Investors  &  Opportuni/es  

NewsCred  HQ  |  November  19,  2013  |Banani,  Dhaka  

presents  

LET’S  DO  THE  WAVE!  

Agenda  Welcome  Samad  Miraly,  CEO,  Empty  Ventures    Investment  from  a  Local  Perspec/ve  Fahim  Ahmed,  Small  Enterprise  Assistance  Funds  (SEAF)    Angels  &  Coffins:  Inves/ng  in  Oasis  Coffins  Jerry  Nicholson,  Managing  Director,  Tinder  Capital    Angel  Investor  Open  Floor    Game  Time!  –  Fundraising  Fun    Understanding  Investment  from  Entrepreneur’s  Perspec/ve:  Newscred’s  Experience  Iraj  Islam,  CTO  &  Co-­‐Founder,  NewsCred    Local  Context  from  an  Interna/onal  Investor:  A  Global  Perspec/ve  on  Bangladesh  Startups  Tanveer  Ali,  ExecuTve  Director,  InflecTon  Ventures  

Agenda  Enriching  Your  Par/cipa/on  Samad  Miraly,  CEO,  Empty  Ventures    Final  Lightening  Round  Pitch  to  Investors    Closing  Remarks  +  Introducing  the  Angel  Network  Mustafiz  Khan,  Founder,  Startup  Dhaka  Fayaz  Taher,  CEO,  Fortuna  

Welcome    

Samad  Miraly  Empty  Ventures  

What’s  Happening  This  Week  Mon,  Nov  17  StartupBashBD  Kick-­‐off    NewsCred  office,  Banani,  Dhaka  

Tues,  Nov  18  Startup  Toolbox    NewsCred  office,  Banani,  Dhaka  

Wed,  Nov  19  Investors  &  Opportuni/es    NewsCred  office,  Banani,  Dhaka  

Thurs,  Nov  20  Technology  &  Social  Good    BriTsh  High  Commissioner’s  Residence,  Baridhara,  Dhaka  

Fri,  Nov  21  Must  Have  Skills  –  Part  1    EMK  Center,  Dhanmondi,  Dhaka  

Sat,  Nov  22  Must  Have  Skills  –  Part  2    EMK  Center,  Dhanmondi,  Dhaka  

Sat,  Nov  23  The  Entrepreneurial  Community  Effect  American  Club,  Dhanmondi,  Dhaka    

Investors  &  Opportuni/es  is  about  connecTng  investors  &  entrepreneurs  so  they  can  be_er  understand  each  other’s  need  within  the  local  context.      Sessions  will  cover  stories  about  successful  investments  and  raising  funds  along  with  interacTve  sessions  to  put  what  we’re  learning  into  acTon  

ASK  a  ques/on  (or  comment)    

WIN  a  prize!  

Share  on  Social  Media!!    

Post  pics  &  tag  others    

#startupbashBD  #GEW2013  

Investment  from    a  Local  Perspec/ve  

Fahim  Ahmed  SEAF  

www.seaf.com  

NOVEMBER   20 13    

SEAF  Empowering  Entrepreneurs  

www.seaf.com  

SEAF  Overview  

�  Global  investment  firm  founded  in  1989  and  headquartered  in  Washington  DC  �  SEAF  provides  growth  capital  and  technical  assistance  to  SMEs  in  emerging  and  

fron/er  markets,  seeking  both  financial  returns  and  development  impact  �  Also  operates  CEED,  the  Center  for  Entrepreneurial  and  ExecuTve  Development  �  140  employees  with  a  network  of  25  offices  located  across  5  con/nents  �  32  funds  (24  currently  acTve)  across  30  countries;  total  commi_ed  capital  of  $655mm  �  $472mm  invested  in  378  SMEs  globally,  with  214  exits  since  incepTon  (as  of  2012  YE)  

www.seaf.com  

SEAF’s  Global  Footprint  

•  SEAF  has  been  active  in  SME  investment  for  over  24  years,  managing  funds  across  30  countries    

`  

SEAF  HQ  

SEAF/CEED  

www.seaf.com  

SEAF  in  Bangladesh  

•  Why  Bangladesh?  •  Attractive  macroeconomic  themes  

•  150mm  pop,  >6%  GDP  growth,  labor  cost,  middle  class  driving  domestic  demand  

•  Large  and  growing  MSME  segment  •  Entrepreneurial  culture;  2mm  businesses  

•  But  limited  access  to  risk  capital  •  Missing  middle  left  behind  by  banks,  MFI  

•  SEAF  Bangladesh  Ventures  is  an  investment  vehicle  established  in  June  2010  •  Provides  growth  capital  to  small  &  

medium  enterprises  in  Bangladesh  

•  $12mm  in  equity  investment  led  by  International  Finance  Corporation  (IFC)  

