the$minimumviable$...

Jan Rosenbom November 16th, 2015 www.keystones.dk

THE MINIMUM VIABLE INVESTOR PRESENTATION

What’s the problem?

§  At Keystones we screen ~300 companies/year and introduce ~70 to investors

§  For most of the companies the journey to successful investments is long and there is an enormous waste of resources for both companies and investors.

§  The 4 primary problems are:

1.   Inefficient presentaHon material 2.  Companies chasing the wrong investors 3.  The defined capital need along with the valua-on makes success impossible 4.  NegoNaNon processes stranded

Investor ready

Match- making

Deal!

Strategy Presentation

Team / Partners

Investors

We love building startups

200 M DKK

SWEAT EQUITY: +

350

INVESTORS: +

1,000

Case examples

Medicinus

“that sounds great, please e-‐mail your pitch J ”

FFF/Crowdfunding

Venture capital

Research/idea Development Proof of Concept Proof of Business Scale

Finance needed

Public funding

IPO

Banks

Business Angels

§  Non-‐Disclosure Agreements?

§  ExecuNve summary?

§  70 pages in Word, 15 Power Point slides, funky Prezi?

§  Send via e-‐mail, contact via phone or present at meeNngs?

§  Contracts, cap tables, term sheets

§  Budgets, cash flow analysis, 2-‐4-‐8-‐10 years ahead?

The investor presentaHon

Lots of potenHal for wasHng precious Hme …and ruining investor relaHons fast

Where to start: The MVP of investor presentaHons! A basic…solid…allround thing…

Company name:

Company name, address, www Name of contact person, mail, tlf.

(confidenNality details)

Summary with value proposi-on for the investor •  Our product is unique and solves a large problem •  Customers are xyz and their benefit is enormous •  We have an incredible team and we are ready for aggressive growth •  We are looking for x,x M DKK

Consider the language of the presenta-on Presenta-on: Use this one-‐pager as your end slide instead of dark screen or Q&A

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• 

• 

• 

<20% do it well! Source: Silicon Valley Associa-on of Start-‐up Entrepreneurs

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Strack it All, 8000, Aarhus www.strackitall.dk Peter Jessen , [email protected], +45 2023 2799

§  Find and track your lost and misplaced items using your iPhone or Android – never lose an item again!!

§  We will sell through retailers to private customers with huge benefits for all

§  We have a rock star team of 4 people and we are ready for aggressive growth

§  We are looking to raise 4.5 M DKK

® -‐ a new applica-on to easily track down lost things

contact

Apsto ApS www.apsto.com

Investor presentation February 2014 Confidential

App stores mean business!

Executive summary Mobile phone users worldwide download games, entertainment, business and other applications to their phones in huge numbers. Behind the scenes, telcos, mobile phone producers, distributors and software vendors all struggle to sell content to the end users. This market space is in a limbo with great opportunities available right now. At Apsto, we have been positioning ourselves for this moment since 2006. Apsto is a mobile content aggregator and distributor that enables telcos and other providers to offer mobile applications to their customers. Based on a proven technology platform that has by now handled more than 500,000 downloads, we license a catalogue of +35,000 mobile applications. We are negotiating with +20 operators and providers across Europe and Middle East and revenue will be generated as of March 2010. The technical set-‐up and revenue sharing business model is highly scalable and based on a high degree of variable costs. Apsto is established March 2013, debt-‐free and cash flow positive from day one. However, in order to scale revenue and our position in the market, we seek financing of 2 M DKK. The management team provides deep insight into appstore technology, business modeling, sales, strategy and finance. Our vision is to become Europe’s leading mobile content aggregator.

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Problem/need

•  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________

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•  ”So what?” Explain the exact problem that is being solved and the client benefits •  Images are oien bejer than words •  How serious is it – who has a “pain” and how big is it? How much are they willing to pay? •  Short, precise and easy and easy to understand

<10% do it well

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Problem

§  We all lose track of keys, wallets, bags, pets, or children – or forget things on trips §  We waste a lot of Nme (and someNmes money) searching the lost things or encounter lot of stress §  The are exisNng soluNons in the market, but they only cover small areas and if the lost thing is

beyond that coverage area, the applicaNon is a waste

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SoluNon, product, service

•  _____________________________________ _____________________________________ •  _______________________________________ _____________________________________

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•  Describe the soluNon/product so that everyone understands it •  What is ”the special sauce”? Patents/rights? •  What is the client/user benefit?

