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ADDED VALUE FOR PORTFOLIO COMPANIES
We achieved an outstanding track record which has created significant value for our investors and the founders of our companies. We create value by understanding our target investment sectors well and working closely with each management team. At Earlybird, we build value by emphasizing a focus on the fundamentals that build great companies - comprehensive market research and analysis, innovative technology and products, financial prudence and responsibility as well as outstanding management teams.
Every member of the Earlybird team is committed to helping our portfolio companies succeed and we bolster that commitment with our four pillars of excellence:
PARTNERSHIP
OPERATING EXPERIENCE
CAPITAL MARKET EXPERTISE
INTERNATIONAL ACTIVITY AND NETWORK
PARTNERSHIP
Our investment in a company is a special relationship to us; each portfolio company not only has access to its Earlybird Partner, but also to our resources and the team as a whole.
This open-partnership principle means all of our highly experienced, seasoned team members are working for you and, most importantly, are available to you.
OPERATING EXPERIENCE
At Earlybird, all of our Founding Partners are experienced entrepreneurs with a wealth of day-to-day corporate management expertise, in addition to their substantial investment knowledge. The Partners have gained their relevant operating experience from managing companies similar to our own portfolio companies - from start-up through to other stages of corporate growth. This means that the Earlybird Partners can provide realistic assistance in the development of business strategy, recruitment of critical hires and operational tactics.
CAPITAL MARKET EXPERTISE
In addition to providing entrepreneurs with capital in the early stages of their company's development, Earlybird also works alongside CEOs and founders to identify the best sources of later stage capital and provides support in the general fundraising process by attracting the best and most value-added partners.
INTERNATIONAL ACTIVITY AND NETWORK
Earlybird's more mature portfolio companies have developed international operations in the US, Europe and Asia; and in some cases relocated to the US in order to take advantage of the market locale, entrepreneurial leadership, expansion and exit opportunities.
In today's competitive business environment, it is no longer enough to just focus on local markets. We help our portfolio companies not only with sourcing international finance but also providing introductions to key business partners and potential customers; thus providing local support on an international basis. Our international contact network of industry analysts and experts translates into a significant asset for our portfolio companies.
We create value by understanding our target investment sectors well and by combining this with extensive finance and start-up operational experience with long-term venture capital and private equity experience.
A number of Earlybird's technology portfolio companies have floated on various European stock exchanges:
- Interhyp, Tipp24 and Wilex (Prime Standard, Frankfurt)
- Esmertec (Swiss Exchange, Zurich)
- Entelos (London Stock Exchange)
- NoemaLife (Borsa Italiana, Milan)
Interhyp returned more than 50x the original Earlybird investment and was the most successful new issue in 2005 out of 22 IPOs in Germany according to Deutsche Börse and Ernst & Young. In 2006, Earlybird won the Deutsche Unquote Private Equity Awards category "Venture Capital Exit of the Year" - this award recognises venture capital firms that completed with clear leadership in this particular segment of the market.
Tipp24 was also recognized by Silicon Valley based Red Herring magazine as one of the top 10 worldwide venture-backed tech IPOs in 2005.
A number of Earlybird's portfolio companies have achieved successful trade sales. Earlybird actively supported:
- element5 in its acquisition by Digital River
- Identify in its acquisition by BMC Software for $150m
- Alantos in its sale to Amgen for $300m
- AbaXX in its sale to Cordys
Earlybird's investment philosophy is straight forward. We want to invest in companies led by outstanding people who are creating technology for major new markets. Most of our investments are made at the early stage or during a phase of expansion when the company is privately held.
Given our strong focus on creating a secure and solid foundation from which our investments can expand, we make the biggest impact during the following periods of growth:
- The availability of our highly experienced Partners means we can have a strong impact in the early stages of a company's life cycle, when new markets are being created.
- Our international investment network means we can support a company when it is expanding from a domestic to an international presence during its later-stage growth period.
Our initial investments typically range from € 1 - € 5 million and we invest in subsequent rounds up to a total investment of € 10 - €15 million. Earlybird frequently is the lead investor and often joins the boards of directors of portfolio companies.
Currently, we manage three funds totalling approximately € 370 million.
We invest in people: people who possess the vision to identify large, unmet market opportunities; who believe that technology-based products can capture these market opportunities and who have the creativity and perseverance to build a great and successful company.
OUTSTANDING MANAGEMENT TEAMS
A high-calibre management team is the cornerstone of every successful company. We look for teams with an entrepreneurial vision and the relevant skills set combined with a highly personal commitment to the success of the company. We know teams are not built overnight so we work closely with the management team to recruit the right individuals needed for every stage of a company's development.
FOCUS ON FUNDAMENTALS
Earlybird invests in companies that demonstrate vision and creativity with large, untapped market opportunities.
We seek entrepreneurs with a passion for their ideas and determination combined with the commitment and skills needed to transform their vision into a successful business.
REVENUE POTENTIAL
The target sectors must have capacity to expand to enable significant annual sales. Once through the development stage, we expect the company's products and services to maintain that growth and to generate a high level of profitability.
COMPETITIVE ADVANTAGES
The products or services should have a clear and sustainable competitive advantage based on product features, protected by strong intellectual property and other barriers to entry while posing a moderate technology risk.
We invest primarily in early stage technology enabled scalable companies with a large business perspective sourced from German speaking countries as well as the Nordics, France, Benelux and selectively the UK.
Our investment focus is continuously evolving. The markets in which we invest change rapidly as new technologies emerge and as applications for existing technologies enable new sectors to develop. We understand that in five years time, the company may discover opportunities unknown when we initially made the investment so we always practice flexibility in our investment opportunities. Our current focus includes:
SOFTWARE
SEMICONDUCTOR
COMMUNICATION
INTERNET SERVICES
CLEANTECH
MEDTECH