Welcome To The Future

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Presentation given by Matt at Sydstart 2012

Published in: Technology, Business

Welcome To The Future

  1. 1. WelcomeTo theFutureMatt BarrieCEO & Chairman You are hereFreelancer.comemail: matt@freelancer.comtwitter: @freelancer
  2. 2. We live in a remarkable period in history..a confluence of macro trends. You are here
  3. 3. What does this all of this mean? “Software is Eating the World” – Marc Andreessen
  4. 4. What does this all of this mean?Advertising Physical Software
  5. 5. What does this all of this mean?Telecommunications Physical Software
  6. 6. What does this all of this mean?Retail Physical Software
  7. 7. What does this all of this mean?Books Physical Software
  8. 8. What does this all of this mean?Scrapbooking Physical Software
  9. 9. What does this all of this mean?Notepad & Pen Physical Software
  10. 10. What does this all of this mean?Maps Physical Software
  11. 11. What does this all of this mean?Search Physical Software
  12. 12. What does this all of this mean?Music Physical Software
  13. 13. What does this all of this mean?Fashion Physical Software
  14. 14. What does this all of this mean?Point of Sale Physical Software
  15. 15. What does this all of this mean?Money Physical Software
  16. 16. What does this all of this mean?Retail Estate Physical Software
  17. 17. What does this all of this mean?Recruitment Physical Software
  18. 18. What does this all of this mean?Hang with Friends Physical Software
  19. 19. What does this all of this mean?Photography Physical Software
  20. 20. What does this all of this mean?Video Physical Software
  21. 21. What does this all of this mean?Travel Physical Software
  22. 22. What does this all of this mean?Reviews Physical Software
  23. 23. What does this all of this mean?News Physical Software
  24. 24. What does this all of this mean?Education Physical Software
  25. 25. What does this all of this mean?Coupons Physical Software
  26. 26. What does this all of this mean?Flea markets & Garage Sales Physical Software
  27. 27. What does this all of this mean?Healthcare Physical Software
  28. 28. What does this all of this mean?Drug Dealing Physical Software
  29. 29. What does this all of this mean?“The Reimagination of Everything” - Mary Meeker
  30. 30. The other70%of the world’spopulation areabout to jointhe Internet.
  31. 31. It’s 2011. World Population 7,030,000,000 Number on the Internet 2,267,233,742 (32.3%)Source: Internet World Stats & United Nation
  32. 32. Worldwide Internet Penetration 2011 North America Europe 266 million users 475 million users 77.4% penetration 58.4% penetration Asia 825m (of 3834m) 21.5% penetration Africa 110m (of 1014m) Latin America 10.9% penetration 204m (of 592) 34.5% penetration
  33. 33. Worldwide Internet Growth 2000-2010 Africa 2357% Middle East 1825% Latin America / Caribbean 1033% Asia 621% World, Avg 445% The other 5,000,000,000 Europe 352% people are coming… Oceania / Australia 179% North America 146% 0% 500% 1000% 1500% 2000% 2500%
  34. 34. 81% of Users of top sites outside USA
  35. 35. Twice as many Chinese than Americans
  36. 36. The other 5 billionare on an average wage of $10 or less per day
  37. 37. The first thing they aredoing is looking to raise their economic status.
  38. 38. And it’s never been easier to learn a trade.
  39. 39. Free Stanford Course in AI. Over 170,000enrolled, 8x thetotal number of students at Stanford.
  40. 40. Simultaneouslyevery industry is now digitised.
  41. 41. The World is Flat.
  42. 42. The World is Flat.
  43. 43. The World is Flat.
  44. 44. What does all this mean?What does this all mean? Goods Services Today Tomorrow
  45. 45. We are the global labor exchange Empowering Entrepreneurs. Globally.
  46. 46. Freelancer.comFreelancer Globally ➔ World’s largest outsourcing marketplace ➔ Started May 2009 ➔ ~ 4,200,000 users from >234 countries/regions ➔ ~ 2,400,000 posted projects to date ➔ ~ $150,000,000 spent through site to date, $50m turnover in 2012 roughly equivalent to saving western businesses $500m in costs.. ➔ In top 300 websites globally (Alexa)
  47. 47. Key Statistics • 180 employees across Sydney, London, Manila, Buenos Aires
  48. 48. Acquisitions to Date • Scriptlance.com (Canada) • GetAFreelancer (Sweden) • EUFreelance.com (Europe) • Lime Exchange (USA) • Freelancer Booking Center (Germany) • Freelancer.co.uk (United Kingdom) • Freelancer HK (China SAR) • Freelancer Australia (Australia) • Webmaster Talk (USA)
  49. 49. We are in the earlystages of replicating a country in software.
  50. 50. Population – 4,130,000 and growing Covering 234 countries, regions and territories
  51. 51. Demographics- 20 regional & growing
  52. 52. Languages – ~20 by the end of 2012
  53. 53. Economy – 2,400,000 Projects so far
  54. 54. Economy – Global –
  55. 55. Turnover US$ million
  56. 56. Workforce - Bangladesh –
  57. 57. Workforce - Bangladesh –
  58. 58. Workforce - Bangladesh –
  59. 59. Workforce - Pakistan –
  60. 60. Workforce - Nepal –
  61. 61. Workforce - India –
  62. 62. Workforce - Philippines –
