hellas direct - 4th open coffee cyprus

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HELLAS DIRECT: SETTING UP A NEW INSURANCE COMPANY IN GREECE OPEN COFFEE (CYPRUS) FAMAGUSTA GATE 16 JANUARY 2013 (“STOP CHASING UNICORNS!”)

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Presentation by Alexis, co-founder of Hellas Direct, at the 4th Open Coffee gathering in Cyprus. [Melina Merkouri Hall, Famagusta Gate, Nicosia - 16 Jan 2013]

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Page 1: Hellas Direct - 4th Open Coffee Cyprus

HELLAS DIRECT: SETTING UP A NEW INSURANCE COMPANY IN GREECE

OPEN COFFEE (CYPRUS) �FAMAGUSTA GATE�16 JANUARY 2013 �

(“STOP CHASING UNICORNS!”)

Page 2: Hellas Direct - 4th Open Coffee Cyprus

Larry Page + Sergey Brin�

LIKE MOST ENTREPRENEURS, WE SET OFF THINKING WE’D BE THE NEXT GOOGLE GUYS …

* until this guy came along.�

GOOGLE: Largest tech IPO in history*.�

Page 3: Hellas Direct - 4th Open Coffee Cyprus

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�

… BUT WE SOON REALISED THAT REALITY CAN BE HARSH (9/10 START-UPS FAIL)

1/2 2/3 4/5

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

GROWTH �

EUR 10-30m �

BREAK EVEN �

START-UP SURVIVAL

RATE

Page 4: Hellas Direct - 4th Open Coffee Cyprus

THAT BIG IDEA

WE SPENT ENDLESS TIME SEARCHING FOR:

(HAVE YOU EVER DONE SO? BE HONEST…)

When  you  start,  the  tendency  is  to  go  for  the  sexy  stuff.  [Wonderbra  slide]  We  went  the  other  way.  Set  up  the  best  car  insuranc  company  in  Greece.  [monty  python  slide]    Our  journey  [our  journey  slide]  A.  First  you  get  the  money  [New  slide]  That  was  tough  [space  arcade  slide]  The  odds  are  definitely  against  you  [vegas  slide]  B.  Then  you  have  to  build  the  company    [new  slide]  Hire  the  right  people  [new  slide]  Build  your  technology  [new  slide]  Get  regulated  -­‐  bureaucracy  [new  slide]  C.  Then  you  have  to  sell  Who?  Innovators.  [new  slide]  ExponenNal  growth?  [new  slide]  How?  The  'Why'?  Find  your  tribe  [new  slide]    Some  days  are  tougher  than  others  [orthodox  jew  slide]  but  the  liPle  things  make  it  worth  while  [doxiadis  post  slide]  Enjoy  the  ride  [last  slide]  Books  that  inspired  us  [books  slide]  Thank  you  [thank  you  slide]  

Page 5: Hellas Direct - 4th Open Coffee Cyprus

WE LOOKED FOR AN IDEA WHICH WAS DIFFERENT TO ANYTHING EVER DONE BEFORE …

(WHAT SOME PEOPLE CALL THE PURPLE COW!)

Page 6: Hellas Direct - 4th Open Coffee Cyprus

... AN IDEA WHICH WAS SEXY, COOL AND TRENDY!

WOMENSLINGERIE

Page 7: Hellas Direct - 4th Open Coffee Cyprus

IT DID NOT TAKE US LONG TO GET THAT THERE IS NO MAGIC TO AN IDEA …

Page 8: Hellas Direct - 4th Open Coffee Cyprus

… AND THAT SOMETIMES THE BEST BUSINESS CONCEPTS ARE RIGHT UNDER YOUR NOSE

CARINSURANCE

Page 9: Hellas Direct - 4th Open Coffee Cyprus

STOP CHASING UNICORNS*

IF THERE IS ONE MESSAGE WE WANT YOU TO TAKE AWAY FROM TODAY’S TALK IS THIS:

(BORING IDEAS OFTEN MAKE BETTER BUSINESSES!)

