How to Raise Venture Capital The First Tuesday Award 2014

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Christer Holloman Chairman

First Tuesday

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1.30 Welcome 1.35 Meet the Jury 1.40 Finalist 1: 5 min + 5 min QA 1.50 Finalist 2: 5 min + 5 min QA 2.00 Finalist 3: 5 min + 5 min QA 2.10 Jury Agrees Winner 2.10 How to Raise Venture Capital 2.25 Jury’s Winner Award Winner Announced 2.30 End

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Sanj Bhayro Senior Area VP – EMEA SMB

THE JURY

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David Cobb Partner

THE JURY

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David Buttress CEO

THE JURY CHAIRMAN

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X X X

FINALIST 1

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FINALIST 2

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X X X

June 2014

For Internet World

Confidential

• This presentation is prepared exclusively for the jury of the Internet World awards

• All data and information is confidential and must not be shared without the express written permission of Hubbub.co.uk.

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Offline £163.3bn

Online £6.5bn

Hubbub opportunity

Other inc. Independents

£40bn

Source: Company accounts, annual reports; IGD; Hubbub analysis

£169bn UK 2013 grocery market Hubbub opportunity

Hubbub opportunity

MARKET OPPORTUNITY: Hubbub enables independent grocery retailers to fight back against the ‘big box’ grocers

Hubbub will do for independent food shops, stalls and producers what Just Eat does for takeaways, what Not on the High Street does for creative small businesses, what Farfetch does for independent fashion boutiques, and what Hailo does for black taxis.

THE VISION: Hubbub will be the de facto marketplace for local food shops, market stalls and artisan producers.

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• Extra orders • Transactional

website/apps • Local food-friendly

logistics • Marketing, CRM, CS

LOCAL SHOPS

Pays: X% Commission

CONSUMERS

• Hourly delivery slots, all delivered at once

• Same prices as high street

• All sourced locally

Pays: £3.50 delivery charge + payment card fees

THE OFFER: Matching busy consumers with local food shops who are looking for new business channels

Hubbub’s average revenue: ~20% of Total

Transaction Value

16 No stock. No picking and packing. No credit risk.

SMART MODEL: No stock, warehouse, wastage, picking/packing, returns, motorway traffic jams, credit risk.

No picking and packing

Leverages shops’ workforces outside

peak hours

No stock Leverages shops’ existing, locally-held, inventory

No returns Goods are fresh, and no

returns are permitted

No warehouse Goods are delivered direct or cross-docked van-to-van

No credit risk Hubbub pays shops net of

commission

More deliveries/hr Vans operate within 3 mile radius densely populated areas, avoiding busy roads No wastage

Goods are picked-to-order; shops bear overstock risk

AMAZING CUSTOMER LOYALTY: Loyal customers’ spend increases fast enough to compensate for churning customers

Cohort spend is stable / growing after year 2

Customer spend keeps rising over time

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Total Transaction Value, £, per quarter

£185k angel

investment

£600k angel

investment

Marketing

spend stopped

THE SALES: We’ve achieved growth averaging almost 20% quarter on quarter, despite very low investment

Rollout strategy: increase density per hub 6x, and roll out 20x as many hubs

0

10

20

30

40

50

60

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ROW

UK

All London

Inner London

POC hubs

2013 2017

~20x as many hubs

6x revs/hub growth

Marisa Leaf Founder & co-CEO

Barrister; Author; Evening Standard Power 1000: London’s Most Influential Dealmakers/Tycoons 2013; Oxford University graduate

Sonja Martin Head of Operations Mumumio; Masters in Food Policy; First from LSE

HUBBUB’S TEAM: We are assembling a wide range of food, e-commerce and marketing talent

William Reeve co-CEO

Fletcher Research; LOVEFiLM.com; Graze.com; Secret Escapes; Zoopla; Top first in EEM from Oxford University

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Ben Lewis Marketing Manager ZipCar; Et Games; Stream Farm; MA from Edinburgh University

Executive team Institutions

Selected angels from:

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QUESTIONS?

FINALIST 3

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X X X

JURY TO AGREE WINNER

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How to Raise Venture Capital

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1. Need it?

2. Be good

3. Look good

4. Create pull

5. Research

6. Solve right problem

7. Demo your solution

8. Validated Revenue Model

9. Validated Customer Acquisition

10. Team & Exit

1. DO YOU NEED IT?

a. Cost of diluting

b. Free money

c. Collaborations

d. Bootstrap your life

e. Bootstrap your company

f. Family and friends

g. Loans

h. Business angels

CAPITAL NEEDS

TIME

Seed Start-up Early Growth Sustained Growth

High Risk

Low Risk Friends, Family &

Fools

Business Angels

Formal Venture Capital

IPO

Growth

Proof of Concept, Grants &

Loans

1. DO YOU NEED IT?

2. BE GOOD

a. Be a nice person

b. Contagious enthusiasm

c. Use easy to understand language

d. Have a relevant background

e. Grow your network

f. Be prepared

3. LOOK GOOD

a. Sleek corporate identity

b. Check your facts, validate your

claims

c. Update your business plan

4. CREATE PULL

a. Do everything on the previous

slides

b. Set up advisory board

c. Network, spread the word

d. Enter awards

e. Become a sector expert

f. PR

g. Get introduced

h. Entertain/befriend VC first

You

VC

5. RESEARACH YOUR VC

a. How a VC works

b. Where to look

c. What do they invest in?

d. Who works there (skillset,

interests)

e. ROI

f. Call/email/approach at event

6. RIGHT PROBLEM

a. Is it the right problem?

b. VC can relate

c. How big is the problem (Market

size/growth)

d. Validate

7. SHOW YOUR SOLUTION

a. Live demo (prepare for no wifi)

b. Video

c. Screenshots

d. “Great products get you Laid (sex), paid (money) and

made (power”)

e. True USP (list all competitors) / Patents

f. Validate

8. REVENUE MODEL

a. More then 1 revenue source

b. Benchmark

c. Validate

9. ACQUSITION MODEL

a. Write your marketing plan

b. Volume/Cost/Conversion

c. Don’t rely on Google

d. Why will they come, and why will they come

back

e. Validate

10. TEAM

a. Have a team

b. Track record to deliver

c. Complimentary skills

d. Motivations

11. EXIT STRATEGY

a. Trade Sale

b. IPO

1. Need it?

2. Be good

3. Look good

4. Create pull

5. Research

6. Solve right problem

7. Demo your solution

8. Validated Revenue Model

9. Validated Customer Acquisition

10. Team

11. Exit Strategy

AWARD WINNER IS… The UK’s Most Promising Internet Company

Award Partners