Venture Capital in Central and Southeast Europe

Mario OrascheManaging Partner amp Founder Eagle Ventures

European

Entrepreneurship

and Innovation

Thought Leaders

Stanford

Engineering

February 8 2010

Page

2

History of the RegionA brief review of about 16 centuries

Byzantine Empire or Eastern Roman Empire (330-

1453)

The Austrian Austro-Hungarian Empire is prevailing

until WW I

A pan-regional symbol the double-headed eagle

Honey and blood

over centuries in

the Balkans

Bal = Honey

Kan = Blood

Sarajevo

Bosnia 1914

Assassination

triggers WW I

As of 19th Century

Page

3

Kingdom of Yugoslavia or Serbs Croats and

Slovenes (1918-1941)

Central and Southeast Europe (lsquoCSErsquo) TodayIt remains complicated

Wars pain and

suffering prevail

throughout the

20th century

EU Enlargement Process (Today)

Yugoslav Wars and NATO bombing of Bosnia

(1991-2001)

US UN NATO EU Peacekeeping forces in

Bosnia and Herzegovina (1995-2010)

Kosovo (1999-2010)

Page

4Page

4

Macedonia

ICT Outsourcing

Hungary Pharma Biotech

Slovenia RF technology

Romania

IT Pharma

Serbia Computer Engineering ProgrammingMontenegro

Energy Generation

Bosnia

Energy

Generation

Automotive

Croatia Chemistry Telecom Bulgaria

ElectronicsSemiconductors

Region Population Tech VCs Amount Invested

CSE 70 Mn 4-5 euro75 Mn (lsquo08)

California 365 Mn +400 $89 Bn (lsquo09)

Ratio 2 1 1 100 1 100

Eagle Ventures is the first multinational tech VC dedicated to CSE

Emerging VC LandscapeHigh potential region weak innovation ecosystem

Huge untapped

investment

opportunity

CSE vs CA

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Page

5

Major Changes Over Last DecadeEnvironment NOW ready for VC investments

The CSE

landscape has

improved

markedly for

technology firms

over the last

several years

Characteristics 1999 2009

Reverse brain drain in tech industries Rarely Significant gaining momentum

ICT infrastructure Poor Improving fast leapfrogging

ICT initiatives

Microsoft Technology Centers and RampD

departments of Ericsson Siemens

Cisco HP Oracle SAP etc

LimitedPresent in a number of locations

and increasing

Legal and political environment Weak Converging to EU

VC INVESTMENT READINESS NOT READY READY

copy

Other factors include

Surge in purchasing power

Managerial skill sets

Technology centers parks

MampA gaining traction

Page

6

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Household Internet penetration soared 46 times within 5 years (now close to 40)

Mobile phone penetration grew about 3 times to gt 100

Strong and still

growing ICT

access indicators

ICT IndicatorsRecent significant improvements

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

2

History of the RegionA brief review of about 16 centuries

Byzantine Empire or Eastern Roman Empire (330-

1453)

The Austrian Austro-Hungarian Empire is prevailing

until WW I

A pan-regional symbol the double-headed eagle

Honey and blood

over centuries in

the Balkans

Bal = Honey

Kan = Blood

Sarajevo

Bosnia 1914

Assassination

triggers WW I

As of 19th Century

Page

3

Kingdom of Yugoslavia or Serbs Croats and

Slovenes (1918-1941)

Central and Southeast Europe (lsquoCSErsquo) TodayIt remains complicated

Wars pain and

suffering prevail

throughout the

20th century

EU Enlargement Process (Today)

Yugoslav Wars and NATO bombing of Bosnia

(1991-2001)

US UN NATO EU Peacekeeping forces in

Bosnia and Herzegovina (1995-2010)

Kosovo (1999-2010)

