Flip - The Art & Science of Flipping Tech Businesses
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The document discusses the acquisition history of a social media company founded in 2009 that had 110M global users by 2009, mostly in Asia. It was acquired by MOL Global in 2009 for $39.5M, despite having been previously offered $30M by Google in 2003. MOL Global received a good return as the company had 3.1M Facebook shares that were worth $40/share at Facebook's IPO. The company later pivoted to e-commerce and was sold in parts until being shut down in 2013 due to rapid spending. The document also discusses different technology areas and a company developing tracking devices for small aircraft and vessels.
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Flip - The Art & Science of Flipping Tech Businesses
- 5. 110M global users, with 75M in Asia in 2009 Was worth $98M to $273M at that time Bought by MOL Global in 2009 for $ 39.5M Offered $30M by Google in 2003 – now $200M
- 6. How was it able to wiggle out for $39.5M?
- 8. Was MOL Global happy after the buyout?
- 10. + 3.1 Million in Facebook shares @ $40/share in IPO
- 11. Was it a good flip?
- 13. From Social to E-commerce
- 14. After a $40M buyout of 80% of the company
- 15. 11M global users, mostly in PH & Ind in 2013 Was reportedly sold at $40M (80% stake) Sold 20% for an undisclosed amount in 2012 Closed in 2013 because of its rapid burn rate
- 16. Was making huge revenues in advertising But last CEO decided to shut off that rev stream INSIDER STORY Till the end, no transaction fees. No revenues.
- 17. LESSONS?
- 25. WHICH TECH? Fintech Travel tech Food tech Real Estate tech Health tech
- 27. FAME Transponders for Small Aircraft and Small Maritime Vessels Futuristic Aviation and Maritime Enterprise, Inc.
- 29. OUR PRACTICAL SOLUTION FAME gateways Cloud FAME platform Mobile App Customizable Track and monitor in real-time Durable Independent messaging
- 30. Ideaspace winner in 2015 MVP done; validations started in 2016 Further validations & dev’t slowed by mid 2016 Capital dried up by end of 2016
- 31. Capital infusion by January 2017 Fresh strategies, go2market, focused dev’t Closed sales, grants, partnerships & deployments Established Taiwan office (2018), Singapore (Feb 2019) Series A-ready by mid 2019 (1st investment round)
- 42. CUSTOMER JOURNEY DIGITAL TOUCHPOINTS
- 43. DIGITAL + PHYSICAL TOUCHPOINTS
Editor's Notes
- Just like starting a business from scratch, flipping one takes a considerable amount of money and energy. It also takes experience. According to a survey from BizBuySell, a major portion of small businesses up for sale will be passed on to buyers who have business ownership experience. If you hope to make it flipping businesses, you should be prepared to compete with these individuals for a shot at the opportunities with the greatest potential. When assessing a potential business flip, consider the following before jumping in:
- One of the biggest mistakes you can make is buying a business because you've always wanted to be in a certain industry. Just because you’ve dreamt of it doesn’t make it a good idea — in fact, it means you’re much more likely to ignore the warning signs telling you it’s a bad idea. Understand and accept the fact that, in business, your heart is a siren that can cause you to shipwreck. When money is on the line and risk is involved, following your head is the only acceptable route. Look for a good investment that needs minimal work to produce returns, not a pet project that’s going to keep you interested while it leaks money for the next decade. For instance, before AJC Ventures LLC bought the FoodMart grocery store in Elizabeth, West Virginia, it made clear there was potential to turn a profit, not just provide a public service. As the town’s only full-service grocery store, the business was a mainstay for local customers. It also helped that the state’s venture capital fund chipped in on the purchase. Keep in mind that the best opportunities offer significant cash flow, not just major assets.
- The chasm exists because after a certain point of selling your product to early adopters you reach a sales plateau where your next stage of growth is to take the product to the masses. In the book, Moore argues that the fundamental issue entrepreneurs and product managers face when trying to cross the chasm is the fact that while early adopters are okay with incomplete features and early stage technologies in general, the early majority is pragmatic and will only accept the product once it solves a current problem they face. To them the product musT represent a practical improvement to what they do – not merely promises of future ROI potential.