Building Global Giants

PRINT MAGAZINE DISTRIBUTED AT NOAH THIS INDEPENDENT INFORMILO PUBLICATION AIMS TO PROVIDE NOVEMBER 13 - 14, 2013 DEEP INSIGHTS INTO THE KEY TOPICS PRESENTED AT NOAH

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BUILDING GLOBAL GIANTS

How Big Can You Get? The question, posed long ago by famed musician Cab Calloway, is pertinent for both Europe’s Internet companies and their investors. What is the secret to conquering not just your home market but an entire region, and the globe?

The theme of the 2013 conference is, “How big can Europe’s Internet companies get?” In online verticals such as advertising, travel, commerce and gaming it appears that even the largest of Europe’s Internet companies have not even started to realize their potential. With significant growth possibilities still ahead they could well reach new heights. The advertising market is a prime example. Worldwide digital advertising spending levels — including online and mobile advertising spending — represented 21.7% of the total spent on ads in all media this year and is set to account for more than one-quarter of all ad spending. That means more than three quarters of the global advertising market is still up for grabs. Online leisure and unmanaged business travel in Europe was $246 billion in 2012 but only about 42% of the business is currently conducted online, according to a forecast in the European Online Travel Overview, Eight Edition, by Pho- CusWright, a research company special- izing in global travel. In commerce, too, the biggest opportunities are yet to come. In 2012 more Europeans consumers bought videos/ DVDs, music, event tickets and computer software online than offline. And Europe will be the largest eBook market in the HOW BIG CAN EUROPE’S world by 2017, with revenues of $19 billion, according to Forrester Research. It predicts online retail sales in Europe will INTERNET COMPANIES GET? reach ¤191 billion by 2017, up from ¤112 billion in 2012, reflecting an 11% compound and 2016, increasing to $163 billion from then, that companies that understand annual growth rate over the next five years. BY JENNIFER L. SCHENKER $87.3 billion. Digital ad spending is in fact how to operate in this new environment And, despite impressive growth in coun- growing faster than total media ad spend- like France’s Criteo, Germany’s Adtel- tries such as Germany, Britain and France, It is not surprising that Paris-based ing and will drive overall growth in ad ligence, the UK’s Unruly Media, and online commerce still only represent less Criteo, an ad tech company that prices spend. That is because as more people be- Israel’s Outbrain, are generating lots than 14% percent of overall commerce and supplies personalized advertising come Internet and mobile Internet users, of excitement. in real time for its e-commerce clients, marketers across the globe are expected These ad tech companies plus oth- CONTINUED ON PAGE 22 had an upsized IPO on NASDAQ in to continue to increase their budgets for ers including Buzzing, Viewster, Rank late October. online and mobile advertising. Above, Perform Group and Populis, will Worldwide digital ad spending topped If the pundits are right, the effective- all present at NOAH Conference, an an- SEE INSIDE $100 billion in 2012, according to eMar- ness of those ads will depend largely nual event focused on late-stage Internet FOR EUROPE AND ISRAEL’S keter. And digital ad expenditures are on personalization and other types of companies; this year it is expected to at- TOP 25 FASTEST-GROWING projected to nearly double between 2012 effective targeting. It is little wonder tract some 2,000 attendees. INTERNET COMPANIES

WHERE BUSINESS MEETS INNOVATION BUILDING GLOBAL GIANTS

THIS MAGAZINE WAS PRODUCED BY INFORMILO, A MEDIA COMPANY THAT SPECIALIZES IN CONNECTING BUSINESS WITH INNOVATION. INFORMILO RUNS A NEWS SITE, WWW.INFORMILO.COM, AND PUBLISHES INDEPENDENT MAGAZINES CONNECTED TO MAJOR INDUSTRY CONFERENCES. Digital That entrepreneurial mindset is cru- JENNIFER L. SCHENKER: EDITOR-IN-CHIEF AUDREY MANDELA: CONTRIBUTING EDITOR cial for succeeding in classifieds, whose ERIC SYLVERS, D’ARCY DORAN, core is individuals selling things, says Real BRUCE CRUMLEY: CONTRIBUTING WRITERS Web’s Piccione. “This is probably the best DESIGN: THEDESIGNSURGERY.CO.UK industry for an entrepreneur,” he says. “We come from a technology back- Reboot ground, so we want to offer consumers CONTENTS new technology ahead of the competi- Do today’s digital classified leaders think their tion,” he says. His company prides itself on its top-rated mobile apps, which industry could be on the brink of another wave of include features such as giving users 01 22 23 HOW BIG CAN EUROPE’S INTERNET COMPANIES GET? the ability to search real estate listings disruption? “Absolutely” says Martin Frey, the CEO by drawing a circle with a finger on a 02 03 EUROPE’S FAST- of Blocket.se, Sweden’s most popular classified site, city map. GROWING ONLINE The print classified market was not CLASSIFIED AD SECTOR echoing the answer of every CEO Informilo spoke very developed in Turkey before the In- ternet. So for sectors like job classifieds, 04 05 EUROPE’S GOT GAME to for this article. The answer: disrupt yourself. “the market pretty much moved on directly to online,” explains Yusuf Azoz, 06 TURNING ADS INTO VIRAL MEGA-HITS CEO of the country’s first career portal Kariyer.net. Azoz is also a scheduled 07 ADTELLIGENCE BY D’ARCY DORAN speaker at Noah London. He sees massive opportunities in Turkey where only 08 HOW ETORO SCALED The way to capture the story of classi- ten the problem with this industry is we half of the country’s 2.4 million registered fied advertising in the 21st century is have a very defensive way of thinking. companies have made the transition to 09 21 RECRUITING TALENT IS OFTEN THE TOUGHEST simple, says Peter Zollman, a former We want to protect business rather than digital. Of the 600,000 companies that PART OF SCALING UP newspaperman turned interactive occupy new territories. If you think that Azoz believes could benefit from online media and digital classified consultant. way in business, very often you become a recruitment, just under 50,000 deal with 10 11 PREPARING TO EXIT Imagine an “X.” The line that sweeps loser,” says Schibsted Sweden CEO Raoul Kariyer, “which means we have only down, left to right, is that of major U.S. Grünthal. “You must try to win the game,” tapped 8% of the addressable market.” 12 13 ¤7 MILLION, SEVEN CONTESTANTS, SEVEN newspapers’ classified advertising rev- he says, “not only to protect your business; Ever-improving technology will be key JUDGES…THREE WINNERS enues. The rising line is Craigslist’s. it’s a state of mind.” to expanding its market share. “Online “Just compare the two, the change is Speak to more than one online mar- classifieds businesses need to exploit mo- 14 15 TOP 25 HOTTEST LATE-STAGE very dynamic and very telling,” says Zoll- ketplace CEO and you will quickly get bile, social media and also big data,” Azoz COMPANIES IN EUROPE man, a founding principal of the AIM the sense that if the industry had a theme says. In addition to seeing the number of Group, U.S.-based international classified song, it would probably be Abba’s “The job applications submitted by mobile rise 16 17 18 WHO TO PITCH AT NOAH advertising consultants and a scheduled Winner Takes It All.” to 15% of the total, the company has de- speaker at NOAH 2013 in London. “We believe this business is about veloped a popular big data product called 19 DEALROOM: EUROPE’S NEW It’s a raw story of disruption, but it’s being the market leader,” says Andrea ILUSTRATION: ADVANCED INTERACTIVE “Career Map.” VERSION OF ANGEL LIST MEDIA GROUP LLC / AIMGROUP.COM also striking that the product itself, the Piccione, the CEO of Italy-based Real “Career Map guides university stu- 20 DEALROOM: EUROPE’S NEW classified ad, from Avito to eBay, is a natu- Web, who was previously eBay’s gen- dents, graduates and even high school VERSION OF ANGEL LIST ral on the Internet. The Norwegian media eral manager in Italy, another scheduled seniors in their career planning,” Azoz group Schibsted, one the best examples speaker at NOAH. Real Web’s assets in- Since newspapers lost their monopoly on classified advertising, the competition has only intensified. Innovation has become a key factor for global giants and says. “The platform is online and uses THE INFORMATION CONTAINED IN THIS PUBLICATION WAS of a traditional newspaper publisher that clude real estate sites Immobiliare.it and “Of course it’s tough to see their challengers as they jostle for top position in their markets. AIM Group’s General Classifieds 2013 Annual report looks at who is winning. Kariyer.net’s CV database in order to visu- COMPILED USING ETHICAL JOURNALISM PROCEDURES. has transformed into a digital dynamo, is Eurekasa.it and insurance sites Facile.it, alize the career graph of Turkey. Users NO LEGAL LIABILITY CAN BE ACCEPTED FOR ANY ERRORS. NO PART OF THIS PUBLICATION MAY BE REPRODUCED fond of saying “the Internet is made for Assicurazione.it and Mutui.it, as well as that the traditional business can enter the faculty and university name WITHOUT THE PRIOR CONSENT OF INFORMILO. classifieds and classifieds are made for the Seguros.es in Spain, Oferty.net in Poland is suffering. At the same time, of where they study and get real statistics Internet.” Indeed, classified advertising and Spiti24 in Greece. about which industries, departments, is thriving, with more ordinary people “The power to execute is much, much you must look into the future it’s going to take some years to become the company for the next big disruption, pact, AIM’s Zollman says. He points to cities, and so on, graduates are currently than ever using them to buy and sell — it’s bigger if you are the market leader so we and that’s the only way to do number one. If we don’t believe that we whatever it may be. the example of Turkey’s sahibinden.com working in.” just now the marketplaces they flock to want to have the privilege to keep invest- will become number one, then we don’t “If you do it once, it’s much easier to general classified site, which started a One of the biggest benefits of classi- are online. ing and keep innovating that only the mar- it. Very often the problem with believe that we should be in that market.” do twice,” Grünthal says. “Also I think feature a few years ago where you could fied advertising’s tech revolution is that SUBSCRIBE TO INFORMILO PUBLICATIONS Disrupting yourself is a feat few pull ket leadership provides,” says Piccione. this industry is we have a very Do today’s digital classified leaders we were a little bit lucky because the first move a free ad to the top of the listings it makes winning ideas scalable, says off. Schibsted did it by setting up aggres- At Schibsted, “We are here to win” has defensive way of thinking. We think their industry could be on the brink time we really tried this — to disrupt our- for around a euro. “It was easy, it was Schibsted’s Grünthal. “The big change INFORMILO IS THE OFFICIAL MEDIA sive dedicated classified sites and acquir- been enshrined as one of the company’s of another wave of disruption? “Absolute- selves — it was in the classifieds business effective and it was cheap and they made is it tends to be a global business when it PARTNER OF SOME OF THE INDUSTRY’S ing successful start-ups. As traditional core values. Being number one is the best want to protect business rather ly” Frey says, echoing the answer of every and it was successful. Of course it’s much millions of euros,” he says. ”Now top up is becomes digital,” he says, adding Schib- TOP INVITATION-ONLY EVENTS AS newspaper groups fought to protect local way to guarantee a critical mass of buyers than occupy new territories. If CEO Informilo spoke to for this article. easier when you have had a success to a very, very common feature at classified sted’s central focus is Europe but the CONFERENCES. AS MEDIA PARTNERS, classified monopolies and their margins, and sellers who turn to your site first, says Across Schibsted, teams are constantly take a second step. Media groups that companies all over the world. It’s a small company is excited by opportunities in WE PUBLISH INDEPENDENT PRINT Schibsted took the opposite approach Martin Frey, the CEO of Blocket.se, Swe- you think that way in business, looking over their shoulders for upstart are not successful in their first digital step fee but they do that hundreds of thousand BRIC countries. “We would never have MAGAZINES THAT ARE HANDED OUT TO and cannibalized the business’s jewels, den’s most popular classified site. This is very often you become a loser,” rivals, he says. Copycats are not a con- have much more difficulties in taking a of times or even millions of times.” been able to create the same global struc- ATTENDEES OF THE CONFERENCES IN such as Aftenposten, Norway’s largest a concept that Blocket.se has now taken cern, but what Frey says they do worry second one.” Classified innovators are also always ture in a print market; that’s impossible. PAPER FORM, AND DISTRIBUTED AS PDFS newspapers, established in 1869. into 30 other markets. Schibsted bought says Schibsted Sweden CEO about is someone coming along with a For Schibsted, keeping its edge re- looking for new sectors to venture into. In But in a digital market, it’s perfectly pos- PRIOR TO THE EVENTS. (Schibsted Media Group’s CEO Rolv the company so it is now a subsidiary of Raoul Grünthal. “You must try completely new model for classifieds. quires constant innovation. Teams are Sweden, for instance, Schibsted is branch- sible for a Scandinavian company to have Erik Ryssdal is also scheduled to speak Schibsted Classified. “We haven’t seen any signs of that, not constantly tweaking and developing ing into the personal finance sector. “We global ambitions.” SUBSCRIPTIONS IN BOTH PAPER AND PDF at NOAH 2013 in London.) “For the Blocket concept, we believe to win the game,” he says, “not internationally either, of any totally new to make transactions easier and safer. think it is a market that is really being dis- FORMAT ARE AVAILABLE FOR AN ANNUAL “Of course it’s tough to see that the it’s a winner takes it all market,” Frey only to protect your business; ways of running a classified site, but we “Most of the innovation is just about rupted right now,” Grünthal says, stressing FEE OF €1,000. FOR MORE INFORMATION traditional business is suffering. At the says. “So when we go into a new market, have to look out for that.” improving rather than breakthroughs the importance of being entrepreneurial PLEASE EMAIL [email protected] same time, you must look into the future the goal is to become number one. But we it’s a state of mind.” Schibsted Sweden’s Grünthal says the or big bangs,” Frey says. and working with entrepreneurs who can and that’s the only way to do it. Very of- go in for the long term because we know lessons of the past decade have prepared Simple additions can have a big im- bring in new expertise and products.

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WHERE BUSINESS MEETS INNOVATION BUILDING GLOBAL GIANTS

Riccardo Zacconi, King.com’s chief executive and IOS/ANDROID: co-founder. Europe’s Got Game MOBILE & TABLET USAGE ular Minecraft game, released a Lego Europe is producing not only venture-backed category leaders set based on the game. It also collabo- rates with an online game merchandise in gaming but the Disney-like entertainment companies of the future store to sell Minecraft merchandise, such as clothing, foam pickaxes, and toys crafted to look like the creatures in the game. And, in March of this year, Mojang signed a deal with a children’s book publisher to create Minecraft post- ers, books, and magazines. The parallel with Disney’s business GAMES: 53% PRODUCTIVITY: 2% model is apt, says Mind Candy founder SOCIAL NETWORK: 26% HEALTH & FITNESS: 1% Acton Smith. The difference, he explains, ENTERTAINMENT: 10% LIFESTYLE: 1% is that from day one, Mind Candy — and UTILITIES: 10% OTHER: 5% its Moshi Monsters franchise — was built NEWS: 2% with digital at the heart. After launching an album, toys, trading cards, clothing, movies and TV shows Mind Candy, which has about 85 million registered TOP 5 COUNTRIES users, is focusing on building new IP. It FOR MOBILE APP wants to launch new brands into new demographics on new platforms, says REVENUE Acton Smith. “It is a very exciting way to create longevity.”