Page

4Page

4

Macedonia

ICT Outsourcing

Hungary Pharma Biotech

Slovenia RF technology

Romania

IT Pharma

Serbia Computer Engineering ProgrammingMontenegro

Energy Generation

Bosnia

Energy

Generation

Automotive

Croatia Chemistry Telecom Bulgaria

ElectronicsSemiconductors

Region Population Tech VCs Amount Invested

CSE 70 Mn 4-5 euro75 Mn (lsquo08)

California 365 Mn +400 $89 Bn (lsquo09)

Ratio 2 1 1 100 1 100

Eagle Ventures is the first multinational tech VC dedicated to CSE

Emerging VC LandscapeHigh potential region weak innovation ecosystem

Huge untapped

investment

opportunity

CSE vs CA

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Page

5

Major Changes Over Last DecadeEnvironment NOW ready for VC investments

The CSE

landscape has

improved

markedly for

technology firms

over the last

several years

Characteristics 1999 2009

Reverse brain drain in tech industries Rarely Significant gaining momentum

ICT infrastructure Poor Improving fast leapfrogging

ICT initiatives

Microsoft Technology Centers and RampD

departments of Ericsson Siemens

Cisco HP Oracle SAP etc

LimitedPresent in a number of locations

and increasing

Legal and political environment Weak Converging to EU

VC INVESTMENT READINESS NOT READY READY

copy

Other factors include

Surge in purchasing power

Managerial skill sets

Technology centers parks

MampA gaining traction

Page

6

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Household Internet penetration soared 46 times within 5 years (now close to 40)

Mobile phone penetration grew about 3 times to gt 100

Strong and still

growing ICT

access indicators

ICT IndicatorsRecent significant improvements

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

3

Kingdom of Yugoslavia or Serbs Croats and

Slovenes (1918-1941)

Central and Southeast Europe (lsquoCSErsquo) TodayIt remains complicated

Wars pain and

suffering prevail

throughout the

20th century

EU Enlargement Process (Today)

Yugoslav Wars and NATO bombing of Bosnia

(1991-2001)

US UN NATO EU Peacekeeping forces in

Bosnia and Herzegovina (1995-2010)

Kosovo (1999-2010)

Page

4Page

4

Macedonia

ICT Outsourcing

Hungary Pharma Biotech

Slovenia RF technology

Romania

IT Pharma

Serbia Computer Engineering ProgrammingMontenegro

Energy Generation

Bosnia

Energy

Generation

Automotive

Croatia Chemistry Telecom Bulgaria

ElectronicsSemiconductors

Region Population Tech VCs Amount Invested

CSE 70 Mn 4-5 euro75 Mn (lsquo08)

California 365 Mn +400 $89 Bn (lsquo09)

Ratio 2 1 1 100 1 100

Eagle Ventures is the first multinational tech VC dedicated to CSE

Emerging VC LandscapeHigh potential region weak innovation ecosystem

Huge untapped

investment

opportunity

CSE vs CA

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Page

5

Major Changes Over Last DecadeEnvironment NOW ready for VC investments

The CSE

landscape has

improved

markedly for

technology firms

over the last

several years

Characteristics 1999 2009

Reverse brain drain in tech industries Rarely Significant gaining momentum

ICT infrastructure Poor Improving fast leapfrogging

ICT initiatives

Microsoft Technology Centers and RampD

departments of Ericsson Siemens

Cisco HP Oracle SAP etc

LimitedPresent in a number of locations

and increasing

Legal and political environment Weak Converging to EU

VC INVESTMENT READINESS NOT READY READY

copy

Other factors include

Surge in purchasing power

Managerial skill sets

Technology centers parks

MampA gaining traction

Page

6

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Household Internet penetration soared 46 times within 5 years (now close to 40)

Mobile phone penetration grew about 3 times to gt 100

Strong and still

growing ICT

access indicators

ICT IndicatorsRecent significant improvements

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

4Page

4

Macedonia

ICT Outsourcing

Hungary Pharma Biotech

Slovenia RF technology

Romania

IT Pharma

Serbia Computer Engineering ProgrammingMontenegro

Energy Generation

Bosnia

Energy

Generation

Automotive

Croatia Chemistry Telecom Bulgaria

ElectronicsSemiconductors

Region Population Tech VCs Amount Invested

CSE 70 Mn 4-5 euro75 Mn (lsquo08)