99% do it well J

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Business model

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•  How does the company earn money? •  Customer value: what is the cost of the problem now + which benefits do we get from it – price of the soluNon •  Design it bojom-‐up

________

______

________

_______

<10% do it well

3. Business model – overview

Content aggregator & distributor

Mobile application developers

Application

Share of revenue

Catalogue with +35,000 applications

Apsto... 1.  identifies quality content,

negotiates and obtains distribution rights

2.  localises content meta data and binaries where needed

3.  carries out physical quality assurance for all relevant handsets

4.  categorizes the software according to markets, handsets etc.

5.  ensures end-‐to-‐end distribution

6.  sells via partners or directly to end users

7.  ensures payment transfer

Telcos & Distributors

Further information on current negotiations to be provided upon request

Application

Share of revenue

End user

Application

Payment

Companies... 1.  evaluate specific market

requirements (in cooperation with telco marketing departments, handset partners)

2.  analyse uptake, manage application categories, decide localisation needs

3.  define and execute go-‐to-‐market strategy

4.  put in place budgets for online and offline marketing

Business model – example

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Business model example

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________

______

________

_______

End user

®

Web shop

Distributors Company

Device

Payment

Device

Payment

Cost price $10 per unit

Our margin: 18 USD per unit; with help of our revoluNonary technology we can produce devices at half the price compared to our compeNtors

Strack it All applicaNons on IOS and Android are free of cost

Commission $2 per unit Selling Price $30 per unit

Physical shop

IntroducNon to Apsto – overview of vision and strategy

By 2015, Apsto will be one of Europe’s top 3 providers of mobile content delivery platforms ...and an attractive acquisition target

Vision

Strategy

Market

Our market sweet spot is tier 1 and 2 distributors and telcos in Europe and emerging markets. Particularly companies that focus on localised content for non-‐English speaking end-‐users

Sales

We sell to telcos and distributors both directly and through partners. Sales priorities:

1.  Tier 1 distributors 2.  Tier 2 distributors 3.  Distributors to MVNOs

(mobile virtual network operators)

4.  Retail 5.  Direct to telcos

Organization The initial organization is in place with the necessary insight into technology, sales strategy and execution The organization will be lean and scale is to be reached through a string of channel partners. Sales effort will primarily be commission based. Locations Sales: Copenhagen Technology: Singapore

Content & Technology

Quality of existing content portfolio must be optimized Acquire new content, both high end and a long tale of low end multimedia content Focus on improving the end user experience by developing our back-‐ and front end in cooperation with all partners in the value chain

� � � �

Tier 1 and tier 2 examples §  Tier 1: Telefonica (Spain), Vodafone (UK), TDC (Denmark) §  Tier 2: Virgin (UK), Telmore (DK), e-‐plus (Germany)

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Customers and Market

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•  Insert logo •  If their is no revenue, describe that you have a ”lejer of intent” or tell about which reacNons you have got from potenNal clients so far.

Important: what is the market potenNal for the revenue from your soluNon. Many are caught by an incorrectly defined potenNal. Oien a combinaNon of bojom-‐up and top-‐down approach

•  Test with someone who have tried it before •  Beware of ”if we just had 1% of the world market” •  Realism and research = credibility

Customers -‐ example

Local focus (to some degree non-‐English

speaking end-‐users)

Global focus

Mobile phone producers

& Operating systems

Network operators Telcos & wireless

providers

Apsto focus segment with examples from current leads based in

India, Hong Kong and Thailand

Vodafone AT&T Verizon Orange China Mobile ...

These companies will be approached through their local entities

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CompeNtors

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•  The axis should be the crucial factors in your customer value proposiNon •  Oien used axis are price, TCO – total cost of ownership, quality, delivery Nme, ROI… •  Realism & research = credibility •  Analyze selected compeNtors in a table showing features with green check-‐marks and red crosses, helping you define your posiNoning

et

__________________ _______________

_______________

_______________

<30% do it well

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CompeNNve landscape -‐ example

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NICE

EsHmated total cost of ownership

-‐ USD per agent

per year

FuncHonality

Complicated and expensive solu-ons aimed at contact centers with +500 employees

Stand-‐alone soluNons Contact Center basics Complete contact center enterprise soluNons

Newco

Verint/ Witness

400

50

ASG

etalk

Mid-‐range solu-ons aimed at contact centers with 10-‐250 employees. Empathy’s key compe-tors

“Best of breed” solu-ons, e.g. voice/ data recording, IP telephony, workforce management

7. CompeNNon – mobile content delivery plauorms

End user download

Software development

Content aggregation

Distribution & Marketing

Independent developers Apple Apple Apple

(itunes) Mobile phone producers

Independent developers Nokia Nokia Nokia

(Ovi)

