. Fricke Managing General Partner Triangle Venture Capital Group Member of the EVCA Executive Committee Copyright Triangle Venture Capital Group Management GmbH, April 2009
Transcript of European Entrepreneurship and Innovation Thought Leaders · 2013. 8. 2. · A Case for Venture in...
European Venture Capital Market
European Entrepreneurship and Innovation Thought LeadersInnovation Thought Leaders
April 13 2009April 13, 2009
Uli W. FrickeManaging General PartnerTriangle Venture Capital GroupMember of the EVCA Executive Committee
Copyright Triangle Venture Capital Group Management GmbH, April 2009
AgendaAgenda
A Case for Venture in Europe 3A Case for Venture in Europe……………………………………………………….. 3
Status Quo – VC in Europe vs. US………………………………………… 3
Future Perspectives of the European VC Market….……………………. 6
Triangle in the European VC Landscape.………………………………………….. 8
Triangle – An introduction…….…...………………………….…………… 8
Case Study - iOpener Media ..……………………………………......…… 14
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A Case for Venture in EuropeA Case for Venture in Europe
Status Quo - VC in Europe vs. US
Europe: fewer deals / smaller amounts
Significantly larger amount of capital 4000
5000
6000
Number of companies financed
g y g pavailable in US vs. Europe in 2001-2008
European early stage funds 2001 – 2005 vintages expected to outperfom US 0
1000
2000
3000
4000
vintages expected to outperfom US counterparts
0
2000 2001 2002 2003 2004 2005 2006 2007
US Europe
16
Ex it multiples
8
10
12
14
0
2
4
6
2004 2005 2006 2007 Q1 2008
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Source: VentureSource / LGT Capital Partners
US EU
A Case for Venture in EuropeA Case for Venture in Europe
Status Quo - VC in Europe vs. US
European VC funded businesses more capital efficient both in early and late
60
70
80
90
Average cap invested prior to $100m+ exits in $m
stage
Exits in the same order of magnitude need only half the amount of VC funding 10
20
30
40
50
60
y gin Europe
Higher historical European capital efficiency translates into higher return
0
10
2004 2005 2006 2007 2008Q1
Europe USA China Israel
Multiple of cap vs. invested ($100m+ exits) in $m efficiency translates into higher return multiples on similar sized exits
10
12
14
16
18
0
2
4
6
8
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Source: VentureSource / EVCA
0
2004 2005 2006 2007 2008Q1
Europe USA USA (Including Google) China Israel
A Case for Venture in EuropeA Case for Venture in Europe
Status Quo - VC in Europe vs. US
$35+ billion of value created in 4.5 years by European VC-backed companies
| April 2009Page 5Source: EVCA
A Case for Venture in EuropeA Case for Venture in Europe
Future Perspectives of the European VC Market
Commercialize the potential of dominant technology innovations in a number of high growth industries
UK: biopharmaceuticals, semi-conductors
Germany: medical devices and equipment, alternative / clean energy, semi conductorssemi-conductors
Scandinavia: wireless / telecom technologies, open source software
High quality of deal reservoir due to innovative potentialg q y p
7 European countries in Top 10 re. R&D as of % of GDP
6 European countries in Top 10 re. Researchers
7 European countries in Top 10 re. Triadic Patent Families
A number of European funds already make it to US top quarter performance
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performance
A Case for Venture in EuropeA Case for Venture in Europe
Future Perspectives of the European VC Market
Highly developed Professional Standards generating transparancy as a key factor for success and growth of the European PE/VC market
Industry to achieve two major long-term goals
to build a stable, long-term relationship with institutional investors and regulatorsregulators
to increase overall transparancy and trust into the asset class
Ensure integration of EVCA public policy recommandations into the EU g p p yregulations for the financial sector
Maintain an open dialogue with the most relevant EU and worldwide institutions
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Triangle in the European VC LandscapeTriangle in the European VC Landscape
Triangle - An Introduction
Later rounds
2nd round
Post-Revenue
1st round Public/Regional 1st round
Pre-RevenueResearchSpin-Offs
gFunds
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Invest local/grow local
Invest local/grow global
Invest global/grow global
Triangle in the European VC LandscapeTriangle in the European VC Landscape
Triangle - An Introduction
Founded in 1997
Cohesive and experienced investment team of 8 plus leading edge Board of Advisors (technology and industry)
Disciplined investment approach: disruptive software and hardware applications for IT, medical devices or clean tech industries
€ 80 million under management
€ 100+ million committed to portfolio companies incl co investors€ 100+ million committed to portfolio companies incl. co-investors
Four funds in two fund generations with superior return to investors
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Triangle in the European VC LandscapeTriangle in the European VC Landscape
Triangle – An IntroductionIndustry / Consumer Markets m
e
Applied Research
Industry / Consumer Markets
Financial Services
Pharmaceutical
MedTech Co
mp
lexi
ty
Gro
wth
x V
olu
m
pp
r S
cien
ces
Components
Infrastructure
Co
mp
lexi
ty
CognitiveSystems Quantum
Applications
Physics of Social
Media / Entertainment
Telecommunication
Internet Logistics
Automation
Tooling
Macro Economics Driven:Market push - open new markets to serve upcoming demands
tics
/ C
om
pu
te ComponentsModeling / Simulation
Micro- / Nano-Systems
Physics of Social Economic Systems
SensingIT
o a o
“Green Technologies”
Planning
oo g
Laser
Micro Economics Driven:Market pull - to solve immediate application problems
Mat
hem
at Distributed Systems
Photonics
Automotive
Logistics
Control
Information Flow
application problems
Basic Research
Physics / Engineering Sciences
ComplexityLogistics
…
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Triangle in the European VC LandscapeTriangle in the European VC Landscape
Triangle – An IntroductionUli W. Fricke (*68)Managing General PartnerICT18 years relevant experience
Associate producer at the leading BTX (German MBA from University of Paderborn major in risk
Wiebke Passmann(*81)Investment Manager – PartnerICT4 years relevant experience
Associate producer at the leading BTX (German Internet predecessor) service providerMBA from University of AS Worms at the age of 22CEO at a global educational tour operatorCEO at a global niche market insurance companyFounding partner Triangle
MBA from University of Paderborn, major in risk managementSummer associate in venture capital firms aswell as in industrial corporations.
