service2media venturelab

Service2Media

Marcel Roorda COO Service2Media

VLT Venture Class, Thursday May 19, 2011

1. Introduction

2. Why Service2Media?

3. How we started?

4. How we grew?

5. Becoming a global products company

6. What have we achieved?

7. Lessons learned

Agenda

Introduction

Introduction About Marcel Roorda

43 Years old HBO University 1984-1988 Since 1988 in the IT (product) business Since 1999 in Global Telecom business From consultant to VP Global System Integration Founder / COO Service2Media

Introduction About Service2Media Founded in 2005 by senior management of

(Logica)CMG Advanced App Solutions

Long term Partnerships With our App Lifecycle Platform Apps Designed Once, Deployed on Multiple

Devices Offices: Netherlands, UK, Spain, UAE & US Over 110 employees International Recognized:

Amersfoort

Enschede

London

Spain

United States 1st  place   14th  place   Endorsed  

UAE

Introduction Over 80 ongoing Partnerships - Local & Global

Banking Payments

Live Timng Ads News Tv Programs Academic Government

Journals

Travel Planner Arabic News EPG Remote Record

App Store Social Contacts

Collective Insurance Community Damage Claim Artist Community Automotive Loyalty Media Portfolio

Entertainment City Guide Social Media Location Based Services 360 Widgets

Why Service2Media? (Why to start your own company?)

Huge salary Lease car Fantastic business title(s) Responsible for 1200 people (world wide) Company credit card Own management team & secretary

One problem with gazing too frequently into the past is that we may turn around to find the future has run out on us.

Cibenko

Why to start you own company?

-

Because we had a vision!

To create relevant, useful and entertaining mobile experiences for the customers of our

Service2Media mission statement

New business starts with small deals (trials) For incentive driven sales staff not interesting Not on the radar screen of the board Best people most of the time used for most important business (most money) Complex sales Required a massive reorganisation

They always say time changes things, but you actually have to change them yourself

Andy Warhol

Why not starting this business in LCMG

Start with our own money

Investors only invest when you have products and customers

Investing your own money creates common goal / focus

Create our first products and get our first customers

Started with 4 different propositions!

Search for (angel) investors to be able to make serious commitments

Expanding the business in the Netherlands

Find more money for international expansion

Expanding the business internationally

Adapt to the market you are working in

Talk the same language as your customers

Adapt to the markets were the money is

Start finding money a half year before you need it!

Take the right investors with the relevant network

Be patient

Willing to share

Stay focused

What was important for us

Because: It is fun!

You are in control

No compromised strategy

You learn the details

You create more value with shares then salary

But ...

To survive you need: Inspiration & Transpiration

Why starting your own company?

How we started?

How we started? Using our own money!

Most Investors only invest when you have products and customers Investing your own money creates common goal

How we started? Created our first product and found our first customer

How we started? Created a simple business plan

Requires an inspired sales talk,

Less money

No lease car

No proven track record

No customers

No office

How we started?

First long term commitment

What are the Service2Media company values

How we started?

First setback, the market (customer) is not ready for it!

success

Second setback, investment takes always more time and effort as initially expected

How we started?

How we grew?

group of

How we grew? Team

How we grew? Found an Angel investor(s)

Angel investors are easier to get and give you freedom

Produces stress (conflicts of interests)

Cash flow Balancing act

Staff becomes skeptical

High educated and knowledgeable Cultural change (departments)

How we grew?

Be who you are, under all circumstances

Stay focused, keep telling the same story over and over again

Be confident, stay always (realistic) positive about financials

Motivate staff to cross the borders

Show your added value, by setting the right priorities

Be a team player, be one of them, be a front runner!

"inspiration let people do things which they believed they

How we grew?

New markets (pioneering) No need yet No budgets

Being a new (startup) company No proven track record Too small for doing business

RaboBank, NS, .. Becoming a products company

How we grew?

How we grew? Expand your business

Unknown brand(pioneering) Not a local company Not native speaking No local presence

Competition No (internationally) proven track record Pick up the mission impossible projects

Organizational changes Different responsibilities

How we grew?

Becoming a global products company

No longer customer/market driven But still to deal with existing customer commitments

Product management owns the product (roadmap) Roadmap tells sales what to sell

Roadmap tells development what to develop

There is more needed than a product: product eco system Training

Tooling

Consultants

Different type of resources

Different type of contracts (support)

Becoming a global products company

Becoming a global products company Looking for a VC for further (international) growth

Finding a VC takes a long time Start at least a half year before you run out of money

Becoming a global products company

What have we achieved? (Looking outside in)

Simple, the potential of a winner

Heritage of people

Blend of the team

Foundation of logo accounts

Ability to execute

From service-company towards product-company M2Active Platform!

Looking outside in Team

Hot and dynamic market

Mobile is boosting

Increasing competition

Price pressure

Consolidation

Opportunity to prove value add

Looking outside in Business

Challenge: potential needs to be realized

Operations International expansion Marketing

not only a technical proposition, as well a marketing and branding proposition!

The Power of Believing

Looking outside in

Service2Media believes that:

Cross platform challenges will only grow over the coming years

Users demand cross device app experiences

Core Mobile Apps are becoming increasingly strategic

Demand for business-oriented apps will grow

To get the maximum out of the hyper growth potential of (mobile) applications we need to stay ahead of the curve and make our technology platform available to our customers and partners

This requires continued focus on and heavy investments in our Mobile Application Lifecycle Platform M2Active

Looking outside in Vision of Service2Media

Lessons learned

There is always a next challenge lined up!

Lessons learned Looking back

Focus (own belief)

Perseverance

Teamspirit

Continue to love challenges

Ability to adopt and anticipate on changes

Daring to take business risk

Long term strategy (international)

Resolute action, short lines of communication, quick decision

Self-financing our own innovation projects (R&D), proven technology

Lessons learned Success criteria

Lessons learned

Early money is expensive!

Be who you are

Believe your own message

Communication is about timing and not about the message

Be a good listener (sensitivity)

Be decisiveness if, otherwise be invisible

Lessons learned My personal checklist

people when they make errors (mistakes are required to improve or grow)

Who are your successor(s)

Stay focused (show commitment)

No upfront commitments

0-line (same rule for everybody, no exceptions)

Delegate is not enough, delegate = monitor

Lessons learned My personal checklist

Questions