smart agricultureanalytics investordeck
TRANSCRIPT
October 2014 • Strictly Private & Confidential!
Smart AgricultureA N A L Y T I C S
Manuela Zoninsein Founder, CEO
钟梦露 创始者及首席执行官
www.smartaganalytics.com
We are building the Bloomberg of Agritech
O U R V I S I O N !
Drive the future of farming
O U R S T R A T E G Y !
Build a trusted platform to connect world-leading agritech suppliers with clients in emerging markets where agritech is being deployed to feed 9b by 2050
3!
Massive Agriculture!Investment in China!In the 5 year period
2011-2015, nearly $1 trillion investment in ag
modernization has been made by the Chinese
government, and investment continues.
Agritech Revolution!Outside of China!
N American, European, Israeli innovations in “new agritech” are booming - $400m invested into 35 US
companies Jan to July 2014 alone.
T H E P R O B L E M !
Agritech is booming and needs new market channels; agritech demand is opaque, unknown, risky, chaotic
4!
Crop Protection
Agricultural Machinery
Greenhouses & Nurseries
Crop Sciences
Livestock Science & Equipment
Soilless Tech (aquaponics, aquaculture, etc.)
Soil Tech
Water Tech (irrigation, dosing, etc.)
O U R A D V A N T A G E !
SAA’s taxonomy defines and structures the agritech industry for the first time
Numerous examples of taxonomies dominating a market exist in other industries: BNEF, App Annie, FactSet, MatterMark…
5
O U R L E A D E R S H I P !
Our leadership has the experience, commitment, and chutzpah to see it through
Living + working in China 6 years: Ag journalist for Newsweek, Engineering News-Record, ClimateWire
Natural entrepreneur-leader: Dell’s China SMB website, Newsweek’s 1st blog, 1st Engineering News-Record China reporter, food editor at Time Out
Harvard BA Social Studies, Minor Latin American Studies; Oxford MSc Modern Chinese Studies; Tsinghua Blakemore-Freeman Fellow
Self-made, steadfast individual: Brazilian-born, Midwestern-raised; CBOT trading floor at 18; previously,modern dancer and now marathon-runner
Bloomberg New Energy Finance researcher
UN Development Program HDI database manager
Energy Foundation, Project Coordinator
US Embassy Agricultural Trade Office analyst
Previously CFO of 3 Chinese companies, 2 listed on NASDAQ
7 years experience in public investing and corporate finance
Manuela Zoninsein Founder, CEO 钟梦露 创始者及首席执行官
Zachary Gidwitz Chief Operating Officer 朱梓轲 首席营运官
Even R. Pay Director, Analysis 裴西霞 分析总监
Jackie You Chief Financial Officer 尤强 首席财经官
NYC
BEIJING
6
S T E P 1 : B U I L D T H E B R A N D , P R O V E T H E M A R K E T !
SAAnews: Comprehensive coverage of China’s agritech market trends Proprietary process combines automated selection and human curation, ensuring subscribers receive accurate, thorough, & scalable information
Value Proposition:
• Provide international managers the same information local competitors have
• Streamlined content keeps teams informed and in sync
• Prepare for shifts in the market and policy landscapes
• Access industry intelligence 7
Current products:!SAAnews Weekly !Free
SAAnews Daily!$2000/user/year
SAAnews Sectors !$4000/user/year
SAAnews Tailored!$6000/user/year
SAAnews Brief !Monthly white paper
8
T O D AY !
SAAnews Daily achieved Product-Market Fit with increasing ARPU
120! 200!100!
500!
200!
1,000! 1,000!
1,500!
2000!
0!
500!
1000!
1500!
2000!
2500!
3000! SAAnews Daily Clients: per-‐client payment
SAAnews Daily Clients !(subscribers since February launch)!
USD / user / year!
1 2 3 4 5 6 7 8 9
35%
18%
32%
3%
12%
Propor7on of revenue
T O D AY !
SAAnews gets clients in the door 6 months after launch, 19 non-Chinese paying clients including 12 subscribers across Daily, Sectors, Tailored
9
Agritech Suppliers (3 clients) Established MNCs seeking to remain competitive; SMBs looking to expand
Professional Services (3) Consultants, marketers, marketing entry advisors, financial advisors
Trade Bodies (2) Trade missions advising constituencies.
Research Groups (2) Policy research groups seeking first-hand data
Agritech Investors (2) PEs & VCs evaluating agritech opportunities or advising portfolios
T O D AY !
