Building Eastern European Champions

Philippe Botteri, Accel Partners @pbotteri

IDCEE Conference, October 18th 2012, Kiev

Uncertain times

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Technology: the Silver Lining?

My background: from Europe to Silicon Valley… and back!

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1998-2006 Paris – Silicon Valley

2006-2011 Silicon Valley

Since 2011 London

We mean “Global” Track record of 225+ exits

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•  Founded in 1983

•  $9 billion in capital under management

•  Stage agnostic

•  Over 500 companies -  100+ public offerings -  125+ mergers or sales

•  Added-value partner

Key trends we are betting on

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Big Data & Cloud Computing

Gaming

Mobile

Social

Next Generation ecommerce & marketplaces

Emerging Geographies

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“Runet” Now Largest Internet Market in Europe and Most Underpenetrated

37%

62% 69%

61%

40% 32%

48% 47%

72%

64%

0%

20%

40%

60%

80%

100%

0

20

40

60

80

Bro

adba

nd P

enet

ratio

n

Mill

ion

Use

rs

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Strong Macro Trends in the Region

•  400m+ people in the region •  GDP of $3T+ with most countries growing 2-5%+ •  15m Online Shoppers and $11B ecommerce in Russia alone

(expected to reach $19B by 2015) •  1.7 mobile phone per person in Top 4 EE countries (vs. 1.2 in GE, 1.3 in Brazil and 0.8 in India and China)

•  Exceptional talent pool

Today’s Champions

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Home Champions •  Large domestic market

•  Category leadership

•  Mostly Internet & eCommerce

Global Champions •  Addressing global market

•  Unique IP •  Strong sales & marketing

•  Software & Security, Gaming, Mobile

Tomorrow’s Global EE Champions: Big Data

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247B emails are sent every day

$600 to buy a disk drive that can store all of the world’s music

30B pieces of content shared on Facebook every month

40% projected growth in global data generated

15 out of 17 sectors in the United States have more data stored per company than the US Library of Congress

By 2020, the production of data will be 44 times what we produced in 2009

The Accel 4 “V” of Big Data

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Volume Rising amount from mobile, machines, social media web logs… Velocity Need for real time results requiring data updated at faster and faster rates Variety Analyzing structured and unstructured data Value Business intelligence to drives insights beyond data scientists

Opportunities •  Storage •  Data Management

•  Platforms •  Analysis/BI

•  Business applications

Tomorrow’s Global EE Champions: Cloud Computing

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New Devices (Tablet, Phones)

Private/ Hybrid Cloud Big Data

Virtualization (desktop, server)

Consumerization

1,000,000

100,000

10,000

1,000

100

1 0

1M+ Units

10M+ Units

100M+ Units

1B+ Units

10B+ Units?

1

Volu

me

1960

1970

1990

1980

2000

2010

2020

Mainframe

Minicomputer

PC

Desktop Internet

Mobile Internet

Smartphones Tablets Car electronics Mobile gaming console Ebooks ….

Evolution of computing platforms since 1960

Processing Power

Integration

Connectivity

Ubiquity

Source: ITU, Morgan Stanley Research

Tomorrow’s Global EE Champions: Mobile

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Disrupting billion dollar industries

Transportation •  Cab booking •  Ride sharing •  …

Travel •  Mobile

bookings •  Content, guides •  ….

Shopping/ eCommerce •  Loyalty programs •  Next generation

couponing •  …

Education •  Online courses •  Test prep. •  …

SMBs •  Credit card payment •  POS solutions •  Collaboration •  …

Mobile computing

Gaming •  MMOs •  Casual games

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Thank you!

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Slides available on my blog: www.cracking-the-code.blogspot.com

Follow me on Twitter @pbotteri

Disclaimer

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This document has been prepared by Accel Partners Management LLP (hereinafter Accel). Accel is a limited liability partnership incorporated in England and Wales with registered number OC303424, having its registered office at 16 St James’s Street, London, SW1A 1ER. Accel is authorised and regulated by the Financial Services Authority (the "FSA") and is entered on the FSA register with registration number 222503. This document is provided for information purposes only and does not constitute an offer or a recommendation to purchase or sell any security or service. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful. This document forms part of a presentation to persons who have been invited to attend such presentation and must be read and considered in the context of that presentation only. This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investment in financial products. Before entering into any transaction, an investor should consider carefully the suitability of a transaction to his/her particular circumstances and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences. This document is the property of Accel and is addressed to its recipient exclusively for their personal use. It may not be reproduced (in whole or in part), transmitted, modified, or used for any other purpose without the prior written permission of Accel.