advanced data analytics platform in partnership...
TRANSCRIPT
Advanced Data Analytics Platform
In Partnership with
• Hiddenslate is software and consulting company working on machine learning and predictive data
analyses
• Hiddenslate has built a platform providing machine learning and enabling proactive decision making
• Hiddenslate’s data scientists create multiple industry and domain templates according to the needs
of its customers in different fields (marketing, cyber security, production and operations)
Who are we?
2
• To form a structured platform where our data scientists will develop domain-based templates that can
be multiplied for various enterprises
• To reduce overall data scientist costs through template libraries and our own domain-specialized
data scientist community
• To build up a cloud platform offered as-a-service (PaaS) in the data analytics industry and become
the pioneers in offering data analytics as-a-service (DAaaS).
What is our goal?
3
• With the spread of big data, we are now entering the “Industrialized Internet” age
• GE predicts 10-15 trillion USD of GDP contribution in the next 20 years
• Big Data technology and services market will grow at a 26.4% compound annual growth rate to $41.5 billion through
2018
• Data produced in the last two years now equals the entire previous data produced in the history of mankind
• Big gap between workforce needs and availability: 4.4 million big data jobs needed in 2015, only 1/3 is filled
• Germany will invest 40 billion EUR to a similar Industrie 4.0 program
• Big Data Venture Capital 2014 June – 2015 June = $6.4
billion
• 231 companies• Infrastructure & Machine Learning = $4.0 billion
• 161 companies
• Palantir Technologies = $1.1 billion
• Data Center & Cloud Applications = $2.5 billion• 70 companies
• Pure Storage = $524 million
Why big data?
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Founded 2014
Target markets
Cyber security
Marketing
automation &
segmentation
Investors / Grants
Total TUBITAK and
EUREKA Grants
500K EUR (2015-
2018)
2014 Revenues 88K USD
2014 EBITDA 35K USD
Headquarters
Technopark Istanbul
Pendik, Istanbul,
Turkey
Employees5 FTE’s + 1
consultant
Contracts 220K USD
Pursuits and
POC’s500K USD
• Ekrem Aksoy (CTO) is an accomplished electronics engineer and software
developer. Previously an academic, in 2006 he switched to the tech
entrepreneurship world where he co-founded, among others, SYM Software,
Turkcell Yemek Guru, Turkcell Mobil Ogren, Boni
• Dr. Ismail Uzun (CEO) is an experienced academic with a technology and cyber-
defense background. His management experience includes acting as the legal rep
of Bicom in Turkey, and sales force leader for Turkey for Global IP Solutions (later
purchased by Google), as well as a Deputy CEO position in C2TECH, a leading
Turkish cyber defense main contractor
• Mete Gonc (Advisor to the Board) is the co-founder and CEO of ENCODE IT
Management & Consultancy. Mete’s corporate management experience includes
local and regional Director, Country Manager mandates at Symantec, CA, and HP,
as well as Managing Consultant at Andersen and later E&Y
• Dr. Yakup Genc (Technical Consultant) is an active academic with the Gebze
University Computer Science Department in Turkey. Dr. Genc led Siemens
Corporate Research in the USA for 13 years (1999-2012), specializing in data
mining and machine learning projects
• In addition to the team members above, we have professional full-time developers, university
professors from Turkey and the Silicon Valley, as well as our professional network that we retain
on a needs-basis
What we did so far Our management team
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We can, it can’t It can, we can’t
Microsoft Cortana Platform
Does not have a template mechanism
API Endpoint scalability issues
DEVOPS expertise required
Supported by the full power and resources of
Microsoft Azure
Accenture Insights Platform
Not a platform, similar to an ERP/BI solution
Data visualization focus
Not designed to run high-throughput analytics
applications
Vast domain and industry model knowledge
residing at Accenture consulting and
implementation teams
BlueKai, 8digits and DMPs
Niche solutions to specific problems, not an
all-encompassing DAaaS
No template mechanism, not a platform
Well known in the digital advertising
community and e-commerce due to its
successful track record
Prediction.io
Not a product, but rather a sandbox tool
Requires high expertise and skills in order to
obtain meaningful results
Scalability issues
Open source, free of charge
BI Tools in House
Developed for specific purposes
Ad hoc
Low performance and scalability
(If designed and implemented properly) can
solve problems that are very specific to the
enterprise
Hiddenslate vs competitors
6
Re-using of analytical models, templates, driving service costs
down
The Hiddenslate model does not necessitate customers to
employ data scientists on their payroll
Unique Approach: Free-of-charge POC depending on success
Intangible Value: Our templates, our data scientists, and our
enterprise/cloud based customers
7
Why Hiddenslate will grow fast
Who is our primary
customer?
