The document discusses key considerations for technology startups, including 6 questions entrepreneurs should answer about their product, market, team, investment requirements, and exit strategy. It emphasizes the importance of solving a significant problem, clearly defining the target market size and competition, trusting the capabilities of the founding team, and doing thorough homework before approaching investors to secure funding. Entrepreneurs are advised to advance their idea into a product and prove its potential without funding if possible, as it builds credibility and reduces dilution of the founder's ownership.

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Technology startups:
how to and lessons learnt
Chania 05/02/2016
Apostolos Apostolakis

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ENTREPRENEUR – ANGEL INVESTOR

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…LEADING TO ADVISING A VC
A Venture capital firm specializing in
SAAS , e-marketplaces and Adtech

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AGENDA
HOW TO DECIDE ON A VENTURE
LESSONS LEARNT/ SUGGESTIONS FOR ENTREPRENEURS

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6 QUESTIONS TO ANSWER
1 What is the product
2 Pain solved/benefits of product
3 Market size/competition
4 Team
5 Go to market plan/Investment required
6 Exit

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1 WHAT IS THE PRODUCT
Short and to the point description
 Everyone is lazy with limited attention span
Elevator pitch
What is e-table.gr?
It is a web and mobile service that allows you to discover new
restaurants, gain discounts and reserve a table with instant confirmation

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2 WHAT IS THE PAIN SOLVED/ BENEFITS
CONSUMER
Discovery
Screened and rated
beauty salons
Convenience
BEAUTY SALONS
New Customers
Brand management
Reservation
management (CRM)

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I LIKE PRODUCTS THAT SOLVE
SIGNIFICANT PROBLEMS
Importance of problem solvedLow High

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3 MARKET SIZE AND COMPETITION
Market size
 13,000 taxis In athens :200,000 daily rides
10% penetration means market is 20,000 rides per day
 Revenue per ride @0,75euros annual projected
sales @5 mil euros
Competition
 Radio dispatchers
 Consumer habits

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4 TEAM
BEFORE STARTUP DURING STARTUP

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4 TEAM
1 Complementary skills
 ΙΤ (Web development)
 Marketing
 Sales/Business development
2 Trust the team regarding
 Capabilites
 Ethos
 Commitment to the project

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WHAT AN INVESTOR LOOKS FOR IN A
FOUNDER
FOUNDER SHOULD HAVE THE SKILLS
To build a 10-20 million euro business
To hire (and fire) and motivate 20-50 people

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SOFT SKILLS BUT MOSTLY CHARACTER

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5 GO TO MARKET PLAN
Product development
• Web/mobile development
Marketing and Sales plan
• Sales to the consumer
• Sales to build merchant supply
Operations plan
• Customer support
• Merchant support

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5 REQUIRED INVESTMENT
Web and mobile platforms 50,000 euros
Sales to doctors 30,000 euros
Marketing to consumers 70,000 euros
Running expenses until first milestone 50,000 euros
Total angel round investment 200,000 euros

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6 EXIT
Sale to industry player
Sale to a private equity
IPO (for multinational companies)

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AGENDA
HOW TO DECIDE ON A VENTURE
LESSONS LEARNT/ SUGGESTIONS FOR ENTREPRENEURS

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CAPABILITY- AMBITION - OPPORTUNITY
All people
Driven/ risk taker
Capable
Willing to Pursue a big opportunity

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REVENUE CUTOFFS BASED ON INVESTOR
Investor Type Revenue potential cutoff
Family 0<
Friends/ Individual Investors 1,000,000<
Angels 5,000,000<
National Venture capital 20,000,000 <
International Venture Capital 50,000,000<

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LOCAL IS SMALLER BUT EASIER…
Revenue
Potential
Effort required (capital, resources, stress )Low High
High

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REVENUE CUTOFF FOR INVESTORS
Revenue
Potential
Effort required (capital, resources, stress )Low High
High
Cutoff

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THEN CHOOSE YOUR INVESTOR
Based on
1) Relevancy (industry /functional experience)
2) Capital availability (follow ons)
3) Chemistry

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IF YOU APPROACH AN INVESTOR DO NOT…
1) I have an Idea…
2) I don’t know how big this is
3) I don’t if there is competition
4) I cant find team members

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DO YOUR HOMEWORK…
Idea/Product
Market size
Go to market plan
Operational needs + Capital needs

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… IT SHOWS RESPONSIBILITY TO YOURSELF
AND YOUR LISTENER
Build credibility
Respect other people’s time
CREATE A CONCISE PRESENTATION

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CLEARLY DEFINE YOUR MARKET
TOTAL taxi market
in Greece
Is 500 mil euros
Intermediati
on market
@10%
50 million
Market
share
@10%
5 mil
Actual market
size
Total market
Expected
revenue

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AN IDEA IS WORTHLESS

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IF EXECUTED POORLY

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ADVANCE YOUR IDEA TO PRODUCT
ON YOUR OWN
Seek funding at the latest possible stage
Faith in your product
Less dilution

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KEEP IN MIND
Startup is a marathon sprint
Persistence and insistence

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IT TAKES TIME …
2 years
1 year

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RESOURSES
Angelist (investment presentations)
Crunchbase (valuations)
A16z.com (knowledge)
Ycombinator (knowledge)
Clarity.fm (expert advice)
Competition news and analyses

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USEFUL SERVICES
Mail marketing and marketing automation
Referal programs and growth hacking
Facebook management campaigns

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YOU WILL OVERCOME THE ROADBLOCKS
Success
Time
Temporary
low points/
fails

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