Eleven Capital Ad · BSESOF:11C
Eleven Capital Ad — IPO Roadshow (February 2020)
42 slides from Eleven Capital Ad's IPO roadshow presentation, Feb 20, 2020
Slide 1: Information for Investors
Information for Investors February 2020
Slide 2: Investment highlights
Investment highlights ๏ Eleven is one of the pioneers in early-stage investments in Eastern Europe, comprising a team of entrepreneurs and investment professionals passionate about the world of technology and innovation Eleven focuses on ๏ The Eleven team started as a pre-seed fund in 2012, with a r
Slide 3: Table of contents
Table of contents Introducing Eleven Capital 4 Dronamics 23 Company overview 5-6 Enhancv 24 Evolution and milestones 7 Escreo 25 Portfolio company overview 8-10 mBrainTrain 26 Investment team 11 Sensika 27 Explosive tech sector growth, fueled by VC investments 12 Strawberry Energy 28 Global VC indus
Slide 4: Table of contents
Table of contents • Introducing Eleven Capital • Explosive tech sector growth, fueled by VC investments • Key 11 investments from an outstanding portfolio • IPO: Next chapter of the Eleven story 4
Slide 5: Eleven focuses on entrepreneurs from South Eastern Europe
Eleven focuses on entrepreneurs from South Eastern Europe Pioneer in early stage investing Our mission is encoded in our name We help local heroes build global success We are a Bulgarian VC with focus on In physics, escape velocity - approximately We deeply believe that the day of entrepreneurs from
Slide 6: Key differentiator: our strong support infrastructure
Key differentiator: our strong support infrastructure Strategic and operational Market Access Design Thinking Studio support Working side by side with our We provide our founders with Turning a vision into strategy network of founders and the best product, strategy and means connecting thousands of
Slide 7: Our evolution: from an accelerator to a scale-up machine
Our evolution: from an accelerator to a scale-up machine Eleven “Fund 0” Eleven Capital 2012 Launch & Acceleration 2016 Development 2020 Scale-up ๏ The Eleven team's first fund, started ๏ Portfolio companies matured from ๏ Eleven Capital acquires the best with financing from the European startups in
Slide 8: Portfolio snapshot - 34 core companies
Portfolio snapshot - 34 core companies 34 Core Companies Services 35% TEUR 13,668 3 B2C 2019 Aggregate SaaS B2C Software Revenues 10 5 TEUR 250 Max investment size Markeplace 13.5% 5 65% Average ownership as Commerce B2B at 30/09/2019 5 B2B Hardware 6 TEUR 16,931 Co-investments Source: Company data,
Slide 9: Portfolio snapshot - 11 key investments
Portfolio snapshot - 11 key investments Business Insight Software Global IT training marketplace Next Generation Resume Builder Kanban Project Management Software White Board Paint Cargo Drones #1 taxi App in Bulgaria Predictive Data Analytics Smart City Technology Editorial Content Analytics Mobile
Slide 10: 11 key companies have grown fast in recent years
11 key companies have grown fast in recent years TEUR 1,681 The 11 key companies’ revenue share has grown… …and growth in absolute terms has been even faster Original investment by Eleven Numbers in TEUR 11 Key Investments Other EBITDA Revenue 3x 4x TEUR 1,681 29% Book value at 30/09/2019 38% TEUR 9
Slide 11: An experienced team, geared for success
An experienced team, geared for success Strong combination of investment and entrepreneurial skills ๏ Founder and managing partner at Eleven ๏ One of the most recognizable and respected ๏ Involved in startups since 2000 as investor and a entrepreneurs in the Bulgarian IT and startup founder in diver
Slide 12: Table of contents
Table of contents • Introducing Eleven Capital • Explosive tech sector growth, fueled by VC investments • Key investments from an outstanding portfolio • IPO: Next chapter of the Eleven story 12
Slide 13: Venture capital in 2019: more capital, higher valuations, bigger exits
Venture capital in 2019: more capital, higher valuations … bigger exits More VC capital Higher valuations Bigger exits 254 58 300 Pre-Money Valuation Increase 157 ($ million) 112 78 20 19 55 70 7 6 3 2010 2012 2014 2016 2018 Seed Series A Series B Global VC exit proceeds ($ bn) Capital Invested ($ b
Slide 14: Europe follows suit
Europe follows suit 2019 was a record year for VC-backed deals in Europe Higher valuations and bigger exits 5826 5879 5929 Total Value of VC exits (in EUR billion) Deal Value (EUR bn) 5807 5504 Deal count 5017 4520 3481 2852 2304 32,4 105 1689 24,3 21,3 70 17,9 17 40 48 42 8,6 9 11,4 4,5 7,2 7,4 17
