Professional Documents
Culture Documents
www.antfactory.com
29 February 2012
Contents
Strategy and Resources Corporate Partnerships Portfolio and Investment Strategy Financials, Comparables and Valuation Management Team and Investment Record antfactory in the Press
2 9 15 21 31 41
Strategy
By partnering with corporate incumbents to leverage their assets - rather than building from scratch
Resources
Offices throughout the Region Deliver Knowledge, Network and Deal Flow
Sao Paolo Mexico Buenos Aires Miami Venture capital/private equity Technology Operational management Corporate finance/M&A Strategy consulting Recruiting Legal, accounting, tax Marketing/PR 17 today 45 by 1Q01
antfactory has made 21 investments worldwide (including its first in Latin America) and exited from two Citicorp Venture Capital has invested $360mm in 22 transactions in eight countries in the region since 1991 including $103mm in 11 transactions in new economy companies. Portfolio focus is telecoms, broadband, internet and packaging Founders have made nearly 100 early stage technology and e-commerce investments since March 1994 and evaluated hundreds of others. This is a source of ideas, connections and experience in evaluating opportunities
antfactory Latin America is seamlessly integrated into antfactory Holdings 200 professional global network
London Prospect House 80-110 New Oxford Street London WC1A 1HB Tel: +44 20 7947 5000 Mexico City Boulevard Avila Camacho 36 Floor 10 Lomas de Chapultepec CP 11000 Tel: +1 525 284 2292 Sao Paulo Edificio Antonio Alves Ferreira Guedes Av Brigadeiro Faria Lima 3729 5 andar CEP 04539-905 Sao Paulo-SP Tel: +55 11 304 883 02 Buenos Aires Laminar, Ing. Butty 240 4 Piso (CP 1300) Buenos Aires Tel: +54 11 4590 2313 Amsterdam Herengracht 138 1015BW Amsterdam Tel: +31 -206270001 Stockholm Frosundaviks Alle 15 4th Floor 16970, Solna Tel: +46 8 655 2646 Munich Leopoldstrasse 236 80807 Munich Tel: +49 89 35874 - 378
Paris 66 avenue des Champs Elysees Immeuble A 75008 Paris Tel: +33 1 5856 4600
Tokyo 15 Hibiya Dai Building Uchisaiwai-cho 1-2-2 chiyoda-kur, Tokyo 100-0011 Tel: +813 3500 0102
Tel Aviv Harel House 3 Abba Hillel Silver Street Ramat Gan 52522 Tel: +972 3 754 1158
Jersey PO Box 860 11 Bath Street, St Helier Jersey JE4 0YZ Tel: +44 1534 280842
Mumbai 908 Raheja Centre Nariman Point Bombay 400021 Tel: +91 22 281 0180
Strategic Shareholders leverage antfactory Holdings Knowledge, network and deal flow
Founded in 1946, worlds oldest venture capital firm with over $5bn under management and 130 professionals in 7 offices in North America, Europe and Asia focussed on communications, financial services, healthcare, information technology and transforming industries Citicorp Venture Capital Private equity arm of Citigroup, the world's largest financial services company Europes largest buyout firm with 45 investment professionals in ten European countries and a portfolio of 79 investments in Europe
Private equity vehicle of Europes largest insurance company. Allianz operates in over 100 countries and manages over $600bn of assets including over $50bn of significant equity stakes in European corporates Partnership between eleven companies in the Wallenberg sphere (ABB, AstraZeneca, AtlasCopco, Electrolux, Investor, SAAB, Sandvik, SEBanken, SKF, StoraEnso and WM-data) to invest 1bn in new economy projects that are strategic to the group Private money management firm with over $9bn assets under management and 250 professionals in New York, London and Tokyo Holding company for Telecom Italia that has many industrial and new economy holdings Spains leading independent investment banking boutique Approximately 50 individuals who act as extensions of antfactory in providing knowledge, network and ideas
b-business partners
Moore Capital
HOPA
GBS
Champions/ Network Investors
Citigroups resources across the region (and globally) are committed to building antfactory Latin Americas business
Latin America Consumer Business: 8.8mm retail customers with 13.5bn of deposits and $201mm of net income (1999) Latin America Corporate Business: Over 4,700 wholesale & SME customers (1999) Citigroup has committed and incentivised its country managers in Sao Paolo, Mexico City, Buenos Aires and Miami for maximum leverage of existing corporate relationships Salomon Smith Barney has over 150 professionals dedicated to the region Over $1bn of capital committed to the region 11 professionals covering eight countries based out of New York and Santiago The worlds largest financial services company by market cap $259bn of market capitalisation (1 Sep 2000) $667bn of assets (Dec 1999) $13.2bn of annualised 1H00 core income Over $10bn of asses invested in private equity worldwide
Global partnership with Andersen Consulting to source attractive investments and build businesses
The alliance is up and running Collaboration agreement signed 6 June external announcement 17 July Over 50 meetings across sectors and geographies to date to ingrain the relationship Over 40 deals being jointly reviewed Full time staff to manage the alliance Steve Harris at antfactory and Steve Harpin at AC High level sponsorship Harpal Randhawa/Rob Bier (antfactory) and James Andersen/James Hall (AC) Outstanding synergies exist
antfactory The Catalyst to make it happen Strategic investment core skill Transforms projects into businesses Entrepreneurs in residence Europes leading strategic investor Actively managed global network Smart money Andersen Consulting Depth of skills to make it happen Deep industry knowledge Deep functional knowledge 65,000 people to scale major businesses Worlds largest channel to corporates
Scandinavia UK Germany Netherlands France Spain Italy Middle East* India South America
*Under discussion
