New ideas for 2011

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New ideas for 2011

  1. 1. Dave McClure's Investment Thesis Rostyslav Chayka www.rchayka.com @rchayka
  2. 2. Agenda <ul><li>Consumer internet startups auditory </li></ul><ul><li>Problem is process </li></ul><ul><li>Easy prototype </li></ul><ul><li>Online distribution channel </li></ul><ul><li>Business models and payments </li></ul><ul><li>Seed investments </li></ul>
  3. 3. World internet auditory <ul><li>Population - 6,845,609,960 </li></ul><ul><li>Internet users - 1,966,514,816 </li></ul><ul><li>Penetration – 28.7 % </li></ul><ul><li>Online spending – $500B </li></ul><ul><li>World GDP - $70 000B </li></ul>
  4. 4. Internet auditory Word region Population Internet users Penetration Africa 1,013,779,050 110,931,700 10.9 % Asia 3,834,792,852 825,094,396 21.5 % Europe 813,319,511 475,069,448 58.4 % Middle East 212,336,924 63,240,946 29.8 % North America 344,124,450 266,224,500 77.4 % Latin America 592,556,972 204,689,836 34.5 % Oceania 34,700,201 21,263,990 61.3 % World total 6,845,609,960 1,966,514,816 28.7 %
  5. 5. Ukraine <ul><li>12.6M internet users </li></ul><ul><li>Penetration – 32% </li></ul><ul><li>Internet advertising – $40M </li></ul><ul><li>E-Commerce – $500M </li></ul>
  6. 6. Problem is process <ul><li>Internet users always have problems </li></ul><ul><li>Some used to solve it by Google </li></ul><ul><li>Some are ready to pay </li></ul><ul><li>Industry are changing very quickly </li></ul><ul><li>New problems appear </li></ul>
  7. 7. Easy prototype <ul><li>Website or service </li></ul><ul><li>Open source </li></ul><ul><li>Hosted in cloud </li></ul><ul><li>Developed in 2-3 months (weekend) </li></ul><ul><li>Small team (1-5 developers) </li></ul><ul><li>Test and iterate in real time </li></ul><ul><li>Real online customers </li></ul><ul><li>Mashup & build on top of old services </li></ul>
  8. 8. Online marketing <ul><li>Paid and organic (SEM/SEO) on Google </li></ul><ul><li>New media platforms (Facebook, Twitter, YouTube) – viral / social </li></ul><ul><li>Mobile platforms (IPhone, Android) </li></ul><ul><li>Easily reach 100M-500M users </li></ul><ul><li>Low cost & measurable marketing campaigns </li></ul>
  9. 9. Business models and payments <ul><li>Variety of online payments </li></ul><ul><li>Different business models: </li></ul><ul><ul><li>Digital goods </li></ul></ul><ul><ul><li>Subscription billing </li></ul></ul><ul><ul><li>Lead generation </li></ul></ul><ul><ul><li>CPM/CPC/CPA advertising </li></ul></ul>
  10. 10. Seed investments criteria (Product): <ul><li>$0-100K </li></ul><ul><li>0-6 months development </li></ul><ul><li>Minimum Viable Product aka MVP </li></ul><ul><li>Functional & useful for a few customers </li></ul>
  11. 11. Seed investments criteria (Market): <ul><li>$100K - $2M </li></ul><ul><li>Distribution channels </li></ul><ul><li>Scalability </li></ul><ul><li>Customer acquisition cost </li></ul>
  12. 12. Seed investments criteria (Revenue): <ul><li>  $1-5M investment </li></ul><ul><li>6-24 months to get to cash-flow positive </li></ul><ul><li>Can be sold for $25-$250M </li></ul>
  13. 13. 10 copycats ideas <ul><li>Gist.com </li></ul><ul><li>Expensify.com </li></ul><ul><li>RedBeacon.com </li></ul><ul><li>PlanCast.com </li></ul><ul><li>Blippy.com </li></ul>
  14. 14. 10 copycats ideas <ul><li>SalesForce </li></ul><ul><li>Vente-Privee </li></ul><ul><li>Betfair </li></ul><ul><li>HomeAway </li></ul><ul><li>Yelp </li></ul>

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