lvg presentazione dati 2019 v2 · income statement summary 2019 income statement (€k) 2018 2019...
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A SCALING TECH HUB
LVENTURE GROUP
May 2020
WHO WE ARE
HOW WE INVEST
WHY AND WHERE WE INVEST: ITALY
WHAT WE HAVE DONE
UP TO DATE SNAPSHOT
INVESTMENT OPPORTUNITY
AGENDA
WHO WE ARE
WHO WE ARELVenture Group accelerates and invests in digital startups, transforming them into scale-ups to create value
MISSIONWe transform talents in successful entrepreneurs
4
LVG BUSINESS MODEL
We select high growth startups1
We support their international growth through our Ecosystem (mentors, money, investors)
2
We get advantage from valuation arbitrage by bringing them into international markets
3
We exit with significant returns4
5
6
THE MAGIC HUB
Ecosystem
Startups
Events
Community
Space
LVG MANAGEMENT TEAM
HOW WE INVEST
REV
ENU
ES
Competitions Challenges Tech Hubs Incubators
GRANT
€160k
Family & Friends Accelerators
Business Angels
MICRO-SEED
~€0.5M
Business Angels Seed Funds
SEED
~€1.5M
Early Stage Funds
POST SEED
>€3M
Growth Funds
SERIES A
SERIES B SERIES C SERIES D
…
Valley of death 6 months
12 months
Break even
TIME
Internal estimates on italian VC market data
LVG POSITIONING
LVG VENTURE CAPITAL J-CURVE
10
ROUND
VALUATION
Acceleration LVG
Seed LVG/CO-INVESTORS
Post Seed LVG/CO-INVESTORS Series A+
€160k
<€1M
~€500k
€1.5-2M
~€1.5M
€2-6M
>€3M
>€6M
✗STRATEGIALVG Investment up to €400k
€160k €50-150k €50-150k
LVG INVESTMENT MODEL
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ITALYW H E R E A N D W H Y W E I N V E S T
2019: €11.1B 2018: €7.5BG R E AT B R I T A I N
2019: €4.8B 2018: €3.4BF R A N C E
2019: €5.8B 2018: €4.7BG E R M A N Y
2019: €3.3B 2018: €1.1BS W E D E N
2019: €1.3B 2018: € 1.3BS P A I N
2019: €0.5B 2018: € 0.4BI T A L Y
Source: Atomico
EUROPEAN VENTURE CAPITAL INVESTMENTS BOOST IN VC INVESTMENT IN 2019
13
INTERNATIONALIZATION ITALIAN MARKET ADVANTAGE
20192018
11.1
7.5
5.7
4.7 4.8
3.4
1.3 1.30.5 0.4
Increase in Venture Capital Investments across all European countries
€1.5M
€5M
€10M
€6M
€10M
€15M €15M
€30M
€40M
@ Seed @ Series A @ Series B+
Why invest in Italian startups
Data in €B
A
30% TAX BENEFIT
FOR INVESTORS (UP
TO 50% FOR
INVESTMENTS <=100K)
B
UP TO 10% OF
PENSION FUND AUM
INVESTMENTS
ELIGIBLE FOR TAX
BENEFITS
C
NEW “FONDO
NAZIONALE PER
L’INNOVAZIONE”
€1B
D
3.5% OF PIR FUNDS
TO BE INVESTED ON
SMALL CAPS AND VC
E
NO TAX ON CAPITAL
GAINS FOR
INDIVIDUALS
INVESTING IN ELTIF
FUNDS
WHY ITALY VC MARKET READY TO TAKE OFF
F
POST COVID-19
“DECRETO RILANCIO”
€500M FOR STARTUPS
(UP TO 50% FOR
INVESTMENTS <=100K)
NEW
15
16
ITALIAN VENTURE CAPITAL FUNDS
€100M
SERIES A+POST SEEDSEED
LVG PARALLEL FUND POSITIONING
€200M
€50M
€300M+
WHAT WE HAVE DONE
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SUMMARY
Revenues € 4.2M (+22% vs 2018) Investments € 3.2M (+16% vs 2018)
Net result € 0.5M (+26% vs 2018) Portfolio value € 21.3M (+30% vs 2018)
-€0.9MEBITDA
€4.2MREVENUES +22% vs 2018
€0.1MNET FINANCIAL POSITION -€0.8M as of 31.12.2018
€3.2MINVESTMENTS
KEY FINANCIALS HIGHLIGHTS FOR 2019
19
€0.5MNET INCOME +26% VS 2018
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KEY FINANCIALS INCOME STATEMENT SUMMARY 2019
INCOME STATEMENT (€K) 2018 2019DELTA 2019 VS
2018
Revenues 3.440 4.206 766Costs -4.219 -5.091 -872EBITDA -779 -885 -106
D&A -247 -307 -60Capital gain / losses on holdings -651 -209 442Revaluation / writedowns 2.210 2.220 10EBIT 533 819 286
Financial proceeds and charges -89 -79 10Other proceeds and charges -16 -115 -99NET RESULT BEFORE TAXES 428 624 196
Taxes -27 -119 -92NET RESULT 401 505 104
+22%
+26%
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KEY FINANCIALS REVENUES DETAILS
REVENUES 2019 AT € 4.206K, +22 VS 2018
- Acceleration Program at € 900k, +29% vs 2018
- Open Innovation at 872k, +24% vs 2018
- Business Partners (mainly sponsors) at € 1.062k, +75% vs 2018
