Strictly confidential
THE FRENCH DIGITAL
REVOLUTION
Marie EKELAND
JULY 11th, 2011
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DIGITAL ECONOMY, N°1 FRENCH GROWTH SECTOR Highest growth contribution to GDP*
+25% between 2009 and 2010
3.7% contribution to GDP in 2010 (€72bn) ► 5.5% estimate in
2015
E-commerce driving consumption €28.8bn in 2010 (+28% from 2009)
27m online buyers (72% of internet users)
7 to 12% of total consumption depending on category (books vs
techno..)
n°1 French e-commerce website: 10m buyers H2 2010
*Sources: McKinsey(03/2011), ACSEL/PWC(05/2010)
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CONSUMERS CATCHING UP
Strong broadband penetration* 38.2m internet users (60% population)
89.1% broadband penetration rate (tiny cable presence)
Growing social networks with leader premium Facebook*: 22.7m members (36% population), n°8 country,
+35%/year
Twitter*: 2.4m members (4% population), n°17 country,
+110%/year
Smartphones driving internet mobile usage* 15.5m internet mobile users (25% population), +30%/year
59% visits from iPhone, 22% Android (highest growth), 14% iPad*Sources: ComScore (12/2010), SocialBakers (03/2011), Mediamétrie (03/2011)
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BUT ECONOMY STUCK ON OLD SCHEME
Only 3 big R&D companies created since 1980* (vs 82
in the US) No high tech champions
R&D spenders > 40 years old in average
Lack of R&D intensity* 2.0% of GDP spent on R&D
(2.3% for OECD, 2.8% for US)
Decrease since 1998
*Source: Nicolas Von Bulow (06/2011)
Companies with 2009 R&D above 100m€
By seniority (FR-ALL-US)*
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Lack of strategic M&A culture M&A usually to merge with competitor
Key strategic acquisitions performed abroad
Illiquid IPO Market Few tech values
Low risk culture: little appetite for equity investments
Listing of high growth companies on US markets:
CULTURAL LIMITS TO ECONOMIC DYNAMISM
Since 2010, some key accounts move forward
The start-up scene is alive! Entrepreneurs, entrepreneurs & entrepreneurs
Rise of an ecosystem
Funding available at all development stages6
STARTING TO MOVE
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ENTREPRENEURS WELCOME
Here comes the young generation!
Serial entrepreneurs show the way
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AN ACTIVE ECOSYSTEM
Incubators, accelerators, PE boutiques building
presence
Numerous tech events
Specialized medias & blogs
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THE FINANCING CHAIN
New super-angels & entrepreneurs funds, active in
seed funding
Shrinking of French based VCs, except for individual tax
funds
Greater presence of big European Funds
Favorable tax schemes & subsides for start-ups
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TECHNOLOGICAL TRENDS: IT’S THE DATA, STUPID!
Getting valuable data: A key challenge for audience
monetization
Generalist medias & social networks:
Vertical or personalized medias:
Web curation or live-, micro-, blogging platforms:
Mobile applications:
Social gaming:
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TECHNOLOGICAL TRENDS: IT’S THE DATA, STUPID!
Crunching & computing data: taking the best of users
data
Retargeting:
Signal identification:
Personalized recommendations:
Mobile & video ad-serving:
Sites analytics:
B2B data management:
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THE PERSONALIZED RETARGETING MODEL
EACH PERSONALIZED BANNER CREATED ON-THE-FLY TO
MAXIMIZE RELEVANCE
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AN AMAZING EFFECTIVENESS
Full campaign transparency
– True ROI with CPC, no « view
through » pricing
CPC can be automatically
optimized per product
category to meet conversion
and ROAS goals
CTR and conversion rates 6x
greater than RON or static
retargeting
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DRIVING AMAZING GROWTH
> 7 billions impressions per month
6x increase in CTR & conversion rates
300 employees
20 countries
> 1.000 clients in top retailers
Profitable since July 2009
70% of Top20 ComScore publishers inventory access
> 1 billion queries from Google RTB answered within 120ms per day
KEY MILESTONES
KEY NUMBERS
2005 Company founded by Jean-Baptiste Rudelle, serial entrepreneur
2006 Investment of based on a personalized recommandation
engine
2007 Focus on personalized retargeting for advertisers, fundraising with
leading European VC
2008 Commercial launch, first French customers
2009 French hyper-growth, European launch, JB Rudelle leaves for Palo-Alto
2010 International expansion, first US customers & investment of
2011 Worldwide leader, expansion to search
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VOICE BIOMETRICS
IDENTIFYING VOICES REAL-TIME
Cédric GIORGI – Seesmic
Samantha JERUSALMY – Elaia Partners
Hal LEVIN - TTI/Vanguard
Pamela POOLE – Blogger
Nicolas VON BULOW - Clipperton Finance
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SPECIAL THANKS TO
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APPENDIX
ELAIA PARTNERS IN A NUTSHELL
A committed & complementary team brought together by two
passions: Entrepreneurs & Digital Economy
A premier brand in venture capital, thanks to its
- Best of breed performance: Elaia Ventures, sole European VC
fund to figure in first quartile of the 2003 vintage (Preqin)
- Digital expertise, sought by best entrepreneurs,
- Strong involvement on value-adding actions,
- Investment strategy, based on optimized money deployment
& rigourous portfolio management,
- LPs trust, who committed more than €80m since 2002.
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Xavier LazarusPartner
Philippe GirePartner
Marie EkelandPartner
Engineer diploma
A career in consulting in Information Technology
PhD in Mathematics
An e-learning start-up, sold to a publisher
Master in Computer Science & Economics
An IT manager experience in Fixed Income Front Office systems
A joint VC experience since 2001
OPERATIONAL BACKGROUNDS WITH COMPLEMENTARY VISIONS