1. European Innovation & Entrepreneurship 2014-03-03
Venture Capital in Europe's Nordic Region
Stanford Engineering
Follow us at:
@mshauge
@creandum

2. Sweden
Stockholm

3. About Me: A true Scandinavian Entrepreneur; a Norwegian citizen living in Stockholm after 10
years in Denmark
•
10 years as General Partner in Creandum
•
•
In charge of multiple Creandum exits:
•
Currently in charge of investments in
Jays AB (IPO on First North)
•
Appear TV (www.appeartv.com)
•
Iptronics (Acquired by Mellanox)
•
Vivino (www.vivino.com)
•
Nanoradio (Acquired by Samsung)
•
Autobutler (www.autobutler.com)
•
Fitbay (www.fitbay.com)
•
Former entrepreneur co-founder of multiple
Nordic startups like
•
•
•
Creuna A/S (www.creuna.com)
Interaction Design AS (exited 1999 to Adcore AB)
15+ years CEO experience

4. AGENDA
THE MARKET NORDIC OPPORTUNITIES
CREANDUM OVERVIEW AND OUR MODEL
THE NORDIC ECOSYSTEM

5. MetroPCS
Yandex
IPO: 6.7 BUSD
MA: 2.75 BUSD
IPO: 1 BUSD
1,000
Riverbed
Qliktech
MySQL
Nordic (4)
Rest of Europe (7)
Instagram
Endeca
Fortinet
Ocado
Netsuite
Rackspace Hosting
Yammer
Zappos
Sunpower
Nicira
Kayak
Yingli
EqualLogic
MoneySupermarket
First Solar
Infinera
Dangdang
YouTube
Fusion.io
Omniture
A123
Betfair
CTC Media
Tom-Tom
Skype
Pandora
TeleAtlas
Shanda
Suntech
Splunk
Youku.com
Exit Value (MUSD)
IndiaBulls
Palo Alto Networks
LDK Solar
Perfect World Co
Baidu
Qihoo 360 Tech
Giant Interactive
Iliad
QQ (Tencent)
Zynga
Focus Media
Renren
REC
Q-Cells
LinkedIn
10,000
Groupon
Alibaba
Facebook
Nordic tech firms represent significant portion of global BUSD exits
BUSD Technology Exits 2005-2012
US (26)
China (14)
Others (3)
100,000
100
• Nordic companies represented 7-8% of all global billion dollar technology exits
• In terms of MA exit value, the Nordics represented ~18% vs the US during ‘06-’08 but only 5%
of active VC firms and likely 1-2% of capital under mgmt
MA: 1 BUSD
Source: NVCA, EVCA, Thompson, Dow Jones, Creandum, Balderton
5

6. 42 tech exits 100 MEUR over a 10 year period
Exit Value
500
MEUR
250
MEUR
SendIt
100
MEUR
10 MEUR
50 MEUR
Median Exit Value: 242 MEUR
Average Exit Value: 483 MEUR
Sources: Creandum
Revenue

7. Creandum Exit Study: substantial and increasing Nordic tech exit market
Total Nordic exit value 1999-2010 (MEUR)
MEUR
7 000.0
6 000.0
5 000.0
4 000.0
3 000.0
2.6 BEUR
1.5 BEUR
2 000.0
1 000.0
0.0
1999
2000
2001
2002
2003
2004
Avg. annual exit value 1999-2004
2005
2006
2007
2008
2009
2010
Exit
year
Avg. annual exit value 2005-2010
• Average exit value per year (the last 12 years) is 2 BEUR
• Total exit market value: +70% between economic cycle in ’99-’04 and ’05-’10
• 17% of MA transactions IPOs represent 82% of total exit value
Sources: EVCA, Thompson, Dow Jones, Creandum
7

8. Currently 10 unexited Nordic BUSD companies*
Approximately one such company started per year
*Med Tech and Oil and Gas excluded

9. AGENDA
THE MARKET NORDIC OPPORTUNITIES
CREANDUM OVERVIEW AND OUR MODEL
THE NORDIC ECOSYSTEM

10. Creandum in short
Founded 2003
Only Tech VC with head quarter in Stockholm
Invest broadly in Nordic early stage Technology companies
Focus on seed and A-rounds (50/50)
Appr 0.1-2 MUSD in Seed, 2-5 MUSD in A-rounds and 5-10 MUSD in “late” A-rounds
Approximately 40 investments to date
Most recent fund 135 MEUR
One GP on the ground in the US/West Coast

