Leadership

Cream of the VC crop

Nov 08 issue

Investor AllStars, the awards event presented by Business XL and GP Bullhound, lauds the achievements of the movers and shakers on the UK and European venture capital scene. James Crux reports

More than 600 of the European venture capital market’s great and good gathered for the annual Investor AllStars Awards. For the first time, the event, which celebrates the most astute and enterprising venture capital deals, included firms from around Europe.

Held at London’s Hilton Hotel on Park Lane and presented by the BBC’s Emily Maitlis, achievements were recognised across a range of categories, from VC Personality of the Year to Private Investor Network of the Year. During the proceedings, over £5,000 was raised for the Prince’s Trust, which provides funding and support to young people who want to set up their own businesses.

Venture Capital Fund of the Year
Winner – Index Ventures

Other nominees: Baytech Venture Capital, DFJ Esprit, Forbion Capital Partners, Nordic Venture Partners, Northzone Ventures, Wellington Partners, Ventech

Winner of the keenly contested Venture Capital Fund of the Year, open to all European venture firms backing high-growth companies, was Index Ventures, described by partner and former Business XL Trailblazer Saul Klein – a passionate believer that Europe is just scratching the surface of its potential to create great start-ups – as ‘one of the few firms in Europe with a US approach to investment’. For the second year running, the firm was acknowledged as the stand-out investor for fast-growth ventures, rewarded for its global reach, investment activity and, of course, strong exits.

Exit of the Year
Winners – Index Ventures, Balderton, Scope (for MySQL)

Other nominees: Apertio, Alantos, Bebo, Buy.at/Perfiliate, Coding Technologies, Cartesis, Gyro International, Healthcare at Home, MeilleurTaux.com

Index also waltzed off with the Exit of the Year gong, open to all European venturing firms achieving exits for cash or shares, along with its investment partners Scope and Balderton Capital as recognition for the sale of open-source database developer MySQL. The company was acquired for $1 billion in cash and assumed options by computing giant Sun Microsystems.

This deal had to fend off stiff competition in the form of another mega exit, Bebo, with the judging panel ultimately plumping for MySQL on account of the early stage at which the investors got involved and how they helped the business adapt and expand.

VC Personality of the Year
Winner – Simon Cook

Other nominees – Torleif Ahlsand (Northzone Ventures), Bernard Dallé (Index Ventures), Jude Ngu’Ewodo (Baytech Venture Capital), Andreas Ossmark (Scope), Ernie Richardson (MTI), Jean Schmitt (Sofinnova Partners), John Tidmarsh (E-Synergy UK)

The individual deemed to have made the most significant impact on the European venture capital scene was last issue’s Trailblazer, Simon Cook of London and Cambridge-based growth company backer DFJ Esprit.

‘We had a good year and some good exits,’ says Cook, highlighting the first-half sale of Buy.at to web giant AOL. ‘We found this Newcastle-based business in 2006, grew it into a leader and launched it in the US. We then sold it for $125 million to AOL for a five times return.’ Another deal highlighted by Cook was the acquisition by LOVEFiLM of Amazon’s UK and German DVD rental businesses in April.

Private Investor Network of the Year
Winner – Hotbed

Other nominees: Envestors, Femmes Business Angels, Go Beyond Ltd, London Business Angels, Netzwerk Nordbayern, Octopus Ventures, Seedcamp

Emerging victorious for the second year running in this hotly contested category, open to all angel networks and private investor clubs across Europe, was Hotbed. The judging panel appreciated the strength of the Hotbed team, led by ex-3i investment director Gary Robins.

Robins insists Hotbed is the UK’s biggest syndicator of private investors. ‘In the year to March 2007, our members invested £35 million into transactions, and in the year to March 2008, this had risen to £54 million, so we are in something of a different league.

‘We back everything from MBOs to early-stage and we do everything – finding the businesses, due diligence, making the investments and managing them to completion.’

Robins claims Hotbed fills a gap in the market, giving private investors access to deals that they wouldn’t otherwise find: ‘For instance, in November 2007, we invested in the MBO of Avocet Hardware, a supplier of fixings, nails and screws to the big DIY sheds such as B&Q and Wickes.’

Deal Envy of the Year
Winner – Adconion Media Group

Other nominees: Criteo, Dailymotion, Kiala, Metaversum, Nanoradio, Pangenetics, Steak Media, Seatwave

Heralding what the judges considered to be the most exciting sale of the period in Europe, Deal Envy of the Year went to Index – yet again – and Wellington Partners (see July/August issue for interview with Wellington’s Eric Archambeau) for Munich-based online advertising network Adconion Media Group.

Adconion, aiming to become the largest independent global exchange for digital advertising by the end of 2008, was nominated for having secured £40.9 million of ‘Series C’ funding in what represented the biggest venture investment in digital media in European history.

Jon Moulton’s Triumph over Adversity Award
Winner – Solar Integrated Technologies

Other nominees: Kilgour, Little Chef, Orthagon, Shazam, Vibrant Media

Walking off with Alchemy’s Triumph Over Adversity award was Solar Integrated Technologies, a provider of solar power-generating roofing systems. Losses of more than $17 million (£11.5 million) and $22 million were incurred for 2005 and 2006 respectively. But the company has turned the corner under new chief executive Randy MacEwen, who has effected an extraordinary turnaround.