Independent developers Apsto Ericsson 3

Telcos & providers

Company Country base Notes

Buongiorno Italy & 24 countries Publicly listed 316m Euros revenue (2008) 1000 employees

Aspiro Sweden Publicly listed 426m SEK revenue (2008)

Getjar USA & Lithuania VC backed 778m downloads

Handmark US VC backed 3 offices, HQ in US

Our primary competitors

IntroducNon to Newco Strategy: Solid technology is a given – the right business model will win the SME market

With a wide range of players in the global market with various funcNonaliNes and capabiliNes, we believe that the SME market will not be won by funcNonality, but by the right business model

FuncNonality Company

Recording, voice and screen data

Quality Management IP telephony Archiving,

reporNng Speech analyNcs Workforce management

Newco ü ü ü ü ! !

NICE ü ü ü ü ü ! Verint/ Witness ü ü ü ü ü ü ASG ü ü ü ü ! !

Envision ü ü ü ü ! ?

etalk ü ü ü ü ü ?

Source: Newco internal analysis

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CompeNtors

CONFIDENTIAL INVESTOR PRESENTATION 25

ParHculars Strack it all Track R Tile

Track lost items

Track lost children

Track lost pets

OperaNng range unobstructed 1450 feet, 500 feet obstructed 150 feet 150feet

Distance Indicator

App for IOS/Android No-‐Android

Audible funcNon Not known

Replaceable bajery -‐-‐

Water Resistant -‐-‐ Not known

Adjustable traceable distance -‐-‐ -‐-‐

Programmable event calendar -‐-‐ -‐-‐

Device made from High density polymer Anodized Aluminum Not known

Warranty Period 2 year 1 year 1 year

Price $ 30 $29 $20

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Status and milestones

•  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________


•  What has been achieved so far? Products, customers, team, etc. •  What are the next steps and key-‐milestones? •  What are your ambiNons? Exit opNon?

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Team, company

CONFIDENTIAL INVESTOR PRESENTATION 27 <10% do it well

CEO NN

Board NN

Sales & Marketing NN

Technology/Operations NN

Administration NN

x employees xyz

x employees xyz

x employees xyz

NN •  Competence •  Education •  Significant professional experience

NN •  xyz •  xyz NN •  xyz

NN •  Xyz

Structure, ownership

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Team


Founder Peter Jessen

Holds 60% of shares

Board Alexander Justin

Sales & Marketing Niels Berthelsen

Holds 20% of shares

Technology/Operations Mette Vesterlund

Holds 10% of shares

Administration Jessica Larsen

Holds 10% of shares

Peter Jessen §  A proud geek and lover of all things electronics

and gadgets. §  Studied electrical engineering at University of

California Santa Barbara. §  After graduating, he started making consumer

electronics devices and mobile applications. Niels Berthelsen §  Masters in International Business from

Copenhagen Business School §  Business Development + R&D and product

management experience Mette Vesterlund §  Passionate about mobile technologies and

worked with most of the mobile platforms from Windows Mobile to Android and iOS, constantly focusing on new technologies.

§  With a background of 6 years in mobile application development she decided to try something new and joined Strack it All

Jessica Larsen §  Masters in Business Management from Aarhus

Universitet, School of Business and Social Sciences

§  More than 5 years’ experience within R&D, sales, general operation management

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Financials/budget

2015 1. half 2016 2. half 2016 2017 2018

Revenue

Variable costs

Gross margin

Signicifant fixed costs

Sales, markeHng, administraHon

Earnings before taxes

Cash flow

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•  Absolute minimum is revenue, gross margin, earnings •  Add other factors, raNos, value drivers if relevant •  AssumpNons and a sharp understanding of the business case is more important than accuracy of decimals

<10% do it well!

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Capital needed, investor profile

•  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________


•  Which "deal" do you want: Capital requirement, investor's skills, tranches, milestones, exit consideraNons

Company name:

Company name, address, www Name of contact person, mail, tlf.

(confidenNality details)

Summary with value proposi-on for the investor •  Our product is unique and solves a large problem •  Customers are xyz and their benefit is enormous •  We have an incredible team and we are ready for aggressive growth •  We are looking for x,x M DKK

Consider the language of the presenta-on Presenta-on: Use this one-‐pager as your end slide instead of dark screen or Q&A

• 

• 

• 

• 

<20% do it well! Source: Silicon Valley Associa-on of Start-‐up Entrepreneurs

INSERT LOGO

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