An shorter introduction to some of our favourite investment areas: Marketplaces, Software-as-a-Service and Ecommerce. Starting with different ways of monetization, we dip into the major characteristics, address critical challenges and single out the KPIs you should keep an eye on. As presented in Startit Fest in Belgrade, http://startit.rs/

1. Business models 101
The basis of SaaS, Marketplaces & eCommerce
@rodrigoMrzBelgrade, May 2014

2. Agenda
0. Intro to Point Nine
1. Marketplaces
2. SaaS (Software-as-a-Service)
3. Ecommerce
a. Major characteristics
b. Monetization
c. Key challenges
d. Top 3 KPIs
e. Examples & Trends
@rodrigoMrz

3. Intro to Point Nine Capital
@rodrigoMrz | rodrigo@pointninecap.com
• Berlin-based, investing in Europe
• 40mEur fund, focus in seed & series A
• SaaS and Marketplaces
*CJ
@rodrigoMrz

4. Funding sources
Idea Startup Early Maturity Growth
Clients
Crowdfunding
F&F
Accelerators
Angels
Fondos VC
Private equity
IPO
Debt
$
@rodrigoMrz

5. 3 business models
Supply Demand
%
Software Users
$
Product Customers
$$
Getting a commission for
intermediating between
supply and demand
Marketplace
Charging users for
accessing a software
SaaS
Selling products to customers
and getting a margin for it
eCommerce
@rodrigoMrz

6. 1. Marketplaces
@rodrigoMrz

7. Marketplaces (i) – intro
Challenges
• Generate liquidity
• Chicken and egg
• Monetization timing
Characteristics
• B2B / B2B2C / B2C / C2C
• Inventory vs digital
• Network effects
Supply Demand
%
@rodrigoMrz

8. Marketplaces (ii) – key metrics
When you start
• Supply: # of new/cumulated
listings
• Demand: growth in sign-ups
• Active Users (buyers / sellers)
• # Transactions
In the next phase
• Recurring customers
• Successful items/listings per
total
• Take Rate (% as of GMV)
@rodrigoMrz

9. Marketplaces (iii) – examples
Full-stack
Digital marketplace
1-click booking
Mobile-first
Peer2peer
Pioneers
@rodrigoMrz

10. 2. Software as a Service (SaaS)
@rodrigoMrz

11. SaaS (i) – intro
Challenges
• Product development
• Marketing
• Conversions
Characteristics
• B2B / B2C
• Subscription
• Quality / Speed of product
• Cloud (no maintenance)
• Upfront payments
Software Users
$
@rodrigoMrz

12. SaaS (ii) – key metrics
When you start
• Inbound traffic
• Conversion funnel
• Churn
In the next phase
• MRR growth
• CAC: Only paid; for
each channel
• Churn!
@rodrigoMrz

13. SaaS (iii) – examples
Horizontal
Mobile-first
Platforms
Pioneers
Consumerization
Vertical
@rodrigoMrz

14. 3. eCommerce
@rodrigoMrz

15. eCommerce (i) – intro
Challenges
• Marketing costs
• Operations
• Competition on price
• Rocket Internet ;-)
Characteristics
• B2C / B2B
• Margins
• Own vs drop-shipping
Product Customers
$$
@rodrigoMrz

16. eCommerce (ii) – key metrics
When you start
• CPO
• Margins
• AOV
• Revenue growth
In the next phase
• Recurring purchase
• Free-cashflow
• Inventory
@rodrigoMrz

17. eCommerce (iii) – examples
Flash-sales
ReCommerce
Online brands
Pioneers
Hardware
@rodrigoMrz

18. If you want to stay in touch …
www.pointninecap.com
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@rodrigoMrz | @PointNineCap
rodrigo@pointninecap.com
Thanks!