Transcript Diapositive 1

JULY 11th, 2011
THE FRENCH DIGITAL REVOLUTION
Marie EKELAND
Strictly confidential
DIGITAL ECONOMY, N°1 FRENCH GROWTH SECTOR
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Highest growth contribution to GDP*
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+25% between 2009 and 2010
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3.7% contribution to GDP in 2010 (€72bn) ► 5.5% estimate in 2015
E-commerce driving consumption
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€28.8bn in 2010 (+28% from 2009)
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27m online buyers (72% of internet users)
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7 to 12% of total consumption depending on category (books vs techno..)
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n°1 French e-commerce website: 10m buyers H2 2010
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*Sources: McKinsey(03/2011), ACSEL/PWC(05/2010)
CONSUMERS CATCHING UP
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Strong broadband penetration*
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38.2m internet users (60% population)
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89.1% broadband penetration rate (tiny cable presence)
Growing social networks with leader premium
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Facebook*: 22.7m members (36% population), n°8 country, +35%/year
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Twitter*: 2.4m members (4% population), n°17 country, +110%/year
Smartphones driving internet mobile usage*
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15.5m internet mobile users (25% population), +30%/year
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59% visits from iPhone, 22% Android (highest growth), 14% iPad
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*Sources: ComScore (12/2010), SocialBakers (03/2011), Mediamétrie (03/2011)
BUT ECONOMY STUCK ON OLD SCHEME
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Only 3 big R&D companies created since 1980* (vs 82 in the US)
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No high tech champions
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R&D spenders > 40 years old in average
Companies with 2009 R&D above 100m€
By seniority (FR-ALL-US)*
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Lack of R&D intensity*
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2.0% of GDP spent on R&D
(2.3% for OECD, 2.8% for US)
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Decrease since 1998
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*Source: Nicolas Von Bulow (06/2011)
CULTURAL LIMITS TO ECONOMIC DYNAMISM
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Lack of strategic M&A culture
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M&A usually to merge with competitor
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Key strategic acquisitions performed abroad
Illiquid IPO Market
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Few tech values
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Low risk culture: little appetite for equity investments
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Listing of high growth companies on US markets:
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STARTING TO MOVE
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Since 2010, some key accounts move forward
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The start-up scene is alive!
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Entrepreneurs, entrepreneurs & entrepreneurs
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Rise of an ecosystem
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Funding available at all development stages
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ENTREPRENEURS WELCOME
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Here comes the young generation!
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Serial entrepreneurs show the way
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AN ACTIVE ECOSYSTEM
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Incubators, accelerators, PE boutiques building presence
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Numerous tech events
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Specialized medias & blogs
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THE FINANCING CHAIN
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New super-angels & entrepreneurs funds, active in seed funding
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Shrinking of French based VCs, except for individual tax funds
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Greater presence of big European Funds
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Favorable tax schemes & subsides for start-ups
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TECHNOLOGICAL TRENDS: IT’S THE DATA, STUPID!
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Getting valuable data: A key challenge for audience monetization
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Generalist medias & social networks:
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Vertical or personalized medias:
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Web curation or live-, micro-, blogging platforms:
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Mobile applications:
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Social gaming:
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TECHNOLOGICAL TRENDS: IT’S THE DATA, STUPID!
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Crunching & computing data: taking the best of users data
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Retargeting:
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Signal identification:
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Personalized recommendations:
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Mobile & video ad-serving:
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Sites analytics:
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B2B data management:
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THE PERSONALIZED RETARGETING MODEL
EACH PERSONALIZED BANNER CREATED ON-THE-FLY TO
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MAXIMIZE RELEVANCE
AN AMAZING EFFECTIVENESS
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Full campaign transparency – True
ROI with CPC, no « view through »
pricing
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CPC can be automatically
optimized per product category to
meet conversion and ROAS goals
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CTR and conversion rates 6x
greater than RON or static
retargeting
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DRIVING AMAZING GROWTH
KEY MILESTONES
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2005 Company founded by Jean-Baptiste
Rudelle, serial entrepreneur
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2006 Investment of
based on a
personalized recommandation engine
2007 Focus on personalized retargeting for
advertisers, fundraising with
leading European VC
2008 Commercial launch, first French
customers
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2009 French hyper-growth, European launch,
JB Rudelle leaves for Palo-Alto
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2010 International expansion, first US
customers & investment of
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2011 Worldwide leader, expansion to search
KEY NUMBERS
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> 7 billions impressions per month
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6x increase in CTR & conversion rates
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300 employees
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20 countries
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> 1.000 clients in top retailers
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Profitable since July 2009
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70% of Top20 ComScore publishers
inventory access
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> 1 billion queries from Google RTB
answered within 120ms per day
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VOICE BIOMETRICS
IDENTIFYING VOICES REAL-TIME
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SPECIAL THANKS TO
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Cédric GIORGI – Seesmic
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Samantha JERUSALMY – Elaia Partners
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Hal LEVIN - TTI/Vanguard
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Pamela POOLE – Blogger
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Nicolas VON BULOW - Clipperton Finance
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APPENDIX
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ELAIA PARTNERS IN A NUTSHELL
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A committed & complementary team brought together by two passions:
Entrepreneurs & Digital Economy
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A premier brand in venture capital, thanks to its
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Best of breed performance: Elaia Ventures, sole European VC fund to
figure in first quartile of the 2003 vintage (Preqin)
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Digital expertise, sought by best entrepreneurs,
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Strong involvement on value-adding actions,
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Investment strategy, based on optimized money deployment & rigourous
portfolio management,
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LPs trust, who committed more than €80m since 2002.
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OPERATIONAL BACKGROUNDS WITH
COMPLEMENTARY VISIONS
Philippe Gire
Partner
Marie Ekeland
Partner
 Master in
Computer Science &
Economics
An IT manager
experience in Fixed
Income Front Office
systems
Xavier Lazarus
Partner
 Engineer
diploma
 PhD in
Mathematics
 A career in
consulting in
Information
Technology
 An e-learning
start-up, sold to a
publisher
 A joint VC experience since 2001