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[PreMoney MENA 2015] Connect Ventures >> Sitar Teli, "Why UX Is A Good Investment"

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Sitar Teli, Managing Partner, connect ventures

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[PreMoney MENA 2015] Connect Ventures >> Sitar Teli, "Why UX Is A Good Investment"

  1. 1. @sitarSitar Teli Investing in Product and User Experience-Focused Companies: Why and How Pre-Money MENA December 2015
  2. 2. @sitarSitar Teli • American, live in London • 35 • VC for 10 years • Previously with Doughty Hanson Technology Ventures • Connect Ventures • London-based seed fund • Focused on Europe • £300k-£1m • 23 investments, 19 active • CVI: £21m • CVII: £41m
  3. 3. @sitarSitar Teli • Highly focused seed strategy: 7-8 investments per year • We like to lead deals and are often the first and sometimes only investor • Three necessary conditions: • Strong founder/market fit • Mission-led founders • Focus on product and user-experience from the beginning
  4. 4. @sitarSitar Teli Platforms SaaS Networks Product User Experience Marketplaces
  5. 5. @sitarSitar Teli “All aspects of the end-user’s interaction with the company, its services, and its products. The first requirement for an exemplary user experience is to meet the exact needs of the customer, without fuss or bother. Next comes simplicity and elegance that produce products that are a joy to own, a joy to use.” - Nielsen-Norman Group
  6. 6. @sitarSitar Teli
  7. 7. @sitarSitar Teli
  8. 8. @sitarSitar Teli
  9. 9. @sitarSitar Teli VS Significantly better business value
  10. 10. @sitarSitar Teli Engagement Loyalty Virality/Referrals
  11. 11. @sitarSitar Teli More Sign-ups, conversions, etc Engagement Virality Brand Revenue Less Churn Cost Customer complaints
  12. 12. @sitarSitar Teli
  13. 13. @sitarSitar Teli • LEARN: About user experience. Start with your own daily frustrations, both technology-related and not. • BEFORE: Use the product, try the prototypes, ask to see wireframes of the product. • Great user experience focuses on providing value to the user, not extracting value for the company. • Example: Sign-up or on-boarding flow. • DURING: Start with the product, not the presentation. • TEAM: Look for • founding teams that include: user-experience or interaction designers, product managers, product designers • founders with empathy for their users
  14. 14. @sitarSitar Teli
  15. 15. @sitarSitar Teli • Not all companies gain (enough of) an advantage by initially focussing on product and user experience. • Many businesses gain a greater advantage simply by raising more capital, which enable them to grow faster and dominate a market, discouraging investment in competitors • Offline services - delivery, cleaning, transport • eCommerce and other low-margin businesses • A focus on product and UX generally applies to mature technologies, like Internet/mobile companies. Several interesting investment areas such as biohacking, VR and autonomous vehicles are nascent technically (i.e., this presentation doesn’t apply).

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