Presentation on 02-26-2015 Vienna, WKO 6th patch Go Silicon Valley initiative

1. INVESTOR:
BEST PRACTICE + Q&A
Markus Wagner
26th of Feb. 2015; @MarkusWagner
CEO - i5growth Inc. (Palo Alto) – www.innovationcenter.eu
Chairmen of Adv. Board - i5invest seed capital (Austria/Vienna)
Board AustrianStartups – Austrian Startup Association (non-profit)
Investment Committee Member – SpeedInvest (seed and Series A fund in Austria)

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MADE in AUSTRIA & Successful in the US (Silicon Valley)
CONGRATULATIONS
THIS WILL BE AN EXCITING TIME FOR YOU

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4. 4 | 6/03/2015
…known for Mozart, Sissi & Sound of Music

5. 5 | 6/03/2015
…known for – Music & Culture
…part of your job will be educating about
Austrian tech & startup scene

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Strong Austrian Brands

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and recently known for a lively, liberal culture & tech scene

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Vienna‘s Biggest Asset: 180.000 students in Vienna (40% int.)

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Notable EXITS (starting by 2010):
• 2010: fatfoogoo – Digital River
• 2010: greentube - Novomatic
• 2010: jajah - Telefonica
• 2010: 123people - PagesJaunes
• 2011: RF-iT Solutions – Enso Detego
• 2011: sensordynamics - Maxim
• 2011: silverserver – Tele2
• 2011: redcoon – Metro’s Media Saturn
• 2011: dynaTrace - Compuware
• 2011: payolution – Moneybookers / Skrill
• 2011: checkfelix.com - KAYAK
• 2012: Kununu - Xing
• 2012: Tupalo – Herold / European Directories
• 2012: Arztsuche24 – Herold / European
Directories
• 2012: Blue-tomato – Zumiez Inc.
• 2012: paysafecard - Skrill
• 2013: tripwolf – German Publisher
• 2013: SolveDirect – Cisco
• 2013: Runtastic – Axel Springer
• 2014: Immobilien.net – ImmobilienScout24
• 2014: Wikidocs – Atlassian
• 2014: MobFox – Matomy Media Group
(MTMY:LSE)
Notable Events (starting by 2012):
• 2012: Andreessen Horowitz/Citi Ventures
investment into Jumio
• 2012: Blossom investment of seedcamp
• 2013: CodeShip investment of seedcamp and
Techstars
• 2013: Former Expedia CEO invests in TourRadar
• 2014: CodeShip receives US Series A
• 2014: Foundertalks.org launches (brings YC alumni
to Austria for experience exchange)
• 2014: Ulmon investment of Global Founders Capital
• 2014: 100% Austrian Team in YC patch
• 2014: Talenthouse investment of ProSiebenSat.1
Media AG
• 2014: Austrian team joins YC producthunt.com
(founding team member)
• 2014: Austrian flatout joins Cisco’s EIR program
• 2014: Austrian Crate.io TechCrunch Disrupt Europe
Winner
• 2015: ChatGrape Betaworks (US) investment
Austrian Ecosystem Exits / Notable Events

10. 10 | 6/03/2015
AUSTRIA
i5invest
USA
i5growth
WE ARE LONG TERM PARTNERS (through all stages, 2/year):
 START-UP MENTORING
 SEED FUNDING
 CORPORATE DEVELOPMENT / M&A ADVISORY
WE ARE LAUNCHPAD FOR THE US MARKET:
 US MARKET ENTRY / STRATEGIC PARTNERSHIPS
 START-UPs
 EUREOPEAN VCs / ACCELERATORS
 OLD ECONOMY

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Portfolio Overview
#inspire, #innovate, #incubate, #invest, #internationalize

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Who we are – Our Team in Vienna – what‘s new
Founded 2007, Vienna - partner i5growth Inc. in Palo Alto
6/03/2015
Herwig Springer
CEO Corp. Dev.,
M&A
h.springer@i5invest.com
+43 650 530 8976
Patrick Prokesch
Director Corp. Dev.,
M&A
p.prokesch@i5invest.com
+43 676 303 4854
Paul
Weinberger
Partner
Markus Wagner
Chairman of
Advisory Board
CEO - i5growth
Inc./ USA
Alexander
Igelsboeck
Advisory
Board
Martin
Brunthaler
Advisory Board
Georg Novak
Executive Assistant
g.novak@i5invest.com
+43 676 841 282 150
Bernhard
Lehner
Partner
Vlad
Gozman
Partner
Advisory Board Partner

13. US vs. Europe

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US vs. EUROPE – ACCESS TO CAPITAL

