venture capital, vc, evca, germany, university, stanford, burton lee

1. European Venture Capital Market
European Entrepreneurship and
Innovation Thought Leaders
April 13, 2009
13
Uli W. Fricke
Managing General Partner
Triangle Venture Capital Group
Member of the EVCA Executive Committee
Copyright Triangle Venture Capital Group Management GmbH, April 2009

2. Agenda
A Case for Venture in Europe
Europe……………………………………………………….. 3
Status Quo – VC in Europe vs. US………………………………………… 3
Future Perspectives of the European VC Market….……………………. 6
Triangle in the European VC Landscape.………………………………………….. 8
Triangle – An introduction…….…...………………………….…………… 8
Case Study - iOpener Media ..……………………………………......…… 14
Page 2 | April 2009

3. A Case for Venture in Europe
Status Quo - VC in Europe vs. US
Number of companies financed
Europe: fewer deals / smaller amounts
6000
5000
4000 Significantly larger amount of capital
g y g p
3000 available in US vs. Europe in 2001-2008
2000
1000 European early stage funds 2001 – 2005
0 vintages expected to outperfom US
2000 2001 2002 2003 2004 2005 2006 2007 counterparts
US Europe
Ex it m ultiples
16
14
12
10
8
6
4
2
0
2004 2005 2006 2007 Q1 2008
US EU
Source: VentureSource / LGT Capital Partners
Page 3 | April 2009

4. A Case for Venture in Europe
Status Quo - VC in Europe vs. US
Average cap invested prior to $100m+ exits in $m
90
80 European VC funded businesses more
70
60
capital efficient both in early and late
50 stage
40
30
20
Exits in the same order of magnitude
10 need only half the amount of VC funding
y g
0 in Europe
2004 2005 2006 2007 2008Q1
Europe USA China Israel
Higher historical European capital
Multiple of cap vs. invested ($100m+ exits) in $m
18
efficiency translates into higher return
16 multiples on similar sized exits
14
12
10
8
6
4
2
0
2004 2005 2006 2007 2008Q1
Europe USA USA (Including Google) China Israel
Source: VentureSource / EVCA
Page 4 | April 2009

5. A Case for Venture in Europe
Status Quo - VC in Europe vs. US
$35+ billion of value created in 4.5 years by European VC-backed companies
Source: EVCA
Page 5 | April 2009

6. A Case for Venture in Europe
Future Perspectives of the European VC Market
Commercialize the potential of dominant technology innovations in a
number of high growth industries
UK: biopharmaceuticals, semi-conductors
Germany: medical devices and equipment, alternative / clean energy,
semi-conductors
semi conductors
Scandinavia: wireless / telecom technologies, open source software
High quality of deal reservoir due to innovative p
g q y potential
7 European countries in Top 10 re. R&D as of % of GDP
6 European countries in Top 10 re. Researchers
7 European countries in Top 10 re. Triadic Patent Families
A number of European funds already make it to US top quarter
performance
Page 6 | April 2009

7. A Case for Venture in Europe
Future Perspectives of the European VC Market
Highly developed Professional Standards generating transparancy as a key
factor for success and growth of the European PE/VC market
Industry to achieve two major long-term goals
to build a stable, long-term relationship with institutional investors and
regulators
to increase overall transparancy and trust into the asset class
Ensure integration of EVCA public p
g p policy recommandations into the EU
y
regulations for the financial sector
Maintain an open dialogue with the most relevant EU and worldwide
institutions
Page 7 | April 2009

8. Triangle in the European VC Landscape
Triangle - An Introduction
Later rounds
Post-Revenue
2nd round
1st round Public/Regional
g
Research
Funds Spin-Offs
Pre-Revenue
Invest local/ Invest local/ Invest global/
grow local grow global grow global
Page 8 | April 2009

9. Triangle in the European VC Landscape
Triangle - An Introduction
Founded in 1997
Cohesive and experienced investment team of 8 plus leading edge Board of
Advisors (technology and industry)
Disciplined investment approach: disruptive software and hardware
applications for IT, medical devices or clean tech industries
€ 80 million under management
€ 100+ million committed to portfolio companies incl co investors
incl. co-investors
Four funds in two fund generations with superior return to investors
Page 9 | April 2009

10. Triangle in the European VC Landscape
Triangle – An Introduction
me
Industry / Consumer Markets
Growth x Volum
Complexity
Pharmaceutical
MedTech
Financial Services
Applied Research
pp
Infrastructure
Complexity
Internet Logistics
Cognitive
tics / Computer Sciences
Systems Quantum
Applications Macro Economics Driven: Automation Media /
Entertainment
Market push - open new markets
to serve upcoming demands
Physics of Social Components oo g
Tooling Telecommunication
o a o
Modeling / Economic Systems Laser
Simulation IT
Sensing
Micro Economics Driven: Planning
Micro- / Nano- “Green
Systems Market pull - to solve immediate Technologies”
application problems
Mathemat
Distributed
Photonics
Systems Control
Automotive
Information
Flow
Logistics
Complexity
Physics / Engineering Sciences
…
Basic Research
Page 10 | April 2009

