Post on 06-May-2015
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