investors
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Α Microfund targeting Emerging tech and the Web in Greece and Southeastern Europe
www.theopenfund.com
The VisionCreate an ecosystem that will promote high tech entrepreneurship(business + technology) and will yield high returns to all participants
Network of Advisors
Entrepreneurs
Executive Board
Investors
The First stepInvest and foster the most promising startups
Open call for proposals
Selection of the best ideas or prototypes (up to 5 for every round)
Fund and incubate the most promising (20k-30k€)
Provide advice and guidance until the exit
WHO ARE WE
THE OPPORTUNITY
THE PROCESS
INVESTOR INFORMATION
AGENDA
Executive Board TeamManaging Directors
• Georgios Kasselakis, Entrepreneur, Organizer Thessaloniki Open Coffee– Operations
• George Tziralis, Co-Founder & CEO, AskMarkets, Principal Organizer of Athens Open Coffee– Overall Management / Operations
Board Members• Apostolos Apostolakis, Co-founder and CFO, e-shop.gr, Athens• Dimitris Athanasiadis, Entrepreneur, Co-Organizer of Athens Open Coffee
– Operations• Onic Palandjian, Investment Director at Capital Connect Venture Managers SA,
Athens• Sokratis Papafloratos, Co-founder and CEO, trustedplaces.com, London• Spiros Xanthos, Co-founder and VP of Engineering, Pattern Insight, Mountain
View CA• Teresa Farmaki, Head of Private Equity & Operating CEO, Piraeus Bank &
Pireaus-TANEO clean tech fund
Advisors (so far)
• Startup advisors– Tasso Argyros, Co-Founder & CTO, Aster Data Systems
• Raised more than $25 million of funding in 3 years
– Apostolos Apostolakis, Co-Founder & CFO e-shop.gr• Grew e-shop.gr to more than 120 millions of revenue
– Sokratis Papafloratos, Co-founder and CEO, trustedplaces.com, London– Andy McLoughlin, Co-founder and Product Director, Huddle.com– Spiros Xanthos, Co-Founder & VP of Engineering, Pattern Insight
• Turned university technology to a successful startup
• Technology advisors– Haris Ermopoulos, Software Engineer for Google File System– Panos Ipeirotis, Associate Professor CS at Stern Biz School NYU– Georgios Kasselakis, Entrepreneur, Organizer Thessaloniki Open Coffee– Patrick Malone, CTO Microsoft Hellas
• MS is also a sponsor
A strong network of advisors has been formed (and growing) to help the funded companies
Advisors (so far)• Investor Community
– Franceso Benincasa, Director at Ultimate Holdings• Networking in the UK
– Aristos Doxiadis, Managing Director Notos Associates– Onic Paladjian, Director at Capital Connect Ventures
• Founded several successful startups in the past himself
• Sales and management– John R. Lovitt, Investor, former SVP at IBM/Rational
• Interested in investing
– Yiannis Methodios, Ex-CEO (Greece), Accenture – George Saliaris Fasseas, Country Manager (Greece), Google– Christos Tsangos, CEO (Greece) Microsoft– Ioannis Vasilaras, Ex-CEO, Infote
• Accounting and legal– Andreas Akavalos, Ex-CEO (Greece), PriceWaterhouseCoopers
Advisors (so far)• PR, Marketing, New Media
– Petros Katsampouris, CEO, Vivechrom
– George Tziralis, Organizer of Open Coffee Greece
• Grew Open Coffee GR from 0 to more than 300 people per event
WHO ARE WE
THE OPPORTUNITY
THE PROCESS
INVESTOR INFORMATION
AGENDA
Necessary Preconditions Exist
• Education– 1.7% of the population holding Masters’ degrees &
PhDs (among the highest in Europe)
– Highest per capita number (in Europe) of people who study abroad (and want to return to Greece)
• Community & Entrepreneurial Momentum– Open Coffee attracts ~300 participants per month
in two cities. Proportional count for 4 more cities.
– “Innovation 2006” competition from Otenetattracted 2700 participants
Untapped Potential
0,00%
1,00%
2,00%
3,00%
4,00%
5,00%
6,00%
7,00%
Lith
uan
ia
Latv
ia
Gre
ece
Fin
lan
d
Un
ited
Sta
tes
Po
lan
d
Slo
ven
ia
Esto
nia
Icel
and
Swed
en
No
rway
Hu
nga
ry
Den
mar
k
Irel
and
Spai
n
Ro
man
ia
Un
ited
Kin
gdo
m
Bel
giu
m
Slo
vaki
a
Net
her
lan
ds
Po
rtu
gal
Fran
ce
Ital
y
Turk
ey
Cze
ch R
epu
blic
Bu
lgar
ia
Jap
an
Cro
atia
Au
stri
a
Ger
man
y
Swit
zerl
and
Cyp
rus
FYR
OM
Alb
ania
Mal
ta
Liec
hte
nst
ein
Luxe
mb
ou
rg (
Gra
nd-
…
Τίτλ
ος
άξο
να
% population in Higher & Highest Education
Source: Eurostat
Availability of Funding
Public companies
Ava
ilab
ility
Seed funding
Western Europe & World
Buyout
Availability of Funding
Public companies
Ava
ilab
ility
Seed funding
Greece & SE Europe
Buyout
Seed stage funding is nonexistent today in
Greece and SE Europe
Distribution of Funding
Stage Greece (‘07) Europe (‘07)
Early 0 €3.35 B
Development €52 M €3.9 B
VC €102 M €10 B
Buyout €5.4 B €60 B
↓ 2x
↓52x
↓ 2.5x
↓ 6x
↓ 1.2x
Source: Private Equity Activity Survey 2008, European PE and VC Association
Seed funding (% GDP)
0,000
0,000
0,001
0,001
0,002
0,002
0,003
0,004
0,005
0,011
0,012
0,012
0,013
0,015
0,015
0,024
0,024
0,027
0,027
0,030
0,035
0,039
0,040
0,053
0,058
0,224
0,000 0,020 0,040 0,060 0,080 0,100 0,120 0,140 0,160 0,180 0,200 0,220 0,240
Czech Republic
Latvia
Slovakia
Poland
Greece
Italy
Austria
Romania
Hungary
Germany
Belgium
Netherlands
Norway
Denmark
Ireland
Iceland
Switzerland
Spain
Finland
France
United States
Portugal
