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Vistaprint story: notes from the Nantucket conference

Tim Rowe (moderator)
Fergal Mullen (Highland GP)
Robert Keane, VistaPrint CEO

Chance meeting between HCP and company

Tough deal:  Fergal was a new guy, very big check ($50m), took the view that it was worth going for

• $30m up front, $20 later, contingent on exiting outsource production contract
• HCP decided to invite another firm in for $10m for which HCP was already on-hook, company agreed to pitch 3 investors, HarbourVest took the piece
  

In 2003, when deal was done, profitable, $12m/quarter revenue, growing fast

• Got 5 term sheets
• Wanted one new investor (had Sofinova, other euro investors)
• HCP had to fly to Europe, meet with old investors
  

Amount returned is off-the-record [well into 9 figures], but Fergal says [on the record] that he “wore a diaper” for a year after the deal closed.

Tough moments along the way

• Robert and Fergal developed a strong personal relat, extending outside work, which helped them through the tough spots
• Eg, tough dicussion about team upgrading early on, pushing aside some early employees
• Management’s perspective is decades, not years: we are a young company; this is the beginning of the VistaPrint story. [VC perspective is liquidity in 10 years.]
• IPO is just another milestone, much like for Dell [would not have chosen that example]
• Now rolling out into 1600 Fedex/Kinkos stores, powering their offer
• Expanding into e-mail marketing
• Re-incorporating in Holland, moving HQ back to Paris (for tax certainty based on established tax treaties)
• Looking for great talent — perhaps people coming out of failed start-ups
• Fastest growth in Asia/Pac
  

Fergal [who is working with Highland primarily in Europe]: VC in Europe is a big opportunity

• 1/5 as much VC in the same size economy
• But, no clusters, need to be a hunter out there beating the bushes
• Stay away from London deals:  they are mostly financial
• Building up team and investment portfolio
• Boston to Europe is a good connection, much better Europe than to Si Valley:  culture, time zones, travel
• Europe is a better base for a global business:  easier to deal both E and W