Investors

Α Microfund targeting Emerging tech and the Web in Greece and Southeastern Europe www.theopenfund.com

The Vision Create an ecosystem that will promote high tech entrepreneurship (business + technology) and will yield high returns to all participants Entrepreneurs Network of Advisors Executive Board Investors

The First step Invest and foster the most promising startups Open call for proposals Selection of the best ideas or prototypes (up to 5 for every round) Fund and incubate the most promising (20k-30k€) Provide advice and guidance until the exit

AGENDA WHO ARE WE THE OPPORTUNITY THE PROCESS INVESTOR INFORMATION

Executive Board Team Managing Directors • Georgios Kasselakis, Entrepreneur, Organizer Thessaloniki Open Coffee – Operations • George Tziralis, Co-Founder & CEO, AskMarkets, Principal Organizer of Athens Open Coffee – Overall Management / Operations Board Members • Apostolos Apostolakis, Co-founder and CFO, e-shop.gr, Athens • Dimitris Athanasiadis, Entrepreneur, Co-Organizer of Athens Open Coffee – Operations • Onic Palandjian, Investment Director at Capital Connect Venture Managers SA, Athens • Sokratis Papafloratos, Co-founder and CEO, trustedplaces.com, London • Spiros Xanthos, Co-founder and VP of Engineering, Pattern Insight, Mountain View CA • Teresa Farmaki, Head of Private Equity & Operating CEO, Piraeus Bank & Pireaus-TANEO clean tech fund

Advisors (so far) A strong network of advisors has been formed (and growing) to help the funded companies • Startup advisors – Tasso Argyros, Co-Founder & CTO, Aster Data Systems • Raised more than $25 million of funding in 3 years – Apostolos Apostolakis, Co-Founder & CFO e-shop.gr • Grew e-shop.gr to more than 120 millions of revenue – Sokratis Papafloratos, Co-founder and CEO, trustedplaces.com, London – Andy McLoughlin, Co-founder and Product Director, Huddle.com – Spiros Xanthos, Co-Founder & VP of Engineering, Pattern Insight • Turned university technology to a successful startup • Technology advisors – Haris Ermopoulos, Software Engineer for Google File System – Panos Ipeirotis, Associate Professor CS at Stern Biz School NYU – Georgios Kasselakis, Entrepreneur, Organizer Thessaloniki Open Coffee – Patrick Malone, CTO Microsoft Hellas • MS is also a sponsor

Advisors (so far) • Investor Community – Franceso Benincasa, Director at Ultimate Holdings • Networking in the UK – Aristos Doxiadis, Managing Director Notos Associates – Onic Paladjian, Director at Capital Connect Ventures • Founded several successful startups in the past himself • Sales and management – John R. Lovitt, Investor, former SVP at IBM/Rational • Interested in investing – Yiannis Methodios, Ex-CEO (Greece), Accenture – George Saliaris Fasseas, Country Manager (Greece), Google – Christos Tsangos, CEO (Greece) Microsoft – Ioannis Vasilaras, Ex-CEO, Infote • Accounting and legal – Andreas Akavalos, Ex-CEO (Greece), PriceWaterhouseCoopers

Advisors (so far) • PR, Marketing, New Media – Petros Katsampouris, CEO, Vivechrom – George Tziralis, Organizer of Open Coffee Greece • Grew Open Coffee GR from 0 to more than 300 people per event

Necessary Preconditions Exist • Education – 1.7% of the population holding Masters’ degrees & PhDs (among the highest in Europe) – Highest per capita number (in Europe) of people who study abroad (and want to return to Greece) • Community & Entrepreneurial Momentum – Open Coffee attracts ~300 participants per month in two cities. Proportional count for 4 more cities. – “Innovation 2006” competition from Otenet attracted 2700 participants

Τίτλος άξονα 0,00% 1,00% 2,00% 3,00% 4,00% 6,00% 7,00% 5,00% Lithuania Latvia Greece Finland United States Poland Slovenia Estonia Iceland Sweden Norway Hungary Denmark Ireland Spain Romania United Kingdom Belgium Slovakia Netherlands Source: Eurostat Portugal France Italy Turkey Czech Republic Bulgaria % population in Higher & Highest Education Japan Untapped Potential Croatia Austria Germany Switzerland Cyprus FYROM Albania Malta Liechtenstein Luxembourg (Grand-…

Availability of Funding Western Europe & World Availability Seed funding Public companies Buyout

Availability of Funding Greece & SE Europe Availability Seed stage funding is nonexistent today in Greece and SE Europe Seed funding Public companies Buyout

Distribution of Funding Stage Greece (‘07) Europe (‘07) Early 0 €3.35 B ↓ 1.2x Development €52 M €3.9 B ↓ 2x ↓ 2.5x VC €102 M €10 B ↓52x ↓ 6x Buyout €5.4 B €60 B Source: Private Equity Activity Survey 2008, European PE and VC Association