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3/6/2015
66%
0.00
0.50
1.00
1.50
2.00
2.50
3.00
Europe USA
Enterprise Value / Sales - Jan 2015
Enterprise Value / Sales
How do capital markets look at
Internet Companies?
Source: Capital IQ & i5invest Analysis
US-based companies trade at a 66%
premium above their peers in Europe.
Companies in the Anglo-Saxon Region
trade at higher multiples in general.
Does being in the US add value for the sake
of being in the US?
0.00
1.00
2.00
3.00
4.00
5.00
6.00
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
8,000.0
9,000.0
10,000.0
United Internet AG
(DB:UTDI)
Yandex N.V.
(NasdaqGS:YNDX)
Telecity Group plc
(LSE:TCY)
Top 3 "European"
Enterprise Value EV / Revenues
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
-
50,000.0
100,000.0
150,000.0
200,000.0
250,000.0
300,000.0
350,000.0
Google Inc.
(NasdaqGS:GOOGL)
Facebook, Inc.
(NasdaqGS:FB)
eBay Inc.
(NasdaqGS:EBAY)
Top 3 American
Enterprise Value EV / Revenues
What are the big players and
their valuations?
USD in bn
US vs. EUROPE – IT’S A BIG GIRL’s & BOY’s GAME!

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US vs. EUROPE - IT IS EXPENSIVE THERE!
6/03/2015
Factors that should be considered when talking about a
bubble
Interest rates are
basically 0%
Total tech investments
incl. M&A close to 2000
Rising pre-money values
IPOs with negative
Earnings
Rising tech salaries
We are in Europe (with
still big global potential)
BUT: We need to improve the ecosystem and create
serial entrepreneurs with international exits
1
2
5
3
4
-
2,000.0
4,000.0
6,000.0
8,000.0
0
200
400
600
800
Tech investments
Number of Deals
Investments (USD in m)
2
4
0
20
40
60
80
100
The percentage of IPOs
with negative earnings
3
0
20
40
60
80
100
Pre-Money Valuations
Later Round
Second Round
First Round
(USD in m)
5
86000
88000
90000
92000
94000
96000
98000
2009 2010 2011 2012 2013 2014
Software Engineer Base
Salary
(USD)
Source: i5invest analysis, PwC, DJ VentureSource, Jay R. Ritter / Business Insider and Glassdoor / BI.

17. What are silicon valley
investors looking for?

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What are investors looking for?
1. Amazing management team (facebook, google, airbnb, …)
2. Strong IP / technology – protection of IP
3. It needs to solve a clear problem - clear product market fit
4. User traction, great growth
5. Revenues - proof of revenue potential
6. Huge market size
7. Competitive landscape: Defensibility, entry barriers
8. Capital needs
9. Clear sales & go-to-market strategy
10. Clear exit strategy
11. Sources of credibility & trust: known team-members, angels,
accelerators, …
12. Office location: US / Silicon Valley / SF
13. Visa issues: none

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…in the end supply and demand for investment opportunities
drive the valuation
Startupinvestment
opportunities
Angelinvestors
(Deals) experience and
points of reference for
valuation
Industry knowledge
Angel network
Supply Demand
What is the value of a startup?

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THE BAD NEWS: The supply is huge, no euro investments
Hundreds of accelerators, incubators
Tens of thousands of startups
Thousands of founder teams of ex-googlers, facebook,
NASA, tesler, Microsoft, EA, …

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THE GOOD NEWS: Funding follows Success
Use your time in the valley to work on your success:
• Think big – most probably your idea serves a too small market for
the valley (think 10x = 10 times as big)
• Success means product – market – fit
• Success means traction
• KPI’s
• Customers
• Revenues
• Users, Traffic, conversions
• You will need a rock star team, with rock star execution skills
• Build your network, you will need it later
• Fail well = fast, learn, there are valuable leftovers, keep on going
• Be open, the outcome might be different to what you think
• You might move & flip
• You might change your product, customers, business plan, team
• You might go back to Europe and even be more successful there

22. Come prepared

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Come prepared 1
1. Create a great linkedin presence (premium)
2. Create a great Angel.co presence
3. Create a great crunchbase presence
4. Choose a time of interesting industry events
5. Look for the right place to work (bay vs. SF, …)
6. Look out for interesting accelerator programs
7. Look out for experts, evangelists in your space, they might
become angels later
8. Meet competitors, connect with peers
9. Meet former employees of competitors and potential future
team members
10.Act as you always have been here for a long time
11.Bring a unlocked phone, multiple credit cards (or check)
12.Bring English business cards, pitch deck, train the pitch

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Come prepared 2
13.Watch silicon valley show:
http://www.hbo.com/silicon-valley#/
14.Start-up Class from Y Combinator Sam Altman in
Stanford: http://startupclass.samaltman.com/
15.Reading Advice: http://www.amazon.com/Zero-
One-Notes-Startups-Future/dp/0804139296
16.Start to read techcrunch frequently
17.Watch great company pitches on youtube, i.e.
TechCrunch Disrupt
18.Learn about growth hacking: #500Distro
https://www.youtube.com/user/500startups
19.Look for the right meetups (www.meetup.com)
20.Sign up for newsletter: http://www.aicsv.at/
21.Go Silicon Valley - Austrian Pavilion Group

25. See you soon, in the valley!

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