the minimum viable investor presentation

THE MINIMUM VIABLE INVESTOR PRESENTATION Jan Rosenbom November 16th, 2015 www.keystones.dk 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: 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 1. 
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Case examples Medicinus “that sounds great, please e-­‐mail your pitch J ” IPO Venture capital Finance needed Banks Business Angels Public funding FFF/Crowdfunding Research/idea Development Proof of Concept Proof of Business Scale The investor presentaHon Lots of potenHal for wasHng precious Hme …and ruining investor relaHons fast § 
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? Where to start: The MVP of investor presentaHons! A basic…solid…allround thing… INSERT LOGO Company name: • 
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 • 
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Company name, address, www Name of contact person, mail, tlf. (confidenNality details) <20% do it well! Source: Silicon Valley Associa-on of Start-­‐up Entrepreneurs Consider the language of the presenta-on Presenta-on: Use this one-­‐pager as your end slide instead of dark screen or Q&A ®
-­‐ a new applica-on to easily track down lost things § 
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 Strack it All, 8000, Aarhus www.strackitall.dk Peter Jessen , pj@strackitall.dk, +45 2023 2799 Investor presentation February 2014 Confidential contact Apsto ApS www.apsto.com 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. INSERT LOGO Problem/need •  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________ • 
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<10% do it well ”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 11 INSERT LOGO 12 INSERT LOGO Problem § 
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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 13 INSERT LOGO SoluNon, product, service •  _____________________________________ _____________________________________ •  _______________________________________ _____________________________________ • 
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99% do it well J Describe the soluNon/product so that everyone understands it What is ”the special sauce”? Patents/rights? What is the client/user benefit? 14 INSERT LOGO Business model • 
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<10% do it well ________ ________ ______ _______ 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 15 Business model – e–xample 3. Business model overview Mobile application developers Content aggregator & distributor Telcos & Distributors Companies... Apsto... Catalogue with +35,000 applications Application Share of revenue 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 End user Application Share of revenue 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 Further information on current negotiations to be provided upon request Application Payment INSERT LOGO Business model example Company Distributors ®
End user Physical shop Device ________ Device ________ Web shop ______ _______ Payment Payment Cost price $10 per unit Commission $2 per unit Selling Price $30 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 17 IntroducNon to Apsto – overview of vision and strategy Vision By 2015, Apsto will be one of Europe’s top 3 providers of mobile content delivery platforms ...and an attractive acquisition target Strategy Œ 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
Tier 1 and tier 2 examples §  Tier 1: Telefonica (Spain), Vodafone (UK), TDC (Denmark) §  Tier 2: Virgin (UK), Telmore (DK), e-­‐plus (Germany)  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 Ž  Content & Technology 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 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 INSERT LOGO 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 19 Customers -­‐ example Mobile phone producers & Operating systems Vodafone
AT&T
Verizon
Orange
China Mobile
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Network operators Telcos & wireless providers These companies will be approached through their local entities Local focus (to some degree non-­‐English speaking end-­‐users) Apsto focus segment with examples from current leads based in India, Hong Kong and Thailand Global focus INSERT LOGO CompeNtors et _______________ _______________ __________________ • 
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<30% do it well _______________ 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 21 INSERT LOGO CompeNNve landscape -­‐ example NICE 400 ASG EsHmated total cost of ownership -­‐ USD per agent per year Verint/ Witness Mid-­‐range solu-ons aimed at contact centers with 10-­‐250 employees. Empathy’s key compe-tors etalk “Best of breed” solu-ons, e.g. voice/ data recording, IP telephony, workforce management Newco 50 Stand-­‐alone soluNons Complicated and expensive solu-ons aimed at contact centers with +500 employees Contact Center basics FuncHonality Complete contact center enterprise soluNons 22 7. CompeNNon – mobile content delivery plauorms Mobile phone producers Telcos & providers Independent developers Apple Apple Apple (itunes) Independent developers Nokia Nokia Nokia (Ovi) Independent developers Apsto Ericsson 3 Software development Content aggregation Distribution & Marketing Our primary competitors 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 End user download 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 Recording, voice and screen data Company 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 INSERT LOGO CompeNtors ParHculars Strack it all Track R Tile 1450 feet, 500 feet obstructed 150 feet 150feet Track lost items Track lost children Track lost pets OperaNng range unobstructed Distance Indicator App for IOS/Android No-­‐Android Audible funcNon Not known Replaceable bajery -­‐-­‐ Water Resistant -­‐-­‐ Not known Adjustable traceable distance -­‐-­‐ -­‐-­‐ Programmable event calendar -­‐-­‐ -­‐-­‐ High density polymer Anodized Aluminum Not known 2 year 1 year 1 year $ 30 $29 $20 Device made from Warranty Period Price CONFIDENTIAL INVESTOR PRESENTATION 25 INSERT LOGO Status and milestones •  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________ • 
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What has been achieved so far? Products, customers, team, etc. What are the next steps and key-­‐milestones? What are your ambiNons? Exit opNon? CONFIDENTIAL INVESTOR PRESENTATION 26 INSERT LOGO Team, company NN •  Competence •  Education •  Significant professional experience Board NN NN •  xyz •  xyz NN •  xyz CEO NN Sales & Marketing Technology/Operations NN NN x employees xyz x employees xyz <10% do it well Administration NN x employees xyz CONFIDENTIAL INVESTOR PRESENTATION NN •  Xyz Structure, ownership 27 INSERT LOGO Team Board Alexander Justin Founder Peter Jessen Holds 60% of shares Sales & Marketing Technology/Operations Niels Berthelsen Holds 20% of shares 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 CONFIDENTIAL INVESTOR PRESENTATION 28 INSERT LOGO 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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<10% do it well! 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 29 INSERT LOGO Capital needed, investor profile •  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________ •  _____________________________________ _____________________________________ • 
Which "deal" do you want: Capital requirement, investor's skills, tranches, milestones, exit consideraNons CONFIDENTIAL INVESTOR PRESENTATION 30 INSERT LOGO Company name: • 
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 • 
• 
• 
Company name, address, www Name of contact person, mail, tlf. (confidenNality details) <20% do it well! Source: Silicon Valley Associa-on of Start-­‐up Entrepreneurs Consider the language of the presenta-on Presenta-on: Use this one-­‐pager as your end slide instead of dark screen or Q&A