Inventure growth slides 2014 05 (1)
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Transcript of Inventure growth slides 2014 05 (1)
6/18/2014
1
Future Growth June 17, 2014
15 FINNISH ICT COMPANIES
2
0
500
1 000
1 500
2 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net Sales EUR 1520m in 2013
10-year growth 6.0%
4-year growth 1.0%
Market Cap Development
10-year return 1.7%.
0
500
1 000
1 500
2 000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
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GROWTH POSITIONING
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0,0
1,0
2,0
3,0
4,0
5,0
6,0
-10% 10% 30% 50% 70%
AVERAGE EV/S MULTIPLES VS CAGR GROWTH
Proven Scalable / Self-serve SaaS
VC A/B rounds 2014: EV/S 4-5X
Proven SaaS / Software VC B-
rounds 2013: EV/S 2.3 – 2.7x
Listed ICT companies average
EV/S = 1.7
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GROW FAST OR DIE SLOW
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GROWTH PARADIGM, software
5 Source: McKinsey, 2014
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LETS BUILD SMTHING BIG FOUR STAGE MODEL
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STAGE 0
7
Vision
Entrepreneur
Innovation
Product Lovers
Constant Renewal
Excitement
Trend riding
OPPORTUNITY
FOR REVOLUTION
Startup Sector 5-yr Est. CAGR (2012-2017)
Software 29%
Hardware 30.1%
Med Tech 6.3%
Big Data 34.2%
Dev. Platforms 17.9%
START-UP TRENDS
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Trends Trends
Software Software
Hardware Hardware
Med Tech Med Tech
Big Data Big Data
Developer Platforms Developer Platforms
SaaS, Enterprise, Big Data, Ed Tech, & Media Sharing
Internet of Things, Natural UI, 3D Printing, Wearable Tech
Patient/Doctor Platforms, Pharmaceuticals, Medical Devices, & Healthcare Services
Search, Cloud Computing, Data Storage, Data Mining, & Machine Learning
APIs, VoIP, Code sharing/repositories, Platform as a Service
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STAGE 1
10
Vision => Strategy, G-to-M
Entrepreneur => Management team, Execution
Innovation => Road-map, IPR, Scalability
Enablers Venture Funding
Business Partners, Corporate Support
Serious customer & user traction
100% focus on international set-up
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STAGE 2
12 Adapted from McKinsey, 2014
The right market = The BIG one
Monetization model enabling a full scale up
Rapid adoption, massive roll-out. Multiple customers instead
of one big one
Leadership capability, systems, ecosystem.
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STAGE 3
13 Adapted from McKinsey, 2014
Expansion into new territories, dig everywhere.
Acquisitions with 100% strategic future fit, not the ones with
mere resource add-ons and size enhancers.
From Product to Platform.
REPEATING THE FINNISH B2B SUCCESS
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TEKLA – acquired by Trimble for 400m in 2011
STONESOFT – acquired by McAfee/Intel for 300m in 2013
NAPA – acquired by ClassNK for 53m in 2014
DELTAMARIN – acquired by AVIC for 40m in 2012
Sensinode, Applifier, Rightware, Miradore…
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MOST LOW-TECH. AIRBNB.
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In 2007
… roommates Chesky and Gebbia
made their living room into a bed
and breakfast, accommodating
three guests on air mattresses and
providing homemade breakfast.
In 2014
500 000 places for rent
33 000 cities, 192 countries
Valuation USD 10 billion …
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PRIVATE MONEY
THE FUTURE GROWTH ENGINE
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How to pitch to VC’s
Pre-seed Seed Start-up
Early-stage
Expansion
Target / Exit
Idea generation & formulation
Business plan
Company establishment
Pilot deals, references
10-50 employees
Strongest growth phase
Venture capital funding
International, GLOBAL
Solid IPR
500+ employees
Worth 1000m
ENTREPRENEURSHIP BOOSTED BY
VENTURE CAPITAL
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10 elements to take care of
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I What do you actually do? - Which problem are you solving / what solution are you offering - Why do you do it - Why it’s important to potential customers - What is your market potential mass / niche II Where is the huge potential? - The end game has to have huge potential - Most companies will fail but if there is no such opportunity... - Product/platform - Roadmap for the future potential
10 elements to take care of
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III True market size - Market has to be there - Big enough to be interesting - You have to know your total addressable market - Segments of the market IV Secret ingredient – People - People’s business – in early stage most important element - No one man shows - The role of each member – not just CVs of past achievments - Strenghts & weaknesses – self awareness
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10 elements to take care of
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V Go-to-market Strategy - Minimum viable product - Path of least resistance to customers - Channel strategy, you have to know the dynamics - Who has the control of the entry VI The stage where you are - Be honest - Have you already gained the proof & momentum - KPI’s to support this - Helps to make the decision
10 elements to take care of
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VII Real competitive advantage - Technology/IP, first mover, unique business model - Long term understanding - There are always competitors - All ends up to execution VIII Show the product - Demo, easier to understand - VC’s are not experts in every industry - Focus where it solves the problem - UI/UX
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10 elements to take care of
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IX Financials - Believable projections - Key drivers - Both revenues & costs - What you actually are going to do with the money X The deal - How much money you are going to raise - What’s the plan for future financing - Cap table - Idea of the valuation Finding the perfect partners for financing is crucial, but not easy!
Opportunities of tomorrow
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STAGE 3
Adapted from McKinsey, 2014
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Adapted from McKinsey, 2014
Future Growth