Seed funding (% GDP) United Kingdom 0,224 Sweden 0,058 EU 0,053 Israel 0,040 Portugal 0,039 United States 0,035 France 0,030 Finland 0,027 Spain 0,027 Switzerland 0,024 Iceland 0,024 Ireland 0,015 Denmark 0,015 Norway 0,013 Netherlands 0,012 Belgium 0,012 Germany 0,011 Hungary 0,005 Romania 0,004 Austria 0,003 Italy 0,002 Greece 0,002 Poland 0,001 Slovakia 0,001 Latvia 0,000 Czech Republic 0,000 0,000 0,020 0,040 0,060 0,080 0,100 0,120 0,140 0,160 0,180 0,200 0,220 0,240

Privileged access to the startup ecosystem in Greece • More than 40 events – Held hands with every single related event in Greece • 2500+ total attendants • 132 presentations • 0 budget • Guest speakers, including: – J. Calacanis (Blogs inc) – K. Mitsotakis (Former VC, Member of the Greek parliament) – A. Diamantopoulou (EU Commissioner, Shadow minister of Development) – V. Makios (Corallia, semiconductor companies incubator) – 10s more

Structure Connect entrepreneurs and investors, provide all that is needed to start, grow and sell successful ventures OPENFUND Executive Board Entrepreneurs Investors Network of Advisors

Find the Best Entrepreneurs • We have almost set-up from scratch an entrepreneurial ecosystem (open coffee) • Now we are looking for the best and brightest, to set-up the most capable of teams and invest themselves exclusively for 4 months • To build and launch disrupting products • The idea is just a start, team and execution is of paramount importance

The Selection Process • Three rounds of selection: 1. Online submission 2. In person interview 3. Presentation day (investors participate) • Stake in up to 5 ventures / round • 20-30K€ per investment for 20% equity • Iterating, 4 month stages

Benefits for Entrepreneurs • Mentoring & networking – Leverage advice & connections from the best in the field, tech & business – Advice can be as useful as cash • Funding – Seed capital to cover all operational expenses for the 4- month "incubation" period • Smooth Start – Create the company for them at no cost – Handle all the legal / accounting issues, provide advise • Grow – Take direct advantage of the network to grow and raise more money as needed

Targeted business models We bring expertise on these models on board, we are open to others too • subscriptions (fixed/variable), freemium • license, SaaS, white label • marketplaces, ecommerce and open calls • advertising, content re-purpose & affiliate sales • hybrids of the above (micropayments, affiliate advertising etc)

Benefits for Investors Access to the best opportunities in SE Europe • Open Coffee Greece is the ultimate destination for new startups • Micro funds (YCombinator, Techstarts, etc.), have been very successful – Nevertheless, closest to Greece is Seedcamp, based in the UK

Benefits for Investors Effortless diversification of the investments • The OpenFund organizes everything (processes, paperwork etc) • Investors are involved as much (or as little) as they want with the funded companies – They do participate in the selection • Diversify by participating in every company of a round • Extensive network of advisors and investors multiplies chances for successful exit

Benefits for Investors Social Impact and Extensive Promotion Opportunities • Promote entrepreneurship in Greece & SE Europe – Funding and advising is what’s missing – Access to a portfolio with the most promising ventures in the region • Open Coffee has been recognized by the media for promoting entrepreneurship – High profile successful entrepreneurs, executives and politicians participated and want to help

Investment Approach: Funding 2.0 Evolution of technology: Open Source, AWS, AppEngine, Azure, Cloud Matrix, Ruby on Rails… 4-strong team of great individuals is enough to create a disrupting product Invest in on-line services Iterate and Improve Aim for the global market

Sharing the Stakes 8% Management Board 12% Investors 80% Entrepreneurs 100%

Investor concerns • Minimum participation = 30.000€ • Amount is spread on all the companies of a round, up to 5 • If sufficient for more than 1 round, it is used in a predefined manner over rounds • Example: 30.000€ gives a 2.4% stake in 5 companies • Remember: a success for our startups is to sell or have profit of x-times over the seed amount

Investor rights • Tag along for all investors of each company • Right of first refusal for all investors of each company • No drag along • Some rights are arbitrated by the Executive Board when many investors are participating*

Breakeven Analysis 200K € average exit for Investors to break even, beyond that, it’s Profit 5 Companies (Single Round) Exit/Profit 2000 1795 1500 Profit (in 1000s) 1000 Profit 500 355 0 -125 0 100 200 400 800 1600 3200 -500 Average Exit (in 1000s)

Past cases • Goal achievable according to experience from similar ventures (YCombinator, SeedCamp, TechStars) • SeedCamp – 6 & 7 companies in 2007-8 – 30% of the companies had 2nd round valuated at minimum $1M • TechStars – 19 companies in 2 years, 40% were sold – $6.9M for SocialThing.com – IntenseDebate sold to Wordpress.com (undisclosed $>10M) – $.8M average 2nd round of funding for the rest • YCombinator – 80 companies in 4 years – 2nd rounds include: Xobni $5.2M, Loopt $12M, Justin.tv $2M, Scribd $3.7+9M – Sales include Omnisio $15M, Auctomatic $5M, Reddit $>10M

Fundraising • Looking to raise funding for 5 consecutive rounds • Up to 150.000 € / round • 750.000 € total • Minimum Investor Participation: 30K €

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Investors

by The Openfund on Jul 13, 2009

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