bowery capital - firm overview
DESCRIPTION
Overview deck for Bowery Capital - We send this to entrepreneurs before meeting with them so they know exactly what we are all aboutTRANSCRIPT
B/Bowery CapitalFirm Overview
I. Our Firm /
BOWERY CAPITAL
We Are Active Value-Added Partners To Early-Stage Tech Startups Transforming The Enterprise
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Mike Brown Jr.Nic Poulos Keegan Forte
David SoloffAdam Smith Neil Capel Zach Sims
founded Q2 2013 $250-$750K first money
2x reserves NYC & SF
$33MM Fund
primarily focused on early customer
acquisition
Value-Add
business software targeting next gen
CMO, CTO, CIO spend
B2B Thesis
Venture Partners
INVESTMENT TEAM
Eric Vreeland
BOWERY CAPITAL
We See A $357B Opportunity By 2020 As CMOs, CIOs & CTOs Upgrade Their Legacy Infrastructure
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Marke
ting
Platfo
rms
Busin
ess
Intell
igenc
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verti
sing
Tech
nolog
yCo
llabo
ratio
n &
Docu
ments
Secu
rity &
Pe
rform
ance
Paym
ents
& Co
mmerc
eInf
rastr
uctur
e &
Data
ERP &
SCM
External Upgrades (CMO) Internal Upgrades (CTO/CIO)
BOWERY CAPITAL
We Invest Significantly In This Thesis And Believe It Is The Greatest Area Of Value Creation Today
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Marketing (CMO) Upgrades Tech (CTO/CIO) Upgrades
BOWERY CAPITAL
Our Investment Decision-Making Process Is Designed To Take No More Than 2-3 Weeks
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Intro PhaseWeek 1
Meeting with 1-2 members of the Bowery Investment Team
Discussion in bi-weekly partner meeting
Internal diligence + potential follow-up Qs to fully understand
founder vision
Diligence PhaseWeek 2
2nd meetings with follow-up diligence & product demos
Intros to connect remainder of teams on both sides
Finalization of internal diligence: research, calls,
references
Confirmatory PhaseWeek 3
Discussion / negotiation of terms, structure, syndicate
Final meeting: remaining questions on both sides
Final partner meeting: decision + move to term sheet /
commitment
BOWERY CAPITAL
Our Value-Add & Portfolio Support Is Solely Focused On Helping Our Companies Grow MRR &ARR
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Pre Sales Sales Post Sales
Show + Create Sales Pitch Decks
Advise & Set Up My CRM
Advise & Set Up My Marketing Automation
Help Me Generate & Nurture Leads
Help Me Hire My First Sales Person
Make Customer Introductions
Give Me Intel To Close Leads Faster
Help Me Hire More Sales People
Grow Existing Customer Revenue
Advise On AM & Support Team
Build Case Studies
Advise On Sales Contracts
Advise on Licensing Agreements
Advise On How To Properly Price
Advise On Sales Productivity & Training
Sales Pitch Feedback
II. Our Thesis /
BOWERY CAPITAL
We Believe In Startup Technologies That Transform The Enterprise
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The most successful tech startups of the next ten years will be those focused on providing transformational
upgrades to existing corporations at the marketing and technology layer
BOWERY CAPITAL
Marketers & Technologists Across All Organizations Spend Money on Internal & External Tech Tools
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Marketing Executives (CMO) Technology Executives (CTO/CIO)“How do I market to my customers?” “How does tech better my organization?”
Intern
al Sp
end
Enterprise Planning (ERP) Collaboration Tools Internal Analytics Data Analysis Workforce Training Infrastructure Spend
Content Management (CMS) Advertising Technology Media Buying (TV, print, online) Marketing Platforms Customer Management (CRM) Market Intelligence
Exter
nal S
pend
BOWERY CAPITAL
This Spend Remains Large & Growing—Roughly $900B Today & Growing To $1.5T By 2020...
