Live Free or Die

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• Live Free or Die
• New Hampshire motto
• My Personal Experience of the
• Social Impact of Technology
• Presented by Julie Meyer
• Microsoft at the British Library

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WHY LIVE FREE? Because death is not the worst of
evils

• "Live Free or Die" is the official motto of New
  Hampshire, adopted by the General Court in 1945.
  It is probably the most well-known of all state
  mottos, partly because it speaks to an aggressive
  independence inherent in the American dream, and
  partly because of its contrast to the mild
  sentiments usually found in such mottoes.
• The phrase comes from a toast written by General
  John Stark on July 31, 1809. Poor health forced
  Stark, New Hampshire's most famous soldier of the
  American Revolutionary War, to decline an
  invitation to an anniversary reunion of the
  Battle of Bennington and to send his toast by
  letter
• Live free or die Death is not the worst of
  evils.
• The motto was enacted at the same time as the
  state emblem, on which the motto appears.

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AGENDA FOR THIS MORNING

• A Typical Day in the life of Ariadne
• What Have We Learned
• Europe Loses Feudalism
• From Web 1.0 to Web 2.0
• Tipping Point Companies

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ARIADNE CAPITAL Whats in a Name?

• Ariadne was the Greek princess who helped Theseus
  get through the labyrinth with the golden thread
• Thats what we do with our companies we help
  them navigate and negotiate their labyrinth
• Lets imagine Ariadne is also - 21st Century
  Woman and not at all interested in technology .

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A TYPICAL DAY IN THE LIFE OF Ariadne

• At Ariadne, we inhabit a universe where people
  move money between accounts using Monilink on
  their mobile phone thanks to Monitise.
• Where we know whats going on at home via
  Intamac, and read our voicemails and speak our
  blogs thanks to SpinVox.
• Were helping people like ourselves with an
  occasional loan through Zopa, and staying up to
  date on the local news via Consenda.
• We listen to the Otodio version of the Financial
  Times on the train on our mobile phone, and when
  we Skype out, we write in English, and
  Translution converts it to other languages
  automatically.

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ARIADNES WORLD From Garage Developer to the
Kitchen Table Web Entrepreneur

• The era of the garage developer to the age of the
  kitchen table web entrepreneur    
• She is tech agnostic, and demands immediacy of
  experience and high levels of customisation     
• A common problem she and her friends who are road
  warriors, remote workers, and people in global
  businesses face is both on a personal and
  business basis -  
• 1 too much disaggregated information
• 2 more and more time to keep control of
  information
• 3 more confronted with the need to share
  information.    
• VPN access, version control chaos, email, not to
  mention WIKIS and mashups are inefficient
  workarounds actually.   
• In many ways, the rate of user expectations on
  mobility, connectivity, customisability from
  users in the post-Skype world that we live in is
  exceeding the rate of innovation.   
• Where is this going? as a consumer, I want a
  universal key to my personal information a
  unique ID which doesnt carry the information
  itself.   
• Metaphorically - I want to be able to go into any
  car in the car park, and put the key in the car,
  and start the car, and to have the same
  experience driving the car, not worrying about
  where things are stored.  

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ENABLING WEB MOBILE 2.0 What have we learned?

• Consumerisation of Technology
• New Products and Services gain traction through
  Consumer Adoption first and then get picked up in
  the Enterprise
• Go To Market Strategies are not geographically
  bound
• Smart entrepreneurs segment their potential
  customer base and their addressable market by
  characteristics other than geography ie early
  adopters of broadband, high mobile penetration
  etc
• People are living more and more of their lives
  online
• Giving people a more frictionless, efficient way
  to communicate matters.
• Business Models
• Initial free services establish consumer behavior
  and then can lead to a business model
• The business models where the most people win
  will dominate the market
• Monitise and Meridea
• Great marketing trumps great technology
• RISC vs CISC
• Skype Free Calls on the Web

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IS THERE A PROBLEM? Feudalism Alive and Well

• Many Europeans still crave as a life goal to
  become aristocratic and see life through the
  Lord/Peasant framework
• Default to being taken care of by the benevolent
  lord the government in tough times,
  sacrificing individual freedoms and willingly
  accepting taxes from the lord as part of the
  implicit deal. 
• Feudalism is the oppressive concept and structure
  which is the opposite of meritocracy and freedom.
   
• When Respect for authority is given or expected
  not because the authorities deserve it, but
  because of blood or family privilege, freedom and
  all of its benefits are lessened.  
• Building a Growth Story for Europe means taking
  individual risks and actions.
• To bring the metaphor up to date
• If European govts are the pusher, then its
  citizens have become the users. Once hooked, it
  is near impossible to get one off whatever one
  has become dependent upon.
• Perversely, the junkies are allowed to vote for
  their favourite pushers - Its sad but true.

