looking forward - 01.03.2016
TRANSCRIPT
Looking Forward
01.03.2016
Disclaimer
• This presentation, its contents and any statement made in connection with it do not amount to - and cannot be construed as amounting to - any
solicitation or other offer to sell or buy any security or financial instrument issued by LVenture Group, nor to a recommendation, suggestion,
advocacy or other marketing or similar effort of any investment in any securities.
• Therefore, any investor contemplating purchasing securities or financial instruments issued by LVenture Group should make its own independent
investigation and assessment with respect to the financial condition and affairs of the issuer, as well as its own appraisal of LVenture Group’s
creditworthiness, and it should carefully consider the risk involved in purchasing such securities or financial instruments.
• Any forward looking statement included in this presentation or provided in connection with it reflects management’s current plans, views, estimates,
projections and objectives. Actual results may differ materially from such expectations, as they relate to future events and circumstances which are
beyond our control, including, amongst other things, internal, industry and external factors, such as general economic conditions. Any user of such
information should not place undue reliance on such forward looking statements.
• This presentation, its contents and any statement made in connection with it have not been independently verified. No representation or warranty,
either express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness, correctness or reliability of the
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for any reason, in relation to such information or any damage, loss or cost arising from its use or otherwise. LVenture Group is under no obligation to
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Other Revenues
Who We Are
TOP20Most Active
Tech VCs
«The 2014 European Tech Report»
MostActive VCin Italy
Source: bit.ly/TECH_EU2014
• LVenture Group is one of the few listed Venture Capital operators in the world
• Based in Rome with an integrated acceleration and investment approach
• More than 1.5k investment proposals analyzed yearly
The Venture Capital Business
Rome
SEED
Up to €250k investmentin startups exiting theacceleration program orother startups selectedfrom the market
MICRO SEED
Investment of €80k in every startup through LUISS ENLABS Acceleration program
ACCELERATION
Offering LUISS ENLABSservices to third parties
CO-WORKING
Events and desks or offices rented to startups
SCHOOL
Courses for corporates and privates via DoLab School
OPEN INNOVATION
Fees from Open Innovation Programs for corporates
The Team
• Senior team with a cumulated experience in the financial capital markets of over 100 years
• Combined skills and a positive entrepreneurial track record
• High reputation, strong and extensive networks
Source: elaboration based on the organisational chart of the group
Current Business Model
Startups from the market
De
al F
low
LUISS ENLABSMicro Seedup to €80K LVenture
Seed
up to €250k
EXITS
ele
ctio
n
6+
Startups
LVenture Group’s investment
0
months
3 9
years
Universities
Events
Partners
Online
VCs
Word of Mouth
Third Parties’ Programs
Startups
Expected cash multiple of 5.45
LVenture Group combines both financial and entrepreneurial expertise in the micro seed and seed segment thanks to its integrated model with a startup accelerator
Arbitrage Opportunity
Investing in Italy with competitive valuations and rapidly scaling startups to international markets with higher valuations
Micro Seed Series ASeed
InvestmentPriority International
VC FundsCo-investors:
€1.5m€3m
€5m
Italy Europe Silicon Valley
Average Pre-money Valuation
€5m
€7m
€10m
Italy Europe Silicon Valley
Average Pre-money Valuation
Acceleration Program standard deal:
• Premoney: ~ €800k
• Investment: €80k
• Equity: 9%
Source: own data elaboration based on internet information
Competitive Advanteges
Multiple deal sources and data-driven processes
Entering at early stage with competitive valuations
Small investments and diversified portfolio
Full support with an entrepreneurial approach and a network of advisors
High Return Rates: early-stage investment
The Ecosystem
• Thanks to its activities and results, LVenture Group hasmanaged to create a dynamicecosystem
• Interactions and synergies within the ecosystem are essential for the growth and development of startups
• LVenture Group’s unique ecosystem relies on the strength of a network of exceptional stakeholders:• Investors (business angels
and VCs)• Corporates• Universities• Advisors• Partners & Sponsors• Institutional bodies• …
SPONSORS
PARTNERS
ADVISORS
50+InternationalChampions
SPONSOREDPROJECTS
CORPORATES
UNIVERSITIES
INSTITUTIONALBODIES
INVESTORSNETWORK
30+ Startups
Estensive Corporate Network
EmotionsIndustrialFinanceUtilityTechnology
Our ecosystem is engaging an increasing number of corporates seeking to get involved in innovation
A Fast Growing System
In 36 months: 27 startups accelerated by LUISS ENLABS
23 startups raised over €9m (more than 60% from third party investors)
~ €650kin 9 months
~ €1.1min 6 months
~ €1.4min 3 months
~ €2.3min 2 days
Acceleration Program 2013 Acceleration Program H1 2014 Acceleration Program H2 2014 Acceleration Program H1 2015
Source: data elaboration based on internal data as of 31.12.2015
Capital raised by startups after the Acceleration Program
Results
33Portfolio startups
€5mInvested by LVenture Group
28 monthsPortfolio maturity
€13.7mInvested by third parties
Source: elaboration based on internal data as of 31.12.2015
Startup Investment Criteria
