saastock 2016 - european saas exit

M A R K M A C L E O D , @ S TA R T U P C F O

A C H I E V I N G M E A N I N G F U L E X I T S I N S A A S

Private & Confidential | 2

A g e n d a

Introduction

European SaaS Exit Trends

How to achieve your exit?

01

02

03


I n t r o d u c t i o n

M A R K M A C L E O D

F O U N D E R & P R E S I D E N T S U R E PAT H C A P I TA L PA R T N E R S

Mark has over 14 years experience as a CFO for leading companies such as FreshBooks, Shopify, Tungle and many others. He also spent 3 years as a General Partner at Real Ventures,

Canada’s largest and most active seed stage venture fund.

He raised hundreds of millions in capital from investors in Canada, the US and Asia. In addition, Mark has sold companies to Airbnb, Blackberry, Rackable Systems, Return Path and others.


S u r e P a t h : O u r P u r p o s eHelping you fund, grow and exit your startup

The process of raising growth capital is very different from raising early stage capital

It is cheaper than ever to start companies, but more expensive than ever to build market leaders. If that’s your aspiration, you need growth capital

We help startups prepare for growth stage and help them raise the capital needed to become market leaders

We have sat on both sides of the table. We have funded, grown and exited many companies

We offer up that experience through ongoing coaching and mentoring.

A low touch, high impact way to help you grow

There are few credible choices for advisors to facilitate sub $100M exits. We fill that gap

We work with you to facilitate the BD and Corp Dev intros that pave the way to an eventual exit

If you decide to exit, we manage the process for you from start to finish

SurePath maximizes your optionality: We make sure you know what it takes to build a market leader and capitalize you towards that goal.

We ensure you are always in the minds of strategic buyers so that if they decide to make a move in your space, you are in the conversation. You can then decide; Keep going or exit?

Growth Funding

Strategic Guidance

Exits


S u r e P a t h & S M B

• We have been part of some the most successful SMB SaaS companies • We have deep relationships with SMB investors and buyers • SurePath is committed to becoming the leading strategic financial advisor to the global

SMB software market

European SaaS Acquisition Activity


E x i t s b y T y p e

Source: pitchbook.com

19

3024 24

35

2228 27

1520

16

1

11 2

1

1

1

0

5

10

15

20

25

30

35

40

2014Q1 2014Q2 2014Q3 2014Q4 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3

NumberofDeals

European SaaS Exits by Type

Merger/Acquisition IPO

Private & Confidential |

Priate 67%

Public 33%

Buyer by Type

8

B u y e r L o c a t i o n & T y p e


North America

41%

Asia & Others 7%

Europe52%

Buyer By Geography


B u y e r sWho’s buying European SaaS companies



E x i t s b y A g e

Note: Some companies does not have a disclosed age Source: pitchbook.com

35

104

44

43

27

0 20 40 60 80 100 120

0to5years

6to10years

11to15years

16to20years

>20years

Number ofCompanies

Exit By Age of Company


E x i t s b y S i z e


192

54

12 7 30

50

100

150

200

250

Not Disclosed $0m - $50 $50M - $100M $100M - $200M > $200M

Exit Values


F u n d i n g S t a t u s


7%

40%53%

Funding Status of Exited Companies

PE VC Non-funded

$39.0m

$13.3m

$18.7m

$0.0m

$5.0m

$10.0m

$15.0m

$20.0m

$25.0m

$30.0m

$35.0m

$40.0m

PE VC Non-funded

Median Valuation

4.7x

3.7x

2.0x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

PE VC Non-funded

Valuation /Rev Multiple

How to achieve your exit


Exit rule #1


Exit rule #2


Exit rule #3

Source: SaaStr


Exit rule #4


Buyer TypesFounder

✓ Product-driven

✓ Based on desire

✓ Top down

✓ No prior relationship needed

Manager

✓ Fact-driven

✓ Based on clear business case

✓ Pushed up to CEO

✓ Need evidence (joint customers)


Drivers of deal value

✓ Alternatives (runway, competition)

✓ Scarcity

✓ Mortal enemies

✓ Growth (fear)

✓ Market leadership (2 way)

✓ Does the buyer’s CEO Want this?

✓ On strategy

✓ Currency

✓ Time and timing (including markets)

Private & Confidential |

T h e r o l e o f A d v i s o r s

20

✓ Should you hire one? Yes

✓ What to look for: Relevant relationships, completed deals and expertise.

Senior people involved

✓ Role:

✓ Prepare you

✓ Quarterback

✓ Create / manage demand

✓ Good cop/ bad cop

✓ Objectivity

✓ Create urgency

Shubham Datta Associate

[email protected] 647.972.6834

Rena Wang Analyst


Mark MacLeod Founder & President


saastock 2016 - european saas exit

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