Transactions are managed jointly Mutual referral of deals AC has two investment alternatives To take options in antfactory and the investee business Or.to coinvest on the same terms as antfactory antfactory to procure consulting and systems integrations work for AC
Skills
Network
Credibility
No 1 in eCommerce
Partnership with Global Bridge in San Francisco to migrate successful US business models
Global Bridge
Silicon Valley/San Francisco based firm focussed on global migration of successful new economy businesses founded by Peter Kellner and Bill McGlashan Chooses investments for: Proven success of business model in local market Unique or proprietary technology Significant resources invested to develop asset Asset can be carved out and contributed to Newco Asset is applicable and localisable to other markets Backed with $65mm Whitney & Co, Banco Santander and Pioneer Internet Fund Experienced senior management with deep relationships in Silicon Valley
Strategy
Shareholders Capabilities
Powerful partnerships in key markets (Latin America, Europe, Asia) Growing migration portfolio of businesses with global potential
antfactory Partnership
antfactory partnering with Global Bridge in investing in and implementing geographic rollouts of selected businesses in partnership with incumbent corporates Global Bridge to leverage roll-out capabilities of antfactory local offices
Building new economy businesses by leveraging assets of corporate incumbents, rather than attempting to recreate them
Corporate Assets
Customers relationships, cross-selling opportunities Infrastructure supply chains, logistics, fulfilment Industry Expertise Financial and Human Resources Regulatory Umbrella Brands trusted, recognised, sticky Aggregate demand for products/services Resell on a wholesale/white label/ASP basis Commercialise technologies Migrate products or services Develop ideas/projects into businesses Create value from unutilised/under-utilised assets Re-leverage assets built in the core business Exploit time sensitive ideas/wasting assets Extend assets outside core industries/geographies Retain/motivate key employees Business may be attractive to offer to core customers Create potential for attractive financial returns
Can be Leveraged
Current Portfolio
Partnership with leading Lloyds TSB
Pipeline Projects
Global retail banking platform JV with leading banking software provider JV with leading global investment bank incubator Partnerships with global insurance company to develop on-line initiatives
Healthcare
Physicians-oriented B2B portals providing content, services and connectivity in Europe, Latin, the US & India
European hospital procurement platform Web-based supply chain management software Export of established US physicians portal Partnership with leading mobile and fixed line operator to incubate wireless applications Wireless media information service Wireless data distributor, access aggregator, m-commerce facilitator
Wireless
Education
Online content for children, parents and teachers at primary school level Mobile contact management & synchronisation software Online lifestyle publishing company; leading technology online music synthesiser; professional and consumer photographic portal; portal centred on IT publishing
Anglo/Indian contract production of distance learning content Leading UK educational ISP English-speaking educational portal aimed at secondary school level Platform developer for medical B2B exchanges Intelligent resume screening ASP Online technology-oriented content and commerce portal for IT professionals in partnership with leading global publishing house Partnership with major US online games developer for expansion into European markets Broadband technology enabler for content enhancement from Indian back-office Remote energy metering Unified bill payment portal B2B transportation market place Aftermarket parts B2B Database & configuration engine enabling online car sales
Utilities Automotive
10
antfactory Latin America analysed over 160 business plans since July
Refused Financial Services B2B Marketplaces Media, Entertainment & Publishing Healthcare Enabling Technologies Government Energy Real Estate Others Total TOTAL 7 24 17 2 15 0 1 1 34 101 Under Consideration 3 15 5 10 14 0 0 1 15 63 Done 0 0 0 1 0 0 0 0 0 1
11
Network investors and champions c.100 business plans received unsolicited per month several hundred reviewed over the last few months
12
Unique Ideas/ Opportunities Entrepreneurial Culture Attractiveness to Management and Strategic Partners
Neutrality
13
antfactory brings
antfactory has made 21 investments and two exits so far Founders have made nearly 100 early stage technology and e-commerce investments since March 1994 and looked at hundreds of others Team brings industry expertise, insight and experience Insight and access from calling on Europes leading corporates In touch with latest business models and most innovative entrepreneurs Draws on global team for ideas, insight and execution Entrepreneurial energy/sense of urgency New economy culture Speed of decision making and execution Highly experienced operational team which takes hands-on responsibility for building business
Investment Judgement
Entrepreneurial Culture
Human Capital
Financial Capital
14
Investment Strategy
Articulated Investment Strategy
