Risikokapital og finansiering

1. Risikokapital og finansiering UIO, 1 februar 2005

2. Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?

3. FSV is a leading Nordic VC • Among the oldest and most seasoned VCs in the Nordic • Established in 1985 • Currently investing from MNOK 530 FSV III, raised April 2000 • Operating FSV IV, MNOK 590, largest secondary direct in the Nordic to date • FSV was a founding member of the NVCA (in 1989 …. and in 2001) • Experienced Investor in Nordic and international tech companies • Reviewed >3 000 projects and 6-8 portfolios since inception • Invested in 65+ companies and one major portfolio • Close co-operation with Advent International throughout • Founding member of the Nordic Venture Network • Proven exit track record • 12 IPOs, 3 on Nasdaq • 46 industrial exits • Introduced International VC structures to Norway • Preference shares, Anti-dilution, Veto-rights, Drag, Tag etc.

4. Our business… .. Is to identify high potential growth companies .. Invest in these companies ……work closely with management and other owners to build value in a 3-5 years perspective. .. Exit (IPO or trade sale), and repeat… Structured as funds to ensure liquidity focus and to protect owners

5. FSV currently manages approx. NOK 2 billion invested capital across 100+ portfolio companies FSV I FSV II FSV III FSV IV • Established 1985 • NOK 130 mill. fund • ICT sector focus • Fund closed • Established 1996 • NOK 300 mill. fund • Dedicated ICT fund • Established 2000 • NOK 530 mill. fund • Dedicated ICT fund • 70+% of committed capital invested • Established 2003 • NOK 590 mill. secondary fund with follow-on capital • Sectors include: ICT, energy, maritime, services

6. FSV has a diversified blue chip investor base Main shareholders in Four Seasons Venture II · Aksjefondet Skandia Teknologi · Gjensidige NOR Spareforsikring · Bonheur ASA · Møller Investor AS · Den Norske Krigsforsikring for Skib · Schibsted Multimedia AS · Ganger Rolf ASA · Skaufoss AS · Gjensidige NOR Forsikring · Torstein Tvenge · Gjensidige NOR Sparebank · Vesta Forsikring AS Main shareholders in Four Seasons Venture III · A vanse · Orkla ASA · Bonheur ASA Schibsted Multimedia AS · · Control Consult AS · Skandia Liv AB · Den Norske Krigsforsikring for Skib · Sparebank 1 Livsforsikring AS · Gjensidige Forsikring · Storebrand Livsforsikring AS · Gjensidige NOR Spareforsikring · Torstein Tvenge · Hartog & Co. AS Main shareholders in Four Seasons Venture IV · Brage Invest AS · Lærdal Finans AS · Dyvi AS · Natexis Private Equity International · Firmament AS · Opplysningsvesenets Fond · Foinco AS · Skagen Vekst · Hafslund Offentlige Pensjonskasse · Sundt AS · Hamang Papirfabrik AS · Tredje AP Fonden - · Indigo Invest AS · Vital Forsikring ASA · Institusjonen Fritt Ord

7. Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?

8. A good VC manages risk Pre-seed Investments Risk Seed Investments Venture Investments Private Equity Investments Public Shares Corporate Bonds Treasury Bonds Return Due diligence process and right agreement structures are key risk management tools

9. ..and seeks to optimise the risk-reward ratio • Build your execution plan • Estimate capital required • Consider risk-reward from investor perspective (market risk? - technology risk? - team risk?) • ....reiterate Knowing the customer is a pre-requisite for a succesful sale (you want the investor to ’buy’ your story)

10. The venture lifecycle is fairly standardised Growth/ Vekst / Vekst / Vekst / Dealsourcing Screening Screening Due Diligence Due Diligence Investering Investment Internasjonal International - - Exit Exit Screening Screening Due Diligence Due Diligence Investering Investering Internasjonal Internasjonal - - Exit Exit isering isation isering isering 2-18 weeks 2 5 years - - • Screening: • Ensure broad flow of high quality • Conduct initial screening • Due Diligence: • Deep analysis of the company • Issue Term Sheet • Complete legal, commercial and technological Due Diligence • Investment: • Unanimous partner group • Investment committee approval • Best practice legal structures • Growth/Intern.: • Build the company • Exit: • Exit through: • Merger • Trade Sale • IPO Purpose

11. ..and most VC’s look for the same basic things • A great team …….and ideally a good idea and scalable business model • A large and/or fast growing market

12. Building trust early creates the right basis

13. ..for a productive partnership VC’S DRIVE THE VALUE AGENDA: • Strategic & international perspective and experience • Partnering: customers, channel and technology • Building the management team • Coaching (and changing) management • Financial and strategic control functions • Assisting in M&A, IPO and other financing activities • Balancing the technology and market perspectives

14. Who controls the company following an investment? … maintaining sense of shared purpose is essential for success

15. Classic entrepeneur pitfalls • Explaining product/business model is only thing that matters • VCs consider individual projects solely on their own merits • Raise money when needed as opposed to when available • 100% times 1 > 30% times 10 • VCs focus exclusively on maximising upside • Rational machines, not emotional humans….

16. Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?

17. Creating a successful startup • Share – information, ownership, honour • Sell – to everyone all the time • Create an ecosystem – people can move mountains • Get paying customers - the proof of the pudding is in the eating! … Create a self-fulfilling prophecy!

18. The (FSV) SNDI ecosystem Investors Steinvender ASA Newco (now FSV IV) Advisory Board & Sector Experts

19. Contents Introduction The FSV Group How VCs think and operate Creating a successful startup What to do now?

20. What now? • Build credibility and competence • Work with people you respect (and that know more than you) • Learn to sell • Get to know your niche