looking at european saas exits

D E S I G N I N G Y O U R E X I T S T R AT E G Y : A D ATA - D R I V E N L O O K AT R E C E N T S A A S E X I T S

Private & Confidential | 2

A g e n d a

Introduction

European SaaS Exit Trends

Case Studies

How to achieve your exit?

Introducing ‘Real Exits’

01

02

03

0405


I n t r o d u c t i o n

M A R K M A C L E O D

F O U N D E R & P R E S I D E N T S U R E PAT H C A P I TA L PA R T N E R S

Mark has over 14 years experience as a CFO for leading companies such as FreshBooks, Shopify, Tungle and many others. He also spent 3 years as a General Partner at Real Ventures,

Canada’s largest and most active seed stage venture fund.

He has raised hundreds of millions in capital from investors in Canada, the US and Asia. In addition, Mark has sold companies to Airbnb, Blackberry, Rackable Systems, Return Path and

others.


S u r e P a t h : O u r P u r p o s eHelping you fund, grow and exit your startup

The process of raising growth capital is very different from raising early stage capital

It is cheaper than ever to start companies, but more expensive than ever to build market leaders. If that’s your aspiration, you need growth capital

We help startups prepare for growth stage and help them raise the capital needed to become market leaders

We have sat on both sides of the table. We have funded, grown and exited many companies

We offer up that experience through ongoing coaching and mentoring.

A low touch, high impact way to help you grow

There are few credible choices for advisors to facilitate sub $100M exits. We fill that gap

We work with you to facilitate the BD and Corp Dev intros that pave the way to an eventual exit

If you decide to exit, we manage the process for you from start to finish

SurePath maximizes your optionality: We make sure you know what it takes to build a market leader and capitalize you towards that goal.

We ensure you are always in the minds of strategic buyers so that if they decide to make a move in your space, you are in the conversation. You can then decide; Keep going or exit?

Growth Funding

Strategic Guidance

Exits


S u r e P a t h & S M B

• We have been part of some the most successful SMB SaaS companies • We have deep relationships with SMB investors and buyers • SurePath is committed to becoming the leading strategic financial advisor to the global

SMB software market

European SaaS Acquisition Activity


E x i t s b y T y p e

Source: pitchbook.com

19

3024 24

35

2228 27

1520

24

1

11 2

1

1

3

0

5

10

15

20

25

30

35

40

2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3

Num

bero

fDeals

European SaaS Exits by Type

Merger/Acquisi=on IPO

Private & Confidential |

Private Buyers

67%

Public Buyers

33%

Buyer by Type

8

B u y e r L o c a t i o n & T y p e


North America

41%

Asia & Others 6%

Europe 53%

Buyer By Geography


B u y e r sWho’s buying European SaaS companies



E x i t s b y A g e

Note: 12 companies does not have a disclosed age Source: pitchbook.com

14%

40% 17%

18%

11%

ExitByAgeofCompany

0to5years

6to10years

11to15years

16to20years

>20years


E x i t s b y S i z e


71%

21%

5% 2% 1%

ExitValues

NotDisclosed

$0m- $50

$50M- $100M

$100M- $200M

>$200M


F u n d i n g S t a t u s


6%

40%53%

Funding Status of Exited Companies

PE VC Non-funded

$46.7m

$30.0m

$13.1m

$0.0m

$5.0m

$10.0m

$15.0m

$20.0m

$25.0m

$30.0m

$35.0m

$40.0m

$45.0m

$50.0m

PE VC Non-funded

Median Valuation

4.2x3.8x

2.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

PE VC Non-funded

Valuation /Rev Multiple


C O U N T R Y E X I T SU N I T E D K I N G D O M 9 2G E R M A N Y 3 7F R A N C E 3 5N E T H E R L A N D S 1 5I R E L A N D 1 4S PA I N 1 2S W I T Z E R L A N D 9F I N L A N D 8S W E D E N 8I TA LY 7B E L G I U M 6D E N M A R K 6N O R WAY 6R U S S I A 5

