HELLAS DIRECT: SETTING UP A NEW INSURANCE COMPANY IN GREECE

HACK CYPRUS 2013 �NICOSIA, CYPRUS�4-8 SEPTEMBER 2013 �

(“LAUNCHING A START-UP AT A TIME OF CRISIS”)

LOOKING FOR A NEW CHALLENGE IN LIFE?

Sir Richard Branson (2012) �

Oldest man to kitesurf �across the English Channel. �

THERE ARE A BUNCH OF CRAZY THINGS YOU COULD DO TO PICK YOURSELF UP

Hugh Hefner (2013) �Felix Baumgartner (2012) �

Married to a 26-year old �when he turned 86. �

Skydived from space, �breaking the speed of sound. �

… IN INSURANCE, IN GREECE, IN 2012!

OR YOU COULD START A NEW VENTURE

WTF?!

SO, WHO ARE WE? WHAT DO WE DO? HOW DID WE GET HERE?

TIP OF THE DAY: STARTUPS CAN BE BAD FOR YOUR LOOKS

A LONG, LONG TIME AGO IN A GALAXY* FAR FAR AWAY…

* IN LONDON

Larry Page + Sergey Brin�

LIKE MOST ENTREPRENEURS, WE SET OFF THINKING WE’D BE THE NEXT GOOGLE GUYS …

* until this guy came along.�

GOOGLE: Largest tech IPO in history*.�

PRE-SEED� SEED� ROUND I �

CUMUL

ATIV

E CA

SH F

LOW�

ROUND II � ROUND III � ROUND IV�

ANGELS�

<EUR 100k � EUR 500k-1m � EUR 1-5m � EUR 5-10m �

8-10 YEARS�

1/3

IPO �

EUR 100-500k �

‘VALLEY OF DEATH”�

x x

EARLY-STAGE� LATE-STAGE�

… KNOWING THAT REALITY CAN BE HARSH (9/10 START-UPS FAIL)

1/2 2/3 4/5

EXPANSION � FOLLOW-ON �EUR 30-50m � EUR 50m> �

GROWTH �

EUR 10-30m �

BREAK EVEN �

START-UP SURVIVAL

RATE

SO, WHY GREECE?

A COUNTRY RUN BY CROOKS AND INCOMPETENT POLITICIANS TRANSFORMATIONAL OPPORTUNITY - GOING THROUGH A HUGE RESET LARGE ENOUGH – 11M PEOPLE

AND WHY CAR INSURANCE?

OBLIGATORY BY LAW LETHARGIC COMPETITION – HIGH COSTS AND INNEFFICIENCIES MIDDLEMAN IS STILL THE KING WITH OBSENE COMMISSIONS – BROKERS NOT AGENTS EUR 2BN MARKET SIZE

WHY NOW?

A STRONGER REGULATOR THE RISE OF THE CONSUMER BEST TIME TO BUILD A BRAND

OUR STORY

¡  A NEW, DIRECT INSURANCE COMPANY IN GREECE.

¡  “CHANGING THE GREEK INSURANCE MARKET, ONE POLICY AT A TIME”.

¡  WE ARE HIGHLY SPECIALISED.

¡  WE LIVE AND BREATHE TECHNOLOGY.

¡  WE LOVE NUMBERS.

¡  WE SERVICE THE CONSUMER, NOT THE BROKER!

¡  23 PEOPLE IN 3 COUNTRIES.

¡  A LONG JOURNEY: 3 YEARS FROM START TO OUR FIRST SALE.

¡  WE HAVE FACED THREE KEY CHALLENGES ALONG THE WAY…

CHALLENGE I: SECURE (REAL) FUNDING

2,500 APPROACHES

300 MEETINGS

11 INVESTORS

1.5 YEARS

FINDING INVESTORS WASN’T EASY …

1 IN 8 1 IN 27

99.56% REJECTION RATE

… AND THE ODDS WERE NOT ON OUR SIDE

THERE IS A HIGHER CHANCE OF BETTING ALL YOUR MONEY ON BLACK IN A LAS VEGAS ROULETTE AND WINNING… … 7 CONSECUTIVE TIMES!

CHALLENGE II: BUILD A GREAT COMPANY

Invest in technology �Algorithmic pricing �Close ties with academia�

Keep innovating �Hire the right people �

Intelligence�Passion �A drive to make things better�

Get licensed�

A year of paperwork �Detailed business planning �Latest EU regulations�

THERE ARE THREE BASIC INGREDIENTS TO BUILDING A GREAT INSURANCE COMPANY

CHALLENGE III: DRIVE SALES

When  you  start,  the  tendency  is  to  go  for  the  sexy  stuff.  [Wonderbra  slide]  We  went  the  other  way.  Set  up  the  best  car  insuranc  company  in  Greece.  [monty  python  slide]    Our  journey  [our  journey  slide]  A.  First  you  get  the  money  [New  slide]  That  was  tough  [space  arcade  slide]  The  odds  are  definitely  against  you  [vegas  slide]  B.  Then  you  have  to  build  the  company    [new  slide]  Hire  the  right  people  [new  slide]  Build  your  technology  [new  slide]  Get  regulated  -­‐  bureaucracy  [new  slide]  C.  Then  you  have  to  sell  Who?  Innovators.  [new  slide]  ExponenNal  growth?  [new  slide]  How?  The  'Why'?  Find  your  tribe  [new  slide]    Some  days  are  tougher  than  others  [orthodox  jew  slide]  but  the  liPle  things  make  it  worth  while  [doxiadis  post  slide]  Enjoy  the  ride  [last  slide]  Books  that  inspired  us  [books  slide]  Thank  you  [thank  you  slide]  

LIKE ANY NEW IDEA, APPEAL TO THE INNOVATORS AND EARLY ADOPTERS FIRST

(NOT EVERYONE WILL GET IT – TARGET YOUR TRIBE FIRST!)

SOME DAYS ARE TOUGHER THAN OTHERS …

“Happy Hanukkah”�Israeli investor�

Tel Aviv, Israel�London, UK� Athens, Greece �

“Shaken not stirred”�Russian investor�

“Press 4 for help”�South African investor�

… BUT IT IS THE LITTLE THINGS THAT MAKE IT ALL WORTHWHILE

I have just insured my car with Hellas Direct in under 5’. If all other services (private or public) were as friendly to the user as this one, our productivity would be much higher and we would all be much calmer…

- a client’s facebook post