- Coworking at € 731, aligned vs 2018
- Events, LV8 and other revenues aligned with 2018
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KEY FINANCIALS INVESTMENT DETAILS
INVESTMENTS 2019 AT € 3.267K, +30 VS 2018 AND +8% VS BDG
- Acceleration Program at € 1.945K
- Follow-on at € 1.222k
- External Seed at € 100k
LVG portfolio growth (€M)
€3.2M Invested in 2019
€22.1M Net Assets 2019 (€15.5M at 31.12.2018)
~€34M Cumulative value of startups revenues
KEY FINANCIAL HIGHLIGHTS 2019
2018 2019
246
535
2.220
1.5593.267
2.825
16.50812.658
Portfolio IFRSInvestmentsNet revaluationsExit
16.508
21.749
+32%
23
CONSTANT INCREASE IN PORTFOLIO VALUE
2015 2016 2017 2018 2019
IFRSInvestmentsNet revaluationsExit
SIGNIFICANT REVALUATIONS EXPECTED IN THE NEXT MONTHS
EXIT NEGOTIATIONS PIPELINE
LVG Portfolio Value €million
CAGR 34%
6.6
9.5
12.6
21.7
3.6
16.5
2.3
0.8
6.6
2.3
0.5
9.5
2.6
0.6
12.6
2.8
1.6
16.5
3.2-0.5
2.2-0.2
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Highlights Expected value
- “Stars” >5x (23%): perform extremely wel l , with high i n te r e s t f r o m i nve s to r s / partners
- “High Potential” 2-5x (15%): improving performance, high i n te r e s t f r o m i nve s to r s / partners
- “Investment Recovery” 1-2x (27%): limited performance i n s u r e d b y l i q u i d a t i o n preference clauses
- “Poor Performers” (35%): underperformed
POOR PERFORMERS
INVESTMENT RECOVERY
1-2X
HIGH POTENTIAL
2-5X
STARS >5X
35%
27%
15%
23%
*62 startups out of 71 active - data as of December 2019
PORTFOLIO BREAKDOWN 38% of startups are performing with outstanding results
38%
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Highlights Expected value
LVG identifies the best startups* in i t s p o r t f o l i o a n d f o c u s e s investments on them: - 39% of total investments have
been made on “Stars” >5x - 17% of total investments have
been made on “High Potential” 2-5x
- 24% of total investments have been made on “Investment Recovery” 1-2x
- 21% of total investments have been made on “Poor Performers” POOR PERFORMERS
INVESTMENT RECOVERY
1-2X
HIGH POTENTIAL
2-5X
STARS >5X
21%
24%
17%
39%
PORTFOLIO BREAKDOWN 56% of investments have been made on high level startups
56%
*62 startups out of 71 active - data as of December 2019
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AGGREGATE PORTFOLIO REVENUES
Revenue 2014
Revenue 2015
Revenue 2016
Revenue 2017
Revenue 2018
Revenue 2019
OtherDeadPoor PerformersInvestment RecoveryHigh PotentialStars
CAGR ~76%
€34M
€26M
€19M
€13M
€8M
€2M
ANNUAL GROWTH RATE: 76%
CAGR: Compound Annual Growth Rate
LVG EXIT STRATEGY
BASE RUN
STARTUP CATEGORY Poor performers, Investment recovery
EXIT MULTIPLE 0-2x
HOME RUN
STARTUP CATEGORY High potential, Stars
EXIT MULTIPLE 2-5x, >5x
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LVG EXITS TIMELINE
2016
Investment: € 49k Cash-in: € 126k Multiple: 2,6x
2018
Investment: € 130k Cash-in: € 130k
Multiple: 1x
Investment: € 225k Cash-in: € 271k Multiple: 1,2x
2019
Investment: € 264k Cash-in: € 160k + 1,16% Ufirst
Multiple: 1,8x
Investment: € 80k Cash-in: € 80k
Multiple: 1x
2020
Investment: € 230k Cash-in: € 977k Multiple: 4,2x
Investment: € 25k Cash-in: € 6k
Investment: € 80k Cash-in: € 50k
UP TO DATE SNAPSHOT
€82M INVESTED IN STARTUPS
€17M INVESTED
by LVenture Group
€65M INVESTED
by co-investors
70+ STARTUPS in portfolio
28 WRITE-OFFS
8 EXITS
OUR RESULTS TO DATE
+
32
COVID CRISIS Action taken
After covid pandemic crisis outbreak at the end of February, LVG has:
- taken all the actions related to health authorities instructions and activated smart working for all employees from 11 march;
- created a cash flow committee, held the management committee, with all the divisions managers, to monitor the ongoing performances of the business lines and identify measures to sustain LVG activities;
- cancelled all the events, required employees to use holidays and activated layoffs in derogation.
