1.

• Through the Labyrinth

Presented by Julie Meyer for CIO Connect

London, UK

5 March 2008

2. AGENDA FOR THIS MORNING The CIO in 2008

Who is Ariadne?

Who was Ariadne?

Follow the Entrepreneur

What did we learn from Skype

M&A as the new R&D

The role of the CIO/CTO in a Start-up

Key Lessons Learned

Critical Success Factors

Game Changers

3. The Ariadne Capital Story Built by Entrepreneurs for Entrepreneurs

Founded in December 2000 to create a new model for financing entrepreneurship in Europe

My background

• Founded First Tuesday [largest network of entrepreneurs which launched Internet generation in Europe] sold for $50m to Jerusalem Global

• VC experience with NewMediaInvestors [now Spark Ventures]

• Raised more than $200 m for start-ups and advised more than 100 companies over 10 years

Ariadnes initial funding was secured from 45 founding investors who are leading entrepreneurs founders of BetFair, lastminute.com, SES Astra, Hotmail, WorldPay

Team of 12

Weve backed [advised] some significant game-changers in our history so far:

• Skype

• Espotting

4. 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

5. FOLLOW THE ENTREPRENEUR The credit belongs to the man who isactually in the arena It is not the critic who counts, not the man who points out how the strong man stumbled or how the doer of deeds could have done better.The credit belongs to the man who is actually in the arena,whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes short again and again, who knows the great enthusiasm, the great venture and spends himself in a worthy cause, who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly so that his place shall never be with those cold and timid souls who know neither victory nor defeat. -Theodore Roosevelt 6. ENABLING BUSINESS 2.0 What did we learn from SKYPE?

New Products and Services gain traction through Consumer Adoption first and then get picked up in the Enterprise

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.

Initial free services establish consumer behavior and then can lead to a business model

Great marketing trumps great technology

7. Assume InnovationOccurs Elsewhere

BILL JOY

Co-Founder Sun Microsystems

8. Innovation isDifficult to Sell -ISAAC NEWTON Physicist & Mathematician 9. WHAT WILL THE FUTURE BRINGEntrepreneurship as Engine of Growth

The next wave of large European-founded companies will be built byserialEuropean entrepreneurs

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

• Last.fm/CBS

ROI for M&A will be recalculated and rethought

10. THE OPPORTUNITY FOR LEADERSHIP Entrepreneurship, Internet and Capitalism

Capitalismwasabout 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 21 stCentury

-Iqbal Quadir, one of the founders ofGrameen Phone

11. WHAT ENTREPRENEURS DO INSIDE COMPANIESThey Get Out and Create a Market Storm

Entrepreneurs, if they're good, have the best insight into how particular markets are developing. They are in the "eye of the storm," dealing every day with how markets are dynamically evolving.

Entrepreneurs also think differently. They see things that others don't. They feel compelled to make stuff happen, often simply because they see something that doesn't exist yetand should.

Sometimes that blind faith leads to catastrophe, but more often, entrepreneurial insights eventually turn into step changes in how industries operate.

12. IS M&A THE NEW R&D? probably

If a large company acquires an entrepreneur's insight and innovation, it has the opportunity to get ahead of rivals and own the step change.

Time and time again we have seen that the benefits of market disruption and dislocation accrue to the first few players who embrace it.

Put another way, if a market disrupter is acquired by the entity he or she has the most potential to disruptand the acquirer embraces, rather than smothers, the disruptionit can be extremely value-enhancing.

Especially compared with the alternative.

