D5 Capital © 2016

Newsletter | Summer 2018

D5 Capital (UK) Limited53 Chandos PlaceLondon WC2N 4HSwww.d5capital.com

D5 Capital © 2016

ConnecteamCommunications platform for desk-less employeesConnecteam is the brainchild of Amir Nehemia, based in Tel Aviv. Amir saw that there was a need for a ‘mobile-first’ training and communications platform for employees in industries that require them to be away from desks: restaurants, hotels, construction, transport, logistics, manufacturing, retail and other non-office environments. Connecteam is an elegantly developed platform that allows employers to create their single platform for communicating with employees via smartphones. Connecteam is a white label product, so can be customised by each client organisation.

It provides real time feedback on each employee’s performance and productivity, speeds up training and on-boarding and allows training initiatives to be pushed to all employees in any location.

The product has been launched in Israel, Canada and USA and is gaining traction. Customers include Strauss, Sodastream and Canada Restoration Services. The company is now managing over 30,000 employees on the platform and is growing at 15% month-on-month, primarily in the USA.

D5 Capital helped secure the Seed round of $0.6m at a pre-money conversion price of $3.5m. ■

Original Investment: February 2016Seed Round: $0.6m Pre-money Valuation: $3.5m

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Easy Payment GatewayHeadquarters: Gibraltar

Easy Payment Gateway (EPG) is a fast-growing payment processing platform, headquartered in Gibraltar. The platform provides easy-to-operate payment solutions for hundreds of payment systems across the world and is attracting online retailers, gaming operators and many other multi-currency organisations.

The central driver of EPG is its ability to convert declined transactions into successful, completed transactions –this increases merchant sales and improves customer satisfaction. As many as 33% of online payments can be declined by the user’s bank, so this capability is a huge competitive advantage for EPG customers.

EPG offers 200 gateway solutions (including e-Wallets and multi-acquiring capabilities) and Worldwide Acquirers. Outside the UK and USA the number of people using credit cards is relatively low, so EPG allows alternative payment solutions for customers, which can boost successful transactions by a further 35%.

D5 Capital investors participated in the £600,000 seed round in November 2014, since when the company has grown its sales pipeline at an average 40% per quarter.

Santander who are now offering EPG’s suite of solutions to their own clients.

The Company processed over $1billion in 2017 and is now processing transactions worth $300m per month for clients in the gaming, FX and ecommerce sectors.

In addition, EPG is signing partnership agreements with major players including Wirecard, PayPal and Santander.■

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One Pulse was the created to provide instant consumer engagement. The platform allows brands/agencies/NGOs to test any premise with its target market and receive market research feedback within minutes.

The platform is open to any organisation that wishes to set up an account and start market testing, often using very small budgets. Consumers are rewarded for completing questionnaires by micropayments credited directly to their PayPal accounts.

A ‘pulse’ is a three-question survey which is notified to the panel on their mobile devices. On completion, the respondent may be asked to offer a deeper layer of insight, enabling more in-depth findings.

We invested at a pre-money valuation of £1.8m alongside a consortium of leading players in the marketing services industry including LBi Digitas, Angel Lab, M&C Saatchi and BBH. D5 Capital also helped deliver top-up rounds from strategic investors in the marketing services industry in Q4 2016 and Q2 2017, delivering a total of £1.5m of additional investment.

In July 2016, One Pulse was named as one of the ‘Publicis 90’, a group of top start ups that have been awarded investment and support from the global marketing group. ■

One Pulse Instant market feedback

D5 Capital © 2016

PicfairImages library for the people by the people

A new standard for imagesThe image business is upside down. A $6 billion professional industry controlled by agencies and middlemen, who fix the prices and take, on average, 74% of the fees. Yes, you've read that right: from legacy giants to microstock sites, the vast majority of royalties go to anyone but the photographer.Benji Lanyado, a former journalist, decided to disrupt the model and create an images library that would cater for the ‘Instagram generation’, allowing talented amateurs to mix with professionals. The business also aimed at crowd sourcing sales via API ‘shops’ on photographers’ sites. There has never been a place where photographers can retain control over the prices of their images, and get what they ask for. There has never been a pure, open marketplace for images, where sellers – both amateur and professional - sell directly to buyers.

Picfair believes in rewarding creativity, rather than exploiting it. And it's working.

