New Year greeting 2015
This greeting looks briefly at what we've achieved in 2014 and at the outlook for 2015
Lately, many leading international VCs have enjoyed uptakes in valuations and strong exits. At 1CT, our outlook is also strong. With that, it seems appropriate to “pause and ponder” for a few seconds.
Our story started in 2008, as we added an investment capability to our business development company, thanks to a group of private investors. In September, later that year, Lehman Brothers’ crashed on Wall Street, triggering the toughest crisis in modern times.
Since then, sceptics often reminded us, that investing privately in early stage companies in Denmark was “mission impossible”. Our response was to create an early-stage environment for intense cooperation “under one roof”. Now 7 years and 7 investments later - and crisis still looming, the scores are: one successful exit, two divestments and significant progress in all four remaining companies.
> Menucard.dk (2012)
Leading restaurant-program for corporate companies: New strategy focusing upon the business segment, strong customer in-take, new funding, new management and strengthening of board.
> a2i systems.com (2012)
AI based pricing software for the fuel-industry: Strategic customer break-through, listing as semi-public company and significant new funding (oversubscribed).
> Realfiction.com (2008)
3D display and content platform:
Partnership with global manufacturer, announcement of content store, tripling of sales volume (units sold) in Q4 and significant new funding under way.
> Mindstorm.com (2009)
Social multi-player games for pubs and bars:
Due to reestablish as Cocofish in the early part of 2015 and accelerate based upon a software centric strategy, commitments from strong industry people, investors and customers.
In conclusion: HentTilbud was exited successfully (2012). Menucard, a2i systems and Realfiction are early market leaders and Cocofish is looking good. All funding raised in 2014 was closed exclusively through external investors at 2x or more over previous rounds.
In addition to our intensive work with portfolio companies, 1CT continues to serve a number of external clients with business development and transaction related services. Since 2008, we have performed 10 successful transactions, i.e. exits and acquisitions for external clients, including one in 2014 with more underway. This remains an important source of market intelligence, agility and cash-flow – and underlines our DNA as transaction driven, international business developers.
Now, at the brink of 2015, it is time to look ahead.
It is time to set goals and direction for the coming years. The themes are: endure (still), adapt and turn the page.
Endurance is about finishing what one has started. In cooperation with our investors, we will continue to work with our 4 companies. The goal within reach is to create strong exits in 4-5 of our 7 investments in the coming years, leading to a money multiple of 2-5x or more on funds invested.
Adaption is making sure that the resources and structures provided match the needs of the companies at hand. We think of the companies a bit like teen-agers that are getting ready to establish themselves maturely in their markets and in general. This translates to next level guidance. Internally through further strengthening of organizations, boards and externally through strategic partnerships, supporting other big wins – and exits.
Turning the page is next. Do more, do better will be our approach. We are seeing a strong supply of “raw material”: a) exciting new ventures and customers,
b) increasing appetite from investors and c) strategic buyers that pay well, so chances are that 2015 and 2016 will be very exciting years. Also, we are facing a number of strategic opportunities and will select the next chapter in our life-book carefully. One way or the other, we will continue to unite the resources required to build great technology related companies, consistently.
We look forward to continued cooperation, more results to celebrate and new adventures in 2015.
Happy New Year from 1CT