Israel
EU
Sweden
United Kingdom
• More than 40 events
– Held hands with every single related event in Greece
• 2500+ total attendants
• 132 presentations
• 0 budget
• Guest speakers, including:
– J. Calacanis (Blogs inc)
– K. Mitsotakis (Former VC, Member of the Greek parliament)
– A. Diamantopoulou (EU Commissioner, Shadow minister of Development)
– V. Makios (Corallia, semiconductor companies incubator)
– 10s more
Privileged access to the startup ecosystem in Greece
WHO ARE WE
THE OPPORTUNITY
THE PROCESS
INVESTOR INFORMATION
AGENDA
Structure
Network of Advisors
Entrepreneurs
OPENFUND
Executive Board
Investors
Connect entrepreneurs and investors, provide all that isneeded to start, grow and sell successful ventures
Find the Best Entrepreneurs
• We have almost set-up from scratch an entrepreneurial ecosystem (open coffee)
• Now we are looking for the best and brightest, to set-up the most capable of teams and invest themselves exclusively for 4 months
• To build and launch disrupting products
• The idea is just a start, team and execution is of paramount importance
The Selection Process
• Three rounds of selection:
1. Online submission
2. In person interview
3. Presentation day (investors participate)
• Stake in up to 5 ventures / round
• 20-30K€ per investment for 20% equity
• Iterating, 4 month stages
Benefits for Entrepreneurs
• Mentoring & networking– Leverage advice & connections from the best in the field,
tech & business– Advice can be as useful as cash
• Funding– Seed capital to cover all operational expenses for the 4-
month "incubation" period
• Smooth Start– Create the company for them at no cost– Handle all the legal / accounting issues, provide advise
• Grow– Take direct advantage of the network to grow and raise
more money as needed
Targeted business models
• subscriptions (fixed/variable), freemium
• license, SaaS, white label
• marketplaces, ecommerce and open calls
• advertising, content re-purpose & affiliate sales
• hybrids of the above (micropayments, affiliate advertising etc)
We bring expertise on these models on board, we are open to others too
WHO ARE WE
THE OPPORTUNITY
THE PROCESS
INVESTOR INFORMATION
AGENDA
Benefits for Investors
• Open Coffee Greece is the ultimate destination for new startups
• Micro funds (YCombinator, Techstarts, etc.), have been very successful
– Nevertheless, closest to Greece is Seedcamp, based in the UK
Access to the best opportunities in SE Europe
Benefits for Investors
• The OpenFund organizes everything (processes, paperwork etc)
• Investors are involved as much (or as little) as they want with the funded companies– They do participate in the selection
• Diversify by participating in every company of a round
• Extensive network of advisors and investors multiplies chances for successful exit
Effortless diversification of the investments
Benefits for Investors
• Promote entrepreneurship in Greece & SE Europe– Funding and advising is what’s missing
– Access to a portfolio with the most promising ventures in the region
• Open Coffee has been recognized by the media for promoting entrepreneurship – High profile successful entrepreneurs, executives
and politicians participated and want to help
Social Impact and Extensive Promotion Opportunities
Investment Approach: Funding 2.0
Invest in on-line services Iterate and Improve
Aim for the global market
Evolution of technology:Open Source, AWS, AppEngine, Azure, Cloud Matrix, Ruby on Rails…
4-strong team of great individuals is enough tocreate a disrupting product
Sharing the Stakes
8% Management Board12% Investors80% Entrepreneurs
100%
Investor concerns
• Minimum participation = 30.000€
• Amount is spread on all the companies of a round, up to 5
• If sufficient for more than 1 round, it is used in a predefined manner over rounds
• Example: 30.000€ gives a 2.4% stake in 5 companies
• Remember: a success for our startups is to sell or have profit of x-times over the seed amount
Investor rights
• Tag along for all investors of each company
• Right of first refusal for all investors of each company
• No drag along
• Some rights are arbitrated by the Executive Board when many investors are participating*
Breakeven Analysis200K € average exit for Investors to break even,
beyond that, it’s Profit
-125
355
1795
-500
0
500
1000
1500
2000
0 100 200 400 800 1600 3200
5 Companies (Single Round) Exit/Profit
Profit
Average Exit (in 1000s)
Pro
fit
(in
10
00
s)
Past cases• Goal achievable according to experience from similar ventures
(YCombinator, SeedCamp, TechStars)• SeedCamp
– 6 & 7 companies in 2007-8– 30% of the companies had 2nd round valuated at minimum $1M
• TechStars– 19 companies in 2 years, 40% were sold– $6.9M for SocialThing.com– IntenseDebate sold to Wordpress.com (undisclosed $>10M)– $.8M average 2nd round of funding for the rest
• YCombinator– 80 companies in 4 years– 2nd rounds include: Xobni $5.2M, Loopt $12M,
Justin.tv $2M, Scribd $3.7+9M– Sales include Omnisio $15M, Auctomatic $5M, Reddit $>10M
Fundraising
• Looking to raise funding for 5 consecutive rounds
• Up to 150.000 € / round
• 750.000 € total
• Minimum Investor Participation: 30K €