Great exits for UK Internet start-ups
For the panel discussion at Future of Web Apps 07 conference – European Startup Culture: Playing Catchup to the US? – Futurescape researched UK Internet start-ups that have exited between 2005 and January 2007 through sale to major media owners.
It found that the media owners bought up Web sites for a total of £274m - plus another £120m in the ITV/Friends Reunited deal.
This is by no means a definitive list – thanks to Saul Klein for pointing out the News International deals – but it shows conclusively that there is already a well-established market for UK-based companies to start and exit.
Types of company acquired include price comparison, classified advertising, recruitment, property, dating and user-generated content. The typical time from launch to exit is about four to five years (eg 2002 – 2006).
As noted during the panel discussion, UK start-ups could either:
- Create a service with global potential – Skype, last.fm
- Or build a company that has the potential for sale to an existing UK player (and get the money to fund up the next start-up!)
Purchases are listed by the acquiring media company.
Associated Newspapers and DMGT
SimplySwitch.com: lets consumers compare prices for electricity, broadband, credit cards etc – £22m
Auto Exposure: provides car dealers with services to publish and advertise their vehicle inventory online
Interbase: operates www.productionbase.co.uk a subscription based recruitment website for freelancers in television and film
The Appointment: runs retail recruitment sites www.inretail.co.uk and www.retailcareers.co.uk as well as the retail magazine The Appointment
Auto Exposure + Interbase + The Appointment – £17m
Allegran: operates a portfolio of dating web sites
Data Media and Retail: operates a portfolio of car classified portals, including Carsource.co.uk
Allegran + DMR – £46.5m
Links to press releases and coverage:
http://www.dmgt.co.uk/mediacentre/newsreleases/20060712/3375/
http://www.dmgt.co.uk/mediacentre/newsreleases/20060508/3370/
http://www.dmgt.co.uk/mediacentre/newsreleases/20060829/3382/
Fastcrop: publisher of the Primelocation property site – £48m
http://www.journalism.co.uk/news/story1638.shtml
Zambeasy: owner of Top-Consultant.com and officerecruit.co.uk – £4.1m
Rupert Murdoch’s News International
Milkround.com: graduate recruitment job site – estimated £20m
(There was also interest from DMGT and Trinity Mirror)
Propertyfinder.com – £14.3m
http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=854&cat=44-0-0
Trinity Mirror
Smart Media Services: owner of house portal smartnewhomes.com – £11.3m plus a further £5.3m depending on future earnings
http://www.netimperative.com/2005/07/19/Trinity_Mirror_smart
Financial Jobs Online: owner of financial recruitment website Gaapweb.com – £10.45m plus a further £2.6m depending on future earnings
http://www.netimperative.com/2005/08/16/Trinity_Mirror_jobs
Hotgroup: online classified advertising (including sites workthing.com, planetrecruit, jobsfinancial and hotrecruit) – £50.5m
http://www.abcmoney.co.uk/news/032005822.htm
SecsintheCity.com: jobs site for secretarial recruitment (set up in 2001, sold in 2005, with just three employees) – £3.5m
http://www.findarticles.com/p/articles/mi_qn4158/is_20051129/ai_n15872251
Email4Property – £4.4m
http://www.osborneclarke.com/news/5026_news.asp
Other purchasers
Yospace: a mobile user-generated content business (products include the See me TV and LookAtMe! services ) sold to EMAP – £8.7m, plus a further £5.7m depending on its operating performance in the next three years
http://www.journalism.co.uk/news/story3174.shtml
And, of course, Friends Reunited sold to ITV – £120m
http://news.bbc.co.uk/1/hi/business/4502550.stm
Total value of all deals: £394m
From the panel discussion...
Don’t miss these Flickr photos of the panel debate in the amazing Kensington and Chelsea council chamber.
And more here from Saul on how Europe can compete effectively.
A great list Colin, and nice blog overall.
I will file this in delicious and use it when people get over fixated on the need to raise VC!
Posted by: Nic Brisbourne | Wednesday, 28 February 2007 at 07:33 PM