The i5invest 'Investor: Best Practice + Q&A' deck, presented by Markus Wagner in February 2015, functions less as a traditional startup pitch and more as an ecosystem advocacy and tactical guide for European founders. The presentation leans heavily on data to justify the 'Silicon Valley move,' specifically citing that US-based companies trade at a 66% premium over European peers (Slide 15). It provides a comprehensive list of Austrian ecosystem exits from 2010 to 2014, including notable acquisitions by Cisco, Atlassian, and Axel Springer (Slide 9). The deck concludes with a highly practical 1…
Key takeaways
- US-based internet companies trade at a 66% valuation premium compared to their European counterparts as of January 2015 (Slide 15).
- The Austrian ecosystem demonstrated significant liquidity between 2010 and 2014, with exits to major global players like Google, Cisco, and Atlassian (Slide 9).
- Valuation is framed as a function of supply and demand, driven by angel networks, industry knowledge, and deal experience (Slide 19).
- Founders are encouraged to 'think 10x' because Valley investors view many European ideas as serving markets that are too small (Slide 21).
- A 'rock star team' with execution skills is listed as a non-negotiable requirement for Silicon Valley success (Slide 21).
- Preparation for the Valley includes mandatory digital optimization on LinkedIn, AngelList, and Crunchbase (Slide 23).
- The deck emphasizes the importance of 'acting as if you have been there for a long time' to build local credibility (Slide 23).
- i5invest showcases a portfolio with multiple exits to companies like Verisign, Axel Springer, and PagesJaunes (Slide 11).
Introduction and Context
The i5invest deck, titled 'Investor: Best Practice + Q&A,' was presented by Markus Wagner on February 26, 2015. Wagner holds multiple roles, including CEO of i5growth Inc. in Palo Alto and Chairman of the Advisory Board for i5invest seed capital in Vienna. This dual positioning serves as the foundation for the deck's primary objective: bridging the gap between the Austrian startup ecosystem and Silicon Valley. The deck is not a pitch for a single product but rather a strategic framework for cross-border investment and expansion.
Slide 1: Title and Credentials
The cover slide establishes immediate authority. It lists Wagner’s affiliations with i5growth, i5invest, AustrianStartups, and SpeedInvest. By including logos for these organizations at the bottom, the deck signals a deep integration into the Austrian venture capital and non-profit startup landscape. The date, February 2015, places this deck in a period of significant global tech expansion.
Slides 3-7: The Austrian Context
Slide 3 uses a classic image of Arnold Schwarzenegger to represent the most famous Austrian export, setting a lighthearted but culturally relevant tone. Slide 5 and Slide 7 pivot to the 'job' of the founder: educating US investors about the Austrian tech scene. Slide 5 uses a picturesque image of Hallstatt to contrast traditional Austrian culture with the modern tech scene. Slide 7 uses a montage of images—including Ars Electronica, the Eurovision Song Contest (Conchita Wurst), and Red Bull Stratos—to argue that Austria has a 'lively, liberal culture' capable of producing world-class innovation.
Slide 9: Austrian Ecosystem Exits and Notable Events
This is one of the most data-dense slides in the deck. It lists two columns of proof points. The first column details 'Notable EXITS' starting from 2010, featuring 22 specific transactions. Notable mentions include dynaTrace to Compuware (2011) , SolveDirect to Cisco (2013) , and Runtastic to Axel Springer (2013) . The second column, 'Notable Events,' tracks the ecosystem's maturation, citing Andreessen Horowitz’s investment into Jumio (2012) and Crate.io winning TechCrunch Disrupt Europe (2014) . This slide serves to debunk the myth that Austria lacks a track record of liquidity.
Slide 11: Portfolio Overview
Slide 11 displays the i5invest portfolio using a grid of logos. Several logos are marked with a red 'EXIT' tag, including MobFox (acquired by Matomy) , 123people (acquired by PagesJaunes) , and Runtastic (acquired by Axel Springer) . The slide uses the hashtags #inspire, #innovate, #incubate, #invest, and #internationalize to define the firm's lifecycle approach to supporting startups.
Slides 13-15: The US vs. Europe Valuation Gap
Slide 13 introduces a comparison between the two markets. Slide 15 provides the quantitative 'hook' for the entire presentation. It features a bar chart showing that US-based companies trade at a 66% premium above their peers in Europe based on Enterprise Value / Sales multiples as of January 2015. It compares 'Top 3 European' players (United Internet AG, Yandex N.V., Telecity Group plc) against 'Top 3 American' giants (Google, Facebook, eBay). The slide explicitly asks, 'Does being in the US add value for the sake of being in the US?' and answers with a resounding yes based on the 'Anglo-Saxon Region' trading at higher multiples.