LVenture Group is a seed investor in digital tech startups with global markets and with a replicable and scalable business model focused on B2B sectors
SaaS
Market: fast growth & international
Marketplace IoT Lifestyle Gaming Big Data Fintech Cleantech
Team: complete & heterogenous
0
500
1000
1500
2000
2500
2013 2014 2015
Amount Invested by year
Total Amout Invested
697(15)
1,197(22)
2,000+(31)
Investment Activity
Over the three years of activity the investment trend has shown an annual growth rate that exceeds 90% and the overall amount invested to date is of over €5 million
Figures in €k (# of deals)
90%+CAGR
Source: elaboration based on internal data
Startup Investments
• Micro-seed Investment: €80k in startups participating to the Acceleration Program and €30k for the most promising startups participating to third parties’ programs
• Follow-on Investment: average amount of €63k
• Seed Investment: average amount of €144k
0
0,5
1
1,5
2
2,5
3
3,5
4
2016 E 2017 E 2018 E 2019 E
Total Amount by year
Total Amount
2.4(34)
3.0(43)
3.2(48)
3.4(49)
Figures in €m (# of deals)
Portfolio
33 startups in the portfolio 23 of which are from LUISS ENLABS Acceleration Program:Portfolio @ cost: ~ €5m and an average lifetime of 2.5 years
Accelerated by LUISS ENLABS (chronological order)
Portfolio – Revenues
Startups founded in 2011and 2012 – entering LVG’sportfolio in 2013 – havemore than doubled therevenues performance ratein two years (2013-2015)
Startups which received aninvestment by LVG in 2013have so far registered arevenues performance rateof 7.49, while those includedin the «Vintage 2014»achieved the same resultwithin a year
Total Revenues
(# of startups)2013 A 2014 A 2015 F Performance
Vintage 2011 (4) 1,242 1,615 2,665 2.15x
Vintage 2012 (4) 85 110 229 2.69x
Vintage 2013 (10) 321 1,295 2,405 7.49x
Vintage 2014 (6) - 106 830 7.83x
Vintage 2015 (9) - - 897 N.A.
Source: data elaboration based on information provided by the portfolio companies
The quality of LVenture Group’s investments has progressively improved over the years, allowing the registration of increasingly positive performance rates
Filo
Filo is a small device which helps to keep important things under control
Soundreef
Soundreef collects, tracks and pays royalties to copyright holders of music
Tutored
Tutored is an online hub where students can find a wide range of tools and resources
Strategic Goals
The core of the strategic business plan is the achievement of three goals which are essential to deliver positive results
Exit Revenues
Realize the first exit of a portfolio startup
Achieve the sustainability with a positive operating margin
Expansion
Create the Startup Hub and international connections
Exit
Exit
Trade sale through M&A or IPO
LVenture Group is able to pursue the exit of its portfolio companies (at an expected cash multiple of 5.45) thanks to the support of the ecosystem and the network of qualified
advisors with corporate experience
Portfolio
High potential startups
Advisors
LVG TeamEcosystem
DoLab School Digital SmartLearning, is a school for digitalprofessions that provides awide range of courses: inhouse, on site and online
Do-LabSchool
Revenues
Expected strong revenue increase from education programs and consulting services, especially acceleration programs for third parties
0
0,5
1
1,5
2
2,5
3
3,5
4
2015 F 2016 E 2017 E 2018 E 2019 E
Revenues by year
Total Revenues
Figures in €m
1.0
2.3
3.23.6
3.9
Open InnovationProgram
LUISS ENLABS offers itsacceleration services tocorporates and institutionsinterested in getting involvedin innovation
Aims at getting corporatesinvolved in innovation bysuppling services: access tothe co-working space, startupsscouting and others
The Accelerator provides theopportunity to rent workingstations in its spaces,encouraging serendipity andbusiness networking
Acceleration as a Service
Co-workingFacilities
Expansion
Over 3,500 square meters within Termini Station(along via Marsala):
• Open space of 610 square meters
• 19 office rooms
• 6 areas reserved to partner corporates
• 2 event halls: 200 seats and 60 seats
• Relax areas and kitchen
Expanding the physical hub in order to create the Startup Hub to engage more corporatesand building connections abroad to foster an international network
The Startup Hub Global AcceleratorNetwork
Gathers the world's mostrespected organizations thatsupport the startup industry allaround the globe including 75of the top accelerators andorganizations in the startupsector, with offices in morethan 100 cities around theworld
Rainmaking Loft:a base in Berlin
Rainmaking Loft is aninternational startup huband co-working space basedin Berlin run byentrepreneurs and angelinvestors. Rainmaking Loft isdedicated to supporting andgrowing tech start-upcommunity in Berlin
Further national and international expansion to come
Milan London New York City
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Revenues Capital Gains Operating Costs Write-off
Key Figures
2019 E
0.6
1.500
2.02.3
3.0
0.7
1.5
3.84.0 4.1
3.23.6
3.9
3.2
6.1Figures in €m
2018 E2017 E2016 E2015 F2014 A
0.30.1
1.0
1.4
0.5
1.00.9
Fundraising
€9.9mCapital raised
to date
2,500+Shareholders~55% free float
€4.99mNew capital
increase
• Increase market liquidity: projected market cap of €20m
• New resources to support bothinvestment activitiesand diversified projects: Startup Hub, internationalisationand Open Innovationprocess
Invest in Us
LVenture Group stock is a way to invest in a high growth sector combining a diversified VC portfolio with the liquidity of a tradeable security
High ExpectedReturns
DiversifiedPortfolio
LiquidAsset
VentureCapital
Motivated TeamDirectors hold more than 42% shares
