Otsi.ee Company Presentation Keith Siilats. Otsi.ee is a meta-engine Bridging paper media and...
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Transcript of Otsi.ee Company Presentation Keith Siilats. Otsi.ee is a meta-engine Bridging paper media and...
Otsi.ee Company PresentationOtsi.ee Company Presentation
Keith Siilats
Otsi.ee is a meta-engineOtsi.ee is a meta-engine
• Bridging paper media and Internet by making searches in newspaper archives fee based
• Making net versions of newspapers profitable• Providing a database of internet users (bank
details, credit cards)• Additional activities based on the database
(auctions, internet shops)• Real-time translations allowing English
language queries
Key investment attractionsKey investment attractions
• Rapidly growing sector• Monopoly market segment• Strong links to existing media for free
(xxl.ee, all newspapers)• Very little actual competition and first mover
advantage• Experienced creators• Very little initial investment
Estonia and its internet marketEstonia and its internet market
– The structure of the internet business market
• Rapidly growing (100%+)• Aim: to turn technical expertise into simple usage• Highly competitive
– Factors affecting the development of the IT sector
• Economic growth (rapid in Estonia)• Education level (extremely high)• Computer penetration (comparable to western levels)• Cost of use (rapidly falling)
Current Estonian usersCurrent Estonian users
• Target group - people who use internet for work and students who use internet more than once a week - 120 000+ growing 60% a year (oct 98 BMF)
• 53% read online newspapers
• 2% use internet shops
• 42% have an internet bank account
• 8000 people have paid for goods in the net, but 43 000 have registered to an online site
• 59% read more newspapers than an average Estonian
• 2000 read epl.ee daily, 850 search information
• 7000 and 3000 for Postimees.ee
• Otsi.ee beta attracts ~5 new registered users a day without any advertising
Competitive AnalysisCompetitive Analysis
Competitors• Newspapers themselves• www.ee and www.neti.ee
Strengths• Newspapers - existing copyrights, extensive finance• www.ee - Existing market share
Weaknesses• Newspapers - no flexibility, expertise and willingness• www.ee - no connections to newspapers, not a comprehensive
archive, no registration modules
TechnologyTechnology
• Description– SQL databases with Glimpse indexing, Perl
scripts generating HTML front-end– English online translation service from ibs.ee
• Strategy– simultaneous searching of all newspapers and
charging (1 month)– Reaching more than 500 searches a day and
10000 users (1 year)– Development of additional services and selling of
the database (1 year)
Pricing and marketing policyPricing and marketing policy
• Search is free, viewing of the actual article costs money
• 70% of the revenues from articles goes to newspapers, 20% of the other services (preliminary contracts)
• Charging – Internet bank accounts, bills by email, 900 phone
numbers, extra fee for paper bills– Per article and per month plans
Description of the businessDescription of the business
• Legal structure - AS Technocholics representing a Delaware company. No tax obligations for internet usage.
• Operational Structure - Management, Marketing (zero.ee) and Technology (javalogics.com) Estdata provides internet connection and receives 10% of profits
• Customers • Professional researchers and companies
• Media monitoring
• Students
• Occasional interested parties and foreigners
Sales and MarketingSales and Marketing
• Direct marketing from newspapers websites (the search box at epl.ee redirects to otsi.ee)
• Free ads in newspapers (they get 70% of revenue)
• Search engine registration • Media hype for new product• Banner exchange with yahoo• Referral program (10% for referred
customers)
EDUCATION1996 - 1999 Trinity College, Cambridge, MA/ BA (Hons) in Economics. Special courses in Statistics, Banking and Finance.1995 - 1996 The King's School, Ely, Cambridge1994 - 1995 Impington College, Cambridge1985 - 1995 21. Keskkool and Pääsküla Keskkool, Tallinn, Estonia
Academic Awards: 1996 - 1999 Cambridge University, Overseas Trust Award (£6,000 pa).Publications: 1997 “Should Estonia devalue its currency” Eesti Päevaleht
Languages: Estonian, English, Russian, Finnish, German
Computing Skills: Java: 4-week university course. Wrote a statistical analysis tool (50 000 lines). C/C++/Perl/TCL/CGI: 4-week university courses.HTML/JavaScript: taught salesmen how to maintain the webpage of Volvo. Databases: Microsoft Access programming/SQL
Interests: Founder and External Officer of the Cambridge University Baltic Society, Certified PADI Scuba diver
WORK EXPERIENCE1998 Talinvest Suprema Securities www.tss.ee
IT, Fixed income, and Risk Management Created a statistical information service (in Java, SQL) for internal use, Priced and sold bonds and derivatives to clients Researched the Estonian macro economy, Built a model that can predict GDP growth for a year
1996 - 1998 A/S Info-Auto, (Volvo cars and Princess motoryachts representative in Estonia)Financial Advisory, IT Participated in several international negotiations, lately in the franchise set-up negotiations with Princess motorboats in
Plymouth. Developed the future IT plan and budget, in co-ordination with management. Size of the budget: $70 000 p.a.
1997 - 1998 The Embassy of the Republic of Estonia in LondonWebmaster (www.estonia.gov.uk)
Key Employer: Keith SiilatsKey Employer: Keith Siilats
Financial ProjectionsFinancial Projections
– 5 EEK a search, 50 EEK for translated documents– 50 EEK a month for individual subscription– Multiple subscriptions from companies– 500 searches for 22 days with half being from
subscribers (10 000 searches a month)– 1000 subscribers– Total Cash flow 100 000 EEK– 80% away to newspapers and Estdata– 50% revenue from extra services– Total revenue (0.2x100+0.5x100)x12 months = 1 milj
EEK– Maintenance programmer costs 100 000 EEK a year
Related DocumentsRelated Documents
• Company: www.otsi.ee• English interface
www.otsi.ee/indexeng.html• Extra Investor information and this
presentation www.otsi.ee/investor• Keith Siilats’ page www.ieg.ee/keith/demo