Molten Ventures Plc · LSE:GROW
Molten Ventures — Draper Esprit — H1 2018 Earnings Presentation
35 slides from Molten Ventures's earnings presentation, October 2017
Slide 1: Interim Results 2017 Presentation
OCTOBER 2017 Interim Results 2017 Presentation 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Draper Esprit plc ("Draper Esprit" or the "Company") and is for information purposes only. This presentation does not constitute an offering document or an offer of transferable securities to the public in the UK. This presentation is not intended to
Slide 3: Contents
Contents - Interim Update - Portfolio Update - Company Strategy - Outlook - Appendices 3
Slide 4: Interim Update
clrajoc vesprit Interim Update
Slide 5: Draper Esprit plc
Draper Esprit plc is a European Venture Capital Company Focused on finding, investing in and helping to scale the next generation of high growth technology companies. Through an evergreen listed vehicle and associated co-investment funds. 5
Slide 6: Interim results September 2017 highlights
Interim results September 2017 highlights Financial highlights • Gross primary portfolio value increased by 44% to £162.8 million, 22% in fair value gains. NAV Progression £ • 372 pence NAV per share (Seedcamp/Transferwise adds 7 pence post period to 379 pence). £280.0m • 344p NAV per share, excl. g
Slide 7: Core Assets high growth
Core Assets high growth • Core represents 76% of Gross Portfolio Value (c.77% including TransferWise) • Core – 10 co’s with total value £122m (£12m average NAV at interim), with TW included rises to ~£134m+ (£12m average) • 11% average equity holding in Core co’s • 70% average gross profit margin (c
Slide 8: Portfolio update
clrajoc vesprit Portfolio update
Slide 9: Group invested £38.5 million since March 2017
Group invested £38.5 million since March 2017* Core Emerging £1.8 million £6 million invested invested by plc by Group £7.5 million invested £6.6 million by Group invested by plc £7.0 million £3.5 million invested invested by Group by Group £17.9 million invested £5.6 million by plc post period inve
Slide 10: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth Trustpilot is a global, multi- Online and offline retailer and Global leading technology & Cloud-based social customer language review community with manufacturer of healthier data platform used by service solutions using customers in 65 countries. snacks,
Slide 11: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth Founded in 2010, Lyst is an online Founded in 2011 as a UK-based Software company which Perkbox provides a platform fashion marketplace that lets sport specific e-commerce provides enterprise that enables companies of all people shop across over 11,500 web
Slide 12: Key portfolio companies underpin NAV growth
Key portfolio companies underpin NAV growth Machine intelligence company, Telemedicine company, Push Through the acquisition of Graphcore, has now moved into Doctor, has now moved into our Seedcamp Fund I and II as a our core portfolio after they core portfolio after they raised Secondary portfolio,
Slide 13: Emerging companies can grow into future core assets
Emerging companies can grow into future core assets Digital Enterprise Deeptech/ Hardware Consumer Tech Health & Wellness 13
Slide 14: Gross Portfolio Value (GPV) progression
Gross Portfolio Value (“GPV”) progression £195.0m Interims c.£12m+ c.£175m+ £175.0m £162.8m £41.2m £155.0m £135.0m £11.3m £115.0m £7.0m £7.5m £7.7m £12.1m £95.0m £10.0m £11.2m £75.0m £12.3m £55.0m £12.8m £35.0m £29.5m £15.0m Mar-17 Invested FV movement 14
Slide 15: Company strategy
clrajo° esprit Company strategy 15
Slide 16: Experience has driven our successful model
Experience has driven From potential opportunity our successful model to exit ✓ Invest small amounts early, reserving We screen 2,500+ more capital for later stage rounds c70% companies per year capital late stage ✓ Seeking companies born in Europe We meet and closely track 1000+ which can be global
Slide 17: Three pillars of capital: AUM > £460m
Three pillars of capital: AUM > £460m (US$600m) PLC Parent • Primary and secondary investing from listed balance sheet • NAV of £266.8 million at interm September 2017 • 30+ direct investments • Investing £60.0 million per annum Tax efficient investing • Co-invest in Plc deals • Raising ~£40.0 milli
Slide 18: Access to high growth technology companies across Europe
Draper Esprit provides access to high growth technology companies across Europe START UP GROWTH MATURITY DECLINE Private Public Funding Self/Friends Private Equity Angels Stock Market Crowd Funding/Seed SERIES A,B,C+ 18
Slide 19: Innovated on the venture capital model for the public market
Draper Esprit has innovated on the venture capital model for the public market 1. Cash When the companies exit, the cash generated is returned to the balance sheet and re- invested into new opportunities in the market. 2. Emerging companies The Company invests in entrepreneurial, fast- growing busin
Slide 20: Seed fund of funds
Seed fund of funds • The Company has announced its intention to invest £75 million into Europe’s top seed funds over five-year period. • Post- period the Company invested in two of Europe’s leading seed fund platforms Episode Former backers of Zoopla 1 and Seedcamp. • Draper Esprit are already inves
Slide 21: Seedcamp acquisition
Seedcamp acquisition • Post- period end Draper Esprit announced the acquisition of Seedcamp Funds I and II for £17.9 million (€20 million). • The Company has acquired meaningful minority stakes in high profile growing technology companies including Transferwise, a leading UK based Fintech business.
