4. 0
5
10
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36
4
Number of years to become a billion dollar revenue company
$bn
5
years
35
years
15
years
5
years
8
years
Disruption is increasing in velocity and magnitude
5. 5
» Information
» Messaging
» Imaging
» Search
» Retailing
» Banking
» Entertainment
» Marketplaces
» Social networks
» Transportation
» Gaming
» Revolution
» Health
» Medicine
» Artificial intelligence
» 3D printing
» Currencies
» Energy
» Water
» Food
ARAB SPRING
SOLAR POWER
ENERGY STORAGE
CLEAN WATER
CRYPTOCURRENCY
AI MANUFACTURING
The low hanging fruits
Enabled by bandwidth
Enabled by smartphones
Taking care of basic needs
Enabled by Internet of Things
Steps of technology disruption
7. 7
The increasingly crowded Unicorn club
Source: CBInsights – Private Unicorns since 2011
Date of $1bn Valuation
8. UNICORN
HUNTING PERMIT
MUST CHECK SPECIMEN FOR SLOWING GROWTH
RATES, WEAK FUNDAMENTALS, AND HIGH CASH BURNS
SEASON
START
2016
8
Unicorn hunting season – justified?
9. 9
European Unicorns make money…
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016
Note: CAGR is calculated based on data available, the amount of years taken into account varies across data set; (1) % of sample, sample includes 37 of the 47
companies; (2) company profitability based of EBITDA
» Unprofitable Unicorns
sacrifice profit for growth
» Average CAGR for
unprofitable Unicorns
141% vs 49% for
profitable Unicorns
» Unprofitable companies
are on average 4 years
younger
(2)
(2)
(2)
(2)(2)
(2)
(2)
60%
of unicorns
are profitable(1)
PROFITABLE
UNICORNS
UNPROFITABLE
UNICORNS
40%
of unicorns
are unprofitable(1)
10. 10
Unicorns are being built everywhere
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016
» 10 new Unicorns spread across 7 different countries; US created 30
» Denmark and Switzerland created their first Unicorn
EUROPE US
SWEDEN
LUXEMBOURG
DENMARK
SWITZERLAND
ISRAEL
GERMANY
UK
30
10
11. 11
Country
Cumulative
Value
$39.6bn $31.1bn $20.8bn $4.7bn $7.2bn $3.4bn $9.3bn $8.0bn $4.0bn $2.3bn $1.6bn $1.1bn $1.1bn $1.0bn
No. of
Unicorns
18 7 6 4 3 3 2 2 1 1 1 1 1 1
LTM
Additions
2 1 2 1 0 2 0 0 0 0 0 1 1 1
Which country is the Unicorn champ?
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis as at April 2016
12. 12
12 $1bn tech businesses in the North
GP Bullhound Research – Northern Tech Revealed
Note: Valuation based on press estimates, most valuable defined as Northern headquartered businesses with valuations above $0.5bn as of 27 March 2017
*Indicates a private business
$8.6
$4.8
$2.4 $2.3
$1.9 $1.8
$1.5
$1.3 $1.1 $1.1 $1.0 $1.0 $0.9 $0.8 $0.8 $0.7 $0.6 $0.6 $0.5
$bn
25. Our next challenge...
Cumulative value of European unicorns ($bn)
Source: Company data, Capital IQ, Mergermarket, press articles, GP Bullhound analysis.
Note: valuations as of March 2017 25
736
408
116
63
32 31 27
Apple Facebook Europe Uber The North Airbnb Snap
27. LONDON
tel. +44 207 101 7560
52 Jermyn Street
London, SW1Y 6LX
United Kingdom
SAN FRANCISCO
tel. +1 415 986 0191
One Maritime Plaza Suite 1620
San Francisco, CA 94111
USA
STOCKHOLM
tel. +46 8 545 074 14
Birger Jarlsgatan 5
Stockholm, 111 45
Sweden
BERLIN
tel. +49 30 610 80 600
Oberwallstrasse 20
Berlin, 101 17
Germany
PARIS
tel. +33 1 82 88 43 40
45 rue de Lisbonne
75 008 Paris
France
MANCHESTER
tel. +44 161 413 5030
1 New York Street
Manchester, M1 4HD
United Kingdom
Notes de l'éditeur
Hc
Higher bar in Europe – rev multiples 2x higher in the US versus Europe – 20x versus 40x in the US
Also growing really fast – average over 99% pa
Raising lots of money
Average revenue $265m in 2014