Slide 15: Europe produced more than 100 unicorns
Europe produced more than 100 unicorns… 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Atomico 15
Slide 16: Bulgaria keeps a strong pace with Europe
Bulgaria keeps a strong pace with Europe More venture capital Bigger IT / tech ecosystem + 190% 210 215 219 200 3,9 138 3,1 2,5 1,9 2,2 73 77 1,3 1,5 57 74 75 9 19 2013 2014 2015 2016 2017 2018 (1) 2013 2014 2015 2016 2017 2018 2019 VC financing (EUR mln) # Companies Revenue (BGN billion) ๏ The cumu
Slide 17: Spike in VC backed tech exits and larger Series A rounds
Spike in VC backed tech exits and larger Series A rounds in recent years Revenue Multiples Acquired for Industry BG Startup undisclosed sum Average (1) Exits (2) 10.0 SMSBump Raised $3m Acquired for $262m Majority stake for Acquired for €10m (Total: $4.2m) undisclosed amount 8.0 BGMenu 2014 2015 201
Slide 18: Table of contents
Table of contents • Executive Summary • Explosive tech sector growth, fueled by VC investments • Top 11 key investments from an outstanding portfolio • IPO: Next chapter of the Eleven story 18
Slide 19: A4Everyone: predictive data analytics
A4Everyone: predictive data analytics A4Everyone is an open SaaS ecosystem for proprietary and third-party advanced analytical Revenues (TEUR) 203 solutions, tailored and affordable to small and medium businesses. Retailers and non-banking EBITDA (TEUR) Description 130 financial institutions are som
Slide 20: Businessmap: global leader in kanban project management
Businessmap: global leader in kanban project management Kanbanize (a Businessmap brand) is a workflow tracking tool, based on the KANBAN methodology. Description It presents a rare combination of flexible Kanban boards, amazing collaboration features, powerful Revenues (TEUR) 1 643 analytics and run
Slide 21: Content Insights: big data editorial analytics
Content Insights: big data editorial analytics Revenues (TEUR) EBITDA (TEUR) Content Insights is the editorial analytics package created by editors, for editors. The Company Description is a multi-sided web analytics platform for data-driven evaluation, ranking and comparing of 265 315 authors & con
Slide 22: Coursedot: global IT training marketplace
Coursedot: global IT training marketplace 1 227 Coursedot is a global IT training marketplace where professionals and their managers find and book Revenues (TEUR) Description courses or IT instructors at the right time, location, and price – without hassle. EBITDA (TEUR) 620 Vertical market Future o
Slide 23: Dronamics: transforming air cargo
Dronamics: transforming air cargo Dronamics is developing a new type of cargo airplane – small, unmanned and extremely fuel Intensive R&D Phase efficient. It can transport 350kg over 2,500km for a 50%+ cost lower than other airplanes. It flies Description autonomously, can be monitored and managed r
Slide 24: Enhancv: leading resume builder
Enhancv: leading resume builder Enhancv is a SaaS that enables young and talented people to jump-start their career by presenting 2 387 Description themselves in the best possible way. The company helps the creation of compelling eye-catching Revenues (TEUR) resumes that grab employers’ attention an
Slide 25: Escreo: white board paints for creative people
Escreo: white board paints for creative people Escreo is a dry-erase paint which transforms interior spaces such as walls and furniture into 569 Revenues (TEUR) Description grounds for writing, drawing and co-sharing of ideas. The solution is perfect for offices, educational EBITDA (TEUR) institutio
Slide 26: mBrainTrain: fully mobile EEG devices
mBrainTrain: fully mobile EEG devices mBrainTrain develops wearable devices (“hearables”) for reading electrical brain activity. Not long Revenues (TEUR) 524 ago, brain activity recording in natural environments was impossible with traditional equipment. Description EBITDA (TEUR) mBrainTrain brings
Slide 27: Sensika: emerging leader in business insights
Sensika: emerging leader in business insights A cloud-based software that independently crawls information from millions of web sources, the major 1 909 social networks and premium content providers, while a multiple-algorithm processing is extracting Revenues (TEUR) Description and enriching inform
Slide 28: Strawberry Energy: making cities smarter
Strawberry Energy: making cities smarter Strawberry Energy develops green and smart urban devices to provide people with charging, connectivity and local information in public spaces. By bringing IoT to outdoor public spaces to Revenues (TEUR) EBITDA (TEUR) Description hundreds of thousands of users
