We invest in, develop and sell technology companies

Menucard receives millions and attracts new Managing Director
Menucard receives millions and attracts new Managing Director

Investment

We engage in irresistible companies

Technology in its own right is not interesting. Technologies, business-models and products that have potential to change their industry - or the world for that matter - are irresistible.

Whether early stage with a huge promise or more mature and poised to dominate, we engage if we see opportunity to develop the company and reach an attractive exit within 2-3 years. We already have the experts at hand and you must be open to embrace them.

We engage in a close partnership with you

We invest from a few million Danish kroner and upwards. We invest gradually and receive shares in exchange for the added value that we provide. Founders must maintain a big enough share of their company that they keep their “my company mindset” At the same time, our Founders understand that we are in a close partnership.

 

 

Criteria

We invest in great people – and their technologies.

Making sure we can work together in a close partnership is an absolute requirement, as we work very closely with our entrepreneurs. We look for high moral standards and a match in basic values and ethical standards.

In addition, when evaluating the company we consider the following:

 

Young Star

Internationalization

Last mile until exit

Industry

We focus on companies that create radical changes. New technologies, or new business models, that transform the way we buy and sell goods and services in a particular market. It’s all about going digital.

ICT (Information and Communication Technology), defined in today's context is our focus:

  • Those that use Information technology to promote and sell products. For example, companies that develop technologies for the gaming and media industries.
  • Those that use Communication related technology to help customers transact, that is to find and buy new products and experiences. For example, companies that develop mobile apps and new digital platforms.
  • Those that produce Technology that allows us to optimize and work smarter. This may include companies that develop improved workflows and business processes in the cloud, new payment methods, artificial intelligence, etc.

Product

At least finished and running in pilot in at least two places. "Block-buster potential". Proven and scalable with several profitable reference customers in focus segment. Proven with many reference customers or very strong IP in M&A active market

Revenue

Few paying customers At least 2 mill DKK
or strong IP
At least 10 mill DKK
or strong IP

Scalability

Products, services and/or business model must be designed to scale. Must be proven.

Profit

Not required Within reach Above industry average or strong IP

Employees

+5 +10 +20

Market opportunity

Market opening fast At least well established in DK niche industry Established technology- and/or market leader.

Exit-potential

20x investment
within 3-5 years

10x investment
within 2-3 years

Min. 3x investment
within 1 year.

How we work

We work together before we invest

Our method is based upon the fact that only if we are a good match is the relationship likely to be a success. We therefore use the logic of the three classic phases in human interaction, in order to arrive at a healthy investment decision:

> Dating – alignment of expectations

In this phase – that takes about 1 month – we align our expectations and we test if the business holds a promise big enough that the expectations can realistically be met. This phase is concluded with a letter of intent.

> Engagement - sharpening the strategy

During the following 1-2 months we work with you under exclusivity to refine the operational business plan, including a longer term exit–strategy and a shorter term go-to-market strategy. This phase is concluded with a detailed term sheet which is binding upon both parties, subject to due diligence.

> Marriage – doing the deal

We then complete our check lists, (contracts, numbers, technology, clients, people) and get the paperwork out of the way before we make the investment. Alternatively, we wish you good luck with no strings attached.

Healthy business = healthy investment

We focus on commercial progress, winning strategic clients and building tangible assets. Sooner rather than later.We try to avoid classic VC' style deep dives, where companies receive large amounts of money in a pre-commercial phase with a risk of going through endless rounds of funding.

Know how + Know who ...

Beyond capital, we provide experience, tools/methods, experts. In fact, we have built a general framework with 60 building blocks. This framework is our guideline to the phases that companies must go through to arrive at the goal: the exit.

And, if needed, we may extend our engagement from 3 years to 5 years.

 

“If you are willing to learn and adapt, 1CT can be a great asset to any growth-stage company.”
Clas Dyrholm, Co-Founder and CEO of Realfiction ApS

Portfolio

Who is next ?

We are making 1-2 new investments each year. For more information, see "Investment".