In 2007, the company finished the year on sales of $81.1 million, with $11.3 million cash on the balance sheet.

VCT/FCPI of the Year
Winner – AGF

Other nominees: Beringea, Foresight, Isis Equity Partners, Matrix, Octopus Investments, OTC Asset Management, YFM Group (British Smaller Companies)

In a category open to all VCTs, Fonds Commun de Placement dans l’Innovation (FCPI) and other government-promoted investment funds offering tax relief for private investors, the winner was AGF Private Equity. It caught the eye of the judges for the quality of its new investments in companies such as video-hosting service website Daily Motion and Criteo, a Paris-based deliverer of real-time personalised recommendations to online shoppers. The panel also appreciated a number of high-profile exits from AGF and strong fundraising against a tough backdrop.

Service Provider of the Year
Winner – Brown Rudnick

Other nominees: Addleshaw Goddard, Kreos, Noble, Olswang, Spectrum

In the opinion of the judging panel, international law firm Brown Rudnick stood out for going the extra mile for its VC and corporate clients. It has also been involved with fostering new talent, such as through Seedcamp, the week-long event for young entrepreneurs to showcase their early-stage strategies and product concepts.

Equity Gap Fund of the Year
Winner – High-Tech Gründerfonds

Other nominees: The Capital Fund, Dotcorp, East Midlands Early Growth Fund, Eden Ventures, MTI, NESTA, NorthStar Equity Investors (North East Co-investment Fund), North West Business Investment Scheme, Oxford Capital Partners, Seraphim Capital (Seraphim Enterprise Capital Fund)

Bagging the Equity Gap Fund of the Year gong was High-Tech Gründerfonds, rewarded for its ‘incredible’ level of activity in the German market and its hands-on approach to early-stage investments.This e272 million fund was set up by the German government (which put in e240 million), the KfW banking group, BASF, Siemens and Deutsche Telekom to invest in young high-tech businesses.

‘The key difference between our fund and other public funds is that they will only co-invest,’ explains Dr Alexander von Frankenberg, managing director of the fund since late 2005. ‘We, however, act as the lead investor and in many cases the only investor. We typically invest e500,000 in high-tech companies less than a year old. We are involved in everything from the optical industry to the semiconductor sector and life sciences. We have closed 126 investments since our formation.’


