A Guide to the Sixth Year Anniversary of Ariadne Capital

 

GO BIG OR GO HOME

A European Entrepreneur’s Manifesto:   

Changing the Rules of the Game

 

I.                   Our Speakers                                                    

II.                 Our Portfolio and Corporate Partners                           

III.              Our Investors            

IV.              Our Team                                                        

V.                 Our Business Model                                         

VI.              Who’s Here Tonight?             

VII.            Tribute

a.      Richard Duvall                                 

b.      Carter F Alexander

VIII.         A Short History of Ariadne Capital                   

IX.              Key Articles                                                     

a.      A European Entrepreneur’s Manifesto, Financial Times

b.      No one in the EU can keep books as badly as the EU, Sunday Telegraph 

X.                 News from the Portfolio

a.      SpinVox – Voice Enters the Blogosphere

b.      Monitise - Banks continue to join MONILINK network as the opportunity in mobile banking grows

c.      DebtResolve enters the UK  

d.     Cellectivity - 888.com Partners Up With Cellectivity To Develop Mobile Casino Platform

XI.              Investment and Partnership Opportunities at Ariadne Capital as of 26 February 2007

XII.            One of Ariadne’s Big Bets for 2007 – Gravity Zoo

XIII.         New Ariadne Services

a.      Ariadne Marketing Services Introduction 

b.      Ariadne Talent Service Introduction

XIV.         From the Founder – And Now We Are Six – with apologies to A. A. Milne    

 

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I.      Our Speakers

 

GO BIG OR GO HOME

A European Entrepreneur’s Manifesto:   

Changing the Rules of the Game

 

The Panellists for the Ariadne 6th Year Anniversary Event will share with you tonight how they have changed the rules of the game in their industries with their companies:

 

Changing the Rules of the Game in Financial Services:

o       Lars Christensen, Founder and CEO, SaxoBank

o       Alastair Lukies, Founder and CEO, Monitise

o       Christopher Samuelson, Founder, Mutual Trust

o       James Burchetta, Co-founder and CEO, Debt Resolve

 

Changing the Rules of the Game in Telecoms and New Media:

o       Christina Domecq, Founder and CEO, SpinVox

o       Kevin Meagher, Founder and CEO, Intamac

o       Martin Varsavsky, Founder, FON

o       Glenda Stone, Founder and CEO, Aurora (WhereToWork.com)

 

Read More about our Speakers on the next page


 

LARS SEIER CHRISTENSEN, CO-CEO, SAXO BANK 

Since 1987, Lars has been involved in derivative sales and trading. He began his career at the London-based futures broker, Petley & Co (now ECU Group), but was soon headhunted to join LIT Europe, the European arm of leading futures clearer LIT America, as a manager of the company's Scandinavian Desk. In 1990, he took over an identical position at American broker Gerald Metals, to assist the company in developing its newly started foreign exchange department, again with particular responsibility for Scandinavian financial institutions.

Lars was a founding shareholder of Midas (now Saxo Bank) in 1992, and eventually joined the company in early 1995 as a director, responsible for the company's trading operations. With considerable financial and business acumen, Lars has been jointly responsible with Kim Fournais for the formulation and implementation of the company's business strategies and new ventures ever since. In September 1999, following the establishment of CLMarkets.com, Lars assumed the post of Managing Director for Midas with additional responsibility for the overall management of the company. After Midas´ repurchase of Credit Lyonnais´ shareholding in CLMarkets.com in early 2001, Lars again shares the position of joint Chief Executive Officer with Kim Fournais.

Saxo Bank is a specialized Danish investment bank founded in 1992 and is headquartered in Copenhagen, Denmark. The bank was awarded full European bank status in 2001.

The Bank is privately held with its co-founders, Kim Fournais and Lars Seier Christensen, holding majority stakes. Private Equity firm General Atlantic bought a minority stake in June 2005 and invested USD127 Million. The bank expanded its physical presence overseas for the first time in 2006 with branches opening in London, UK and Singapore.

Saxo Bank facilitates global capital markets trading and investing through its online trading platform. It offers a broad suite of investment banking products including Forex, Stocks, CFDs, Futures, Funds and Bonds. Private Wealth Management services are also offered to high net worth individuals and families. Roughly two-thirds of the Bank's activities are derived from partnerships with licensed financial intermediaries including banks, brokerage firms, FCMs and institutional trading partners.

Saxo Bank is named after Saxo Grammaticus, a famous Danish warrior/theologian and alleged to be the first historian of the Danish people.

Saxo Bank's businesses can be broadly categorized into 3 areas: Private Clients, Institutional & White Label Partnership and Private Wealth Management.

Private Client services focus on enabling individuals to trade the different financial instruments online.