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External + Internal Tech Spend
300
600
900
1,200
1,500
1,800
1980 2011 2016 2020
Source: Gartner 2012 Internet Trends, JP Morgan Research, Forrester, eMarketer, PwC, MAGNAGLOBAL
BOWERY CAPITAL
...Yet Allocation Is Shifting Rapidly—$357B Of Total Spend Will Go To New Technologies By 2020
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External + Internal Tech Spend
0%
20%
40%
60%
80%
100%
1980 2011 2016 2020
25%16%
5%0%
39%46%
57%
94%
36%38%38%
6%
Traditional Technology (Internal) Traditional Marketing (External) Next-Gen Enterprise (External + Internal)
$357B}
Source: Gartner 2012 Internet Trends, JP Morgan Research, Forrester, eMarketer, PwC, MAGNAGLOBAL
BOWERY CAPITAL
This Is Primarily Due To Internet Natives Entering The C-Suite & Promoting Technological Change
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First ad she heard was on radio Used to use a Palm Pilot back in the 1980s and 1990s
First ad she saw was on the Internet Grew up using Facebook, Pinterest and an iPhone
Started career at IBM Grew up using $15,000 computer in the 1980s
Built mobile apps to get through college Grew up using a $1,000 computer in the 2000s
Marketing Executives (CMO) Technology Executives (CTO/CIO)
BOWERY CAPITAL 14
Marke
ting
Platfo
rms
Busin
ess
Intell
igenc
eAd
verti
sing
Tech
nolog
yCo
llabo
ratio
n &
Docu
ments
Secu
rity &
Pe
rform
ance
Paym
ents
& Co
mmerc
eInf
rastr
uctur
e &
Data
ERP &
SCM
External Upgrades (CMO) Internal Upgrades (CTO/CIO)
Internet Natives Have Already Started Upgrading The Enterprise With New & Relevant Technologies
BOWERY CAPITALBOWERY CAPITAL 15Table = SELECTED TOP NEXT-GEN DEALS FROM 2011-2013. TABLE FIGURES = $MM at date of exit. Source: CBInsights, 451 Research, SEC Filings & Press Releases. $38B NEXT GEN REVENUE = estimated 2014 REVS of all exited co’s. MULTIPLE = reflects an average of EV/Rev multiples from 2011-2013.
Date Acquirer Target Sector EV LTM Rev Multiple
Feb-11 CRM 1,433 216 6.6x
Nov-11 HR Tech 3,400 291 11.7x
Feb-12 HR Tech 1,915 309 6.2x
May-12 Commerce 4,315 502 8.6x
Jul-12 IPO Security 2,836 119 23.8x
Oct-12 IPO HR Tech 4,488 239 18.8x
May-13 IPO BI 2,000 127 15.7x
Jun-13 Marketing Tech 2,410 317 7.6x
Sep-13 IPO Security 2,326 162 14.3x
Oct-13 IPO Vertical / CRM 4,400 187 23.5x
Dec-13 Marketing Tech 1,550 194 7.9x
ALL TIME TOTAL 94,882 18,432 7.5x
Still At The Beginning Of An Enormous Opportunity: $38B In Next-Gen Revenues = Only 11% Penetration
est 2014 revs of exited next gen enterprise co’s
$38B
current market penetration
11%
total next gen enterprise rev forecast 2020
$357B
BOWERY CAPITAL
The Time Is Now & The Enterprise Has Never Been More Ready To Accept Change
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Solutions are becoming increasingly cost-effective - application layer creates non-infrastructure intensive solutions
Internet-native CMOs and CTOs are open to enterprise-level change - risk and safety being replaced by growth and leverage
Startups are getting better and better at understanding the enterprise sector - will see more and more companies building for this upgrade
Growth becoming industry-agnostic - future will see upgrades to every industry including education, health, and even your utility company
Thank You / Mike Brown Jr. [email protected] 201.741.4861