Be a value-added investor through provision of risk capital and utilisation of acceleration capabilities and network of corporate/shareholder as strategic partners Focus on opportunities within: Traditional industry companies with opportunities arising from the Internet Enabling technologies fundamental to building new economy businesses antfactory has specific interest and expertise in: Infrastructure (logistics, CRM, outsourcing, wireless, security) Vertical markets (education, financial services, healthcare, IT, media & entertainment, telecommunications) Horizontal markets (procurement, HR & recruitment, SMEs) Investment in traditional industry companies through: Corporate JV with establishment of NewCo and corporate(s) contributing assets to create sustainable business; investment size of $5-25m Direct investment in core/offline business; investment size of $5-50m Corporate LBOs with management and antfactory acquiring entire company; transactional value of $25-250m Investment in enabling technology companies, including B2B infrastructure and market places, at seed/early stage; initial investment of $2-10m for 30-40% stake Strategically important to senior management (including CEO) Contractual right to leverage relevant assets Contribution of required human resource Commitment of significant risk capital to seed/subsequent financing requirements Clearly defined exit criteria
15
Sector Experts of antfactory define a holistic investment strategy and seek corporate anchors as well as rolling up entrepreneur deals into a super business
enablement
Product Content
stickiness
enablement
Transaction platform
Trade functionality
enablement
Infrastructure
Connectivity
B2B
B2C
Horizontal aggregation
16
Companies
eHealth Latin America is a comprehensive portal and aggregator of healthcare Internet products and services. It is focussed on providing content for consumers and physicians and connectivity solutions for players in the Latin American e-Health market Caducee is a French language portal targeting healthcare professionals as users and Pharmaceutical companies as sponsors. The proposition incorporates a medical search engine, a discussion area, listings advertisements and live transmissions of medical conferences Indegene is an India-based company focused on integrating Medicine and Information Technology. The company provides high quality information and education programmes for Medical professionals through its website. The website will also serve as an efficient platform for interaction as well as transaction
Strategy
With investments so far in Europe, India, and Latin America, antfactory is sharing best practices and working on global corporate partnership deals
eServices
Rave Technologies is a provider of high quality, leading edge, and cross-border software development services headquartered in Mumbai with an office in London Barbarossa (code name) is a strategic sourcing, consolidated purchasing and e-procurement company that aims to reduce indirect costs initially for medium-sized European companies in a three stage process Intellirecords is a provider of digital dictation capture and transcription solutions designed to eliminate the inefficiencies that plague current record dictation and retrieval processes in both IPAs and Hospitals Medirecords
Through its global network, antfactory is able to help secure strategic alliances and leads on large contracts for e-services companies (for which it is generally rewarded with warrants) Using its understanding of and networks in India, antfactory is building a number of businesses that leverage the countrys English speaking, technically trained and low cost workforce to build software services and content production businesses Working with offline publishers and portals who are seeking to build an integrated online solution for consumers and advertisers, antfactory is pursuing partnerships/mergers for its existing portfolio companies as well as helping incumbents create and acquire vertical content
PeopleNews has built a white-label technology platform for publishing offline media in an online, personalised, interactive format, and as first business/proof of concept, developed an English language website (scheduled for hard launch in September) that offers celebrity news, party reviews, lifestyle tips, etc Photoshot has set out to become the portal site for photography across Europe, offering content, e-commerce and digital image solutions Sseyo has developed a proprietary, next generation technology that delivers interactive audio solutions for the Internet, embedded digital devices & convergent technologies Inside IT is a web-publisher focused initially on the IT marketplace. The company also intends to move into the telecom market, wherein it intends to offer the same content-rich product enabling both resellers (VARs), SMEs and end users the ability to inform themselves about the newest products on the market
17
Companies
Spark Learning is an edu-tainment channel targeting classroom and home-based learning for 4-11 year old children in the UK Simpleworld is an integrated multi-channel retail concept selling children products and services to parents with children of the age of zero to six years
Strategy
The first two of a number of synergistic investments planned to build a pan-European education network integrating content, commerce, infrastructure, technology and software in four customer areas: Parents and Children (Simpleworld/WebBaby); Schools Education SparkLearning/Schoolsnet/Edex); Corporate Training (Arel/Vuepoint); and Content Production (Indian Shop). Will partner with offline providers, eg print media, online providers in more advanced geographies as well as multiple platforms antfactorys focus is on helping these companies create partnerships with industry players to create market liquidity and on mergers to increase critical mass
B2B Marketplaces
