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NORWEGIAN VENTURE CAPITAL CONFERENCE.
the playbook for david dating goliath and the psychology of numerology
@fractal-labs...
PARTNER.xxx
ME.Co-founder and CEO of Fractal Labs
DATA.Lower barriers to company creation; innovative crowd financing; exponential growth of data.
● 34% (and growing) of da...
UNDERSTANDING GIANTS.There are methods, motivations and metrics to the madness.
Source: Eddie Izzard, Death Star Canteen, ...
BUILD. Keeping the intellectual property in-house as a valuable strategic asset.
● there is always a resource trade off
● ...
BUY. Acquire talented teams; intellectual property; or market share.
● human resources are the engine
● speed and focus ma...
PARTNER.Support the ecosystem and cement a position in the market.
● ecosystem development is paramount
● be cautious of c...
xxxINVEST. Venture groups are increasingly using quantitative investment tools in the private market.
● data driven decisi...
UNICORN CLUB. Shoot for the stars, and you might hit the moon.
● 8 of 30 european unicorns are Nordic
● average Nordic val...
Source: Inc, December 2011
Length of Time Since Customer Registration
0%
%ofUsersReturningMonthly
10%
20%
30%
40%
50%
1 Ye...
● 110% revenue growth in the last 12 months
Source: Tomasz Tunguz, March 2014
STRATEGY.Cash is king, and different kingdom...
CASH IS KING.Accurate forecasting and cash management equates to greater success.
● financial literacy
is a must
● 7 engin...
FRACTAL LABS. Infrastrastructure and tools for data driven decisions.
● business simulation
● adaptive KPIs
● performance ...
fractal-labs.com
@fractal-labs
@nicholasheller
THANK YOU
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Fractal Labs @ the Norwegian Venture Capital Conference - June 2014

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the playbook for david dating goliath and the psychology of numerology

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Fractal Labs @ the Norwegian Venture Capital Conference - June 2014

  1. 1. NORWEGIAN VENTURE CAPITAL CONFERENCE. the playbook for david dating goliath and the psychology of numerology @fractal-labs @nicholasheller Trondheim, Norway | June 2014
  2. 2. PARTNER.xxx ME.Co-founder and CEO of Fractal Labs
  3. 3. DATA.Lower barriers to company creation; innovative crowd financing; exponential growth of data. ● 34% (and growing) of data in the digital universe is useful ● but only 7% is tagged ● and only 1% is analysed Source: Mary Meeker, KPCB, Internet Trends 2014
  4. 4. UNDERSTANDING GIANTS.There are methods, motivations and metrics to the madness. Source: Eddie Izzard, Death Star Canteen, YouTube Build1 Buy2 Partner3 Invest4
  5. 5. BUILD. Keeping the intellectual property in-house as a valuable strategic asset. ● there is always a resource trade off ● the strategic payoff is high ● don’t forget to dogfood and iterate metric to keep in mind >> short term revenue versus long term strategic objectives
  6. 6. BUY. Acquire talented teams; intellectual property; or market share. ● human resources are the engine ● speed and focus matter ● story tell with data metric to keep in mind >> cost of building in-house versus acquisition cost per head
  7. 7. PARTNER.Support the ecosystem and cement a position in the market. ● ecosystem development is paramount ● be cautious of changing tides ● understand partner’s metrics and motivations metric to keep in mind >> opportunity cost of resource allocation
  8. 8. xxxINVEST. Venture groups are increasingly using quantitative investment tools in the private market. ● data driven decisions ● metrics matter ● timing is everything examples of data driven investors >> include Google Ventures, Andreessen Horowitz, Greylock Capital
  9. 9. UNICORN CLUB. Shoot for the stars, and you might hit the moon. ● 8 of 30 european unicorns are Nordic ● average Nordic valuation $3b v $3.6b in the US ● Skype $8.5b, King Digital $5.1b, Spotify $4b, Rovio Entertainment $4b, Supercell $3b, Just- Eat $2b, Klarna $1.2b, Mojang $1b Source: The Nordic Web, June 2014
  10. 10. Source: Inc, December 2011 Length of Time Since Customer Registration 0% %ofUsersReturningMonthly 10% 20% 30% 40% 50% 1 Year 2 Year 3 Year DATA.Different business models have different key-performance-indicators. ● longer term success metrics ● customer lifetime value ● evernote.com example
  11. 11. ● 110% revenue growth in the last 12 months Source: Tomasz Tunguz, March 2014 STRATEGY.Cash is king, and different kingdoms require different coffers. ● box.com example ● profitability is -136%; burn rate is ~10x industry average; average customer value is $3,653, industry median is $59,600
  12. 12. CASH IS KING.Accurate forecasting and cash management equates to greater success. ● financial literacy is a must ● 7 engineers; ~$70k burn rate ● capital efficiency prolonged company life; provided enough time to be acquired ● Early stage start-up example
  13. 13. FRACTAL LABS. Infrastrastructure and tools for data driven decisions. ● business simulation ● adaptive KPIs ● performance benchmarking ● predictive analysis ● actuals vs budget ● company scoring ● red flags
  14. 14. fractal-labs.com @fractal-labs @nicholasheller THANK YOU

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