Effective marketing strategy targets agritech suppliers (the corporates) Lean sales team (prospecting, closing, client relations) responds to ~50 pre-qualified organic inbound leads each month
Distribution Partnerships (20%) • Signed: Dow Jones, Global Ag Investing, DataLayers • Discussing: Ag Innovation Showcase, AgFunder • Pursuing: ThomsonReuters, CapitalVue
Inbound Marketing (50%) • Social Media: Twitter, Linkedin, Weibo, Weixin • Website SEO & content marketing • Op-Eds/columns for industry publications
Industry Leadership (30%) • Attending & facilitating conferences, panels, webinars • Commerce chambers: AmCham, AusCham, CanCham,
Enterprise Ireland, EuroCham, IsCham • Dominant information leaders in China agritech space
% Leads!Generated!
10
O U R C L I E N T S !
Subscribers already value our products…
“SAA's combination of news coverage of the Chinese agritech sector and value-added analytics has been a huge help in understanding this vast market. They are unique in the market - and much needed in this space.”
– Sr. Investment Officer, International Finance Corporation (VC Investment Team)!
“I read SAAnews to find that invaluable nugget of information. Something that shows me an opportunity that fits my portfolio, and that we can take action on. At that point, the value of SAAnews becomes limitless.”
– President & CEO, Wild Blue Exports!
“The articles selected cover a wide range of subjects, from agricultural policy to trade, all related to technology in Chinese agriculture. SAA is very useful in my job...”
– Chief Researcher, Institut de l’Elevage 11
O U R P R O S P E C T S !
…and now the market is asking for data
“We're currently using Lux Research for profiles of interesting companies in the cleantech space, but they rarely cover agriculture. Since our partner who focused on ag left the team, we’re looking for new market data.”
- Tsing Capital China Environment Fund !
“…hoping to get more detailed information on the brands that are making waves, the equipment they’re selling, and the policies that are determining all these activities.”
- Business Development Manager, Raven Industries!
“I think customized search would be extremely useful, especially if it could include technology listings.”
– Sr. Investment Officer, International Finance Corporation (VC Investment Team)!
12
S T E P 2 : B U I L D A D Y N A M I C B I G - D A T A P L A T F O R M !
We’re building SAAdata for greater growth
Value Proposition:
• Deal lead generation: identify customers, partners, distributors…
• Map local and global competitor activity
• Track policies, financial benefits (taxes, incentives, subsidies), transactions
• Search implemented technologies, down to local level, and confirm IP protection
Our homegrown data extraction process feeds our proprietary relational database to structure actionable SAAnews datapoints
13
T O M O R R O W !
SAAdata Beta coming Q4 2014
Conduct DD
Granular, local level detail
Map the industry
Access expert analysis
We supplant in-house research teams & retained consultants at an accessible price
T O M O R R O W !
Integrate our taxonomy into SAAdata Our 4000-term bilingual Smart Agritech taxonomy, combined with deep local relationships and first-mover advantage, widen SAA’s competitive moat
2013 CASE IH MAGNUM 340
2013 CASE IH MAGNUM 225 CVT
2014 MASSEY-‐FERGUSON 8650
2013 MASSEY-‐FERGUSON 8650
2013 New Holland T7.270
2014 New Holland T8.275
2013 John Deere 7200R
2014 John Deere 6210R
T O M O R R O W !
SAAdata expands a good business and makes it great
Customer!Acquisition Cost!
$2700
Customer!Lifetime Value!
$17,000
CAC to CLTV Ratio!(over 3 year customer lifetime)!
1 to 6.4 16
12! 19! 31! 50! 65! 93! 147! 211!48! 106! 187! 299!
684!
1,293!
2,146!
3,425!
0!
500!
1,000!
1,500!
2,000!
2,500!
3,000!
3,500!
4,000!
SAA Revenue Projections (accrual basis)
SAAdata!
SAAnews!Break-even
To begin: we have 5 pre-committed subscribers with ARPU ranging $10k-$75k
thousands (USD)
T O M O R R O W !
A proven business model with successful exits Company! Acquirer! Industry! Year!
Acquired!Purchase !Price (USD)!
