European Innovation & Entrepreneurship 2014-03-03 Venture Capital in Europe's Nordic Region Stanford Engineering Follow us at: @mshauge @creandum
Jan 29, 2015
European Innovation & Entrepreneurship 2014-03-03 Venture Capital in Europe's Nordic Region
Stanford Engineering
Follow us at: @mshauge
@creandum
Stockholm
Sweden
• 10 years as General Partner in Creandum
• Currently in charge of investments in
• Appear TV (www.appeartv.com)
• Vivino (www.vivino.com)
• Autobutler (www.autobutler.com)
• Fitbay (www.fitbay.com)
• In charge of multiple Creandum exits:
• Jays AB (IPO on First North)
• Iptronics (Acquired by Mellanox)
• Nanoradio (Acquired by Samsung)
• Former entrepreneur co-founder of multiple Nordic startups like
• Creuna A/S (www.creuna.com)
• Interaction Design AS (exited 1999 to Adcore AB)
• 15+ years CEO experience
���About Me: A true Scandinavian Entrepreneur; a Norwegian citizen living in Stockholm after 10 years in Denmark���
AGENDA > THE MARKET & NORDIC OPPORTUNITIES
> CREANDUM OVERVIEW AND OUR MODEL
> THE NORDIC ECOSYSTEM
Nordic tech firms represent significant portion of global BUSD exits
Source: NVCA, EVCA, Thompson, Dow Jones, Creandum, Balderton
• Nordic companies represented 7-8% of all global billion dollar technology exits
• In terms of M&A exit value, the Nordics represented ~18% vs the US during ‘06-’08 but only 5% of active VC firms and likely 1-2% of capital under mgmt
IPO: 6.7 BUSD M&A: 2.75 BUSD IPO: 1 BUSD M&A: 1 BUSD
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Exit Value (MUSD) BUSD Technology Exits 2005-2012
Nordic (4) Rest of Europe (7)
US (26) China (14) Others (3)
5
SendIt
42 tech exits >100 MEUR over a 10 year period
Sources: Creandum
10 MEUR 50 MEUR >100
MEUR
>250 MEUR
>500 MEUR
Exit Value
Revenue Median Exit Value: 242 MEUR Average Exit Value: 483 MEUR
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1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Creandum Exit Study: substantial and increasing Nordic tech exit market
• Average exit value per year (the last 12 years) is 2 BEUR
• Total exit market value: +70% between economic cycle in ’99-’04 and ’05-’10
• 17% of M&A transactions & IPOs represent 82% of total exit value
MEUR
Exit year
Sources: EVCA, Thompson, Dow Jones, Creandum
Avg. annual exit value 1999-2004 Avg. annual exit value 2005-2010
1.5 BEUR 2.6 BEUR
Total Nordic exit value 1999-2010 (MEUR)
7
Currently 10 unexited Nordic BUSD companies* Approximately one such company started per year
*Med Tech and Oil and Gas excluded
AGENDA > THE MARKET & NORDIC OPPORTUNITIES
> CREANDUM OVERVIEW AND OUR MODEL
> THE NORDIC ECOSYSTEM
Creandum in short
> Founded 2003
> Only Tech VC with head quarter in Stockholm
> Invest broadly in Nordic early stage Technology companies
> Focus on seed and A-rounds (50/50)
> Appr 0.1-2 MUSD in Seed, 2-5 MUSD in A-rounds and 5-10 MUSD in “late” A-rounds
> Approximately 40 investments to date > Most recent fund 135 MEUR
> One GP on the ground in the US/West Coast
Creandum´s investment strategy is made up by three key principles
> Diversified technology portfolio
> Focus on homerun potential
> First institutional
investor
• Better risk/return profile • Approximately 30 investments
(15, 10, 5; seed, early, late) • Diversified across consumer,
software and hardware industries (40%, 40%, 10-20%)
• +10x potential • VC returns driven by home runs • Focus on very large markets
rather than technology in itself • Entrepreneurs centric decisions
• Getting in first à superior returns
• Early investor (A round) à greater ability to influence
• Active investor à leverages the team experience from building fast growing companies
• Require new lead for A-round when doing seed
11
Some of our investments
A diverse high-caliber team with broad, deep and relevant experiences
Staffan Helgesson Johan Brenner Martin Hauge Fredrik Cassel Daniel
Blomquist Joel
Enquist Lasse Pilgaard Erik Olofsson Hjalmar
Winbladh
General Partner, 45
General Partner, 52
General Partner, 57
General Partner, 40 Principal, 40 Associate, 27 Associate, 26 Associate, 35 Venture
Partner, 45
10+ years of VC 10+ years of VC 10+ years of VC 10+ years of VC 6 years of VC 2 years of VCe New Hire New Hire 20+ years of
startup activities
• 10 years at McKinsey, IKEA and P&G
• BSc Lund University
• Kauffman Fellow • Ex Chairman Nordic Venture Network
• 5 years as Balderton GP
• Serial entrepreneur
• 12 years at ABB and Kinnevik
• MBA SSE Stockholm
• NYU Stern & Stanford GSB SEP
• Co-founder of 7 companies
• 10+ years of CEO experience
• MSc NTH-NTNU Trondheim
• Stanford GSB SEP
• 5 years of internet experience across Europe
• MSc Royal Institute of Technology
• Kauffman Fellow
• 7 years of software startup experience in Europe, US & ME
• MSc Linköping University & MBA SSE Stockholm
• Kauffman Fellow
• EIR at Nebula Ventures
• Advisor at U Ventures
• Technology Strategy Consultant
• MSc Chalmers University
• 3 years at McKinsey & Co Copenhagen
• Marketing manager within online gambling affiliation
• Masters in Economics
• 4 years at Bain & Co
• CEO and Co-founders of Fakturino (market place for funding) and Klipster (digital coupon booklet)
• M.S. at Havard University
• Founder Rebtel, Sendit, Epidemic Sound, Wrapp, Pedal etc.
• World-renowned startup advisor
• INSEAD
Founded 20+ Tech companies 5 IPOs, 10+ M&A Exits 4 realized €100M+ exits
AGENDA > THE MARKET & NORDIC OPPORTUNITIES
> CREANDUM OVERVIEW AND OUR MODEL
> THE NORDIC ECOSYSTEM
The dinosaurs
Todays Nordic BUSD Companies
www.ubiindex.com
The entrepreneurial ecosystem
Service providers
Community & Role Models
Limited Partners
VC’s & Angels
Incubators/ Accelerators
ENTREPRENEURS
Tax, Legal & Public
Framework
Enterprises
Universities
Government
Largest Nordic ecosystem issues
Limited Partners Tax, Legal
& Public Framework
Enterprises
• Lack of critical mass • Rules and regulations • Often short sighted • “Grass is greener on the other side” phenomena
• “Not Invented here” attitude • Do not understand the power of ecosystems • Unwilling to take risk • “Jante” lag • Focus short term on profitability vs growth • Do not buy from or partner small companies
• Unclarity on key tax issues • Difficult to issue stock options • Marginal tax • Regulated housing market • Immigration legislation • State pension fund legislation
THANK YOU
European Innovation & Entrepreneurship 2014-03-03 Stanford Engineering
Follow us at: @mshauge @creandum