Since launch , thousands of photographers from 109 (and counting) countries across the world have already added over 2.5m of images to Picfair'slibrary. Picfair images have already been used across the world, by hundreds of global brands and international publications.

D5 Capital assisted Picfair in raising a seed round in July 2016. ■

D5 Capital © 2016

PlaySight Interactive Headquarters: Tel Aviv, Israel P

PlaySight Interactive Limited has created the leading software platform for mass market ball sports, connecting players to one central video and data network.PlaySight created the concept of the ‘SmartCourt’ – a sports facility connected to the internet, capturing all data a video from a sports session or match. PlaySight’s brilliant technology can tell players how hard they hit a shot, where it landed and if it was in or out. And allow immediate replay on smartphone, tablet or court-side kiosk..

PlaySight is now expanding into basketball, football, rugby and multi-sports (to cover all sports played in a gym such as volleyball, badminton and martial arts). The first basketball installation in the USA is at the Golden State Warriors in San Francisco, the leading NBA team. PlaySight Smart Courts are currently being rolled out in Austria, Australia, China, Eastern Europe, France, Germany, Italy, Israel, Japan, New Zealand, Scandinavia, UK and USA.The demand for the indoor SmartCourtis proving to be strong at clubs, colleges/universities and private homes.

D5 Capital managed the Series 'A' Round of $1.25m, the $600,000 Convertible Bridge Loan in September 2013, a $2.67m Series B round in March 2014 and a $6m Bridge Loan in March 2015 In the Series B round, an exciting range of investors joined the register including World No.1 Novak Djokovic, tennis legends Billie-Jean King, Chrissie Evert and Pete Sampras and Wall Street titan, Bill Ackman.The Company concluded regarding a $20m Series C investment round from investors including Softbank and Greg Norman’s Great White Shark Opportunity Fund. ■

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Quill is a content marketing platform, supporting the content creation and translation efforts of companies via thousands of freelance writers. Quill was named as one of the top 50 most disruptive businesses in the EverlineFuture 50 List.

Quill provides businesses, including Shop Direct Group, Swiftcover/AXA, WPP and Aegis, with high quality, web-optimised content, on any topic and in any language, helping them increase both revenues and reputation.

Quill has also developed a technology platform, which it uses to manage the workflow and quality assurance of a global network of writers, editors and video producers, across 30+ languages. Quill offers a more efficient, hassle-free and cost-effective way of producing content than is possible in-house or via traditional content production agencies, whilst guaranteeing that all of its content is of a consistently high “on brand” standard. Quill has also launched the platform in Germany and China.

Prior to launching Quill, Ed Bussey was

COO at mobile phone utility and social networking site ZYB, which was acquired by Vodafone in 2008 for €31.5m. Ed joined his first start-up team at online fashion retailer figleaves.com in 2000, which was sold to N Brown, the home shopping group, in October 2010 for £11.5m. D5 Capital investors participated in the Series A round. In March 2014, Quill secured £5m of fresh capital from Smedvig Capital to fund the accelerated roll-out of the Quill Platform around the world. ■

QuillHeadquarters: London

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Rentify is a Software as a Service (‘SaaS’) platform for landlords to market, manage and make money from their properties. Started by ex-WCRS marketer George Spencer, Rentify has launched the marketing component of the service (ww.rentify.com) and is refining the property management component of its service.

There are approximately 1.5m landlords in the UK renting over 3.9m properties with an annual rent roll of £37.5 billion. Rentifyserves this market with a seamless property management service plus a rental guarantee product which delivers a ‘no risk’ income to landlords.

Positioned as ‘a Landlord’s Best Friend’, Rentify has applied technology to the world of residential property management in order to strip out excess costs and offer value-added services such as guaranteed 3-year rental agreements.

As a result, Rentify is offering an efficient property management service for substantially less than the estate agent community.

In addition, Rentify is prioritising data capture to ensure that it is well placed to offer registered landlords timely and well-

priced ‘core’ services, such as insurance and mortgage recommendations.