Institutional services include institutional trading services, introducing brokers and White Label Partnerships (WLP). The White Label Partnership business accounts for more than half of the bank's revenue providing an efficient, scalable re-distribution of the bank's core competencies to a broader public. The business reaches thousands of end-users through 80+ WLP relationships in 40+ countries.

In a White Label Relationship, the trading platform and back office risk management and client account management systems are branded in the identity of the partner. The partner must be a licensed financial institution able to hold client funds, and appropriately regulated for securities, currency and derivatives trading in its local jurisdiction. Saxo Bank provides the technology and a suite of value-added business development, planning and strategic services while the white label partner provides on-the-ground distribution, sales, marketing and client servicing.

Private Wealth Management is a relatively new growth segment for the bank.

 

ALASTAIR LUKIES – LEADING ENTREPRENEUR IN MOBILE BANKING SERVICES

- 33 years old - former professional rugby player turned three times serial entrepreneur
- Has created the world first cross network, cross bank mobile banking and payments infrastructure...first customers include all the UK's mobile networks, Royal Bank of Scotland, first direct and HSBC
- Winner of World Economic Forum - Technology Pioneer 2006 at 2006 Davos meeting
- Customers include all major UK mobile networks and the UK's high street banks
- Currently working with banks and governments worldwide to create an international mobile banking and payments network.

Alastair Lukies is a serial entrepreneur who successfully built and sold the well known Westminster lobbying portal epolitix.com and a corporate hospitality firm based in Malaysia/Singapore.   He was also the Marcus
Evans conferences youngest ever Managing Director, where he headed up the Asia Pacific region at the age of 25. 

This entrepreneurial spirit was kicked off when, at the age of 23 and a professional rugby player in Australia, Alastair found himself injured and unable to resume his playing career.  Armed with his small savings Alastair started the long trek homewards to the UK.  He found himself in Kuala Lumpur in 1996 and invested the money (including his homeward ticket) in his first venture, a corporate hospitality company targeted
at Asia Pac companies wanting to offer entertainment to clients during the following year's Commonwealth Games.  He sold this to Marcus Evans a year later and joined the firm heading up their Asia Pacific region.
This was soon followed in 1999 by the launch of ePolitix.com where Alastair helped improve the overall transparency of Westminster - taking the proportion of MPs online from less than 5% to over 95%.

Monitise, his current venture, is the fulfilment of his and Steven Atkinson's vision (the chief designer of Vodafone live!) of bringing revenue into the mobile environment, to allow consumers to control their finances from the handset and also allow the purchase of goods and services - such as topping up an Oyster card or pre-pay mobile phone, paying the congestion charge or even authorising purchases from online
merchants such as Amazon.com.

The core principle behind their vision was the creation of an 'ecosystem' for mobile banking and payments.  Historically, mobile banking and payments efforts have failed due to the 'point to point' (bank to single operator) approach taken.  This is due to the fact that it was not ubiquitous and it expected customers to make a buying decision for their mobile phone on the basis of their choice of their financial services provider.  Alastair and Steven's vision was to create an environment where regardless of your mobile network or your bank, customers would be able to see their financial information, protect themselves when shopping or banking online and purchase goods and services through a single, easy to use, interface - based loosely on the commonality of international ATM (cash machine) interface.

Alastair and Steven approached Morse Group with the plan, who in turn agreed to incubate the business to help bring it to market.  By leveraging the group resources of Morse Group, Alastair has been able to
commercialise the venture and enter the UK market, under the brand MONILINK, where it operates in partnership with the UK switch operator LINK which already offers connections into the UK’s 37 retail banks via its existing ATM infrastructure - making this very much a plug and play service. 

In terms of success.  Monitise has now launched the MONILINK UK service and has deals with all the major UK mobile operators and is now providing core mobile banking services to customers of Royal Bank of Scotland, HSBC and first direct.  Other banks are expected to follow shortly, with all of the majors now actively involved in the development of the service through the MONILINK User Forum.

Monitise is currently in the process of rolling out the service into international markets, with its eyes on both the advanced banking environments in Europe and North America as well as the developing world
markets of Africa, South America and Asia.  It’s this latter angle that has attracted the attention of the World Economic Forum, who recognised Alastair and Monitise as a 2006 Technology Pioneer at the 2006 Davos meeting (an accolade that counts eBay, Skype and Google amongst Monitise's peer group).  The reasoning behind the award was that countries with poor financial inclusion tend not to have the branch or
internet access of the developed world.  However, mobile phone penetration is increasingly high and by allowing individuals or traders to manage their finances on their mobile, it encourages them to move
into the electronic banking environment - ultimately lowering the barriers to national/international trade and opening the doors to development finance due to the increased traceability of the environment.    Alastair has become a Global Leader of Tomorrow/World Economic Forum in 2007.

