ShoutEm - It's alright to pivot


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Prezentacija "ShoutEm - It's alright to pivot" koju je Luka Abrus održao na How to Web Belgrade konferenciji 16. juna 2011. godine u Beogradu.

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  • Facebook & Twitter – unprofitable in the beginning but huge VC backup
  • ShoutEm - It's alright to pivot

    1. 1. ShoutEm story It’s alright to pivotLuka AbrusFive Minutes CEOShoutEm Member of the board<br />1<br />
    2. 2. How it all started.<br />Five Minutes development team<br />Web development company, 2 guys<br />Product oriented at first - Pticica, Trosjed…<br />Standard issues with local market<br />In a nutshell, too low ROI<br />Custom mobile & web apps<br />Service oriented<br />Global product developed in parallel<br />2<br />
    3. 3. First steps.<br />Two key motivators<br />Google Android and Ning platform<br />Huge potential for Mobile Social Networking?<br />First idea: “Mobile Ning” (without the mobile)<br />Anyone can create their own community<br />Schools, sport clubs, companies…<br />Twitter simplicity<br />Web-only microblogging<br />Launched on LeWeb 2008<br />3<br />
    4. 4. Web. <br />4<br />
    5. 5. (No) Funding.<br />How to continue the development?<br />Finance it internally from other projects<br />5 people team / company<br />Working weekends, holidays, long hours…<br />Number of users rising, but no money<br />Trying to find VC’s and large customers<br />“Invest in lines, not in dots”<br />5<br />
    6. 6. First pivot.<br />Technology oriented – move to mobile<br />Smartphone platform growth<br />ShoutEmApp – unified app for all communities<br />Year 2009 – year of learning<br />Networking, development, pitches, competitions<br />Number of users growing – freemium model<br />No conversion from free to paid, no profitability<br />6<br />
    7. 7. Misleading number of users.<br />7<br />
    8. 8. Epiphanies. Three of them!<br />People are willing to pay for their branded apps<br />One blog post briefly mentioned customized apps<br />Huge interest – we picked a few & built them<br />Community management crucial for success<br />Examined 30.000+ networks on ShoutEm, very few active<br />Build networks around existing sites and content<br />Majority of mobile apps are pretty similar<br />Huge interest for mobile apps – 400.000+ in iTunes<br />Typical costs 10-50k USD<br />News, Events, Community, Location, Podcasting, Photos, Videos…<br />8<br />
    9. 9. Idea. Pivot. Investment.<br />Second pivot was business oriented<br />What if we could…<br />Create a standardized app that fits 75% needs <br />Sell it for 50-100$ per month<br />Do it as a self-service model and scale it<br />Build on top of current code base<br />RSG Kapital investment, VC from Ljubljana<br />They monitored us for two years<br />Five Minutes team grew to 25 people <br />100% YoY growth, worldwide clients<br />1.2m USD funding in August 2010<br />9<br />VC funding<br />
    10. 10. New web. <br />10<br />
    11. 11. Interface.<br />11<br />
    12. 12. How did we use the investment?<br />Opened up London and New York offices<br />Hired sales representatives (Seedcamp network)<br />Boost up the development<br />Optimizing features, user experience, process…<br />Hiring only the best<br />And “restructuring” the rest<br />Speed up the sales process<br />Enterprise and lighthouse customers<br />Self-service is good, but…<br />12<br />
    13. 13. Today.<br />Five Minutes<br />35 people, services &product business<br />ShoutEm<br />Sales. Sales. Sales. New York!<br />10 people<br />Series B?<br />13<br />
    14. 14. Pivoting 101<br />Everyone does it.<br />YouTube, Nokia, 3M, Twitter, PayPal, Flickr, Seesmic…<br />Natural process of evolution.<br />Everyone will doubt you.<br />The team.<br />The partners.<br />The community.<br />You.<br />14<br />
    15. 15. That’s it.<br />Luka Abrus<br />Five Minutes CEO<br />15<br />