Market Trends in Information Technology Investment

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Market Trends in Information Technology
Investment
5th Venture Capital Forum, Athens 16/6/2004
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Vectis Capital
Vectis Capital

• ?Management company of Venture Capital / Private
  Equity Funds
• ?Founded in August 2000
• ? Member of Leventis Group
• ? 1st fund under management 30 m
• ? Provider of Funds,
• Consultancy,
• Business Synergies

www.vectis.gr
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Vectis Capital
Investment Model
? Adequate Management Team ? Time Horizon of 4 -
6 years
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Vectis Capital
Venture Capital Fundamentals

• ? A form of financing, which gives up some
  ownership and control of the company in exchange
  for capital, over a limited time frame, usually
  4-6 years.
• ? The exit of the venture capitalist can be an
  IPO, a merger or acquisition, or a trade sale.
• ? Unlike banks, which seek their return through
  interest payments, venture firms look for capital
  appreciation. Their payoff is how much their
  original investment has increased.
• ? The fundamental investment criteria of venture
  capitalists boil down to these three points
• ? the management team
• ? the product or service
• ? the market

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Vectis Capital
Market Trends in Information Technology
Investments
I. The Environment

• ? Increased investment appetite
• There is significant availability of capital.
  Investors are more familiar with risk.
• New investment structures and instruments have
  emerged.
• ? Global competition among Venture Capitals for
  quality investments
• Sustainable technology attracts the best
  financing.

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Vectis Capital
Market Trends in Information Technology
Investments
I. The Environment
? Globalisation in Investments Exits Venture
Capitals from different continents are
co-investing. Exits as IPOs or trade sales can
take part in any place of the world. We see more
and more Transatlantic and cross-European
investment as well as exit deals. ? For
Greece Funding Emergence of Incubators,
Technology Parks etc. Deals Emergence of
Academic and Research Institutes spin offs.
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Vectis Capital
Market Trends in Information Technology
Investments
II. The Trend
Major target are Products/Services ? With
global market potential ? A hot example
Business Efficiency/Effectiveness
Increased Sales
Increased Productivity
Cost Savings
Customer Profitability
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Vectis Capital
Business Efficiency/Effectiveness
Software Areas that will excel

• Business Intelligence Systems
• to monitor and manage individual transactions
  and business processes in real-time.
• e.g. SECURITY can generate alerts when an
  important event occurs or when there is a
  departure from expected behaviour

• Business Integration Technologies
• Long-running processes for business-to-business
  integration
• e.g. ON LINE TRANSACTIONS Business Exchanges

• Supply Chain Execution/Planning
• real-time information about order status,
  inventory levels, as well as other supply chain
  events such as deliveries, warehousing, shipments
  and production.
• e.g. FOOD INDUSTRY from ingredients to full
  recall of products

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Vectis Capital
Case Study in Supply Chain Execution
? Excellent Market Potential ? Internationally
Competitive Product ? Strong Management Team with
International Experience
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Vectis Capital
Logistics Vision TM
? Excellent Market Potential
The Supply Chain Software Market
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Vectis Capital
Logistics Vision TM
? Internationally Competitive Product

• One of the few 100 Microsoft .NET Supply Chain
  Execution suite available worldwide today.
• Based on open and de-facto standards supporting
  the two most popular RDBMS systems, Oracle and
  Microsoft SQL server.
• Multilingual Easily upgradeable, based on the
  latest release control techniques.
• Already projects abroad

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Vectis Capital
Logistics VisionTM
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Vectis Capital
Logistics VisionTM
IV. Front Line Automation
V. Inventory Optimisation