11. Triangle in the European VC Landscape
Triangle – An Introduction
Uli W. Fricke Wiebke Passmann
(*68) (*81)
Managing General Partner Investment Manager – Partner
ICT ICT
18 years relevant experience 4 years relevant experience
Associate producer at the leading BTX (German MBA from University of Paderborn major in risk
Paderborn,
Internet predecessor) service provider management
MBA from University of AS Worms at the age of 22 Summer associate in venture capital firms as
CEO at a global educational tour operator well as in industrial corporations.
CEO at a global niche market insurance company
Founding partner Triangle
Dr. Bernd Geiger Georgi Maximov
(*60) (*79)
Managing General Partner CFO – Partner
ICT, Medical Devices Finance, Risk Management Portfolio Companies
22 years relevant experience 7 years relevant experience
MS in Physics PhD in Natural Sciences
Physics, Project manager at Old Mutual Group
R&D work at University of Heidelberg, Karlsruhe, Chief Analyst at Skandia
EMU, German Cancer Research Center (DKFZ) Portfolio manager at Feri Wealth Management
R&D management at university spin-off Leica MBA from Free University Berlin, major in corporate
Lasertechnik, M&S management at Zeiss finance and investment theory
Founding partner Triangle
Dr. Xin Chen
(*82) Analyst 1 – Robert Glootz
Investment Manager
ICT
5 years relevant experience
Analyst 2 – Irina Medova
MS in Computer Science PhD in Economics
Science,
R&D work at University of Karlsruhe and University
of Science and Technology, Hefei, China.
Analyst 3 – Tobias Nils Krämer
Page 11 11 | April 2009
Page Page 11

12. Triangle in the European VC Landscape
Triangle – An Introduction
Prof. A. Cramer Prof. L. Wolf
Joerg Kreisel wireless telecommunication Dr. K. Ebertshuber
digital media
space technologies accounting / law
Prof. H. Salzwedel
electronic systems design
Prof. M. M. Resch
P f M M R h
W. Shiebler software design /
economics / super computing
american VC industry
Prof. S. Seeger
W.
W Rogers chip sensors
business development
Prof. R. Studer
semantic web
Dr. G. Seikel
law
D. Seckelmann
HR
Prof. H.-J. Mueller Dr. F. Gauper Prof. J. Wolfrum Dr. J. Redmer
s/w engineering medical devices laser technologies information technology
Page 12 | April 2009

13. Triangle in the European VC Landscape
Triangle – An Introduction
Fund IV
First Gen
Page 13 | April 2009

14. Triangle in the European VC Landscape
Case Study – iOpener Media
iOpener provides and facilitates real-time data into a range of virtual
applications, e g
applications e.g. race games driver training, and visualization, through its
games, training visualization
patented technology; using i.e. satellite navigation technology. iOpener
provides the real-time link between virtual worlds and the real world.
The innovative technological breakthrough enables gamers to join races
and compare themselves in real-time with the professionals (1-on-1), and
compete directly against professionals (1-to-many) when an actual live
event is on.
The products create entirely new user involvement by addressing three
major market trends: (1) the consumers steady hunger for more exciting,
interactive online in-game features, ( ) the g
g , (2) game p
publishers’ and hardware
manufacturers’ search for new revenue streams through unique online
game content, and (3) a growing target group of people who prefer
entertainment to be interactive, evolving outside the traditional gaming
universe.
universe
Page 14 | April 2009

15. Triangle in the European VC Landscape
Case Study – iOpener Media
presentation iOpener at ESA investment forum
presentation iO
i iOpener at T i
Triangle
l
joined meeting with potential customers Demonstration w/ Audi
discussion business model 2 LoI signed with tracks
signing termsheet
Investment Agreement Launch realtime
feature
Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09
Market DD Board membership Triangle
Tech DD Monitoring of risks and opportunities
IPR DD IPR DD R&D h d
hardware
Legal DD R&D game
portal
Discussion of business model,
target customers
Page 15 | April 2009

16. Triangle Venture Capital Group Management GmbH
Marktstrasse 65
D-68789 St. Leon-Rot
Germany
Tel: +49 700 874 26 453 / +49 6251 800830
Fax: +49 700 874 26 329 / +49 6251 800839
www.triangle-venture.com
Uli W. Fricke
u.fricke@triangle-venture.com
Page 16 | April 2009