Presentation by Alexis, co-founder of Hellas Direct, at the 4th Open Coffee gathering in Cyprus. [Melina Merkouri Hall, Famagusta Gate, Nicosia - 16 Jan 2013]
1. HELLAS DIRECT:
SETTING UP A NEW
INSURANCE COMPANY
IN GREECE
(“STOP CHASING UNICORNS!”)
OPEN COFFEE (CYPRUS)
FAMAGUSTA GATE
16 JANUARY 2013
2. LIKE MOST ENTREPRENEURS, WE SET OFF
THINKING WE’D BE THE NEXT GOOGLE GUYS …
Larry Page + Sergey Brin
* until this
GOOGLE: Largest tech IPO in history*.
guy came
along.
3. … BUT WE SOON REALISED THAT REALITY CAN
BE HARSH (9/10 START-UPS FAIL)
ANGELS EARLY-STAGE LATE-STAGE GROWTH
PRE-SEED SEED ROUND I ROUND II ROUND III ROUND IV EXPANSION FOLLOW-ON
<EUR 100k EUR 100-500k EUR 500k-1m EUR 1-5m EUR 5-10m EUR 10-30m EUR 30-50m EUR 50m>
CUMULATIVE CASH FLOW
x x
‘VALLEY OF BREAK IPO
DEATH” EVEN
START-UP
SURVIVAL
RATE 1/3 1/2 2/3 4/5 8-10 YEARS
4. WE SPENT ENDLESS TIME SEARCHING FOR:
THAT
BIG
IDEA
(HAVE YOU EVER DONE SO? BE HONEST…)
5. WE LOOKED FOR AN IDEA WHICH WAS DIFFERENT
TO ANYTHING EVER DONE BEFORE …
(WHAT SOME PEOPLE CALL THE PURPLE COW!)
6. ... AN IDEA WHICH WAS SEXY, COOL AND TRENDY!
WOMENSLINGERIE
7. IT DID NOT TAKE US LONG TO GET THAT
THERE IS NO MAGIC TO AN IDEA …
8. … AND THAT SOMETIMES THE BEST BUSINESS
CONCEPTS ARE RIGHT UNDER YOUR NOSE
CARINSURANCE
9. IF THERE IS ONE MESSAGE WE WANT YOU
TO TAKE AWAY FROM TODAY’S TALK IS THIS:
STOP
CHASING
UNICORNS*
(BORING IDEAS OFTEN MAKE BETTER BUSINESSES!)
* those different, sexy, cool and trendy big ideas.
10. WHAT’S OUR STORY?
¡ A NEW, DIRECT INSURANCE COMPANY IN GREECE.
¡ “CHANGING THE GREEK INSURANCE MARKET, ONE POLICY AT A TIME”.
¡ WE ARE HIGHLY SPECIALISED.
¡ WE LIVE AND BREATHE TECHNOLOGY.
¡ WE LOVE NUMBERS.
¡ WE SERVICE THE CONSUMER, NOT THE BROKER!
¡ 23 PEOPLE IN 3 COUNTRIES.
¡ A LONG JOURNEY: 3 YEARS FROM START TO OUR FIRST SALE.
¡ WE HAVE FACED THREE KEY CHALLENGES ALONG THE WAY…
12. FINDING INVESTORS WASN’T EASY …
2,500 APPROACHES
1 IN 8
300 MEETINGS
1 IN 27
11 INVESTORS
1.5 YEARS
13. … AND THE ODDS WERE NOT ON OUR SIDE
99.56%
REJECTION
RATE
THERE IS AHIGHER CHANCE OF
BETTING ALL YOUR MONEY ON BLACK IN A
LAS VEGAS ROULETTE AND WINNING…
… 7 CONSECUTIVE TIMES!
15. THERE ARE THREE BASIC INGREDIENTS TO
BUILDING A GREAT INSURANCE COMPANY
Get licensed Hire the right people Keep innovating
A year of paperwork Intelligence Invest in technology
Detailed business planning Passion Algorithmic pricing
Latest EU regulations A drive to make things better Close ties with academia
17. LIKE ANY NEW IDEA, APPEAL TO THE
INNOVATORS AND EARLY ADOPTERS FIRST
(NOT EVERYONE WILL GET IT – TARGET YOUR TRIBE FIRST!)
18. SOME DAYS ARE TOUGHER THAN OTHERS …
London, UK Tel Aviv, Israel Athens, Greece
“Press 4 for help” “Happy Hanukkah” “Shaken not stirred”
South African investor Israeli investor Russian investor
19. … BUT IT IS THE LITTLE THINGS THAT
MAKE IT ALL WORTHWHILE
I have just insured my car with Hellas
Direct in under 5’. If all other
services (private or public) were as
friendly to the user as this one, our
productivity would be much higher
and we would all be much calmer…
- a client’s facebook post