13. What is needed in this world of fast innovation by the CIO and his/her team?

The Knowledge of how to manage risk in working with and deploying applications from companies who may not have 5 m on their balance sheet

The Ability to explain the enabling side of the business for the CEO so that it isnt a black hole

• Strategy without technology cannot be world-class

• The CIO interprets the companys strategy with technology a technology architect just as the CFO interprets the companys strategy from a financial point of view the financial architect

The Reach into Best Practices so that the CEO knows they are not reinventing the wheel

The Ability to build community in a changing organisation

14. Morse as Strategic Weapon Managing Risk

Mid-size Systems Integrator

Previously Known for being a Sun Reseller

Work well with Hyper-growth companies

Partnership of Entrepreneurs

15. Key Lessons Learned From Business 1.0/2.0 16. Lesson One Ecosystem Business Models win

Technology being used to redistribute the economics of content industries

Not so different to the Screen Writers Guild Strike in Hollywood

Why Monitise will be the mobile banking solution for the next generation they take care of all parties in the transaction

17. Lesson Two Were in an Attention Economy

This is why Curation Matters

And why subscription services may play a role

But most likely content will be free, and contextual advertising will be the business model

Acute Transparency trumps anything else

• Now Public

You have to work with peoples interest so align your business model to consumer behavior not protecting old industries

18. Lesson Three Long Tail of Social Media is Long

No shortage of bandwidth

Explosion of new economies of production

Community and UGC based content being interwoven in our lives, ranging from music to videos

Social networking and microblogging sites will jockey for your attention

Mobile Advertising will continue to struggle; go/slow approach due to tiny, low-resolution screens of mass-market handsets and operators fear of alienating subscribers

Contextual Advertising makes the Long Tail of Social Media viable

19. Lesson Four SME as a Channel to Market and a Market

The consumerisation of technology which hit a peak with SKYPE, yields the B2C2B Go to Market Strategy trend

Managed Services dominate; SaaS is not just a buzz word

• Critical Success Factor for SpinVox

• The move to hosted applications for the majority of organisations now seems to be a case of when and not if

The SME's day has finally come

• SaaS will have the greatest impact on companies and vendors alike in the SME space

• SME has always been tough for the IT and telco industries

• Advent of relevant, inexpensive, easy to use business applications that work with very little IT knowledge or support cost will result in the computerisation of the SME

• SME IT spend is expected to be up 8 to 10% over the coming years

20. Critical Success Factors For Business 2.0/3.0 21. CRITICAL SUCCESS FACTOR 1:Be as Unreasonable About Success as an Entrepreneur

Entrepreneurs have a view of the market and/or a consumer behavior, which drives them to bring an innovation to life.

Like becoming a Parent, if they knew what it would REALLY entail, they would think twice.

That leads them to be paranoid, and feel that they are in a race against time.

Which makes them learn how to:

• Act with Imperfect Information

• Never assume they control time

• Never give up tied to their identity

• Expect Success

22. CRITICAL SUCCESS FACTOR 2:You Know More Than You Think You Do

Dont just trust your instincts but listen, hone and refine your instincts

Determine what your Unfair Advantage is and Do More Of That

23. FACTOR 3: INVEST IN THE SUCCESS OF OTHERS Todays World is an Ecosystem

The Businesses with Business Models which enhance and grow the ecosystem will win

Abundance Mentality

• Focus on being a Net Contributor to the System rather than a Net Taker, and what you find is that your Sphere of Influence over the System increases

Focus on Long-Term Relationships

24. FACTOR 4:BE RADICALLY OPEN TO THE WORLD

Bill Joy, the former CTO and guru from Sun Microsystems, assume innovation occurs elsewhere.

Build reliable means to continually pull in whats relevant and potentially threatening to your business

• We have to be in many places and get signals sooner, Henning Kagerman, SAP CEO in the WSJ

Were not in the dialogue Nokia Senior Executive

Small things can indicate that large change is about to happen

25. FACTOR 5:EXACT ACCOUNTABILITY

Management is the search for accountability. Who is doing what, by when, why, and how, and most importantly, what happens if they dont?

The best entrepreneurs and executives are both leaders and good managers.

There are no bad Lieutenants, Sergeants, Captains there are only bad Generals

Trust is Efficient Trust but Verify

Economies who trust spontaneously develop and progress more rapidly Francis Fukuyama

26. FACTOR 6 CREATE THE CONDITIONS OF TRUSTSO THAT GREAT THINGS CAN HAPPEN

Trustisefficient; leadership is about:

creating the conditions of trust, and the combination of

building counter-cyclically,

paying attention to small change which indicates that large structural change is about to happen,

seeking out inefficient markets, and

investing in the success of others,

leads to businesses that are both valuable and sustainable.