California 365 Mn +400 $89 Bn (lsquo09)

Ratio 2 1 1 100 1 100

Eagle Ventures is the first multinational tech VC dedicated to CSE

Emerging VC LandscapeHigh potential region weak innovation ecosystem

Huge untapped

investment

opportunity

CSE vs CA

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Page

5

Major Changes Over Last DecadeEnvironment NOW ready for VC investments

The CSE

landscape has

improved

markedly for

technology firms

over the last

several years

Characteristics 1999 2009

Reverse brain drain in tech industries Rarely Significant gaining momentum

ICT infrastructure Poor Improving fast leapfrogging

ICT initiatives

Microsoft Technology Centers and RampD

departments of Ericsson Siemens

Cisco HP Oracle SAP etc

LimitedPresent in a number of locations

and increasing

Legal and political environment Weak Converging to EU

VC INVESTMENT READINESS NOT READY READY

copy

Other factors include

Surge in purchasing power

Managerial skill sets

Technology centers parks

MampA gaining traction

Page

6

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Household Internet penetration soared 46 times within 5 years (now close to 40)

Mobile phone penetration grew about 3 times to gt 100

Strong and still

growing ICT

access indicators

ICT IndicatorsRecent significant improvements

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

5

Major Changes Over Last DecadeEnvironment NOW ready for VC investments

The CSE

landscape has

improved

markedly for

technology firms

over the last

several years

Characteristics 1999 2009

Reverse brain drain in tech industries Rarely Significant gaining momentum

ICT infrastructure Poor Improving fast leapfrogging

ICT initiatives

Microsoft Technology Centers and RampD

departments of Ericsson Siemens

Cisco HP Oracle SAP etc

LimitedPresent in a number of locations

and increasing

Legal and political environment Weak Converging to EU

VC INVESTMENT READINESS NOT READY READY

copy

Other factors include

Surge in purchasing power

Managerial skill sets

Technology centers parks

MampA gaining traction

Page

6

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Household Internet penetration soared 46 times within 5 years (now close to 40)

Mobile phone penetration grew about 3 times to gt 100

Strong and still

growing ICT

access indicators

ICT IndicatorsRecent significant improvements

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

6

CSE in terms of Eagle Venturesrsquo focus region BG BIH HR HU MK MNE RO SLO SRB

Household Internet penetration soared 46 times within 5 years (now close to 40)

Mobile phone penetration grew about 3 times to gt 100

Strong and still

growing ICT

access indicators

ICT IndicatorsRecent significant improvements

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

7

Funds raised in 2008 euro25 Bn (VCampPE)

euro02 Bn

vs $286 Bn USA

Source NVCA

Vast majority still

into PE although

number of VC

deals augments

Investment ActivityVC barely existent

Source EVCA 2008 (comprises entire Eastern Europe)

Source EVCA 2008 (comprises entire Eastern Europe)

46

43

12 dealsCA

- 1137 VC Deals

- $89 Bn

Source NVCA 2009

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

8

184

258

308

496

617

0 100 200 300 400 500 600 700

Transportation

Consumer Goods and Retail

Financial Services

Communications

Life Sciences

TOP 5 INVESTMENT SECTORS EASTERN EUROPE 2008(MILLION euro)Besides Life

Sciences other

high-tech sectors

still lag behind in

Eastern Europe

SectorsEastern Europe vs Silicon Valley

Source EVCA 2008 (includes PE investments)

Source NVCA 2009 PWC Moneytree Report (VC only)

923

1071

1374

1582

2363

0 500 1000 1500 2000 2500

Media amp Entertainment

Medical Devices amp Equipment

Biotechnology

Industrial Energy

Software

TOP 5 INVESTMENT SECTORS SILICON VALLEY 2008(MILLION $)

