EUROPE HAS NEVER BEEN BETTER

Nenad Marovac, DN Capital, 2015

Everyone has heard the hype about

Unicorns…

Here are some of the European Unicorns…

Source: GP Bullhound Research, European Billion Dollar Companies 2015, Crunchbase, Google Finance as of 16-Sep-15

$8bn $8bn $7bn $4bn $3bn $3bn $3bn $1bn $1bn $1bn

3

But in reality – it’s all about the Dragons…

Enter The Dragon

A dragon is a company that returns an entire

fund — a “fund maker”

European Dragons

Source: GP Bullhound Research, European Billion Dollar Companies 2015, Crunchbase, Google Finance as of 16-Sep-15

$8bn $8bn $7bn $4bn $3bn $3bn $3bn $1bn $1bn $1bn

7

European Venture Capital returns

Fund size 1-year IRR (%) 3-year IRR (%) 5-year IRR (%) 10-year IRR (%)

Eu

rop

e (

20

13

)

EUR 0-50m 1.31 -0.22 0.37 0.66

EUR 50-100m 6.29 1.85 2.01 0.31

EUR 100-250m -12.07 -1.02 -0.38 -0.44

EUR 250m+ 6.26 7.44 3.05 2.30

EUR All Venture 2013 2.45 2.31 1.32 0.84

EUR All Venture 2012 8.62 2.88 -0.57 0.01

8

Source: Invest Europe & Thomson Reuters, 2013 Pan-European Private Equity Performance Benchmarks Study, Cambridge Associates (June 2014)

US

(H

1 2

01

4) US Early stage Index 31.06 14.33 15.24 9.65

US Late & Expansion stage Index 25.15 12.34 17.79 12.41

US Multi-stage Index 27.59 13.34 13.19 10.86

US Venture Capital Index (CA) 29.15 13.75 14.77 10.32

Differential 20.53pts 10.87pts 15.34pts 10.31pts

In the US…

returned ~69x the fund for

returned ~10x the fund for

returned >10x the fund for

returned >5x the fund for

European ecosystem… Getting better and better

10

Higher quality

companies

Higher returns

…while major events and

groups are nurturing the

ecosystem…

The emergence of serial

entrepreneurs…

…supported by high

profile, experienced

angel and seed

funding…

…backed up by established

VC funds…

…helping to create the

new generation of

successful

entrepreneurs!

The emergence of serial entrepreneurs…

Niklas

Zennstrom

Oliver

Samwer

Brent

Hoberman

Philipp

Magin

11

…supported by high profile, experienced angel and seed funding…

Stefan

Glaenzer

Xavier

Niel

Brent

Hoberman

Niklas

Zennstrom

Nenad

Marovac

1996 2006 20112009

Mike

Chalfen

2014

Frederic

Court

2015

Klaus

Hommels

12

Neil

Rimer

Charles

Letourneur

2000

Bjørn

Stray

Martin

Weber

…and of course the infamous trio…

13

…while major events and groups are nurturing the ecosystem…

SLUSH

TECHCRUNCH DISRUPT

NOAH

FOUNDERS FORUM

14

INVEST EUROPE

DLD

BITS & PRETZELS

…helping create the new generation of successful entrepreneurs!

Hallo ich bin

Hakan Koç

Hallo ich bin

Alexander Brand

Bonjour je suis

Jean-Baptiste

Rudelle

Hej jag är

Sebastian

Siemiatkowski

15

Successful European Venture backed

Companies | Last 15 years

1

325

31

426

12

13

1110

89

7

213 4

7 56

2 456

78

9 1011

121314

1516

17

1819

202122

23

2425

2627282930

31

1 2

17

16

12

131110

9

8754

32

1

614

15

3331

2826

252422

20191821

2327

2930

3234

35

71021

8 3

34

59

1115

1617

1918

121314

202122

2324

2526

6

1 23

1 23

87

65 4

32

1 45

15

23

4

8

109

67

1

123

46

5

Legend

> $1bn Exit

>$100m Exit

Potential/Estimates

($100m or more)

> $1bn Potential

This map was created by DN Capital with input from

Northzone, Holtzbrinck, Ventech and Alven Capital Partners

1 3

8

2

4

3

4

1

1

CONFIDENTIAL

info@dncapital.com www.dncapital.com

Nenad MarovacManaging Partner

Tel: +44 (0)20 7340 1600 nenad@dncapital.com

Thank you!