Enterprise Investors’ Venture Fund Invests Over €6 Million

Ballroom operates on the internet advertising market, which is the most dynamically growing segment of the whole media industry, and the only one that grew steadily throughout the recent economic slowdown. The company has a strong presence in all key markets of the region. The combined CEE/SEE markets where Ballroom is present are forecast to grow dynamically at an average annual rate of 16% over the next few years (with growth in Romania and Turkey forecast to exceed even 30% annually). These markets exceeded €1 billion worth of total internet ad spending in 2010. They are inhabited by over 150 million people, of which only 50% have used internet so far (compared to over 70% in Western Europe), and the average spend per capita is just €6 annually (compared to €47 in Western Europe and €60 in Germany).

Ballroom International started operating in 2009. It is a holding company based in Munich with the ultimate strategy to build a unique position at the CEE/SEE level by consolidating all the important markets of internet ad brokers in the region under a unified umbrella. This will build the only player like this in the market, creating the first-choice option for large internationals wanting to enter this fast-growing region and the one-stop shopping partner for international advertisers and internet publishers aiming to build their presence here. Currently, through its subsidiaries in the Czech Republic, Romania, Poland, Hungary and Turkey it is the largest independent internet ad broker in CEE and SEE. The Group has been growing dynamically over the last two years and forecasts to reach consolidated revenues of more than €25 million in 2011.

Enterprise Investors is one of the largest private equity and venture capital firms in Poland and Central and Eastern Europe. Active since 1990, the firm manages funds with capital exceeding €1.7 billion. These funds have invested more than €1.4 billion in 123 companies across a range of sectors and exited 94 companies, with total proceeds of €1.7 billion. They have participated in 27 IPOs on the Warsaw Stock Exchange. Enterprise Venture Fund I is the most recent fund in the Enterprise Investors group. Raised in 2008 with total capital of €100 million, it is the largest fund of its type in Poland and the CEE region. EVF's investments range from €1 million to €5 million per project, but can exceed this amount as the Ballroom case shows. The fund finances the expansion of small and medium-sized enterprises operating in different sectors. To date, EVF has realized investments with a total value exceeding €34 million in companies operating in Poland and other CEE countries. Ballroom marks the tenth investment by EVF.