Slide 1

Finding the right Early Stage opportunities

Nordic Seed Capital Summit 2012

Alex van Someren – Amadeus Capital

Amadeus Capital Partners Ltd is authorised and regulated by the Financial Services Authority

Slide 2

Amadeus Overview

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Introduction to Amadeus

• A leading European technology investor

– Invested in >80 companies, over 14 years, from seven funds with

commitments of £500m

• Longstanding sector focus in

– Mobile/Communications

– Software and Services

– CleanTech

– MedTech/Healthcare IT

• Backs high-growth companies to become leaders in large markets

• Builds successful global companies from start-up

• Has generated 5x plus returns many times

Our ambition is to be the leading European technology investor

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We invest across Europe…

Portfolio composition by country

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Hardware & software for managing broadband networks

(Acquired by Seven) Software platform for mobile messaging

Optical data transport systems for metropolitan networks

Processors for high speed network appliances

Ultra-low power video storage appliances

Remote eye-tracking systems

Software as a service behavioural marketing

Automated camera surveillance service

Web content management software

Content Delivery Platform for mobile operators

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DK

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We are present in the Nordic region for >10 years

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US Exchanges Rest of World Exchanges

Strong track record of achieving liquidity at IPO

LSE (2004)

LSE (2001)

LSE (2006) NASDAQ (2000)

NASDAQ (2004); merged with Illumina NASDAQ (2006)

NASDAQ OMX (2011)

AIM (2005)

AIM (2000)

LSE (2000)

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US Acquirers Rest of World Acquirers

Strong record of trade exits through M&A

Broadcom (2001)

entropic Microsoft (1999)

Kopin (2011)

NVIDIA (2011)

Oracle (2010)

MACH (2005)

IK Investment Partners (2010)

Samsung (2010)

Portrait Software (2005)

Marvell (2011)

Lyceum Capital (2011)

Yammer (2012)

Slide 8

Finding the right early stage opportunities

Slide 9

The Moments to Invest…..

Expansion Seed

Early Rev

..but sometimes timing of take-off is difficult to predict!

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What makes a great Seed investment?

• The three most important things are:

– Great Team – Great Team – Great Team

• Very large market opportunity

• Disruptive technology innovation

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What makes a Great Team?

• Serial entrepreneurs – Experience counts for a lot – Mistakes, disasters, scars are all helpful – Potential for re-recruiting colleagues – Established personal networks

• Keen younger people with poor sense or risk!

– You have to get experienced somehow

Slide 12

We increasingly back serial entrepreneurs…

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What makes a Great Team?

• Serial entrepreneurs • Diverse skills mix

– Aim is to cover major functional requirements • I.e. CEO, CTO, VP Sales, VP Marketing, CFO • But, could also be e.g. PhD + MBA

• ABCDE qualities: – Aggression – Brilliance – Commitment – Determination – Ethics

• Luck!

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Market trends

• Very low capital intensity required to build businesses – Possible for small, lean teams to succeed fast

• Global access from web/cloud-based platforms – No national barriers; multi-currency payments

• Mobile access to online applications – Always-on customer engagement

• Social networks are driving customer adoption – Viral effects can drive up user numbers fast

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Growth & Internationalization

• European markets alone are generally not large enough – We want to build $1 Billion businesses! – Accepting this and planning for it is strongly advised

• Selling into North America & Asia is usually required – Much larger customer base, often with greater spending power – Different culture requires local engagement

• Sending inexperienced local team there is usually a #FAIL • Examples mentioned earlier e.g. Russia, China

• Bridging from smaller countries into larger ones is effective – We see this model a lot in Scandinavia – We see this model a lot in Israel

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What value can a Seed VC add?

• Business model innovation – Macro viewpoint helps to evolve new approaches

• Recruitment of team – Plentiful supply of CVs – Referencing for new hires – No charge!

• Customer & Partner introductions – Usually have good market knowledge – Regular contact with potential product users

• Corporate Development – Good existing networks with strategic corporates

• Exits – Understanding the M&A, IPO environment

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Investment focus for Amadeus Seed/Early Stage

• Low-power computing/Internet of Things – explosion of endpoints enables disruptive business opportunities – impacts both macro (e.g. datacentre) and micro (e.g. mobile) – enables the application of IT to new sectors such as CleanTech

• Software (including Cyber-Security) – Cloud/Mobile generates hyper-growth opportunities – low-capital-intensity enables rapid time to market – excellent liquidity potential due to high-intensity M&A

• MedTech and Healthcare IT – compelling need to shift from Treatment to Prevention & Diagnosis – Engineering, Software & Social Networking applied to Life Sciences – strong European capability and favourable regulatory environment

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Nordic Seed Capital Summit

Thank you!

Email: AvanSomeren@AmadeusCapital.com

Twitter: @alexvans

Amadeus Capital Partners Ltd is authorised and regulated by the Financial Services Authority