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The Marketplace - June 17th, 13:30-14:30 Hear the latest advice on how to secure venture capital for your technology business. This is followed by pitches from three of the UK’s most promising technology companies, one will be announced as the winner of The First Tuesday Award 2014 delivered in partnership with Salesforce.com and Deloitte.
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How to Raise Venture Capital The First Tuesday Award 2014
Award Partners
Christer Holloman Chairman
First Tuesday
Award Partners
1.30 Welcome 1.35 Meet the Jury 1.40 Finalist 1: 5 min + 5 min QA 1.50 Finalist 2: 5 min + 5 min QA 2.00 Finalist 3: 5 min + 5 min QA 2.10 Jury Agrees Winner 2.10 How to Raise Venture Capital 2.25 Jury’s Winner Award Winner Announced 2.30 End
Award Partners
Sanj Bhayro Senior Area VP – EMEA SMB
THE JURY
Award Partners
David Cobb Partner
THE JURY
Award Partners
David Buttress CEO
THE JURY CHAIRMAN
Award Partners
X X X
FINALIST 1
Award Partners
FINALIST 2
Award Partners
X X X
June 2014
For Internet World
Confidential
• This presentation is prepared exclusively for the jury of the Internet World awards
• All data and information is confidential and must not be shared without the express written permission of Hubbub.co.uk.
12
13
Offline £163.3bn
Online £6.5bn
Hubbub opportunity
Other inc. Independents
£40bn
Source: Company accounts, annual reports; IGD; Hubbub analysis
£169bn UK 2013 grocery market Hubbub opportunity
Hubbub opportunity
MARKET OPPORTUNITY: Hubbub enables independent grocery retailers to fight back against the ‘big box’ grocers
Hubbub will do for independent food shops, stalls and producers what Just Eat does for takeaways, what Not on the High Street does for creative small businesses, what Farfetch does for independent fashion boutiques, and what Hailo does for black taxis.
THE VISION: Hubbub will be the de facto marketplace for local food shops, market stalls and artisan producers.
14
• Extra orders • Transactional
website/apps • Local food-friendly
logistics • Marketing, CRM, CS
LOCAL SHOPS
Pays: X% Commission
CONSUMERS
• Hourly delivery slots, all delivered at once
• Same prices as high street
• All sourced locally
Pays: £3.50 delivery charge + payment card fees
THE OFFER: Matching busy consumers with local food shops who are looking for new business channels
Hubbub’s average revenue: ~20% of Total
Transaction Value
16 No stock. No picking and packing. No credit risk.
SMART MODEL: No stock, warehouse, wastage, picking/packing, returns, motorway traffic jams, credit risk.
No picking and packing
Leverages shops’ workforces outside
peak hours
No stock Leverages shops’ existing, locally-held, inventory
No returns Goods are fresh, and no
returns are permitted
No warehouse Goods are delivered direct or cross-docked van-to-van
No credit risk Hubbub pays shops net of
commission
More deliveries/hr Vans operate within 3 mile radius densely populated areas, avoiding busy roads No wastage
Goods are picked-to-order; shops bear overstock risk
AMAZING CUSTOMER LOYALTY: Loyal customers’ spend increases fast enough to compensate for churning customers
Cohort spend is stable / growing after year 2
Customer spend keeps rising over time
17
£0
£20
£40
£60
£80
£100
£120
£140
Qtr
1 Q
tr2
Qtr
3 Q
tr4
Qtr
5 Q
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Qtr
7 Q
tr8
Qtr
9 Q
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Q
tr11
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tr19
Aver
age
£ to
tal t
rans
actio
n va
