investors presentation

33
Α Microfund targeting Emerging tech and the Web in Greece and Southeastern Europe www.theopenfund.com

Upload: georgios-kasselakis

Post on 15-Jan-2015

1.063 views

Category:

Business


2 download

DESCRIPTION

 

TRANSCRIPT

Page 1: Investors Presentation

Α Microfund targeting Emerging tech and the Web in Greece and Southeastern Europe

www.theopenfund.com

Page 2: Investors Presentation

The VisionCreate an ecosystem that will promote high tech entrepreneurship(business + technology) and will yield high returns to all participants

Network of Advisors

Entrepreneurs

Executive Board

Investors

Page 3: Investors Presentation

The First stepInvest and foster the most promising startups

Open call for proposals

Selection of the best ideas or prototypes (up to 5 for every round)

Fund and incubate the most promising (20k-30k€)

Provide advice and guidance until the exit

Page 4: Investors Presentation

WHO ARE WE

THE OPPORTUNITY

THE PROCESS

INVESTOR INFORMATION

AGENDA

Page 5: Investors Presentation

Executive Board TeamManaging Directors

• Georgios Kasselakis, Entrepreneur, Organizer Thessaloniki Open Coffee– Operations

• George Tziralis, Co-Founder & CEO, AskMarkets, Principal Organizer of Athens Open Coffee– Overall Management / Operations

Board Members• Apostolos Apostolakis, Co-founder and CFO, e-shop.gr, Athens• Dimitris Athanasiadis, Entrepreneur, Co-Organizer of Athens Open Coffee

– Operations• Onic Palandjian, Investment Director at Capital Connect Venture Managers SA,

Athens• Sokratis Papafloratos, Co-founder and CEO, trustedplaces.com, London• Spiros Xanthos, Co-founder and VP of Engineering, Pattern Insight, Mountain

View CA• Teresa Farmaki, Head of Private Equity & Operating CEO, Piraeus Bank &

Pireaus-TANEO clean tech fund

Page 6: Investors Presentation

Advisors (so far)

• Startup advisors– Tasso Argyros, Co-Founder & CTO, Aster Data Systems

• Raised more than $25 million of funding in 3 years

– Apostolos Apostolakis, Co-Founder & CFO e-shop.gr• Grew e-shop.gr to more than 120 millions of revenue

– Sokratis Papafloratos, Co-founder and CEO, trustedplaces.com, London– Andy McLoughlin, Co-founder and Product Director, Huddle.com– Spiros Xanthos, Co-Founder & VP of Engineering, Pattern Insight

• Turned university technology to a successful startup

• Technology advisors– Haris Ermopoulos, Software Engineer for Google File System– Panos Ipeirotis, Associate Professor CS at Stern Biz School NYU– Georgios Kasselakis, Entrepreneur, Organizer Thessaloniki Open Coffee– Patrick Malone, CTO Microsoft Hellas

• MS is also a sponsor

A strong network of advisors has been formed (and growing) to help the funded companies

Page 7: Investors Presentation

Advisors (so far)• Investor Community

– Franceso Benincasa, Director at Ultimate Holdings• Networking in the UK

– Aristos Doxiadis, Managing Director Notos Associates– Onic Paladjian, Director at Capital Connect Ventures

• Founded several successful startups in the past himself

• Sales and management– John R. Lovitt, Investor, former SVP at IBM/Rational

• Interested in investing

– Yiannis Methodios, Ex-CEO (Greece), Accenture – George Saliaris Fasseas, Country Manager (Greece), Google– Christos Tsangos, CEO (Greece) Microsoft– Ioannis Vasilaras, Ex-CEO, Infote

• Accounting and legal– Andreas Akavalos, Ex-CEO (Greece), PriceWaterhouseCoopers

Page 8: Investors Presentation

Advisors (so far)• PR, Marketing, New Media

– Petros Katsampouris, CEO, Vivechrom

– George Tziralis, Organizer of Open Coffee Greece

• Grew Open Coffee GR from 0 to more than 300 people per event

Page 9: Investors Presentation

WHO ARE WE

THE OPPORTUNITY

THE PROCESS

INVESTOR INFORMATION

AGENDA

Page 10: Investors Presentation

Necessary Preconditions Exist

• Education– 1.7% of the population holding Masters’ degrees &

PhDs (among the highest in Europe)

– Highest per capita number (in Europe) of people who study abroad (and want to return to Greece)

• Community & Entrepreneurial Momentum– Open Coffee attracts ~300 participants per month

in two cities. Proportional count for 4 more cities.