11. Creandum´s investment strategy is made up by three key principles
Diversified
technology
portfolio
Focus on
homerun
potential
First
institutional
investor
• Better risk/return profile
• +10x potential
• Approximately 30 investments
(15, 10, 5; seed, early, late)
• VC returns driven by home runs
• Getting in first à superior
returns
• Focus on very large markets
rather than technology in itself
• Early investor (A round) à
greater ability to influence
• Entrepreneurs centric decisions
• Active investor à leverages the
team experience from building
fast growing companies
• Diversified across consumer,
software and hardware
industries (40%, 40%, 10-20%)
• Require new lead for A-round
when doing seed
11

12. Some of our investments

13. A diverse high-caliber team with broad, deep and relevant experiences
Staffan
Helgesson
Johan Brenner
Martin Hauge
Fredrik Cassel
Daniel
Blomquist
Joel
Enquist
Lasse Pilgaard
Erik Olofsson
Hjalmar
Winbladh
General Partner,
45
General Partner,
52
General Partner,
57
General Partner,
40
Principal, 40
Associate, 27
Associate, 26
Associate, 35
Venture
Partner, 45
New Hire
20+ years of
startup
activities
10+ years of VC
• 10 years at
McKinsey, IKEA
and PG
• BSc Lund
University
• Kauffman Fellow
• Ex Chairman
Nordic Venture
Network
10+ years of VC
• 5 years as
Balderton GP
• Serial
entrepreneur
• 12 years at ABB
and Kinnevik
• MBA SSE
Stockholm
10+ years of VC
• Co-founder of 7
companies
• 10+ years of
CEO experience
• MSc NTH-NTNU
Trondheim
• Stanford GSB
SEP
• NYU Stern
Stanford GSB SEP
Founded 20+ Tech companies
10+ years of VC
• 5 years of
internet
experience
across Europe
• MSc Royal
Institute of
Technology
• Kauffman Fellow
6 years of VC
• 7 years of
software startup
experience in
Europe, US
ME
• MSc Linköping
University
MBA SSE
Stockholm
• Kauffman Fellow
2 years of VCe
• EIR at Nebula
Ventures
• Advisor at U
Ventures
New Hire
• 3 years at
McKinsey Co
Copenhagen
• Technology
Strategy
Consultant
• Marketing
manager within
online gambling
affiliation
• MSc Chalmers
University
• Masters in
Economics
• 4 years at Bain
Co
• CEO and Cofounders of
Fakturino
(market place
for funding) and
Klipster (digital
coupon
booklet)
• Founder
Rebtel, Sendit,
Epidemic
Sound, Wrapp,
Pedal etc.
• Worldrenowned
startup advisor
• INSEAD
• M.S. at Havard
University
5 IPOs, 10+ MA Exits
4 realized €100M+ exits

14. AGENDA
THE MARKET NORDIC OPPORTUNITIES
CREANDUM OVERVIEW AND OUR MODEL
THE NORDIC ECOSYSTEM

15. The dinosaurs

16. Todays Nordic BUSD Companies
www.ubiindex.com

17. The entrepreneurial ecosystem
Tax, Legal
Public
Framework
VC’s
Angels
Government
Incubators/
Accelerators
Universities
Service
providers
ENTREPRENEURS
Community
Role
Models
Limited
Partners
Enterprises

18. Largest Nordic ecosystem issues
Limited
Partners
Tax, Legal
Public
Framework
•
•
•
•
•
•
•
•
•
•
Unclarity on key tax issues
Difficult to issue stock options
Marginal tax
Regulated housing market
Immigration legislation
State pension fund legislation
Enterprises
•
•
•
•
•
•
Lack of critical mass
Rules and regulations
Often short sighted
“Grass is greener on the other side” phenomena
“Not Invented here” attitude
Do not understand the power of ecosystems
Unwilling to take risk
“Jante” lag
Focus short term on profitability vs growth
Do not buy from or partner small companies

19. THANK YOU
European Innovation Entrepreneurship 2014-03-03
Stanford Engineering
Follow us at:
@mshauge
@creandum