Venture Capital 360 - Keynote Nikolas Samios / COOPERATIVA @BMWi 28.03.2017

© COOPERATIVA Venture Services GmbH, Berlin, München – http://www.cooperativa.vc
© COOPERATIVA
Venture Capital 360
Status Quo, Challenges & Chances
for Founders, Corporates and Investors in Germany
Nikolas Samios
BMWi / 28.03.17

© COOPERATIVA
Nikolas Samios
Twitter: @BerlinVC, Email: nikolas@cooperativa.vc
§ Nikolas Samios is Founder and Managing Partner of the COOPERATIVA Venture
Group
§ Supports founders, investors, corporates, and family offices in implementing
entrepreneurial projects and setting up and managing (corporate) venture
capital firms
§ More than 200 venture transactions – ranging from seed round to IPO
§ Chief Investment Officer of the listed venture capital investor German Startups
Group (portfolio includes Delivery Hero, SoundCloud, Mister Spex, Scalable
Capital, Fiagon, Friendsurance and many more)
§ Holds series of lectures called “Venture Capital Master Class”
§ Writes book with working title “Deal Terms”
Member of:
Selected customers, investments & exits:
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PART 1:
Disrupt yourself or get disrupted
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§ >3B Internet Users
§ 42% Penetration
§ Y/Y 9% growth steady
4
Internet everywhere !(?)
Source: KPCB Internet Trends 2016

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Source: Mobile Ate the World, a16z
Apple, Google, Gartner
Mobile is eating the world

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The next J-curve? E-Mobility penetration
Source: Zentrum für Sonnenenergie- und
Wasserstoff-Forschung Baden-Württemberg (ZSW)

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The flipside
© angelo Yap / CC BY 2.0

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8Source: Ross Dawson (2010)

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9
Thank you for the music
Source: the current
RIAA
Nielsen SoundScan

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„Yeah, the media guys have really screwed up...
(those Muppets!)“

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Sectors in Germany based on € invested in 2016 and 2015
Source: Start-up Barometer Deutschland, EY
1111

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“No Startup will just go to
BaFin and get a full
banking license...“
German bank executive
around 2014

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The other day at Corporate Germany:
„But we are a REAL industry,
what could happen to us?“

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0%
20%
40%
60%
80%
100%
In 2014,
the Top 5
US Tech
companies
became
more
valuable
than the
entire
DAX30.
Source: own research
Market Cap of Top 5 US Tech Companies vs. DAX30
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16
The impacts come closer…

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17
…and closer
Vehicle sales statistics
for Switzerland 2016

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18
PART II:
VC is the fuel

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19
Global VC financing on high levels

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20
European long-term dynamic not so bad either
§ EU = 23% of US funding
§ EU = 39% of US deals
§ EU = 13% of worldwide
funding

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Venture financing in Germany
§ Germany = 19% of
European funding
§ Germany = 11% of
European deals
§ Germany = 3% of US
funding
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Venture financing in Berlin
§ Berlin = 53% of German
funding
§ Germany = 48% of
German deals
§ Germany = 6% of
European funding
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Source: $1B+ Market Map, CB Insights
183 Global Unicorns, 16 in EU (as of Jan 2017)
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Venture capital is economic rocket fuel:
An increase in VC investments of 1‰ of
GDP is statistically associated with an
increase in real GDP growth of 0.30%.
Early-stage investments have an even
bigger impact of 0.96%.
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Source: NVCA Venture Impact
„Venture capital adds economic spice“, Deutsche Bank Research

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Summary so far...
Disruption creates substantial threats for those that stay passive.
Disruption creates vast opportunities for those that will seek them.
In order to execute on the opportunities you either have to have
a) rich parents
b) Venture Capital
So how does this Venture Capital thing work?
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26
PART III:
Understanding VC end-to-end

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Limited Partners
Investors in Venture Funds
General Partners
Venture Capital Funds
Startups
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Fund Investment
Startup Investments
Distribution of net proceeds
Exits
VC in a nutshell

