Investment Philosophy

The market for innovation in Europe is weak, under attack and declining:

 

  1. European Venture Capital as an asset class has performed badly.
  2. Leading entrepreneurs try to avoid funding in Europe or go to Silicon Valley to find financial     partners who will think as big as they do.
  3. The acquirers and stock exchanges are mostly in the US.
  4. GDP growth in Europe compared to the US is meagre.
  5. The US technology platform companies (Apple, Facebook, Amazon, Google, Uber, and AirBnB) are     entering every industry and disrupting them while taking them over.
  6. A model of success is not commonly understood so a general lack of belief that Europe can win is pervasive.

Almost everyone from European Corporate CEO’s to European venture capitalists believes that America always win, that the answer is in Palo Alto, and that Europe’s role is to be in service to the US, selling its best companies to them.

 Ariadne Capital is virtually alone in having a belief that Europe can win big, that there is a system-level design to the solution. The EU through funding programmes (Horizon 2020) to the European Investment Fund (who back first time funds in Europe) subsidises a market failure which further sinks Europe into a second class American citizen status.

What is needed is what Ariadne Capital has:

 

  • A decade-long investment and operational plan and intent to build ecosystems in Europe.
  • A solution to the problem of Creative Destruction which is not reliant on huge amounts of capital, bravado marketing and buying low and selling high.
  • A methodology that European enterprises can use to reinvent their industries.
  • A European model of success in the digital age which empowers individuals with a new asset class: their data, turning every EU citizen and resident into a data entrepreneur.

Ariadne Capital is building the conditions for Ecosystem Economics to become the dominant paradigm in Europe for successful innovation and growth by and for its established and emerging companies.

Ariadne Capital will focus on industries which are being transformed into ecosystems by virtue of the user-centric opportunities. For example, Property, Construction, Energy, Communications, Internet of Things (IOT) and DIY Retail are all in and of themselves industries. But by the emergence of smart phones and individuals’ desire and intent to have homes whereby they can live in new ways, these industries form a cross-industry ‘ecosystem’ – which is referred to here as the Smart Home. The following graphic shows the various ecosystems that Ariadne will help to build.

Ariadne Capital invests in ‘Digital Enablers’ (enabling technology high growth early stage firms in Europe) who intend to transform industries by their engagement with the existing incumbents who, in turn, require the ability and a mechanism to shift to becoming a platform with network effects and digital revenues in exponential growth mode.

 EntrepreneurCountry Global (EC Global) provides those traditional, non-technology incumbents (from various industries) with a ‘marketspace’ whereby they can figuratively and operationally ‘go to the future’. EC Global enables ‘Goliaths’ to reinvent their industries, to test pilot both hypotheses about the future of their business and industry as well as to engage with applications and consumers in an iterative way. One could think of one part of the value proposition as a ‘Corporate Application Beta Platform.’

EntrepreneurCountry enables firms to become Ecosystem Economics™ companies that is to adopt the design of how to win in the digital age. This process is accomplished through a programme of advisory services today, and will be done in a digital platform in 2016.