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Crazy Town investor deck 10/2017

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Public investor deck for Crazy Town Oy, www.crazytown.fi

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Crazy Town investor deck 10/2017

  1. 1. We are building a community for freelancers, solopreneurs, micro-sized companies and startups, who want to go further together rather than alone INVESTOR DECK 10/2017
  2. 2. Crazy Town is ”a start again” with history since 2002, we know how to run a community & co-working environment 2002-2015: a serious hobby, one of the first co-working spaces in Europe 2015: restart - from hobby to business 2016: ownership arrangements, decision to scale up
  3. 3. Freelancers, solopreneurs, micro-sized companies and startups are the future of work These customers need more than just an office space with walls. MARKET NEED
  4. 4. Average Crazy Town member* • 300 000 EUR turnover • company size 2,8 people • 93% growth-orientation • 85% cooperates with another CT member • Average age between 35-40 years • Heterogenous - everything from ICT, marketing, public sector, university, design, consultation and business services to manufacturing * based on Crazy Town Jyväskylä member survey 12/2016
  5. 5. HOTDESK FIXED DESK TEAM TEAM PLUS Full membership offering Full membership offering Full membership offering Full membership offering 24/h access to common areas, no deposit, one month notice period Own desk, 24/h access to common areas Own room, 24/h access to common areas, 3 month deposit Big room, 24/h access to common areas, 3 month deposit Pricing per person Pricing per person Pricing per organization Pricing per organization 195 EUR 
 + VAT / month 290 - 320 EUR 
 + VAT / month Starting from 590 EUR + VAT / month Starting from 790 EUR + VAT / month Membership packages Regardless of your membership package, you always get 24/h access to common areas, meeting rooms and event spaces, as well as access to all Crazy Town communities - free of charge
  6. 6. OUR OFFERING A supportive community, where entrepreneurs help each other New tools and knowledge, more learning, events for members, A network of partners, joint- projects and other opportunities Co-working space and infrastructure, access to all locations
  7. 7. Main customers for physical memberships Examples of different types of Crazy Town members Physical Crazy Town memberships have 3 types of main customers: • startups: growth-orientation, international from the get- go, seek for ecosystem and partners that can help them to achieve that • microsized companies: no interest to grow beyond 9 people, can provide business services for other members and participate in joint-projects • solopreneurs and freelancers: joint-projects with others, look for new knowledge and moral support Also bigger organizations and companies with need for flexible branch offices are increasingly interested in us.
  8. 8. Currently, Crazy Town operates three locations across Finland. We already have over 
 100 member companies with roughly 350 professionals. HÄMEENLINNA 350 m2 space JYVÄSKYLÄ 600 m2 space TAMPERE 1050 + 500 m2 space, opened in April 2017 Our own co-working and office space is only a small part of the offering - we want to deliver co-working as a service for others as well
  9. 9. Customer traction: memberships 0 50 100 150 200 250 300 8/2015: Reboot 1/2016 6/2016: O w nership arrangem ents 1/2017: H äm eenlinna ram p-up 4/2017: Tam pere launch 7/2017 Member companies at CT People in CT community High customer retention and loyalty - because our members aren’t just switching office space, but also work community, colleagues, partners and customers, they stick with us for years
  10. 10. Sales development 0 € 15 000 € 30 000 € 45 000 € 60 000 € June,2016 July,2016 August,2016 September,2016 October,2016 November,2016 December,2016 January,2017 February,2017 March,2017 April,2017 May,2017 June,2017 Sales / month
  11. 11. We expand beyond co-working spaces towards co-working as a service Memberships at Crazy Town locations Virtual memberships * Ecosystem partnerships Consulting Services brokering * Powered by CT * 100% scalableDifficult to scale Investments made for the needs of physical memberships build a base for 100% scalable business models PRODUCTS in production under development future opportunity
  12. 12. Crazy Town community managers (and sales force!) Our team & roles CEO, Founder
 Entrepreneur since 1997 Partner, expert in marketing & conceptualization Ecosystem partnerships & consultation projects
  13. 13. Our ”secret sauce” is our ability to create a truly business- and peer-learning focused community that’s more than just walls We focus on community-driven approach, from weekly events to helping our members to partner with another Each unit is has its own Crazy Town community manager, who helps our members to learn, grow and do business together. It’s informal, but focus is always on business and growth. Why our co-working locations are different?
