Insights into what made Fundamo successful presented by Knife Capital, Keet van Zyl.

1. Keet van Zyl @KeetvZ @KNF_VC @KnifeCap
CASE STUDY

2. FIND MAKE
GROWREALISE

3. Technology to allow applications to run on all
smartphones across operating systems

5. Hannes van Rensburg
@Rensburg

6. FUNDAMO TIMELINE
Hannes = CTO of Sanlam
Fundamo = Well funded experimental project within SanlamPre 1999
1999
2000
Sanlam killed the project, not believing in the technology
Mobile phone transactions did not fit in with LT strategy
Hannes and the Dev team starts Fundamo
Sanlam sells them the IP in exchange for shareholding
Startup capital from Venfin [Remgro]
Thinly spread entrepreneurs
Lack of traction
Shrunk the business and protected the IP
Started in the dot com bubble
Product was ready before market was established

7. FUNDAMO TIMELINE
Bank pulls the plug
Near-ending of Fundamo2007
2007
2008
2009
2010
2011
HBD Venture Capital Invests R36m ~ 28% Equity Stake
M-Pesa growing fast in Kenya proving mobile payment concept
Fundamo gains traction in Southern Africa, East Africa, Nigeria
Explosive growth in Pakistan
Working capital challenges with cash tied up in Debtors
Playing field changing with big companies entering this space
Fundamo set up for exit and process run with partner universe
Exit to VISA for $110m
In 40 countries and over 10m registered subscribers
Inbound interest from prospective buyers

8. VC LEARNINGS
1. Back a maverick entrepreneur who is an expert in his/her field…
2. Trust him/her
3. Co-investment brings a dynamic mix of people with a vested interest
4. Vigorously protect IP
5. Build a culture of good corporate governance
6. Keep in tune with industry/ market forces
7. Bring the right advisors in at the right time
8. Prepare thoroughly for sell-side due diligence
9. Ethical business practices pay in the long-run
10. Build lasting relationships!

10. Keet van Zyl
@KeetvZ @KnifeCap
keet@knifecap.com
www.knifecap.com