We supported the Seed Round in December 2012, since when BaldertonCapital have completed a Series 'A' Round of £2m. Rentify raised a further £1.4m on Crowdcube in Q1 2016. ■

RentifyHeadquarters: London

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Showbox has built a proprietary SaaS platform that enables users to create premium video content for monetisation on the internet. Showbox is aiming to become the “PowerPoint of video” - using a free-mium business model – empowering amateurs, corporations, semi-professionals and professionals to apply premium TV production values to their video content at minimal cost. The Showbox platform was formally launched in Q1 2016. With SHOWBOX™ the layman is able to create a high quality TV programme by simply following the step by step creation wizard. With each step SHOWBOX™ provides a strong set of tools (virtual studio,

teleprompter, 3D effects etc.) and director instructions (lightening advice, speech pacer, etc.). The company strategy is to develop strong relationships with major corporation, publishers and multi-channel networks (MCN’s) before launching a mass market freemium product. Showbox aims to provide these tools to the millions of enterprise content generators. In July 2016 Showbox was named as one of the Publicis 90 – the top media technology companies awarded funds and support by Publicis, the marketing services giant. Not only did Publicis invest in the company, but it

opened up the Publicis network to the Company.In Q2 2017, Showbox joined forces with the United nations to make the platform available to all film makers wanting to highlight human rights around the world.D5 Capital Investors invested in the

$1.4m Series ‘A’ funding round (Convertible Loan Note) in April 2013. ■

ShowboxHeadquarters: Tel Aviv

D5 Capital © 2016

Spot.IM is a ‘distributed social network’ which enables people to meet new people within contextually relevant ‘spots’. The brainchild of Nadav Shoval and Ishay Green, Spot.IM aims to empower publishers to create their own on site communities, fighting back against the loss of visitors to the major social networks. It is already the fastest growing community platform in the world, with 2 billion monthly page visits.

Since launch, Spot.IM has been installed on thousands of websites across the world, including 30% of the top tier publishers’ sites in the US including AOL, CBS, Fox, Hearst, Hollywood.com, Huffington Post, Meredith, News Corp, New York Post, Time Inc. and Turner. Statistics show that Spot.IM drives

substantial increases in engagement, dwell times and page impressions for host sites.

Monetisation routes include sponsored spots for organisations, venues and brands; affiliate commissions; and advertising.

D5 Capital investors participated alongside Lord David Alliance (N Brown/Coats Viyella) and Index Ventures.

Spot.IM is ideally suited to the millions of websites that struggle to hold on to their users after they have consumed content on the site in question. Instead of losing the ‘conversation’ to Facebook or Twitter, websites can plug-in Spot.IM and (within minutes) experience active engagement of

their users in real time conversation.

Since D5 Capital Investors provided capital, Spot has received support from a range of institutional investors including the founders of Wix (now listed on NASDAQ), Centillion and Mill House Capital, the venture investment vehicle of billionaire Roman Abramovich.

In 2017, the company raised $20m from Insight Venture Partners. D5 Capital completed a partial exit, delivering a 6x return to investors. ■

Spot.IMHeadquarters: Tel Aviv

D5 Capital © 2016

TailifyThe home of influencers

Tailify was created by Fredrik Segerby and Didrik Svendsson and originally head quartered in Stockholm to focus on the fast growing Influencer Marketing space, currently growing at 35% year-on-year. Tailify has been described as the ”Most likely to revolutionise the media industry” by Starcom, the world’s largest media agency. Tailify is a complete marketplace that connects social media influencers with brands of all sizes. The Company initially focused on Instagram and is planning moves into Snapchat and Pinterest.

Rather than being yet another talent agency, Tailify is an end-to-end solution for buying and selling influencer ad space on social media; it’s a complete marketplace for Influencer Marketing.

Tailify brings Influencer data to a new level, providing advertisers first-of-its-kind targeting capabilities, unique data and analytics tools in order to increase ROI, while helping influencers to make more money on campaigns. It’s the easiest, most reliable and scalable way to do influencer Marketing.

In July 2016, D5 Capital structured and planned the company’s move from Stockholm to London, securing £0.3m seed finance from angels and strategic investors at a pre-money valuation of £1.4m. The company subsequently secured the backing of L’Oreal’s incubator with a cash and contracts deal.

