1 / 16

Market Acceleration Center (MAC)

Market Acceleration Center (MAC). Quick Background. Who Are We ? An organization of successful CEO's, Entrepreneurs and Thought Leaders who enjoy being involved with and building great companies.

esmeralda-gonzales
Download Presentation

Market Acceleration Center (MAC)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Market Acceleration Center (MAC)

  2. Quick Background • Who Are We? An organization of successful CEO's, Entrepreneurs and Thought Leaders who enjoy being involved with and building great companies. • What Do We Do? Holding company that starts, owns and manages a portfolio of Early Stage technology companies in proven markets with rapid growth potential

  3. Steven Cakebread Past President salesforce.com Dr. Robert Kaplan Harvard Business School (Balanced Score Card etc) Greg Smith President Xerox Mortgage Svcs Joel Ronning, CEO Digital River Tim Mattox Worldwide Product Mgt Dell Ron Verni Retired CEO Sage Software Board of Advisors

  4. Fellows Tom Lamb, Past CEO Agilex/Kelco/Huber. Michael Blake, Director of Valuations Habif, Arogeti & Wynne. Michael Reene, Past Head of Strategy ChoicePoint. Jim Noble, CEO Noble Systems. Stephen Walden, Past Founding Team Prodigy & Bellsouth.net. Dick Cook, Past CEO MAPICS. Larry Smith, Retired General Counsel Home Depot. Erik Sebusch, Investments Portfolio Mgr UPS.

  5. Michael Price General Partner Floyd Hoffman Director of Corporate Dev. Nicole Lobisco Director of Marketing Svcs Donna Wise President, SurveyExecutives John Sabol President, ListK Bryna Larsen President, LoudJob Dori Lindsey Director: MAC Melinda Burns HR Services Executive Team

  6. Increasing Angel Returns Fundamentally Two Ways to Make More in Angel Investing: • Increase Odds of Each Company's Success. 2. Increase Odds of Owning Part of an Outlier. (through better funnel, picks, diversity).

  7. What Got Our Attention? • Lost more startups from lack of market traction than all other risk factors combined. • Massive waste of capital when a product was viable but market traction wasn't reached. • Extreme variability in building an effective sales team for any given product.

  8. Worth The Time? 1. Where Most of Us Invest Time Now: (Stats from AngelSoft): • 1 in 100 companies formally requesting Angel funding secure it. • 75% eliminated by initial screening process. • 14% eliminated by live presentations and discussions. • 10% eliminated by the due-diligence process. • 1% secure Angel funding. • Historically 1 in 10 of these exit at a high multiple so: • 0.1% truly succeed (1 in 1000 formally seeking capital). • Massive Amount of Angel Time Spent on Picking.

  9. Worth The Time? 2. What If We Could Increase Each Co's Odds of Success? • Startup Odds Much Different than Venture Odds: • High Multiple Exits: 1-2 vs 2-3 in 10. • Returned Capital: 2-3 vs 3-4 in 10. • Write-Offs: 6-7 vs 4-5 in 10. * Further Southeast "Penalty" (lower Saturation, Support, Synergy, Syndicates). What if we could move just 1 in 10 up the ladder? • High portfolio IRR difference.

  10. How Do We Manage Startup Risk? 1. Diversification Risk (Pre-Investment). - Enough cos to have good odds of owning "Outliers". 2. Exit Risk (Pre-Investment). - Degree of interest by potential buyers pre-launch. - Right space to likely command a premium at exit time. 3. Market Risk (Pre-Investment). - Profitably reachable, would they consider you, enough of them, enough spend? 4. Development Risk (Pre-Investment). - What do they want? (not would they buy "This"), enough value/margin. - Core IT team, market-driven specs, cost advantage. 5. Sales Risk (Highest Impact on a Current Portfolio). - Can leaders crack the positioning nut then replicate w/reps. - Sales efficiency issues.

  11. Where To Start on Sales Risk? We asked Those With Good Outcomes: • True Startup-To-Exits (ie. ISS, etc). • Frequent New/Scaling Products (ie. Sage, Infor, etc). • Rising Pre-Exits (ie. Hannon-Hill, Mansell, etc) Observation on Findings: • Shockingly Consistent. • Process driven, beyond a few rainmakers. • Great innovation among these processes. (ie. rapid defined advancement) • Findings handout.

  12. What Are We Building? • Market Acceleration Center (MAC). • Ensures both Best Practices and Synergies. • NASCAR Pit Stop. • Dangers: Cos must "own" the process we help them fast track. • Litmus: Would exit buyer feel processes/control not owned.

  13. Additional Unique Leverage. Lead Generation (via our ListK). • Deepest executive databases via web data mining. • Provides D&B, Hoovers, InfoUSA, etc with emails etc. • Does lead generation for IBM, Oracle, AT&T Biz, etc. • All warm vs cold calls plus autodialing.

  14. Warm vs. Cold Calls A. Old Way: Cold Calls 1. Best lists carefully chosen. 2. Cold call each name in the list. Results: Fairly high telemarketing cost per lead or sale, only the best lists will yield enough sales to make them ROI positive. B. Better Way: Warm Calls 1. Larger prospect lists chosen than could be affordably telemarketed (larger funnel). 2. Emails sent first to detect click-throughs by interested prospects (warm leads). 3. Warm calls made within seconds while prospects still at their desks (less voicemail). Results: Warm vs. Cold Calls Much higher revenue per call. Higher total sales from larger initial funnel.

  15. Additional Power Tools. • Extreme Visibility (ie. PlugMeIn.com). • Click-Through Rapid Live Connection. • Anonymous Visitor Identity/Alert Tech. • Instant Web Demo Tools.

  16. Summary Before We Go Cut the Ribbon. • Rising Tide Lifts All Ships. • Success breeds success (ie. Security/Healthcare software etc). • We don’t have all the answers—like to share. • My contact: mprice @ ceoventures.com

More Related