Draper Esprit plc Annual Investor Day ... Draper Esprit plc Annual CEO Day 5 Draper Esprit plc is a

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  • Draper Esprit plc Annual Investor Day What’s next?

    March 2019

  • Agenda

    9.30 Welcome and Update Simon Cook, Draper Esprit

    10.00 Nigel Toon Graphcore

    10.15 Taavet Hinrikus Transferwise

    10.30 Hendrik Brandis Earlybird

    11.00 Break

    11.30 Eric Larchevěque Ledger

    11.45 Saurav Chopra Perkbox

    12.00 Olivier Pailhès Aircall

    12.15 Armando Gonzalez Ravenpack

    12.30 David Vauthrin Finalcad

    12.45 Erik Fairbairn PodPoint

  • Agenda

    1.00 Lunch

    1.45 Jim Al-Khalili

    2.15 Andrew Lynn Fluidic Analytics

    2.30 Tim Brears Evonetix

    2.45 Michael Mueller Form3

    3.00 Craig Beddis Hadean

    3.15 Peter Muhlmann Trustpilot

    3.30 Break

    4:00 Seed Funds Panel Jonathan Sibilia - Draper Esprit Sofia Hmich - Future Positive Capital Kerry Baldwin - IQ Capital Fred Destin - Stride VC Lasse Lehtinen - Icebreaker Reshma Sohoni - Seedcamp

    4.30 Tim Draper Draper Venture Network

    5.00 Drinks

  • 5Draper Esprit plc Annual CEO Day

    Draper Esprit plc is a European Venture Capital Company. Long-term, globally networked capital for entrepreneurs.

    Open to all investors through an evergreen listed vehicle and associated co-investment funds.

    Venture Capital, Re-Invented

  • What’s next? Simon Cook, CEO

    6Draper Esprit plc Annual CEO Day

  • 7Draper Esprit plc Annual CEO Day

  • 8Draper Esprit plc Annual CEO Day

    Is technology done?

    Source: Bloomberg Source: Bloomberg

  • 9Draper Esprit plc Annual CEO Day

    Value = profits x growth

    Global company creation

    ©2018 Andreessen Horowitz. Page 34 Source: Bloomberg, companies

    Average 40% growth

    T T M

    R e

    ve n

    u e

    g ro

    w th

    TTM Revenue ($bn)

    75%

    50%

    25%

    0%

    0 50 100 150 200 250 300

    Alibaba

    Tencent

    Google

    Amazon

    Apple

    Bubble size = users

    Facebook

    Baidu Netflix

  • 10Draper Esprit plc Annual CEO Day

    Peak Smartphone? Peak Internet advertising?

    Is it the end?

    ©2018 Andreessen Horowitz. Page 2 Source: Apple, Google, a16z, TMW, ITU, World Bank

    Global adult penetration

    1995 2000 2005 2010 2015

    75%

    50%

    25%

    0%

    100%

    Internet

    Smartphones

    200

    100

    50

    0

    250

    150

    Source: Zenith©2018 Andreessen Horowitz. Page 13

    Global advertising, 2018 dollars ($bn)

    1985 2000 2005 2010 20151990 1995

    Internet

    Print

    TV

    All other

    Global advertising, 2018 dollars ($bn)

    Digital advertising also looks big…

    ©2018 Andreessen Horowitz. Page 6 Source: BLS

    150

    100

    50

    0 Mar 99 Mar 02 Mar 05 Mar 08 Mar 11 Mar 14 Mar 17

    Ecommerce is big in dollar terms Quarterley US ecommerce revenue ($bn)

  • 11Draper Esprit plc Annual CEO Day

    Most spending not yet online

    What’s the opportunity?

    ©2018 Andreessen Horowitz. Page 38 Source: BLS, World Bank

    US ecommerce US retail Retail Global consumer spending

    50

    40

    20

    0

    30

    10

    $450bn Housing

    Transport

    Food

    Entertainment

    Household Clothes Health

    $40tr

    Market size, 2017 ($tr)

  • 12Draper Esprit plc Annual CEO Day

    All industries are going digital

    Source: S&P Global Market Intelligence, The State of European Tech, Atomico 2018

    Total market cap (SB)

    Bio & Pharma

    CPG

    Industry

    Mobility

    0 200 400 800 1,000 1,200 1,400

    Financial Services

    Food & Drink

    Retail

    Insurance

    Energy

    Materials

    600

    $1,270B

    $1,231B

    $1,150B

    $924B

    $893B

    $777B

    $734B

    $648B

    $608B

    $523B

  • 13Draper Esprit plc Annual CEO Day

    Only the start

    What have we really done so far?

    Next 20 years

    Everything else

    New problems will be tackling new markets & changing them more.