Shipdesk is an independent, neutral on-line chartering marketplace, providing total logistics support to Ship Charterers, Owners, Operators, Brokers and Agents Inmoclick operates a vertical portal in Spain specialising in the residential real estate market. The portal aims to be the first stopping point for anyone considering any aspect of residential real estate and services offered to both the B2B and B2C markets TradingProduce.com is a neutral B2B marketplace for the procurement of produce (fruit and vegetables, meat, and soon fish, flowers, etc) by growers, brokers, wholesalers and retailers Yoo Design is a B2B furniture and fixtures online procurement solution for design professionals and property developers. The business provides e-commerce capability to sell branded furniture and fittings, and provides project workflow tools, online design advice, and community-based content globally. Its first two signed contracts are with Yoo Limited (the furniture offering for new built flats, hotels and offices backed by Phillipe Starck and John Hitchcox) and Boris Lend Lease ace-quote is an independent, secure B2B buyer-centric business, focused on providing total procurement support for SME and corporate buyers and sellers of IT products, services and solutions
Quoted
Shore Capital is a London-based investment banking boutique focussed on small and mid-cap technology and advisory, market-making brokerage and principal investment flows in the UK and Israel Techubator - Internet and IT incubator listed on the Copenhagen Stock Exchange Whittard of Chelsea is a small cap specialist tea and coffee retailer with 110 shops in the UK and franchises in eight other countries in Europe, Asia, the Middle East and South Africa, and a modern logistics, fulfilment and pick, pack and shop operation. antfactory acquired shares and warrants in Whittards and is jointly building Best of British which has signed up 95 British luxury brands (who typically have no eCommerce capability) to outsource their internet and interactive TV sales and mail order businesses
18
No of Investments
13 3 1 1 1 1 1 21 5 1 3 1 3 2 4 2 21 4 1 4 2 7 9 20 1 21
Invested
24.7 3.4 6.0 1.5 0.9 1.2 0.4 38.0 5.7 2.7 7.9 3.0 8.0 4.4 5.7 0.7 38.0 6.4 0.2 6.9 1.6 8.7 21.6 36.6 1.4 38.0
Total
33.1 5.7 6.0 3.0 0.9 2.8 0.4 51.9 7.8 3.0 10.2 8.9 9.5 6.0 5.8 0.7 51.9 12.6 0.2 9.0 1.7 10.9 27.0 50.5 1.4 51.9
By Geography
By Sector
Healthcare Education Media, Entertainment, Publishing Other TOTAL Quoted Subsequent Financings Signed In Documentation
By Stage of Development
19
Deal Summary
Investment Thesis
Strong team with expertise in Latin America and US healthcare & internet business Board of prominent physicians and academics First mover advantage and momentum Strategic alliances with: American Association of Academia Med Cert John Hopkins University Medical Centre McKesson HBOC Screaming Media Superior and technologically advanced content platform Diversified revenue steam
Total Investment Date of Investment Pre-money Valuation Post-money Valuation Current AF Ownership No of board seats
$6.0mm 18 July 2000 $15.0mm $30.0mm 20% 2 out of 7 board seats to afLA
Business Description
BuenaSalud is the first Latin American business-to-business portal and aggregator of healthcare Internet products and services It provides content and connectivity solutions for consumers, physicians, and healthcare companies based on proven models of US healthcare websites, adapted to the unique needs of Latin American market BuenaSalud has agreements for content, services and distribution. These relationships will enable the Company to rapidly develop and distribute services, enhance the BuenaSalud brand, generate traffic and capitalize on additional distribution revenue opportunities
Business Description
Revenue Model
2001 Sale of advertising space Commission on e-commerce transactions Connectivity charges and subscriptions Subscriptions and sponsorships from physicians, payers and providers Income from clinical trials services 12% 2004 8%
32%
19%
23%
53%
29%
14%
4%
6%
20
Date of Launch
Capitalisation ($mm)
Staff
Investments LevelSeas.com, an ocean freight marketplace formed by BPAmoco, Cargill, Shell and Clarksons. eVolution invested $25mm at a $65mm pre (28%) GroceryWorks. $10mm investment in partnership with Safeway (a KKR portfolio company which contributed $30mm for 50%) to do last mile delivery
eVolution
www.evopartners.com
Mar 00
100
24
Accel/KKR
www.accek-KKr.com
Feb 00
eMac Digital food services marketplace in partnership with McDonalds Model N. $26mm investment in marketplace services provider
iFormation
www.iformationgroup.com
Jun 00
300
16
None so far
21
Terms of Financing Round Amount Invested ($mm) Seed Round (Sep 00) antfactory CVC Total antfactory CVC First Round Investors 15 15 30 10 10 50 70 Second Round (3Q 01) 4.33 130 46.2 200 100 1.00 30.0 30 Price Per Share ($) Pre-Money Valuation ($mm)
NAV2
Ownership
antfactory CVC na na antfactory CVC First Round Investors 100 2.0 antfactory CVC First Round Investors
50.0% 50.0% 12.0 37.5% 37.5% 25.0% 75 75 50 52.0 28.1% 28.1% 18.8% 25.0% 113 113 75 100 78 66.0 88 88 25 4.5 4.5 1.5 40.0 50 50 3.0 3.0
IPO/Exchange Offer (2Q 02) antfactory CVC First Round Investors Second Round Investors Inst/Ret Investors
1 2
130 130 53 38
Inst/Ret Investors
107.3
95.3
Assumes 12mm shares purchased at $1, funded by non-recourse loans from afLA, subject to 42 months vesting At mid year (2001 and 2002 average of year end NAVs) based on projections 22
antfactory and CVC commit to lead the first round financing at 1.8 to 2.3 times invested and investable cash (multiple reduces as more capital is raised)
Valuation as a Multiple of Cash Raised Pre First Round Primary1 Fully Diluted2 $70 Fully Diluted Assuming First Round Raises: $85 $100
3.00 3.33 3.67 4.00 4.33 4.67 5.00 5.33 5.67 6.00
138 154 169 185 200 215 231 246 262 277
174 194 213 233 252 271 291 310 330 349
3.0 3.3 3.7 4.0 4.3 4.7 5.0 5.3 5.7 6.0
3.8 4.3 4.7 5.2 5.7 6.1 6.6 7.1 7.5 8.0
1.8 2.0 2.1 2.3 2.4 2.5 2.7 2.8 3.0 3.1