UNITED STATES JAPAN

own football clubs, was also formed by runs of the tech world: it claims to have tight-knit industry veterans. The found- reached its first 10 million users in just ers went to school together and later 270 days, much faster than it took Twitter CHINA worked at Microsoft together. “The first and Facebook to reach those numbers. 20 people at the company were all people The quick traction helped Peak Games, Ilkka Paananen, one of six co-founders of gaming company Supercell we knew or our friends did,” says CEO which now has about 150 employees and Branko Milutinović. Team loyalty runs 50 contractors based in Turkey, Jordan NEED DEVELOPMENT CAPACITY? percell, was the founder of Sumea, which company’s CEO for six years. In 2010 he deep, an ingredient that he and others and Saudi Arabia, to raise $30 million BY JENNIFER L. SCHENKER developed games like Yo Yo Fighter quit Digital Chocolate and rounded up a say is missing in Silicon Valley, where from investors that include Earlybird which were distributed via mobile op- team of people from gaming developers UNITED KINGDOM SOUTH KOREA people move from job to job for perks Venture Capital, Hummingbird Ven- It wasn’t long ago that people ques- erators such as Vodafone, O2, Orange, like Remedy Entertainment. and higher salaries. tures, Endeavor Catalyst and an investor tioned whether start-ups could produce AT&T, T-Mobile and Cingular. Sumea Nordeus, a fast-growing gaming com- SOURCE: “European gaming developers work from the Middle East. (For more on Peak big outcomes and generate superior was sold to Digital Chocolate in 2004 pany based in Belgrade that makes a so- FLURRY, APPANNIE, GARTNER together for a lot longer” agrees Mind Games turn to page 20.) returns in Europe. Not any more. Eu- and Paananen served as the acquiring cial game that enables people to run their Candy founder Michael Acton Smith. He Both Nordeus and Peak Games report rope is proving to be particularly adept points out that “the core team at King. huge spikes in the number of mobile users. at creating venture-backed category com have been going for over a decade.” Peak Games’s most successful games — leaders in the gaming space. REGIONAL MOBILE/ONLINE GAMES REVENUE ($B) Milutinović says he believes that Eu- which are offered over both the Android King.com, which is rumored to have ropeans have another advantage: since and iOS platforms — already earn more We develop your internet projects. Offshore. filed for an IPO giving the company a 50 there is a need to go global from day than half of their revenues from mobile. valuation of between $5 billion and $7 one they spend a lot of time and energy Nordeus reports that mobile is growing billion, and Israeli gaming companies adapting their products to local markets. 300% to 500%. — FAST CAGR (12-16F) 12.2% such as Plarium, Playtika and 888 have 40 Nordeus, which has five million daily The danger, for any of these compa- Usually we can start working on your project TODAY become strong global players by putting users, is available in 40 languages. And nies — and the reason why some inves- their IP on the Facebook platform. it accepts whatever payment works in tors don’t like the space — is that fans are — COST EFFICIENT 30 Then there is Supercell, which just sold local markets. In the U.S. and Canada it fickle. A game that is number one on the Usually we can cut Western European development cost in HALF 51% of its shares to SoftBank and GungHo is PayPal. In other markets people pay IPad or the iPhone one week may fall out for $1.5 billion. The Finnish gaming com- via SMS message, by buying vouchers at of favor the next. pany had the fastest revenue growth of any 20 a kiosk or via all kinds of varied credit Finland’s Rovio, the company be - — RELIABLE start-up Accel Partners has ever invested in systems, he says. hind Angry Birds, and the U.K.’s Mind We stick to agreed deadlines and deliver solid documentation worldwide. That is saying something given Turkey’s Peak Games also localizes: Candy are trying to insulate themselves 10 Accel’s track record — it is an investor in it offers both digital and mobile ver - by concentrating on building the global — EXPERIENCED Facebook, Wonga, Qliktech and Rovio. sions of traditional Turkish board, card entertainment companies of the future. Supercell’s success can be partly at- and tabletop games and Western games Other European gaming companies We deliver in all major development languages for web and mobile 0 tributed to its tablet-first approach. But adapted for Turkey and Arabic-speaking are following suit. Russia’s ZeptoLab, an important ingredient is the fact that 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F 2016F companies. It has 12 million daily users in the maker of Cut The Rope, has extend- the founders all knew each other and Turkey and the Middle East and is grow- ed its franchise into toys, board games, SOURCE: globalcoders.com had worked in the sector for years. Ilkka North America Europe Asia Pacific Latin America SOURCES: PWC (EXCLUDES HARDWARE REVENUE), COMPANIES ing rapidly. Its phenomenal growth puts clothing and online entertainment. And Paananen, one of six co-founders of Su- it in the same league as some of the home Sweden’s Mojang, the maker of the pop-

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WHERE BUSINESS MEETS INNOVATION BUILDING GLOBAL GIANTS

Turning Ads Into The Age Of Viral Mega-Hits Personalized BY D’ARCY DORON

Visitors to Unruly Media’s headquarters a scheduled speaker at the 2013 Noah are greeted by statements spelled out in conference in London, which takes place cursive neon that speak volumes about November 13th and 14th. Advertising the London-based start-up’s focus. Wood points to a recent Adobe study in The quotes — “nyan, nyan, nyan,” “Go which 76% of marketers said their work has BY D’ARCY DORAN tell that, homeboy,” and “Boom goes the changed more in two years than in the past “Roller Babies,” an Evian video of computer-generated infants in diapers and roller blades jamming in New York’s dynamite,” from Nyan Cat, Antoine Dodson 50. “The rate of change is enormous,” she Central Park, was distributed on Unruly Media’s network, alongside YouTube, and Unruly also promoted it heavily on and internet sportscaster Brian Collins, may says. “For brands, the challenge is to know Twitter. The video broke the 2009 world record for the most-viewed online advertisement in history. Before making the movie “Minority You already see it happening, he says. have yet to enter the canon, but search for which new technologies, which new devices, Report,” Steven Spielberg was strug- Google algorithms personalize search their names and you will see that each be- which new platforms to be responding to.” gling to imagine life in 2050. So he results based on your history and serve came an overnight sensation after millions While Unruly may seem perfectly so Unruly aggregated a network of sites to Unruly distributes content to the corners of assembled a group of leading science targeted ads. Yahoo! delivers different shared videos of them online, helping to placed now, it wasn’t that way in the be- help distribute content. “We started out the web where it is most likely to be shared. and technology thinkers to spend a headlines to each visitor. Then there’s generate hundreds of millions more views. ginning, the co-founders say. “We didn’t with tens of sites and now we’ve got about “This is really important because suc- weekend dreaming up the future. One the personalized recommendations on Unruly Media tracks video on the so- really know what the idea was going to 25,000 media partners,” Button says, add- cess happens much faster than it ever has,” of the film’s most memorable depic- Amazon’s landing page. cial web and how the esoteric can sud- be,” Wood recalls. “We just knew the ing that the global audience is now a billion. Wood says. “You fail or succeed within tions was the personalized advertising, Adtelligence works with more than 100 denly go stratospheric. Companies in social web was taking off. There was a Alongside the distribution, marketers hours. It’s really important for brands to be where in-store and outdoor advertising companies, offering them technology that all sectors are searching for better ways massive opportunity to be part of that. became interested anew in analytics. “We launching a campaign simultaneously with addressed consumers directly, taking customizes web pages on the fly based on to measure the impact of their tweets, Then the idea followed.” have predictive technology so we come in a big seed approach, gathering as many into account the person’s context and customer demographics, social network- Facebook updates, YouTube videos and “Or several ideas,” Button says, jump- at all points in the life cycle,” Wood says. shares as possible in that first day because past purchases. ing, and product interest information. other bids to engage the public. Unruly ing in. “The first idea’s often wrong. We “Our product, ShareRank, algorithmically day two tends to be the sharing peak.” What shocked the consultants the The company’s business had been shares with brands what it has learned launched a social media analytics prod- predicts the success of a video before it’s Unruly has grown to 135 employees most was how quickly their predictions concentrated in Europe until now, but it from watching, tracking and analyzing uct in 2006 and it was just way too early. launched. When brands would come to with 10 offices around the world, gener- came true. has already started working with clients thousands of videos to help improve their We’d get a few paying customers but not us and say, ‘What do you think? What ating £17.6 million in revenue last year. “What we thought would take 50 years in the United States and is in talks with online video content and spread it across enough to generate a business.” should we do? What’s our strategy?’ It Demand is pulling the company to expand took 15,” Douglas Coupland, author of potential clients in Japan. Adtelligence the Internet. With the entire Internet Unruly Media used its analytics data en- felt very anecdotal and is very hard to be into Latin America and Asia-Pacific mar- “Generation X” and one of the 1999 Spiel- has built up experience across nearly essentially powered by advertisements, gine to tabulate the most-shared videos on tethered to any facts. So what we wanted kets, Button says. berg Summit’s participants, told an audi- every e-commerce sector including travel the opportunity to provide more accurate, their website. “The consumer-facing website to do was bring in data-driven creativity Mobile is a definite focus for the future, ence in London last month. sites like Opodo and eDreams, rental car higher-value, smarter ads is huge. was interesting enough, and had enough trac- and data-driven consultancy.” Wood says. “But in terms of talking about Michael Altendorf, the founder and company Sixt, fashion retailer Zalando, “We’re growing rapidly because we’re tion in terms of audience, that UK marketers ShareRank scores videos on more than a product, it would be crazy for us to talk CEO of Adtelligence and a scheduled gaming companies Travian Games and sitting at the intersection of the biggest, would come to us and say, ‘Can you put on 100 variables, testing emotional response, so- about a two-year-plan because everything speaker at NOAH 2013 in London No- ProSieben Games and car classifieds au- fastest-growing trends in all of adver- my commercial campaign while we’re here cial motivation and special attributes. Based will have changed again in two years.” vember 13th and 14th, is one of the people tohaus24 and larger “eBay-scale” brands tising: mobile, video, social,” says COO and give that some promotion?’” on the answers, it helps brands fine-tune con- at the forefront of personalized market- that Altendorf says he cannot name for On these screens, Adtelligence demonstrates how a 24-year-old male might see a generic fashion Sarah Wood. At her side in the “Nyan” But the chart’s audience alone wasn’t a tent, or choose from several creative options. ing, helping brands harness big data and competitive reasons. retail site before and after personalization. “If you know who’s coming ... it definitely makes sense meeting room sits CEO Scott Button, strong enough proposition for marketers With data from thousands of campaigns, machine learning to tailor their web sites So far in every case, personalizing the — especially if they’re on a mobile phone, to show much more tailored content or products,” founder so that they look different to each cus- user experience has a dramatic effect, Michael Altendorf says. tomer. His Mannheim, Germany-based significantly boosting conversion rates Top 10 Most Shared Ads of 2013 Source: Unruly Media company was named a 2014 Technology and revenues, he says. RANKING COMPANY NAME OF CAMPAIGN AGENCY SHARES (MILLIONS) RANKING COMPANY NAME OF CAMPAIGN AGENCY SHARES (MILLIONS) Pioneer by the World Economic Forum in “We are all individuals; you and your recognition of the potential its technology wife have different interests,” he says. they’ll just buy 20% more. It’s because This is what we will try to learn from: 01 06 offers to influence and shape the future “If you know who’s coming, what time the brand is much stronger in Munich so the product graph, interest graph, search Real of business and society. and where they are, it definitely makes they’ll buy more with the orange because graph. Then we try to put it all together.” Ogilvy & Budweiser Brotherhood Dove Beauty Mather 4.21 Anomaly 2.72 Worldwide, digital ad spending topped sense — especially if they’re on a mobile of the branding.” Personalization might not look like Sketches $100 billion in 2012, according to eMar- phone, to show much more tailored con- The larger the site, often the bigger the Minority Report yet. On desktops, we log keter. (See the story on pages 1, 22 and 23 tent or products.” lift in sales, he says. This is particularly in and out of sites but our mobile, which is 02 07 for more on on-line advertising trends.) Customization could be a retailer re- because larger brands’ sites were first fast becoming people’s primary device, is The And digital ad expenditures are projected ranking a selection of millions of products designed 10 to 20 years ago, long before always logged in, Altendorf says. Mobiles Hump Martin Pepsi Test TBWA\ GEICO Day 3.95 Max Drive Chiat\Day 2.68 to nearly double between 2012 and 2016, to show the top 10 that are most likely to personalization was possible. “If you take are key to sending and receiving practical Agency increasing to $163 billion from $87.3 bil- appeal to the customer. For example, a these sites, sometimes huge clients make personalized information. lion. If pundits are right, the effective- man shopping for clothes isn’t interested uplifts of 30% to 40% plus,” Altendorf “For instance, if you know you fly to- ness of those ads will depend largely on in women’s fashion. Or it could be a travel says. “This is, for them, unbelievable.” morrow from London to Barcelona, we 03 08 MGM Telekinetic personalization. The companies that site changing the destinations it promotes To prove the technology, Adtelligence know we can tell three hours before how Evian Baby & BETC 3.28 for film Me remake of Coffee Shop Thinkmodo 2.8 understand how to operate in this new based on the user’s location. People in will normally take 10% of a site’s traffic long you will be in traffic. We know when “Carrie” Surprise environment are hot. Witness Criteo, an London are more likely to want to fly to for a month. Then once they can show it you arrive on your gate at the airport. We ad-targeting company that prices and Barcelona, than Munich, Altendorf says. works, all traffic is routed through Adtel- can show you the parking lot. We can 04 09 supplies personalized advertising in real Or, it could even mean changing the ligence’s system. show you the way to the gate,” he says. Ram The time for its e-commerce clients. It listed site’s appearance to better suit visitors’ “It’s like a cloud layer that is on top of The mass adoption of Google Glass and Ship My on NASDAQ in late October, raising $251 layout or color preferences. “We have a the shop … Then once somebody clicks other wearable smart devices will only Kmart Pants draftfcb 3.04 Trucks Farmer Richards 1.87 (Chrysler) Group million in an upsized IPO that is further car rental service that found if you rent a on the product and puts it in the basket, open more possibilities. increasing excitement around the sector. car in Munich there’s better conversion you jump into the shop system,” he says. “This big wall between anonymized 05 10 “We are going from a totally anony- rate if you show the site differently than “The data is owned by the e-commerce web and personalized web is falling Yalın - Keyfi Mofilm TrueMove mous Internet — where we knew a bit you would in Berlin. And to be honest, it shop. Especially the profiles. The only away,” Altendorf says. Yolunda, and Ridley (Thai Unknown/ Cornetto 2.89 Giving 1.24 about you, but not everything — to a to- works,” Altendorf recounts. “In Munich, thing we are interested in is the correla- Aşkı Scott telecoms in-house Sonunda Associates company) tally personalized web where we know the background has to be orange, but in tions between GPS location, the kind of everything about you,” says Altendorf. Berlin they love a white background and device and the product ID, for example.

