SEVENTURE VC CLUB16.07.2014

VC INVESTING:

Know about all the deals

EASY?

VC INVESTING:

Know about all the deals

Pick the best ones

SUCCEFULLY VC INVESTMENT:

Know about all the deals

Pick the best ones

Make them grow

EASY?

SUCCEFULLY VC INVESTMENT:

Know about all the deals

Pick the best one

Make them grow

Sell them high!

EASY?

SUCCEFULLY VC INVESTMENT:

Know about all the deals

Pick the best ones

Make them grow

Sell them high!

Return your fund 2-3 times

BIG NEW FINANCINGDate Company Investor Funding round Description

10.07.2014 Mediakraft Shortcut VenturesCapnamic Ventures

Iris Capital

€16.5M / Series B Online TV network

24.06.2014 Kreditech Point Nine CapitalBlumberg Capital

Värde Partners

€30M / Series B Customer credit scoring

18.06.2014 HelloFresh Insight Venture PartnersPhenomen Ventures

€37M / Series D Subscription based food delivery

13.01.2014 Delivery Hero Insight Venture PartnersGerman Startups Group

€65M / Series E Online food ordering platform

25.01.2014 Soundcloud Institutional Venture PartnersThe Chernin Group

€44M / Series D Online audio distribution platform

04.02.2014 Foodpanda KinnevikPhenomen Ventures

€15M / Series C Online food ordering platform

03.04.2014 Westwing Fidelity InvestmentsOdey Asset Management

Tengelmann Ventures

€72M Online home design shopping club

09.05.2014 Windeln.de DB Private EqutiyDN Capital

Acton Capital Partners

€15M Online shop for baby products

12.06.2014 Webtrekk German Private EquityVenture Capital Association

€25M Web analytics software

WHAT DEALS ARE REQUIRED FOR THIS…

WHAT IS THE WINNING STRATEGY ?

The Silicon Valley approach

1-2 winners (10-30x)3-4 cash cows (2-4x)4-5 baggers (0-0,5x)

MAY WAYS MAY BE SUCCESSFUL

WHAT IS THE WINNING STRATEGY ?

The Silicon Valley approach

Multi billion $ marketScalable business model(revenue €100m plus)Ground breaking technology/ideaExit in 5-7 years

MARKET SIZE STATISTIC IN 2012

» 41 500 fund raising projects» 189 investments in VC (€ 520 m)» Around 50% of investments stem from foreign funds with

at least one office in Germany» 71% of funded companies generates < € 10 m revenue

GERMANY HAS BECOME A TOP DESTINATION FOR M&A

RECENT EXITS IN GERMANY 2013/2014

Date Company Acquiring Company

Investors Valuation Description

01.05.2014 TeamViewer Permira Insight Venture Partners €1,100M* Collaboration software

3.12.2013 Trivago Expedia Tiburon, Insight Venture €704 Hotel portal

10.04.2014 Lieferando Takeaway.com KfW, DuMOnt Venture, Rheingau Founders, Mountain Super Angel

€103M Online food ordering

18.12.2013 Klarna Sofortüberweisung n/a €108M Online payment solutions

16.09.2013 Tirendo Delticom Project A Ventures, SevenVentures, Jahr

€50M Online tyre dealer

03.12.2013 Retailo Blackhawk Network Seventure Partners, Wellington Partners, HTGF, Endeavour Vision

€50M* Gift card solutions

31.01.2014 Skobbler Telenav n/a €23.8M Mobile navigation app

07.01.2014 Plista Group M HTGF, DuMont Venture, Credit Agricole Private Equity

€30M* Targeted digital advertising

08.01.2013 Xing Kununu n/a €9.4M Employer reviews platform

14.03.2014 ZooRoyal Rewe DuMont Venture, KfW, Grohs und Heuser

undisclosed Online pet shop

03.04.2014 Sociomantic Dunnhumby (Tesco) - undisclosed Real-Time Bidding advertising system

MAY WAYS MAY BE SUCCESSFUL

WHAT IS THE WINNING STRATEGY ?

Maybe other approaches work?

• Technology vs. Business Model (Risk assessment)?

• Seed vs. mid vs. Late?

• Reference to PE Funds?

THIS IS OUR WINNING STRATEGY !

Stick to what you know

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

Take NO risk!

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

Take NO risk! NO team risk

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

Take NO risk! NO team risk NO market risk (size and existence!)

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

Take NO risk! NO team risk NO market risk (size and existence!) NO technology risk

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

Take NO risk! NO team risk NO market risk (size and existence!) NO technology risk

Find the category leader (national or international)

THIS IS OUR WINNING STRATEGY !

Stick to what you know

Choose the right stage (risk/reward)

Take NO risk! NO team risk NO market risk (size and existence!) NO technology risk

Find the category leader (national or international) Make sure that ALL the KPIs tell you that his can scale!

EARLY & MID STAGE PROVIDES FOR BEST RISK RETURN RATIO

INVESTING AT THE RIGHT STAGE

Seed Early & Mid Stage Growth Capital

Turn Over €0-500k €0,5-5m €5-10m

Technology Not proven Proven Proven

Market Risk High Low Low

Pre-Valuation €1-3m €4-10m €10+

Risk of Negative Returns 80% 30% 20%

Expected Exit Return > 10x 3-10x 2-3x

Holding Period 8-15 years 4-8 years 3-4 years

Our investm

entsSizable market andbarrier to Entry

> 1m in RevenueProfitable growth

LEADING INTERNET AND SAAS BUSINESS MODEL EXPERTISE

SEVENTURE INVESTMENT FOCUS

Looking for Category Leaders:

Strong focus on underlying key performance indicators:

First mover withproven business model

SaaSInternet b to b

Innovative Services

High scalability

A high customer recurrence

A RETURN OF 4X WITH AN IRR OF 140% WAS REALIZED

SHOWCASE:

Tradoria…» is a B2B shop solution for small and mid size retailers » added more than 3000 retailers to platform and tripled in revenue during investment holding period» was introduced to us by Du Mont

Seventure…» invested in December 2009» introduced Tradoria to Rakuten» managed the entire M&A process » sold to Rakuten in June 2011 (after 18 months)

THANK YOU

ContactTel: +49 89 87 80 68 6-14 Fax: +49 89 87 80 68 6 99 Mobil: +49 172 81 24 673Mail: wolfgang.krause@seventure-vc.comInternet: www.seventure.de

Seventure Partners Maximilianstraβe 36 80539 München Germany Munich Pacific Development GmbHAmtsgericht München, Germany Geschäftsführer: Dr. Wolfgang Krause, VAT ID: DE213507781, HR 136141