C Z E C H R E P U B L I C , P O R T U G A L , C R O AT I A , P O L A N D , A U S T R I A , C Y P R U S , H U N G A R Y, L AT V I A , M A LTA , S E R B I A , S L O VA K I A , U K R A I N E

< 5

E x i t s b y L o c a t i o n

92

37

15

35

14

12

9

8

8

7

6

6

6

5

Case Studies


Endomondo Year Founded 2007

Time To Exit 8 Years

Rounds Raised 3

Total Funding $6.2M

Investor(s)SEED Capital

Denmark

HeadquartersCopenhagen,

Denmark

Employees 33

15

C a s e S t u d y : E n d o m o n d o

Source: pitchbook.com, Endomondo, inc.com, Bloomberg

Acquired By Valuation Date Of Acquisition

$85 Million USD January 2015

• Under Armour bought Endomondo around the same time it acquired MyFitnessPal for $475M USD

• Endomondo was profitable at the time of acquisition • Under Armour acquired Endomondo to understand

European consumers better - with only 8% of revenue outside of America


TextLocal Year Founded 2005


Rounds Raised N/A

Total Funding N/A

Investor(s) N/A

Headquarters Chester, England

Employees 36

16

C a s e S t u d y : Te x t L o c a l

Source: pitchbook.com, Venturebeat, tech.eu


$16.6 Million USD Oct 2014

• TextLocal’s messaging platform was very complementary to IMImobile’s solutions which utilizes network and mobile data to create streamlined customer journeys

• TextLocal was immediately integrated with IMImobile’s core infrastructure post acquisition - and the platform helped cross-sell IMImobile’s other products

• With IMImobile’s global footprint, it also opened up more markets for TextLocal

• TextLocal also allowed IMImobile to start serving the SMB market, which it did not previous cater to


Wunderlist Year Founded 2010


Rounds Raised 4

Total Funding $24M

Investor(s)Sequoia Capital,

Deutsche Telekom, Atomico

Headquarters Berlin, Germany

Employees 61

17

C a s e S t u d y : Wu n d e r l i s t

Source: pitchbook.com, SeattleTimes, Wunderlist, MIcrosoft, ZDNet


$150 Million USD June 2015

• While Microsoft has historically focused on building their own major applications, it has shown a preference to buy mobile-first apps that are single feature (i.e. Sunrise, SwiftKey, Acompli, etc.)

• With over 13 million users at the time of acquisition, this was a good channel for Microsoft to be even further embedded into people’s productivity solutions

• Since the acquisition, Microsoft has rolled out integrations between Wunderlist and Microsoft Outlook

• Wunderlist has also introduced more premium, business oriented solutions since the acquisition

How to Achieve Your Exit


Exit Rule #1: Be proactive

stop wishing.

start doing.


Exit Rule #2: Strangers don’t (often) marry


Exit Rule #3: Timing matters

Source: SaaStr


Exit rule #4: (Almost) anything is possible

Possibilities


Buyer TypesFounder

✓ Product-driven

✓ Based on desire

✓ Top down

✓ No prior relationship needed

Manager

✓ Fact-driven

✓ Based on clear business case

✓ Pushed up to CEO

✓ Need evidence (joint customers)


Drivers of Deal Value

✓ Alternatives (runway, competition)

✓ Scarcity

✓ Mortal enemies

✓ Growth (fear)

✓ Market leadership (2 way)

✓ Does the buyer’s CEO Want this?

✓ On strategy

✓ Currency

✓ Time and timing (including markets)


T h e R o l e o f A d v i s o r s

25

✓ Should you hire one? Yes

✓ What to look for: Relevant relationships, completed deals and expertise.

Senior people involved

✓ Role:

✓ Prepare you

✓ Quarterback

✓ Create / manage demand

✓ Good cop/ bad cop

✓ Objectivity

✓ Create urgency


I n t r o d u c i n g R e a l E x i t s

Shubham Datta Associate

[email protected] 647.972.6834

Rena Wang Analyst


Mark MacLeod Founder & President


looking at european saas exits

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