27. Game Changers 28. I. Mobile Broadband is real Momail and Monitise 29. Themes from Mobile World Congress

The themes from MWC were definitely that mobile broadband is here at last and that email and location based services are to the big drivers (as well as simplicity) in the handset.

So if youre in the mass market for your own personal tech like me, and a big fan of cost-effective plans, youll approve of Momail's mission free mobile email.

The addressable market is the hundreds of millions of phones in the world

30. 31. What is Momail?

Momail is a unique mobile email solution

• affordable

• • free, low priced

• easy-to-use

• • no client

• • auto configuration

• • auto collect of emails from other accounts

• lean

• • optimizes attachments

• • drastically reduces data charges

• works with any connected mobile device!

32. About Momail

Founded in 2005

• Head office in Limhamn, Sweden

• First product beta released in July 2006

Funded by venture and private capital

Patent pending technology

• Mobile Message Optimization and Protection Engine (MMOPE)

• • Developed for mobile email, mobile communication and more

Initial focus on consumer mobile email

• Additional releases will include ehancements to ease the delivery of digital media to mobile devices

33. Momail: The time is now

Launched in Europ Q3 2007

• Scandinavia, UK, Germany and Poland now live

• Additional European and Asian countries to follow throughout 2008

Momail supports 80% of mobile handsets available in the global market

• Momail functions on over 1000 models, no other mobile email provider comes close

User statistics prove Momail meets an untapped consumer demand

• Overall registrations growing by 1500 / week

• Over 40% of registered users become active

• Average of over 90% data saved by Momail customers

34. Why Partner with Momail?

Current Market Conditions

• Mobile handset penetration greatly outstrips PC penetration in Asia

• Asia will account for 60% of new mobile subscriber growth in the next five years*

• Momail provides email capabilities to users who do not have PCs

Increasing data usage beginning to clog 3G networks

• Momails patent pending technology minimizes the data traffic by up to 99%, thus both reducing data load on operator networks and increasing speed

*Global Insight report, 19 April 2007

35. 36. SpinVox Voice to Screen 37. SpinVox does one thing -reallywell

Convertany voice message into meaningful text

Experience - reliable, fast, high quality

38. Vision & mission Mission Simple revolution:enableall existing messaging products with voice Make everyday communicationsimplerand more effective Leadthe 3rd most important form of communication Tomorrow Mass market range ofVoice-to-Screen Messagingfor web, Carrier, VoIP &cable channels Any Voice Any Message Anywhere Today Enable SpinVox Voicemailwithinglobal carriers Brandedstandard forVoicemail-to-Text service Vision Imaginea world where messaging is as simple, natural and intuitive as speaking your message or glancing at your phones screento read voice messages youve received 39. SpinVox Vital Statistics and History

2003 : Founders hit upon idea

• VMCS designed - patents filed - SpinVox incorporated

2005 : UK Nationwide Retail

• >100k subscribers, 80%+ retention, brand & marketing success

2006 : Carrier contract

• Investment in Carrier Grade Platform, Management Team and N.Am expansion

• Multi-lingual, multi-market

• Vendor partnerships

2007 : Land-grab strategy bites

• 12 Carrier contracts : 100m base : 200m contracted revenue : 100% market share

• 4 languages + 4 continents

• $100m (50m) funding

2008 : Scale

• 26 Carrier contracts

• 6 languages + 5 continents

• 3 new products, 5 new markets/channels

2010 : 100m users, 250m annual revenue

40. Worldwide footprint

2008 - 26 Deals

• • Tier 1

• • • LatAm, AsiaPac

• • Language

• • • New : Italian, Portuguese

• 3 new products

• • • Unified Communications

• • • Speak-a-Message

• • • Social Networks

2007 - 12 deals

• 10 Deployments

• En, Sp, Fr, Ge

• N.America, Europe, S.Africa, Australia

Spinvox Offices 41. THANKYOU [email_address]