1. European VC from a
UK Perspective
Stanford Engineering
European Entrepreneurship & Innovation
7th January 2013
Anne Glover
CEO, Amadeus Capital Partners Limited,
Chairman of EVCA, VC Council

2. Amadeus Capital – a Leading European ICT Investor
Early stage investor and business builder
• Experienced entrepreneurs and start-up executives
• 15 years  85 companies  7 funds  £500m AUM
• Global and multi-cultural
Consistently at the forefront of key trends in the ICT industry
• Backed leaders in every ICT wave since the 70’s
• Active today in mobile services, security software, medtech and h’care IT
• Deep global network of investors, entrepreneurs and corporations
Proven contributor to the creation of tech ecosystems
• Generates benefits beyond returns – M&A, partnerships, incubation
• Active in the development of clusters – Cambridge, London, Stockholm
• Leading role in BVCA, EVCA and UK and EU innovation initiatives
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3. Our Experience
VC & Transaction
70% Experience
Operational
60% Experience
Percentage of Total Work Experience
50%
P&L Responsibility
International
40%
Experience Start-up
Experience
30%
Experience
Gained at
20%
Amadeus
10%
0%
Total of 219 Person Years
Unique transaction and business building capabilities
3

5. We increasingly back serial entrepreneurs
80%
% of companies with serial entrepreneurs
70% 68%
60%
50%
40% 37%
30%
20% 17%
10%
0%
AMI AMII AMIII
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6. We increasingly attract international deal flow in our sectors
100%
90%
80%
70%
Percentage of Deals Seen
60%
50%
40%
30%
20%
10%
0%
UK International - Europe International - USA International - Other
Source: Amadeus internal analysis
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7. Mobility – we understand our sectors deeply
Apps/
Services
Service
Layer
Control
Layer SS7 SIP / IMS
Transport
Layer
Access
Layer
Devices
7 Amadeus Mobile Portfolio

8. Amadeus Mobile Portfolio* …
… and help them scale exponentially
… has grown to >£350m in annual sales
400
350
Portfolio Revenue (£ millions)
300
250
82% CAGR
200
150
100
50
0
1 2 3 4 5 6
Years from First Investment
*17 mobile companies excluding End2End
8 because of short holding period

9. We Back Ambition
… and guide our companies to globalise from early on
Portfolio companies with sales into region > 5%
North America Western Europe
7
1
19
Global
3
Emerging Markets
22 out of 30 portfolio companies sell into emerging markets
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10. … and have exited in all market conditions
6,000 Amadeus Exits vs. Nasdaq Index
5,000
4,000
3,000
2,000
1,000
0
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12
… frequently via IPOs
10 Source data: Nasdaq Composite indices

11. Summary
Amadeus Capital
• Experienced early stage investor and business builder
• Consistently at the forefront of key trends in the ICT
industry
• Consistently built market leading companies
• Focussed on the sectors we know, rather than following
momentum based trends
• Proven contributor to the creation of tech ecosystems
BUT…
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12. Europe is still sub-scale relative to the US
……on every dimension (2007-2012)
Avg. Fund Size No. of Funds
140 200
120
100
58% 150
45%
$millions
80
100
60
40 50
20
- -
US Europe US Europe
Annual Funds Raised US
25 Europe
20
= 26%
$Billions
15
10
5
-
US Europe
12 Dow Jones Venture Source

13. ..however this means that median pre-money
valuations are much better in Europe
Median Pre-money valuations: EU as a % of US Median Pre-money valuations: US vs EU 1H’12
$50 46m
$45
140% $40
120% $35
30m US
100% $30
EU
80% $25 21m
$20
60%
$15 11m
40% 10m
$10
20% 4m 3m
$5 1m
0% $0
2007 2008 2009 2010 2011 1H'12 Later Second First Seed
Later Second First Seed
Source: Venture Source
13
:

14. …and today is the right time to invest because:
VC capital invested in Europe is at its lowest level since 1997
5,000 25
4,500
Number of companies (lines)
4,000 20
3,500
€bn (bars)
3,000 15
2,500
2,000 10
1,500
1,000 5
500
0 0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Seed Start up Later Stage
14 Source: EVCA

15. …and low fund raising vintages offer the best returns
European Venture Returns by Vintage Year (IRR % - GBP)
10% 100
Tech Credit
8% Bubble/Crash Bubble/Crash 80
6% 60
No. of Funds raised
4% 40
IRR% - GBP
2% 20
0% 0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
-2% -20
-4% -40
-6% -60
Upper Median No of funds raised
Slide 6 Source: Thomson One

16. The UK is a good place to invest…
Total Amount Invested by Country 2007 -2011
Finland Austria
Italy Ireland 1%
2% 2%
2%
Belgium
3%
Denmark
3%
United Kingdom
Norway 23%
4%
Switzerland
4%
Netherlands
5%
Spain France
6% 19%
Sweden
7%
Germany
17%
…it remains the largest VC market in Europe
16 Source: EVCA

17. … but you need to choose the moments to invest!


Seed
Early Rev
 Expansion
...Seed and Early Stage .. OR… Expansion Stage
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18. The Challenges
Fund raising
the euro crisis
poor VC returns since 2000
regulatory burden on LPs from Brussels
banks, insurance companies, pension funds all pulling out
fund of funds struggling because of double fee burden
large pools of capital cannot write small cheques for small VC fund sizes
Need to re-invent LP base yet again – family offices, endowments, corporates
Exits
High value exits require competition at the time of exit, often vs. IPO
European stock market investors are risk averse and dividend driven
Need to scale companies successfully to list in the US
or
Need to create globally compelling stories, and sell to an ex-US cash rich
corporations
VC is about entrepreneurship and we are having to be entrepreneurial as well
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19. Amadeus Office Network
Cambridge London Bay Area
Investment & back office Investment Investment & connectivity
2 Mount Pleasant, 16 St James’s Street, 321 Pacific Avenue, San
Cambridge CB3 0RN London SW1A 1ER Francisco, CA 94111
Tel: +44 1223 707 000 Tel: +44 20 7024 6900 Tel: +1 (415) 699 4834
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