• Marketing automation: E-Commerce, retail, digital advertising, FMCG
• Cyber security: Corporate users of data analytics and security, SME’s
How do we make money?• Sales channels: 1. Enterprise agreements, 2. Strong local partnerships (re-sellers), 3. Public
cloud (online)
What is the pricing model?
• Market driven, focused on adding the costs of selling and running the service and an
anticipated level of gross margin
• 3 main packages: Basic (199 USD per month), Pro (1,499 USD per month), and Enterprise
(3,499 USD per month)
• Enterprise package options: 1-2 seats per SME, 4-5 seats per Enterprise
• Consultancy will be additional revenue
What is our revenue and
number of customers to
date?
• 2014 Revenue: 88K USD
• Signed Contracts: 220K USD
• No. of Customers: 8
• Grants Raised: 500K EUR
Life-time value of an
average customer
(months, USD?)
• Average 3-YR prior to churn (simulation)
• Average 660 USD per customer per month
• Average 24K USD per customer
• Average %20 churn rate
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Revenue model
99
746
1990
40
301
803
30
226
603
20
151
403
10
75
200
0
500
1000
1500
2000
2500
3000
3500
4000
Basic Pro Enterprise
Pricing Structure LEGO Model
Profit margin Storage cost Computing cost Hiddenslate admin costs Hiddenslate sales costs
BASIC PRO ENT
Profit margin 99 50% 746 50% 1,990 50%
Storage cost 40 20% 301 20% 803 20%
Computing cost 30 15% 226 15% 603 15%
Hiddenslate admin costs 20 10% 151 10% 403 10%
Hiddenslate sales costs 10 5% 75 5% 200 5%
TOTAL 199 100% 1,499 100% 3,999 100%
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Pricing model
Year 1 Year 2 Year 3 Year 4 Year 5
# of Customers 75 310 1,050 1,750 2,600
# of Employees 14 21 22 24 25
Sales Revenue (USD) 0.4M 2.3M 7.7M 11.6M 17.4M
Expenses (USD) 0.9M 2.9M 5.3M 6.4M 7.6M
EBITDA (USD) (0.5M) (0.6M) 2.4M 5.2M 9.8M
Estimated Company
Value (Multiplier 2.5) n/a n/a 6M 13M 24.5M
10
5-YR business plan
Best-Case Worst-Case Average
Initial Cash Injection (USD) 0.5M 0.5M 0.5M
Investment % in Equity 15% 15% 15%
YR5 EBITDA (USD) 9.8M 4M 6.5M
YR5 Profit Margin (%) 56% 30% 40%
Multiplier 2.5 2 2.5
YR5 Estimated Company Value (USD) 24.5M 8M 16.3M
YR-5 Estimated Equity Value (USD) 3.7M 1.2M 2.4M
YR1-5 Annual IRR (%) 49% 19% 37%
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Investor forecasts
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Evolution of the business and cash injection periods
1 2 3 4 5
expense $993,300 $2,960,250 $5,341,350 $6,409,620 $7,691,544
revenue $419,256 $2,318,259 $7,749,036 $11,623,554 $17,435,331
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
$
year
Expense / Revenue
$500K
Goal: Product
Ready, DAaaS
$1M
Goal: Team+
Global Market
$xM
Finance /
Operational
Analytics
Market
Product
• Private cloud version (v 1.0)
• Public cloud beta (v 1.0)
• Increase industry templates (total 30-50)
People
• Incorporation in the USA (Silicon Valley)
• Increase team to minimum 10 FTE’s
• Build up sales team in TR and USA
Performance
• 250-350 total customers
• 55-65 pro customers
• 25-35 enterprise customers
Finances
• Break even at 2 years and 3 QTR’s
• Positive cash flow at 30 months
• Revenues of 2-2.5M USD
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Next 12-24 months
Size of fundraise 500K USD
% of Share Capital Given
in Exchange15%
How long does it get us? Until Year 2
How will we spend it?Incorporation and physical presence (office) at Silicon Valley
Building up development team in TR
What are our KPI’s?Achievement of Product ready DAaaS / PaaS
Revenue and other financial targets as previously shown
What do we need to
achieve before the next
round?
Product ready DAaaS / PaaS
Silicon Valley office and team operational
TR development team operational
Next round will be in Year 2 (1M USD) for Global Market and Team Build Up
How else can you help us?Comments and feedback on our concept and presentation
Referrals to other potential investors
14
The fundraise