Capital IQ S&P/ McGraw-Hill Financial Deal Flow 2004 200m
New Energy Finance (NEF) Bloomberg Alternative Energy 2009 80m
Wood Mackenzie Charterhouse Capital Energy 2009 850m
Point Carbon Thomson Reuters Energy & Environment 2010 200m
Lanworth Thomson Reuters Yield Satellite Mapping 2011 30m
Kingsman McGraw-Hill Agriculture Commodities 2012 40m
Climate Corporation Monsanto Yield Risk Management 2013 900m
17
= Agritech market data, demonstrates increasing traction as an exit strategy!
F U N D R A I S I N G !
We are raising a $1M seed round to accelerate our move into data products
Fundraising History Raised $250k convertible note with 20% discount at $4m cap Prior investors: family fund, angels, friends/family Legal counsel: -Wilson Sonsini Goodrich & Rosati (US, Global);
-Jun He Law (Mainland China)
Current Fundraise Financing: seeking $1m (ideally, convertible note)
Uses of New Funding Product development investment in SAAdata (30%) Hire Global Sales Director and China-focused Marketer (15%) Beta development of Chinese language product (10%) New funding will provide 12 months additional runway (45%)
18
S T E P 3 : E N A B L E D I R E C T O N L I N E / M O B I L E T R A D E S !
Grow from the “Bloomberg of Agritech” into the “Alibaba of Agritech”
An online marketplace grows out of the critical audience that trusts SAAnews and SAAdata…
SAAnews !Q2 2014 launch
SAA中文!Q4 2014 launch!
SAAdata!Q1 2015 launch
SAAmarketQ4 2016 launch
SAAinsights Q4 2017 launch
SAAservices!Q4 2017 launch!
19
…ensuring SAA is positioned to capture all opportunities that arise from the powerful rise of Smart Ag, China, and data
S T E P 1
S T E P 2
S T E P 3
Thank you!
Smart AgricultureA N A L Y T I C S
USA Smart Agriculture Analytics WeWork Midtown 344 Fifth Ave. NYC, NY 10016
中国 智能农业分析
北京东城区100027编码 东直门外十字坡街8号 铂晶豪庭2层，211房间
www.smartaganalytics.com!
Appendix
A P P E N D I X !
Agritech = A.I.R.E.
Approaches Tillage vs. No-tillage
Resources Chemical vs. Natural
Equipment!Crop-Suitable & Long-Lasting
Information Guesswork vs. Precise
22
✔! ✔! ✔! ✔! ✔! ✔! ✔!
✔! ✔! ✔! ✔! ✔!
✔! ✔! ✔! ✔! ✔!
✔! ✔! ✔! ✔!
✔! ✔! ✔! ✔!
✔! ✔!
✔! ✔! ✔!✔! ✔! ✔!
✔! ✔! ✔! ✔! ✔!
✔! ✔! ✔!
A P P E N D I X !
SAA leads the pack (co-opetition strategy) No other company provides timely products and services focused on agritech in emerging markets by providing granular data
Smart AgricultureA N A L Y T I C S = signed partners!
23
3! 1! 10! 1! 10! 10!
2! 1! 5! 1! 5! 5!
A P P E N D I X !
Sales process efficiency improvements (Q4 2014)
Product Sales Pipeline (35 days)
24
Human Sales Pipeline – SAAnews Sectors , SAAnews Sectors, SAAdata – (19 days)
Website Sales Pipeline – SAAnews Daily– (8 days)
CURRENT
FUTURE
5! 1! 2!
A P P E N D I X !
Sales + website process
Website!
SEO
Content Marketing!
Social Media!
SAAnews Online Subscription Purchasing!
User Sign Up!
Users who wish to purchase entry level products require very minimal ‘touch time’ from the sales team. Reduces attention to lower level sales.
Improved website and user access allows marketing & sales to monitor engagement. Cuts down on qualifying time
Content marketing, SEO & social media creates inbound marketing leads. Cuts down on prospecting time.
A P P E N D I X !
Sales + website process
Online Payment Systems!
User Profiles and Dashboards!
Option to self select for demos of premium
products!
Multi-currency online payment options will allow sales to more easily close on large clients, and will also allow more casual users to purchase individual articles of interest to them without sales time required. Decreases closing time, increases volume of sales.
Sales team members will have contact information, article view histories, pay-per-view purchase lists & other user data they can use to inform their pitch & sales strategy will pursuing hot leads. This also makes scheduling meetings faster and decreases closing time.
Easy exploration via demo of premium products increases client product knowledge & reduces sales touch time. This reduces demo time.