European Tech Financings Slowing Down Even Before Brexit Effect, While M&A Activity Remains Unusually Strong
More entrepreneurs than ever are choosing to compete from Europe. 10 years ago most founders building international tech businesses would automatically move to the US.
AI Teams Being Acquired For Over $2m / Employee; Employee Value Often Far Greater Than Business Value
Twitter just paid $150m for 14-person Magic Pony, a UK-based AI visual search company barely anyone had heard of before the deal. At $10m+ per employee it marks a high water mark in AI for what is essentially a team acquisition.
We believe the just announced Microsoft/LinkedIn marriage can work, even if there are likely some very tough times ahead as both companies combine awkwardly.
Ad-tech or market-tech; call it what you will; the programmatic advertising and targeting industry has become a hugely complicated morass of 4,000 products, many with overlapping functionality and unclear benefits for end customers.
Venture capital investors across the US and Europe are failing to take full advantage of high-value “exit windows,” according to Magister’s 15-year analysis of VC and private equity (PE) exit activity. Our analysis suggests VCs are significantly better at investing than exiting.
GM just paid $1B+ to acquire 40-person self-driving technology vendor Cruise Automation; last year Continental AG paid $700m for Elektrobit’s automotive software business unit (full disclosure: Magister has advised Elektrobit).
After 5 years, 18 successful deals and $2B+ of value generated, Magister is evolving into two separate entities.
Statement on Virtual Currencies to the European Parliament’s ECON Committee. I appreciate the opportunity to speak with you today and share my views on virtual currencies. I am a Partner with Magister Advisors LLP, an EU-based boutique investment bank we established in 2011.
2016’s quieter funding and IPO markets will drive more tech private mergers than ever before. These mergers can support successful growth companies through a volatile funding environment, and accelerate creation of a future group of enduring unicorns.