Menucard

MenuCard is Denmark's leading "eat-out-with-a-discount-club" with more than 150.000 members and more than 20.000 Facebook friends.

A2i Systems

Pricing fuel at the pump for billions each year based upon ground-breaking artificial intelligence.

HentTilbud

More than 20.000 house-owners find qualified craftsmen each year with the market leading RFQ service offered by HentTilbud.

Caramba Imaging

Large scale publishers choose Caramba over Photoshop for automatic image enhancement of 10.000s of images each month.

Mindstorm

Amazing multitouch software for 100s of venues across the world, including fashionable bars, Casinos, Cruise ships, etc.

Realfiction

More than 1.000 holographic 3D displays promote many of the worlds’ largest brands.

“1CT formed the strategy and brought in the management team. As a result we sold HentTilbud to North Media after just 15 months.”
Michael Pedersen, Managing Director of HentTilbud

Latest transactions

2014

Tacticus (S) sold to EG. 1CT acted as exclusive advisor (buy side)

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2014

Sitexploration (SX) sold to Searcus, a leading provider of search consultancy.

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2013

Datapro (DK) sold to EG. 1CT acted as exclusive advisor (buy side)

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2013

Swedish Unitail AB was sold
to EG A/S. 1CT acted as exclusive transaction advisor (buy side).

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2012

1CT Equity II K/S
invested in Menucard, Denmarks leading "eat-out-with-a-discount-club"

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2012

1CT Equity II K/S
sold portfolio company
HentTilbud ApS
(vintage 2010 investment)
to the Danish Media Group,
North Media A/S

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2012

1CT Equity ll K/S
invested in a2i Systems ApS
a Danish software company, specialising in artificial intelligence solutions.

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2012

A Gain A/S, 
the Danish leader in software licensing and asset management was sold to Norwegian Inmeta Crayon AS.
1CT acted as exclusive transaction advisor (sell side).

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2011

1CT Equity II K/S invested in SiteXploration Aps, a Danish software company specialising in SEO back-link analysis.

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2011

Swedish Computer Services AB was sold to Danish EG A/S. 1CT acted as exclusive transaction advisor (buy side).

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2010

1CT Equity II K/S
invested in Hent Tilbud ApS, the Danish RFQ portal specialising in connecting houseowners with craftsmen.

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Corporate finance

Our clients choose us because we get the job done 

1CT Corporate Finance specialises in cross-border transactions within the ICT Sector. Between the partners we have done dozens of transactions in Northern Europe, US and Asia.

We pride ourselves with being “Bankers and more”. We know the IT industry and the key players from many years of interaction and couple this with senior executive support to our clients in their preparation for the best possible strategic sale – or acquisition.

In other words our Corporate Finance related services span from strategic advisory services prior to the transaction process through assistance in creating the best possible presentation of our client towards the target group, and, continues all the way to management and execution of the transaction process itself.

More often than not we run closed auctions, with a handful of target acquirers or acquisitions. We have acted as advisors in successful transactions ranging from 5 to 100mUSD in transaction value.

 

 

 

 

 

 

Buy side

Our speciality is strategic acquisitions

We do transactions as well as or better than any other serious advisor. More importantly however, we deliver a combination of industry people who knows their industry and bankers who knows the art of getting a good transaction. 

Our clients are portfolio companies that need to carry out acquisitions as part of their international expansion as well as external clients for whom we can add significant value.

We make sure we fully understand the strategic objective of our client and bring new ideas to the table that may go beyond the client’s initial thinking.  With an insider’s view of target sectors and geographies we scan the market and deliver qualified options. We deliver qualified and verified candidates with recommendations as we understand the people factor. 

We engage with ownership and negotiate with a view to securing real, strategic value. And yes, we also take pride in advising our clients against transactions if we do not feel that the match is not quite right.