Slide 22: Investing a growing team
Investing a growing team Simon Cook CEO Simon is the CEO of Draper Esprit and has been involved with the European VC Jonathan Sibilia Vishal Gulati Brian Caulfield Ben Tompkins industry since 1995. He co-founded Draper Head of Secondaries Venture Partner Managing Partner Partner Esprit in 2005 and h
Slide 23: Actively manages companies across plc, EIS and VCT
Draper Esprit actively manages companies in enterprise, digital health, hardware & consumer tech across plc, EIS and VCT. Digital Enterprise Deeptech/ Hardware Consumer Tech Health & Wellness 23
Slide 24: DVN: global companies need global networks
DVN: global companies need global networks As a global network, the Draper Venture Network enables our portfolio to access markets as they shift. We have partners in Asia, the US, and the Middle East. For both commercial connections and future funding, our portfolio is well supported to internationa
Slide 25: Outlook
clrajoc vesprit Outlook 25
Slide 26: Company Outlook
Company Outlook • It has been another progressive six months for the Group; raising capital; investing in our team; supporting existing portfolio companies. • We set ourselves a financial benchmark of portfolio growth of at least 20% year on year growth and are consistently achieving this. • The Pla
Slide 27: Appendix
clrajoc vesprit Appendix 27
Slide 28: Gross Portfolio Value Table
Gross Portfolio Value Table 28
Slide 29: What does the VC market look like today?
What does the VC market look like today? 29
Slide 30: Venture Capital is a growing asset class
Venture Capital is a growing asset class Companies are Global VC market European Venture staying private for now worth ~$128bn. Capital opportunity longer. compares to the US industry in the 1990s. Predominantly accessible only to Limited Partnerships. Our research shows that McKinsey 2016 European
Slide 31: European Venture Capital market today
European Venture Capital market today Number of deals by size in the Number of deals by size in USA each year EUROPE each year <$5m >$5m - $75m $75m+ <$5m >$5m - $75m $75m+ 3000 1500 2000 1000 1000 500 0 0 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Source: Pitchbook Source: Pitchbook • USA is
Slide 32: European Venture Capital market 2017
European Venture Capital market 2017 Percentage of European deals over $5 Percentage of European deals over $5 million by sector 2017 million by region 2017 Consumer Enterprise Hardware Digital Health UK/ Ireland DACH and Nordics France, Benelux, Southern Europe Source: Pitchbook Source: Pitchbook N
Slide 33: $10m Series A is the old series B
$10m Series A is the old series B, $25m Series B is the old C… Globally, the market is maturing. Below shows the size in $ of series A and B increasing. Deal sizes represent total round amount, not contribution from individual investors. Data as of 26/09/2017 Pitchbook 33
Slide 34: Who is funding UK tech?
Who is funding UK tech? 3,500 3,000 2,500 2,000 1,500 1,000 500 - 2013 2014 2015 2016 2017 EU LPs Government US LPs Angels/crowd (non EIS) Corporates Patient Capital Source: Draper Esprit analysis based on data from Venture Source & internal deal tracking database 34
Slide 35: Private vs public
Traditionally, this asset class has been for private investors Private vs public Private model Public model 5 + 5 year model: Liquid fund structure illiquid close end funds Invest in current portfolio. Core Blind pool investment approach holdings represent 76% of NAV. Capital returned to LPs after 1