Vækstfonden René Rechtman

May 2012

…to $100m exit

From greenfield

Spot it and ride

The world anno 2003/2004

What was the business going to be?

Sustainable product

Original idea

What do you want to be when

you grow up?

Invention Creativity Passion Domestic Playful Introverted

Ambition Professionalism Commercial Scale Packaged product Driven

The businessman and the inventor

To create and engage audiences globally

A clear vision emerged

GROWTH/VALUE

+

Goodbye to the small pond

Audiences

North America presents opportunity for user growth…

…but other regions present significant growth opportunities

• Asia has 922.3M internet users… • Europe has 476.2M internet users… • North America has 272.1M internet users… • Latin America has 215.9M internet users…

• …but only realizes a 23.8% penetration rate • …and realizes a 58.3% penetration rate • …and realizes a 78.3% penetration rate • …but only realizes a 37.0% penetration rate

Source: Internet World Stats (2011)

Millions of Users Penetration Rate

Accessibility….

? ?

?

? EU

APAC

US

GLOBAL

?

?

International considerations

Technology is the foundation

Twitter Ticker

All Devices

Optimisation Social Video

Facebook

Developer SDK

Tracks Everything White Label

Where to start? Automated management

Automated optimization

Automated data collection

Automated reporting

Automated publisher

Multi language

Multi geographies

Multi currency

Multi jurisdiction

Multi location

Documentation

Scalability

C++, php

Htlm5, flash, java

Agile

Everything is possible Winning is the only option Hard work Urgency 9AM – 7 PM Agile International Options Fighting Share success

Culture

Individual responsibility Individual targets Individual Accountability P/L driven and attachment Country targets Corporate targets Weeks status Monthly P/L evaluation Bi-annually individual evaluation

Structure

The DNA of the people you need

Wanted

Hungry

No limits

International

Value for money

Talent from the world

Limited talent

Not humble

Comfortable

Too expensive

Limited global outlook Denmark

London

Entrepreneurs

Hard workers

Dynamic

Solutions, please

Think big

Ready for it?

• 80 people/29 nationalities

• World class leadership attracts world class team – A players hire A players – B players hire C players

• Poor performers need to leave

FAST – Bad for culture – Bad for product – Bad for clients etc.

• No HR

A race against time

Global race for video (Silicon valley) Not only local competition shaping up Risk capital available in volume Entry barrier is low Technology is cheap Talent looking for “next big thing”

Speed and Momentum is key..!

Professionalism

I knew from day one that we needed an institutional investor

• Professionalism – Mickey mouse board meetings

• World class network

• Experience

• Access to more capital

• Attract talent

• “Green card”

Two ways…

Bootstrapping

• Stay in control

– Make a formula for growth/ scale

– Growth capital (3-5x)

– Pros

• Control your destiny

– Cons

• Not pushed to the limit

VC “Classic”

• Confident in unlimited scale

– Strong BP/team/beta

– Angel

– VC (10X)

– Pros

• Going all the way

– Cons

• The VC make the shots

Two ways…

Bootstrapping

• Stay in control

– Make a formula for growth/ scale

– Growth capital (3-5x)

– Pros

• Control your destiny

– Cons

• Not pushed to the limit

VC “Classic”

• Confident in unlimited scale

– Strong BP/team/beta

– Angel

– VC (10X)

– Pros

• Going all the way

– Cons

• The VC make the shots

$100m vs $390m VC added a 4X factor

REMEMBER…You start a relationship…. Make sure that the personalities match and you get the right experience

Crisis!

08 09 10

50% growth while the world fell apart • Stayed focused

– Scalability

• De-select short term opportunities – Reckett, Pre-roll, MPU video

• Trusted our instincts

• Invested in the business – Tech, people and international

Video technology

State of art video player tech

HTML 5 player in production

Network

+30,000 mid & long-tail publishers

+70% long tail views

Measurement & Optimization

136 metrics, full customization

A/B testing environment

GVN distribution platform

60m views delivered MoM,

C++, infinitely scalable

International operation

7 offices, 4 partners

85 countries served

The goviral we built

Sales

Trading with all 4 major networks

17 of top 20 global brands as clients

Back to hyper growth On track for an exit

09 10 11

Deciding the future..? Video

Considerations

• US expansion

• Asia expansion

• Product expansion

• Competition

• Market development

• Risk

Solutions

• More growth capital

• New VC partners

• Merger with US player

• Selling the business

• Business as usual

Growth business

Growth market

Strategic importance

Strong team

Good tech platform

In the right markets

Profitable

The wish list for Aol

The latest chapter

In January 2011 Aol acquired goviral for $100m in cash