    First 20 years

    Ecommerce

    Advertising

  • 14Draper Esprit plc Annual CEO Day

    New kinds of solutions = opportunity

    More data Higher

    consumer expectations

    New platforms

    Machine learning + ++

    ©2018 Andreessen Horowitz.

  • 15Draper Esprit plc Annual CEO Day

    New platforms and machine learning will enable new possibilities

    Data source: OpenAI

    0.00001

    0.0001

    0.001

    0.01

    0.1

    1

    10

    100

    1000

    10000

    2012 2013 2014 2015 2016 2017 2018 2019

    P e

    ta fl

    o p

    s /s

    -d a

    y (T

    ra in

    in g

    )

    Year

    AlexNet to AlphaGo Zero: A 300,000x Increase in Compute

    AlexNet

    Dropnet

    Visualizing and Understanding Cony Nets

    DQN

    VGG

    Seq2Seq

    GoogleNet

    ResNets

    DeepSpeech2

    Xception TI7 Dota 1v1

    Neural Architecture Search

    Neural Machine Translation AlphaZero

    AlphaGo Zero

    New platforms built on:

    • Machine learning,

    • Presence computing (voice, visual, AR/VR),

    • Massive data, sensors, simulation

    • 5g connectivity/latency,

    • Decentralised platforms such as blockchain

    Our Deeptech/platform companies include:

  • 16

    Higher consumer expectations There’s a lot of money in money Global market size, 2017 ($tr)

    ©2018 Andreessen Horowitz. Page 77

    Retail banking Insurance

    Housing

    15

    0

    20

    30

    10

    25

    5

    Payments

    60%

    75%

    53%

    33%

    71%

    63%

    of millennials want startups firms to overhaul how banks work

    prefer financial services from Google, Amazon, PayPal, etc.

    say all banks are the same

    are ready to switch banks in the next 90 days

    would rather go to the dentist than listen to a bank’s message

    don’t have a credit card

    EG: Financial services is ripe for change

    Source: TIME 2014

    Our Fintech companies include:

    Top 70 banks in world avg value $90bn each

  • 0

    500

    1000

    1500

    2000

    2500

    3000

    2013 2014 2015 2016 2017 2018 2019 2020

    Ex ab

    yt es

    (E B

    )

    Growth in Healthcare Data

    17Draper Esprit plc Annual CEO Day

    EG: Healthcare patients are increasingly empowered by their own data

    More data

    Data source: Accenture 2018

    Drug discovery is only the start Annual spending, 2017 ($tr)

    4

    0

    6

    8

    3

    ©2018 Andreessen Horowitz. Page 83

    Drug market Global health insurance

    US healthcareDrug discovery

    $75bn

    Global healthcare

    $7.2tr

    Our Digital Health and Wellness companies inc:

  • 18Draper Esprit plc Annual CEO Day

    As VCs, our job is to ask what can go right?

    Total Bluetooth Device Shipments

    numbers in billions

    2 .4

    2013

    2 .7

    2014

    3 .0

    2015

    3 .2

    2016

    3 .6

    2017

    3 .9

    2018

    4 .2

    2019

    4 .6

    2020

    4 .9

    2021

    5 .2

    2022

    Data Source: Bluetooth Association

  • 19Draper Esprit plc Annual CEO Day

    We ask: what can go right?

    Millions of reviews Revenues $m

    300

    0

    400

    500

    200

    600

    10

    2016

    500

    2015

    350

    2014

    170

    2013

    100

    2012

    70

    2011

    50

    2010

    40

    2009

    30

    2008

    20

    2007

    10

    2006

    5

    200520042003

    2.90.70.2

    300

    0

    400

    500

    200

    600

    10

    20162015201420132012201120102009200820072006200520042003

    600

    200

    Draper Esprit Analysis Draper Esprit Analysis

  • 20Draper Esprit plc Annual CEO Day

    We ask: what can go right?

    New plug-in passenger car registrations in Norway

    ©2018 Andreessen Horowitz. Page 64

    Q3 2018 US car sales (000)

    Tesla eat cars?

    50

    0

    75

    100

    25

    Lexus Mercedes AudiTesla LincolnBMW

    Data Source: 2018 Inside EVs

  • 21Draper Esprit plc Annual CEO Day

    BUT:

    The next wave of technology is so powerful it can not be simply rolled out without all of us considering the impact on wider society.

    The technology industry needs to be more inclusive, more closely involved with regulators, all parts of society.

    We need to all think of what can go right, and what could go wrong.

  • Where is European Venture Capital?

    22Draper Esprit plc Annual CEO Day

  • 23Draper Esprit plc Annual CEO Day

    Europe lags behind the US and China for total amount raised in