Presentation by Elaine Coughlan of Atlantic Bridge on planning for a successful exit in a VC backed company

1. Entrepreneurship Seminar
Planning a successful Exit
25th February 2015
© 2015 Atlantic Bridge

2. ELAINE COUGHLAN
2
CO FOUNDER ATLANTIC
BRIDGE CAPITAL
@COUGHLANELAINE
@ATLANTICBRIDGEV

3. Atlantic Bridge
Leading Technology Platform Applying “Bridge Model” to US and China
Who are We
– Entrepreneurs with Capital track record of scaling companies
– $7bn in 5 IPOs on NASDAQ as entrepreneurs
– 10 companies sold > $1bn in proceeds for investors
– Tech Growth Equity in Europe & US
– 4 Funds > $500M in Assets
– Set up 2004
What we do
– “Bridge Model” into US and China markets
– Focused on Disruptive Sectors of Big Data, Mobile, Cloud, SaaS & Core Tech
– Global Platform Accelerates the scaling up of European & US Companies
– Invest Series A and later
Performance
– Top performing Growth Equity Fund in Europe
– > 30 Companies invested in Ireland, Europe, US
© 2014 Atlantic Bridge 3

4. Global Platform applying a “Bridge Model” for scale-up
© 2015 Atlantic Bridge 4
Dublin London
Accelerate Scaling through Our Global Platform and Networks in US and China markets
Silicon Valley
China
Dublin LondonPalo Alto Beijing Hong KongSand Hill Road

5. >$1Bn in proceeds generated for investors and founders
December, 2007
has been
acquired by
May 2012
has been acquired
by
IPO on NASDAQ
Stock Exchange
Lead Underwriter:
April 2012 December 2012
has been
acquired by
December 2011
has been
acquired by
May 2011
has been
acquired by
April 2011
has been
acquired by
IPO on NASDAQ
Stock Exchange
Lead Underwriter:
May 2000
Atlantic Bridge Exit Track Record
5
Has been acquired
by
October 2014

6. VC Funds becoming more
focused on specific domains
Positive …..The Irish Investment VC/PE Sector is evolving well

7.  Corporates invest strategically to keep at front of innovation curve
 Gives a first look at new and emerging technologies and trends
 Spurs innovation internally
25% of all deals now involve a corporate Investor
Engaging early with corporate starts relationship
with a potential investors, partners, customer and acquirer
Corporate Venture Investment increasing
© 2014 Atlantic Bridge 7

8. M&A and IPO Increasing in Europe
• M&A is most likely exit
outcome
© 2015 Atlantic Bridge 8
Source: Dow Jones Venture Source

9. Outcomes are becoming bigger in Europe
• IPO • M&A
© 2015 Atlantic Bridge 9
Company Date Market Cap
Aug-14 $12.3Bn
Oct-14 $8.4Bn
Mar-14 $6Bn
Oct-;14 $6.7Bn
Apr ’14 $2.4Bn
Oct ’13 $2.3Bn
June-14 $1.57Bn
Oct ’12 $1.3Bn
May ’14 $910m
Mar ‘13 $884m
June-14 $171m
June-14 $135m
Company Date Acquirer Valuation
Oct ’13 $3Bn
Sept ’14 $2Bn
Feb ’14 $900m
Feb ’14 $800m
Mar ’14 $600m
Feb ‘14 $555m
Jan ’14 $527m
Jan ’14 $400m+
July ‘14 $215m
Oct ‘14 $150m
Sept ‘14 $493
July ‘14 $450

10. Europe is home to many global leaders and billion $ companies
© 2015 Atlantic Bridge 10
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
© 2014 Atlantic Bridge
European tech companies reaching USD
1bn valuations
•It Took 10 years for 3 companies to reach $1bn
•Europe has created 24 in last 4 years

11. Scaling up for Growth Mkt Share and Strong Exit
• Small business plan = small outcome
• Limited window + competition is intense
• First mover advantage in most industries
– Leads to Category leadership
• Having a value add investor can help:
– enter new mkts
– Expand the company
– Hire and attract the best talent
– Build Your board
– Win customers, have credibility and stability in capital structure
– Secure Bigger Exits
© 2014 Atlantic Bridge 11

12. IPO Window is Open but volatile
• High profile IPOs including Ali Baba
generating confidence
– Sucked some of the air out of IPO Mkt
• Strong and predictable revenue
stream very important
• Companies taking longer to go public
• Raising much larger rounds privately
first
– Uber 42bn, Airbnb, SnapChat 19bn
• Outcome of all this not yet know
– FOMO !!
© 2015 Atlantic Bridge 12

13. However Europe has less growth capital than the US
Taking on Capital influences Outcomes……
13
Source: VentureSource
• (Investment by Stage US vs. Europe, Q1 2008 to Q3 2014)
© 2015 Atlantic Bridge

14. Why Companies are acquired
• Strategic
• Customers
• Revenue
• Technology
• Staff
© 2015 Atlantic Bridge 14
Increasing value

15. M&A begins with establishing relationships
• BU Support critical
• Senior relationships
• Combined selling into corporate
base
• Securing corporate investor
• Strategic customer deals
• Displace large competitor from key
accounts
• Companies want to be confident of
smooth integration with company
– Trust critical
– People/Culture and integration risk
© 2015 Atlantic Bridge 15

16. Impediments to Successful M&A
• Important to have as few restrictions on M&A
as possible
– Right of first refusal and information rights can
derail an M&A process
– If must have….limit time as much as possible
• Make sure IP licensing is clean
– Can be used as bargaining chip over price
• Negotiate as much payment upfront
– Acquirer will want retention for key staff
– Ensure any earn outs are achievable and in your
control
© 2015 Atlantic Bridge 16

17. China is a €15Bn+ FDI Opportunity in Europe
© 2015 Atlantic Bridge 17

18. MAJOR TECH TREND: CHINA “GOES GLOBAL”
© 2014 WestSummit Capital – Private & Confidential
18
30-YEAR OPEN DOOR POLICY
FIRST TIER MARKET FOR
GLOBAL GOODS & SERVICES
EMERGENCE OF DOMESTIC
LEADERS WITH SCALE
HIGHLY COMPETITIVE DOMESTIC
MARKET
INTERNATIONAL EXPANSION IS

19. ROLE OF TECHNOLOGY IN GLOBALIZATION
© 2014 WestSummit Capital – Private & Confidential 19
DESIRE TO BUILD NEW COMPETITIVE
ADVANTAGES
HUNGRY FOR INNOVATION & NEW
TECHNOLOGIES IN WESTERN WORLD:
ACQUIRE OVERSEAS TALENT
ENTER WESTERN MARKETS
PARTNERSHIP, INVESTMENT, M&A

20. OVERSEAS INVESTMENT BY CHINESE COMPANIES
© 2014 WestSummit Capital – Private & Confidential 20

21. Exits, Realisations
© 2014 Atlantic Bridge 21

22. You have to Kiss a lot of Frogs
© 2014 Atlantic Bridge 22
To get A Prince 

23. Role Of Advisors
• Seek domain specific advisors
• Must have senior level relationships
• Ideal if you receive starting a process
• Can generate sufficient interest to
get competitive bidding
• Can be used as “bad cop” in
negotiations
– Important not to sour working
relationship for post acquisition world
• Important advisor incentivised
correctly to drive outcome you want
© 2015 Atlantic Bridge 23

24. Thank You!
For further information contact:
www.abven.com
+353 1 6034450
elaine@abven.com
© 2015 Atlantic Bridge