lue
Qtrs since first order
0%
20%
40%
60%
80%
100%
120%
Qtr
1 Q
tr2
Qtr
3 Q
tr4
Qtr
5 Q
tr6
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Aver
age
£ TT
V pe
r coh
ort c
usto
mer
Qtrs since first order
18
Total Transaction Value, £, per quarter
£185k angel
investment
£600k angel
investment
Marketing
spend stopped
THE SALES: We’ve achieved growth averaging almost 20% quarter on quarter, despite very low investment
Rollout strategy: increase density per hub 6x, and roll out 20x as many hubs
0
10
20
30
40
50
60
70
80
ROW
UK
All London
Inner London
POC hubs
2013 2017
~20x as many hubs
6x revs/hub growth
Marisa Leaf Founder & co-CEO
Barrister; Author; Evening Standard Power 1000: London’s Most Influential Dealmakers/Tycoons 2013; Oxford University graduate
Sonja Martin Head of Operations Mumumio; Masters in Food Policy; First from LSE
HUBBUB’S TEAM: We are assembling a wide range of food, e-commerce and marketing talent
William Reeve co-CEO
Fletcher Research; LOVEFiLM.com; Graze.com; Secret Escapes; Zoopla; Top first in EEM from Oxford University
20
Ben Lewis Marketing Manager ZipCar; Et Games; Stream Farm; MA from Edinburgh University
Executive team Institutions
Selected angels from:
21
QUESTIONS?
FINALIST 3
Award Partners
X X X
JURY TO AGREE WINNER
Award Partners
How to Raise Venture Capital
Award Partners
1. Need it?
2. Be good
3. Look good
4. Create pull
5. Research
6. Solve right problem
7. Demo your solution
8. Validated Revenue Model
9. Validated Customer Acquisition
10. Team & Exit
1. DO YOU NEED IT?
a. Cost of diluting
b. Free money
c. Collaborations
d. Bootstrap your life
e. Bootstrap your company
f. Family and friends
g. Loans
h. Business angels
CAPITAL NEEDS
TIME
Seed Start-up Early Growth Sustained Growth
High Risk
Low Risk Friends, Family &
Fools
Business Angels
Formal Venture Capital
IPO
Growth
Proof of Concept, Grants &
Loans
1. DO YOU NEED IT?
2. BE GOOD
a. Be a nice person
b. Contagious enthusiasm
c. Use easy to understand language
d. Have a relevant background
e. Grow your network
f. Be prepared
3. LOOK GOOD
a. Sleek corporate identity
b. Check your facts, validate your
claims
c. Update your business plan
4. CREATE PULL
a. Do everything on the previous
slides
b. Set up advisory board
c. Network, spread the word
d. Enter awards
e. Become a sector expert
f. PR
g. Get introduced
h. Entertain/befriend VC first
You
VC
5. RESEARACH YOUR VC
a. How a VC works
b. Where to look
c. What do they invest in?
d. Who works there (skillset,
interests)
e. ROI
f. Call/email/approach at event
6. RIGHT PROBLEM
a. Is it the right problem?
b. VC can relate
c. How big is the problem (Market
size/growth)
d. Validate
7. SHOW YOUR SOLUTION
a. Live demo (prepare for no wifi)
b. Video
c. Screenshots
d. “Great products get you Laid (sex), paid (money) and
made (power”)
e. True USP (list all competitors) / Patents
f. Validate
8. REVENUE MODEL
a. More then 1 revenue source
b. Benchmark
c. Validate
9. ACQUSITION MODEL
a. Write your marketing plan
b. Volume/Cost/Conversion
c. Don’t rely on Google
d. Why will they come, and why will they come
back
e. Validate
10. TEAM
a. Have a team
b. Track record to deliver
c. Complimentary skills
d. Motivations
11. EXIT STRATEGY
a. Trade Sale
b. IPO
1. Need it?
2. Be good
3. Look good
4. Create pull
5. Research
6. Solve right problem
7. Demo your solution
8. Validated Revenue Model
9. Validated Customer Acquisition
10. Team
11. Exit Strategy
AWARD WINNER IS… The UK’s Most Promising Internet Company
Award Partners
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