Editor's View Business Bulletin Trailblazers Business Tools Finance Expansion Strategy Leadership Flotation Exits Columns Enterprise News Deal Listings Backchat	Leadership Cream of the VC crop Nov 08 issue Investor AllStars, the awards event presented by Business XL and GP Bullhound, lauds the achievements of the movers and shakers on the UK and European venture capital scene. James Crux reports More than 600 of the European venture capital market’s great and good gathered for the annual Investor AllStars Awards. For the first time, the event, which celebrates the most astute and enterprising venture capital deals, included firms from around Europe. Held at London’s Hilton Hotel on Park Lane and presented by the BBC’s Emily Maitlis, achievements were recognised across a range of categories, from VC Personality of the Year to Private Investor Network of the Year. During the proceedings, over £5,000 was raised for the Prince’s Trust, which provides funding and support to young people who want to set up their own businesses. Venture Capital Fund of the Year Winner – Index Ventures Other nominees: Baytech Venture Capital, DFJ Esprit, Forbion Capital Partners, Nordic Venture Partners, Northzone Ventures, Wellington Partners, Ventech Winner of the keenly contested Venture Capital Fund of the Year, open to all European venture firms backing high-growth companies, was Index Ventures, described by partner and former Business XL Trailblazer Saul Klein – a passionate believer that Europe is just scratching the surface of its potential to create great start-ups – as ‘one of the few firms in Europe with a US approach to investment’. For the second year running, the firm was acknowledged as the stand-out investor for fast-growth ventures, rewarded for its global reach, investment activity and, of course, strong exits. Exit of the Year Winners – Index Ventures, Balderton, Scope (for MySQL) Other nominees: Apertio, Alantos, Bebo, Buy.at/Perfiliate, Coding Technologies, Cartesis, Gyro International, Healthcare at Home, MeilleurTaux.com Index also waltzed off with the Exit of the Year gong, open to all European venturing firms achieving exits for cash or shares, along with its investment partners Scope and Balderton Capital as recognition for the sale of open-source database developer MySQL. The company was acquired for $1 billion in cash and assumed options by computing giant Sun Microsystems. This deal had to fend off stiff competition in the form of another mega exit, Bebo, with the judging panel ultimately plumping for MySQL on account of the early stage at which the investors got involved and how they helped the business adapt and expand. VC Personality of the Year Winner – Simon Cook Other nominees – Torleif Ahlsand (Northzone Ventures), Bernard Dallé (Index Ventures), Jude Ngu’Ewodo (Baytech Venture Capital), Andreas Ossmark (Scope), Ernie Richardson (MTI), Jean Schmitt (Sofinnova Partners), John Tidmarsh (E-Synergy UK) The individual deemed to have made the most significant impact on the European venture capital scene was last issue’s Trailblazer, Simon Cook of London and Cambridge-based growth company backer DFJ Esprit. ‘We had a good year and some good exits,’ says Cook, highlighting the first-half sale of Buy.at to web giant AOL. ‘We found this Newcastle-based business in 2006, grew it into a leader and launched it in the US. We then sold it for $125 million to AOL for a five times return.’ Another deal highlighted by Cook was the acquisition by LOVEFiLM of Amazon’s UK and German DVD rental businesses in April. Private Investor Network of the Year Winner – Hotbed Other nominees: Envestors, Femmes Business Angels, Go Beyond Ltd, London Business Angels, Netzwerk Nordbayern, Octopus Ventures, Seedcamp Emerging victorious for the second year running in this hotly contested category, open to all angel networks and private investor clubs across Europe, was Hotbed. The judging panel appreciated the strength of the Hotbed team, led by ex-3i investment director Gary Robins. Robins insists Hotbed is the UK’s biggest syndicator of private investors. ‘In the year to March 2007, our members invested £35 million into transactions, and in the year to March 2008, this had risen to £54 million, so we are in something of a different league. ‘We back everything from MBOs to early-stage and we do everything – finding the businesses, due diligence, making the investments and managing them to completion.’ Robins claims Hotbed fills a gap in the market, giving private investors access to deals that they wouldn’t otherwise find: ‘For instance, in November 2007, we invested in the MBO of Avocet Hardware, a supplier of fixings, nails and screws to the big DIY sheds such as B&Q and Wickes.’ Deal Envy of the Year Winner – Adconion Media Group Other nominees: Criteo, Dailymotion, Kiala, Metaversum, Nanoradio, Pangenetics, Steak Media, Seatwave Heralding what the judges considered to be the most exciting sale of the period in Europe, Deal Envy of the Year went to Index – yet again – and Wellington Partners (see July/August issue for interview with Wellington’s Eric Archambeau) for Munich-based online advertising network Adconion Media Group. Adconion, aiming to become the largest independent global exchange for digital advertising by the end of 2008, was nominated for having secured £40.9 million of ‘Series C’ funding in what represented the biggest venture investment in digital media in European history. Jon Moulton’s Triumph over Adversity Award Winner – Solar Integrated Technologies Other nominees: Kilgour, Little Chef, Orthagon, Shazam, Vibrant Media Walking off with Alchemy’s Triumph Over Adversity award was Solar Integrated Technologies, a provider of solar power-generating roofing systems. Losses of more than $17 million (£11.5 million) and $22 million were incurred for 2005 and 2006 respectively. But the company has turned the corner under new chief executive Randy MacEwen, who has effected an extraordinary turnaround. In 2007, the company finished the year on sales of $81.1 million, with $11.3 million cash on the balance sheet. VCT/FCPI of the Year Winner – AGF Other nominees: Beringea, Foresight, Isis Equity Partners, Matrix, Octopus Investments, OTC Asset Management, YFM Group (British Smaller Companies) In a category open to all VCTs, Fonds Commun de Placement dans l’Innovation (FCPI) and other government-promoted investment funds offering tax relief for private investors, the winner was AGF Private Equity. It caught the eye of the judges for the quality of its new investments in companies such as video-hosting service website Daily Motion and Criteo, a Paris-based deliverer of real-time personalised recommendations to online shoppers. The panel also appreciated a number of high-profile exits from AGF and strong fundraising against a tough backdrop. Service Provider of the Year Winner – Brown Rudnick Other nominees: Addleshaw Goddard, Kreos, Noble, Olswang, Spectrum In the opinion of the judging panel, international law firm Brown Rudnick stood out for going the extra mile for its VC and corporate clients. It has also been involved with fostering new talent, such as through Seedcamp, the week-long event for young entrepreneurs to showcase their early-stage strategies and product concepts. Equity Gap Fund of the Year Winner – High-Tech Gründerfonds Other nominees: The Capital Fund, Dotcorp, East Midlands Early Growth Fund, Eden Ventures, MTI, NESTA, NorthStar Equity Investors (North East Co-investment Fund), North West Business Investment Scheme, Oxford Capital Partners, Seraphim Capital (Seraphim Enterprise Capital Fund) Bagging the Equity Gap Fund of the Year gong was High-Tech Gründerfonds, rewarded for its ‘incredible’ level of activity in the German market and its hands-on approach to early-stage investments.This e272 million fund was set up by the German government (which put in e240 million), the KfW banking group, BASF, Siemens and Deutsche Telekom to invest in young high-tech businesses. ‘The key difference between our fund and other public funds is that they will only co-invest,’ explains Dr Alexander von Frankenberg, managing director of the fund since late 2005. ‘We, however, act as the lead investor and in many cases the only investor. We typically invest e500,000 in high-tech companies less than a year old. We are involved in everything from the optical industry to the semiconductor sector and life sciences. We have closed 126 investments since our formation.’