1.7 1.9 2.0 2.1 2.2 2.3 2.5 2.6 2.7 2.8
1.6 1.8 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.6
1 2
30mm shares sold for $1 in seed round; $70mm raised at $4.33 (16.17mm shares) in the first round Includes 12,000,000 management restricted shares purchased at $1 per share
23
Investing in the first round financing by antfactory Latin America is premised on antfactory Latin America achieving an IRR on its investments only marginally higher than its cost of capital. For instance, a corporate strategic investor with a 20 percent hurdle rate would need to see approximately a 30 percent IRR on afLAs underlying investments
Post First Round Market Cap ($mm) Implied Internal Rate of Return (%) 2000-2010 horizon1 2000-2005 horizon1
Primary3
3.00 3.33 3.67 4.00 4.33 4.67 5.00 5.33 5.67 6.00
138 154 169 185 200 215 231 246 262 277
174 194 213 233 252 271 291 310 330 349
28 29 31 32 33 35 36 37 38 40
26 27 28 29 31 32 33 34 35 36
25 26 27 28 29 30 31 32 33 33
30 32 34 36 37 39 41 42 44 45
28 30 31 33 34 35 37 38 39 40
27 28 30 31 32 33 35 36 37 38
Investors seeking a 20 percent return require a IRR of around 30 percent for investments made in years 2000 to 2010
1
This rises to only marginally for a shorter time horizon assuming no value created in excess of cost of capital for investments made after year 2005
2 3
No allowance for any economic value added past the end of the investment horizon (ie the IRR does not exceed the cost of capital). Additional funding is assumed to be NPV-neutral, ie obtained at the same valuation as in the first round brought forward using a 20 percent discount rate 46,154,000 primary shares outstanding post first round of financing Includes 12,000,000 management restricted shares purchased at $1 per share
24
Valuation Model Suggests a Net Present Value above $11 per Share assuming $100mm of annual investment
Inputs
Internal rate of return on investment Annual IRR fade rate Costs net of recharges 2000 Costs net of recharges 2001 Growth of Expenses 2002-2005 Growth of Expenses 2005-2010 Holding period Discount rate Tax rate 75% 5% $2.5 $5.0 20% 10% 3 year 20% nil
Value
Total net present value of investment return af Seed Investment CVC Seed Investment First Round Investors (af, CVC, 3rd parties) Value of capital raised Total equity value Value per share (Primary) 30 Nov 2000 Value per share (Fully Diluted) 30 Nov 200 $585 $15 $15 $70 $100 $685 $14.8 $12.0
2000
Year 0 40 75% 214 124 (40) (3) 110
2001
Year 1 100 70% 491 237 (83) (4) 275
2002
Year 2 100 65% 449 181 (69) (4) 609
2003
Year 3 100 60% 410 137 (58) (4) 919
2004
Year 4 100 55% 372 104 (48) (4) 1,263
2005
Year 5 100 50% 338 78 (40) (4) 1,564
2006
Year 6 100 45% 305 59 (33) (4) 1,827
2007
Year 7 100 40% 274 44 (28) (4) 2,052
2008
Year 8 100 35% 246 33 (23) (3) 2,242
2009
Year 9 100 30% 220 25 (19) (3) 2,399
2010
Year 10 100 25% 195 18 (16) (3) 2,526
Note: 9,278,000 Primary Shares Outstanding; Fully Diluted assumes 2,200,000 Management Plan Shares purchased at an average of $42.50 and subject to 42 month vesting; additional funding assumed to be NPV-neutral 25
Value is most sensitive to i) the annual amount of investments and ii) the spread between the IRR on investments and the discount rate. If the business model and network produce $200mm of annual investments, value rises by around 50% from the base case assumptions of $100mm of annual investments
End 2001 Share Price ($) @ 75% IRR
Discount Rate 15% 20% 25% 30% Capital Invested per Annum ($mm) 50 11 9 8 6 75 15 12 10 8 100 18 15 12 10 125 21 17 13 11 150 24 18 15 12 175 27 20 16 13 200 29 22 17 14
Note: Analysis performed on a fully diluted basis including 46,154,000 primary shares outstanding and 15,000,000 management plan shares purchased at $1 per share; additional funding assumed to be NPV-neutral
26
2. Carried Interest Implied in Second Round Financing Priced at $4.33 approximately 45%
Cash Raised in Second Round $70 Fully-Diluted Post Money Value2 $252 Fully Diluted Ownership of Investors in 2nd Round 27.8% Ownership of Previous Investors and Management Option Holders Adjusted to Assume Investment at $4.33 per share3 16.7% $10 $20 $30 $40 50 Implied Carry 55.5% 51.6% 47.6% 43.6% 39.6% 35.7%
Implied Carry Assuming afLAs portfolio at the time of closing of the first round of financing is valued at an uplift of:4
3. Carried Interest Implied in Second Round Financing Priced at $6.50 approximately 35-40%
Cash Raised in Second Round $100 Fully-Diluted Post Money Value5 $478 Fully Diluted Ownership of Investors in 2nd Round 20.9% Ownership of Previous Investors and Management Option Holders Adjusted to Assume Investment at $6.50 per share6 23.4% Implied Carry 55.6%
Implied Carry Assuming afLAs portfolio at the time of closing of the second round of financing is valued at an uplift of: $50 $75 $100 $125 150 45.2% 40.0% 34.7% 29.5% 24.3%
1 2 3 4 5 6
Gross annual operating expenses currently projected to be approximately $6.0mm; monthly fees charged to portfolio companies and fees from Service Businesses targeted to get the net number at or below $5.0mm as the gross expenses increases At $4.33 per share and based on 46,153,846 primary shares outstanding plus 12,000,000 management restricted shares subject to 48 months vesting $30mm cash and $12mm of exercise proceeds of management options assumed to buy 9.70mm shares, i.e. 42.0 / 4.33 For example, for an uplift of $30mm, the ownership of previous investors is $42 + $30mm = $72 / $252 = 29%, which when added to the 28% bought by second round investors leaves an implied carry of 44% Assumes 15.4mm new shares issued in second round $42 + $70 / $478
27
Listed Strategic Investment Companies are trading at 1.6 to 2.5 times cash and cash invested and 3.0 to 9.5 times cash invested. Investors in antfactory will need to be comfortable with antfactorys ability to profitably invest its cash
