Adrenax Capitaladrenalie in your dreams

Early&seed stage venture capitalStartup factory

Executive Summary

Augusto CamargoSao Paulo, Brazil

June/2007

Agenda• Problem• Solution• Business Model• Underlying Magic• Marketing and Sales• Competition• Management team• Financial Projections• Current Status

3 years: No M&As. No Innovation.

1. In 2-3 years Brazil will not have enough (startups) companies for providing innovation and M&As.

2. Big Companies have food for the next 2-3 years.

3. Consumers will have few options of pure brazilian-like revolutionary products and services.

Agenda: Problem

Context for Startups in 2007• Many M&A and IPOs of existing IT

companies.• No VCs in Brazil for seed money.• No angels (pros).• Market focusing only on private equity• Incubators?• None creating high volume of Startups

Agenda: Problem

Adrenax Capital• Early&seed stage venture capital and

startup factory:– Mantra: To grow smart startups.– Vision: We believe that the ultimate place

for innovation in XXI century are startups.– Mission: To grow startups to feed big

companies and market innovation.

Agenda: SolutionBig Companies Private Equity Startups

Show me the money!• Our exit plans for the Startups are M&A

and Founder(s) buyout in three years.• If the startup is not sold in three years

(plan A) for a bigger company, by contract, the founder(s) must buy-it-out and pay back the initial investiment plus a small interest (plan B).

Agenda: Business Model

3 Steps• Step 1: Find a innovation pain or gain

(first). We are in a cloud of big companies looking for innovation.

• Step 2: Create the Startup. We have a framework for Startup factory. We have access to the 10 of the top 20 brazilian universities.

• Step 3: Sell the Startup. Our board and partners are our deal finders and makers.

Agenda: Underlying Magic

Trouble Sources• For entrepreneurs:

– Pubs owners – Drug dealers– Trainee programs

• For deals:– Internal R&D areas– Macro-economic events, journalists and

Research firms that change winds direction– Other Startups

Agenda: Competition

A (quite) stable triangle• Augusto Camargo, CEO• Patrizia Parenti, CFO• Gil Giardelli, vice-president

Agenda: Management Team

Now.• Startups:

– Startup factory framework tested– 9 companies founded– 8 companies @ break-even– 1 merge and 1 company sold

• Entrepreneurs:– 3 partnerships with universities closed

(UFSCar, FGV e FAAP)– 2 events planned for prospecting BPs

Agenda: Current Status

We believe in the...• “The art of start” – Guy Kawasaki• “Blue Ocean” – Kim & Mauborgne • “Know-how” – Ram Charam• “Getting Real” - 37signals • God