building your startup like a multinational - twist rome
TRANSCRIPT
Building your startup like a multinational!
26/5/2015Roma
Startups!
We want startups!
“It will be small businesses and web startups that will create the ideas and jobs that we need for our economic growth. No industry, no SME, no government can maximise its performance and competitiveness without going digital.”
https://ec.europa.eu/commission/2014-2019/ansip/blog/talent-drive-innovation-making-most-europes-tech-startup-potential_en
European data
What is a startup?
A startup is an organization formed to search for a repeatable and scalable business model.Steve Blank
http://steveblank.com/2010/01/25/whats-a-startup-first-principles/
It does not mention
• Being a super star• Risking your life and sanity• Being milked along the way• Creating jobs and saving the
European economy!
@capenterprise 13
…to start you need..
Talent Money
Time
Money Talent
Time
Money
Where do I find money?
WHERE RICH PEOPLE ARE!
@capenterprise 21
Investment Essentials
Round Amount Purpose London Pre-Money Valuation Guideline
Source of Investment What investors like to see
Pre Seed £25K-£150K (SEIS eligible)
Assemble Team/ Build & Test MVP/ Proof of Concept R&D
Zero- £500K Own Money/ FFF/ Crowdfunding/ SEIS Funds/
TSB
Unfair Advantages
Seed £150-£350K BETA Test/ Launch into Beachhead/ Proof of Product
Solution Fit
£500K-£1.5m Business Angels/ Crowdfunders/Seed VC's/
Co-Investment Funds
SMART Team- Early Evidence of Product/
Solution Fit- Validating customers/ users
Super Seed (Bridging
round)
£500K- £1m Working Business Model/Proof of Product/
Market Fit/ Demonstration of Growth
£1.5M-£4m Super Angels/ Seed VC's Product Solution FIT Proved- Early
Indications of Product-Market Fit ( i.e.
revenues)Series A £2m-£15M+ Scale £8m- £50m VC's/ Family offi ces and
Corporate VenturesRevenues & METRICS
proving scalability.
POC P/S Fit P/M Fit
SEIS Supeseed
VC
What stage is your business at?
FF
Investors tend invest for transitions..
@capenterprise
Seed Enterprise Investment Scheme-SEIS is a tax break launched in April 2012 for UK tax payers to encourage them to buy shares in start-up companies registered in the UK The Facts: • SEIS investors can input £100,000 in a single tax year rising to a maximum £150,000
over two or more tax years in to a single company• Investors cannot control the company receiving their capital• Investors pick up 50% tax relief in the tax year the investment is made, regardless of
their marginal rate.• In the 2013-14 tax year, tax payers can roll 50% of a chargeable gain in the tax year
in to a SEIS with a full capital gains tax exemption (another 14%)• The business must be a start-up company -registered in the UK within 2 years of
claim. • The company must not employ more than 25 workers.• The company must have assets of less than £200,000.• The company has to trade in an approved sector – generally not in finance or
investment, for example, a property company raise capital as a SEIS.
SEIS is…… “a game changer”?
23
@capenterprise 24
7 Types of Early Stage Investors in London Market
1. Crowdfunders/ Platforms2. Tax Relief Seeking SEIS/EIS Funds3. Government Backed ECF’s4. Traditional Angel Syndicates5. Super Angels6. VC’s 7. Strategic Investors ( Corporate Venture)
Want to find out more
People
Where can I find A developer to build my app?
The developer
Most expensive people in the (tech) world!
Acquisition cost per employee, from www.waxy.org, April 2012
Wha
tspa
pp
$345M
The back-end guy!
Money Talent
Time
.
TAKE A GLOBAL VIEW ON TALENT
http://research.odesk.com/visualizations
http://itflow.biz/highest-paid-software-engineers-countries-map/
YOUR BUSINESS MODEL
http://www.forbes.com/sites/davidcoursey/2011/10/20/dropbox-feature-or-application-why-it-matters/
http://pandodaily.com/2013/02/01/focus-on-the-feature-how-doing-one-thing-well-benefits-dropbox-app-net-and-consumers/
http://measuredmass.com/2012/10/06/google-homepage-size/
http://techcrunch.com/2011/11/11/start-making-sense/
http://gigaom.com/2013/12/20/2013-was-the-year-of-freemium-games-but-2014-may-not-be/
People pay too much, always the same mechanics….BUT it’s human!!!!
App Annie data
Peak
Enjoy becoming
better everyday
Numbers
50B downloads
9.5B downloads
5B downloads
Q1’13
Google Play led the iOS App Store in downloads by about 10% in Q2 2013 and Google Play has since expanded that lead to about 25% in Q3 2013… Although the iOS App Store generated about 2.1x the app revenue of Google Play in Q3 2013, their lead has shrunk since Q2 2013 when their revenue was about 2.3x higher.(source: Appannie, October 2013)
Exits
TAKE AWAY!
Money Talent
Time