  63. 63. Banking System We are the sole provide of bank accounts to some freelancers in emerging economies
  64. 64. Currencies – 13 and growing. FX. US Dollar New Zealand Dollar Australian Dollar British Pounds Hong Kong Dollar Singapore Dollar – – Philippines Peso Euro Canadian Dollar South African Rand Indian Rupee Jamaican Dollar Chilean Peso
  65. 65. Traffic vs Competitors Olympics Neglects traffic to our 20 regional domains e.g. freelancer.co.uk
  66. 66. Users vs Competitors (Aug 2012)
  67. 67. Popularity vs Competitors
  68. 68. Design a fully functional Dune Buggy I can drive at 30km / hourUS $268 36 Bids Outsourcing
  69. 69. 280 choices for $290!Crowdsourcing
  70. 70. Crowdfunding Broke the CSS!
  71. 71. “We are becoming Hyper Connected” - Tom Friedman
  72. 72. What does this all of this mean? Distribution is unprecedented.
  73. 73. What does this all of this mean?Technology adoption is accelerating % of USHouseholds
  74. 74. Not so long ago. ➔ In 1900, <10% of families owned a stove, or had access to electricity or phones ➔ In 1915, <10% owned a car ➔ In 1930, <10% owned a fridge or washer ➔ In 1945, <10% owned a dryer or air-conditioning ➔ In 1960, <10% owned a dishwasher or colour TV ➔ In 1975, <10% owned a microwave ➔ In 1990, <10% owned a cell phone or Internet ➔ Today.. more than 90% own all the above.
  75. 75. Customers are buying faster
  76. 76. What does this all of this mean?Computing mutates as it goes pervasive Desktops, Laptops Mobile Phones, Tablets
  77. 77. .. and faster
  78. 78. .. and faster!
  79. 79. .. and faster!!
  80. 80. .. and faster!!! 1000 900 800 700 600 500 400 Facebook (millions of 300 users) 200 100 0 Aug-05 Aug-07 Aug-09 Aug-11 Apr-06 Apr-08 Apr-10 Apr-12 Dec-04 Dec-06 Dec-08 Dec-10
  81. 81. .. and faster!!!! 1,600,000 in 3 days 100,000,000 users in 45 days 900,000 in 3 days 30 DAYS
  82. 82. What does this all of this mean? Parabolic growthcomes from harnessing distribution firehoses
  83. 83. Facebook Firehose
  84. 84. Apple Firehose
  85. 85. Google Firehose
  86. 86. Reddit Firehose
  87. 87. Other Unconventional Firehoses
  88. 88. Virality. Social. Reviews. Friends. Inviters.
  89. 89. What does this all of this mean?Every business today is an Internet business.
  90. 90. What does this all of this mean?All this stuff is free.
  91. 91. Virtualised computer.. Only this computer is a hotel reservation system! • PBX • Hotel Reservations • Wifi • Minibar • MoviesFree!
  92. 92. What does this all of this mean?All this stuff is cheap.
  93. 93. What does this all of this mean?All this stuff is cheap. Even if none of this stuff makes sense to you, freelancers can put it together for you.. cheap!
  94. 94. What does this all of this mean?You can start a company off a credit card
  95. 95. What does this all of this mean?A new class of Venture Capital has arisen
  96. 96. What does this all of this mean?Digg.com • Outsourced original software for $60 • $6000 to get site all up and running • $1200 for domain and 12 months hosting Offer from Google for $200 million 4 years later
  97. 97. What does this all of this mean?PCTools / Spyware Doctor • Outsourced original software for $1000 • Bootstrapped to profitability • Raised financing only at very late stage Sold to Symantec for $300 million 6 years later.
  98. 98. What does this all of this mean?RetailMeNot.com • Built with $30 in one weekend • Bootstrapped to $30m in revenues Sold to WhaleShark for $90 million 5 years later.
  99. 99. The DotCom boom is over. Not. 3500 3000 Today. 2500 2000 1500 First dotcom Actual Forecast (Fixed) boom ‘over’. 1000 500 First dotcom boom. 0 1990 2012 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2014 2016 2018 2020
  100. 100. 5 Billion Internet Users by 2020 Mobile only Internet Users Internet Users
  101. 101. Internet Scale • 350m users in 6 years • 950m users in 8 years • 100m users in 45 days?!?
  102. 102. Internet Scale Growth 2% of.. The Internet. Alexa rank #16 in the US
  103. 103. Internet Scale Revenue • Founded in July 2007 • Financed in July 2008 • Makes silly flash games • 2011 revenue $1.2 billion • Founded Nov 2008 • 2011 revenue $1.6 billion • Spams you deals of the day • WSJ “made $1 billion in sales faster than any other business, ever”
  104. 104. Years to reach $1 billion in revenue 10 9 8 7 6 5 4 3 2 1 0 1976 1984 1986 1994 1994 1995 1997 1998 2007 2008 Year of Incorporation
  105. 105. What does this all of this mean? The capital efficiency and growth rates of Internet business models are unprecedented.. in history.
  106. 106. What does this all of this mean? But.. are we ready for growth like this?
  107. 107. Of course, are they ready? Down 70% from IPO and 80% from peak
  108. 108. What does this all of this mean? How would you cope being a CEO of a company..that took 1 year to get fundingdid $1B in revenue in 2.5 years went IPO in its 4th year?
  109. 109. What does this all of this mean? Welcome to the technology industry.
  110. 110. What does this all of this mean? So what are you waiting for?
  111. 111. What does this all of this mean? The Future is Here.

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