Anne Glover

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(No Transcript)
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Anne Glover Chairman British Venture Capital
Association VCs Partners Not
Adversaries Sponsored by
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Over 60 billion Invested over 20 Years
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UK Private Equity

• A great British success story
• Second only to the US in the world
• 60 Billion invested cumulatively in 21 years
• By 165 member firms
• In over 11000 UK companies
• Employing over 3 million people
• Growing on average faster than the FTSE all share
  companies in
• Sales, employment, investment

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Investment Activity by Country

• Overall - 6.4bn (5.5bn) in 1,493 companies
  (1,459).
• UK - 4.1bn (4.5bn) in 1,274 companies (1,196).
• Overseas - 2.3bn (1bn) in 219 companies (263).

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Investment by Country 2001-2003
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UK Investment Activity by Stage

• Start-up - 73m (99m) in 185 companies (165).
• Other early stage - 190m (196m) in 242
  companies (233).
• Expansion - 867m (1,374m) in 645 companies
  (619).
• MBO/MBI - 2,944m (2,811m) in 202 companies
  (179).

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UK Investment by Stage 2001-2003
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UK Investment by Stage

• Increases across the technology-related sectors
• Technology - 817m (546m) in 701 companies
  (641).
• Information Technology - 580m (333m) in 439
  companies (341).
• E-Commerce - 399m (60m) in 168 companies (119).

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UK Technology Investment - 1995-2003
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Since Inception Performance by Category and
Subset to December2003
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Since Inception Performance by Technology vs
Non-Technology
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UK Private Equity

• A great British success story
• Second only to the US in the world
• Technology fund returns unacceptably low

BUT
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Estimated population of VC-backed IT companies
(11.4)
(10.3)
Source EY/VentureOne
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Estimated population of VC-backed IT companies
(per b GDP)
Source EY/VentureOne, Amadeus Analysis
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Cumulative Investment inVC-backed IT Companies
Average Cumulative Investmentper Company (m)
Source EY/VentureOne, Amadeus Analysis
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Cumulative Investment inVC-backed IT Companies
Average Cumulative Investmentper Company (m)
Source EY/VentureOne, Amadeus Analysis
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UK Private Equity

• A great British success story
• Second only to the US in the world
• Technology fund returns unacceptably low
• We need to aim higher and focus our capital on
  big opportunities and create winning companies -
  such as CSR

BUT
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VCs as Partners not Adversaries

• Venture Capital is not for every company
• Venture Capital works where there is
• A big market opportunity
• A defensible competitive advantage
• Growth that demands external capital
• A founding team willing to bring in external
  talent
• A collective vision that is ambitious enough to
  build a large (usually global) company