bdmi presentation for newco new york
TRANSCRIPT
New York May 2015
BERTELSMANN DIGITAL MEDIA INVESTMENTS
www.bdmifund.comBEISPIELFOTO
Page 2 July 2011 · Bertelsmann AG · Company presentation
Bertelsmann Organizational Structure
Venture Capital Funds
Europe’s leading entertainment group
World‘s largest trade book publisher
Europe’s leading magazine publisher
Leading international provider of outsourcing
services
CorporateInvestments
International music rights management
Page 3 July 2011 · Bertelsmann AG · Company presentation
BDMI – New York Based Team Focusing On North America and Europe
Urs CeteManaging Director
Sim BlausteinPrincipal
Keith TitanPrincipal
Heba AsmarExecutive Assistant
Marcos V. BlancoPrincipal
Page 4 BDMI Bertelsmann Digital Media Investments
BDMI leverages and compelements Bertelsmann‘s other growth platforms (Brazil, India, China)
BBI
BII
Page 5 July 2011 · Bertelsmann AG · Company presentation
BDMI Introduction and Mission
BDMI IS A VENTURE CAPITAL FUND THAT MAKES EARLY-STAGE INVESTMENTS IN RAPIDLY GROWING DIGITAL MEDIA COMPANIES IN NORTH AMERICA, EUROPE AND ISRAEL. BDMI INITIATES INVESTMENTS IN SEED STAGE THROUGH SERIES B FOR A MINORITY STAKE.
BDMI SEEKS TO PROVIDE A RETURN ON CAPITAL TO ITS SOLE LP (BERTELSMANN), AS WELL AS PROVIDE STRATEGIC BENEFITS TO THE COMPANIES THAT IT FINANCES AND THE BERTELSMANN DIVISIONS.
Page 6 BDMI Bertelsmann Digital Media Investments
BDMI Profile –Investment Style
• A-B round ($0.5m-$4m)
• Seed ($50k-$250k)Early
• Lead / Follow
• Board seats / observer seatsActive
• Very syndicate friendly
Collaborative
• Next Generation TV
• Publisher Technology
• Content-Community-Commerce
Highly Focused
• Behave like a financial VC
• Require divisional champion for each venture stage investment
• Provide strategic value to Bertelsmann & portfolio
Strategic &Financial
Page 7 BDMI Bertelsmann Digital Media Investments
BDMI Platform
• Events – Media Summit, Topic Dinners
• “Treks” for our divisions
• Point introductions
• Connecting other media companies
• White papers – online video, influencer marketing
• + everything regular VCs do
Page 8 BDMI Bertelsmann Digital Media Investments
Focus Sector Trends & Thesis Current Portfolio
Next Gen TV
• Consumers are seeking out alternatives to traditional TV such as YouTube, over the top TV, and second screen entertainment
• Includes short form, long form, on/off YouTube, second screen etc
Publisher Technology
• Media businesses are seeking competitive tools to optimize content, capture an engaged audience and monetize their internet traffic
• Largely B2B: ad-tech, distribution, optimization, monetization etc
Content, Community, Commerce
• E-commerce businesses are leveraging content and content-driven communities in order to drive interest, engagement and revenue
• Includes e-commerce, next-gen publishing, community platforms etc
BDMI Profile –Investment Themes
Page 9 BDMI Bertelsmann Digital Media Investments
BDMI Actively Generates Commercial Partnerships Between its Portfolio and the Berteslmann Divisions
Call Center Cooperation with Arvato Germany, France & Spain
Managed Services for Bertelsmann Corporate, Arvato, RTL and G+J
BDMI initiates national and international commercial partnerships between its portfolio and the Bertelsmann Divisions
Examples of Business Partnerships initiated through BDMI
Provides mobile ad-serving for G+J Optimobile
Fremantle partnership, eventual exit
Guest contributors from Tenspeed Press; Food52 imprint with Crown
Fremantle uses Epoxy to boost viewership on several of their online video channels
Fodors.com leverages network for revenue + software for selling directly
Page 10 BDMI Bertelsmann Digital Media Investments
USA
Europe
BDMI Profile –Current Portfolio and Exits
US Investments European Investments
Fund-in-Fund Investments
Exits
Fund-in-Fund Investments
Exits
BDMI Seed Investments
Page 11 BDMI Bertelsmann Digital Media Investments
VC Industry Outlook –Trends for Venture Capital Investments
3
1
2 Next generation publishers are becoming relevant content providers by building a highly engaged, loyal customer base and leveraging social media platforms
Online video increasingly becoming the medium of choice for millennials; driving content discovery/consumption and influencers evolving into brand ambassadors
Proliferation of new user interfaces, connected devices and sensors help solve basic needs/problems seamlessly and in real-time, while improving quality of life
Credits: Inspired by Mary Meeker, 2014 Internet Trends – Code Conference.
