1. Nexit Ventures
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Bridging Mobile Opportunities
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

2. Nexit Ventures
Michel Wendell
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 Grew up in Finland, spent half my life elsewhere
 EE degree
 Started businesses from scratch in four countries
 Held every corporate job outside of finance and HR
 In the Valley since 1996
 Entrepreneur – Nexit is my start-up
 Cherish life, family, nature, arts, food – hate airplanes and dishonest people
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

3. Nexit Ventures
Executive Summary
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 Focus on mobile and wireless
– Software, enabling technology, service and content opportunities
– The convergence between communication, computing and content
 Activities are targeted to the Mobile hot spots
– Offices in Helsinki, Stockholm and Silicon Valley
– Majority of the investments in the Nordic area
– Most of the rest in the US west coast
– Networking, business development in China, Korea and Japan
 Majority of the capital to be deployed in series B and C financings
– Initial investments will be typically done in series A and B financings
 Raised about $200M in two funds, fund structure on Guernsey
 6 person investment team, all operational and relevant industry background
 Hands-on, partnering with the entrepreneurs
 Investment size; $500k-$5M, total up to $10M
 We invest in people, innovation and market opportunity
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

4. Nexit Strategy
Bridging Mobile Opportunities
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The Nexit Bridge – connecting the mobile hot spots
 Bridging Nordic mobile companies to Silicon Valley markets and exit
opportunities
 Providing US based mobile companies with a Nordic market insight,
customer access, and technology resources
 Access to lead mobile operators and handset manufacturers in Asia
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

5. Market Overview
Mobile & Wireless Market
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The history of computing can divided into four distinguishable waves
 Every wave has lasted roughly 10 years
 Each wave has been significantly larger (revenue & market cap) than the previous one
 The initial growth has been faster than in any preceding wave
 All waves have produced significant new players and generated major wealth for their investors
Now the fifth wave – the Mobile Internet – is upon us
Source: Morgan Stanley, Nexit
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

6. Market Overview
Mobile & Wireless Market
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Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

7. Mobile Technology Hot Spots
Nordic Wireless Knowledge
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 Finland and Sweden on top of the global R&D spending
– Sweden and Finland are the only two EU countries spending more than 3
percent of gross domestic product (GDP) on research and development
– Investments in knowledge – the sum of investments in R&D, software and higher
education – are highest in the United States, Sweden and Finland.
 In The Nordic countries high tech business has a strong wireless flavor
– R&D skills: The Nordic investment in knowledge is largely focused on mobile
technologies and wireless telecommunication, led by companies such as Nokia
and Ericsson
– Business skills: Individuals leaving Nokia and Ericsson (including the top
management) are generating a continuously growing world class quality deal flow
in mobile space
Eurostat 2006, OECD 2003
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

8. Hot Spots in Financial World
Entry in EU – High Value Exit in US
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USD $M The Nexit bridge to high value exits
50
47 $M
45
 Median entry valuations
exit substantially lower in the EU
40
in all VC investment stages
35
30
 Median M&A exit valuations
substantially higher in the US
25 23 $M
20  Arbitrage: entering with low
15 $M
15 European valuations and exiting
entry with high US valuations
10
5 $M
5
0
Median VC pre Median M&A
money valuation Europe US
valuation
Source: DowJones VentureSource Reports
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

9. Hot Spots in Financial World
The Acquisition power resides in US
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North America dominates the high tech market
– North America represents 30% of the global GDP
but over 60% of the value of public technology companies
– North American companies make ~3/4 of high tech acquisitions
 Utilizing the North American M&A market is crucial for high tech VC
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

10. Hot Spots in Financial World
M&A Activity
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Source: Capital IQ, SEC, Thompson Reuters, Nexit Ventures.
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

11. Hot Spots in Financial World
Wireless M&A Activity
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Source: Rutberg & Company, Nexit Ventures.
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

12. Nexit Strategy
Bridging Mobile Opportunities
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Flip from Finland to US
Flip from Finland to US Partial exit: NTT DoCoMo
~ 75% revenue from US
Acquired by ON2/Google
US mgmt/bizdev - FIN R&D
High Growth, profitable
~ 90% revenue from US
Acquired by HP Acquired by nVidia
[NYSE:HPQ] Acquired by Sybase [NSDQ:NVDA]
[NYSE:SY]
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

13. Strategy Execution
Investment Strategy
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Typical portfolio company profile
 Companies with global ambitions and products that can compete globally
 Management teams with experience and execution power
 Target that over 50% of the companies will be originated from the Nordic area,
most of the rest in the US, a few in Asia or Europe
 Nexit should contribute concrete added value for the portfolio company:
Our deep domain knowledge and global network combined with active hands on
involvement can be used to better monitor and further accelerate the development
Nexit’s investment strategy execution
 Benchmarking the deal flow globally (teams, technology, market opportunity)
 Strong involvement in company’s strategy, supporting execution and business
development, early international growth
 Connecting to global partners and customers for faster growth
 Positioning and building networks for international high value exits
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

14. Nordic VC Scene
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Typical portfolio company profile
 Over the past 5 years there has been about $5B in VC investments in the Nordic
area in 3700 deals ($32B in VC investment in the US in 2011 in 3200 deals,
almost 40% from Silicon Valley)
 Roughly 75% of the money in the Nordics came from governmental sources
 There are probably 20 active VCs, down from almost 100 in 2000
Deal flow
 We see 400-600 mobile/wireless plans per year
 50% Nordic, 40% US
 We make 0-2 new investments per year
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com

15. 14
Thank You!
Kiitos!
Tack!
Helsinki Stockholm Silicon Valley CONFIDENTIAL www.nexitventures.com