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Dj Growthtown Feb09
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Dj Growthtown Feb09

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Presentation at inaugural #growthtown - this is a monthly event for startups who are trying to grow/scale their business. …

Presentation at inaugural #growthtown - this is a monthly event for startups who are trying to grow/scale their business.
Focus was tip-trap in crossing the pond. Mostly a US focus.

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  • 06/08/09
  • Transcript

    • 1.
      • Going Global: some experiences from Australian startups
      • David Jones
      #GrowthTown Feb09
    • 2. Context/History OEM Channel Enterprise Consumer EmU Tech Reach Software 90’s 2000 2003 2004 2006 2008 High Touch Low Touch NetWorth
    • 3. Austria or Australia? david DOT jones AT gmail DOT com | skype://djinoz | Cell:+61 412 683 111 | @djinoz + 612??? Where is the “+” ?
      • The reality:
      • is that 70-100% of revenues for US companies come from US customers
      • “if you build it” they won’t come
      • You PROBABLY have a US competitor
        • Your product is PROBABLY better
        • Your product is PROBABLY cheaper
        • They don’t really care (risk, barriers)
      • “Touch” matters
    • 4.
      • Ironed out bugs
      • Hit the core features
      • OZ companies are often early adopters
      • Do you need to?….feedback is now global (getsatisfaction, uservoice etc)
      Have you validated locally?
    • 5. Presence in target market (the OEM anomaly – you think its low cost – but no free lunch) OEM Channel Enterprise Consumer High Touch Low Touch Firewall Vendors Security Vendors Per Vendor Customerisation Whiteboxing Are they blowing smoke?? No-one is incented as you!
      • Resellers/Integrators
      • Training
      • Mindshare
      • Are they Incented
      • Symbiotic product-line
      Pilots/Integration Closing Complex Contract Negotiation Repeatable Contracts Debtors
    • 6. Entering US - Team (may apply elsewhere)
      • Will a sales focused founder move to US? (CEO is often the best sales guy)
      • If not – your first Sales Hire in critical
        • Consider Sales/BD Contractor ( EMDG and COMET reimbursement (as an agent) )
        • Work LinkedIn first/SV OZ mafia
        • Be There – no substitute for spending time
        • Work some deals with them – will it work? (Bull-terrier, Hunter, Farmer?)
        • “ Blowing Smoke” factor?
        • What other gigs do they have on the side? (Integrity)
        • What profile do you need? (VP, Director, Outbound Sales)
        • Hire from your industry
        • Can you afford it? (SV VP USD150-180K => AUD23K/month (before EMDG)
      • Dial-for-Dollars – fill the pipeline
      • Anyone had good experience with Austrade outsource?
      • Anzatech, David Cannington? etc
    • 7. Entering US/UK – Channel Is this relevant in a SaaS world? – trying not to be “vendor 1.0” – technical products
      • Impedance Match
        • OK, so its on their pricelist – but will they sell it? (scratch the itch)
        • Are they selling symbiotic product?
        • Will they be selling to the same customer?
        • Does your product give them a unique differentiator?
        • No-one will EVER sell like you!
        • Reseller Margin (you need to be more generous than you think)
      • Education/Training
        • Again – will they sell it? (training Surfcontrol Web ppl to sell Email Filtering)
        • Work some deals with them – countering objections
      • Cultural Differences
        • Taiwan and Japan were polar opposites
    • 8. Getting Market Momentum (TMX example)
      • Analysts
      • Industry
      • Forrester/Gartner/451 group
      • Javelin Strategy
      • Glenbrook Partners
      • PR/SEO/Trade-shows
      • Leading Credit Card Companies
      • Leading Credit Card Processors
      • Leading Credit Bureaus/Scoring Providers
      • High End Merchants
      Presence
    • 9. “Born-Global” or “Flip-up” PTY LTD Commercial Ready Grant I personally prefer a data-room scanned from early on –”Investor/Acquirer Ready” Founders Investors Patents OEM/Channel contracts New Investor Due Diligence Delaware .Inc THEN Acquires 100% of PTY LTD ThreatMETRIX was a “flip-up” – the so-called “Israeli model”
    • 10. “Born-Global” or “Flip-up” Billable Item Notes Cost (US) Cost Control
      • Statuatory Incorpration
      • Simpler if “Born Global”
      • Costs are a burden until need it
      • Distraction
      • I’d prefer to defer until needed
      • Tax Advice
      • existing shareholders
      • existing option pool
      • AU Attorney for Company
      • liaise with US Attorney
      • Execute OZ end of flip-up
      • Advice on Commercial Ready Grant
      Get a capped quote
      • US Attorney for Company
      • Flip-up/Mirroring of Articles and Shareholders Agreements (SA)
      • 1 st Draft (if you can) of new SA
      • Negotiation of SA
      • Employee Contracts/PIIA
      • Establishment of BoD
      Get a capped quote – they won’t stick to it but drives behavior Pre-negotiate in the term sheet EVERYTHING not just numbers Never let a lawyer argue business terms – drive it to conclusion with the stakeholders Use a great CFO or project manager so you can keep one eye on the business The cost of Tier-1 attorney
      • Attorney for Investor
      • Due Diligence
      • Negotiation of SA
      • Bad Cop
      You pay investor’s costs Pre-negotiate in the term sheet EVERYTHING not just numbers Complete Scanned Dataroom
      • IP Due Diligence
      • Patent examination
      • We’ve always engaged a US Patent Attorney and pays off at this time.
      • Complete in dataroom
      Patent Authors walk it through – accelerate understanding
      • Option Pool Pricing
      • Distributed transaction platform
      US Valuer quotes were a rip-off. Engaged OZ advice - OK.
    • 11. Questions?

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