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The world is evolving fast, its getting shorter and connected. Palo Alto is no more the birthplace of great startups and companies. They are mushrooming everywhere from Europe, Africa, Asia, South America and Australia. New digital game changers are emerging and leading the torch of change faster than ever before, addressing local challenges with globally implementable ideas. However the infrastructure and support is lacking and for that, unlike before one need not go to Palo Alto. EntrepreneurCountry is creating this world class support system right here, next door to you, so you can access key players and fast track the route to success without moving from your location. Don't go to Palo Alto.Go to EntrepreneurCountry!!
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© Proprietary & Confidential – Ariadne Capital
Visions of the Future
© Proprietary & Confidential – Ariadne Capital
How Ecosystem Economics™ will Define the Winners and Losers of the
Exponential Age
© Proprietary & Confidential – Ariadne Capital
Three Visions of the FutureThe Technology Platform Companies take over every industry
• As Apple has to Music & Telecoms
• As Google has to Advertising
• As Amazon has to Books
The Digital Davids become disruptive forces and create new established giants
• As Wonga has to personal loans
• As airbnb has to travel• As Uber has to taxis
David and Goliath Must Dance
• David brings the new understanding of how technology enables an ecosystem through data and business model
• Goliath brings customers, distribution, scale and reach
Scenario Evidence Winners
vs.
vs.
1
2
3
© Proprietary & Confidential – Ariadne Capital
© Proprietary & Confidential – Ariadne Capital
The Face of Every EntrepreneurThey just may not show it to you!
© Proprietary & Confidential – Ariadne Capital
Two Good Reasons
• They see the inevitable and advance the Future• They are willing to live abnormal lives
© Proprietary & Confidential – Ariadne Capital
Capital Follows IdeasAlways Has, Always Will
© Proprietary & Confidential – Ariadne Capital
The History
© Proprietary & Confidential – Ariadne Capital
Let's Continue With The Historical Perspective….
© Proprietary & Confidential – Ariadne Capital
Economic Growth since the end of the 18th Century has gone through 5 Distinct Stages,
associated with 5 successive Technological Revolutions
Five Successive Technological Revolutions, 1770’s to 2000’s
Technological Revolution
Popular Name for the Period
Core Country or Countries
Big-bang initiating the revolution
Year
FIRST The Industrial Revolution
Britain Arkwright’s mill opens in Cromford
1771
SECOND Age of Steam and Railways
Britain (spreading to Continent and USA)
Test of the Rocket steam engine for the Liverpool-Manchester railway
1829
THIRD Age of Steel, Electricity and Heavy Engineering
US and Germany forging ahead and overtaking Britain
The Carnegie Bessemer stell plant opens in Pittsburgh, Pennsylvania
1875
FOURTH Age of Oil, the Automobile and Mass Production
USA (with Germany at fist vying for world leadership), later spreading to Europe
First Model-T comes out of the Ford plant in Detroit, Michigan
1908
FIFTH Age of Information and Telecommunications
USA (spreading to Europe and Asia)
The Intel microprocessor is announced in Santa Clara, CA
1971© Proprietary & Confidential – Ariadne Capital
Lifecycle of a Technological Revolution
Gestationperiod
Big-bang
Paradigmconfiguration
Introduction of successive new products, industries and technology systems, plus
modernisation of existing ones
Constriction of potential
Time
Period one Period two Period three Period four
Around half a century
Deg
ree o
f te
ch
nolo
gy m
atu
rity
an
d m
ark
et
satu
rati
on
Early new products and industries. Explosive growth and fast innovations
Full constellation (new industries, technology systems and infrastructure)
Full expansion of innovation and market potential
Last new products and industries. Earlier ones approaching maturity and market saturation
© Proprietary & Confidential – Ariadne Capital
AGE OF IT AND TELECOMMUNICATIONS50 ISH YEAR CYCLE – 1971 TO 20...?
