Blood, Sweat and Tears until Priceza Today!

1 November 2014By Thanawat Malabuppha (Wai)

CEO & Co-Founder of Priceza

Entrepreneurial FinanceBangkok University, School of Entrepreneurship and

Management

Brief intro about me

Background in Computer Engineering & Marketing

• Undergrad, Computer Engineering, Chulalongkorn

University

• Exchange Student at Stanford University

• Grad, in Marketing from MIM Thammasat Business

School

Brief intro about me

Professional Background

• Management Committee at Thai Ecommerce

Association

• Part of the working group for Digital Economy Project

• CEO & Co-Founder of Priceza

– Over 4 Million Active Visitors per month

– CyberAgent Ventures invested in 2013

SearchProduct Name

4 Millions Visitors/monthOver 2 Millions Product Items

Aims to be NO.1 Price Comparison Shopping in SEA

700K Visitors/month

4 M Visitors/month

15 Years of My Journey

2014: EntrepreneurCEO of Priceza

2000: Undergrad Student

BLOOD, SWEAT &

TEARS

YEAR 2000 - 2004 Learning What I Love

Year 2000 - 2004

• Follow Your Heart– Doing & Learning What You Love!– Passionate in everything to do with

Computer

• Studying in Computer Engineering, Chula

• Exchange Student at Stanford University

YEAR 2005 - 2006 Starting up My 1st Venture

Year 2005 - 2006

• Initiated an idea about Price Comparison Website called Shopsanova.com

• Business Model is not clear!• Focus only on product and it turned

out like a shit!

YEAR 2007 - 2009 Pursuing Marketing Knowledge &

Experience

Year 2007 - 2009

• 14 February 2007: Shopsanova Go Live

• MIM Grad with NO.1 Top GPA 3.79• Runner-up Award, New Venture

Championship (NVC) in USA

YEAR 2009 Dream High. Fight Hard. Never

Give up!

Year 2009

• Shutdown Shopsanova.com !!!• Plan to launch a new site called

Priceza.com• Market Validation

Market Validation

• Focus on the real pain (problem) that you are going to solve

• Know the best way to solve that pain– Clever– Better– Lower Cost

• Make sure that the market is valid and huge

“You don’t need to raise funding to be successful.”

Why finance matters

• A start-up can’t survive without sufficient finance

• There are various sources of finance available for new businesses

Sources of Financing

• Internal Sources (Bootstrapping)– Founder finance (personal sources)– Retained profit– Friends & family

• External Sources– Bank loan– Bank overdraft– Trade credit– Business angels– Venture capital

Key considerations for financing

• How much finance is required?• When and how long the finance is

needed for? (this links in with the cash flow forecasting)

• What security (if any) has to be provided?

• Whether the entrepreneur is prepared to give up some control (ownership) of the start-up in return of the investment?

Personal sources of finance (Bootstrapping)

• Various types of personal financing of the entrepreneur– Cash and investments– Personal credit cards– Putting time into the business for free (or for

future pay)

Why Bootstrapping is important

• Cheap (e.g. compared to a bank loan)

• Entrepreneur keeps control over the business

• The more the founder puts in, the more others will invest– There are a few companies that

bootstrapped for a while until taking external investment, like MailChimp, AirBnB and Priceza ;)

YEAR 2010 - 2012 Go Homerun or Go Back Home!!!

Year 2010

• Jan 2010: Priceza.com Go Live• Doing everything myself!• Sale is NO.1 Priority!

Year 2011

• Break-even• Got contact from XXXX and XXXXXX• We decided that external funding can

be a driving force for Priceza.

Year 2012

• Got contact from XXXXX and several VCs– Singapore– South Africa– Japan– Thailand–Malaysia– Russia

• Talk to a lot of VCs to compare their offerings

• Got 1st Term Sheet– Oh Put Option!

YEAR 2013 Close Seeding Funding

Year 2013

• Sep 2013: Close deal with CAV– Our 2nd Term Sheet– Due Diligence– Deal Structure:• New Money vs. Buying Out• Pre-Money Post-Money

How Start-up Funding Work

Reference from Funders and Founders

By Anna Vital / May 9, 2013

How Start-up Funding Work

• Every time you get funding, you give up a piece of your company.

• The more funding you get, the more company you give up.

• That ‘piece of company’ is ‘equity.’• Everyone you give it to becomes a

co-owner of your company.

Splitting the Pie

• The basic idea behind equity is the splitting of a pie.

• When you start something, your pie is really small. You have a 100% of a really small, bite-size pie.

• When you take outside investment and your company grows, your pie becomes bigger. Your slice of the bigger pie will be bigger than your initial bite-size pie.– When Google went public, Larry and Sergey

had about 15% of the pie, each. But that 15% was a small slice of a really big pie.

Idea stage

Co-Founder Stage

The Family and Friends Round

5% of Share

for 15,000$

The Angel Round

Valuation of the company = $1M Pre-MoneyAngel Investment = $200K

Post-Money = $1M + $200K = $1.2M

Venture Capital Round

Valuation of the company = $4M Pre-Money

VC Investment = $2MPost-Money = $4M + $2M = $6M

IPO

100% of Nothing is a lot less than

17% of a BIG Company

YEAR 2014 Accelerating Growth

Year 2014

• Accelerating Growth• Expanding to 4 more countries

Our Growth in Shopper Visits (Traffic)

2553 2554 2555 2556 2557 2558 -

10

20

30

40

50

60

70

4 9

20

30

40

60

+125%

+122%

+50%

+33%

+50%

Thailand Site Shopper Visits (Million Visits)

2010 2011 2012 2013 2014 2015 (Est.)

Priceza Grand Sale

Priceza Grand Sale

THANK YOU

http://waiwaiworld.comEmail: thanawat@priceza.com