Building visibility and attractiveness abroad

Innovation Norway, September 2

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Bruno

• Combination of executive/CEO role in tech with investment banking

• Founded, developed and sold a tech research business (Giga) in 1995. Sold to Forrester research in 2004

• Since 2004, have been advising European tech businesses in their corporate strategy: positioning, research analysts, Build or buy, financing, exit strategy, governance

• Currently, advisor to AGC partners and CEO of Gatewin my own company

• btourme@yahoo.com; skype: bruno.tourme

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My understanding

• All of you are Norwegian tech/innovative companies

• Software, mobile, big data, fintech, clean tech

• Presence mainly in Norway and starting to expand

• Up to a few m $/euros revenues

• All growing

• All interested in being more visible and known by the financial/strategic community

• Likely to be UK and North America as a priority

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What are the challenges?

• Majority of European small/mid size tech companies are not know by financial tech investors or strategic buyers especially North Americans but also In Asia and Europe

• When they decide to raise money or sell their business there is a very significant learning process in order to get them known by the market.

• Investors/buyers are much more comfortable doing business with a company they got to know over time.

• Also there is a need to adapt and deliver the right message to the community of investors: strategic or financial

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What are the challenges?

• The outcome is very often a very long process, consuming time, resources, energy and often processes that are not going through

• Estimate that 50% of European m&a/fundraising processes are not delivered

• Good news:

– a lot of cash available with financial tech investors and strategic buyers

– ready to invest/acquire assets in Europe

– It is a good period

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What to do?

• Identify the top 40/50 investors/strategic partners you want to be in contact with

• It is a ceo responsibility

• Build a continuous programme to visit/update them, ideally twice a year

• Quarterly update: financials, major wins, hirings etc etc..

• 1 or 2 road shows/year: London/US east coast

• Non deals meetings

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What to do?

• Have a very clear/concise message delivered. Differentiate from competition

• Be aware that top vendors and top tech investors receive hundreds/thousands of requests for meetings/calls

• Need to target the right guys: investors/strategic

• Need to have immediate impact

• Key USP

• Clear plan to grow

• Exit plan

• A very few companies are doing this in mainland Europe

• If you have not the time, hire an outside /flexible resource

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Your key targets • Tech investors:

– Through London you reach the majority of tech investors that may have interest in your business

– Majority of US investors have a London/European presence

– Also target selectively Boston, NYC and San Francisco

• Strategic investors:

– Majority are in US 70/80% – Rest in Asia/Europe

• Other partners:

– Joint ventures – Resellers, OEMs, VARs

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Typical targets

• Vc’s/growth equity: – accel, index, highland capital, dfj, kennet, Mangrove, nauta

capital, Insight, Battery – Need to have a partner involved

• Strategic: – google, facebook, apple, sap, oracle, cisco, Microsoft, Intel, trip

advisor, priceline – Head of corporate and head of relevant products/business units

• Corporate ventures – Cisco ventures, SAP ventures, Intel capital, Google ventures – Top 100 strategic buyers all have a corporate investment arm

separate from the company

• Family offices

• Business angels networks

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In all cases

• Will always be useful

• Will tremendously help you the day

– you raise money or

– sell your business

• Can also help you build strategic partnership/JV etc…

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Research tech analysts

• In the anglo saxon world, tech research guys have a real power as IT shops, marketers, executives use them for a better decision

• Gartner, Forrester, IDC, CEB, some local/verticals guys

• Magic quadrant; like it or not. Is the most used tool by any decision maker/investor in technology

• They can help you in various ways:

• Investors as they are using a lot those source of information

• Winning some businesses as decisions makers use them a lot

• Giving you some good advise regarding products/strategy

• Attend some of their tech conferences

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Research tech guys

• Put a programme in place to deal with those guys:

• Select the most appropriate research firm: software, digital media, mobile, electronics, communications etc..

• Someone in charge. again It’s a ceo thing. If you can’t, hire a flexible resource

• Quarterly briefing

• Keep them updated

• Sometimes you have to spend money

• Majority of European tech business are just not doing it

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What else in uk?

• Biggest place in Europe for VCs/tech investors

• Various categories of investors: then target/select smart

– Uk vs international

– Pes/buyout: mature companies

– VCs: start up

– Growth equity

– Debt/mezzanine

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What else in uk?

• Since 2008 crisis, more Difficult to find 1 to 3 m euros than 10 to 20 m euros

• Target also some selected funds in Europe: berlin, Luxemburg, Barcelona

• Target some selected investors in US, east coast. Need to be investors who already done investments in Europe

• Need to very carefully select your targets

• Attend and speak to either industry or banking conferences. Be selective as they are many of those.

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Q&A?

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