Jonathan Cooper, Poteza Ventures @ TMT.Ventures'08 Zagreb

TMT Ventures - Zagreb

Poteza Innovation and Growth Fund Confidential & Private

Agenda

• The financial crisis and what it means to (all of) us

• Poteza Ventures – First Choice for Entreprenuers

• Hot sectors for next five years


The Financial Crisis and what it means to us

* From the Sequoia report, August 2008


The Sequoia Report – Main Points

• Manage what you can controlo Spendingo Growth Assumptionso Earnings Assumptions

• Focus on quality• Lower risk• Reduce debt• Get cash flow positive as soon as possible


The Poteza perspective

At Poteza, we don’t buy into Sequoia’s vision of “doom and gloom”...

However,



Valuations are down...

This is a 59% drop in P/E ratio...

MSFT YHOO GOOG EBAY AMZN AvgP/E peak 18,17 43,19 45,62 85,48 67,14 51,92P/E today 10,14 13,30 19,09 30,18 31,77 20,89



And the number of VC deals are down...

But only by 7% in Q3 ‘08*

*Cnet News, Oct 18, 2008


The Poteza perspective• Focus on your revenue and your sales pipeline!

o Revue revenue and your sales pipeline on a weekly basis

o Keep an eye on A/R – collect the cash

• When you see weakness in revenue, react accordingly, ie. reduce costs, reduce revenue projections

• Manage your cash flow – make sure you have enough

• If it is part of your plan, look for a partner now, and strengthen your balance sheet – raise money while you cano This downturn is a great opportunity for strong

companies to take market share, people, etc.


Agenda





Poteza Ventures – First Choice for Entrpeneurs

- Serbia- Montenegro- Bosnia and Herzegovina- Macedonia

- Croatia- Romania- Bulgaria

- Slovenia

- EU

Development stage

Primary investment regionSlovenia, Croatia and Serbia

Poteza Ventures Offices



Stage of financing?Stage of financing? Industry?Industry?

Early stageEarly stageinnovativeinnovative

growthgrowthcompaniescompanies

Information TechnologyInformation Technology

TelecommunicationsTelecommunications

Business ServicesBusiness Services

Life SciencesLife Sciences

MediaMedia

InternetInternet

Alternative EnergyAlternative Energy0.5 MM – 6 MM Euro



Benefits of working with Poteza:

•We are local guys

•But with international experience and perspective

•And, we are former entrepreneurs – we understand the challenges faced by early stage companies in the region

•Our fund is recently raised, with over 30 MM Euro left to invest



Two Deals Compeleted:

Energy Management Software

Real Estate verticalSearch


Agenda





Hot sectors – next five years

• Software as a service• Mobile applications and services• Open Source• Internet and ecommerce


Software as a Service• Has several names – SaaS, On Demand Computing,

Cloud Computing, Hosted Services, ASP, etc.• Saas service companies provide applications to

their customers, which are accessed by the clients anywhere, anytime, via the web Include Groupware, Document Management, Sales Force

Management, enterprise social networking, etc.

• Benefits include lower cost of applications, lower cost of maintenance, lower cost of hardware, more predictable costs

• Wonderful solution for SME’s and companies with multiple offices


Mobile applications and services

• Game Over! Operators will be providers of voice and internet access – they have lost control of the rest of the ecosystem. Handset manufacturers and the mobile internet are now in control.

• Hello! iPhone, Google Android, LiMo, and hey, Symbian is now Open Source! Companies are now free to develop and market services and

applications directly to end users, without the huge revenue share traditionally taken by the operators

iStore is huge ($30 MM+ monthly revenue), Android store will be...

Nokia CWM (Comes With Music) may be the next big thing...

• The new smartphone handsets finally deliver on the promise of the mobile computer

• And the real game changer – GPS...


Open Source

• Finally ready for prime time!• Enterprise grade open source apps are here:

Zimbra from Yahoo Alfresco document management SFA tools ERP – tougher in our markets due to localization

issues... Asterix for telecom

• Tools for building open source apps allow fast development of advanced products

• Open source for mobile phones will create opportunities similar to when the PC became popular 15 years ago


Internet / e-commerce

• There are still opportunities in this space!• Advertising revenues are increasing rapidly – you can

finally make money in internet media• For internet sites, a regional or bigger play is better than

country specific• E-commerce, such as Amazon, is poised to take off.

Logistics and payment infrastructure are in place, and sites such as Konzum are educating people and making them comfortable with ordering on-line.


Poteza Ventures

Thank You!

Economy & Finance

Jonathan Cooper, Poteza Ventures @ TMT.Ventures'08 Zagreb