STARTING AN INSURANCE

COMPANY IN GREECE

LAUNCHING A START-UP AT A TIME OF CRISIS

UNIVERSITY OF CYPRUS PRESENTATION

MARCH 2014

¡  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! �

¡  32 PEOPLE IN 3 COUNTRIES. �

¡  A LONG JOURNEY: 3 YEARS FROM START TO OUR FIRST SALE. �

¡  RAISED EUR 12M FROM A GROUP OF ANGEL INVESTORS. �

HELLAS DIRECT: OUR STORY.

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�

1/2 2/3 4/5

EXPANSION � FOLLOW-ON �EUR 30-50m � EUR 50m> �

GROWTH �

EUR 10-30m �

BREAK EVEN �

START-UP SURVIVAL

RATE

THE ‘WHAT THE FUCK’ CHART OF THE DAY.

ENTREPRENEURS LIVE IN A REALITY DISTORTION FIELD.�

WHY GREECE? ��A SCREWED UP COUNTRY: �GREECE IS RUN BY CROOKS AND INCOMPETENT POLITICIANS. ��A RESET OPPORTUNITY: GOING THROUGH A HUGE TRANSFORMATION.��LARGE ENOUGH: �A MARKET OF 11M PEOPLE.��

WHY CAR INSURANCE? ��OBLIGATORY BY LAW: �EUR 2BN MARKET SIZE.��LETHARGIC COMPETITION: �HIGH COSTS AND INEFFICIENCIES.��MIDDLEMAN IS STILL KING: OBSENE COMMISSIONS.�

WHY NOW? ��STRUCTURAL CHANGES: �TROIKA INTRODUCED BETTER REGULATION.��STRONGER DEMAND: �TECHNOLOGY FUELLING THE RISE OF THE CONSUMER.��DROPPING COSTS: �THIS IS THE BEST TIME TO BUILD A BRAND.��

CHALLENGES

THREE

BIG

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.�

THERE IS A HIGHER CHANCE OF BETTING ALL YOUR MONEY ON BLACK IN A LAS VEGAS ROULETTE AND WINNING…��

… 7 CONSECUTIVE TIMES! �

… AND THE ODDS WERE NOT ON OUR SIDE.

BUILD A GREAT COMPANY.

INVEST IN TECHNOLOGY.�ALGORITHMIC PRICING.�CLOSE TIES WITH ACADEMIA.�

KEEP INNOVATING: �HIRE THE BEST: �

INTELLIGENCE.�PASSION.�A DRIVE TO MAKE THINGS BETTER.�

GET LICENCED: �

A YEAR OF PAPERWORK.�DETAILED BUSINESS PLANNING.�LATEST EU REGULATIONS.�

THREE BASIC INGREDIENTS NEEDED.

GET YOUR MESSAGE OUT.

APPEAL TO THE INNOVATORS FIRST.

NOT EVERYONE WILL GET IT – TARGET YOUR TRIBE FIRST! �

Word of Mouth

THINKING OF STARTING YOUR OWN BUSINESS?

BELIEVE ANGELS.

(OR SHOULD YOU?)

MOST ANGELS ARE ROCK STARS! �FINANCIAL BACKERS�BRAND AMBASSADORS�ADVICE/SUPPORT�MENTORSHIP�CONTACTS�

BUT… THERE ARE SOME REAL PSYCHOS OUT THERE.

FOUR ANGEL TYPES THAT WILL DEFINITELY MAKE YOUR LIFE DIFFICULT. COLLECTIVE OBSERVATIONS FROM DIFFERENT ENTREPRENEURS. �SHARED WITH LOVE, CARE AND LOTS OF TEARS.�

THE SHARK. ��CHARACTERISTICS: �RUTHLESS.�CALCULATIVE.�PUSHY.��DRIVEN BY: �GREED.��WHAT’S THE WORST �THAT CAN HAPPEN?�PAINFUL TERMS.�ROUGH INTERACTIONS.�BLACKMAIL AT EXIT.��

A

THE GOD . ��CHARACTERISTICS: �IMPOSSIBLE TO PLEASE.�OPINIONATED.�SUPERIORITY COMPLEX.��DRIVEN BY: �PERSONAL GLORY.��WHAT’S THE WORST �THAT CAN HAPPEN?�NARCISTIC BEHAVIOUR.�INTRUSIVE.�CONSTANT CRITICISM.���

B

THE ROYAL. ��CHARACTERISTICS: �SELF-CENTRED.�TAKES NO ACTION.�NEEDY.��DRIVEN BY: �LEGACY.��WHAT’S THE WORST �THAT CAN HAPPEN?�ERRATIC BEHAVIOUR.�UNDERMINING.�CONSTANT REASSURANCE.��

C

THE MUPPET. ��CHARACTERISTICS: �EMOTIONAL.�INSECURE.�CONSENSUS-DRIVEN.��DRIVEN BY: �RANDOM.��WHAT’S THE WORST �THAT CAN HAPPEN?�REPEAT THINGS 1000 TIMES.�WANTS TO BECOME YOU.�ACCIDENT PRONE.���

D

TIP OF THE DAY: TIME IS YOUR MOST PRECIOUS ASSET – DO NOT WASTE IT. IF SOMETHING DOES NOT FEEL RIGHT WITH AN ANGEL YOU MEET, GET THE HELL OUT! ���������alexis.pantazis@hellasdirect.gr�emilios.markou@hellasdirect.gr �

Thank !You!!