Dr. Bernd Geiger(*60)Managing General PartnerICT, Medical Devices22 years relevant experience
MS in Physics PhD in Natural Sciences
Georgi Maximov(*79)CFO – PartnerFinance, Risk Management Portfolio Companies7 years relevant experience
Project manager at Old Mutual GroupMS in Physics, PhD in Natural SciencesR&D work at University of Heidelberg, Karlsruhe, EMU, German Cancer Research Center (DKFZ)R&D management at university spin-off LeicaLasertechnik, M&S management at ZeissFounding partner Triangle
Project manager at Old Mutual GroupChief Analyst at SkandiaPortfolio manager at Feri Wealth ManagementMBA from Free University Berlin, major in corporate finance and investment theory
Dr. Xin Chen(*82)Investment ManagerICT5 years relevant experience
MS in Computer Science PhD in Economics
Analyst 1 – Robert Glootz
Analyst 2 – Irina Medova
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MS in Computer Science, PhD in EconomicsR&D work at University of Karlsruhe and University of Science and Technology, Hefei, China.
Page 11Analyst 3 – Tobias Nils Krämer
Triangle in the European VC LandscapeTriangle in the European VC Landscape
Triangle – An Introduction
Prof. A. Cramerdigital media
Prof. L. Wolfwireless telecommunicationJoerg Kreisel
space technologiesDr. K. Ebertshuberaccounting / law
Prof. H. Salzwedelelectronic systems design
P f M M R h
Prof. S. Seeger
Prof. M. M. Reschsoftware design / super computing
W. Shieblereconomics / american VC industry
W Rogers chip sensors
Prof. R. Studersemantic web
W. Rogers business development
Dr. G. Seikel
D. SeckelmannHR
law
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Prof. H.-J. Muellers/w engineering
Dr. F. Gaupermedical devices
Prof. J. Wolfrumlaser technologies
Dr. J. Redmerinformation technology
Triangle in the European VC LandscapeTriangle in the European VC Landscape
Triangle – An Introduction
Fund IV
First Gen
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Triangle in the European VC LandscapeTriangle in the European VC Landscape
Case Study – iOpener Media
iOpener provides and facilitates real-time data into a range of virtual applications e g race games driver training and visualization through its applications, e.g. race games, driver training, and visualization, through its patented technology; using i.e. satellite navigation technology. iOpenerprovides the real-time link between virtual worlds and the real world.
The innovative technological breakthrough enables gamers to join races The innovative technological breakthrough enables gamers to join races and compare themselves in real-time with the professionals (1-on-1), and compete directly against professionals (1-to-many) when an actual live event is on.
The products create entirely new user involvement by addressing three major market trends: (1) the consumers steady hunger for more exciting, interactive online in-game features, (2) the game publishers’ and hardware g , ( ) g pmanufacturers’ search for new revenue streams through unique online game content, and (3) a growing target group of people who prefer entertainment to be interactive, evolving outside the traditional gaming universe
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universe.
Triangle in the European VC LandscapeTriangle in the European VC Landscape
Case Study – iOpener Media
presentation iOpener at ESA investment forum
i iO T i lpresentation iOpener at Triangle
joined meeting with potential customers
signing termsheet
discussion business model
Demonstration w/ Audi
2 LoI signed with tracks
Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
signing termsheetInvestment Agreement Launch realtime
feature
Market DD
Tech DD
Board membershipTriangle
Monitoring of risks and opportunities
R&D h dIPR DD IPR DD
Legal DD
Discussion of business model,
R&D hardware
R&D gameportal
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target customers
Triangle Venture Capital Group Management GmbH
Marktstrasse 65 D-68789 St. Leon-Rot Germany
Tel: +49 700 874 26 453 / +49 6251 800830Fax: +49 700 874 26 329 / +49 6251 800839 www.triangle-venture.com
Uli W. [email protected]
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