Slides 17-19: What Silicon Valley Investors Want
Slide 17 poses the question, and Slide 19 provides a conceptual model for startup valuation. It illustrates that valuation is driven by the balance of supply (investment opportunities) and demand (angel investors). The 'Demand' side is broken down into three components: (Deals) experience and points of reference for valuation , Industry knowledge , and Angel network . This suggests that valuation is not just about metrics, but about the competitive environment of the capital market.
Slide 21: The Good News - Funding Follows Success
This slide offers tactical advice for founders. It emphasizes 'Thinking Big,' noting that most ideas serve markets that are too small for the Valley (suggesting a 10x multiplier). It defines success as Product-Market Fit and Traction (KPIs, Customers, Revenues, Users). It also lists the requirement for a 'rock star team' and the necessity of building a network before it is needed. Crucially, it advises founders to be open to a 'move & flip' or even returning to Europe if the US venture fails.
Slide 23: Come Prepared Checklist
This is a highly practical 'to-do' list for founders. It includes 12 specific points:
Create a great LinkedIn presence (premium). · Create a great Angel.co presence. · Create a great Crunchbase presence. · Choose a time of interesting industry events. · Look for the right place to work (Bay vs. SF). · Look out for interesting accelerator programs. · Look out for experts/evangelists who might become angels. · Meet competitors and connect with peers. · Meet former employees of competitors. · Act as you always have been here for a long time. · Bring an unlocked phone and multiple credit cards. · Bring English business cards and a trained pitch.
Slide 25: Closing
The final slide features a Google Maps screenshot of Gordon Biersch , a well-known brewery and restaurant in Palo Alto. This provides a specific, physical meeting point, reinforcing the theme of bridging the geographic gap between Vienna and the heart of Silicon Valley.
What Works in This Deck
The deck excels at using data to drive a narrative. The 66% valuation premium cited on Slide 15 is a powerful motivator for any founder or investor. By quantifying the 'cost' of staying in Europe, the deck makes a compelling case for internationalization. Furthermore, the exhaustive list of exits on Slide 9 provides the necessary social proof to convince US investors that the Austrian ecosystem is a viable source of high-quality deal flow. The transition from high-level market theory to granular, tactical advice (like bringing an unlocked phone) makes the deck feel grounded and actionable.
What Is Missing
Because this is a best-practice guide rather than a specific company pitch, it lacks several standard elements. There are no unit economics , financial projections , or specific ask for capital. It also omits a deep dive into the legal complexities of the 'move & flip' strategy, which is a significant hurdle for many European founders. While it mentions the need for a 'rock star team,' it does not provide examples of what that looks like in the context of the i5invest portfolio beyond the logos themselves.
Founder Takeaways
Founders should copy the way this deck uses comparative market analysis . If you are raising in a less-developed market, showing the valuation gap between your region and a benchmark region like Silicon Valley can help justify your expansion plans. The 'Come Prepared' checklist on Slide 23 is a gold standard for any founder planning a 'roadshow' in a new city. Finally, the use of a 'Notable Exits' slide is an excellent way for ecosystem builders or multi-stage funds to demonstrate the maturity of their home market to foreign investors.
Frequently asked questions
- What is the primary argument for European startups to move to the US according to this deck?
- The primary argument is financial arbitrage and market scale. Slide 15 explicitly states that US-based companies trade at a 66% premium above their European peers. Furthermore, Slide 21 notes that European startups often target markets that are too small for Silicon Valley standards, suggesting that a move to the US forces a '10x' mindset necessary for venture-scale returns.
- Which notable Austrian exits are mentioned in the presentation?
- Slide 9 lists several major exits, including dynaTrace to Compuware (2011), SolveDirect to Cisco (2013), Runtastic to Axel Springer (2013), and Wikidocs to Atlassian (2014). It also mentions the acquisition of checkfelix.com by KAYAK in 2011, illustrating a consistent track record of Austrian startups being acquired by international tech giants.
- How does the deck define the 'value' of a startup?
- Slide 19 defines startup value through a supply and demand lens. Supply is represented by startup investment opportunities, while demand is driven by angel investors. The deck posits that demand is influenced by three factors: deal experience/points of reference for valuation, industry knowledge, and the strength of the angel network.
- What practical steps does the deck recommend for founders arriving in Silicon Valley?
- Slide 23 provides a 12-point checklist. Key steps include creating a premium LinkedIn and AngelList presence, connecting with former employees of competitors, and attending industry-specific events. It also covers logistical basics like bringing an unlocked phone, multiple credit cards, and English-language business cards to ensure seamless networking.
- What is the 'move and flip' strategy mentioned in the deck?
- On Slide 21, the deck suggests being open to a 'move & flip.' This typically refers to re-incorporating a European entity as a US company (often a Delaware C-Corp) to make the startup more attractive to US investors who prefer local legal frameworks, thereby facilitating easier capital raises and higher valuations.