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COVID CRISIS Outlook 2020
Scenario - Change in people habits and negative impact on consumptions - Economic digital transformation - Decrease of VC activity during lockdown and recovery post crisis
LVG economic outlook - Advisory revenues decrease H1 - Costs decrease thanks to action taken on corporate structure and fixed costs - Strong interest from corporates for services and M&A H2 - Confirm portfolio valuation thanks to government measures and deployment of already approved
measures (es. CDP Fondo Nazionale Innovazione, Decreto Rilancio)
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INDUSTRIAL PLAN - OUTLOOK Growth expectation confirmed for the next years
INCOME STATEMENT (data in €k) 2020 2021 2022
Revenues 5.703 6.249 6.980
Costs -6.262 -6.577 -6.939
EBITDA -559 -328 41
D&A -325 -284 -173
Portfolio results 2.656 4.122 5.999
Other net charges -73 -58 -44
NET INCOME 1.699 3.452 5.823
WHY INVEST IN LVG
2019
ACTIVE PORTFOLIO WITH MANY DIFFERENT ROUNDS ALREADY CLOSED
2020
FUNDING PIPELINE 2019-2020
DONE ONGOING 36
LVG €1M €7M€6M
3rd Investors + =LVG €3M €24M€21M
3rd Investors + =
37
CAPITAL INFLOW FOR ITALIAN VENTURE CAPITAL
PARALLEL FUND
INCREASE IN % OF SUCCESS RATE OF STARS / HIGH POTENTIAL STARTUPS
INCREASE IN EXIT MULTIPLES EXPECTED FOR LVG PORTFOLIO
38
WHAT DOES IT MEAN? BIG EXIT!
REMEMBER: INVESTING IN EARLY STAGE PAYS THE HIGHEST REWARD
39
2015 2016 2017 2018 2019 2020 2021 2022
12.641
7.171
4.255
1.353
1.107
250125
34.15929.851
25.07521.530
16.50712.658
9.4696.645
IFRSCumulative Exit
46,953
PORTFOLIO PROJECTIONS
Data in €k
9,594
12,908
17,614
22,883
29,330
37,022
46,800
6,645
MATURING PORTFOLIO OF SCALEUPS
STRONG MANAGEMENT TEAM
HIGH RETURN OPPORTUNITIES FROM EXITS
DIGITAL SECTOR MACRO TREND
INVESTMENT OPPORTUNITY
VALUATION ARBITRAGE BETWEEN ITALIAN STARTUPS AND REST OF EUROPE
40
INCREASE FLOW OF CAPITAL IN THE MARKET
LV.EN. Holding 32.56%
Luiss 7.14%
Futura Invest 5.79% (Fondazione Cariplo)Inarcassa 3.94%
Free Float 45.47%Market Cap ~€28 million*
*46.021.491 shares
LVG ON THE STOCK EXCHANGE VERY SOLID OWNERSHIP WITH SEVERAL STRATEGIC INVESTORS
41
Kairos 2.97% Sara 2.13%
Safe harbor statementThis document may contain forward-looking statements, which reflect current views of the management of LVenture Group, (the “Group” or “LVG”) with respect to future events and financial and operational performance of the Company and its subsidiaries (the “Group”).
These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance, rather, they are based on the Group’s current expectations and projections about future events and, by their nature, are subject to inherent risks and uncertainties.
Any reference to past performance or trends or activities of the Group shall not be taken as a representation or indicate performance, trends or activities will continue in the future. Actual results may differ materially from those expressed in or implied by such statements as a result of a variety of factors, including: the Group’s ability to preserve and enhance the value of its startups; changes in the general economic environment; the Group’s ability to successfully carry out its growth strategy; potential conflicts of interest due to director and officer overlaps with the Group’s largest shareholders and other factors discussed elsewhere in this document.
Any forward-looking statements contained in this document speak only as of the date of this document and LVG does not undertake any obligation to update or revise publicly forward-looking statements to reflect events or circumstances occurring after the date hereof. Further information concerning the Group and its businesses, including factors that could materially affect the Company’s financial results, is included in the reports and filings with Borsa Italiana and CONSOB.
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CONTACT USTELEFONO
+39 06 4547 3124EMAIL
www.lventuregroup.com