25. Innovating
or
Growing
Sustainable
businesses,
projects and
Pitch on
communities
ďź Online www.Bloomvc.com
ďź Light Touch
ďź Big Impact
Demonstrate Crowdfund seed or
business model development
capital
26. The power of the crowdâŚ
âSmall gifts from many are just
as powerful as large gifts from
a few.â
Steve Case, co-founder, AOL
Bloom ... Venture Catalyst - growing the entrepreneurial eco-system
30. The Status Quo
A wealth of entrepreneurial talent
⢠UK has lots of great ideas
⢠Need to cultivate ideas into the next
Google/Twitter/GroupOn Google says searches for
⢠Often stifled by access to Money "business plan UK" have
increased by 60% over the
past year and searches for
"small business loan" are up
by 34%
31. The Status Quo
The Status Quo
⢠Venture capital difficult to find for smaller
requirements
⢠Debt finance hard to come by
⢠Business angels â limited investments
⢠Typically a syndicate each investing £10k - £100k
⢠What if there was a way to have say 5000 angels
each investing ÂŁ10?
⢠What if anyone could become a business angel?
32. Crowdcube and Crowdfunding
What is Crowdcube?
⢠Crowdcube provides a web-based central hub for entrepreneurs to meet
micro-investors. It uses the power of Crowdfunding to provide a unique
service to two types of people:
⢠for entrepreneurs to source funding more accessibly than conventional
routes
⢠for smaller investors to have the opportunity to invest in exciting high-
potential businesses
â$100 invested in Microsoft at their IPO would now be
worth approximately $35k.â
33. Crowdfunding
Crowdfunding
⢠Crowdfunding is an approach to raising the capital required for a new
project or enterprise by appealing to large numbers of ordinary people for
small donations
⢠Social Media
⢠Crowdfunding examples
⢠Kiva.org - $325m funding raised, >777,000 lenders, ~800,000
entrepreneurs
⢠Kickstarter.com â >24,000 projects funded, > $250m pledged to-date,
2m people have pledged
39. Business model
Success so farâŚ
Deals successfully funded
ÂŁ5.1 million
funded so farâŚ
ÂŁ100,000 >30,000
largest single investment members
ÂŁ2,547 ÂŁ1 million
av. investment FSA Authorised
biggest deal
46. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
Angels
OverDraft Seed /
Post Early
FFF Early Revenue Growth
Seed ÂŁ10- ÂŁ10- ÂŁ100-ÂŁ1m
50k ÂŁ100k
47. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
VC
Angels Growth
ÂŁ1m-
OverDraft Seed / ÂŁ25m
Post Early
FFF Early Revenue Growth
Seed ÂŁ10- ÂŁ10- ÂŁ100-ÂŁ1m
50k ÂŁ100k
48. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
PE
Mature
Growth /
Distresse
VC d
Growth Companie
Angels s, MBO,
ÂŁ1m-
OverDraft Seed / ÂŁ25m
M&A
Post Early ÂŁ25m-
FFF Early Revenue Growth ÂŁ100m
Seed ÂŁ10- ÂŁ10- ÂŁ100-ÂŁ1m
50k ÂŁ100k
49. BC = Before
CrowdFunding
Sources of Finance For
Your Company...
Equity
Capital
PE Markets
Mature (ECM)
Growth / Exit,
Distresse Mature
VC d Growth,
Growth Companie Expansio
Angels s, MBO,
ÂŁ1m- n ÂŁ100m-
OverDraft Seed / ÂŁ25m M&A ÂŁ5bn
Post Early ÂŁ25m-
FFF Early Revenue Growth ÂŁ100m
Seed ÂŁ10- ÂŁ10- ÂŁ100-ÂŁ1m
50k ÂŁ100k
50. BC = Before
CrowdFunding
Sources of Finance For
Your Company... Debt
Capital
Equity
Markets
Capital
PE (DCM)
Markets
Mature Public
(ECM)
Growth / Compani
Exit,
Distresse Mature es,
d Countries
VC Growth,
Companie Expansion ,
Angels Growth ÂŁÂŁÂŁÂŁâs
ÂŁ1m- s, MBO, ÂŁ100m-
OverDraft Seed / ÂŁ25m M&A ÂŁ5bn
Post Early ÂŁ25m-
FFF Early Revenue Growth ÂŁ100m
Seed ÂŁ10- ÂŁ10- ÂŁ100-ÂŁ1m
50k ÂŁ100k
51. AD = After Debt Crisis
Sources of Finance For
Your Company...
FFF ÂŁ1k
52. AD = After Debt Crisis
Sources of Finance For
Your Company...
CrowdFun
d
Seed/Idea
FFF ÂŁ1k Prototype
ÂŁ1k-ÂŁ50k
53. AD = After Debt Crisis
Sources of Finance For
Your Company...
CrowdLoa
n
Expansio
CrowdFun n/
d Working
Seed/Idea Capital
FFF ÂŁ1k Prototype ÂŁ1k -
ÂŁ1k-ÂŁ50k ÂŁ100k
54. AD = After Debt Crisis
Sources of Finance For
Your Company...
