The view from Silicon Valley - Enterprise Ireland · The view from Silicon Valley ... 146 spins $7bn in peak IPO Value and outs created . ... A watershed moment in Consumer Internet

Dublin | London | Silicon Valley| Beijing | Hong Kong 0

The view from Silicon Valley -Building companies of scale from Ireland

Brian Long

Atlantic Bridge

February 2014


Atlantic Bridge Introduction

Leading Technology investors with a global perspective

• 10 year fund track record investing with 3 funds, 20 year+ industry operational track record

• $336m AUM, ABVEN II Top performing Growth Equity/Expansion fund in Europe & US

• Growth Equity/Expansion Capital Fund with a Global Platform… offices and staff Beijing,

Hong Kong, Palo Alto, Dublin, London

• Backed by leading institutional investors

Team of 11 who have founded 8 global companies

• All with operational and entrepreneurial tech experience

• Have launched 50% of Irish IPOs on NASDAQ

$7bn in peak IPO Value and 146 spins

outs created


Atlantic Bridge Value Add Strategy

Local presence with Global outlook

Operational and Hands On approach to maximise opportunity

Applying the “Bridge” into the US and Asia …for fast scale up

Investing locally but expanding internationally

Over 40 co-investment partners in Asia, Europe and the US

Senior relationships at all Tier 1 Technology companies including

Dublin London Palo Alto Beijing Hong Kong


Atlantic Bridge’s Trans-Atlantic Model

Identify great Technology

companies in Europe

and connect them to the

largest

ecosystems/markets in

the World Silicon Valley

China


Silicon Valley - Bridging from Europe

Best Ecosystem

for building and

scaling

companies

Connect to leading customers and strategic partners Abven works with all Top Tech Companies & VCs

Access to Top VCs for Scale-Up US VCs invested $34Bn in 2013; majority in Silicon Valley

Abven attracted 3X overseas co-investors

World Class Talent Pools Management

Sales/Marketing/Bus Dev

Advisors/BOD

Angel/VC Investors

Support Eco System Startup friendly legal and Financial

Top University Research

Best Place for high exit valuations Silicon Valley is a shop window for M&A

450 M&A deals in 2013

Top Silicon Valley Companies have $125Bn in cash

Home to NSADAQ – 84 Tech IPOs in 2013


Focused & Disciplined Investment Strategy

Active, hands on & operational

leveraging ABVEN expertise and

network of Industry experts

Strong US/Asian/Euro Co-

Investment

Partners

We are Domain

Focused

Cloud, Mobile,

SaaS, Big Data,

Semi’s Core Tech

All areas of our

operational

expertise

We are sector focused

On key domains

–”Hot Sectors”

Focus on great mgmt teams

Defensible/Scalable

Product/Technology

TAM > $1Bn

Scalable Business Model

Low Capex

Exit Strategy

Round sizes typically

$10m +


Tier 1 International Co-Investors and relationships

Europe USA Asia

China & Korea

Funds

Corporate

Strategic

Investors

• We have co invested with

• 12 of the Top 17 Silicon Valley Funds

•9 of the Top 10 Corporate Venture Funds

7 7 Dublin | London | Silicon Valley| Beijing | Hong Kong

Corporate Venture Investment increasing

25% of all deals now involve a corporate Investor

we have relationships and co-invest of > $100m with the following:

Engaging early with corporate VCs starts relationship

with potential acquirers

These relationships also help companies build and scale key

customer accounts


Bridging European companies to Silicon Valley

Abven Approach

Hands on approach given

our operational expertise

Introductions to senior

executives at key potential

customers and acquirers

Advising on Strategic

Partnerships, Funding

rounds and negotiations with

key strategic customers

Use our Extensive

international network to build

out senior management

teams and non executive

directors

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Atlantic Bridge Investment Case Study