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1500
400
250
90
12 11 10 10
Pre-selection
criteria
First meetup
with founders
Detailed
screening
Term sheet
‘Deal flow’
(Pitches)
Due Diligence
Closing
preparation
Investment
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VC dealflow: Needle / Haystack

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Seed Stage Early Stage Growth Stage
Status - Proof of Concept (PoC)
Minimum viable
product
(no revenues)
Product and market
PoC
(some revenues)
PoC in terms of
profitability and
scalability
(substantial
revenues)
Typical valuation EUR 1-4 m EUR 4-15 m EUR 10 m+
Assumed return potential 10x 5x 2.5x
Assumed default rate c. 50% c. 30% c. 25%
Assumed time to exit c. 6 years c. 4.5 years c. 3 years
The art & science of finding a fair valuation
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European Venture Capital divestments by exit route and % of
amount
Source: Invest Europe 2015 European Private Equity Activity
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Data as of
December 31, 2015
Index 1-Quarter 1-Year 3-Year 5-Year 10-Year 15-Year 20-Year 25-Year 30-Year
Cambridge Associates LLC U.S. Venture Capital Index®1 1.59 12.90 21.18 16.23 10.90 4.21 31.07 25.00 18.15
Barclays Government/Credit Bond Index -0.74 0.15 1.21 3.39 4.47 5.01 5.32 6.20 6.74
Dow Jones Industrial Average Index 7.70 0.21 12.66 11.30 7.75 5.80 8.77 10.47 11.28
Nasdaq Composite Index* 8.38 5.73 18.37 13.55 8.55 4.82 8.11 10.94 9.55
Russell 1000® Index 6.50 0.92 15.01 12.44 7.40 5.25 8.34 10.05 10.40
S&P 500 Index 7.04 1.38 15.13 12.57 7.31 5.00 8.19 9.82 10.37
U.S. Venture Capital: Fund Index Summary: Horizon Pooled Return
Net to Limited Partners
U.S. Venture Capital Index and Selected Benchmark Statistics
The Cambridge Associates LLC U.S. Venture Capital Index® is a horizon calculation based on data compiled from 1,619 U.S. venture capital funds (1,030 early stage, 185 late & expansion stage, 398 multi-
stage and 6 venture debt funds), including fully liquidated partnerships, formed between 1981 and 2015.
1Pooled horizon return, net of fees, expenses, and carried interest.
Sources: Cambridge Associates LLC, Barclays, Dow Jones Indexes, Frank Russell Company, Standard & Poor's, Thomson Reuters Datastream, and Wilshire Associates, Inc.
*Capital change only.
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Priority I for non-strategic investors:
earning risk-adequate returns

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Different priorities for strategic aka corporate venture investors
Source: CVC Landscape Survey, kbs+ Ventures

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The German VC market is teeny-tiny
German wealth
Invested in VC
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around 7 trillion €
around 80 billion € in
Alternative Investments
thereof 2-3 billion €
in VC

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Venture Capital investments as % of GDP of European countries
In comparison: 0.30% of
US GDP is invested in VC
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Significant trend of emerging fund managers
& first ever German (internet) VC funds >250M€
Cherry
Ventures
2016:
new 150 M€
VC fund
Holtzbrinck
Ventures
2015:
new 285 M€
VC fund
Point9
2015:
new 60 M$
VC fund
Project A
2017:
new 180 M€
VC fund
Lakestar
2016:
new 350 M€
VC fund
Rocket Internet
Capital Partners
2017:
new 1,000 M€
VC fund
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Opposing
reactionary trends
will be a decisive
locational factor
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© Rytis Daukantas / first published on
POLITICO.EU

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nikolas@cooperativa.vc
Twitter: @BerlinVC
Friend us on Facebook:
https://www.facebook.com/coopVC/
So let‘s use the chances wisely.
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Venture Capital 360 - Keynote Nikolas Samios / COOPERATIVA @BMWi 28.03.2017

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