VC Investing

Report
SEVENTURE VC CLUB
16.07.2014
VC INVESTING:
Know about all the deals
VC INVESTING:
Know about all the deals
Pick the best ones
EASY?
SUCCEFULLY VC INVESTMENT:
Know about all the deals
Pick the best ones
Make them grow
SUCCEFULLY VC INVESTMENT:
Know about all the deals
Pick the best one
Make them grow
Sell them high!
EASY?
SUCCEFULLY VC INVESTMENT:
Know about all the deals
Pick the best ones
Make them grow
Sell them high!
Return your fund 2-3 times
EASY?
BIG NEW FINANCING
Date
Company
Investor
Funding round
Description
10.07.2014
Mediakraft
€16.5M / Series B
Online TV network
24.06.2014
Kreditech
€30M / Series B
Customer credit scoring
18.06.2014
HelloFresh
€37M / Series D
Subscription based food delivery
13.01.2014
Delivery Hero
€65M / Series E
Online food ordering platform
25.01.2014
Soundcloud
€44M / Series D
Online audio distribution platform
04.02.2014
Foodpanda
€15M / Series C
Online food ordering platform
03.04.2014
Westwing
€72M
Online home design shopping club
09.05.2014
Windeln.de
€15M
Online shop for baby products
12.06.2014
Webtrekk
Shortcut Ventures
Capnamic Ventures
Iris Capital
Point Nine Capital
Blumberg Capital
Värde Partners
Insight Venture Partners
Phenomen Ventures
Insight Venture Partners
German Startups Group
Institutional Venture Partners
The Chernin Group
Kinnevik
Phenomen Ventures
Fidelity Investments
Odey Asset Management
Tengelmann Ventures
DB Private Equtiy
DN Capital
Acton Capital Partners
German Private Equity
Venture Capital Association
€25M
Web analytics software
WHAT IS THE WINNING STRATEGY ?
The Silicon Valley approach
1-2 winners (10-30x)
3-4 cash cows (2-4x)
4-5 baggers (0-0,5x)
WHAT DEALS ARE REQUIRED FOR THIS…
WHAT IS THE WINNING STRATEGY ?
The Silicon Valley approach
Multi billion $ market
Scalable business model
(revenue €100m plus)
Ground breaking technology/idea
Exit in 5-7 years
MAY WAYS MAY BE SUCCESSFUL
MARKET SIZE STATISTIC IN 2012
» 41 500 fund raising projects
» 189 investments in VC (€ 520 m)
» Around 50% of investments stem from foreign funds with
at least one office in Germany
» 71% of funded companies generates < € 10 m revenue
RECENT EXITS IN GERMANY 2013/2014
Date
Company
Acquiring
Company
Investors
Valuation
Description
01.05.2014
TeamViewer
Permira
Insight Venture Partners
€1,100M*
Collaboration software
3.12.2013
Trivago
Expedia
Tiburon, Insight Venture
€704
Hotel portal
10.04.2014
Lieferando
Takeaway.com
€103M
Online food ordering
18.12.2013
Klarna
Sofortüberweisung
KfW, DuMOnt Venture, Rheingau
Founders, Mountain Super Angel
n/a
€108M
Online payment solutions
16.09.2013
Tirendo
Delticom
€50M
Online tyre dealer
03.12.2013
Retailo
Blackhawk Network
€50M*
Gift card solutions
31.01.2014
Skobbler
Telenav
Project A Ventures, SevenVentures,
Jahr
Seventure Partners, Wellington
Partners, HTGF, Endeavour Vision
n/a
€23.8M
Mobile navigation app
07.01.2014
Plista
Group M
€30M*
Targeted digital advertising
08.01.2013
Xing
Kununu
HTGF, DuMont Venture, Credit
Agricole Private Equity
n/a
€9.4M
Employer reviews platform
14.03.2014
ZooRoyal
Rewe
undisclosed
Online pet shop
03.04.2014
Sociomantic
Dunnhumby (Tesco)
DuMont Venture, KfW, Grohs und
Heuser
-
undisclosed Real-Time Bidding advertising
system
GERMANY HAS BECOME A TOP DESTINATION FOR M&A
WHAT IS THE WINNING STRATEGY ?
Maybe other approaches work?
• Technology vs. Business Model
(Risk assessment)?
• Seed vs. mid vs. Late?
• Reference to PE Funds?
MAY WAYS MAY BE SUCCESSFUL
THIS IS OUR WINNING STRATEGY !
Stick to what you know
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
Take NO risk!
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
Take NO risk!
NO team risk
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
Take NO risk!
NO team risk
NO market risk (size and existence!)
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
Take NO risk!
NO team risk
NO market risk (size and existence!)
NO technology risk
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
Take NO risk!
NO team risk
NO market risk (size and existence!)
NO technology risk
Find the category leader (national or international)
THIS IS OUR WINNING STRATEGY !
Stick to what you know
Choose the right stage (risk/reward)
Take NO risk!
NO team risk
NO market risk (size and existence!)
NO technology risk
Find the category leader (national or international)
Make sure that ALL the KPIs tell you that his can scale!
INVESTING AT THE RIGHT STAGE
Seed
Early & Mid Stage
Growth Capital
€0-500k
€0,5-5m
€5-10m
Technology
Not proven
Proven
Proven
Market Risk
High
Low
Low
€1-3m
€4-10m
€10+
Risk of Negative
Returns
80%
30%
20%
Expected Exit Return
> 10x
3-10x
2-3x
8-15 years
4-8 years
3-4 years
Turn Over
Pre-Valuation
Holding Period
EARLY & MID STAGE PROVIDES FOR BEST RISK RETURN RATIO
SEVENTURE INVESTMENT FOCUS
Looking for Category Leaders:
First mover with
proven business model
> 1m in Revenue
Profitable growth
Strong focus on underlying key performance indicators:
A high customer
recurrence
High
scalability
Sizable market and
barrier to Entry
LEADING INTERNET AND SAAS BUSINESS MODEL EXPERTISE
Our investments
SaaS
Internet b to b
Innovative
Services
SHOWCASE:
Tradoria…
» is a B2B shop solution for small and mid size retailers
» added more than 3000 retailers to platform and tripled in revenue during investment holding period
» was introduced to us by Du Mont
Seventure…
» invested in December 2009
» introduced Tradoria to Rakuten
» managed the entire M&A process
» sold to Rakuten in June 2011 (after 18 months)
A RETURN OF 4X WITH AN IRR OF 140% WAS REALIZED
THANK YOU
Contact
Tel:
Fax:
Mobil:
Mail:
Internet:
+49 89 87 80 68 6-14
+49 89 87 80 68 6 99
+49 172 81 24 673
[email protected]
www.seventure.de
Seventure Partners
Maximilianstraβe 36
80539 München
Germany
Munich Pacific Development GmbH
Amtsgericht München, Germany
Geschäftsführer: Dr. Wolfgang Krause,
VAT ID: DE213507781, HR 136141

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