* those different, sexy, cool and trendy big ideas. �

Page 10: Hellas Direct - 4th Open Coffee Cyprus

WHAT’S OUR STORY?

¡  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!

¡  23 PEOPLE IN 3 COUNTRIES.

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

¡  WE HAVE FACED THREE KEY CHALLENGES ALONG THE WAY…

Page 11: Hellas Direct - 4th Open Coffee Cyprus

CHALLENGE I: SECURE (REAL) FUNDING

Page 12: Hellas Direct - 4th Open Coffee Cyprus

2,500 APPROACHES

300 MEETINGS

11 INVESTORS

1.5 YEARS

FINDING INVESTORS WASN’T EASY …

1 IN 8 1 IN 27

Page 13: Hellas Direct - 4th Open Coffee Cyprus

99.56% REJECTION RATE

… AND THE ODDS WERE NOT ON OUR SIDE

THERE IS A HIGHER CHANCE OF BETTING ALL YOUR MONEY ON BLACK IN A LAS VEGAS ROULETTE AND WINNING… … 7 CONSECUTIVE TIMES!

Page 14: Hellas Direct - 4th Open Coffee Cyprus

CHALLENGE II: BUILD A GREAT COMPANY

Page 15: Hellas Direct - 4th Open Coffee Cyprus

THERE ARE THREE BASIC INGREDIENTS TO BUILDING A GREAT INSURANCE COMPANY

Invest in technology �Algorithmic pricing �Close ties with academia�

Keep innovating �Hire the right people �Get licensed�

A year of paperwork �Detailed business planning �Latest EU regulations�

Intelligence�Passion �A drive to make things better�

Page 16: Hellas Direct - 4th Open Coffee Cyprus

CHALLENGE III: DRIVE SALES

Page 17: Hellas Direct - 4th Open Coffee Cyprus

When  you  start,  the  tendency  is  to  go  for  the  sexy  stuff.  [Wonderbra  slide]  We  went  the  other  way.  Set  up  the  best  car  insuranc  company  in  Greece.  [monty  python  slide]    Our  journey  [our  journey  slide]  A.  First  you  get  the  money  [New  slide]  That  was  tough  [space  arcade  slide]  The  odds  are  definitely  against  you  [vegas  slide]  B.  Then  you  have  to  build  the  company    [new  slide]  Hire  the  right  people  [new  slide]  Build  your  technology  [new  slide]  Get  regulated  -­‐  bureaucracy  [new  slide]  C.  Then  you  have  to  sell  Who?  Innovators.  [new  slide]  ExponenNal  growth?  [new  slide]  How?  The  'Why'?  Find  your  tribe  [new  slide]    Some  days  are  tougher  than  others  [orthodox  jew  slide]  but  the  liPle  things  make  it  worth  while  [doxiadis  post  slide]  Enjoy  the  ride  [last  slide]  Books  that  inspired  us  [books  slide]  Thank  you  [thank  you  slide]  

LIKE ANY NEW IDEA, APPEAL TO THE INNOVATORS AND EARLY ADOPTERS FIRST

(NOT EVERYONE WILL GET IT – TARGET YOUR TRIBE FIRST!)

Page 18: Hellas Direct - 4th Open Coffee Cyprus

SOME DAYS ARE TOUGHER THAN OTHERS …

“Happy Hanukkah”�Israeli investor�

Tel Aviv, Israel�London, UK� Athens, Greece �

“Shaken not stirred”�Russian investor�

“Press 4 for help”�South African investor�

Page 19: Hellas Direct - 4th Open Coffee Cyprus

… BUT IT IS THE LITTLE THINGS THAT MAKE IT ALL WORTHWHILE

I have just insured my car with Hellas Direct in under 5’. If all other services (private or public) were as friendly to the user as this one, our productivity would be much higher and we would all be much calmer…

- a client’s facebook post

Page 20: Hellas Direct - 4th Open Coffee Cyprus

THANK YOU