• BIG BANG – NOVEMBER 1971 IN SANTA CLARA, CALIFORNIA
• Bob Noyce and Gordon Moore launched Intel’s first microprocessor, the precursor
of the computer on a chip
• INSTALLATION – late 1970’s through to Noughties
• 1976 – Steve Jobs, Steve Wozniak found Apple Computer
• 1984 - Michael Dell founds PC’s Limited later named Dell Computer Corporation
• 1985 – Irwin Jacobs founds QualComm, pioneer in Wireless Communications
• 1990 – CERN / Tim Berners Lee
• 1994 – Yahoo founded
• 2003 – Skype – “free calls on web”
• 2004 - Facebook founded
• THE TURNING POINT
© Proprietary & Confidential – Ariadne Capital
The Revolution
© Proprietary & Confidential – Ariadne Capital
THE REVOLUTION STARTS AS A SMALL FACT
WITH BIG PROMISEAND MOVES TO A SIGNIFICANT
FORCE IN THE MARKET
© Proprietary & Confidential – Ariadne Capital
Technological Revolutions
• 1999 – David with
his slingshot wants to kill Goliath
© Proprietary & Confidential – Ariadne Capital
The Economy & Social Institutions Respond
• 1999 to 2013 – Broadband and Mobile Technologies continue to invade our lives
• 2014 -David and Goliath must dance
© Proprietary & Confidential – Ariadne Capital
The David & Goliath™ Model
© Proprietary & Confidential – Ariadne Capital
Strategic Value
Network Effects- Lock In
Vulnerability
The David/Goliath Grid Model
Financial Value
“Dav
id”
– D
igita
l Ena
bler
– th
e ‘D
igita
l Car
’
“Goliath” – Distribution – The Highway
Ecosystem Economics™ – shifting industry players
Consumer Data driving new services
Network Orientation to business
Market is bigger than just top players
When partnering with, When acquired,
Brings lean operating system
2)
1) Brings new digital revenues
Und
erst
ands
“th
e ne
w c
omm
on s
ense
”
1)
2)
3)
4)
Can become the Operating System to the Industry
Can reinforce or gain a position as Industry Architect
1)
2)
© Proprietary & Confidential – Ariadne
Capital© Proprietary & Confidential – Ariadne Capital
Network-orientation to business
© Proprietary & Confidential – Ariadne Capital
How do I acquire customers?
© Proprietary & Confidential – Ariadne Capital
Examples of Corporates engaging with Digital Enablers
• Large corporates which are partnering and/or acquiring digital technology firms include:
© Proprietary & Confidential – Ariadne Capital
If you didn't go to Palo Alto at the beginning, you will go to Palo Alto in the end …
© Proprietary & Confidential – Ariadne Capital
APPLICATIONS“Digital Enablers”
INFRASTRUCTURE High Regulation, Low Margin, Others
using your investments without contribution
PLATFORMS
How entrepreneurcountry enables the App Economy
Transition to platform centric companies withCloud, Social,
MobileBig Data solutions
Goliaths(Non-
technology mid-large
enterprise)
Take advantage of Revenue
(Profits)
MakeInvestments in Assets (Costs)
© Proprietary & Confidential – Ariadne Capital
Ecosystem Economics
™
© Proprietary & Confidential – Ariadne Capital
Innovation is about Economics Not Technology
• Otherwise we’d all be flying the Concorde
• But we’re packed into Jumbo Jets
© Proprietary & Confidential – Ariadne Capital
MONITISE IS THE THIRD FASTEST GROWING COMPANY IN THE UK
© Proprietary & Confidential – Ariadne Capital
MobileOperat
ors
has created The Mobile Money Ecosystem over the past 12 years
Bank Platforms
CoreBanking
Other e.g.• CRM• Database
Wealth
Enabler
Use of standard Interfaces
3rd Party Providers
• Sharedealing• Insurance
Payments• Domestic • International
Shopping&
Loyalty
National
Services
• Transit• Utility
CardsProcessor
MobileTopUp
© Proprietary & Confidential – Ariadne Capital
Price (GBp)MONI:LN
© Proprietary & Confidential – Ariadne Capital
© Proprietary & Confidential – Ariadne Capital
and Ecosystem Economics
• Google says that they organise the world’s information
• They actually organise the economics of the world’s information
• I, as a consumer of their search, am not given any economic upside in the search
transaction
• They have built a multi-billion pound business using – albeit anonymously – my personal
data – aggregated with that of others, but releasing none of the economic value to me
• Their biggest Achilles Heel is if someone in the search space were to cut a different set
of economics for the consumer
• Ariadne Capital found that entrepreneur – John Paleomylites – founder of BeatThatQuote,
and sold his business to Google on the 4th of March 2011 for a 122 EBITDA multiple for
these reasons
© Proprietary & Confidential – Ariadne Capital
Industries are being transformed by digital
business models
© Proprietary & Confidential – Ariadne Capital
In 2014, “Network Benefits” accrue to those Firms who understand their role in their ecosystem and organise the
economics for it
This in turn leads to exceptional returns for their shareholders
© Proprietary & Confidential – Ariadne Capital
© Proprietary & Confidential – Ariadne Capital
Don't Go To Palo Alto – Go To www.entrepreneurcountry.com
© Proprietary & Confidential – Ariadne Capital
entrepreneurcountryUK - Laboratory • East Africa
• Finland• German-speaking Europe• Ireland• Nigeria• Nordic Region• Poland• Southern Mediterranean• South Africa• Spain• United Kingdom –
NorthWest, Cardiff, London
Expanded to 15 regions on the 30th September:
© Proprietary & Confidential – Ariadne Capital
Be A Native
Not A Tourist
© Proprietary & Confidential – Ariadne Capital
Don't Go To Palo Alto – Go To entrepreneurcountrywww.entrepreneurcountry.comThank you ....
