Investors & Opportunities by StartupBashBD
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Investors & Opportuni/es NewsCred HQ | November 19, 2013 |Banani, Dhaka presents
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“Investors & Opportunities” is about connecting investors & entrepreneurs so they can better understand each other’s need within the local context. Sessions will cover stories about successful investments and raising funds along with interactive sessions to put what we’re learning into action This event was held at NewsCred's office in Dhaka, Bangladesh on November 20, 2013
Transcript of Investors & Opportunities by StartupBashBD
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 [email protected]
� SEAF Bangladesh Office 41 Gulshan North C/A, 4th Fl Dhaka-‐1212, Bangladesh (880-‐2) 881-‐8033 [email protected]
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
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
+■ 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
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
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