– “Innovation 2006” competition from Otenetattracted 2700 participants

Page 11: Investors Presentation

Untapped Potential

0,00%

1,00%

2,00%

3,00%

4,00%

5,00%

6,00%

7,00%

Lith

uan

ia

Latv

ia

Gre

ece

Fin

lan

d

Un

ited

Sta

tes

Po

lan

d

Slo

ven

ia

Esto

nia

Icel

and

Swed

en

No

rway

Hu

nga

ry

Den

mar

k

Irel

and

Spai

n

Ro

man

ia

Un

ited

Kin

gdo

m

Bel

giu

m

Slo

vaki

a

Net

her

lan

ds

Po

rtu

gal

Fran

ce

Ital

y

Turk

ey

Cze

ch R

epu

blic

Bu

lgar

ia

Jap

an

Cro

atia

Au

stri

a

Ger

man

y

Swit

zerl

and

Cyp

rus

FYR

OM

Alb

ania

Mal

ta

Liec

hte

nst

ein

Luxe

mb

ou

rg (

Gra

nd-

Τίτλ

ος

άξο

να

% population in Higher & Highest Education

Source: Eurostat

Page 12: Investors Presentation

Availability of Funding

Public companies

Ava

ilab

ility

Seed funding

Western Europe & World

Buyout

Page 13: Investors Presentation

Availability of Funding

Public companies

Ava

ilab

ility

Seed funding

Greece & SE Europe

Buyout

Seed stage funding is nonexistent today in

Greece and SE Europe

Page 14: Investors Presentation

Distribution of Funding

Stage Greece (‘07) Europe (‘07)

Early 0 €3.35 B

Development €52 M €3.9 B

VC €102 M €10 B

Buyout €5.4 B €60 B

↓ 2x

↓52x

↓ 2.5x

↓ 6x

↓ 1.2x

Source: Private Equity Activity Survey 2008, European PE and VC Association

Page 15: Investors Presentation

Seed funding (% GDP)

0,000

0,000

0,001

0,001

0,002

0,002

0,003

0,004

0,005

0,011

0,012

0,012

0,013

0,015

0,015

0,024

0,024

0,027

0,027

0,030

0,035

0,039

0,040

0,053

0,058

0,224

0,000 0,020 0,040 0,060 0,080 0,100 0,120 0,140 0,160 0,180 0,200 0,220 0,240

Czech Republic

Latvia

Slovakia

Poland

Greece

Italy

Austria

Romania

Hungary

Germany

Belgium

Netherlands

Norway

Denmark

Ireland

Iceland

Switzerland

Spain

Finland

France

United States

Portugal

Israel

EU

Sweden

United Kingdom

Page 16: Investors Presentation

• More than 40 events

– Held hands with every single related event in Greece

• 2500+ total attendants

• 132 presentations

• 0 budget

• Guest speakers, including:

– J. Calacanis (Blogs inc)

– K. Mitsotakis (Former VC, Member of the Greek parliament)

– A. Diamantopoulou (EU Commissioner, Shadow minister of Development)

– V. Makios (Corallia, semiconductor companies incubator)

– 10s more

Privileged access to the startup ecosystem in Greece

Page 17: Investors Presentation

WHO ARE WE

THE OPPORTUNITY

THE PROCESS

INVESTOR INFORMATION

AGENDA

Page 18: Investors Presentation

Structure

Network of Advisors

Entrepreneurs

OPENFUND

Executive Board

Investors

Connect entrepreneurs and investors, provide all that isneeded to start, grow and sell successful ventures

Page 19: Investors Presentation

Find the Best Entrepreneurs

• We have almost set-up from scratch an entrepreneurial ecosystem (open coffee)

• Now we are looking for the best and brightest, to set-up the most capable of teams and invest themselves exclusively for 4 months

• To build and launch disrupting products

• The idea is just a start, team and execution is of paramount importance

Page 20: Investors Presentation

The Selection Process

• Three rounds of selection:

1. Online submission

2. In person interview

3. Presentation day (investors participate)

• Stake in up to 5 ventures / round

• 20-30K€ per investment for 20% equity

• Iterating, 4 month stages

Page 21: Investors Presentation

Benefits for Entrepreneurs

• Mentoring & networking– Leverage advice & connections from the best in the field,

tech & business– Advice can be as useful as cash

• Funding– Seed capital to cover all operational expenses for the 4-

month "incubation" period

• Smooth Start– Create the company for them at no cost– Handle all the legal / accounting issues, provide advise

• Grow– Take direct advantage of the network to grow and raise

more money as needed

Page 22: Investors Presentation

Targeted business models

• subscriptions (fixed/variable), freemium

• license, SaaS, white label

• marketplaces, ecommerce and open calls

• advertising, content re-purpose & affiliate sales

• hybrids of the above (micropayments, affiliate advertising etc)

We bring expertise on these models on board, we are open to others too

Page 23: Investors Presentation

WHO ARE WE

THE OPPORTUNITY

THE PROCESS

INVESTOR INFORMATION

AGENDA

Page 24: Investors Presentation

Benefits for Investors

• Open Coffee Greece is the ultimate destination for new startups

• Micro funds (YCombinator, Techstarts, etc.), have been very successful

– Nevertheless, closest to Greece is Seedcamp, based in the UK

Access to the best opportunities in SE Europe

Page 25: Investors Presentation

Benefits for Investors

• The OpenFund organizes everything (processes, paperwork etc)

• Investors are involved as much (or as little) as they want with the funded companies– They do participate in the selection

• Diversify by participating in every company of a round

• Extensive network of advisors and investors multiplies chances for successful exit

Effortless diversification of the investments

Page 26: Investors Presentation

Benefits for Investors

• Promote entrepreneurship in Greece & SE Europe– Funding and advising is what’s missing

– Access to a portfolio with the most promising ventures in the region

• Open Coffee has been recognized by the media for promoting entrepreneurship – High profile successful entrepreneurs, executives

and politicians participated and want to help

Social Impact and Extensive Promotion Opportunities

Page 27: Investors Presentation

Investment Approach: Funding 2.0

Invest in on-line services Iterate and Improve

Aim for the global market

Evolution of technology:Open Source, AWS, AppEngine, Azure, Cloud Matrix, Ruby on Rails…

4-strong team of great individuals is enough tocreate a disrupting product

Page 28: Investors Presentation

Sharing the Stakes

8% Management Board12% Investors80% Entrepreneurs

100%

Page 29: Investors Presentation

Investor concerns

• Minimum participation = 30.000€

• Amount is spread on all the companies of a round, up to 5

• If sufficient for more than 1 round, it is used in a predefined manner over rounds

• Example: 30.000€ gives a 2.4% stake in 5 companies

• Remember: a success for our startups is to sell or have profit of x-times over the seed amount

Page 30: Investors Presentation

Investor rights

• Tag along for all investors of each company

• Right of first refusal for all investors of each company

• No drag along

• Some rights are arbitrated by the Executive Board when many investors are participating*

Page 31: Investors Presentation

Breakeven Analysis200K € average exit for Investors to break even,

beyond that, it’s Profit

-125

355

1795

-500

0

500

1000

1500

2000

0 100 200 400 800 1600 3200

5 Companies (Single Round) Exit/Profit

Profit

Average Exit (in 1000s)

Pro

fit

(in

10

00

s)

Page 32: Investors Presentation

Past cases• Goal achievable according to experience from similar ventures

(YCombinator, SeedCamp, TechStars)• SeedCamp

– 6 & 7 companies in 2007-8– 30% of the companies had 2nd round valuated at minimum $1M

• TechStars– 19 companies in 2 years, 40% were sold– $6.9M for SocialThing.com– IntenseDebate sold to Wordpress.com (undisclosed $>10M)– $.8M average 2nd round of funding for the rest

• YCombinator– 80 companies in 4 years– 2nd rounds include: Xobni $5.2M, Loopt $12M,

Justin.tv $2M, Scribd $3.7+9M– Sales include Omnisio $15M, Auctomatic $5M, Reddit $>10M

Page 33: Investors Presentation

Fundraising

• Looking to raise funding for 5 consecutive rounds

• Up to 150.000 € / round

• 750.000 € total

• Minimum Investor Participation: 30K €