Presentation at London Business School - Hi-Growth Technology and the Industrial revolution 2.0

1. An Evening With The Forsyth Group
Hi-Growth Technology and the
Industrial Revolution 2.0
Brett Putter
Managing Partner - Forsyth Group
@brettonputter

2. Industrial Revolution 2.0 - Drivers
•New technologies
- Lower cost & quicker to implement
•Experienced executives
•Availability of investment
•Social / viral networks
•Market size – billions of people connected
•Every analogue business can & will be disrupted

3. IPO – No. 1 social game
Multi $Bn valuation Fastest web site to
& Profitable get to 10m users
Raised $100m
The world’s most
valuable company $35m D VC round
Raised $24m in 2011
Raised $4m A round
$105m Revenues in 2011
IPO!!
Raised $1.8m A round

5. What’s Hot
• Mobile Apps
• Online Publisher Solutions
• Big Data
• Cloud / SaaS / PaaS
• Social Commerce
• Social Media & Social Games
• Social Search & Recommendation

6. The 7 Life Stages of a Company
Which company stage is right for you?

8. 1. Early Stage
• Idea - Proof of concept / product in alpha
• Little / no funding – friends and family
• $0 to $50k to $200k
• No salary
• 1/2/3 in team
• No revenues
• Opportunity for “co-founder” equity
• Very HIGH risk .

9. 2. Seed Stage
• Product into beta stage – need to prove traction &
business model
• $100k to $1m – Angels / Accelerators / VCs
• Limited salary
• 4/5 in team
• No revenues (small if any)
• Opportunity for sizable equity involvement
• HIGH risk

10. 3. VC Stage “A”
• Proof of product market fit and business model
• VCs invest - $1m to $5m - “A” round of funding
• VCs bring in senior management
• Market related salaries
• Team building <10 to approx 20
• Some revenues
• Stock options - 1% or less
• Still pretty risky

11. 4. VC Stage “B/C/D”
• Expand product range
• VCs invest - $10m + (multiple)
• Market related salaries
• Team grows to 100+
• Significant revenues & scaling fast
• Internationalisation
• Stock options < 0.5%
• Significantly less risk

12. 5. Towards IPO / M&A Exit
• Multiple products
• VCs exit
• Top exec’s salaries increase
• Team grows to 1000+
• Significant restrictions and internal politics
• Internationalisation
• Small stock option grants annually
• Significantly less risk

13. 6. Legacy Technology Companies
• Big, inflexible, flat lining, growth by acquisition
• Team size 10,000+
• Multiple products
• Significant frustrations
• Stock option grants annually
• Significantly less risk

14. Variables
• Meaningful impact
• Stage
• Team
• Funding
• Product
• Traction
• Revenues
• Remuneration – Google cut
• Stock options / equity
• Risk

15. Rewards
• Co-founders 5% to 25% +
• Employee / service providers

16. Due Diligence
• Team
• Funding
• Product
• Market
• Investors

17. VC Firms

18. Hi-Growth Technology Environment
• Investors have a lot of say
• IQ – high intellect
• Speed of execution & change
• Driven by technology & innovation
• Extreme environment - pressure
• Winner takes all
• Risks & rewards

19. What Companies Are Looking For
• Right attitude
• Drive, passion, energy, commitment,
perseverance, determination, belief
• Get things done with limited resources
• Match to the culture of the company
• Skills / experience

20. London
Berlin
San Francisco
New York
Global Opportunity

21. London Tech Scene
• Hot
• Silicon RoundAbout
• TechCity / Government
• Networking events
– Silicon DrinkAbout, OpenCoffee, Product Tank,
London Web Summit, Seedcamp etc
• Universities, Management Schools
• Most top VCs have offices in London

22. Join the Industrial Revolution 2.0!
Bretton Putter
Forsyth Group
Email: brett@forsythgroup.com
Twitter: @brettonputter Questions?