Julie Meyer, MBE Chairman and Chief Executive - Ariadne Capital; Managing Partner – Ariadne Fund; Founder – Entrepreneur Country;
Julie Meyer is an American who has lived in Europe (Paris and London) since September 1988, building global leading technology-enabled firms, shaping the financing of entrepreneurship and helping founders to build & define their industries. She founded Ariadne Capital in August 2000 to bring the "Entrepreneurs Backing Entrepreneurs" model from her native California to Europe as no one was doing this in Europe at the institutional level at that time.
Julie is known for tackling system-level problems and backing entrepreneurs who do so as well. In 1998, she saw the need for a people & investor network across Europe, and built First Tuesday for the market, selling in July 2000 for 20 X her seed investment. She is an advisor to and shareholder in Matternet, the much loved and inspiring drones/UAV firm, as well as a Board Director to Vestergaard, the for-profit humanitarian development firm. She advised Monitise, a global leader in mobile money, from 2004 through 2012. She has backed explosive growth companies like Espotting in 2002, Zopa in 2005, SpinVox in 2006, BeatThatQuote in 2009 (sold to Google), Taggstar & Quill in 2012.
Julie was part of the early team at Tom Teichman's NewMedia Investors in 1998, which became early stage investment firm Spark Ventures in October 1999. At NewMedia Investors, she co-managed deals in key technology companies including ArcCores, lastminute.com and WGSN.
She has been named one of INSEAD's Top 50 Alumni, Ernst & Young Entrepreneur of the Year, World Economic Forum Global Leader of Tomorrow, TIME Magazine Digital 50, one of WIRED's 100, one of London's 1000 Most Influential People (Evening Standard) and one of the Top 30 Most Influential Women in Europe. Julie is also one of the BBC's Online Dragons in the award-winning Dragon's Den Online, and is also currently setting up a "Dads and Daughters" foundation to support and extend her thesis that women's identities are shaped - for good or bad - by the messages they receive from their father's as children and young adults. She is on the Board of Directors of INSEAD, her business school. She graduated with a Bachelor of Arts degree in Humanities and English Literature from Valparaiso University, near Chicago, US in 1988, having spent her junior year in Cambridge, UK in 1986.
In 2011, she was asked to be on the Secretary of State's Entrepreneurs Panel. In 2012, Julie was honoured to receive an honorary MBE, for her ‘services to entrepreneurship’. Julie’s first book ‘Welcome to Entrepreneur Country’ was published in June 2012.
© Proprietary & Confidential – Ariadne Capital
[email protected]@juliemariemeyer
Appendix
© Proprietary & Confidential – Ariadne Capital
© Proprietary & Confidential – Ariadne Capital
Ariadne Capital Limited Business Units
Venture Capital
Investment
Bankingentrepreneurcountry
• Ariadne Capital Fund - A target £50m venture capital fund with £5.3m under management
• Early-stage investor in entrepreneur-led businesses, providing capital for seed and start-up (post-product, early revenue) rounds; ~£500k
• Invest in "digital enablers" bringing high-growth to the established companies with large distribution and reach in the new digital ecosystems which are emerging
• Ariadne Capital has provided investment banking expertise to leading corporates & fast-growing start-ups. We specialise in delivering valuations & transactional advice & support. We have concluded more than £350 million worth of transactions since 2000.
• We undertake:o Valuations o Private Placementso M&A advisory
‒ sell-side M&A‒ buy-side M&A‒ Private placements
• entrepreneurcountry is a ‘Global Discovery Platform’ operating in 15 regions globally.
• Corporate Partners pay to have access to and discover ‘digital enablers’ which can bring digital revenues to their firms through partnerships
• Welcome To Entrepreneur Country – What it is, How to Find It, Why You Should Go There was published in the UK in late 2012, & has been published in Russian and Greek with a Spanish edition currently underway.
• www.entrepreneurcountry.com & www.follow-the-entrepreneur.com
• Workshops – ‘A Day in Entrepreneur Country’ Show and Tell days where Ariadne facilitates the presentations of high-growth ‘digital enablers’ to corporates which enable them to see how to build digital revenues in their marketplace
• Marketscans – Leveraging our dealflow, network and portfolio, we produce a report of relevant innovation.
