Media-for-Equity deals in EuropeMarch 2017

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21

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11 10

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10

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6

4 3

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4

–

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5

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'12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16 '12 '13 '14 '15 '16

Germany Spain France Sweden Rest of Europe

Media-for-Equity (MfE) rounds in Europe: an instrument

that’s mainly been used in Germany, Spain, France

2Source: Dealroom.co

7

28

36

28

31

2012 2013 2014 2015 2016

Europe

Media-for-Equity in

Europe (nr. of rounds) Media-for-Equity by country (number of rounds)

Selected active investors in European Media-for-Equity

rounds. Many of them tied to TV network

3Source: Dealroom.co

Note: amount often includes mix of media and cash for equity.

Fund name AmountMfE

RoundsCompanies

ProSiebenSat.1 Accelerator € 27M 39Jim Drave, Cashboard, Clark, Fairr.de, Foodist, Mossify, Meine SpielzeugKiste, Valendo GmbH, 123Makler, SpringTab,  tripRebel, KUKUMI, kaputt.de, Layoutfabrik,

Asanayoga, Pablo & Paul, Jaimie Jacobs, HelloCare, Eurosender, Ekoio, Myonbelle GmbH, SecureBeam, Little Postman, Media4Care, Flairelle, Veeplay, Photocircle,

MyRadioDay, Kinematics GmbH, Tvib, Videostream360, EYEGLASS24,  Jurato, get2play, Talentry GmbH, Tickethelden, Dreama.tv, Ampido

GMPVC - German Media Pool € 90M 19JobToday, Book A Tiger, About You, Clark, Twago, Geschenke.de, Marley Spoon, Urbanara, ePetWorld, Danato, Momox, JustBook, Firma.de, Tab Ticketbroker,

MyBestBrands, Toptarif, Pauldirekt, Medikompass, 9flats

SevenVentures € 7M 18Centralway, About You, Ayondo, Jawbone, PippaJean, Fineartmultiple, JutFab, asgoodasnew, Kiveda, Zalando, Shopkick, HolidayInsider, Lieferando, Lottohelden,

Mawaku, Tirendo, BabyMarkt, Kuchen Quelle

Aggregate Media € 12M 12 Vakanta, Storegate, Billogram, Readly, Lastgrab, Teknikdelar, Fello, Calmino Group, Larma Gruppen, Plick, Nattpasset,MrGreen

5M Ventures € 13M 8 Jobaroundme, Youbox, e-loue, Easy cartouche, Albert Learning, Sefaireaider, Wingit, CornerJob

Atresmedia € 32M 8 Groupalia, Fintonic, PromoFarma, Restaurantes.com, Hundredrooms, Job Today, Fever, Wallapop

Ad4Ventures € 22M 7 PrivateGriffe, La nevera roja, Fever, Deporvillage, Springlane, CornerJob, Fazland, Playspace

Media Digital Ventures € 8M 6 Hundredrooms, Groopify, Deliberry, Waynabox, Washrocks

L'Express Ventures € 0M 5 MorningCroissant, Kitchen Trotter, Immoinverse, Chicplace, Short Edition

Mediaset € 20M 5 La nevera roja,  Deporvillage, Springlane, CornerJob, Deporvillage

Channel 4 € 35M 4 Billogram, Readly, Deezer, Eve Mattress

TF1 € 12M 3 Sejourning, Sefaireaider, CornerJob

RTL Group € 9M 3 AlloVoisins, CornerJob, Solvo (Heilzaam), likely many more via subsidiaries

WeltN24 € 5M 2 Clark, Savedo

With 31 rounds in 2016, Media-for-Equity continues to be an

actively used instrument for scaling European companies

4Source: Dealroom.co

€ 6M

Lottohelden

Centralway

ePetworld

€ 4M Leetchi

Youboox FamiHero City

€ 3M Jobaroundme Sejourning € 10M € 5M

Kiveda Tab TicketbrokerChicPlace (€

0.3M)Short Edition € 3M € 10M Geschenke.de

BabyMarkt WallapopMedia4Care (€

0.6M)OpenRent fintonic Fineartmultiple € 44M Waynabox € 13M

Kuchen Quelle Danato e-loue (€ 0.6M) Momox PippaJean Springlane Deliberry (€ 0M) Hundredrooms Eve Mattress

Kitchen Trotter MyBestBrandsPhotocircle (€

0.6M)

Jaimie Jacobs (€

0.6M)PromoFarma KUKIMI (€ 0.6M) Clark Hundredrooms About You

€ 6M HolidayInsiderVideostream360

(€ 0.6M)Veeplay (€ 0.6M)

HelloCare (€

0.6M)€ 4M MyMicroInvest Fairr.de (€ 0.6M) € 4M

JimDrive (€

0.6M)Larma Gruppen CornerJob € 1M

Medikompass Ampido (€ 0.6M) Tvib (€ 0.6M) na Flairelle (€ 0.6M)Eurosender (€

0.6M)Ayondo

Easy cartouche

(€ 0.4M)na Clark (€ 0.6M) Localisy

123makler (€

0.6M)Deezer Vakanta (€ 0.9M) Storegate € 42M

PauldirektDreama.tv (€

0.6M)Jurato (€ 0.6M) Groupalia na

SecureBeam (€

0.6M)Ekoio (€ 0.6M) Plick (€ 0.1M)

kaputt.de (€

0.6M)Wallapop

tripREBEL (€

0.6M)

Restaurantes.co

m

Valendo GmbH

(€ 0.6M)Savedo Billogram (€ 1M) Wingit

BOOK A TIGER (€

10M)