Page 12 BDMI Bertelsmann Digital Media Investments
Trends for Venture Capital Investments –Connected Devices Make our Daily Lives much Easier
Transportation Health / Fitness Payments / Energy
Founded 2009; available in 50+ countries and 200+ cities; gross rev ’15F: $10B; valuation >$35B
Sources: Business Insider (Nov 2014), Now I Know Why Investors Are Going Hog Wild About Uber; Bloomberg (Nov 2014), At $40 Billion, Uber Would Eclipse Twitter and Hertz; Wikipedia; Cnet (Apr 2014), Fitbit's wearable lead stays strong despite Force recall; Crunchbase; Dailytech (Sep 2014), Apple Sells a Record 10M iPhone 6, iPhone 6 Plus Smartphones During Opening Weekend; MasterCard; WSJ (Jan 2014), Google to Buy Nest Labs for $3.2 Billion.
Founded 2008; acquired by Google for ~$1B in 2013; >50M
users globally
Waze
Uber Fitbit
Founded 2007; ~70% of all wearable fitness trackers sold in US; raised
$66M; valuation >$300M
MyFitnessPal
Founded 2005; community of >65 million users; raised $18M
Apple Pay
>10M units sold first 3 days of availability; >220k participating
merchants (for MasterCard only)
Nest
Founded 2010; acquired by Google for $3.2B in 2014;
installed in 1% of US homes
Page 13 BDMI Bertelsmann Digital Media Investments
Trends for Venture Capital Investments –Next Generation Publishers Lead Social Engagement
huffingtonpost.combuzzfeed.comfoxnews.com
nbc.comijreview.com
theguardian.comnytimes.com
dailymail.co.ukabs-cbnnews.com
elitedaily.comcnn.com
upworthy.comtheblaze.com
bleacherreport.complaybuzz.comusatoday.com
npr.orgyahoo.com
bbc.co.uktime.com
0 5 10 15 20 25 30 35 40 45 50
Total Facebook Interactions-in millions-
Source: The Whip (July 2014), The Biggest Facebook Publishers of June 2014.
Next gen publishers
Page 14 BDMI Bertelsmann Digital Media Investments
Trends for Venture Capital Investments –New Forms of Content are Highly “Addictive” across Verticals
Sources: VidStatsX (November 2014), YouTube Top 100 Most Subscribed Channels List and comScore (April 2014), March 2014 U.S. Online Video Rankings.
ChannelYouTube
Subscribers -in millions-
Music 88.0
Gaming 78.7
Sports 77.4
News 34.1
Popular 29.0
Spotlights 22.3
Movies 18.6
TV Shows 11.7
Education 10.4
YouTube MCNs User Engagement -in minutes / viewer-
Makers Studios
VEVO
FullScreen
Warner Music
StyleHaul
ZEFR
The Orchard
UMG
Disney Online
Warnerbros VFP
0 10 20 30 40 50 60
Influencer Engagement across Social Platforms
Chris Ozer75M daily
users
Zoe Sugg6.5M
followers
Joy Cho13.4M
followers
Nash Grier10.2M
followers
Page 15 BDMI Bertelsmann Digital Media Investments
Questions, Topics, Ideas?
Corporate investors vs financial VCs
New York as a startup hub- what makes a company suited to NYC?
NY VCs vs Silicon Valley
Evolution of Traditional
Media