Ariadne Capital LimitedFounded in 2000 by Julie Meyer
& 62 leading entrepreneurs who
have backed her
Appendix : Slide 1
Seamless: raised €36m in capital in Nov 2013 Mobile Payment
SimplyZesty sold to UTV Media plc in March 2012 Social media agency
BeatThat Quote sold to Google in March 2011 Product Comparison
AIM listed in 2007; current market cap ~£160m (2011) Mobile banking
Stan James acquired 50% Racing Today, Nov 2010 Online Gambling
Acquired by EMI, August 2010 Viral Widget Distribution
70% acquired by Powwownow, July 2010 SaaS Collaboration Tools
Acquired by Nuance for $102m, Dec 2009 Voice-as-a-Service
Acquired by EMC for $153m, May 2006 Data Protection
Acquired by eBay for $2.6bn, Sep 2005...(Microsoft 2011 for $8.5bn ) VoIP
Acquired by Miva for $183m, June 2004 Pay-Per-Click
New.netAcquired by Vendare Media in 2004, then to Connexus and Epic Advertising Search Relevancy
Ariadne Exits 2000-2013Ariadne has spotted trends and entrepreneurs early
© Proprietary & Confidential – Ariadne Capital
Appendix : Slide 2
Ariadne Fund I Limited PartnersWorld-class networks provides strong market intelligenceStrong expertise in asset management, financial services and venture capital Institutional Investor
Leading entrepreneurs with successful track records and exits
Leading Corporate Executives and Business Builders
Mike Alfant AC Sabeer Bhatia AC
Andrew Black AC
Peter Cunningham AC
Wilf Eaton AC Andre Hoffman
Clive Jacobs Irwin Jacobs
Fusion Systems Founder ( FS Japan sold to IMRglobal – NASDAQ); Citibank; Bankers Trust; AT&T Bell Labs
Hotmail Founder (sold to Microsoft); Sabse/Jaxtr CEO; Nano City Chairman;
Betfair Founder & Non-Executive Director (IPO, 2010) product roles at Boxall, MoD
Founder & Chairman of Input; technical & management positions with ICL
Founder , OASiS Group plc (sold to Sybase Inc); NXD QA plc; Founder & Chairman Metaskil
NXD of Roche Pharmaceuticals; European M&A James Capel &Co; Nestle UK
Founder of Holiday Autos (sold to lastminute.com) for £43m; Chairman of Travel Weekly
Founder of Qualcomm; ex-CEO, Chairman, Founder Linkabit; ex-MIT professor
Clive Pinder John Redford AC
David Rowe AC Chris Taylor Martin Velasco AC
Edward Wray AC
Founder Healthy Worlds; ex-CEO Vielife (sold to CIGNA); ex-CEO Metrius, Board Expert-24
Broadcom Director Engineering; founder & VP Systems, Element 14; Acorn CTO
Easynet Founder & CEO; Sold Easynet to BSkyB (2006) and then reverse takeover Lloyds TSB Dev. Capital (2010)
Taylor Brothers Founder - built and sold businesses in music and entertainment;
Health & Biotech Entrepreneur, Founder & Chairman Anecova; Founder & Board Sumerian and Speedlingua
Betfair Founder & Non-Executive Chairman; Ex-CEO Betfair (IPO, 2010); JP Morgan; NXD – Funding Circle
Travis Baxter Nicholas Birtles
Nigel Burton AC
AI Noor Ramji Jon Rubinstein
Russ Shaw Wendy Williams
Nigel Wray
Content Director Bauer Radio. Former MD Bauer Radio; worked at RTL, EMAP, Operating Partner Advent Int’l SoundOut NXD
Ran Europe Ops for Comshare, GUPTA, Ingres (£100m revenue p.a. sold to Tipco), CEO Constellar (sold to DataMirror Corp)
CFO PetroSaudi Oil Services. Granby Oil & Gas (IPO 2005, sold 2008), Finance director; Ex-CFO Advanced Power; CFO WILink; UBS
EVP, Misys; Former CEO BT Innovate & Design; CIO Qwest Com. Swiss Bank Corp.; Head of ops for Credit Suisse First Boston
QualComm NXD Hewlett-Packard Senior VP & GM; Palm CEO; Apple Senior VP (iPod), Amazon NXD
Former Head of International Skype; Former Global Innovation Director Telefonica Chairman Marketing Group; CMO O2
North-east Chief Crown Prosecutor - Crown Prosecution Service (CPS)
Domino’s Pizza, early Investor & NXD; Saracens Owner & Chairman; Entrepreneur; Singer & Friedlander
Ian Cormack AC Eric Hagman Felda Hardymon
Toon den Heijer AC
Qatar Financial Centre Authority NXD; ex-AIG CEO Europe; 32 years Citibank – incl. UK CEO
Non-Executive Chairman Matthew Algie and Espresso Warehouse; NXD AON UK, UBS Wealth Mgt
GP Bessemer Venture Partners; NXD Endeca, Silicon Valley Bank, Vertica
Gilde Investment Management Managing Director IT Funds; ~€500m iAUM
© Proprietary & Confidential – Ariadne Capital
Appendix : Slide 3