•  Managed  by  a  SEAF  subsidiary  •  Committed  $3.7mm  into  9  

investments  (as  of  Sep2013) 15

www.seaf.com   16 www.seaf.com  

Investment  Strategy   Challenges  

�  SMEs  that  require  between  $100,000  to  $500,000  in  long-­‐term  financing  

�  Early  to  growth  stage  companies  underserved  by  institutional  capital  

�  Opportunity  to  provide  advisory  services  to  help  grow  the  businesses  

�  Generates  strong  financial  returns  and  development  impact  

�  Target  sectors  that  represent  dominant  macro  themes:  ¡  Information  Technology,  Renewable  

Energy,  Manufacturing,  Transportation  

SEAF  in  Bangladesh  

�  Macroeconomic,  political,  infrastructure  constraints  

�  Awareness  of  risk  capital,  and  reluctance  to  share  control  

�  Transparency,  accountability  and  compliance  standards  

�  Regulatory  issues    �  Exit  risk  

16  

www.seaf.com  

Case  Study:  SOLARIC  

�  SOLARIC  is  a  renewable  energy  technology  company  that  develops  solar  power  systems  primarily  for  rural  off-­‐grid  markets  

�  SEAF  made  its  initial  investment  in  May  2011;  commenced  operations  in  Jul  2011;  follow-­‐on  investment  in  Sep  2012  to  support  growth  

�  Within  the  short  span  of  its  operations,  SOLARIC  has  generated  strong  financial    and  operational  results:  ¡  LTM  revenues  of  ~USD  2.5mm  as  of  Sep  2013  ¡  Reached  over  6,500  rural  households  in  450  villages  ¡  Generated  over  325  kW  of  clean  solar  power  ¡  Replaced  over  26,000  kerosene  lamps  ¡  Reduced  over  5,200  MT  in  CO2  emission  ¡  SEAF’s  financing  and  global  network  has  facilitated  

SOLARIC’s  regional  expansion  

Genera&ng  clean  solar  power  for  rural  off-­‐grid  markets  in  Bangladesh  

www.seaf.com  

Contact  

�  SEAF  Headquarters  1500  K  Street  NW,  Suite  375  Washington,  D.C.  20005  (202)  737-­‐8463  contactus@seaf.com    

�  SEAF  Bangladesh  Office  41  Gulshan  North  C/A,  4th  Fl  Dhaka-­‐1212,  Bangladesh  (880-­‐2)  881-­‐8033  seaiv@seaf.com      

Angels  &  Coffins:  Inves/ng  in  Oasis  Coffins  

 Jerry  Nicholson  Tinder  Capital  

Angels and Coffins- Investing in

Tindercapital

•  From an investor to a matchmaker •  OPEN Accelerator

Oasis Coffins

How

•  Met the entrepreneur in 2005 •  Returned to Bangladesh in 2010 •  Involvement of Panahpur

Why

•  Liked the entrepreneur •  Liked the product •  Liked the vision and values •  Saw potential •  Saw a role

What

•  Prepared a business plan •  Restructured the Balance Sheet •  Involved Panahpur •  Invested •  Supported the entrepreneur •  Prepared another business plan •  Invested again •  held our nerve

Successes

•  Oasis secured the type of investment it needed •  Oasis Coffins has turned around •  Creating jobs and opportunities •  Good chance of making reasonable ROI over the long

term (10 years) •  Working well as a team •  Great fun

Lessons

•  Give it time •  Don’t take control •  Understand and communicate impact •  Angel’s are needed and can work well with institutional

investors •  Lots of opportunities for angel investing in Bangladesh

Angel  Investor  Open  Floor  

Game  Time!  Fundraising  Fun  

Rules  of  the  Game  

Startups:  •  15  second  intros  for  Start  Ups  •  30  minute  “shopping  for  investors”  •  20  lakh  min  funds  raised  required  for  startup  to  

be  considered  for  finals    Investors:  •  5  checks,  investor  25  lakh  each  •  Min  check  size  –  1  lakh  •  Max  check  size  –  10  lakh  

Understanding  Investment  from  an  Entrepreneur’s  Perspec/ve:  

NewsCred’s  Experience  

Iraj  Islam  Iraj  Islam,  CTO  &  Co-­‐Founder  

NewsCred  

Local  Context  from  an  Interna/onal  Investor:  

A  Global  PerspecTve  on  InvesTng  in  Startups  in  Bangladesh  

Tanveer  Ali  ExecuTve  Director,  InflecTon  Ventures  

 LOCAL  CONTEXT  FROM  AN  INTERNATIONAL  INVESTOR  

 A  Global  PerspecTve  on  InvesTng  in  

Startups  in  Bangladesh          

www.inflecTonventures.com  

Background  Singapore-­‐based  early-­‐stages  tech  fund  

 14  investments  to  date    1  exit  –  GateGuru  was  acquired  by  TripAdvisor    75%  Enterprise,  25%  Consumer    Finance/TransacTons/Marketplaces,  Space,  Video  AutomaTon    Typically  invest  in  companies  raising  their  first  $1M  