Crowd-
Investmen
CrowdLoa t Seed For
n A Good
CrowdFun Expansion Plan,
d / Working Growth
Seed/Idea Capital ÂŁ10k-ÂŁ1m
FFF ÂŁ1k Prototype ÂŁ1k -
ÂŁ1k-ÂŁ50k ÂŁ100k
55. AD = After Debt Crisis
Sources of Finance For
Your Company...
ECM DCM
PE
ÂŁ100 ÂŁÂŁÂŁâs
ÂŁ25
Crowd- m-
m-
Investmen VC ÂŁ1m- ÂŁ100 ÂŁ5bn
CrowdLoa t Seed For ÂŁ25m m
n A Good
CrowdFun Expansion Plan,
d / Working Growth
Seed/Idea Capital ÂŁ10k-ÂŁ1m
FFF ÂŁ1k Prototype ÂŁ1k -
ÂŁ1k-ÂŁ50k ÂŁ100k
64. Remember the New Economy?
Turns out itâs latest version of âNewâ
65. Economic Growth since the end of the 18th Century
has gone through 5 Distinct Stages,
associated with 5 successive Technological Revolutions
Five Successive Technological Revolutions, 1770âs to 2000âs
Technological Popular Name for the Core Country or Big-bang initiating the Year
Revolution Period Countries revolution
FIRST The Industrial Britain Arkwrightâs mill opens 1771
Revolution in Cromford
SECOND Age of Steam and Britain (spreading to Test of the Rocket 1829
Railways Continent and USA) steam engine for the
Liverpool-Manchester
railway
THIRD Age of Steel, Electricity US and Germany The Carnegie Bessemer 1875
and Heavy Engineering forging ahead and stell plant opens in
overtaking Britain Pittsburgh,
Pennsylvania
FOURTH Age of Oil, the USA (with Germany at First Model-T comes 1908
Automobile and Mass fist vying for world out of the Ford plant in
Production leadership), later Detroit, Michigan
spreading to Europe
FIFTH Age of Information and USA (spreading to The Intel 1971
Telecommunications Europe and Asia) microprocessor is
announced in Santa
Š Proprietary & Confidential â Ariadne Capital Clara, CA
66. Lifecycle of a Technological Revolution
Period one Period two Period three Period four
Last new products and
industries. Earlier ones
approaching maturity
and market saturation
Degree of technology maturity
and market saturation
Full constellation (new
industries, technology Full expansion of
systems and innovation and market
infrastructure) potential
Early new products and
industries. Explosive
growth and fast
innovations
Gestation Paradigm Introduction of successive new products, industries Constriction Time
period configuration and technology systems, plus modernisation of of potential
existing ones
Big-bang
Around half a century
Š Proprietary & Confidential â Ariadne Capital
67. AGE OF IT AND TELECOMMUNICATIONS
50 ISH YEAR CYCLE â 1971 TO 20...?
BIG BANG â NOVEMBER 1971 IN SANTA CLARA, CALIFORNIA
⢠Bob Noyce and Gordon Moore launched Intelâs first microprocessor, the precursor of the computer
on a chip
INSTALLATION â late 1970âs through to Noughties
⢠1976 â Steve Jobs, Steve Wozniak found Apple Computer
⢠1984 - Michael Dell founds PCâs Limited later named Dell Computer Corporation
⢠1985 â Irwin Jacobs founds QualComm, pioneer in Wireless Communications
⢠1990 â CERN / Tim Berners Lee
⢠1994 â Yahoo founded
⢠2003 â Skype â âfree calls on webâ
⢠2004 - Facebook founded
THE TURNING POINT
Š Proprietary & Confidential â
Ariadne Capital
68. THE REVOLUTION STARTS AS A SMALL FACT
WITH BIG PROMISE
AND MOVES TO A SIGNIFICANT FORCE IN THE MARKET
Š Proprietary & Confidential â Ariadne Capital
69. Big Bangs attract new investment: successful radical
innovations receive and promise extraordinary profits in
a mature industrial landscape
Turning
Degree of diffusion of the technological revolution
Point
INSTALLATION DEYPLOYMENT
The Installation Period is one of tense co- PERIOD PERIOD
existence of two paradigms
â˘Once a truly superior technology is
available, with higher productivity and clear
growth potential, the outcome in the
medium term is practically inevitable.
â˘First 2 or 3 decades of creative destruction
after the Big Bang are increasingly turbulent
and the benefits of growth uneven. Time
Big-bang Next
big-bang
â˘A new context is being created; a new
common sense is emerging.
â˘The world of computers and the Internet is
very different than the world of the car,
mass production and the highway.
Š Proprietary & Confidential â Ariadne Capital
70. The dynamics of the system: three spheres of change in
constant reciprocal action
ECONOMIC CHANGE INSTITUTIONAL CHANGE
Socio-political
Production ideas & behaviour
capital
Financial Socio-institutional
capital frameworks
TECHNOLOGICAL CHANGE
Technological
revolutions
Techno-economic
paradigms
Š Proprietary & Confidential â Ariadne Capital
72. The Economy & Social Institutions Respond
⢠1999 to 2013 â Broadband and
Mobile Technologies continue
to invade our lives
⢠2013 -David and Goliath must
dance
73. Consumerisation of Technology
Ariadne advised Skype on business development activity in 2003 and 2004
The consumer's adoption of services is driving everything, reversing how new
products and services used to come to market through the enterprise.
