Smart Investment in IT Business
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Transcript of Smart Investment in IT Business
www.digital-future.org
Smart Investment In IT Business
Oleksii Vitchenko, Digital Future
Case study of
www.digital-future.org
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Speaker
Oleksii Vitchenko
Founder of Digital Future
Partner of well-known VC firms
Board Member of UAngel & member of UVCA
Oleksii is is serial tech entrepreneur and venture investor focusing on digital
businesses. He is widely recognized in Eastern Europe for developing
successful companies in e-commerce, digital and tech services. Oleksii is a
smart money investor that offer a highly regarded perspective on innovation
and the startup growth.
Smart Investment in IT Business
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400+ requests for investment processed
15 successful investment deals closed
45 startup events organized
Investment decision timeframe
$ 4 500 000 of total amount invested
Participation in key industry events
Digital Future: Key Facts Smart Investment in IT Business
4-6 months
9 month
30 min Minimal timeframe
Average timeframe
Maximum timeframe
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Create a Successful Tech Startup? What it takes to
Smart Money Smart Investment in IT Business
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Smart Money
Dumb money
D
Smart money
S
Consulting
C
Bulshit talk
B
MONEY
Expertise
Smart Investment in IT Business
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Expertise Money Courage
Smart Money Smart Investment in IT Business
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Types of Investors
D S
C B
MONEY
Expertise
Fools, Friends & Family
VC Funds
Investment Banks
Peer-to-Peer
FaceBook audience
Angel Investors
Corporate VCs
Accelerators
Incubators
Advisors
Board members
Employees
Smart Investment in IT Business
Smart Investors
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Types of Startups
Hobby / Lifestyle startups
SMB startups Venture capital startups
Social startups Scalable startups Startups for large corporations
Smart Investment in IT Business
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Startup Lifecycle
Idea development
Business model validation
Building MVP
Scaling
Smart Investment in IT Business
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Types of Smart Expertise
Networking Sales
Finance
Technical Business development
Business processes
Marketing
Legal
Admin & HR
Smart Investment in IT business
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Smart Expertise for Startups
2 1
Idea development Business model validation
Building MVP Scaling
Networking
Experience
Common sense
Business processes
HR
Technical
Administrative
Marketing
Sales
Business development
Finance
Legal
3 4
Smart Investment in IT Business
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Digital Future helps to find partners, build marketing
processes and acquire customers
Business development and marketing
Digital Future offers experience in b2c and b2b areas that
helps the portfolio companies build efficient sales
processes
Sales processes mapping
Digital Future actively shares experience of traffic generation
gained in a highly competitive e-commerce niches
Traffic generation strategies
Digital Future provides advice on the possible technical
limitations
Technical expertise
Digtal Future offers call-center support or provide other
resources to build support service to their portfolio
companies
Sales and support
Digital Future ensures portfolio companies avoid the most
common mistakes startups make by providing seamless
and timely legal and financial advise
Finance and legal
Digital Future: Smart Money Smart Investment in IT Business
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Business in related field Useful insights from day one
Positive feedback from other investors and startups
Expertise is not concentrated in one person
Direct access to expertise in key business areas
Successful investment cases
Smart Investment in IT Business
How to Identify Smart Investor?
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Smart Investment in IT Business
Jeapie Case Study
Relocation and «Mivina Time»
Validation of business model
Pivots Smart Investment from Digital Future
Revenue growth
M&A Exit
Idea development & grant
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Smart Investment in IT Business
Jeapie Case Study
One business model
Network capital
Three founders
Technical MVP
$ 30k grant First-Time-Founders
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Smart Investment in IT Business
Jeapie Case Study
Little understanding of a prospective customer
Lack of sales skills
No understanding of the further steps
Limited amount of money
Difficulties with closing an
investment round
First Challenges
Technology that is ahead of the market
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Smart Investment in IT Business
Jeapie Case Study
Digital Future
Technical expertise
Offered resources for the development of SDK
Marketing expertise
Validated the idea on different audiences
Finance expertise
Created planning and reporting system
Administrative expertise
Provided team with office space and desks
Entrepreneurial experience in e-commerce
Recognized the value of service Jeapie offers
Knowledge test
Checked if the team can make a delivery
Business development expertise Helped to expand business network and find partners
Sales expertise
Built sales processes
Legal expertise
Ensured business acquisition deal structure
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Sales team
Developers team
In-house marketing manager and content manager
Jeapie: Success Story
28 customers
2 strategic partners
Continuous revenue flow
3 prospective buyers
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Advice to Aspiring Entrepreneurs
of Successful Companies
Three Rules
Smart Investment in IT Business
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Advice to Aspiring Entrepreneurs
Quality first! Beat the competition by offering a superior
quality, not dumped prices
Rule #1:
Smart Investment in IT Business
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Advice to Aspiring Entrepreneurs
Revenue first! Put revenue growth in the first place, not
the cost reduction.
Rule #2:
Smart Investment in IT Business
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Advice to Aspiring Entrepreneurs
There are no other rules! Follow #1and #2
Rule #3:
Smart Investment in IT Business