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WHERE BUSINESS MEETS INNOVATION BUILDING GLOBAL GIANTS

more network lines and of course, hiring Director eventually became the CEO of the new people.” company and achieved a successful exit. How eToro Successfully Scaled Recruiting good people is a real challenge, Recruiting Top Talent Remains “The conversation needs to take place early says Assia. “I am here seven years and on as part of the wider discussion between 30% of my time every week is dedicated founders and investors about targets, finan- to interviewing job candidates. When you cial and skill limitations, what the VC’s exit Its Online Stock-Trading Business launch a company you think about all the One Of The Biggest Challenges plans are,” says Forsyth. “That prepares things you have to do — write a business the map showing where the boundaries plan, raise money — but you never take are and where the bridges that must be eToro founder and chief into account how difficult it is to find good crossed lie… In terms of recruitment, it’s product officer Ronen Assia people. And when you are facing hardcore To Scaling Up obviously best if there’s as much alignment engineering challenges focusing on getting as possible between the board and found- the right people is even more important. ers on when help should be called in, and Israel has expertise in enterprise software what kind of person and experience will but a bit less on large-scale Internet solu- be needed. It’s an important, often critical, encourage them to share information. The tions so for us it was really challenging step; it’s far better if everyone is pulling in theory — which is now being backed up to find the right people to deal with that the same direction.” by research at MIT’s Media Lab — is that task.” eToro’s head count was around 80 sharing information in social network- people when it launched eToro OpenBook ing communities can significantly boost in the summer of 2011. Today some 240 “On average my developers stock-trading returns. people work for the company. “When we launched we did not know if One of the things eToro learned is that get about 16 recruiting calls 90% of our users would want to do social when you launch a cutting edge prod- per week, which explains why trades or less than a tenth of one percent,” uct on the Web you have to stay alert to says founder and chief product officer changes in the marketplace. “Before, we we joke about there being Ronen Assia, who was interviewed for would do a major new release every two more headhunters than there this article. It turned out to be the former. or three months,” says Assia. “But after Social stock trading proved to be a hit with eToro OpenBook launched we had to are good tech employees out millennials and within 18 months eToro learn how to do new releases very fre- BY there,” says HouseTrip CEO JENNIFER L. SCHENKER went from processing 50,000 transac- quently — once every week or at least once tions a day to north of a million. “All of the every two weeks. You have to constantly Arnaud Bertrand — who Every start-up dreams of the day when founded in 2007 by David Ring and broth- growth was attributed to the copy trader change the features. Removing is even has had to rely so heavily traffic to its website will jump from ers Yoni and Ronen Assia and splits its feature,” says Assia. more important than adding. The whole on farther-afield markets in thousands to millions. But, as the old operations between London and Tel Aviv, The platform had an immediate appeal company had to do that much more effi- proverb says, be careful what you had a chat feature, but most users chose for digital natives, who would never visit ciently. It is very different than developing central Europe to find qualified wish for because it just might come to guard their anonymity and keep their their parents’ stockbroker but were open a trading system — especially now with candidates that the tech team true. Scaling up isn’t easy, as eToro, trades secret. By 2011 the site — which to learning from their peers. Before the the introduction of mobile.” the world’s largest social trading net- never gave investment advice — was han- social trading platform was introduced eToro began as a desktop application, of his London-based company work, discovered in the summer of dling around 50,000 trades a day. Then eToro offered broker-like functionality then moved onto the Web and then onto has virtually no UK natives. 2011, when it first launched its social eToro decided to make a bold move. It with some social features layered on top. mobile. “So, unlike a company that starts trading product. introduced eToro OpenBook, a social trad- Trades had to be done manually — users with mobile or is mobile only we had to “We just hired a CPO we spent The story of how the company, which ing platform that allows users to follow clicked a button to buy or sell. But once take big products with lots of functionality more than a year, and over has raised $31.5 million in venture capi- and copy other traders in real time. eToro the social platform was introduced us- and features built in and be very focused tal, coped with a huge surge in traffic and allows digital natives who are novices to ers could click “copy” and then all of the about how to minimize and turn the mo- 70 interviews, to find, simply tripling the number of its employees in a stock trading to participate in the market trades made by the person being copied bile product into something that is very because the pool of talent is compressed time period provides insights by allowing them to see what others are would automatically be mimicked. “This eToro-ian,” says Assia. “It meant putting The management team of vacation housing service Housetrip. Founder and CEO Arnaud Bertrand says he’d expand his staff of 200 — and double his current tech team of 30 that could prove useful to other European investing in and then copy them. eToro really stretched our system to the limit,” lots of product managers into a room and people — if he could find enough qualified candidates to fill the jobs he needs to build his otherwise booming business. so limited, and competition for and Israeli companies that are scaling fast. pays the traders who allow themselves says Assia. “We spent lots of sleepless having quite heated discussions about it is so huge.” From the beginning, eToro, which was to be followed up to $7,500 per month to nights at the office adding more servers, which features get included in the mini - BY BRUCE CRUMLEY ers than there are good tech employees out founders with the entrepreneurial tools and mum viable product and which ones get there,” says Bertrand — who has had to rely skills required to make the business suc- thrown out. There is lots of stuff on the so heavily on farther-afield markets in cen- cessful and profitable in the longer run,” The scenario to avoid at all costs is one in desktop that is not available on the mobile. Arnaud Bertrand has a big problem — one tral Europe to find qualified candidates that notes angel investor Måns Hultman, who which the founding leaders and CEO find Growth in the number of eToro Active Users Source: eToro We had to look at it from the perspective to which most managers of flourishing the tech team of his London-based company as CEO of business intelligence company themselves backed into a corner by financial of, ‘what is the experience that the user start-ups across Europe can sadly relate. has virtually no UK natives. “We just hired QlikTech made several outside recruitment backers, with no option left but to submit, will look for when they want to log in from The founder and CEO of vacation housing a CPO we spent more than a year, and over moves that helped drive growth in revenue surrender, or scram. More often then not, 200000 a mobile device? What is the essence of service HouseTrip.com, and a scheduled 70 interviews, to find, simply because the rate to 650%. “Taking companies to higher however, this type of dire drama is averted what they need and want?’” speaker at the NOAH Conference, an an- pool of talent is so limited, and competition levels is what entrepreneurs are all about, by continuing consultation and a degree of eToro appears to have gotten the formula nual event in London which this year is for it is so huge,” says Bertrand. “It’s almost and that relies less on creativity and flair compromise. Sara Thomas, CEO of Aspen right. It now has more than three mil- expected to attract around 2,000 people, like a war.” than on fixing objectives and a plan to obtain Worldwide, says she knows of one tech 150000 lion traders in more than 200 countries Bertrand says he’d expand his staff of 200 The battle for tech talent is creating a boom them — then sticking determinedly to it.” company whose iconic, charismatic founder and its users have performed just shy of — and double his current tech team of 30 market for recruitment specialists such as Early-stage founders, having exhausted initially rejected investor urgings to accept 100 million trades since January of 2012. people — if he could find enough qualified Renovata Partners, Egon Zehnder, Aspen their own networks, can use executive outside business assistance. Less than a year Growth in mobile usage has shot up over candidates to fill the jobs he needs to build Worldwide, The Up Group, Skillcapital, and search firms to find key talent to help them later, he found himself returning to the board 100000 eToro 30% since the beginning of the year. About his otherwise booming business. The Forsyth Group to help locate and lure scale their businesses. According to Rose- on his own initiative to broach the idea after OpenBook 60% of eToro’s active depositors comes That’s not his only headache. Even as that rarest of prize today: the ideal candidate mary Forsyth, founder of London-based watching his business considerably under- launched from mobile. And there is no doubt that HouseTrip executives dedicate countless for vital posts in surging start-ups. Head- Executive Search firm Forsyth Group, achieve on its goals under his command. the use of mobile devices will increase as hours searching for potential employees to hunters are needed regardless of whether the Dutch founders of an electronic trad- “There can be a very strong aversion among 50000 users demand anytime, anywhere access supplement the hunting done by special- the search is for engineering and developing platform realized from the outset that some founders of tech companies to give to all services, including stock trading, ized recruitment partners, Bertrand knows ment staff to boost fledgling operations or for they did not have the talent in their own away control but at some point there’s usu- keeping Assia and his engineering team his existing personnel are being courted by experienced top managers to assist founders network and needed to build a team that ally recognition and acceptance that it’s in busy with new scaling challenges for some rival tech companies similarly desperate whose technical and visionary gifts may not could scale the business and eventually the baby’s best interest that help be brought 0 time to come. for new, competent blood. be sufficient to ensure business success after replace them. The company hired several in,” comments Thomas. “The last thing “On average my developers get about 16 re- a certain stage. executives from the electronic trading plat- cruiting calls per week, which explains why “You have to be careful not to confuse the vi- form space through the Forsyth Group. 31/07/2010 31/01/2011 30/11/2010 31/01/2010 30/11/2008 31/01/2009 31/03/2011 31/07/2011 31/05/2010 31/07/2013 31/03/2010 31/07/2012 31/03/2009 30/11/2011 31/01/2012 30/09/2010 30/09/2008 31/05/2011 30/11/2012 31/01/2013 31/07/2008 31/05/2013 31/07/2009 31/05/2012 30/11/2007 31/03/2012 31/01/2008 30/11/2009 30/09/2011 30/09/2013 31/03/2013 31/05/2008 31/05/2009 31/03/2008 30/09/2012 30/09/2007 30/09/2009 we joke about there being more headhunt- sion, passion, and dedication of a company’s The industry-recognized Non-Executive CONTINUED ON PAGE 21