World Class technology team based in Dublin Attracted 2

institutional

investors and

12 Silicon

Valley Angel

Investors Refocused strategy on Computer Visioning Market

Atlantic Bridge led $16m round in 2012

Built strong US element to BoD

Attracted serial US entrepreneur Dan Dobberpuhl as Chairman/Investor

Now engaging with Tier 1 strategic Silicon Valley companies for

next generation of computer visioning

US based CEO, Sales, Marketing and Bus Dev


Silicon Valley Eco

System


Importance of Silicon Valley to Irish Companies

Silicon Valley the place to build and grow companies •Seeing more concentration in Silicon Valley of Entrepreneurs and VCs

•Not just in tech

25 VC backed private companies with $1Bn+ valuation •Over 560 with $100m+ valuations

IPO Pipeline Growing •84 IPOs in 2013

•40% growth YoY

•Top 18 IPOs generated $18Bn value: 37x return

4062 VC Companies funded in ‘13 •$34Bn in VC Investment

•40% in Silicon Valley

350 Valley exits since ‘12 •Largest M&A Market

•$126Bn cash on corporate balance sheets in 2013

•$14Bn VC liquidity in 2013

•4x more than anywhere else in the US


Services and Infrastructure Entrepreneurial Talent

Technology Companies

Silicon Valley Eco System Silicon Valley – The Ideal Location for Tech Start-up Success

$12Bn


Top 25 Acquirers in Software and Internet Services


Valuation in M&A – Average Multiples of Revenue



Technology

trends driving

investment


A watershed moment in Enterprise Computing


• High-growth marketplaces 2.0

• High-growth social mobile apps

• New Finance platforms

• New Content platforms

• And others – health, travel, cloud storage, etc

Companies that are unable to innovate their

own way into these new markets must acquire,

or they risk being marginalized, commoditized,

or being made obsolete

A watershed moment in Consumer Internet


Big Data market experiencing 61% growth rate

Hadoop attracted $270m in VC funding in 2013

Enormous volumes of data being produced

– 2800 Exa Bytes in 2012

2 main opportunities in Big Data:

1. Simplify, scale and cost reduce Big Data Infrastructure

2. Provide easy access to useful and actionable

information to management in real time


Smartphones – Big upside potential

(3/4x)

20

Source: KPCB - Morgan Stanley Research Estimates


Mobile devices maturing

Smartphone penetration saturating in developed economies

62% smartphone

penetration

in the US

53% smartphone

penetration

in the

Ireland

•Cameras

•Intelligent Sensors

•Battery lifetime

•Computational Photography

•Computer Vision

•Augmented Reality

Handset manufacturers

looking to differentiate

through advanced

features

Enables new functionality

and enhanced user

experience


Internet of Things going mainstream

Entire new eco system required for IoT Convergence of mobile, sensor, cloud, and Big Data


Hardware and software converging

Internet of Things and vertical integration

changing the Technology landscape

Opportunities in Hardware and Software

acquired $3.2Bn

Shows trend and potential

Knowledge and

application of both

becoming key

differentiator


Developing Ireland as a hub of innovation

World Class R&D being developed in Irish Companies Silicon Valley presence critical to scale commercially

Eco system provides scale up capital, customers, support systems and M&A/IPO opportunities

Opportunities in sectors such as Big Data, SaaS and Mobile give

path to rapid growth Atlantic Bridge invests at the scale up stage but engages at an earlier stage

Identify, track and build relationships with early stage start-up to develop pipeline

Committed to building European and Irish companies of scale

Lack of risk capital with global expertise is limiting this potential Local entrepreneurialism with global outlook partnered with International risk capital is required

IVCA estimate €1.5Bn in growth capital required in Ireland in coming years

Dearth of experience in international sales and marketing expertise is hampering growth of leading

technology

Our Silicon Valley presence gives entrepreneurs access to capital, customers, talent and acquirers


+353 1 6044456

For Further Information Contact

ATLANTIC BRIDGE

[email protected]

www.abven.com

Documents

The view from Silicon Valley - Enterprise Ireland · The view from Silicon Valley ... 146 spins $7bn in peak IPO Value and outs created . ... A watershed moment in Consumer Internet