Davor Hebel, Fidelity Ventures - presentation from TMT.Ventures'08 Zagreb (http://tmtevents.eu by New Europe Events)

1. The Balkans and Central Europe: a land of opportunity for global VCs and Entrepreneurs How to build, finance and exit successful companies Davor Hebel, Vice President, Fidelity Ventures TMT.Ventures’08 Zagreb

3. About us One of the largest global mutual funds: $2 trillion under management… … not so long ago Global VC and growth equity firm with over $1B under management across US, Europe, India and China Investing €3-30M in venture and growth equity investments in Western and Eastern Europe focused in Internet, Software, Media, and Clean Tech Vice President in London Croatian with first hand start-up bruises McKinsey, HBS Boards: Asset Control, Seatwave, Newbay Fidelity Investments Fidelity Ventures European Focus About Me

4. CEE and the Balkans opportunity for a global VC 2005: “eBay Buys Skype for $4.1 Billion” Estonian development Peer-to-peer VOIP software founded by Friis and Zanstrom (Kazaa) Global champions Regional champions 2008: “Forticom acquires controlling stake for $92M (~€100M valuation)” Polish Largest Polish social network built on Friends Reunited principle 2002: seed funding @ ~$2M valuation 2003/2004: 1 st and 2 nd rounds of funding 2006: NK founded by student Maciej Popowicz 2007: EFF buy 20% for €2M (€10M valuation) Source: public references

7. How much do you need and how can VCs help? Typical Pre-Money Valuation Required IRR Valuation/ Return 30% 50% 70% 100% <$1M $2-10M $10-30M $40M+ Series B Angel Series A Expansion Stage $10-15M Anything goes $3-5M Anything goes Typical raise Go-to-market Recruiting Connections General advice Recruiting Connections Product Recruiting Connections Exit Recruiting Connections VC help Old rules : software $30M, chips $50M, SaaS $60M, systems $100M New rules : web 2.0 <$10M, startup costs much lower (cloud, open source, moore’s law)

9. Reminder…you miss 100% of shots you don’t take Send me questions & thoughts: davor.hebel@fil.com