blood, sweat and tears until priceza today
DESCRIPTION
I'm invited to be a Guest Speaker for Entrepreneurial Finance Course at Bangkok University School of Entrepreneurship and Management. The topic is about my entrepreneurial experience and fund raising story of Priceza.TRANSCRIPT
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Blood, Sweat and Tears until Priceza Today!
1 November 2014By Thanawat Malabuppha (Wai)
CEO & Co-Founder of Priceza
Entrepreneurial FinanceBangkok University, School of Entrepreneurship and
Management
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Brief intro about me
Background in Computer Engineering & Marketing
• Undergrad, Computer Engineering, Chulalongkorn
University
• Exchange Student at Stanford University
• Grad, in Marketing from MIM Thammasat Business
School
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Brief intro about me
Professional Background
• Management Committee at Thai Ecommerce
Association
• Part of the working group for Digital Economy Project
• CEO & Co-Founder of Priceza
– Over 4 Million Active Visitors per month
– CyberAgent Ventures invested in 2013
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SearchProduct Name
4 Millions Visitors/monthOver 2 Millions Product Items
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Aims to be NO.1 Price Comparison Shopping in SEA
700K Visitors/month
4 M Visitors/month
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15 Years of My Journey
2014: EntrepreneurCEO of Priceza
2000: Undergrad Student
BLOOD, SWEAT &
TEARS
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YEAR 2000 - 2004 Learning What I Love
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Year 2000 - 2004
• Follow Your Heart– Doing & Learning What You Love!– Passionate in everything to do with
Computer
• Studying in Computer Engineering, Chula
• Exchange Student at Stanford University
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YEAR 2005 - 2006 Starting up My 1st Venture
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Year 2005 - 2006
• Initiated an idea about Price Comparison Website called Shopsanova.com
• Business Model is not clear!• Focus only on product and it turned
out like a shit!
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YEAR 2007 - 2009 Pursuing Marketing Knowledge &
Experience
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Year 2007 - 2009
• 14 February 2007: Shopsanova Go Live
• MIM Grad with NO.1 Top GPA 3.79• Runner-up Award, New Venture
Championship (NVC) in USA
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YEAR 2009 Dream High. Fight Hard. Never
Give up!
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Year 2009
• Shutdown Shopsanova.com !!!• Plan to launch a new site called
Priceza.com• Market Validation
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Market Validation
• Focus on the real pain (problem) that you are going to solve
• Know the best way to solve that pain– Clever– Better– Lower Cost
• Make sure that the market is valid and huge
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“You don’t need to raise funding to be successful.”
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Why finance matters
• A start-up can’t survive without sufficient finance
• There are various sources of finance available for new businesses
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Sources of Financing
• Internal Sources (Bootstrapping)– Founder finance (personal sources)– Retained profit– Friends & family
• External Sources– Bank loan– Bank overdraft– Trade credit– Business angels– Venture capital
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Key considerations for financing
• How much finance is required?• When and how long the finance is
needed for? (this links in with the cash flow forecasting)
• What security (if any) has to be provided?
• Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return of the investment?
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Personal sources of finance (Bootstrapping)
• Various types of personal financing of the entrepreneur– Cash and investments– Personal credit cards– Putting time into the business for free (or for
future pay)
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Why Bootstrapping is important
• Cheap (e.g. compared to a bank loan)
• Entrepreneur keeps control over the business
• The more the founder puts in, the more others will invest– There are a few companies that
bootstrapped for a while until taking external investment, like MailChimp, AirBnB and Priceza ;)
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YEAR 2010 - 2012 Go Homerun or Go Back Home!!!
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Year 2010
• Jan 2010: Priceza.com Go Live• Doing everything myself!• Sale is NO.1 Priority!
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Year 2011
• Break-even• Got contact from XXXX and XXXXXX• We decided that external funding can
be a driving force for Priceza.
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Year 2012
• Got contact from XXXXX and several VCs– Singapore– South Africa– Japan– Thailand–Malaysia– Russia
• Talk to a lot of VCs to compare their offerings
• Got 1st Term Sheet– Oh Put Option!
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YEAR 2013 Close Seeding Funding
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Year 2013
• Sep 2013: Close deal with CAV– Our 2nd Term Sheet– Due Diligence– Deal Structure:• New Money vs. Buying Out• Pre-Money Post-Money
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How Start-up Funding Work
Reference from Funders and Founders
By Anna Vital / May 9, 2013
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How Start-up Funding Work
• Every time you get funding, you give up a piece of your company.
• The more funding you get, the more company you give up.
• That ‘piece of company’ is ‘equity.’• Everyone you give it to becomes a
co-owner of your company.
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Splitting the Pie
• The basic idea behind equity is the splitting of a pie.
• When you start something, your pie is really small. You have a 100% of a really small, bite-size pie.
• When you take outside investment and your company grows, your pie becomes bigger. Your slice of the bigger pie will be bigger than your initial bite-size pie.– When Google went public, Larry and Sergey
had about 15% of the pie, each. But that 15% was a small slice of a really big pie.
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Idea stage
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Co-Founder Stage
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The Family and Friends Round
5% of Share
for 15,000$
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The Angel Round
Valuation of the company = $1M Pre-MoneyAngel Investment = $200K
Post-Money = $1M + $200K = $1.2M
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Venture Capital Round
Valuation of the company = $4M Pre-Money
VC Investment = $2MPost-Money = $4M + $2M = $6M
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IPO
100% of Nothing is a lot less than
17% of a BIG Company
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YEAR 2014 Accelerating Growth
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Year 2014
• Accelerating Growth• Expanding to 4 more countries
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Our Growth in Shopper Visits (Traffic)
2553 2554 2555 2556 2557 2558 -
10
20
30
40
50
60
70
4 9
20
30
40
60
+125%
+122%
+50%
+33%
+50%
Thailand Site Shopper Visits (Million Visits)
2010 2011 2012 2013 2014 2015 (Est.)
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Priceza Grand Sale
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Priceza Grand Sale