Slide 29: TaxiMe: the #1 taxi app in Bulgaria
TaxiMe: the #1 taxi app in Bulgaria 523 Description TaxiMe is a ride haling mobile app that works with pre-selected licensed drivers. Revenues (TEUR) EBITDA (TEUR) 441 Business model 228 228 Vertical market Transportation Marketplace Product B2C B2B Geography Bulgaria Europe USA Global 54 78 17 Team
Slide 30: Table of contents
Table of contents • Executive Summary • Explosive tech sector growth, fueled by VC investments • Key investments from an outstanding portfolio • IPO: Next chapter of the Eleven story 30
Slide 31: The IPO rationale
The IPO rationale Benefits for Eleven and the startup ecosystem Benefits for investors Ensure follow-on funding capital Test the public market and its Provide liquidity to investors and Priced conservatively compared to for some portfolio companies in appetite for such an asset class for exposure to
Slide 32: Case study: Draper Esprit
Case study: Draper Esprit Draper Esprit share price (period close, £) ๏ Draper Esprit is one of Europe's largest and most active tech-focused venture capital firms with offices in London, Cambridge and Dublin 6,00 ๏ The company was founded in 2006 as Esprit Capital, renaming itself Draper Esprit in
Slide 33: How does the financial mechanics of Eleven Capital work?
How does the financial “mechanics” of Eleven Capital work? 1 Cash in Time 2 Revenue 3 Exit value Gross IPO Gross profit Net profit Profit Oper. Book value Expenses Follow-on Investments Other Expenses Cash out Operating Expenses Expense The gross profit from all transactions the operating expenses I
Slide 34: Public offering – details and schedule
Public offering – details and schedule Issuer Eleven Capital AD Start of subscription March 4, 2020 Placement Initial Public Offering of Newly Issued Shares End of subscription March 17, 2020 Existing Shares 1,999,264 ordinary shares Allocation March 19, 2020 New Shares Up to 500,000 Payment of new
Slide 35: Public offering – shareholder commitments
Public offering – shareholder commitments Eleven Bulgaria OOD (Founder, Member of Board of Directors, and Owner of 10% of the shares) will not sell their shares for 3 years after the IPO. Lock-up Karoll Standard EOOD, Member of Karoll Financial Group, (Owner of 8.99% of the shares) will not sell the
Slide 36: Public offering – how to invest
Public offering – how to invest Agreement Refer to your brokerage company or the IPO manager Karoll Fund your account Transfer funds to your brokerage account Place an order Market or limit Allocation Confirmation by the broker Trading Approximately one month after the IPO 36
Slide 37: Glossary of Terms (1/3)
Glossary of Terms (1/3) Allocation The process of distributing shares to investors who have subscribed to the IPO B2B Business to Business - a form of transaction between businesses, rather than between a company and individual consumers Business-to-consumer - refers to the process of selling produc
Slide 38: Glossary of Terms (2/3)
Glossary of Terms (2/3) EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization - the profit a company makes before deducting interest, taxes, depreciation and amortization Exit value The value at which the portfolio company is sold Gross profit The profit a company makes after deducti
Slide 39: Glossary of Terms (3/3)
Glossary of Terms (3/3) Revenue multiple The ratio of the valuation of the company to its revenues SaaS Software as a Service - a software licensing model in which access to the software is provided on a subscription basis Scale up A startup that has validated its business model hypothesis, solved a
Slide 40: Important Legal Notice (1/2)
Important Legal Notice (1/2) This presentation represents an advertisement and has been prepared by Eleven Capital AD (the “Company”) and Karoll AD (“Karoll”) to provide general background information on the Company, its activities and its portfolio of companies as at the date hereof. The informatio
Slide 41: Important Legal Notice (2/2)
Important Legal Notice (2/2) None of the Company, its advisers (incl. Karoll), related parties or any other person accepts any liability for any actions or omissions whatsoever which may result in any loss howsoever arising, directly or indirectly, from this presentation or any of its contents. Unle
Slide 42: For further information
For further information Daniel Tomov m: +359 889 835 663 e: info@elevencapital.bg