   Work  with  companies  where  we  can  add  value  in  markeTng  and  finance  

InvesTng  Early  

Family/Friends    &  Incubator  

Where  Inflec/on  Invests  

Series  B,  C  &  D+  Rounds  

Series  Seed  &  A  Rounds  

What  We  Look  for  Globally  Amazing,  moTvated,  dynamic  founders  –  what  makes  a  great  team?  What  elements  are  required?  Are  iteraTons  or  evoluTons  okay?    Great  ideas/products/services/companies    OpportuniTes  –  markets,  spaces,  verTcals,  pre-­‐ve_ed  deals    ValuaTon  –  revenue,  road  to  profitability,  projecTons,  how  much  more  money  needed  to  scale,  burn  rate          

Adjus/ng  for  Local  Context  Deal  flow  –  access  to  deals,  limited  deal  flow  affects  comparables?    Past/current  investors  –  level  of  sophisTcaTon,  what  they  bring  to  the  table,  do  they  exist  in  newer  markets?  Different  definiTon  of  ‘value-­‐addiTon’?    Market  sizing  –  accuracy  of  sizing,  market  maturity,  variance  in  key  indicators/data    Environment  –  government/bureaucraTc  concerns,  access  to  informaTon,  tax  regimes/tax  breaks,  compensaTon  limitaTons  (ESOP)      ValuaTon  –  B2B  vs  B2C  premiums,  lack  of  exit  scenarios?                

What  We  Have  To  Be  Mindful  Of  Local  context  (and  possibly  cultural)  sensiTviTes  that  could  affect:    

 Success  of  product/idea/service/company        Work  ethic  –  definiTon  and  expectaTons  of  an    entrepreneur  differ  across  the  globe        Ego  –  percepTons  of  success,  valuaTon,  etc  

 NegoTable  vs  Non-­‐NegoTable  –  what  deviaTons  are  acceptable  and  what  aren’t    

Enriching  Your  Perspec/ve  

Samad  Miraly  CEO,  Empty  Ventures  

Final  Lightening  Round  Pitches  

Bongo  

Ahad  Bhai  ahadmbhai@gmail.com  

 Navidul  Huq  

huqnavid@gmail.com    

Tap into the Future with Bongo

Discover new revenue streams.

Engage the audience of tomorrow, today.

WHAT IS BONGO?

Bangladeshi entertainment - on demand.  

Watch any Bangladeshi show, movie, music video, or commercial, at your convenience.    

Earn extra money from your existing content.  

We give content providers a way to generate extra income.    

Anytime. Anywhere.      

We display our content across multiple platforms and devices

www.bongobd.com

WHAT ARE WE TRYING

TO DO? The Problem:  

There is no central source for Bangladeshi content. The content that is available is poor quality and unlicensed.  

The Solution:  

We are providing a platform to connect content producers and viewers worldwide.    

Target Market:      Bangladeshis across the world. Why We Will Be Successful:      

We are dreamers. We are doers. We never give up. What We Are Looking For:   - People to join our team! -  Technology Partners - Collaborators

www.bongobd.com

Buckets  Engineers  

Mahenaz  Chowdhury  Mahenaz_chowdhury@yahoo.com  

+■  I am Mahenaz Chowdhury, CEO & Founder of Buckets Engineer and

we are a subscription based educational development service company for autistic children.

■  It is a hub to connect technology to education through a process driven by a computer-aided platform that host applications designed for autistic children skills development.

■  Problem:

■  Trying to fill the gap that exists in educating autistic children through technology

■  Non-existence of a unified education system for autistic children

■  Lack of an integrated community

+ Core offerings: ●  Unified and a fun education system in all schools in Bangladesh for autistic

children ●  Create a community of educators, parents, healthcare professionals ●  A tool for diagnosis ●  Unified scoring & evaluating system ●  Virtual Marketplace

Target Market & Milestones : ●  Year 0: Start-up & Development time ●  5 Social welfare organizations & educational Institutions for autistic children’s

development in 1st year; by 2nd year : 20 ●  50 general schools in Dhaka in 1st year; by 2nd year: 150 ●  Year 3: Expand to other sectors in BD

Product Model

App2

Wouldn’t it be great if you could be an agent of positive change in a child’s life?