ICG1 At Market Share Price Shares Outstanding Market Cap (Local Currency) Market Capitalisation ($) Less: Public Holdings Plus: Debt Adjusted Enterprises Value Cash Available for Investments Investments at Cost in Private Companies Investments at Cost Plus Cash Enterprise Value Less Public Holdings as a Multiple of Investments at Cost Plus Cash Adjusted Enterprise Value less Cash Available for Investments Enterprise Value Less Public Holdings and Cash as a Multiple of Investments at Cost 31 265 8,137 8,137 2,973 566 5,730 1,000 1,268 2,268 2.5 CMGI2 At Market 35 295 10,186 10,186 5,547 682 5,321 2,100 NA 2,100 NA Divine Interventures3 At IPO 9.0 136 1,226 1,226 0 39 1,264 543 226 769 1.6 At Market 9 136 1,192 1,192 0 39 1,230 543 226 769 1.6 Ledstiernan4 At IPO 35 109 3,815 424 6 0 424 89 30 119 3.6 At Market 31 109 3,379 375 6 0 375 89 30 119 3.2 antfactory capital raising of5 $100mm 75 11.6 867 867 18 0 849 260 37 297 2.9 $200mm 75 12.9 967 967 18 0 949 360 37 397 2.4 $300mm 75 14.2 1,067 1,067 18 0 1,049 460 37 497 2.1
4,730
3,221
721
687
335
287
589
589
589
3.7
NA
3.2
3.0
11.1
9.5
15.9
15.9
15.9
Note: Share prices as of 1 August 2000; SEK/USD exchange rate of 9.0 assumed for Ledstiernan offering 1 Investments at cost from Stax consulting report of 22 March 2000; debt, cash on balance sheet and public holdings from CSFB report of 1 August 2000 2 Information from Merrill Lynch report of 14 June 2000 3 All information from Divine Interventures prospectus; 114,159,000 ordinary shares outstanding adjusted to include convertible preferred stock; pre-IPO excludes the proceeds from the private placement 4 Information from Ledstiernan preliminary prospectus of 7 June 2000 up-dated by Ledstiernan; shares outstanding from Lehman 5 antfactory at $75 next funding price; 9,278,000 primary shares outstanding; fully diluted assumes 2,200,000 management plan shares purchased at average of $42.5
28
antfactory Holdings has Over $600m of capital to invest with plans to raise further funds during the next twelve months
antfactory Holdings
50% 50%
Fund
antfactory Japan2
Total
Cash Capitalisation (Total) From Outside Investors Invested/committed Cash Available to Invest
$50mm 25 6 44
$70mm 35 0 70
1 2
50% owned by Citicorp Venture Capital Latin America 50% owned by two Japanese institutions (to be disclosed in September). antfactory has committed $15mm of cash and $20mm worth of shares at the value achieved in afHs next financing round
29
Terms of Financing Round Amount Invested ($mm) Seed Round (Sep 00) Founders Total Founders/ Manager Whitney TPG Partners Other Strategic Shareholders 3.1 3.1 6 20 10 6 42 13.33 42 6.3 84 39 45 1.00 3.1 3.1 0 na Price Per Share ($) PreMoney Valuatio n ($mm)
NAV2
Ownership
Founders na Founders/ Manager CVC TPG Partners Other Strategic Shareholders 1.9
100.0%
First Round (Price October, Closed 24 December 99) 57.0% 23.9% 11.9% 7.2% 100.0% 48 20 10 6 39 3.0 3.0
Second Round (Priced 28 March, Closed May 99) Founders/Management Whitney CVC Allianz Other First Round Investors Strategic Shareholders Network Investors/Others Third Round (Autumn 00) Founders/Management Whitney First Round Investors excl. Whitney First Round Investors excl. Whitney Third Round Investors tbd tbd tbd tbd 200 200 75.00 556 12.6 756 361 300 1.9 Founders/Management Whitney First Round Investors excl. Whitney Second Round Investors excl. Whitney Third Round Investors 28.8% 17.9% 9.5% 17.4% 26.4% 100.0% 218 136 72 131 200 206 78 56 22 18.7 2.3 4.5 1.2 2.5 38 30 30 0 33 16.5 150 50.00 314 9.3 464 269 195 2.4 Founders/Management Whitney CVC Allianz Other First Round Investors Strategic Shareholders Network Investors/Others 39.1% 24.4% 6.5% 6.5% 12.9% 7.1% 3.6% 100.0% 18 113 30 30 60 33 17 44 3.8 170 55 15.6 1.9
Note: Fully diluted numbers of shares includes 2,200,000 Management Plan Share purchased at an average of $42.50 and subject to 42 months vesting. NAV estimate at third round based no cash and investments at cost or value benchmarked by third party lead investors in subsequent financings or liquidity events by portfolio companies 30
Company Pegaso Digitel Captulo Avantel Digicel Telecom Total Cablems Teledigital Intercable Broadband Total CAME Phoenix Capital
Industry Wireless Telecom Wireless Telecom CLEC Wireless Telecom Wireless Telecom
Description Third national entrant in Mexican wireless telecom market Third entrant in Venezuelan wireless telecom market providing cellular and wireless local loop services Leading CLEC serving corporate clients in Santiago Leading next generation wireless telecom service provider Wireless telecom services
25.0 64.0
Packaging
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Company Devoto Proyeccion Dual GEMet NetLink Other Total antfactory Latin America deRemate.com InternetGratis.com Decidir.com Netenvios.com Travelya.com I2 Networks Punto.com Internet Total Cablems Pending Total Grand Total
Description Leading supermarket chain in Uruguay Central American outdoor advertising platform Leading homebuilder in Mexico City Electronic payroll processor in Mexico
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Description
Web Marketing Ltd US Digital River, Inc BigNetwork.com Bigstar.com BuyIt.com, Inc iParty Corporation MonsterDaata.Com MBT International, Inc CallNOW.com Predict It Adventure Racing, Inc Animal Fair Athlete.com Chrome Data Corp FreeLotto.com
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Ficha tcnica
Dados la antfactory na America Latina S=los: antfactory a Citigroup Inve=timentoe: US$ 100 mihes Primelro p=oto: portal do sade (US$ 6 milhes) Antfactory: aluaco == Europa (Londres, Munique, Paris, Milano, Madri, Amsterd a Esto=oima, India, EUA (Sao Francisco) e Israel Escritrios: San Paulo, Gi=== do Mxico e Buenos Aires F==clonarios: 140 pessors Citigroup: US$ 10 bil=== em participaes societrias
