An introduction

Tuesday, March 29, 2011

The result of a powerful partnership between expert venture capitalists

and world class brand builders.

Overview

!  One of Europe’s leading seed and early stage venture management groups

!  Formed as NewMedia Investors in 1996 and floated on AIM as NewMedia SPARK in 1999

!  Now an independent management company managing £200m of investments in Technology, Digital Media and Life Sciences

Key strengths

!  One of the most entrepreneurial and established early stage investors in Europe

!  Excellent deal flow from successful entrepreneurs, leading Universities and our position as one of the most active players in our sectors

!  Visibility on trends and opportunities arising from a position in over 80 companies in the sectors

!  Managing funds with LPs including The European Investment Fund, IF, Paul Capital, NIF SMBC Ventures and GE Equity and with shareholders including M&G (part of the Prudential), Barclays, Morgan Stanley

!  An experienced investment team who have managed portfolios through several market cycles, consistently delivered successful exits from a high risk investment category, and many of whom have worked together for over 10 years

Spark Ventures. Start up experts.

BBH. A truly creative business.

!  BBH is the world’s leading independent communications agency. 27 years spent building brand value for clients including:

!  6 offices around the world: London, New York, Sao Paulo, Singapore, Mumbai and Shanghai.

!  The ability to create big emotional platforms for brands that engender customer loyalty.

!  Unique access to consumer trends and behavior across a range of sectors.

!  Insight driven brand development and multimedia communication planning.

!  Proven prowess in digital marketing.

Overview

7

BBH. Value creation.

Audi UK doubled in size in 5 years, selling over 100,000 units by 2007. The brand is now bigger than Mercedes.

The business has grown 20% year-on-year for the past 5 years and also catapulted the brand from a $0 to $500m business in the us.

Worldwide retail sales increased $1 billion with the addition of the ‘Keep walking’ campaign.

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Zag. Inventing brands.

•  Zag is the brand ventures division of BBH.

•  Zag creates new revenue streams for BBH by inventing brands and bringing them to market with Joint Venture partners.

•  Zag also helps emerging businesses with their brand strategy and marketing plans in return for equity.

An example of invention. Stylish Security.

•  Zag spotted that crime was rising – and no brands were offering women personal safety solutions. The products in market were poor and rejected by women as unfashionable and stigmatising.

•  Zag invented ila security – the first stylish security brand. And designed a revolutionary alarm with a human scream for help.

•  Zag formed a JV with Locca Ltd, and listings were secured at M&S. The product sold out.

•  Today, ila has multiple retailers in the UK and footholds in North America and Europe. There are now 5 products in market and a pipeline full of NPD.

•  Ila was listed on the AIM index in 2010 and currently has a market cap of £10m.

The combined team.

Thomas Teichman Chairman

Spark Ventures

Kiko Duffy Investment Director

Spark Ventures

Neil Munn Chief Executive Officer

Zag, Global

Adam Arnold Managing Director

Zag, London

Founder and Chairman of NewMedia Investors, in 1996 – which merged into NewMedia SPARK in 2000.

Tom has over 30 years of venture capital and investment banking experience with firms including Bankers Trust, Credit Suisse and Nesbitt Burns. He has raised over £5bn for companies and has backed many successful early stage businesses, many from start up, all the way to flotation (London and NASDAQ). He was on the Boards of most of these for several years including ARC, lastminute.com, Argonaut, Dialog, System C Healthcare, Wellington Pub Company and Libertas Capital.

Kiko was part of SPARK’s founding team in 1999. Prior SPARK, Kiko spent two years with NewMedia Investors assisting clients such as Lastminute.com, and System C Healthcare in raising more than £30m.

Kiko specialises in the digital media sector and represents investments in Firebox, Workshare, Academia and Cluster 7. Kiko was responsible for SPARK's investment in Touch Clarity (sold to Omniture), and the sale of Secerno (to Trend Micro). Kiko holds an MBA in Finance (ESADE 2005) and a BA in Philosophy (Manchester University).

Neil founded Zag with BBH in 2006. He currently runs the brand invention operation globally, as well as sitting on the BBH Group Board.

Formerly, Neil spent 16 years at Unilever running some of its biggest brands. In his last role, Neil was Global Brand Director on Axe – Unilever’s fastest growing brand, with sales of over $1bn.

Throughout his career, Neil has worked in various parts of the world, helping the group establish its China operation and leading the development of its European beverages business out of Paris.

Adam runs Zag’s London office, taking responsibility for the brand invention, brand partnering and brand evaluation dovisions of business.

As well as managing the team, he leads the relationships with Zag’s media, retail and manufacturing partners.

Prior to Zag, he was a Business Director at BBH – working on the communications for brands including Audi, ITV, and Vodafone. He remains a Partner of BBH.

Adam holds a first class MA in Geography from Cambridge University.

Fund focus.

High growth potential, Disruptive business models, Addressing market gaps, Non-capital intensive business models, Inspiring entrepreneurs.

Brands

Content

Consumer Technology

Data

Summary.

•  A unique fund concept.

•  Combining investment expertise with creative firepower.

•  Access to the most exciting start up ideas.

•  Accelerating the commercial power of brands.

•  The right focus – on the digital media sector.

•  The right time – as we emerge from recession.

•  The advantage of being the first mover at early stage.

•  All the technical back up and management skills of Spark.