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a U.S.-listed IPO versus a European or are expected to IPO, including King.com, and legal partners to select to prepare for trekked to Istanbul to see the company. London listing. This is driven by greater Shazam, Badoo, Mind Candy and Wonga. the flotation. Both Grew and Grunschlag Venture capital firms are clearly also capital availability and the greater degree It is not clear which will go first or wheth- say that though most leading firms have participating in large “shovel in” rounds. of analyst and investor specialization in er any will choose to do a local listing. offices in both the U.S. and UK, tech com- Before going public Paris-based Criteo the U.S.,” argues Raphael Grunschlag, “I wouldn’t be surprised if there’s some panies would do well to opt for banking raised $63 million from venture capital Preparing To Exit managing director and head of European floats taking place in the next year or so,” advisors and legal offices whose main firms Index Ventures, Bessemer Ven- technology banking at the global invest- Klein told London’s City A.M in Septem- activity is weighted in the same country ture Partners, Elaia Partners and Idin- ment banking boutique William Blair ber. “London is a sophisticated market as the IPO itself. And while most top- vest Partners, as well as from SoftBank & Company in London. William Blair and we certainly don’t want [it] losing out level firms boast activity in a variety of Corporation, Adams Street Partners, SAP recently handled the IPOs of Criteo and in the most attractive sector for growth.” sector and company flotations, it’s far Ventures and Yahoo Japan. And Tel Aviv- Qiwi. It underwrites approximately 20% Of course Index is an investor in Criteo, wiser to find partners with experience based Wix , which serves customers in of all U.S. IPOs. which chose NASDAQ for its listing. — or even specialization — in the precise 190 countries and says it is growing at a “UK institutional investors have his- Nicolas Brusson, CEO of BlaBlaCar. technology and niche an exiting start-up rate of 34,000 new registered users per torically preferred essentially defensive com, a fast-growing pan-European car- is involved with. day, raised $61 million in venture capital positions and secure returns, which in sharing service and a scheduled speaker from backers that include Insight Ven- part explains the low rate of tech IPOs at NOAH 2013, wishes the LSE success in ture Partners, DAG Ventures, Benchmark in London,” says Grunschlag. Another luring European IPO activity from New “Yes, overvalued IPOs in the Capital, Bessemer Venture Partners and factor to consider is that despite the per- York, but thinks it’s a lost cause among Mangrove Capital Partners. Both com- ceived volatility in the U.S., the window big companies — and a wasted battle for States are great, especially panies were able to raise huge rounds for IPOs actually stays open longer there smaller ones. “Nobody under $100 mil- for VCs and founders, as even though they are based outside of relative to London. “The U.S. market can lion in revenues is doing IPOs anymore, Silicon Valley. absorb several poor-performing transac- and the rare smaller company that does Facebook, Zynga, Groupon and Expect more Asian companies, which tions before activity decreases, while in will wind up on secondary markets like others have demonstrated,” are flush with cash, to invest in Europe’s London, a single disappointing IPO can AIM that everyone would rather avoid,” Internet companies, says Mattias Ljung- shut everything down,” he says. Nelson Griggs, Senior Vice-President, Global Brusson says. “Why go public with all the says Noah Advisors’ Rodzynek. man, a partner at Atomico Ventures. Eight That not need be the case — and in- Corporate Client Group, NASDAQ. accountability and regulatory constraints “However, execution risks are of the 10 biggest merger-and-acquisition fluential actors in the UK are moving to that involves if you’re going to be invis- high and once failed, direct transactions involving game companies make London a more attractive IPO mar- avoid. Klein also forecasts the debunk- ible on a secondary market, or largely this year have been initiated by buyers ket. Last March, LSE officials joined the ing of what he calls the “mythology of overlooked as a tech novelty in London?” and indirect costs could be based in Asia, according to Digi-Capital, UK government to ease rules governing higher valuation in the U.S.” as a number That’s an important question, since a big, big burden on a young an investment bank that specializes in public introductions in what’s now called of tech introductions in London prove it Brusson calls the IPO process “so incred- mobile and games. These include the the High Growth Segment. Among those to be a “real and viable alternative to the ibly complex, long, and filled with com- company. Don’t feel like an Supercell deal, in which SoftBank was measure was a reduction of the minimum NASDAQ.” plications and delays” that companies Englishman in New York. joined by a subsidiary, the Japanese game level of IPO stock from the previous 25% That said, pundits agree that London need to be doubly certain they’re ready to company GungHo, in investing $1.5 billion to the current 10%. That’s still twice NAS- needs at least one successful exit by a big take the step before wading in at all. Once Sometimes it is good to stick in exchange for 51% of the shares in the DAQ's 5% requirement for initial offer- Internet company on its local exchange. they’re sure the time has come, though, to your roots and not chase the Finnish gaming company. (Atomico is an ings, and doesn’t address issues raised by A number of London-based companies the question then becomes which banking investor in Supercell, as is Accel Partners). Marco Rodzynek (left) and Jan Brandes, founders of Noah Advisors. critics like Grunschlag and Grew. highest IPO valuation around Along with buyout funds and VCs, in- “When you’ll raise $400 in a London the planet.” stitutional investors clearly have more BY BRUCE CRUMLEY AND JENNIFER L. SCHENKER IPO compared to $600 in New York, of an appetite for investing in European you’ll list in the U.S. almost every time EXAMPLES OF EUROPEAN AND ISRAELI COMPANIES tech companies. — as nine out of 10 European tech firms “In the end, you’re looking for partners For tech industry executives who need There’s arguably no more critical chap- Regardless of the broader founda- only at the very end what you are really going public do,” says Grew. “The only RUMORED TO BE IN THE IPO PIPELINE who understand you and your business, smaller amounts of liquidity but aren’t ter in a tech company’s history than tions of a firm’s business activity and up to and should at all times keep the in- reason for a European company to stay and can carry out their work on your be- ready for an exit, NASDAQ is about to figuring out the right exit strategy. The development, a disappointing IPO — or volved parties entirely focused on you.” local is if it’s considered a national King.com Largest skill gaming site in the world. Just filed for an IPO expected to value what the half as though they’re almost part of the launch NASDAQ Private Market and is good news for European companies is initially impressive flotation followed You don’t get to do an IPO over again champion, or is otherwise so deeply founders call “The Kingdom” at $5 billion. (issuing) company itself,” says Grew. “It’s actively courting European customers. there are more options than ever. There by a soufflé-like price deflation — can if it doesn’t turn out as you’d hoped, “so rooted in national or regional markets really vital everyone is rowing in the same NASDAQ Private Market (NPM) is a joint are now multiple ways for European In- haunt even celebrated companies for you want to make sure you’re ready for it, or activities that listing in New York Shazam Mobile app to identify music. In June 2011 it raised $32 million in funding; in July 2013 direction, and feeling like they’re part of venture combining NASDAQ OMX’s re- ternet companies to raise growth equity months (just ask Facebook). Given the have chosen the right market, and have the would pose a problem.” Mexican billionaire Carlos Slim put in another $40 million. the same tight-knit team.” sources and operational expertise with and going public is only one of them. high stakes involved, start-ups need to best legal and banking partners to help you SharesPost’s private company transac- No one is saying that it feels like 1999 insure their financial opportunity of a make it a success,” says Christopher Grew, LONDON VERSUS NEW YORK Wonga Digital, real-time short-term loans for consumers and businesses. In September CEO Errol OTHER OPTIONS tion platform. Though the firms remain again. The average time for a company lifetime doesn’t wind up being the worst a partner with global law firm Orrick, Her- Damelin told The Telegraph, “We’re in no need of any capital at the moment. But [a stock private, they have shares, and some em- to go public then was four years; now it move they ever made. rington & Sutcliffe in London. “The key “Yes, overvalued IPOs in the States are market listing is] something we keep under review.” Of course not every company needs or ployees or investors who have received is more like 13, says Nelson Griggs, NAS- is identifying what different options and great, especially for VCs and founders, as wants to go public. More growth equity such stock want to cash out. Others want DAQ’s Senior Vice-President, Global partners correspond to the specifics of Facebook, Zynga, Groupon and others — from a variety of sources — is pour- in. The sellers and buyers can be matched Corporate Client Group. Of course not every company your company and objectives, and will con- have demonstrated,” says NOAH Advi- Mind Candy Creator of Moshi Monsters, an online world for kids. Mind Candy is focused on becoming a ing into European Internet companies, through NPM’s electronic network of But European and Israeli tech com- tribute most to your IPO being successful.” sors’ Rodzynek. “However, execution Disney-like entertainment company; it may eventually IPO. helping companies get much bigger while broker-dealers. panies are once again making headlines needs or wants to go public. That’s even harder than it sounds — risks are high and once failed, direct and remaining private. NPM lets NASDAQ tap into a new line by opting for IPOs. Russia’s Qiwi, a digi- More growth equity — from and often depends first and foremost on indirect costs could be a big, big burden Spotify Streaming music service with social media interactivity and mobile apps. The Swedish When Swedish payments company of business. Tech companies are clearly tal payments company, also listed suc- where a start-up decides to list. Indeed, on a young company. Don’t feel like an press reports the company is seeking debt financing at a $5.27 billion valuation. Klarna raised a $153 million round in waiting longer before going public and cessfully earlier this year on NASDAQ a variety of sources — is after the decision has been made to go Englishman in New York. Sometimes 2011, Sequoia Capital’s Michael Moritz, private company transaction platforms and completed a subsequent follow-on pouring into European Internet public, most other considerations flow it is good to stick to your roots and not Badoo Social network "for meeting new people." More than five million adults visit Badoo daily who sits on the company’s board, told like SharesPost have benefited from this transaction. France’s Criteo, a data-driven companies, helping companies from the choice of market the company chase the highest IPO valuation around and millions more come more often, each spending well above average time on the site. It TechCrunch that the round “is the public new way of trading shares privately. advertising technology company focused lists in. For a majority of European tech the planet.” is rumored to be considering an IPO on NASDAQ. financing of 12 years ago. It is just done The interest in buying shares in tech on e-commerce listed on NASDAQ in late get much bigger while companies, the clear preference has been Robin Klein, a partner with Index Ven- privately.” The buyers in these “pre- companies via private markets in the October, raising $251 million in an upsized remaining private. America’s New York Stock Exchange tures in London and a founding partner Zalando A hybrid Zappos and Asos clone that sells shoes, fashion and housewares. public investment rounds” are the same U.S. suggests bullish investor interest IPO that further increased excitement (which handled 16 of the 20 largest tech in The Accelerator Group, argues that the The company is rumored to be considering an IPO. investors that would have previously in companies that may come to market around the sector. And Israel’s Wix, which IPOs in 2012) or NASDAQ, rather than new LSE measures will make listing in bought IPOs, funds like General Atlantic, over the next couple years. NPM will give hosts build-you-own web sites, went pub- “An exit is like a love story,” says Marco the more local London Stock Exchange. London both more logical and profitable Alfresco Open-source enterprise content management platform. In 2013 the company brought in a DST, T. Rowe Price, Fidelity and Tiger. investors a way to get to know European lic on NASDAQ on November 6th. Rodzynek, a partner at Noah Advisors, For most people who’ve taken part in the for European tech companies. He predicts new CEO and CFO, very likely in preparation for a float. For example, last year General Atlantic, tech companies before they go on an IPO These IPOs were closely watched as the corporate finance firm behind the internal deliberations of going public, the the cost and hassle to Europe-based firms a global growth equity firm, invested $44 road show, yet another potential way to there is a swelling group of European NOAH Conference, an annual event that advantages and allure of a U.S. flotation of having to face demanding U.S. inves- Gigya Offers online businesses social infrastructure to integrate social network functionality million in Turkish online food ordering ser- stimulate appetite for more and bigger and Israeli companies in the pipeline that focuses on late-stage Internet companies; have been evident. tors (think trans-Atlantic commutes and throughout their web properties. In June Gigya hired a CFO with experience of four IPOs vice Yemeksepeti.com. There was no need exits going forward. are rumored to be preparing to go public this year the organizers expect to attract “The chances of achieving a superior culture clashes) is something that British and a few trade sales. to do a road show to raise the round. Some (see the chart). around 2,000 people. “You should admit valuation are almost always better with and continental tech execs will gladly 20 U.S. and European VC and PC firms

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WHERE BUSINESS MEETS INNOVATION BUILDING GLOBAL GIANTS

Vienna-based checkrobin.com is an online platform TADO° a huge database of itineraries gathered that matches those on the move in their car with from newspapers and guidebooks that it people who need to ship something quickly. Munich-based tado°, a system for calls on to help users come up with their €7 Million, Seven Contestants, controlling heating remotely through a own customizable vacation plan. The site, smartphone app for iOS and Android, which covers more than 20,000 destina- claims to save typical families about 25% tions around the world, then helps by on their yearly heating bills. making bookings. Seven Judges ... Three Winners EYEGLASS24 The app is free, but to get started us- Winning a slice of the SevenVentures ers must buy the small box that controls prize would help mygola grow in Europe, Munich-based EYEGLASS24, founded home heating for ¤299 or rent it for ¤8.25 says Bapna, who has an MBA from Stan- Julia Bösch (left) Anna Alex (right), founders of judge; the audience can vote through an last year, sells Swiss-made lenses for eye- a month. The box connects to the heat- ford, co-founded and sold his first start-up Outfittery. “Many of our investors are also customers app, on the SevenVentures Pitch Day glasses online and through the post. ing system and communicates with the while studying as an undergrad in Bom- and we think that is a very good sign,” says Alex. Facebook page or on the SevenVentures Customers pick out their lenses at smartphone, which sends information, bay, and spent time working on Google’s website. The company that gets the most EYEGLASS24’s website, send in their including the user’s whereabouts, using strategic partnerships team. votes from the public will win a separate new or old eyeglass frames and then get the phone’s GPS. “It's no surprise that Europe is our prize — a ¤30,000 package of consulting them back with the new lenses, usually The company has raised $4 million in most popular destination, however Eu- solving a valid pain point. “Many of our services including public relations. in a few days. The savings can be as much capital from Target Partners and Shortcut rope, particularly Germany, is also turn- investors are also customers and we think This year’s jurors are: Philipp Freise, a as 80% compared with a traditional opti- Ventures including $2 million in Sep- ing out to be one of the largest sources of that is a very good sign,” says Alex, who is partner at KKR and the head of the firm’s cian, says Jascha Chong Luna, CEO and tember. The next fundraising process travelers for us,” says Bapna. “As a com- in charge of product and operations. The European Media Industry team; Michiel founder of EYEGLASS24 and the person will begin at the end of the first quarter pany that straddles U.S. and India, we’ve company is scaling fast, “so we are just Kotting, a principal at Accel Partners; Rainer tasked with making the company’s case next year, says Chief Marketing Officer managed to cobble together a good user at the point where we could make use of Maerkle, a partner at Holtzbrinck Ventures; in front of the jurors. Leopold von Bismarck. base and partnerships in North American television advertising.” and three well-known serial entrepreneurs “We combine two strong markets — and Asia. However, we’re still struggling Outfittery just might be in luck. At the turned investors: Christophe Maire, Oleg the increasing e-commerce-market and MYGOLA with making our presence felt in Europe." NOAH Conference, an annual event in Tscheltzoff and Fabrice Grinda. the market of 40 million Germans with The $5,000 mygola budgets each London which this year is expected to The seven finalists were chosen from glasses,” says Luna, who estimates that “Gola” means circle, or the world, in month for advertising is unlikely to change attract around 2,000 people, the Berlin- among almost 300 applicants. Read on to more than 15,000 people get new eye- Hindi and “my gola” aims to give you the that, but a victory at NOAH just might. based start-up and six others will get the find out more about contestants Azimo, to digital media, though Kent says the glasses every day in Germany. “Our busi- power to see the world the way you wish, chance to pitch in front of seven judges. checkrobin.com, EYEGLASS24, GetY- company has recently begun to test us- ness model corresponds to the German says Anshuman Bapna, mygola’s CEO, The prize? A share of ¤7 million in free ourGuide, tado° and mygola. ing traditional media such as television. zeitgeist of repairing instead of consum- co-founder and SevenVentures pitchman. television advertising in Germany. Building name recognition will be par- ing and buying anew.” Mygola, in fact, has raised $2.6 mil- SevenVentures Pitch Day, sponsored AZIMO ticularly important for Azimo, which is EYEGLASS24 just closed its first lion, including $1.5 million last month, by SevenVentures, the venture arm of operating in a crowded field that includes round of financing (Luna would not give with a business plan based on helping ProSiebenSat.1 Media, is directed at start- One-year old Azimo allows people to traditional banks such as Barclays with its details). It will face strong competition people see the world. The company has ups that want to expand in Germany; it send money abroad via its website or a Pingit service. from Germany’s Mister Spex, a German will be held on November 14th. The first- smartphone app (for iOS and Android) e-commerce site specialized in the sale place winner will receive ¤4 million in at prices that undercut more traditional CHECKROBIN.COM of glasses, sunglasses and contact lenses advertising time on the channels owned ways to send money. which earlier this year raised ¤16 million by ProSiebenSat.1 Media; second prize is Sending £500 from Britain to South Af- If checkrobin.com has its way, there in private equity funding. Your Social ¤2 million in advertising, with ¤1 million rica would cost £40 at a Barclays branch, will be fewer cars with half-empty trunks Investment Network going to the start-up in third-place. This is £25.90 through Western Union and £5 travelling around Europe and a little less GETYOURGUIDE the second year the pitch event has been with Azimo, says Michael Kent, CEO and carbon dioxide in the air. held at NOAH Conference. founder of Azimo. (The actual cost using Vienna-based checkrobin.com is an GetYourGuide lets the users of its “Last year the jury members gave the Barclays and Western Union will depend online platform that matches those on website and app (for iOS and Android) start-ups a hard time with lots of difficult on several factors and could actually be the move in their car with people who book guided tours, diving lessons, cook- questions about their business plans and much less.) Azimo keeps its fee down by need to ship something quickly. The two ing classes, canal cruises and any num- growth prospects and we expect it to be not having any physical shops. sides agree on the main terms through ber of other activities, allowing them to the same this year,” says Thomas Offner, a London-based Azimo has raised just the company’s website with final details avoid sellouts, lines and the need to pay in senior investment manager at SevenVen- over £1 million and Kent, who will be discussed either on the phone or with text cash upon arrival. The company promises tures and the founder of several start-ups. making the company pitch at the Sev- messages. The driver can earn as much as users they will pay the best local prices Each of the seven start-ups will show enVentures contest, says the company ¤30 with checkrobin.com getting a com- and pledges to refund the difference if a a short video and then will be grilled by is looking for further investment so it mission and providing insurance for the cheaper price is found. the six industry experts on the jury. The can scale up its activities. The company shipped items. Zurich-based GetYourGuide sells contest will be broadcast live online with spends “a six-figure sum” annually on “Until checkrobin.com it was almost tickets for attractions across the globe BY ERIC SYLVERS the audience functioning as a seventh advertising with most of that directed impossible, or at least uneconomical, to charging suppliers — which include travel realize same-day delivery outside ur- agents, hotels and tourism boards — a Outfittery, a Berlin-based personal If the customer needs something new ban areas,” says Hannes Jagerhofer, the commission. It has a multi-million-euro Connect With Over online shopping service for men that later he can reach out to his stylist, who company’s CEO and co-founder. “Using budget for paid search, but has not yet in- is creating lots of buzz in the market, will also be in touch from time to time. commuters to facilitate the transport, our vested in other channels such as television. aims to win over reluctant male shop- There is no subscription or minimum platform is able to change this and by that, “Over the past two years we have built 3 Million Users pers. Its tagline? “We take the pain out amount that must be bought. The ser- tap into a new, highly-attractive market.” a significant consumer base by investing of shopping.” vice is available in Germany, Austria checkrobin.com, which is a year old heavily in search engine marketing and The male shopper fills out an online and Switzerland (the website is only in and has so far been funded exclusively we now believe it is time to make the next That's how people invest today - questionnaire that is followed up with German) with plans to expand to other by Jagerhofer and his two co-founders, step and start building a brand in Ger- a phone call from his “personal stylist.” European countries, including the UK, offers its service only in Austria, although many, our key territory,” says Johannes After that chat, the stylist mails the cus- in the next year. it plans to expand into Germany next year. Reck, CEO and co-founder of GetYour- join the revolution! tomer two to three outfits of “high-quality The company earlier this year raised Winning a portion of the SevenVentures Guide, who will argue the company’s case casual wear” from brands that include a reported $1.1 million from Mangrove prize would help provide the funds to build on November 14. “The SevenVentures www.eToro.com Tommy Hilfiger, Gant and Levi’s, with a Capital Partners, RI Digital Ventures, In- name recognition as part of that expansion. prize would be a fantastic opportunity hand-written letter. Anna Alex, co-found- vestitionsbank Berlin with existing inves- “Our product has the potential to to start doing so.” eToro (Europe) Ltd., a Financial Services Company authorized and regulated by the Cyprus er and co-managing director of Outfittery, tors Holtzbrinck Ventures and High-Tech change an entire industry by providing GetYourGuide, founded in 2008, has Securities Exchange Commission (CySEC) under the license # 109/10. Past performance is calls it the “love letter.” No shipping fee Gründerfonds also participating in the simple, flexible and reliable same-day received more than $16 million in funding, not an indication of future results. Also, leveraged products can carry a high degree of risk. is added to the cost of the clothing. The round. Maybe it is because venture capi- delivery while benefiting the environ- including $14 million at the beginning of eToro oﬀers protective measures to manage risk eﬀectively, but in rare occasions it is possible to lose more money than invested. customer keeps what he wants and sends talists, who are mostly male and always ment,” says Jagerhofer, checkrobin.com’s this year from Spark Capital and Highland back the rest at no extra charge. pressed for time, recognize the service as Zurich-based GetYourGuide sells tickets for attractions across the globe. pitchman at the SevenVentures Pitch Day. Capital Partners Europe.

