A Perspective On The Nordic VCMarket Venturelab Investment Forum Petri Niemi CapMan

1
A Perspective On The Nordic VC-MarketVenturelab
Investment ForumPetri NiemiCapMan

2
CapMan The Nordic Private Equity House

• One of the pioneers in the industry
• established in 1989, Nordic expansion in
  2001-2004
• introduction of real estate operations in 2005
• Unique listed asset manager
• manages third party private equity, venture
  capital and real estate funds
• listed on Helsinki Stock Exchange since 2001
• Two complementary business areas
• private equity (incl. VC and Buy Out) and real
  estate
• Funds under management 1,872.9 million
• in addition assets managed/advised by Access
  Capital Partners 917.2 million
• Today a leading private equity investor in the
  Nordic region

CapMan owns 47.5 of affiliated company Access
Capital Partners.
3
CapMans Nordic Technology Team
Truly Nordic coverage with local teams
Stockholm
Helsinki
Oslo
Copenhagen
4
European Venture Capital Investment by Geography
in 2004
Source CapMan analysis, Venture Source
5
Biopharm Software Lead 2Q05 InvestingEquity
Investment in European Venture-Backed Companies
by Industry, 2Q05
Source Dow Jones VentureOne/Ernst Young
6
Software Takes Larger Share In EuropeIT
Investment Allocation by Sector
of Euros Invested
Source Dow Jones VentureOne/Ernst Young
7
European ICT Investments Q4/2001 - Q1/2005
M

Source Venture Source
8
Investment in IT Steady in 2Q05Equity
Investment in Information Technology Companies
Amount Invested (B)
Number of Deals
Source Dow Jones VentureOne/Ernst Young
9
Median Round Sizes Dip in 2Q05Median Amount
Invested in European Venture-Backed Companies
Median Amount Invested (M)
Source Dow Jones VentureOne/Ernst Young
10
U.S. Median Round Sizes Steady in 2Q05Median
Amount Invested Per Financing Round, VC Only
Median Amount Invested (M)
Source Dow Jones VentureOne/Ernst Young
11
VC Round Allocation Holds Steady In
EuropeEuropean Deal Flow Allocation by Round
Class
of Total VC Rounds
Seed and First Rounds Combined
Source Dow Jones VentureOne/Ernst Young
12
U.S. Round Allocation Mirrors Mid-90s
LevelsDeal Flow Allocation by Round Class
(Annual)
of Total VC Rounds
Seed and First Rounds Combined
Source Dow Jones VentureOne/Ernst Young
13
Perspective on European MarketEquity Investment
in Venture-Backed Companies, US vs. Europe ()
Overall Investment
Amount Invested (B)
Source Dow Jones VentureOne/Ernst Young
14
European Private Equity Market Key Trends

• 27.5 billion raised in 2004. For the third year
  in a row amounts invested exceeded amounts
  raised...
• out of which 8.8 billion raised for venture
  capital
• In year 2005 fundraising levels are expected to
  see a significant increase mainly due to many
  large and mega buyout funds currently at the
  market
• Investments reached a record level in 2004 with
  36.9 billion invested
• Also divestments recorded a highest level ever at
  19.6 billion with trade sale remaining as the
  most common exit route (4.6 billion)

15
Stage Distribution of Investment in the Nordic
Countries in 2004 (by amount invested)
Source EVCA
16
2004 Second Highest Year in Terms of Funds
Raised(annual funds raised and invested in the
Nordic Countries 1999-2004)
M
Source EVCA
17
Perspective On The Nordic Countries

• Countries differ still, but are getting closer
• Bubble almost forgotten and cleaned out from the
  portfolios. Business as usual.
• Seed early stage still needs a lot of attention
  from EU local governments
• Fundraising activity high to cover for the
  post-bubble gap
• Emerging new industries scarce, still very
  software telecoms oriented.
• Future looks brighter

18
MA Prices Remain HighTransactions and Amount
Paid in MAs
Amount Paid (B)
Number of Transactions
19
Thank You