The document discusses strategies that large companies use when dealing with startups, including building technologies in-house, acquiring startups, partnering with startups, and investing in startups. It also discusses metrics for evaluating these strategies such as short-term revenue versus long-term strategic objectives. Additionally, it provides examples of successful European tech startups that have achieved "unicorn" status with billion dollar valuations.

1. NORWEGIAN VENTURE CAPITAL CONFERENCE.
the playbook for david dating goliath and the psychology of numerology
@fractal-labs
@nicholasheller
Trondheim, Norway | June 2014

2. PARTNER.xxx
ME.Co-founder and CEO of Fractal Labs

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. UNDERSTANDING GIANTS.There are methods, motivations and metrics to the madness.
Source: Eddie Izzard, Death Star Canteen, YouTube
Build1
Buy2
Partner3
Invest4

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. 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. 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. 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. 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. 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. ● 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. 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. 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. fractal-labs.com
@fractal-labs
@nicholasheller
THANK YOU