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playlists, and said it had simplified its premium and serves more than 14 billion page views a KENSHOO subscription, which helped boost growth. month, all pointing to quality content on its network of publishers. American Express, WWW.KENSHOO.COM Top 25 Fastest-Growing Internet Proctor & Gamble, GE and General Mills use TEL AVIV, ISRAEL ADYEN it as part of their marketing strategy to reach What it does: Digital marketing software fo- target audiences. cused on search marketing and online adver- Companies (Europe & Israel) WWW.ADYEN.COM tising. AMSTERDAM, NETHERLANDS Why it’s hot: $25 billion+ in annual client sales What it does: Payment solutions for interna- FIVERR revenue is directed through Kenshoo, which To identify the most promising fast-growing internet companies in Europe and Israel, Informilo tional merchants. has campaigns running in more than 190 asked some of the most active investors in the sector to nominate and evaluate 25 companies Why it’s hot: Adyen’s payment platform works WWW.FIVERR.COM countries with clients including Expedia, online, on mobile devices and at the point of BINYAMINA, ISRAEL Facebook, Hitwise, Omnicom, Travelocity, outside their own portfolios. Informilo’s Top 25 are not necessarily the biggest or the most senior sale, and is easily customized by merchants. What it does: Global online marketplace offering and Zappos (46% of Fortune 50 companies companies in their respective sectors; they are the ones that are growing the most quickly. The company processes up to 224 different tasks and services, usually for $5. are users). Kenshoo has 1.2+ million active payment methods and 187 transaction Why it’s hot: As of August the site lists more than campaigns for local, national, and global currencies. Customers include Uber, Badoo, 2,000,000 services available for $5 to $500. It businesses; 3+ billion keywords are managed SoundCloud, Getty Images, Mango, KLM, says 4,000 new services, across 120 categories, through the platform. Backed by Sequoia JUST EAT ROVIO PopCap Games and Vodafone. The company are added each day. Recently launched a Capital and Arts Alliance, the company is a EUROPE processed over $10 billion in payments in 2012. Mission Control dashboard to give “giggers” and market leader with a solid position in a growth (WWW.JUST-EAT.COM) (WWW.ROVIO.COM) buyers better access to metrics and analytics. market. LONDON, ENGLAND ESPOO, FINLAND Provides a “living marketplace” for micro- What it does: Online takeaway ordering service. What it does: Entertainment media company. SKYSCANNER entrepreneurs in more than 200 countries. ALFRESCO Why it’s hot: Active on four continents with Why it’s hot: Rovio started life as a developer of GIGYA more than 38,000 restaurants signed up; over casual games across multiple platforms. Angry WWW.SKYSCANNER.COM (WWW.ALFRESCO.COM) nine million registered users generate more Birds, Rovio’s breakthrough game, is now part EDINBURGH, SCOTLAND VIBER WWW.GIGYA.COM MAIDENHEAD, ENGLAND than £700 million in revenue per year for the of the collective consciousness. In September What it does: Flight comparison website. PALO ALTO, CA, U.S. What it does: Open-source enterprise content restaurant industry. More than 70 million Rovio Entertainment launched Angry Birds Why it’s hot: Skyscanner enables users to WWW.VIBER.COM What it does: Offers online businesses social management platform. orders have been taken since the site launched Star Wars II along with Hasbro’s Telepod Music. A Moshi movie will be released in Why it’s hot: Klarna lets the consumer receive browse flight prices to get the best deals. LIMASSOL, CYPRUS infrastructure to integrate social network Why it’s hot: Claims to be the second-largest in 2001. Raised $64 million from private equity toys. The game immediately topped app store time for Christmas. Mind Candy is focused the goods first and pay afterwards, while the Its “search everywhere” option crunches What it does: Free text, calling, photo messages functionality throughout their web properties. open-source player in the market, after Red group Vitruvian Partners and other investors charts in over 100 countries. Rovio’s ToonsTV on becoming a Disney-like entertainment company assumes the credit and fraud risks billions of options, so users can explore travel and location-sharing with other Viber users. Why it’s hot: Works with more than 650 Hat; every day, over seven million business in May to support acquisitions of smaller channel surpassed more than one billion views company; it may eventually IPO. for the merchants. It’s one of Europe’s fastest- possibilities. The company has been in the Why it’s hot: Founded by American-Israeli enterprises, including 44 of the top 100 users in 75 countries rely on Alfresco to manage rivals, Europe’s largest e-commerce fundraise in its first seven months. Rovio’s animated growing companies; in the past seven years travel business for 10 years; its site supports entrepreneur Talmon Marco, Viber is websites. Gigya reaches 1.5 billion unique four billion documents, files and processes. for 2012. Claims that less than 10% of all Angry Birds feature film is planned for July it has grown to 800 employees operating in more than 30 different languages and receives growing fast: it had more than 200 million users per month — nearly two-thirds of the It raised $20 million in venture funding from takeaway orders in the world take place online, 1, 2016. Earlier this year Rovio’s CMO said he NORDEUS seven European countries with over 12 million over 60 million visitors a month. 2012 users in over 193 countries as of September, global internet population. At yearend 2012 the Accel, Mayfield and SAP Ventures in 2008. so there is still plenty of growth out there. saw no reason for an IPO because the company consumers. 2012 transaction volumes totaled revenues were approximately $30 million, up from 100 million users a year ago. It’s company nearly tripled its sales growth from Last year launched The Alfresco Cloud, is “insanely profitable.” (WWW.NORDEUS.COM) ¤1.8 billion. with $10 million in profit. In October Sequoia available on a range of platforms, and in 10 2011 and recorded its largest quarter ever, with which hopes to take some market share from BELGRADE, SERBIA invested an undisclosed sum in Skyscanner for languages. Disrupting mobile operators and 33% quarter-over-quarter growth in Q4. In Dropbox and Box.net. Alfresco was founded by ZALANDO What it does: European social game developer. what some say was a valuation between $800 the previous generation of disruptors, such September Gigya raised a $25 million funding Documentum Co-founder John Newton and SHAZAM Why it’s hot: Nordeus’s game, Top Eleven, is SPOTIFY million to $1 billion. as Skype. round, bringing the total raised to $70 million former COO of Business Objects John Powell; (WWW.ZALANDO.COM) the most-played online sports game in the in venture funding. Social infrastructure has in 2013 the company brought in a new CEO BERLIN, GERMANY (WWW.SHAZAM.COM) world, with more than 11 million monthly (WWW.SPOTIFY.COM) become a requirement for online businesses; and CFO. What it does: A hybrid Zappos and Asos clone LONDON, UK and five million daily users on web, Android STOCKHOLM, SWEDEN PANAYA Gigya’s approach of offering everything a site that sells shoes, fashion and housewares. What it does: Mobile app to identify music. and iOS devices. The game is available in 40 What it does: Streaming music service with ISRAEL needs to be social puts it in a good position for Why it’s hot: Zalando, originally a Rocket Internet Why it’s hot: Bar-goers have since 2002 been languages, and Nordeus has focused on gaining social media interactivity and mobile apps. WWW.PANAYA.COM future growth. SHOWROOMPRIVE company, has built its brand through television holding their handsets up to speakers so the users in emerging markets. Won the People’s Why it’s hot: Allows users to stream more than MENLO PARK, CA, U.S. advertising and a data-driven execution Shazam app can identify the music they’re Choice Award for best start-up at London Web 20 million songs from the big music players ETORO What it does: Cloud-based solution to make (WWW. SHOWROOMPRIVE.COM) strategy. It now operates in 12 countries in listening to. Since then it has morphed into Summit 2012. and smaller independent labels using either ERP systems easy to install, use, upgrade, MYHERITAGE LA PLAINE SAINT-DENIS, FRANCE Europe. 2012 turnover hit ¤1.15 billion, although a powerful marketing tool: the user can now a free, ad-supported service or a premium (WWW.ETORO.COM) and maintain. What it does: Online shopping club. losses are said to have grown to 90 million. In not only to identify the music in, say, an ad, but ad-free service. Has more than 24 million active TORTOLA, BRITISH VIRGIN ISLANDS Why it’s hot: Panaya’s software-as-a-service WWW.MYHERITAGE.COM Why it’s hot: One of Europe’s largest private August Anders Holch Povlsen, owner of Danish also buy the goods featured in the ad, concert SUPERCELL subscribers, of which six million pay. Spotify What it does: Social investment network. helps companies that use SAP or Oracle to OR YAHUDA, ISRAEL member e-commerce websites, selling heavily fashion company Bestseller A/S, bought a 10% tickets, the track itself, etc. In June 2011 it is now available in 28 countries; one billion Why it’s hot: Three million traders in more reduce 70% of their upgrade and testing risk What it does: Family tree-building software discounted designer fashion and homewares a stake in Zalando from existing shareholders raised $32 million in funding; in July 2013 (WWW.SUPERCELL.NET) playlists have been created so far. The Swedish than 140 countries have placed more than 50 and effort. Used by over 800 A-list customers and services. across Europe. In 2010 Accel Partners (for an undisclosed sum). The company is Mexican billionaire Carlos Slim put in another HELSINKI, FINLAND press reports the company is seeking debt million trades through eToro’s award-winning in more than 54 countries. Management Why it’s hot: Available worldwide, in 38 invested ¤37 million. 2012 revenues were ¤250 rumored to be considering an IPO. $40 million. Shazam boasts 350 million users What it does: Social gaming developer. financing at a $5.27 billion valuation. Last year it OpenBook and WebTrader platforms since team are all seasoned professionals with languages. Ranked the #2 most popular million, and the company is on track for ¤350 (70 million are active), adds two million new Why it’s hot: In mid-October Japan’s SoftBank lost over $77 million. January 2012. Traders can learn from each 15+ years experience in the tech sector. In genealogy site by ProGenealogists in 2011 million in 2013; it now has approximately 15 users a week, and claims to have identified Corp. agreed to buy 51% of Supercell for $1.5 other, share live trading information and use January Panaya raised $16 Million in Series and the #3 in 2009 and 2010. Has more million users. WONGA more than five billion songs. billion. Last year, the company had revenues their collective trading power. Received Best of D funding from existing investors, led by than 75 million members, 27 million family of $105 million and $40.3 million in profit. In SOUNDCLOUD Show at FinovateFall for its Social Trading Index, Battery Ventures. The money will be used to trees, and 1.5 billion names in family trees. (WWW.WONGA.COM) April, a funding round of $130 million valued which enables traders to create their own indices fund Panaya’s aggressive growth strategy. MyHeritage has raised a total of $49 million; BADOO LONDON, UK MIND CANDY the company at $770 million. The current (WWW.SOUNDCLOUD.COM) and make them available to the eToro investment in 2008 the company raised $15 million What it does: Digital, real-time short-term loans $3 billion valuation is the largest valuation BERLIN, GERMANY network. In July eToro added fractional stock from Index Ventures and Accel Partners; in (WWW.BADOO.COM) for consumers and businesses. (WWW.MINDCANDY.COM) for a mobile app company, according to What it does: Social sound platform where any- investment to its platform, enabling users to PAYONEER November 2012, the company raised $25 LONDON, ENGLAND Why it’s hot: Wonga’s technology platform LONDON, UK Rutberg & Co. Last year Supercell pivoted to one can create sounds and share them. invest in the shares of large brands. million in a round led by Bessemer Venture What it does: Social network “for meeting allows it to make swift credit decisions, yet What it does: Creator of Moshi Monsters, an become a “tablet-first” publisher. About 10% Why it’s hot: SoundCloud allows sound creators WWW.PAYONEER.COM Partners (BVP). MyHeritage has also been on new people.” maintain positive cash flow with very tight online world for kids. of Supercell users purchase in-game extras, to instantly record or upload original audio NEW YORK, NY, U.S. the acquisition trail, buying more than nine Why it’s hot: Has 195 million members in 180 lending restrictions. Despite receiving recent Why it’s hot: Founded in 2004 by Michael much higher than the industry norm. content, embed sound across websites and OUTBRAIN What it does: Enables easy and safe global competitors or complementary providers countries; more than 100,000 new members criticism of its model from, among others, Acton Smith, a UK-based entrepreneur blogs, share publicly and privately, receive payments. in the past six years. The company expects join every day. Currently available in 40 the Church of England, growth continues who previously founded Firebox.com. Over detailed analytics, plus get feedback from WWW.OUTBRAIN.COM Why it’s hot: Operational since 2005, revenues to continue growing at year-over- languages via Badoo.com and various social/ to be strong. In 2012 the company reported 65 million kids have joined the site online KLARNA the community directly onto the waveform. NEW YORK, NY, U.S. profitable, and well-funded. Payoneer year rates above 100%. mobile platforms as an iPhone, Android, pre-tax profits of £84.5 million, an increase and Moshi is now expanding successfully It now reaches 250 million people per What it does: Content discovery platform. has served thousands of companies and Facebook & desktop application. More of 35% on the previous year, on £1.2 billion in offline into books, magazines, trading cards, (WWW.KLARNA.COM) month. In January SoundCloud raised an Why it’s hot: “Content marketing” — creating more than one million payees around the than five million adults visit Badoo daily lending, an increase of 68%. In September CEO toys, videos games, music, mobile apps, STOCKHOLM, SWEDEN undisclosed amount in a round led by Kleiner and sharing content to engage current and world. Processes more than $500 million in and millions more come more often, each Errol Damelin told The Telegraph, “We’re and cartoons. Moshi Magazine launched What it does: Seeks to provide a zero-friction Perkins Caufield & Byers. GGV Capital also potential consumer bases — is gaining traction. yearly payments. Ranked 34 on Deloitte’s spending well above average time on the in no need of any capital at the moment. But in February 2011 and is now the largest UK online payment solution that allows consum- participated. In October it announced a Outbrain is well-positioned for a shift to a Technology 2012 Fast 500 in North site. It is rumored to be considering an IPO [a stock market listing is] something we keep kids title in the UK. In March the company ers and merchants to interact with each other partnership with Instagram to enable users greater emphasis on content; it’s installed America, Payoneer grew 4,751% from 2007 on NASDAQ. under review.” signed a major partnership deal with Sony safely and simply. to upload their photos as album art for their on more than 100,000 blogs and websites, to 2011.