User
Client Developer
Supplier
74. Raymond Kurzweil
The Singularity is Near
⢠Technology operates exponentially while our
minds operate linearly
⢠It took 89 years for the fixed line telephone to
achieve an adoption of 150 million users, but
only 38 years for the television to get to the
same point. The mobile phone achieved this
in 14 years, the iPod in 7, and Facebook in 5.
⢠20,000 years of progress this century.
⢠At a certain point, we have to leverage
technology or artificial intelligence to continue
to model or predict the future
75. The David / Goliath Grid Model
Network
Strategic
Effects
Value
When partnering with, When acquired,
Ecosystem
1)Brings new 1)Can become
âDavidâ - Digital Enabler
EconomicsTM â
shifting digital revenues
industry 2)Can reinforce or
players 2)Brings lean operating gain a position as
system Industry Architect
Consumer â
Data sets
become
prevalent
Network â
Orientation at
heart of the
consumer
insight Renting Operating System
Not Licensing to the industry
Vulnerability âGoliathâ - Distribution Financial Value
Copyright - Ariadne Capital 75
76. Examples of Corporates engaging with Digital Enablers
Large corporates which are partnering and/or acquiring digital technology firms
include:
77. Software is Eating the World
- Marc Andreessen
Š Proprietary & Confidential â Ariadne Capital
83. and Ecosystem Economics
⢠Google says that they organise the worldâs information
⢠They actually organise the economics of the worldâs information
⢠I, as a consumer of their search, am not given any economic upside in the search
transaction.
⢠They have built a multi-billion pound business using â albeit anonymously â my personal
data â aggregated with that of others, but releasing none of the economic value to me
⢠Their biggest Achilles Heel is if someone in the search space were to cut a different set of
economics for the consumer
⢠Ariadne Capital found that entrepreneur â John Paleomylites â founder of
BeatThatQuote, and sold his business to Google on the 4th of March 2011 for a 122 EBITDA
multiple for these reasons
84. 84
Monitise â The De Facto Leader
1.6 bn+
transactions pa
300+ FIs & Partners 17m
FIs Registered
customers
$20bn
Value of
World leading partnerships 700+ payments &
Mobile Money Experts transactions pa
Š 2003 â 2012 Monitise plc. All Rights Reserved.
85. has created The Mobile Money Ecosystem over the past 9 years
Cards
Processor
Payments
⢠Domestic
⢠International
Mobile
TopUp
Enabler
3rd Party
Providers
⢠Sharedealing
⢠Insurance Mobile
Operators
National
Use of standard Interfaces
Services
⢠Transit
⢠Utility
Other eg
Core ⢠CRM
Banking Wealth ⢠Database
Shopping
&
Loyalty
Bank Platforms
86. 86
What is Mobile Money?
The opportunity is to meet a range of key consumer needs
through their mobile
Underpinned by bank grade technology & security
Š 2003 â 2012 Monitise Group Limited. All Rights Reserved. Confidential.
86
87. Convergent Commerce
Financial Institutions Mobile
⢠Banking/ Alerts ⢠Mobile Prepaid
⢠NFC/ Remote ⢠Remittances
⢠Offers ⢠App Markets
⢠Remittance ⢠NFC/ Private Label
⢠Remote Direct Bill
Social Media and Retail Transport
online advertising Ticketing
⢠Mobile OS ⢠Mobile Checkout
⢠Marketing Apps ⢠NFC/ Proximity
⢠LBS Services ⢠BarCode/ Text Purch
⢠Networking ⢠Offers/ Promotions
⢠Offers ⢠Shopping Apps/ Mobile
Web
88. Five Stages of Company Development
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Scale on the back
Validate Business
of the Enterprise High Growth
Idea Product Model; Operating Sustainable Business
Platforms and
Model Set to Scale
Corporate Partners
ACE Fund
investment
focus
Š Proprietary & Confidential â
Ariadne Capital
88
89. In 2013, âNetwork Benefitsâ accrue to those Firms
who understand their role in their ecosystem and
organise the economics for it
This in turn leads to exceptional returns for their
shareholders
89
90.
91. Individual Capitalism is the Force for the 21st
Century
âCapitalism was about empowered
authority which didnât necessarily activate
the citizenry; the Internet stands that on its
head, and shifts the power to the
Individual
â making Individual Capitalism the force of
the 21st Centuryâ.
92. So I say itâs really very simple....
Follow The Entrepreneur
⢠He/She has the Market Insight
⢠He/She is the Creator of Value
⢠He/She is the Hero
Š Proprietary & Confidential â Ariadne Capital
93. Thank you ....
julie@ariadnecapital.com
www.entrepreneurcountry.com
http://www.entrepreneurcountryforum.com
93