antfactory Holdings Ltd, grupo investidor europeu dedicado a novos projetos para a internet, acaba de chegar ao Pais. Foi anunciada, ontem, sua parceria com o CVC, canal de investimentos latinoamericanos do Citigroup, para o lanamento da antfactory America Latina. A companhia nasce com um plano de US$ 100 milhes, a serem aplicados na regi o nos prximos 18 meses. A idia participar de empresas com marcas conhecidas na economia convencional e capacit-las para atuar em negcios online, especialmente no Brasil, revelou Harpal Randhawa, presidente e CEO da antfactory. Os dois scios da antfactory America Latina realizaram primeiro aporte de US$ 50 milhes, em iguais partes, e investiro o restante ao longo do periodo. Foram abertos escritrios em Buenos Aires, So Paulo e Cidade do Mxico. Alm do investimento previsto, a companhia pretende levantar capital extra atravs de outros parceiros. Tivemos bons resultados com ativos empresariais na Europa e Asia, que criam novos canais de distribuio nos moldes da norte-americana Amazon.com, comenta Randhawa. Segundo ele, a antfactory Amrica Latina vai apoiar a montagem de
negcios, atuando como investidor ou scio operacional. O primeiro empreendimento da antfactory na Amrica Latina ser um portal business-tobusiness (B2B) dedicado ao mercad de sade nos pases da regio. Com sede na Argentina, o portal foi ao ar nos Estados Unidos e vai absorver US$ 6 milhes da antfactory. A empresa comercializa produtos e servios, servindo de elo entre pacientes, mdicos, seguradoras e fornecedores. Para liderar a diviso latino-americana da antfactory Holdings foi nomedado o executivo Geoff Crossley, ex scio da consultora McKinsey. Outros profissionais esto sendo agregados a nova equipe, tendo como quesitos experincia nas reas de investimentos, tecnologia, finanas, consultoria, entre outras. Fundada por um grupo
de investidores e empresrios da web em outubro de 1999, a antfactory identifica e desenvolve oportunidades via parcerias com empresas estabelecidas. Sua equipe busca recursos para marca, relacionamento com o cliente, infra-estrutura e anlise de negcios, Na Europa, a empresa possui operaes em sete capitais. Em Mumbai, India, busca oportunidades na rea tecnolgica. Para acompanhar idias, possui unidades em So Francisco, Estados Unidos, e Tel Aviv, Israel. Ao todo, emprega mais de 140 pessoas. A antfactory completou a segunda rodada de financiamentos em junho, levantando US$ 150 milhes. Ao todo, so US$ 500 milhes disponveis para investir. O Citigroup investiu US$ 350 milhes na regio desde 1997.
A sociedade de investimento estratgico europia antfactory e a CVC Latin Anmerica, filial latino-americana do fundo de capital de risco do Citigroup, anunciaram ontem o lanamento da antfactory Latin America, que investir mais de US$ 100 milhes na regiao. Os dois scios dedicaram US$50 milhes para o lanamento da sociedade e concluiram acordos para investir conjntamente US$ 50 milhes extras no desenvolvimento do comrcio pela Internet na Amenca Latina, assinalaram ern urn comunicado.
antfactory Latin America facilitar a criao de empresas no setor na nova economia, tanto na qualidade de investidor, como de scio operacional. A nova sociedade ter como misso principal ajudar as empresas tradicionais a valorizar seus ativos na nova economia, e a aproveitar tecnologias e novos modelos de negociao, acrescenta o comunicado. An antfactory foi criada em 1999 por um grupo de empresrios e investidores da Internet europeus e emprega mais de 140 pessoas especializadas em todas as atividades vinculadas ao desenvolvimento empresarial.
Para impulsar las ideas de emprendedores latinos que quieran ingresar a la Web, la compaia britnica de inversiones antfactory pondr 100 millones de dlares, en sociedad con el banco estadounidense Citigroup, a disposicin de los proyectos que consideren convenientes. Ah est la oportunidad, jvenes. Como que va en serio.
La compaa britnica de inversiones en Internet, antfactory, invertir 100 millones de dlares en firmas latinoamericanas orientadas a la Web, en sociedad con el banco estadounidense Citigroup. El banco y antfactory se han comprometido a aportar 50 millones de dlares para lanzar la compaa, con un acuerdo para invertir la misma suma nuevamente en el futuro cercano.
A rede virtual e plataforma B2B para o setor de sade eHealth Latin America anunciou hoje que recebeu um inevstimenta de US$ 12 milhes de empresas como a antfactory Latin America, Bank of America Securities e Baccini Playfair. O portal vai utilizar o capital para ampliar os recursos para o desenvolvimento de solues tecnolgicas e administrativas no setor de sade. O encerramento da rodada de investimentos, programada para dentro de duas semanas, deve incluir investidores estratgicos tanto nos Estados Unidos quanto na Amrica Latina.
Citicorp Venture Capital (CVC) y la firma inglesa antfactory han firmado un acuerdo para establecer una incubadora de empresas de Internet que operar en la regin de Amrica Latina. Establecida en octubre de 1999. antfactory se define como una firma de inversin estrategica que alcanza los 350 millones de dlares. Con sede en Londres, antfactory tiene oficinas en otras ciudades de Europa, Israel, y
Estados Uidos. El pasado 29 de junio, la firma anunci el cierre de su segunda ronda de inversin, en la que recaud 150 milliones. CVC es accionista en antfactory. Por su parte, CVC ha promediado inversiones en Latinoamrica por 150 millones en los ltimos dos aos, 50 por ciento de las cuales se dirigen a empresas de Internet. Hasta el cierre de esta edicin, el monto de la inversin no haba sido dado a conocer.
