DIGITAL MAGICS: Italy’s most prolific incubator
Digital Magics has consolidated itself as Italy’s leading digital startupper. The third Exit has been completed for one of the 25 startups created in 6 just years time, with over 16.5 million Euros invested in seeds, 6.5 million of which from co-financiers
Milan, June 29th 2011 – During its 1st Demo Day, Digital Magics, one of Italy’s most prolific digital startupper companies, announced the Group’s financial results, as well as its third exit. Digital Magics has raised about 4 million in equity and, just 6 years following its establishment, has already founded 25 startups and has another 4 in incubation, with an average investment of about 400,000 Euros per seed.
Overall, the company has invested a total of about 10 million Euros during the seed stages and has involved other players in the sector for an additional 6.5 million: Business Angels and Industrial Groups, as well as Venture Capital and Private Equity funds. The company is committed to continuously investing at a rate of six new startup seeds per year, using the funds deriving from the exits and by launching a new capital increase aimed at financing the next stage of development.
The third Exit: Bibop
For Digital Magics Group, the third Exit process has been completed. We’re talking about Bibop, MyCast’s first member-active Social TV platform aimed at broadcasters for the management and monetization of their own communities.
The startup was sold to Brainspark plc, a London-based investment firm listed on London’s Alternative Investment Market. The company was evaluated at approximately 5 Million Euros, and the value of the transaction, which was carried out in two tranches, amounts to approximately 3.5 Million Euros, which were paid partly in cash and partly in the shares owned by the purchaser. With this transaction, Digital Magics has become a major shareholder of Brainspark, holding 13.5% of the company’s shares.
Bibop has branches in both Italy and the United States and represents an extraordinary example of a digital startup company that has managed grow from a managerial standpoint and consolidate itself in just a few years time by patenting and diffusing its technological platform on an international level.
Investment in Sinapsi
The company also announced an agreement for investment in Sinapsi, with a market share of 30%. Sinapsi is one of Italy’s major web integrators, and is the author of important platforms for digital delivery, e-commerce, e-finance, DRM and micropayment systems. The investment in this prestigious tech boutique will serve as a valuable support for the technological development of all the network’s companies, and highlights the group’s dedication to accelerating the company’s development.
The Italian Venture Capital market
In Italy, the early stage investments by funds and operators in 2010 amounted to approximately 90 million Euros (source: AIFI), in addition to the nearly 33 million Euros invested by Business Angels (source: IBAN). Italy, however, still remains behind on the European stage: ArcticStartups recently published a post that gauges the amount of venture capital investments per capita: Israel $142, U.S. $72, Finland $46. The European average, on the other hand, is just $7, which clearly highlights the old continent’s lack of competitiveness in the field of innovation. Italy’s investments, on the other hand, amount to less than $3. Starting this year, however, as is the case throughout the rest of Europe, our country will also be initiating major investments in the digital sector with ample space being allocated for local startups and venture capital investments. The experiences of other European incubators (in the UK, Germany, France and Spain) show how it is possible to launch European initiatives targeting major shares in the local or continental markets, offering excellent Exit opportunities towards both continental (telco and media groups) and global operators (Internet companies).
Digital Magics
Digital Magics Group is one of Italy’s most prolific industrial incubators for online initiatives. The Group’s business is involved in the larger world of Venture Capital and is focused upon identifying and sustaining business ideas in the “seed†and subsequent “startup†stages through its LAB, which offers financial, strategic, logistical, technological and marketing services, as well as business management support capable of accelerating the company’s development. Since its founding in 2004, Digital Magics has helped launch 25 new startups, which are now leading the main sectors of Italy’s online market: including online advertising platforms, publishing, marketing services and e-commerce. www.digitalmagics.com
