Embed Size (px)
Citation preview
191OCTOBER 19, 2013. Vijay and Shekhar
DESI PAISA OR PARDESI CAPITAL
Please leave your questions as a comment or tweet with tags
#NPC2013 or #DesiVsPardesi
192OCTOBER 19, 2013. Vijay and Shekhar
STRUCTURE OF THIS TALK
HOW TO BUILD COMPANIES THAT HAVE GREAT….
TEAM MARKET BUSINESS MODELEXIT VALUE
193OCTOBER 19, 2013. Vijay and Shekhar
$ 2 0 0 M
Exit Value
194OCTOBER 19, 2013. Vijay and Shekhar
Size of the Market(India Jewelry)
$64B+
Addressable Market(Studded Jewelry)
$8B+
Target Market(Organized Jewelry)
$800M+
TARGET MARKET SIZE?TO GET TO $200M+ EXIT COMPANY
Size of the Market(Transportation)
$15B+
Addressable Market(Taxi booking)
$3B+
Target Market(Top 10 cities)
$300M+
e.g.BlueStone e.g.TaxiForSure
195OCTOBER 19, 2013. Vijay and Shekhar
Margin
Gross Margin (65% for GOOG.Operating Margin (25% for GOOG.
1.5% for AMZN)
100M+ Revenue
e-commerce.Niche tech service providers.
40M+ Revenue
Non-subscription business.Field sales force.Medium margin.
Massive Usage
20%+ of online India.Weekly Interaction.Growing like weed.e.g. WhatsApp
Deep IP/Tech
Few Anchor Customers.Protected IP through Patents.Has global appeal.e.g. HealthCare Device Co..
$20M+ Revenue
Enterprise SaaS.Online/Offline business.Good operating margin.Growing at 30%+.
REVENUES FOR GETTING $200M+ EXIT
196OCTOBER 19, 2013. Vijay and Shekhar
$25M
CAPITAL
3
INVESTORS6 YEARS
$200M+
Exit
TYPICAL COMPANY EXIT SCENARIO
Value Creation
8x returns on invested $
4.7x is the 2012 Average
Equity Distribution
20% to 30% for founders ($60M)
5% to 10% for Angels ($20M)
55% to 75% among 3 investors ($40M)
Time Impact
Revenue: $0M, $1M, $2.5M, $8M, $20M+…
Non-linear growth
197OCTOBER 19, 2013. Vijay and Shekhar
WHAT-IF QUESTIONS
198OCTOBER 19, 2013. Vijay and Shekhar
FUNDABLE TEAMS
199OCTOBER 19, 2013. Vijay and Shekhar
Good inTech
No businessexperience
Ideas fromtheir world
26 Years
Minimal G2Mexperience
YOUNG ENTREPRENEURS
Individualcontributors
PassionateNo productexperience
1910OCTOBER 19, 2013. Vijay and Shekhar
WHAT SHOULD YOU DO?YOUNG ENTREPRENEURS
Interact withyour customers.
Crate yourProduct.
LAUNCH
LearnMarketing,
Sales, Product,Hiring.
PAY SELF
Talk toUsers,
Mentors.Investors.
LEARN
See aBig
Opportunity
RAISE $$
1 2 3 4
• Experiment and learn. Iterate faster. Skill building phase.
• Survive. Generate revenues and if possible even “exit”.
• Gain domain experience and deeper insights
1911OCTOBER 19, 2013. Vijay and Shekhar
ExperimentersDecision Makers
Passion &Commitment
Domain Experience
2 Co-Foundersv/s one Founder
Street Credibility
Ability to work together
OUTSTANDING TEAM MEAN WHAT?
Operationalbackground
Deep productexperience
Strong G2Mexperience
1912OCTOBER 19, 2013. Vijay and Shekhar
WHAT-IF QUESTIONS
1913OCTOBER 19, 2013. Vijay and Shekhar
TARGET MARKETS
1914OCTOBER 19, 2013. Vijay and Shekhar
Exit Friendly
Large competing playersExisting players are slow to react
Customer behavior is changingNew players can grow fast
e.g. Enterprise SaaS, AdTech, Payments, Healthcar
e Devices
Effciency Play
Platforms, Tools, Enterprise Appse.g. Atlassian, SalesForce, Marketo
Shifting Money
Online version of offline business.First-mover advantage.
Convenience and Efficiency.e.g. BookMyShow, RedBus
Network based
Narrow functionality.Applicable to large population.e.g. WhatsApp, Instagram
Marketplaces
B2C and B2B marketplaces.Fragmented Suppliers.Non-value added Intermediaries.e.g. CommonFloor, 99Design, oDesk
New markets in creation
Uncovering latent demand.Offline resources are enabled.Technology enabled.e.g. AirBnB, Lyft, Fiver
FUNDABLE MARKETS
1915OCTOBER 19, 2013. Vijay and Shekhar
PREFERRED BUSINESS CONSTRUCTSWHAT SCALE COMPANIES WOULD CHOOSE
Licensev/s
Subscription
In-Premv/s
Cloud
Revenue-sidev/s
Cost-side
Revenue flowStartv/sEnd
1 2 3 4
1916OCTOBER 19, 2013. Vijay and Shekhar
PREFERRED BUSINESS CONSTRUCTSWHAT SCALE COMPANIES WOULD CHOOSE
Singlev/s
Multi Tenant
Inbound Salesv/s
Outbound Sales
Inside Salesv/s
Field Sales
India v/s
Global
5 6 7 8
1917OCTOBER 19, 2013. Vijay and Shekhar
WHAT-IF QUESTIONS
1918OCTOBER 19, 2013. Vijay and Shekhar
DEALING WITH INVESTORS
1. Target the right firm. Match your company type to investments firm’s investment thesis.
2. Individuals make decisions. Not a VC firm. Target the right investor.
3. First meeting is the “most important meeting”. Founders should know more about their business, product than the investor. Do your homework.
4. It is a comparison game. There is a “deal pace” and “risk/reward” profile of the deal. The best deal on the table gets “the money”.
5. Make sure you guys are excited about the investor beyond “money”. It is a 7 year commitment, probably very next to “commitment of marriage”.
1919OCTOBER 19, 2013. Vijay and Shekhar
facebook.com/accelpartnersindia
@skirani
Q&A
facebook.com/thestartupguy
@vijayanands