Then invest in a smile… invest in Buckets Engineer

LightCastle Partners

Bijon Islam bijon.islam@lightcastlebd.com

Why  ?:  The  Analy/cs  Market  -­‐  Pain/ng  the  Landscape  

•  Huge  amounts  of  Data  available  in  every  Economy,  Sector  and  Organiza/ons  o  90%  of  the  Data  in  the  world  today  has  been  created  in  the  last  two  years    

o  Growing  Exponen/ally    

 

•  Correctly  Leveraged  Data  becomes  a  powerful  Strategic  Assets  to  Drive  Business  Results  

 

•  Data  Architecture  Technologies  are  available  at  CompeTTve  Pricing  

•  Biggest  Challenge  is  the  absence  of  “Data  Scien/sts”  

 

•  Global  Data  AnalyTcs  Market  is  currently  valued  at  USD  300  billion  (Mckinsey  2012)  

 

•  Local  Corporates  -­‐  mainly  Telcos,  Financial  InsTtuTons,  FMCG  ,  Supermarkets,  Digital  MarkeTng  

o  Small  and  Medium  Businesses  -­‐  moving  to  InnovaTon  AccounTng  and  Data  Based  Decisions  

•  Size:  BDT  10  Cr  /year,  opportunity  to  make  this  30+  Tmes  within  5  years    

 

 

•  Business  Analy/cs  Bridge  o  CreaTng  the  Linkage  Between  “Data”  and  “Good  Decisions”  

 

•  PosiToning  -­‐  An  emerging  market  specialized  Business  Analy5cs  Firm  

 

•  The  Business  Analy/cs  Pie  

 

 

 

 

 

What  ?:  Adding  Value  to  the  Customers  

We  combine  market  informa5on  with  business  analysis  to  create  Strategic  Intelligence  

•  Sample  Snapshot:  Periodic  Business  Intelligence  Tools  

 

 

 

 

 

 

 

 

 

 

•  5  Partners  -­‐  CiT,  N.A.,  HSBC,  SCB,  Deloi_e,  Alif  AMC,  BYLC,  ITES  (FuncTonal  ExperTse  &  Management  Depth)  

http://www.lightcastlebd.com/

How  ?:  Product  Sample  and  The  Team  

Frugal  Solu/on    ●  Offer-­‐Bid  Contract  Matching  ●  Long,  Short  and  Covered  Summary  ●  Instant  Live  Contract  Net  Value/  Margin  ●  Monthly  automated  Financials  ●  Kept  and  Shared  in  Cloud  

Bangla eBook Apps

Publisher  of  Ebooks  working  with  top  authors  in  Bangladesh    

Bangla eBook apps

Features  

•  Single  app  with  in-­‐app  purchase  to  access  all  ebooks  of  each  author  •  Custom  font  rendering  for  indic  font  •  Best  industry  standard  UI  •  New  book  noTficaTon  message  •  Customized  for  subscribers  •  Advanced  Dashboard  for  Publisher  &  Author  

Return  on  Investment  

Avg.  Expected  Yearly  Revenue          =  500  (eBooks)  X  2.99$  (avg  rate)  X  4  (devices)  X  50  (Qnt)          =  $0.299  m  =  BDT  23.90  million    

If  eBook  publisher  get  40%  of  total  revenue,    then  BDT  9.6  million  yearly!  

LFD0606-­‐0995    

Total  producTon  in  1  year  =  1000  eBooks    

TargeTng  Bengalis  through  marketplaces  Yearly  Expense  for  eBook  =  BDT  7.20  million  

Our  exisTng  contracts  

LFD0606-0995 Dr. Muhammad Zafar Iqbal Anisul Hoque Imdadul Haq Milon

eBook app Launching events of the Honoroable Prime Minister, Anisul Hoque & Dr. Muhammad Zafar Iqbal

Adseee  

Mohd  Fahad  Ifaz  Ifaz.nsuyes@gmail.com  

The problem

●  There is a huge gap between businesses and media owners (newspaper,Magazines,Billboards etc)

●  There is lack of information on traditional offline media options

●  No easy answers to Where,Why and How ?

THE

Adseee.com

Analytics on location, target viewer,subscription

Advertisers can Search and buy Newspaper space ,billboard space other offline media option

Media owners can list their available space Online Bidding for prime spots

The online marketplace for buying outdoor and print advertising

Market There are around 467 registered newspapers and

magazines in Bangladesh

•  216 in Dhaka and 251 outside Dhaka Almost 30% of the population reads newspaper or other

printed magazines

In 2010-11 43% of total media spending went to newspapers and almost 10% for outdoor advertising

There are 3000+ billboards in Dhaka city most owned by 10-12 agencies

The total outdoor and newspaper market was estimated to be 1500 crore in 2011

Source; Nielsen media study,Ryans archive ,Bangladesh brand forum

Closing  Remarks  &  Introducing  the  Angel  Network    

Mustafizur  Khan,  Founder,  Startup  Dhaka    

Fayaz  Taher,  CEO,  Fortuna  

Thank  you!  

NewsCred  HQ  |  November  20,  2013  |Banani,  Dhaka