CHRISTOPHER SAMUELSON

Christopher Samuelson is Chairman/CEO of Mutual Trust, specialist, a solution provider for global cross border financial planning and emerging market private equity investment. He is a board member of RMC Kyoto, the Russian ecology investment company set up in 2006 at the behest of the Presidential Administration and whose Director General, Professor Leonid Maslov, is Ecology Advisor to President Putin.

 

JAMES D. BURCHETTA

Co-Chairman and CEO  of DebtResolve. James Burchetta is one of the founders of Cybersettle, the only internet bidding system used to resolve settlements between insurers and plaintiffs. He holds the business-model patent for the double-blind bidding process licensed to both Cybersettle and DebtResolve.

 

CHRISTINA DOMECQ, CEO & CO-FOUNDER, SPINVOX, WORLD LEADER IN VOICE TO SCREEN, A CATEGORY WHICH SHE HAS CREATED AND IN WHICH SHE LEADS

With ten years of business experience and leadership at the forefront of commercial enterprise, Christina co-founded SpinVox in March 2003 as the world’s first voicemail-to-text service for mobile and fixed line telephones.  Christina is a true entrepreneur. She founded her first business in technology-based services in New York at the age of 20. Her company, NHWC, provided IT services and training to some of the world’s largest corporations, including Kraft, Nabisco, Pepsi, Pfizer and Kodak. As CEO and owner she employed over 140 staff with a turnover in excess of $14 million, before selling off the business in August 2002.

 

Christina came up with the idea of voicemail-to-text when trying to access her voicemail while rushing between meetings in 2003. Following research and development, the service was launched in October 2004 and immediately captured the interest of the mobile industry – with SpinVox achieving tens of thousands of customers in the first few months, winning the global GSM Association ‘Mobile Innovation’ award and partnering with leading mobile retailers, distributors and operators. 

In 2005, Christina was named a finalist for both the ‘Technology Entrepreneur of the Year’ at the UK Technology, Innovation and Growth Awards and for ‘Innovator of the Year’ at the British Female Inventors & Innovators Network.  Christina has a Masters in Finance from Nôtre Dame University, a BA in Systematic Theology and BS in Economics from Boston College.  She is an Ernst & Young Entrepreneur of the Year Award Winner.

 

SpinVox brought together the two most popular methods of communication – voice and text – and created a new category of messaging called Voice-to-Screen. Its award-winning technology is now enabling everyday communication to be exciting, more powerful and above all simpler through the simple gestures of speaking and reading. These unique experiences are driving new recurring revenues for mobile and fixed-line operators.

 

At the heart of SpinVox is its patented Voice Message Conversion SystemTM (VMCS), which underpins the company’s retail, enterprise, service provider and global carrier products. VMCS is maintained on an enterprise-class hardware infrastructure by an expert management team to meet the rigorous demands of global carriers.  SpinVox created the world’s first Voicemail-to-Text service in 2003, which was launched in 2005 through partnerships with major UK retailers such as The Carphone Warehouse, The Link, Caudwell Group/4uBusiness and Hutchinson 3G.

 

Able to support multiple languages, SpinVox now leads the way in powering the convergence of voice and screen in today’s messaging markets. As well as serving retail brands and a growing direct customer base, the company’s innovative products are in service with global carriers and internet brands.

SpinVox - because speaking is the most natural way to send a message, and reading the most useful way to receive one

 

KEVIN MEAGHER – CEO & FOUNDER, INTAMAC, PIONEER OF THE CONNECTED HOME

 

Kevin Meagher, CEO of Intamac, is one of the pioneers of The Connected Home in Europe.   In 2000, he founded Intamac Systems Ltd – www.intamac.com – which he has grown to be a leading service provider of remote home monitoring and security services.      Intamac was a Red Herring 100 winner for 2006.  Their systems and services have already been adopted by Bell Canada, British Telecom, other telcos on three continents, and insurance firms.

 

CEO of Intamac Systems, Kevin is a Chartered Engineer with an MBA and additionally is a recognised expert in aircraft systems and logistics.  As Group Captain in the Royal Air Force he worked with complex avionic systems on modern combat aircraft where networking was essential to improve their capability, cost, efficiency and safety. With the advent of the Internet, Kevin saw how new server platforms could be used to network systems and appliances in the home to deliver these same benefits to consumers. It was out of this work that his vision for The Digital Home was born.  Intamac Systems Ltd has developed a web-based service platform that exploits broadband to network and control devices and delivers a range of innovative services to the connected home market.  Intamac’s platform both enables its corporate partners to deploy rapidly new product/service bundles and provide its own customers with a branded universal interface or portal through which they can monitor and control devices in the home.