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FUND CONTACTS FUND CONTACTS FUND CONTACTS Who To Pitch At NOAH ATLANTIC CAPITAL Marcus Englert INSPIRIT Roque Velasco RU-NET Galina Chifina BELCUBE Harold Mechelynck INVENTURE PARTNERS Anton Inshutin SCHINDLER & SCHINDLER Florian Schindler BERINGEA Rob Hodgkinson INVOKE CAPITAL Andrew Kanter Venture Capital (€0 - €50 million) SMARTCAP Andrus Oks BDMI Jan Nils Borgstädt IRIS CAPNAMIC Thorben Rothe Tobias Schirmer MANAGEMENT SPEED INVEST Oliver Holle

FUND CONTACTS FUND CONTACTS FUND CONTACTS BRIGHT CAPITAL VadimTarasov ISAI Christophe Raynaud STARTUP BOOTCAMP Alex Farcet C5 CAPITAL Nazo Moosa JIC Lucie Bresova HOLTZBRINCK VENTURES Christian Saller ASTUTIA Benedict Rodenstock LUMIA CAPITAL Christopher Rogers TEAM EUROPE Kolja Hebenstreit Lars Langusch Bernd Schrüfer Martin Gedalin CABIEDES & PARTNERS Luis Martin Cabiedes KIZOO Matthias Hornberger Martin Weber TENGELMANN Christian Winter Rainer Maerkle BALDERTON CAPITAL Roberto Bonanzinga MCI Tomasz Czechowicz CAIXA CAPITAL RISC Sergio Pérez Merino Jane Reddin Sylwester Janik LIBERTY GLOBAL Sander Vonk INDEX VENTURES Dominique Vidal CONCENTRIC Kjartan Rist TRUE CAPITAL John Hofmann Giuseppe Zocco BERLIN Arend Lars Iven OPEN OCEAN Michael Widenius LIGHTSPEED VENTURE Bejul Somaia Jan Hammer VENTURE PARTNERS Ron Hillmann Tom Henriksson CREATHOR Cédric Köhler CAPITAL TS VENTURES Tim Schumacher Robin Klein BONSAI VENTURE CAPITAL. Javier Cebrian PROJECT A VENTURES Florian Heinemann DASYM Luuk Remmen MACMILLAN SCIENCE Sebastian Peck TTNAG Tin Nguyen Miguel Cobián Thies Sander AND EDUCATION SEVEN VENTURES Thomas Offner DIGITAL EDUCATION Matthias Ick Hanno Stegmann CREANDUM Fredik Cassel REBATE NETWORKS Michael Brehm MANGROVE Hans-Jürgen Schmitz UPLIFT VENTURES Nils Reimelt Hari Sven Krishnan Daniel Blomquist Thomas Baum DLD VENTURES Markus Scheuermann Sven Weise DN CAPITAL Nenad Marovac MAS ANGEL FUND Aferdita Perzhaku VAN DEN EDNDE Christoph Neuhaus DMT HOLDING Henning Lange RECRUIT STRATEGIC Akihiko Okamoto & DIETMERS SCHIBSTED GROWTH Marc Brandsma Oliver Thylmann PARTNERS INC Shuichiro Choshi E. VENTURES Andreas Haug MEDIA VENTURES Dirk Stroeer Mats Eriksson VELO PARTNERS Evan Hoff Peter Grytterhielm EPIC COMPANIES Janosch Novak ROCKET INTERNET Alexander Kudlich EARLYBIRD Hendrik Brandis Christoph Hornung Matthias Müller MMC VENTURES Jonathan Coker Lars Vangen Jordet VERDANE CAPITAL Staffan Mörndal EISSING & CIE Phillip Eissing WAYRA Paloma Castellano ETOHUM Burak Buyukdemir SEAYA VENTURES Beatriz González MOBILE Tobin Ireland ELAIA PATNERS Samantha Jerusalmy VISION Rayan Tegtmeier Simon Devonshire Kerim Ture Ordóñez VALUE PARTNERS Marcus Druen Michael Kleindl BETEILIGUNGS GMBH GIMV Geoffroy Dubus EUROPEAN FOUNDERS Oliver Samwer Aitor Goyenechea MOUNTAIN LAKE Matthias Mathieu Steven De Troyer TA VENTURE Teodoro D’Ambrosio WEKIX Shay Hasson FORWARD Jens Lapinski ACCEL PARTNERS Harry Nelis Viktoriya Tigipko HANSE VENTURES Jochen Maass MOUNTAIN PARTNERS AG Ingo Drexler Sonali De Rycker FOUND FAIR Burckhardt Bonello X ANGE Rodolphe Menegaux Alexander Eulenburg TALIS CAPITAL Vasile Foca Luciana Lixandru NAUTA CAPITAL Marcel Rafart Vicent Malin Posern Matus Maar FRONTIER VENTURES Dmitry Alimov YL VENTURES Yoav Leitersdorf CATCHA GROUP Patrick Grove HOLTZBRINCK DIGITAL Markus Schunk T-VENTURE Patrick Meisberger Luke Elliott FUNDSTERS Markus Bruetsch NEUHAUS PARTNERS Thomas Preuss Michael Hock Thomas Vogel Z INVESTMENT Zimmermann Patrick Erman Akinci GENERATION Harjee Singh NOTION Stephen Chandler IMENA Adey Salamin VORWERK Dirk Meurer ZOBITO Markus Roithmeier DFJ ESPRIT Scott Sage CAPITAL PARTNERS Khaldoon Tabaza Bjoern Rentzsch GERMAN STARTUPS Christoph Gerlinger Sven Lung PARTECH VENTURES Jean-Marc Patouillaud Alexander Frolov IRIS CAPITAL Curt Gunsenheimer 3TS CAPITAL Pekka Mäki GLOBAL FOUNDERS CAPITAL Fabian Siegel Erkan Kilicaslan Elbruz Yilmaz ILAB Yuksel Dibekoglu GRAZIA EQUITY Jochen Klueppel PASSION CAPITAL Stefan Glaenzer Berktuğ İncekaş MITON CIRCUS Michal Jirak ACTIVE Philipp Schroeder GRUPO INTERCOM Joaquim Ferrer Mustafa Say Tomas Matejcek PITON CAPITAL Greg Lockwood ACTON CAPITAL Fritz Oidtmann H2 INVESTMENTS Heiko Hubertz SCOTTISH Stuart Paterson NGP Bo Ilsoe AD 4 VENTURES Filippo Mazzotta PLAYFAIR CAPITAL Federico Pirzio-Biroli Growth Capital EQUITY PARTNERS Gordon Beveridge Anupam Rastogi H-FARM Maurizio Rossi Mark Gracey (€50 million - €250 million) NORTHZONE Hans Otterling AER FINANCE Bartlomiej Herodecki PRIME VENTURES Robert Verwaaijen 212 LTD Ali Karabey HORIZONS Bart Swanson Jeppe Zink ALSTIN Jörg Goschin FUND CONTACTS Numan Numan I5 INVEST Markus Wagner QUALCOMM VENTURES Miles Kirby KIBO VENTURES Javier Torremocha AMADEUS CAPITAL Richard Anton FIDELITY GROWTH Davor Hebel ALTERNATIVE STRATEGIC Jörg Goschin Aquilino Peña IG EXPANSION Jose Marin RHEINGAU FOUNDERS Philipp Hartmann PARTNERS Florian Oettinger INVESTMENT Robert Nowak ARMADA INVESTMENT Daniel Aegerter LAKE STAR Klaus Hommels Daniel Jones GROUP INFOCOMM INVESTMENTS Zach Tan RI DIGITAL Christian Wessel ASLANOBA CAPITAL Hasan Aslanoba Manu Gupta Nick Brito Cankut Durgun

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FUND CONTACTS FUND CONTACTS FUND CONTACTS customers are VCs and they like proprietary deal flow but it’s not good for the INVESTMENT AB Henrik Persson PROVIDENCE EQUITY Andrew Tisdale Dealroom Seeks To Improve start-up because you’re excluding others KINNEVIK Karim Tabet GrowthGENERAL ATLANTIC Capital Gabriel Caillaux REDPOINT VENTURES Pueo Keffer MARYLAND Hinrich Stahl who might offer better terms. So you’re Chris Caulkin Helge Luetzen giving a monopoly position … that’s not (€50 million - €250 million) INSIGHT VENTURE Harley Miller RUSSIA PARTNERS Roman Simonov good for the market as a whole.” Christian Figge SEQUOIA CAPITAL Jake Anderson PARTNERS Aleksander Lupachev Europe’s Deal Flow For VCs, Wijngaarde thinks Deal- Shaw Joseph PARTNERS GROUP Christian Unger room’s biggest benefit is they can in- SPECTRUM EQUITY Adam Margolin Stephan Seissl Dealroom aspires to be a community for companies in crease the exit potential of their existing OAKLEY CAPITAL Mark Joseph VULCAN CAPITAL Abhishek Agrawal HG CAPITAL Kai Romberg all investment stages, from seed stage to late growth. portfolio by encouraging their portfolio FUND CONTACTS Nate Mitchell Sebastien Briens PROVIDENCE EQUITY Andrew Tisdale companies to keep their profiles updated. REDPOINTSTRIPES GROUP VENTURES PueoJason Keffer Santiago attract to Dealroom. He envisions them He wants to make the site a resource for FIDELITY GROWTH DavorStefan Hebel Margolis Karim Tabet ACCESS INDUSTRIES Jörg Mohaupt using the platform as their main commu- corporate development teams of large PARTNERS FlorianCarlo Oettinger Pohlhausen SAPSUMMIT VENTURES PARTNERS AndreasVincent Weiskam Lambert nication tool to future potential investors. companies who are scouting for invest- Daniel Jones RUSSIA PARTNERS Roman Simonov “They can say, ‘Follow us. Connect with ment opportunities. “We actively push BRIDGEPOINT Nick Heslop BATTERY VENTURES NickMichael Brito Brown WARBURG PINCUS Bert Janssens Aleksander Lupachev us on our company profile and you will those good performing companies to the Matt Jacobson not miss anything and if the opportunity newsfeed of any potential buyer,” he says. CINVEN Thomas Railhac comes to buy shares in our company, you Dealroom’s immediate priority is to GENERAL ATLANTIC GabrielZakary Caillaux Ewen VULCAN CAPITAL Abhishek Agrawal will be the first to know’.” expand its community of users and add Chris Caulkin Nate Mitchell DOUGHTY HANSON Stefan Tirtey For start-ups, it’s useful to start build- editorial content to ensure that “every GREAT HILL PARTNERS ChristianNicholas Figge Cayer Private Equity ing a following of investors early and edu- technology company in Europe that really & CO ShawPeter Joseph Garran (€250 million - €1,000+million) ACCESS INDUSTRIES Jörg Mohaupt cate them over time so they don’t have to matters can be found on the website.” Sarah Pinto start from scratch when they need capital, Eventually, Wijngaarde would like to EXPONENT PRIVATE David McGovern he says. “If you already have a following emulate AngelList and offer a way to in-

