hellas direct - hack cyprus 2013
DESCRIPTION
Presentation by Emilios and Alexis, co-founders of Hellas Direct, at Hack Cyprus 2013 in Nicosia. [Hilton Park Hotel - 8 Sep 2013]TRANSCRIPT
HELLAS DIRECT: SETTING UP A NEW INSURANCE COMPANY IN GREECE
HACK CYPRUS 2013 �NICOSIA, CYPRUS�4-8 SEPTEMBER 2013 �
(“LAUNCHING A START-UP AT A TIME OF CRISIS”)
LOOKING FOR A NEW CHALLENGE IN LIFE?
Sir Richard Branson (2012) �
Oldest man to kitesurf �across the English Channel. �
THERE ARE A BUNCH OF CRAZY THINGS YOU COULD DO TO PICK YOURSELF UP
Hugh Hefner (2013) �Felix Baumgartner (2012) �
Married to a 26-year old �when he turned 86. �
Skydived from space, �breaking the speed of sound. �
… IN INSURANCE, IN GREECE, IN 2012!
OR YOU COULD START A NEW VENTURE
WTF?!
SO, WHO ARE WE? WHAT DO WE DO? HOW DID WE GET HERE?
TIP OF THE DAY: STARTUPS CAN BE BAD FOR YOUR LOOKS
A LONG, LONG TIME AGO IN A GALAXY* FAR FAR AWAY…
* IN LONDON
Larry Page + Sergey Brin�
LIKE MOST ENTREPRENEURS, WE SET OFF THINKING WE’D BE THE NEXT GOOGLE GUYS …
* until this guy came along.�
GOOGLE: Largest tech IPO in history*.�
PRE-SEED� SEED� ROUND I �
CUMUL
ATIV
E CA
SH F
LOW�
ROUND II � ROUND III � ROUND IV�
ANGELS�
<EUR 100k � EUR 500k-1m � EUR 1-5m � EUR 5-10m �
8-10 YEARS�
1/3
IPO �
EUR 100-500k �
‘VALLEY OF DEATH”�
x x
EARLY-STAGE� LATE-STAGE�
… KNOWING THAT REALITY CAN BE HARSH (9/10 START-UPS FAIL)
1/2 2/3 4/5
EXPANSION � FOLLOW-ON �EUR 30-50m � EUR 50m> �
GROWTH �
EUR 10-30m �
BREAK EVEN �
START-UP SURVIVAL
RATE
SO, WHY GREECE?
A COUNTRY RUN BY CROOKS AND INCOMPETENT POLITICIANS TRANSFORMATIONAL OPPORTUNITY - GOING THROUGH A HUGE RESET LARGE ENOUGH – 11M PEOPLE
AND WHY CAR INSURANCE?
OBLIGATORY BY LAW LETHARGIC COMPETITION – HIGH COSTS AND INNEFFICIENCIES MIDDLEMAN IS STILL THE KING WITH OBSENE COMMISSIONS – BROKERS NOT AGENTS EUR 2BN MARKET SIZE
WHY NOW?
A STRONGER REGULATOR THE RISE OF THE CONSUMER BEST TIME TO BUILD A BRAND
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…
CHALLENGE I: SECURE (REAL) FUNDING
2,500 APPROACHES
300 MEETINGS
11 INVESTORS
1.5 YEARS
FINDING INVESTORS WASN’T EASY …
1 IN 8 1 IN 27
99.56% REJECTION RATE
… AND THE ODDS WERE NOT ON OUR SIDE
THERE IS A HIGHER CHANCE OF BETTING ALL YOUR MONEY ON BLACK IN A LAS VEGAS ROULETTE AND WINNING… … 7 CONSECUTIVE TIMES!
CHALLENGE II: BUILD A GREAT COMPANY
Invest in technology �Algorithmic pricing �Close ties with academia�
Keep innovating �Hire the right people �
Intelligence�Passion �A drive to make things better�
Get licensed�
A year of paperwork �Detailed business planning �Latest EU regulations�
THERE ARE THREE BASIC INGREDIENTS TO BUILDING A GREAT INSURANCE COMPANY
CHALLENGE III: DRIVE SALES
When you start, the tendency is to go for the sexy stuff. [Wonderbra slide] We went the other way. Set up the best car insuranc company in Greece. [monty python slide] Our journey [our journey slide] A. First you get the money [New slide] That was tough [space arcade slide] The odds are definitely against you [vegas slide] B. Then you have to build the company [new slide] Hire the right people [new slide] Build your technology [new slide] Get regulated -‐ bureaucracy [new slide] C. Then you have to sell Who? Innovators. [new slide] ExponenNal growth? [new slide] How? The 'Why'? Find your tribe [new slide] Some days are tougher than others [orthodox jew slide] but the liPle things make it worth while [doxiadis post slide] Enjoy the ride [last slide] Books that inspired us [books slide] Thank you [thank you slide]
LIKE ANY NEW IDEA, APPEAL TO THE INNOVATORS AND EARLY ADOPTERS FIRST
(NOT EVERYONE WILL GET IT – TARGET YOUR TRIBE FIRST!)
SOME DAYS ARE TOUGHER THAN OTHERS …
“Happy Hanukkah”�Israeli investor�
Tel Aviv, Israel�London, UK� Athens, Greece �
“Shaken not stirred”�Russian investor�
“Press 4 for help”�South African investor�
… 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