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

9

LP LandscapeNot too different from the US

Limited investor

landscape for

emerging VCs

Top LPs are FoFs Pension Funds and Other Sources

Endowments and Foundations are of significantly higher importance in the US

Source EVCA 2008

(euro25 Bn includes PE)

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

10

Introduction to Eagle Ventures A Novel Approach

Unique

investment

focus and

strategy

generates high

return potential

CSE Region

Tier 1 Former Yugoslavia (Bosnia Croatia Macedonia Montenegro Serbia and Slovenia)

Tier 2 Bulgaria Hungary and Romania

Selectively anywhere if there is a clear CSE connection

TRIPLE FOCUS

Technology Sectors

Digital Media

Software amp IT

Electronics

Greentech

Early Stage

Primarily A and B investment rounds- Selectively seed or late-stage venture

- Co-investments with value adding VCs and co-investors

2

1

3

Started with euro10 Mn cornerstone commitment Abanka Slovenia

Made first investment in leading-edge live video streaming platform

Continue fundraising in Europe and US Fund target size euro40-65 Mn ($100 Mn cap)

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

11

Management TeamStrong VC entrepreneurial and tech background

Profound local

knowledge and

sound tech VC

track recordMario Orasche

Ljubljana Slovenia

George Sarcevich

Belgrade Serbia

Ivan Vrdoljak

Zagreb Croatia

Tech Investment Value $200 Mn

Entrepreneurial Experience

Corporate Experience

Tech Exit Value $15 Bn

Page

12

Eagle VenturesWest Coast approach ndash unique in CSE

Modeled after

West Coast VC

organizations

to leverage

knowledge and

execution

Venture AdvisorsAdvice on Investment Divestment Decisions

Alon

Adler

Alan

Barrell

Peter

Globokar

Nino

Marakovic

Peter

Zaboji

Venture PartnersHands-on Management Support to Portfolio

Zdenek

Bilek

Karl Heinz

Messer

Dragan

Pleskonjic

Damir

Sabol

Peter

Szlavik

Domen

Verdnik

Supervisory Board

Bostjan Heric

Tone Pekolj

Christian Schopper

Portfolio Companies

FUNDNew Europe

Tech I

2 3 4 5-151

Fund Management Company

Investment

Manager II

Managing Partner SLO Managing Partner SRB

Analyst HR+SRB

Managing Partner HR

Analyst SRBTech Expert SLO

Crucial Venture Capital Skill SetsVenture Capital + Technology + Finance + Operations

Mario

Orasche

George

Sarcevich

Vladimir

DelicTBA

Damjan

Lampret

Ivan

Vrdoljak

Page

13

First Portfolio CompanyLeading global player in real time video streaming

HQ Bay Area top engineering team in Slovenia Founded in 2008

Revenues $1 Mn

Headcount 20

Strategic partnership with Alcatel-Lucent

Customers

Preparing financing round with Silicon Valley investors

wwwlivecliqnet

Offers a unique 2-way (up and down) 3-screen (mobile web and broadcast)

live video streaming platform

Page

14

Contact

Thanks

Mario OrascheManaging Partner Founder

EAGLE VENTURES

marioeaglevccom

wwweaglevccom

Page

13

First Portfolio CompanyLeading global player in real time video streaming

HQ Bay Area top engineering team in Slovenia Founded in 2008

Revenues $1 Mn

Headcount 20

Strategic partnership with Alcatel-Lucent

Customers

Preparing financing round with Silicon Valley investors

wwwlivecliqnet

Offers a unique 2-way (up and down) 3-screen (mobile web and broadcast)

live video streaming platform

Page

14

Contact

Thanks

Mario OrascheManaging Partner Founder

EAGLE VENTURES

marioeaglevccom

wwweaglevccom

Page

14

Contact

Thanks

Mario OrascheManaging Partner Founder

EAGLE VENTURES

marioeaglevccom

wwweaglevccom