JustBookget2play (€

0.6M)

EYEGLASS24 (€

0.6M)Headweb Immoinverse

Myonbelle

GmbH (€ 0.6M)

Pablo & Paul (€

0.6M)

PromikBook AB

(€ 0.3M)

Asanayoga (€

0.6M)Fever Foodist (€ 0.6M)

Groopify (€

0.8M)

Meine

SpielzeugKiste (€

0.6M)

Washrocks Clark (€ 3.3M) CornerJob Fazland

Twago (€ 2.7M) na na naTalentry GmbH

(€ 0.6M)

MyRadioDay (€

0.6M)Firma.de asgoodasnew

Little Postman (€

0.6M)

Cashboard (€

0.6M)

NattPasset AB (€

0.6M)

SpringTab (€

0.6M)Hundredrooms

Deporvillage (€

2.5M)Clark (€ 1M) Fello (€ 1.1M) Readly (€ 2.1M)

Deporvillage (€

3.5M)

Cocoricauses (€

0.4M)playspace

PanoraBanques

(€ 3M)

MorningCroissan

tToptarif Tirendo

Tickethelden (€

0.6M)

Kinematics

GmbH (€ 0.6M)Lieferando Mawaju Readly (€ 1.2M)

La Nevera Roja (€

6M)

PrivateGriffe (€

2.7M)

Layoutfabrik (€

0.6M)

Albert Learning

(€ 0.2M)

Sefaireaider (€

4.5M)

AlloVoisins (€

1.7M)

Marley Spoon (€

40M)

CornerJob (€

3M)

CornerJob (€

4.5M)

Lastgrab (€

0.5M)Job Today (€ 31.9M)

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2012 2013 2014 2015 2016 2107

7 rounds 27 rounds 34 rounds 27 rounds 31 rounds 4 rounds

Includes €32 million for Job Today.

Includes (up to) $ 44 million in media for Marley Spoon, March 2016.

About Nicolas Eglau:

▪ Nicolas Eglau is based in London working as an advisor to A+E Network UK (a JV of Sky and A+E Networks). In his previous role as Chief Operating Officer, he managed A+E Networks' operating and commercial units in the UK and other territories including Finance, Legal, Operations, Strategy, Distribution and Ad Sales. He also served as General Manager, Nordics, Benelux & CEEMEA, overseeing the company’s offices in Copenhagen, Warsaw, Amsterdam and Johannesburg

▪ Eglau joined A+E Networks from RTL Netherlands after serving five years as a member of the Executive Board and Managing Director, Ventures. In this role he built and managed RTL Netherlands’ cable TV division as well as a portfolio of high growth digital start-ups, ranging from disruptive e-learning platforms such as Squla to digital marketplaces such as Couverts (in the meantime acquired by Tripadvisor)

▪ Previously, he was Vice President, Central and Eastern Europe for RTL Group. In this role, he executed a range of M&A initiatives across the region. Prior to joining RTL Group, Eglau held a Corporate Development position with Kirch Holding in Munich where he was part of a small strategy unit linked to the group's owner Leo Kirch

Media-for-Equity: five tips for start-ups (by Nicolas Eglau)

5Source: Dealroom.co

Introduction

▪ Media-for-Equity structures offer the opportunity for start-ups to increase brand awareness and scale up the business at an early stage without using their limited funding resources. Various media groups such as ProSiebenSat1, Channel 4 and RTL Netherlands have been building portfolios of ventures through MfE deals, each of them in a slightly different way.

▪ From a start-up perspective, it's key to leverage its position and negotiate the best possible structure.

1. Quality of media

▪ MfE structures have traditionally been built on the basis of unsold advertising space. Commercials were placed in off-prime slots, whether in day or night time or on smaller channels. This approach isn’t sufficient anymore for start-ups to reach their targets whilst other competitors promote their products in premium slots. Start-ups therefore need to make sure and agree in the contract they get the best possible campaign mix including prime time slots in big entertainment shows like The Voice. Only such mass audience positions will help scale up brand awareness and number of transactions.

2. Media planning▪ Start-ups should make sure they get the best possible support form their MfE partner in building a media plan. Such services should be part of the MfE agreement,

otherwise a lot of the media value could be wasted. The start-up team needs to give a clear and complete briefing regarding their marketing targets and agree with the broadcaster or publisher on concrete deliverables.

3. Media mix▪ MfE deals potentially bear the risk of limiting specific campaign results. One reason could be that certain target groups are not sufficiently covered by the outlets of the

media partner. It's key for the start-up to maintain the right to extend campaigns and include 3rd party media space. Alternatively a second MfE party with complementary demographics could be added to the partnership. Start-ups should absolutely avoid entering into exclusivity agreements with their MfE partner.

4. Creative

▪ Media contributions as part of MfE deals potentially create a step change for a start-up. A lot will however depend on the creative execution. The strongest media mix will fail if the message isn't clear or the spot perceived boring. Most new businesses have no experience in creating first class campaigns. It's in the interest of the media partner to give full support, potentially using internal resources or its network of creative agencies. If possible, start-ups should put such commitments into their partnership contract, the more concrete, the better!

5. Cash element

▪ MfE structures are a big step for young entrepreneurs as they trade a real asset (shares) against something they don't really know or understand. Founders want to be absolutely convinced their media partner is fully committed to the venture. One way to secure this commitment is to insist on a cash element alongside the media contribution. Such cash injection will definitely help from a psychological point of view. Beside this, these funds are needed to cover cost for staff, google or tech development.

6

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