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Daniela Braun Logo aps anunciar uma parceria para investir US$ 100 milhes em negcios relacionados internet, na Amrica Latina, no dia 10 de julho, as empressis Citigroup Venture Capital (CVC) Latin America e a inglesa antfactory Holdings abriram o primeiro escritrio da nova antfactory Latin America, ern So Paulo. Segundo Paulo Caldeira, urn dos diretores e scios do CVC Latin America, o mercado brasileiro demandar metade dos investimentos dedicados pela companhia para incubar operaes Web, ou seja, US$ 50 milhes, at o final do ano. As reas de concentrao dos investmentos so plataformas B2B e parcerias corporativas nas reas de saude, varejo, servios financeiros, aplicaes wireless, educao utilities, alem de infra-estrutura para servios de internet, detalha Caldeira. activos. El apalancamiento incluye activos como marcas, relaciones con los clientes, infraestructura y conocimientos especializados de la industria off line en cuestin. El mercado base de antfactory fue Europa, donde tiene operaciones en siete ciudades (Londres, Munich, Paris, Miln, Madrid, Amsterdam y Estocolmo). Tambin opera en Mumbai, San Francisco y Tel Aviv. Segundo ele, a antfactory latin america funcionar como uma incubadora ern parceria direta com as corporaes. Estamos caminhando para marketplaces promovendo uma incubao direta dentro das companhias, com servios e mo de obra especializada, afirma o executivo do CVC. O escritrio de So Paulo, aberto h trs semanas, conta com dez funcionrios e deve chegar a 50 at dezembro. Neste perodo, a antfactory latin america tambm abre operaes em Buenos Aires, na cidade do Mxico e urn escritrio satelite em Miami. Desde sua criao, ern 1997, o Citigroup Venture Capital Latin America investu cerca de US$ 4 milhes ern negocios relacionados internet, na regio.
LONDRES La compaa britnica de inversiones en Internet antfactory dijo el lunes que invertira unos cien millones de dlares en firmas latinoamericanas en sociedad con Citigroup. antfactory y CVC Latin America de Citigroup se han comprometido a aportar 50 millones de dlares para lanzar la empresa, con un acuerdo para invetir la misma suma nuevamente. Las compaas realizan su primera inversin de seis millones de dlares en un portal latinoamericano negocio a negocio (B2B) que incluye productos para la salud, indicaron, pero no mencionaron su nombre (Reuters)
A antfactory Holdings inversionista estratgico europeo que desarrolla negocios de la nueva economa en asociacin con empresas existentes, y CVC Latin America, unidad de Citigroup que se concentra en inversiones de capital privado y capital de riesgo en la regin, lanzaron antfactory Latin America, con una inversin proyectada de u$s100 millones. Los acionistas de antfactory Latin America comprometieron u$s50 millones para lanzar la compaa y otros u$s50 millones de inversin adicional. Adems, la empresa prev recaudar ms capital de otros socios estratgicos en la regin. La funcin de la firma ser desarrollar negocios exitosos de la nueva economia, como inversor y como so cio operativo. El equipo estar
integrado por profesionales de reas clave: capital de riesgo y capital privado, tecnologia, administracin operativa, finanzas, fusiones y adquisiciones, asesoramiento estratgico, reclutamiento, asuntos legales, contables y fiscales, comercializacin y relaciones pblicas. antfactory Latin America se concentrar en la integracin de activos de negocios existentes con modelos y tecnologas comerciales innovadoras, adoptadas de compas emergentes del sector de la nueva economa. Para concretar su plan de negocios, la compaa inaugur oficinas en
San Pablo, Ciudad de Mxico y Buenos Aires. Debut La primera inversin latinoamericana de antfactory fue de u$s6 millones en un portal regional BtoB agregador de productos y servicios de atencin de la salud. La compaa actuar de enlace para los pacientes, mdicos, aseguradoras y proveedores latinoamericanos. Fundada en octubre pasado, la estrategia de antfactory es identificar y desarrollar negocios de la nueva economam asocindose con empresas existentes para apalancar sus
A incubadora antfactory anunciou ontem uma parceria com a Adersen Consulting para investir no desenvolvimento de companhias de Internet. As empresas vo investir US$ 150 milhes na iniciativa, que fornecer capital, ferramentas e recursos diversos a negcios ponto-com em estgio inicial na Europa. Doze companhias devem estar
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Important Notice
This document (references to which and to any information contained herein shall be deemed to include any information, whether or not in writing, supplied in connection herewith or in connection with any further enquiries) is confidential. Upon request, the recipient will promptly return this document. This document does not constitute an offer or invitation for the sale or purchase of securities or of any of the assets, business or undertaking described herein and shall not form the basis of any contract. The information in this document, which does not purport to be comprehensive, has been provided by antfactory and has not been independently verified. No representation or warranty, express or implied, is or will be given by antfactory or its respective directors, partners, employees or advisers or any other person as to the accuracy or completeness of this document and, so far as permitted by law and except in the case of fraud by the party concerned, no responsibility or liability is accepted for the accuracy or sufficiency thereof, or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. In particular, but without limitation, (subject as aforesaid) no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, targets, estimates or forecasts and nothing in this document is or should be relied on as a promise or representation as to the future. Accordingly, (subject as aforesaid) none of antfactory, nor any of its respective directors, partners, employees or advisers, nor any other person, shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any statement in or omission from this document and any such liability is expressly disclaimed. Any recipient will, so far as permitted by law and except in the case of fraud by the party concerned, be required to acknowledge, that it has not relied upon or been induced to enter into any contract or to make any offer by any representation or statement contained herein. In all cases, interested parties should conduct their own investigation and analysis of antfactory and data contained in this document and should consult with appropriate professional advisers. In furnishing this document, antfactory, so far as permitted by law and except in the case of fraud by the party concerned, undertakes no obligation to provide any additional information or to update this document or to correct any inaccuracies which may become apparent. This document is being distributed to recipients only on the basis that each recipient to whom this document is issued is (i) a shareholder in antfactory (ii) in the case of a person in the United Kingdom a person falling within Article 11 of the Financial Services Act 1986 (Investment Advertisements)(Exemptions) Order 1996 (persons sufficiently expert to understand the risks involved) as amended, and (iii) a person whose ordinary activities involve that person in acquiring, holding, managing or disposing of investments (as principal or agent) for the purposes of their business or otherwise in circumstances such that the distribution does not and will not constitute an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities Regulations 1995.
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