HG CAPITAL Kai Romberg BRIDGEPOINT Nick Heslop } EQUITY of people who understand your business, vest in companies through the site. “We’re ATOMICO SebastienWouter Briens Gort the time it will take to do a process will obviously thinking about it and we hope FUND CONTACTS StefanPogos Margolis Saiadian CINVEN Thomas Railhac be reduced from three to six months to this feature will come,” he says. “It might GUGGENHEIM Douglas Atkin BY D’ARCY DORAN Carlo Pohlhausen one to three months.” take six months or more — it’s quite com- KKRPrivate EquityPhilipp Freise He hopes Dealroom can ultimately plicated. For now it’s just discovery and if GMT Natalie Tydeman DOUGHTY HANSON & CO Stefan Tirtey Steffen Pauls OMEGA FUNDS Renee Aguiar-Lucander Yoram Wijngaarde is on a mission to to leave NOAH and do this full time,” he open investment opportunities to a wider you really want to do due diligence, you BATTERY VENTURES Michael Brown Jacqueline Abu-Haider (€250 million Claude- €1,000+million) Alexandre reshape Europe's start-up and venture says, adding NOAH Insider’s profiles have group of investors. will have to take it offline.” Matt Jacobson EXPONENT David McGovern Cristobal Cuart PERMIRA Andrew Young capital dating scene. migrated to Dealroom. “It eliminates proprietary deal flow. Zakary Ewen PRIVATE EQUITY The Dealroom founder wants to elim- TechCrunch’s CrunchBase, the free I’m a bit hesitant to say it because my REED ELSEVIER Tony Askew Jean-Pierre Saad VENTURES Kevin Brown FUND CONTACTS inate time-wasting meetings between database of tech companies, people, and Lucian Schoenefelder PSQUARED ASSET Patrick Schmitz-Morkramer GREAT HILL PARTNERS Nicholas Cayer GIC David Lisewski ill-matched start-ups and venture capi- investors that anyone can edit, also offers KKR VaniaPhilipp Schlogel Freise MANAGEMENT talists. He also wants to eliminate pro- profile services similar to Dealroom’s. SAP VENTURES PeterAndreas Garran Weiskam EUROPEAN TECNOLOGY ECO-SYSTEM CarstenSteffen Bleckwehl Pauls prietary VC deals that restrict start-ups’ And f6s.com, a European site, connects SarahJoerg Pinto Sievert GUGGENHEIM Douglas Atkin options and lock others out. But most start-ups to programs, conferences, jobs, Franziska Kayser SEARCHLIGHT CAPITAL Francois Dekker Claude Alexandre of all, he wants to end that frustration deals on things like free software as well FALLING BEHIND U.S. BY FACTOR OF 3-4X TomasCristobal Kubica Cuart REEDTCV ELSEVIER TonyJohn Askew Rosenberg OMEGA FUNDS Renee Aguiar-Lucander he often felt throughout his decade as as angel groups. Jean-Pierre Saad SILVERLAKE Simon Patterson an investment banker at not being able But like NOAH Insider before it, $17 trillion VENTURES KevinJohn Brown Doran $16 trillion EQT DominikLucian Stein Schoenefelder to find information on Europe’s most Dealroom is perhaps best described as PERMIRA Andrew Young KristiaanVania Nieuwenburg Schlogel SOFINA Mathieu Poma dynamic tech companies. Europe’s answer to Silicon Valley’s Angel- TCV John Rosenberg VINTAGE INVESTMENT Alan Feld FabianCarsten Wasmus Bleckwehl In August, Wijngaarde left NOAH Ad- List, which has helped more than 1,300 John Doran PSQUARED ASSET Patrick Schmitz- visors, where he had been a director since start-ups raise over $200 million and hire PARTNERS Irit Habshush ThomasFranziska Klews Kayser TPG Malte Janzarik MANAGEMENT Morkramer 2009, to set up Dealroom. The new site, a some 3,000 employees. (AngelList, which Tomas Kubica VINTAGE INVESTMENT Alan Feld platform where investors and tech com- was founded by serial entrepreneur and Two economies of similar size VITRUVIAN PARTNERS Jussi Wuoristo ADVENT INTERNA- Thomas Weisman panies can connect and share information, angel investor Naval Ravikant, just com- PARTNERS Irit HabshushThomas Studd TIONAL John Messamore SEARCHLIGHT CAPITAL Francois Dekker launched on October 22nd. pleted a round of fund-raising, raising $24 EQT Dominik Stein BUT TWO VERY DIFFERENT TECH INVESTMENT ENVIRONMENTS... Kristiaan Nieuwenburg “The goal is to use my experiences and million in September from 116 investors frustrations from 10 years in investment including the Kauffman Foundation, Atlas VITRUVIANZOUK PARTNERS JussiSamer Wuoristo Salty APAX PARTNERS RobinFabian Muerer Wasmus SILVERLAKE Simon Patterson Thomas Studd banking to build something more effi- Venture, Google Ventures, Yuri Milner, 841 funds Nathan Medlock TrippThomas Lane Klews Debt €14 billion SOFINA Mathieu Poma cient,” says Wijngaarde, who worked for Chad Hurley, David Sacks, Max Levchin Lehman Brothers and Nomura, focusing and Evan Williams.) ZOUKACCESS TURKEY Samer Salty BARING VOSTOK Dmitry Kamenskiy Altuğ İnan ADVENT INTERNATIONAL Thomas Weisman on the technology, media, telecommuni- “If I have only 10 seconds to explain CAPITAL GROUP Nathan Medlock MaximJohn Loginov Messamore TPGFUND CONTACTSMalte Janzarik cations sector, before NOAH. what I do, I also make that comparison Dealroom aspires to be a community [to AngelList], but there are a couple of €4 billion for companies in all investment stages, big differences,” Wijngaarde says. 105 funds ACCESSCATALYST TURKEY INVESTORS Brian Rich BLACKSTONE Audrey Klein EUROPEAN SPECIAL Olya Klueppel Altuğ İnan APAX PARTNERS Robin Muerer from seed stage to late growth. Wijn- Unlike AngelList, Dealroom covers CAPITAL GROUP HaideTripp Hong Lane OPPORTUNITIES Natalia Nowak gaarde hopes entrepreneurs will use their late-stage companies as well as start-ups The U.S. has 8x more Venture ...investing 3x more capital in HOLLAND KyangYung Debt profiles on the site as an official channel — late-stage companies have been a par- Capital funds... companies each year ATOMICOPRIVATE EQUITY Wouter Gort HARTZ,BARING REGEHR VOSTOK & ChristianDmitry Kobilke Kamenskiy BLUE TREE GROUP Michael Daldrup for sharing information with future inves- ticular personal focus for Wijngaarde. And FUND CONTACTS €17 billion PARTNER PhilippMaxim Manchot Loginov tors. Dealroom, he says, can help them Dealroom also doesn’t offer fund-raising 320,000 angels field incoming investment interest more and recruiting services that AngelList does. CATALYSTINVESTMENT INVESTORS BrianHenrik Rich Persson SILICON VALLEY BANK Alex McCracken EUROPEAN SPECIAL Olya Klueppel efficiently. Meanwhile, investors can use “Dealroom is more focused on the AB KINNEVIK MARYLANDBLACKSTONE HinrichAudrey Stahl Klein OPPORTUNITIES Natalia Nowak it to better track target companies and business development side, it means we GMT Natalie Tydeman HelgeHaide Luetzen Hong know when to approach them. also cover companies that don’t do fund- INSIGHT Harley Miller Wijngaarde started laying the ground- raising; some of the best companies out €4 billion BLUE TREE GROUP Michael Daldrup 75,000 angels HOLLANDVENTURE PARTNERSPRIVATE Kyang Yung PARTNERSHARTZ, GROUP ChristianChristian Unger Kobilke work for the platform while he was still there don’t want to fundraise and some of EQUITY Stephan Seissl at NOAH. An earlier version launched a them are highly profitable,” Wijngaarde REGEHR & PARTNER Philipp Manchot year ago as NOAH Insider. “It’s such a big says. “They are sometimes the most inter- SILICON VALLEY BANK Alex McCracken ...investing 4x more capital into OAKLEY CAPITAL Mark Joseph ambitious project that it needs full-time esting companies for investors.” The U.S. has 4x more business angels... start-ups each year attention — not just from me but from Companies that are not courting VCs the whole team. That’s why I decided are the kind he would especially like to

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CONTINUED FROM PAGE 9 counterparts, says Onur, because of Offline players who try playing their geographic proximity, intertwined cul- favorite games online or on their mobile you want is for bad feelings to arise at the Francis Nappez (at left), Nicolas Brusson and tures and religious and political affinity. phone often then begin playing other top, because often that will seep down and Frédéric Mazzella (at right), the founders of “Just as it’s difficult for an American games for the first time in what be - adversely affect the entire organization.” BlaBlaCar, a fast-growing pan-European ride- company to be successful in China, comes a virtuous circle for Peak Games. Hultman — who relied on Aspen World- sharing service. Brusson says he and other company Japan and Russia, it’s the same in the “Facebook started out very impor- wide to recruit for QlikTech — says the managers spend 25% of their work time looking for Game On Arabic world,” says Onur. “It’s not tant in gaming, especially social and process isn’t necessarily a zero-sum game and interviewing potential employees. something that you can just improvise.” casual gaming, but now there is a trend of one person losing the CEO or other ex- For Peak Games, Focusing On Turkey in the world, especially in the West, of ecutive title to a newcomer. Often, he says, people moving to mobile,” says Onur, the best solution lies in recruiting proven its leadership hiring needs.” And The Middle East Is Proving Lucrative Peak Games’s phenomenal who serves as Peak Games’s chief strat- business managers as advisers to the CEO With this in mind, Forsyth suggests, “it is egy officer. “Since we are in an emerg- or board, or in similar positions that don’t beneficial for early-stage companies to un- growth puts it in the same ing market we react to change a little necessarily shuffle titular cards or under- derstand their cultural DNA, management league as some of the home bit later, but we are seeing this trend mine egos. “Even the most capable and bril- style, and their vision for the company. too. If you look at the user base, a huge liant founding CEO is going to be an eight Cultural DNA fit is vital, as is hiring people runs of the tech world: it chunk is still coming from Facebook out of 10 on the total skill table, and usually who share your vision. There is a lot of Peak Games’s phenomenal growth claims to have reached its and we continue to invest there, but won’t have a problem getting guidance on competition to hire people from specific puts it in the same league as some of the we realize that mobile is the future and those two weaker elements,” comments technology sectors, for example in the big home runs of the tech world: it claims first 10 million users in just we’re investing there so we can be the Hultman, who cites Spotify and Wonga data space, and often the larger corpora- to have reached its first 10 million us- 270 days, much faster than leading local player.” (Facebook’s re- as examples of companies where found- tions can have the upper hand in hiring or ers in just 270 days, much faster than cent purchase of Parse, a Silicon Valley ers retained the top spot while accepting retaining these candidates by offering sal- it took Twitter and Facebook to reach it took Twitter and Facebook back-end-as-a-service start-up, is part assistance that helped build the businesses ary packages which start-ups can’t compete those numbers. to reach those numbers. of the American social network’s own into world beaters. “Whether you’re talking with. However, exceptional candidates do First mover advantage and impres- The quick traction helped big push to become more relevant to about one person or an entire company, choose to join a start-up instead because of sive traction helped Peak Games, which mobile developers and help players like recruitment is always about complement- the passion, energy and commitment they now has about 150 employees and 50 Peak Games, which now Peak Games make the shift to mobile.) ing weaknesses with proven strengths.” see from the founders and the team, and contractors based in Turkey, Jordan has about 150 employees Peak Games’s most successful games That can be easier said than done. First, because they have the opportunity to par- and Saudi Arabia, raise $30 million — which are offered over both the An- start-ups need to prepare themselves. The ticipate in upside potential of the company from investors that include Earlybird and 50 contractors based droid and iOS platforms — already earn search is going to be long and difficult be- via the employee stock option program.” Venture Capital, Hummingbird Ven- in Turkey, Jordan and Saudi more than half of their revenues from cause of the relative dearth of qualified Second, keep all avenues of recruitment tures, Endeavor Catalyst and an inves- mobile. Onur says Peak Games will re- candidates generally and the challenges open. Though virtually all tech companies Rina Onur, Peak Games co-founder and chief strategy tor from the Middle East whom Onur Arabia, to raise $30 million lease some financial information for the associated with finding someone with ex- use headhunting specialists, most continue officer. The company’s revenue has quadrupled each declined to name. from investors that include first time later this year. The company perience in specific technologies or sectors. searching on their own. Nicolas Brusson, year since its founding. “Raising as much as we did early on has limited itself so far to saying rev- “It can take three to six months to find or founder and COO of BlaBlaCar.com, a was one of the best things we could Earlybird Venture Capital, enue has quadrupled each year since replace someone,” Forsyth says, “and there- fast-growing pan-European ride-sharing have done for the company,” says Onur, Hummingbird Ventures, its founding. With all its games free to fore the team should have an understand- service, says he and other company manag- who has a degree in economics from play, the company gets almost 97% of ing of when the hire will be needed.” The ers spend 25% of their work time looking Harvard. Prior to co-founding Peak Endeavor Catalyst and an revenue from micro in-game purchases conversation about any succession planning for and interviewing potential employees BY ERIC SYLVERS Games she spent time in London work- investor from the Middle East such as virtual tea and baklava. should take place early between the found- in addition to using recruiters. And like ing for Morgan Stanley and then moved whom co-founder Rina Onur, By targeting overlooked, rapidly- ers and investors and should result in align- most other tech outfits in the same work- Istanbul-based Peak Games’s farming back to Istanbul, where she had gone to growing regional markets, the company ment between the board and the founders force bind, BlaBlaCar has established an simulation games don’t include pigs high school, to work in private equity. a scheduled speaker at NOAH has been able to get a leg up on com - on when to hire additional senior executive in-house incentive and reward scheme or vineyards. Tailoring for the local “We saw the opportunity to penetrate a Summit, declined to name. panies with a global focus. And that talent. Forsyth says, “effective C-level hiring to encourage current employees to use market consists, among other things, wide open market and wanted to scale ‘s a development that is likely to lure is crucial to the success of a high-growth VC- their personal and professional networks of women characters wearing the hijab very fast. Having access to capital al- more gaming companies and investors backed company and a company can ensure to identify qualified people who might be cialists — especially internationally — but I’d might be a good personal fit. In the end, and creating the online equivalent of a lowed us to do that.” Some of the games adapted for Fa- to the region. its ability to adapt to new opportunities and interested in open positions. say around 80% of our hires have come from Bertrand contacted and signed on someone Turkish coffeehouse’s ambiance — in- Interest in the region is certain to cebook and mobile — the most popular market changes by taking the time to plan “Like most companies, we use recruiting spe- internal networking and direct talks,” says he’d come across after HouseTrip’s 2009 cluding the smoke, coffee and baklava. intensify. The Turkish domestic market of which is Okey, a traditional Turkish Brusson, who said he’d immediately add 20 launch in Lausanne, and had admired since: If that sounds too niche to be inter- holds lots of promise: mobile phone tile-based game — have been played in to 25 more people to BlaBlaCar’s current staff former Skype CEO Michael van Swaaij. “It SELECTED EXECUTIVE SEARCH FIRMS USED BY SCALING START-UPS IN EUROPE esting think again. Three-year-old Peak penetration is high and about half of Turkish coffeehouses for generations. of 100 if qualified candidates were available. was just a logical choice on the business and Games offers both digital and mobile Turkey’s 77 million people are online. NAME HEADQUARTERS AREA OF FOCUS “The other good thing about the incentive human level,” Bertrand says. versions of traditional Turkish board, Unlike Russia, where most people still program is it allows people already working But he’s also the kind of recruit that, as card and tabletop games and Western pay in cash, in Turkey more than 60% Renovata London, UK Focuses on recruiting Chairman, NXD, CEO, CFO, COO, CTO, CMO, and here to propose candidates they know would Brusson notes, can be doubly beneficial. In games adapted for Turkey and Arabic- of adults use credit cards. That’s not all. Partners VP roles across all major functions. fit in well. That’s really important.” addition to the business and management speaking companies. It has 12 million More than 70% of the population is un- Indeed, that approach is a hedge against skills involved, van Swaaij corresponds daily users in Turkey and the Middle der 35, according to research company Egon Zehnder New York, New Global executive search firm. With revenues of $649 million in 2012, one of the main risks in recruitment at any to what Brusson calls a “showcase” hire, East and is growing rapidly. comScore, and they are big consumers York, U.S. the firm ranks among the top three worldwide. level: introducing someone new whose whose reputation and relatively high pro- “We don’t define success based on a of social media: Turkey is the sixth- style, personality, and past experience clash file in the tech sector can act as a magnet specific game platform or genre,” says largest country on Facebook. Aspen Marlow, UK International retained search and consultancy services. Also offers with the unique internal culture of tech for future transfers to the company. “A Peak Games co-founder Rina Onur, 27, North Africa and the Middle East Worldwide outsourced research services to support clients' own recruitment companies. “You can mess up the entire star or showcase person can make attract- a scheduled speaker at NOAH Summit, are also rich targets. In the Middle East strategies. Focuses on the tech sector. atmosphere — and even the entire coming new people a bit easier,” says Brusson. a London conference to be held No - there are 24 million Facebook users, pany — if someone comes in and messes “And it decreases the risk of losing current vember 13th and 14th that’s expected including six million in Saudi Arabia, The Up Group London, UK Boutique executive search and networking firm focused on the digital, up the internal culture,” says Brusson, a employees to competitors as well.” to attract close to 2,000 attendees this but 60% of the population is still not mobile and technology sectors. scheduled speaker at NOAH Conference Despite the 16 weekly recruitment calls year. “Some say they are the leader of online. Egypt had 12 million Facebook 2013, which is taking place on November his developers receive, Bertrand says he’s this or that, but we don’t define our - users at the end of last year, according Skillcapital London, UK Focused exclusively on the private equity industry. 13th and 14th in London. only lost one of those techies to rivals in the selves in that way. We are very much to Internet World Stats, while Morocco Mindful of that, when it came time for past 13 months. Meaning he and HouseTrip focused on a region. Initially we only had five million and Algeria four mil- The Forsyth London, UK Focused on IT and emerging technology fields across the UK, East & Bertrand to look for someone to take the must be doing something right in the war served the Turkish market and then lion. And, there is still plenty of room Group Western Europe and the U.S. Typical assignments include Chairman, chairmanship of HouseTrip, he not only be- to attract and retain talent. As the battle the Arabic-speaking market. We knew for growth in the region, as just a third NED, CEO, COO, CFO, VP, Director and Country Manager. Forsyth Group gan looking for entrepreneurs with proven for talent continues to rage, other Euro- it was a large, high-growth market of Egyptians, half of Moroccans and one also recruits entire teams. records of business development; he sought pean tech companies can only hope to be that was very under-penetrated and in seven Algerians are online. someone who’d fit the particular culture that lucky. underserved. There was nobody build- Turkish companies looking to ex- Three-year-old Peak Games offers both digital and mobile versions of traditional Turkish board, card and tabletop Harvey Nash Wayne, New Global IT recruiting, IT outsourcing/offshoring and executive search of the company. He also churned through ing games targeting this region and pand into the Middle East and Africa games and Western games adapted for Turkey and Arabic-speaking companies. It has 12 million daily users in Jersey, U.S. solutions. his own encounters and exchanges in the these people.” have an easier task than their Western Turkey and the Middle East and is growing rapidly. tech world over the years for someone who