  14. 14. Focus on real estate or space Focus on community Competition for physical memberships / co-working Focus on early stage business Focus on established businesses Typical acceleratorLibraries, other free spaces & other student societies Typical co- working space
  15. 15. GROWTH
  16. 16. EXTREMETRANSLATION & MARKETING CT HÄMEENLINNA CT JYVÄSKYLÄ CT TAMPERE HELSINKI REGION PARTNERS In Cooperation Selected members
  17. 17. CT HÄMEENLINNA CT JYVÄSKYLÄ CT TAMPERE CT KAMPPI Partner locations and networks CT KUOPIO Powered by CT Mikkeli? Powered by CT Äänekoski CT LAHTI Winter 2017-2018 POHJANMAA This is how it could look like! • New units and Powered by CT units • Training program (Y-Koulu) for entrepreneurs in cooperation with Fennia
 • #digirockstars accelerator / VC fund events at CT Tampere • Crazy Town Tampere & Hermia Business Development connect to +300 identified business needs in China • Cooperation with Finnish investors and startup activists Peter Vesterbacka & Kustaa Valtonen • Cooperation with University properties of Finland on ”Campus Crazy Town” model
  18. 18. Q1-2/2017 Learning 
 how to expand DEVELOPMENT TRACK: 2017-2018 Q3-4/2017 Building 
 the foundation 
 for growth Q1-2/2018 Gaining 
 momentum Q3-4/2018 First international operations - Two new units
 - Marketing automation ready
 - First national ecosystem partner - 2-3 new units
 - Development and test-launch for Virtual/ Tribe Membership and Powered-by-CT - Clarifying internal processes & tools - 4-5 new units
 - Starting international ecosystem partner search - Preparing Tekes internationalization funding - First international unit
 - Second funding round
  19. 19. Members and revenue 2016-2020 Members 0 2 000 4 000 6 000 8 000 10 000 Revenue 0 € 2 000 000 € 4 000 000 € 6 000 000 € 8 000 000 € 10 000 000 € 2016 2017 2018 2019 Total revenue Members Virtual + "Powered by" members
  20. 20. TOTAL MARKET IN FINLAND FOR MEMBERSHIPS Number of potential customers 
 ( low-end estimate ) How much customers spend annually? Total market size 1 % of total market 5 % of total market Virtual membership fees 800 000 648 € 51 840 000 € 518 400 € 2 592 000 € Crazy Town membership fees 800 000 2 100 € 1 680 000 000 € 16 800 000 € 84 000 000 € Workforce in Finland: 2,46 million individuals. Out of the total workforce, 50-60% do knowledge-intensive work and 30% location independent work. Total market size in Finland: 738 000 - 1 200 000 individuals Another market consists of a rapidy expanding network of other co-working and co-creation locations, who can be our partners and customers for a ”Powered by CT” service
  21. 21. Phases 2017 GROUNDWORK 
 FOR SCALABLE 
 GROWTH 2018 LAUNCHING SCALABLE GROWTH 2022 EXIT TOPICS: • Developing the concept • ERP and internal processes • Virtual market place • Product development: Virtual membership, Powered by CT • Stronger position in Finland, new units FUNDING: • First funding round • ELY funding TOPICS: • Launching new scalable products • New units & partnership • First international partner / pilot customer FUNDING: • Second funding round (1 MEUR) • Tekes or Horizon 2020 project See next slide for examples of possible buyers
  22. 22. Expanding co- working / co- creation chain Who could buy us in 5 years? (+examples) Real-estate player, looking for a tested concept Accelerator and similar business developer looking for our client base B2B provider seeking new markets / customers Buying our community & content
  23. 23. FINANCIALS We are looking for 300 € / share max. 700 shares 700 shares x 300 € = 210.000 € = 23,3 % ownership
  24. 24. FUNDING PLAN, first round 2017 Where to use it? 80 €k 90 €k 50 €k 50 €k Marketing Opening Tampere Opening 2-3 more units in Q3-Q4 Software and infrastructure (virtual memberships, Powered by CT) Where to get it? 210 €k 60 €k ELY Angels & Crowdfunding New unit establishing costs Launch phase - work hours (location scouting, planning, scouting, events, recruiting): 15 000 - 20 000 EUR Losses incurred during the first 6-12 months - depending on the size of the unit and possible discounts from the landlord, cumulative losses 20 000 - 40 000 € Other capital needs - repairs and renovation: 0 - 200 000 €, capitalized as part of the rent - furniture and equipment (150-200 € / m2), leasing - deposit 0 - 50 000 € (we also collect deposit from our members, so an equal sum will accumulate during the first year; however this effects working capital)
  25. 25. OWNERSHIP Ownership currently 48 % 35 % 17 % Business Arena Oy (400 kpl) Toni Pienonen (800 kpl) Mikko Markkanen (1100 kpl) Ownership after new shares 23 % 37 % 27 % 13 % Business Arena Oy (400 kpl) Toni Pienonen (800 kpl) Mikko Markkanen (1100 kpl) New shares (700 kpl)
  26. 26. Mikko Markkanen, Crazy Town Oy co-founder, CEO 040 758 8712 mikko.markkanen@crazytown.fi www.crazytown.fi www.facebook.com/crazytownoy twitter.com/crazytownoy

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