The Company completed an additional seed round of £1m in 2017. ■

D5 Capital © 2016

THREADS is a leading proponent of chat-based ecommerce. Using mobile/online platforms, the company delivers access to international luxury brands, catering for women with high disposable income and a taste for high quality fashion. Started by experienced retailer Sophie Hill, THREADS quickly built up a loyal following of customers in the EMEA region, attracted by the concierge style service and the cutting edge fashion.THREADS does not take any stock risk but supplies to order from a variety of fashion brands and channels. Using a universal basket, the platform provides a very high quality user experience, with extensive editorial content to provide inspiration as well as shopping functionality. The mix is working well, driving a current annual sales growth of 100%, with an average basket size of £2,000. The company estimates that it will only need to acquire and retain 8,000 customers to generate £100m of annual sales. D5 Capital investors participated in the £500,000 late seed fund raise in July 2015. D5 Capital investors also participated in the follow-on round of £2m in 2016 and £10m in 2018. THREADS is now seeking to expand in Brazil, China, Middle East and Russia. ■

THREADS

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LADDER is a growth marketing agency that uses proprietary technology and data-driven strategy to improve clients’ return on their marketing investment. Led by Jon Brody and Mike Taylor, Ladder has operations in New York and London, servicing clients that want to gain an ‘unfair advantage’ from their marketing spend.

Using knowledge and data accumulated from thousands of marketing campaigns, Ladder uses combinations of several thousand marketing techniques and combinations of channels to deliver maximum ROI at any time.

The company is growing extremely fast, acting for early stage companies and major corporations in USA, Europe and APAC. ■

LADDER

D5 Capital © 2016

Nature Delivered (GRAZE.COM) Headquarters: Richmond, London

Nature Delivered is the brainchild of former LoveFILM technical director Graham Bosher, who set up the food-through-the-post site Graze.com in 2008. While grazing on dried fruit on holiday, Graham had imagined that an A4 envelope could be the perfect package for sending personalised boxes of ‘grazing snacks’ through the post to health conscious customers. He sought our help in the seed round in May 2008 and started to send his product to UK customers that registered at www.graze.com at £3 per box. He also developed a patented packaging concept for sending fresh fruit through the post. The company set up its picking and packing operation in Feltham near Heathrow and used a range of marketing channels to secure customers, including discount vouchers in local newspapers, SEO and Groupon offers. As the Lifetime Value (LTV) and Cost Per Acquisition (CPA) of each

customer became clear, Graze was able to step up the rate of expansion, targeting prosperous urban customers, with a female bias.

In 2009, Graze attracted an additional £2m of capital from existing investors and Octopus Ventures to fuel expansion of the plant at Heathrow and to set up an HQ in Richmond. A Series B round followed in 2010 raising additional capital to accelerate growth. By the end of 2012, sales were running at over £3m per month and Graze was planning overseas expansion. We elected to accept a cash exit from a US investor at an enterprise valuation of $135m, delivering a return of over 17 times capital invested at an IRR of 100%. ■

Total Capital Invested (2008-2011): £4.5 million Multiple Achieved: 17x (after EIS relief)Exit Valuation: £80 millionExit Date: December 2012IRR: 100%

D5 Capital © 2016

Wix is one of the most successful Internet start-ups to come out of Israel in recent years. Created by Avishai Abrahami, Nadav Abrahamiand Giora Kaplan in 2006, Wix is a SaaSplatform (Software as a Service) for any organisation or individual wanting to create a high quality Flash (or HTML5) website from scratch at minimal cost. Using a ‘free-mium’ business model whereby users can sign up for free and only pay for added value elements, Wixhas attracted over 55m users globally, with new customers signing up at around 30,000 per day. Wix has since attracted investment from major players including Bessemer Venture Partners, Benchmark Capital, DAG Ventures and Insight Venture Partners in Series B, C and D rounds, with total capital invested of $65m. The company passed the 10m users mark in 2011, 25m user mark in 2012 and 40m users in 2013. Wix now operates in nine languages and generated approximately $80m of revenues in 2013 .

The operating scale achieved by Wix is now enabling the sale of applications via its 3rd party app store. As TechCrunch noted: “Essentially, the store enables app developers to create and distribute web apps to Wix’s audience for free. The apps will require no download or technical knowledge to implement, meaning the marketplace won’t add any wrinkles or friction to the user experience. However, for users (and for Wix itself) opening this capacity to developers means that the site can offer a potentially huge new set of features, while maintaining drag-and-drop site design.” We anticipate further expansion from Wix in 2014 as it consolidates its position as the leading content marketing platform for SMEs globally. Wix is now listed on NASDAQ and has a market value in excess of $650m. ■

Total Capital Invested (2007-2012): $65 millionMultiple Achieved: 40xExit Valuation: $800 millionExit Date: November 2012IRR: 100%

Wix.comHeadquarters: Tel Aviv