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CONTINUED FROM PAGE COVER Keeping up with the pace of change and approximately one in three mobile different channels simultaneously, the The growth of mobile gaming is upend- is not easy. Unruly Media COO Sarah transactions are actually done in a store. offers will be personalized according to ing the business model based on the sale of in these key European markets, so the point points to a recent Adobe study in GLOBAL VIDEO GAMES SOURCE: Forrester Research data shows that a specific consumer’s purchase patterns, games — and the devices used to play them. largest part of the market is still offline. which 76% of marketers said their work PWC (EXCLUDES HARDWARE more than half of European online buy- social network affinities, website visits, The new approach is to give away games The same is true for the U.S. market (see has changed more in two years than in SECTOR REVENUE ($BN) REVENUE), COMPANIES ers have already used a tablet or mobile loyalty programs, and other mined data. for smartphones or tablets and then to earn the chart). the past 50. (See the story about Unruly phone in the past three months to support Creating an omni-channel shopping revenue from in-game purchases, advertis- Online gaming is no exception. Even Media on page 6.) Part of what is driving 80 CONSOLE PC a purchase in some way. Its mobile com- experience for consumers presents op- ing and other add-ons. (See the story about though a report by Digi-Capital, an invest- the change in advertising is the fact that merce forecast for 2012 to 2017 predicts portunities for established companies like gaming in Europe on pages 5 and 6.) ment bank that specializes in mobile and 1.4 billion people, or one in five people ONLINE ADVERTISING that mobile ecommerce revenues across PayPal and Google as well as for start-ups. “Mobile has fundamentally disrupted games, predicts that mobile and online around the world, went online via their 70 Europe will rise from €1.7 billion in 2011 But when it comes to global e-commerce the games market across sectors glob- games could grow the total global video mobile devices last year. Mobile usage MOBILE to €19.2 billion in 2017, reaching 6.9% — whether it is selling physical goods or ally,” Digi-Capital Founder Tim Merel games market size to $83 billion, the sec- has helped drive Internet adoption in 60 of sales and changing the face of retail. providing new types of mobile payments — says in a report. “For games, the tran- tor will still only represent 55% of the Asia-Pacific, Latin America, the Middle Mobile payment services are being it is all about execution, adaptation to local sition to free-to-play and communal total market’s revenue. East and Africa. So, marketers have begun merged with gift cards and loyalty and markets and who has the deepest pockets. gameplay is changing sector dynamics, “Looking at all these numbers, one to allocate a larger portion of their adver- 50 rewards programs, potentially trans- The key to the success of Rocket In- delivering up to 10x-20x revenue uplifts message is clear, Internet is the largest tising budgets to the mobile ad market in forming shopping more in the next few ternet, a Berlin-based incubator which for market leaders.” parallel economy and there can only be recent years. years than the Internet changed retail scouts for successful business models He says he believes mobile Internet one question: Are you with or are you And how. Worldwide mobile ad spend- 40 so far because it will impact everything and then clones them in new markets, has could create up to $11 trillion in value against us? Co-opetition for bricks and ing is forecast to increase to $36.9 billion people buy. been good execution and deep pockets globally by 2025, across all industries, not mortar has to be the answer for surviv- by 2016, up from $13.58 billion in 2013, 30 coupled with a very focused local ap- just games. “Mobile Internet-connected al for the incumbent businesses,” says according to eMarketer. The Asia-Pacific THE FUTURE OF SHOPPING proach. Rocket is currently operating devices, mobile broadband subscrip- Marco Rodzynek, a partner at Noah region previously had the largest mobile over 50 such companies in Europe, Asia tions, mobile data usage and mobile apps Advisors, the corporate finance firm ad expenditures worldwide, primarily due 20 So what will the future of shopping and South America. growth are driving disruption across all behind NOAH. to advanced mobile advertising markets look like? Online-only stores such as The market traction enjoyed by Za- tech related markets,” he says. That is the For start-ups the opportunity is big, in Japan and South Korea. However, con- Warby Parker and Fab will open bricks lando, a global hybrid Zappos and Asos challenge, for Europe’s Internet compa- so the ambitions for companies need sumers are rapidly adopting smartphones 10 and mortar outlets. No more worrying clone that has a valuation of €3.6 billion nies, and the opportunity. to be big as well. “We at NOAH look at and tablets in the U.S. and marketers about redeeming coupons or loyalty and is now active in 14 European mar- companies addressing sizeable market there are taking advantage of growing 0 points — anything you have earned in the kets, can be partly attributed to heavy TV opportunities with quality products and mobile ad opportunities, causing North online or offline world will be digitally advertising. (The company started life as bullet-proofed execution plans. Ninety America to surpass Asia-Pacific last year 2007 2008 2009 2010 2011 2012 2013F 2014F 2015F recorded and automatically deducted at a Rocket Internet company.) Zalando, percent of the companies we see are oper- with $3.9 billion in mobile ad spending. time of purchase, no matter where you which is expected to go public, built its ating in too small niches or have product And in 2015 an expected surge in mobile buy. Since payments are mobile they brand in its home market through a deal EUROPEAN ONLINE features which do not justify a company,” ad investments in Western Europe will will no longer be tied to old-fashioned with Germany’s ProSieben-Sat.1, a mass says Rodzynek. push Asia-Pacific to third place. cess is not equally distributed. The UK, brands currently dominate this online Europe, which is home to successful cash registers, freeing sales assistants media company that operates commercial LEISURE/UNMANAGED While the projected growth and the eMarketer is predicting that rapid mo- Scandinavia and France have a higher segment, PhoCusWright says it believes e-commerce giants such as Asos and Za- inside stores to help customers check out television and premium online platforms BUSINESS TRAVEL opportunity in digital advertising is huge, bile Internet adoption combined with proportion of people who book online metasearch and service updates made lando. Europeans have become expert and pay from the aisle or the changing and generates some €1.5 billion in TV ad (€BN) AS A PECENTAGE Rodzynek warns that success is not guar- the continued development of mobile ad versus through traditional channels, says available directly by hoteliers could influ- at adapting e-commerce models to indi- room. Window shopping will take on a revenues per year. anteed. “Criteo has it all: market leader- networks and greater choice of mobile ad Bujarski. Spain and Italy are still some- ence market dynamics and the online split vidual markets and building out to other whole new meaning: city dwellers out for In a maturing TV ad market, ProSie- OF TOTAL TRAVEL ship, a global business, growth, a large formats will significantly enhance how what behind when it comes to online between direct and intermediate bookings. markets in rapid succession; and some of a stroll will scan items on mannequins benSat.1 was actively searching for new MARKET 2010-2014 underlying market size, a super manage- marketers use mobile to engage consum- travel booking adoption as “the Internet Expedia earlier this year acquired a the biggest opportunities for e-commerce with their mobile devices and click to growth segments to leverage its excess ment team and even profits, which should ers, especially in North America and connectivity is not quite there and the 61.6% equity stake in Trivago, a German companies are in emerging countries. buy and ship, even if the high street store ad inventory and decided to take an in- ONLINE LEISURE/ convince the most critical U.S. investor,” Western Europe. Facebook’s and Twit- overall channels for e-commerce are metasearch company that focuses on That said, since only about 14% of is closed for the day. novative approach by selling prime time UNMANAGED BUSINESS he says. “However, to get to the next level, ter’s mobile advertising streams, as well as less developed,” he says. And, high rates hotels, for approximately €434 million global shopping is done online so far, e- Relevant location-based shopping ex- ad spots to start-ups at a discounted rate the Google type of positioning, Criteo mobile’s potential for audience targeting, of unemployment and depressed local in cash. Trivago compares more than commerce has by no means reached its periences will become the norm, meaning plus revenue share and equity stakes. TOTAL CROSS BOOKINGS needs to get either exposure to users will also attract marketers. economies are making things worse in 600,000 hotels across 140 booking sites peak in even the most developed markets. customers will be able to skip waiting in Zalando is among the start-ups that ONLINE PENETRATION or diversify its business to other online these markets. in more than 30 countries and 23 lan- Start-ups still haven’t figured out what to line, by ordering remotely and picking originally took the media company up marketing tools. Just to be in the middle ON-LINE TRAVEL Germany is a special case. “There are guages. Expedia is hoping the acquisition do with 75% of the market. The way to up their food or favorite drink in-store. on its offer. Now the German TV giant is between advertisers and publishers is very high rates of travel and the country will allow it to expand into the European capture those purchases will be through In this new omni-channel world, mer- running a contest at NOAH for the second 34% 38% 41% 42% 44% long term not attractive as we have seen In online travel, “mobile is actually has a high GDP but the amount of travel online travel market, taking business away mobile, predict venture capitalists In- chandise and promotions will not only year in a row, giving away millions of euros with the affiliate marketing players, like growing the online pie — as it offers a booked online is relatively low compared from Priceline/Booking.com, which uses formilo interviewed. Today nearly half of be consistent across all retail channels, worth of ad spots to other start-ups. It now TradeDoubler.” novel platform to those who normally to the UK,” says Bujarski. “There are a Kayak, a U.S.-based travel metasearch en- local shopping starts on a mobile browser adapting to consumers who want to use operates a division called Seven Ventures wouldn’t book online,” says Luke Bujar- few reasons for that: Germans tend to buy gine. Kayak has changed the way people that takes majority stakes in start-ups tar- 256.6

ski, PhoCusWright’s director of research. packaged travel, they stick to tradition search for and book flights and is now geting the German market and tries to help 249.1 242.0

Online travel companies in Europe are and book their vacation packages with expanding to offer complementary ser- make them market leaders through TV 236.0

ONLINE RETAIL vying for a bigger share of the digital pie. traditional travel agencies.” vices directly, like hotel and adventure DIGITAL AD SPENDING % change and % of total advertising. (See the story about this year’s 224.6 SALES AS % OF TOTAL Amsterdam-based Booking.com, which is Thomas Cook, a traditional globally- bookings. These developments could cut WORLDWIDE 2010-2016 ($BN) media ad spending Seven Ventures contest on pages 12 and 13.) now owned by the U.S.’s Priceline, cov- focused travel agency with an online into new entrants’ online traffic. While Rocket Internet companies 2009 2012 ers over 350,000 properties, features 24 presence, has stated that it hopes to At the same time, content is becoming DIGITAL AD SPENDING $163 make up a healthy percentage of e- million reviews and 10 million photos achieve 50% web penetration by 2015, a big factor, says Bujarksi. When people %CHANGE $149 commerce plays from Europe it would on its site, and offers 24/7 customer ser- says Bujarski. What’s more, the barriers go to TripAdvisor’s site they get hotel be wrong to paint the Continent as the 12% $134 vice in over 40 languages’ it’s a dominate to entry for new travel brands to enter this reviews, which is seen as a value add for %SHARE land of copycats. Innovative European $118 10% force in the market. European players in market are high since established players the customer, so that, too, could hurt up- companies like Asos and Net-a-Porter niche markets, like HouseTrip, which is like Booking.com and Expedia have big starts that don’t have the means to offer $103 helped pioneer fashion e-commerce and 112.2 105.2 8% $87 98.1

presenting at NOAH, are also building marketing budgets. similar services. became global champions. France’s vente- 89.0

6% booming European Internet businesses. It is tough to get people to come to new The overall European online travel $72 privee.com, which now generates over 76.2 And the number of online travel start- sites, especially when competing with market is growing an average of 10% a 25.9% $1.5 billion in revenues, gave birth to the 4% ups eager to grab their share of domestic big, established brands. Airlines have also year, says Bujarski. “There is a lot of re- 17.5% flash sales model which has since been markets is mushrooming. In Russia, for gained increasing share of online book- maining capacity to move online. But how copied around the globe. 2% example, Ozon’s travel site competes for ings as they bombard the market with it is all going to go, nobody really knows 9.3% Europe is also creating category leaders 0% business with a whole crop of new en- loyalty programs and new web channels for certain. Tour operators will continue 15.2% in gaming. One of the most successful, Su- 2010 2011 2012 2013 2014 BRITAIN GERMANY FRANCE UNITED trants, including Ostrovok, OneTwoTrip, to bring customers directly to their web- to have successes with bricks and mortar perCell, a three-year-old company which SOURCE: NOTE: STATES Travelmenu.ru, Traveltipz.ru, anyway- sites, Bujarksi says. stores, particularly in smaller markets, for 2010 2011 2012 2013 2014 2015 2016 just sold 51% of its stakes for $1.5 billion, PHOCUSWRIGHTS EUROPEAN 2012-2014 SOURCE: anyday, tutu.ru, Travelatte and Oktogo. Hotels potentially hold the biggest some time to come.” attributes its success to a “tablet-first” ONLINE TRAVEL OVERVIEW PROJECTED EIGHTH EDITION CENTRE FOR RETAIL RESEARCH But online adoption of travel varies promise for growth for new entrants. As with advertising and online trav- SOURCE: EMARKETER, DEC 2012 approach to its popular games, Clash of widely across European markets, so suc- While established online travel agencies el, mobile is changing e-commerce in Clans and Hay Day.

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What makes Ireland great, makes Ireland great for business

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