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THE OPPORTUNITY FOR LEADERSHIP Entrepreneurship,
Internet and Capitalism

• Capitalism was about empowered authority which
  didnt necessarily activate the citizenry the
  Internet stands that on its head, and shifts the
  power to the Individual making Individual
  Capitalism the force of the 21st Century
• - Iqbal Quadir, one of the founders of Grameen
  Phone

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WHAT WILL THE FUTURE BRING Entrepreneurship as
Engine of Growth

• The next wave of large European-founded companies
  will be built by serial European entrepreneurs
• Kazaa and Skype founders launch Joost
• FastWeb founder launches BabelGum
• Samwer Brothers
• Cycle of innovation is increasing and shortening
• Globalisation is softening the edges of economic
  cycles
• Start-ups will be acquired earlier and remain
  more autonomous inside firms
• EMAP/WGSN
• Yahoo/Answers.com
• NewsCorp/MySpace
• ROI for MA will be recalculated and rethought

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YOUNGER TECH SAVVY GENERATION Is Changing
Consumer Behaviour and Outlook

• The Individual Revolution is Unstoppable
• People think of themselves as their own PL,
  their own brand
• Long-tail economics means that I can find others
  who share my tastes and interests I am connected
  to others but not necessarily by geography
• Web 2.0 is about self-expression blogging, UGC,
  communities
• MySpace, YouTube
• Control over Environment
• The desire to organise the worlds information
  Google or to explain how to do everything
  VideoJug reflects an implicit belief that man
  can have total control over his environment
• Control over Culture
• Passion, conviction and fearlessness transcends
  cultural boundaries
• The Death of European Feudalism finally

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TIPPING POINT COMPANY - 1 Monitise -Mobile
Banking Services

• Entrepreneur Alastair Lukies, WEF Technology
  Pioneer
• Backers Morse
• What They do The worlds leading Mobile Banking
  network
• Why is this importantBanking Comes BEFORE
  Commerce
• Consumer Benefits Source of funds into the
  mobile wallet and substantially reduces cost
  of cash for mobile networks and creates true
  lifestyle application
• 2.48 billion transactions switched per year
• 95 billion in issued funds
• Their brilliance not to treat banks like
  operators, and operators like banks
• To understand that there are basic banking
  services that you have to be able to do on your
  phone before you do more complex ones that is, I
  dont want to apply for a mortgage via my phone,
  but I do want to check your balance
• RBS, HSBC, Alliance Leicester and first direct
  have all adopted the Monitise platform for their
  mobile banking strategy
• Metavente with 9000 banks in their network are
  partner in the US

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TIPPING POINT COMPANY - 2 Zopa P2P Lending
Borrowing

• Entrepreneur James Alexander
• Backers Benchmark, Bessemer, Tim Draper
• What They do P2P Lending Borrowing
• Why is this important People want to lend and
  borrow from people
• Consumer Benefits The cheapest loans in the UK,
  no early repayment penalty
• Over 150,000 members in the UK
• Great financial return PLUS strong social reward
• c. 30 better return than leaving your money with
  ING Direct
• Defaults less than 0.2 
• 50 employees
• Now being copied in US, Germany, Canada, Denmark,
  Holland
• eBay, Virgin and Facebook have all entered the
  Social Lending market in the last 2 months
• Zopa getting ready to launch in the US,
  franchising and JV ing elsewhere
• Key learnings
• the Zopa community really care and want it to
  work .... direct comms with our Members are
  critical to successful development (e.g. blog,
  Bulletin Board, email etc)  
• trust is earned in financial services through
  time .... a trusted safe and secure marketplace
  is critical to success

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TIPPING POINT COMPANY - SpinVox 3 Voice to
Screen Leader in VoiceMessaging

• Entrepreneur Christina Domecq, EY Entrepreneur
  of the Year
• Backers Private Investors and Hedge Funds
• What They do SpinVox is a voice-to-text
  carrier-grade managed services provider
• Why is this important No one likes listening to
  voicemails
• Consumer Benefits Receiving communications how
  one prefers to receive them Storage and
  Forwarding abilities for voicemails
• SpinVox enabled worlds first voicemail to text
  service in 2004
• 130k customers proof-of-concept 1M people
  touched by SpinVox
• SpinVox has won awards for its product innovation
  and leadership
• SpinVox is being deployed by operators across 4
  continents
• Multi-lingual EN, SP, FR, GE
• Multi-channel Mobile, fixed, VoIP
• 17 operators signed hundreds of millions of
  contractual rev
• Expanding into the US

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THANK YOUjulie_at_ariadnecapital.com