 

The Company currently employs 22 staff, 19 at its UK HQ outside London and 3 in Sydney, Australia.    This will be the third successive financial year that the company has achieved a triple digit growth.  Whilst the Company secures revenue from system development and product sales, their business model focuses on generating recurring service income.  The current security and home monitoring market addressed by Intamac in its initial phase is worth more than €2.5 Billion in Europe and $19 billion in the US. Intamac’s innovative technology and business models not only put it in the perfect position to increase substantially its penetration of this existing market but the home management and control market is expanding rapidly and Intamac is developing new services that will enable it to capture a sizeable share of this growing opportunity.

 

Since securing its first major contract in 2003, the Company has completed what it defines as Phase 1 of its growth where it has:

 

·                Developed a web-based platform giving consumers the ability to monitor & control devices in the home remotely

·                Launched a number of applications that focus on security & home monitoring where there is a large, easily addressable & growing market

·                Secured strong channel partners with many leading UK companies including: Age Concern; British Gas; British Telecom (BT) and Group 4 Securicor (G4S)

·                Obtained worldwide interest in its technology & secured multi-million dollar deals with Bell Canada & Insurance Australia Group (IAG) as well as being well-advanced with companies in the US, India, Asia & parts of Europe

·                Adapted the platform to support other applications including: Telecare; Telemedicine and Home Automation 

·                Advanced projects with: Linksys; AT&T; Verizon; Samsung, KPN and other market leaders

·                Secured patents & IP to protect its technology lead & market position

·                Won awards including Red Herring Top 100 and Fierce WiFi Top 15 for 2006 and  was a finalist in the 2007 Sharp Edge awards

 

The Company is enjoying the benefit of being first to market with innovative products and services offered as White Label solutions to its corporate partners. Intamac was the first European company with which Linksys partnered.  To date, Intamac’s current partners have over 60 million customers and they have already committed to invest over $40M to take the new services to market.

MARTIN VARSAVSKY – CEO & FOUNDER OF FON

Martin Varsavsky is an Argentinean/Spanish telecommunications and new media entrepreneur.

Born in Buenos Aires on April 26, 1960, to Carlos Varsavsky and Silvia Waisman, Varsavsky attended primary school at the New Model School and the Colegio Nicolás Avellaneda high school.

At the age of 16, Varsavsky and his family escaped from the Argentine military dictatorship and emigrated to the US. He obtained a BA from the University of New York, and earned an MA in International Affairs and an MBA in Business Administration from Columbia University.

Since July 1995, Varsavsky has been living in Madrid, Spain. Besides his business activities, he is also engaged in non profit activities.

For the past 8 years, Varsavsky has been teaching courses on “entrepreneurship” at the Instituto de Empresa Business School, Spain’s leading business school. He has written numerous articles on business and international relations that have been published in several international publications including El País and Newsweek, and is a frequent speaker at conferences around the world. Varsavsky is also an active blogger.

In 1990, Varsavsky founded Viatel. Viatel used a system to provide long distance services to customers based outside the United States, in particular to Argentina. As the callback business became more crowded, the company's focus shifted to other areas (especially Europe) of telecommunications, which were just beginning to open to competition. In 1998, Varsavsky focused on his new company, Jazztel. He sold most of his shares in Viatel. Jazztel concentrated on developing a fiber-optic network across Spain, and competing directly with former state monopoly Telefonica. In 2000, he started Einstein.net, a company based in Germany, which planned to rent software to companies, providing access to it over broadband Internet connections.

 

Martin’s current venture is FON, founded in November in 2005, a community-empowered company dedicated to building the world’s largest global WiFi network bottom up, spreading the power of WiFi around the world, with one million hot spots by 2010. Fon attracted Skype, eBay and Google as partners and quickly became the largest WiFi community in the world.

He is married and is the father of four children.

GLENDA STONE, FOUNDER & CEO, AURORA

 

Glenda is founder and CEO of Aurora, a London City based company providing corporate HR software and marketing services to over 100 blue-chip clients globally. Aurora runs the UK's only 'large employer-direct' jobsite WhereToWork.com that continues to show excellent growth and profit margins with strong technical IP. In her position as CEO of Aurora, Glenda brings together experience as a manager, entrepreneur, business angel, government policy maker, curriculum developer and teacher. With a background in international trade with the Western Australian Government and working in the Queensland Treasury of Australia, Glenda is experienced in both the public and private sectors. Glenda co-chairs the UK Government's Women's Enterprise Taskforce (2007-09) announced by The Chancellor of the Exchequer that aims to increase the quantity and scalability of women's enterprise, and also chairs the 28,000+ member Aurora Businesswomen's Network, The Times' Where Women Want To Work TOP 50, the BlackBerry Women & Technology Awards and s