  “1CTs creativity and dedication made the deal happen”

— Leif Vestergaard, CEO of EG

Sell side

We know that selling your company is a matter of ultimate importance

Our M&A team is dedicated to selling technology companies, based upon their strategic value, to the best possible buyer when the time is right. We take full responsibility for the process, and, if required, we involve and compensate external experts to increase the chance of success and reduce the anticipated time to completion.

In our experience, most mandates are best executed by adding Exit Consulting Services, such as initial mapping of options, establishment of a realistic time-frame and valuation as well as identification of important strategic or operational actions that may improve the value, timing or chance of success.

Even with clients, whose company is immediately sellable we offer to go beyond “classic” Corporate Finance. We understand, create, present and negotiate the strategic value to chosen strategic buyers in relevant sectors.

In any transaction, performance multiples play an important role in defining the realistic price-range. However, more often than not, we have experienced that the value to the right buyer is also driven by the revenue or cost saving potential - of the technology/business in question as well as the sheer potential related to key people already involved in the company for sale.

“1CT was competent and efficient right from the initial research phase through to the conduction of due diligence and final negotiations. Together, we developed a strategy and followed it all the way to the successful sale of our company”.

— Frank Mortensen, CEO and owner A Gain A/S

“1CT is unique in their approach.
They are entrepreneurs themselves
and involved on a daily basis
in each of the companies they invest in.
In my opinion, this is the key to their success”.
Jørgen Kragbøll, Founder of NetDesign and 1CT investor

About

Venture Capital, and more

Founded in 2004, 1CT provides capital as well as development and transaction services. We are international entrepreneurs and executives with a unique network and track record. We form strong partnerships with our entrepreneurs, based upon respect, team spirit, and a passion for winning.

Great people build great companies

At 1CT we aim to identify the winners of tomorrow, match them with what it takes to succeed (experience, direction, access to industry, etc.) and then we engage and contribute all the way to the completion of an exit.

Growth is the name of the game

We are proud about our portfolio companies and their results so far. Our team and portfolio is growing in size, value and numbers. And we are hungry for more.

Why 1CT

At 1CT, the portfolio companies
and corporate finance clients are our Customers

 

We have extensive experience in developing and selling international companies. 
Our Customers partner with us in doing just this.

We focus upon companies and technologies we understand.
Our Customers expect us to climb a steep learning curve in relation to their business.

We have a large network of experienced business professionals and experts.
Our Customers expert us to deliver industry experts and specialized advisors.

We have proven methodologies, based on real life experience.
Our Customers expect us to guide them through new territories.

We define the exit strategy with our clients before we start.
Our Customers expect us to assist them with strategic partnerships and transactions.

Summing it up: Our Customers expect us to make a difference.

People

The world of technology related companies is as dynamic as ever. This translates into a need for a flexible and agile organization with a constant ability to match companies with the right resources.

Our organization is a combination of a small team and a large foot-print. In other words: as a highly flexible, networked Partnership.

At our core we are 5 partners, with very different, yet all very relevant backgrounds. We have internal as well as external analyst capacity and other resources that work either as employees or as external partners and consultants. 

Søren Jonas Bruun, Managing partner
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Bruno Giversen, Partner
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Peter Max, Partner
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Jonas Pilgaard, Partner
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Morten Pedersen, Partner
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Jørgen Kragbøll, Limited Partner
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Project Partners

In addition we enjoy a close ongoing cooperation with many of our investors and we have built a network of Project Partners (more than 100). This is our primaty ressource pool - all executives or experts that we know well and who have worked in areas of importance to us.

1CT Partner Network

Last, but not least, we have our LinkedIn Partner Network of about 400 professionals, where we invite people we know or who have a declared interest in our space and business. Make sure you join today!

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Nordic Countries

1CT Management ApS
Øster Alle 42, 5th
2100 København Ø
Denmark
Main: +45 33 22 07 00 
Fax: +45 33 22 17 00

www.1ct.co

United Kingdom

London
1st Corporate Technologies Ltd
35 Catherine Place
London SW1E 6DY
UK
Main: +44 207 060 6849