1 / 62

An iBelay Update

An iBelay Update. January 27, 2000. Agenda. iBelay FastIdeas Colorado Market focus for investing Investments Status. Venture Accelerator. $100 M Fund. 6 Month Execution. P2. P3. P4. P15. iBelay Strategy. 15 portfolio companies in 2000 Position as public operating company

margie
Download Presentation

An iBelay Update

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. An iBelay Update January 27, 2000

  2. Agenda • iBelay • FastIdeas • Colorado • Market focus for investing • Investments Status

  3. Venture Accelerator $100 M Fund 6 Month Execution P2 P3 P4 P15

  4. iBelay Strategy • 15 portfolio companies in 2000 • Position as public operating company • 10 of 15 companies will fit the operating model • 2 liquidity events in 2000 • Position for exit by Q4 2000 • IPO of operating company • sell to ICG, CMGI, Safeguard • long term hold

  5. P2 P3 P4 P15 Structure iBelay Partners, LLC Pete Estler & John Moinester FastIdeas, Inc. Data center Technical consulting Recruiting Finance/admin and legal Physical real estate Business planning and strategy Marketing communications P1 • iBelay, LLC • Fund of Limited Partners Employees • FastIdeas, LLC • Pete Estler, Managing Member Cash Services Common SharesPreferred SharesNon-Statutory Options

  6. Status of Funding • Closed on $45 M - Dec. 6th • 2nd ClosingScheduled Feb. 16th • $55 M Targeted for 2nd Round • Shaw Comm. = $10 M • Shaw Family = $5 M • Tango = $?? • Barnard = $50 M • Possible Debt Financing for 2nd Round Deals • Re-Investment Strategy

  7. Deals done DataPlay Epidemic Marketing NetLibrary Productbuzz Ereo Deals pending FastIdeas Grant Seekers Contact Zone Sub-Prime Advantage PEO RT/One Deals Status

  8. Target Deal Structures *Includes FastIdeas Portion

  9. THE iBELAY ACCELERATOR FastIdeas

  10. Accelerator Business Model FastIdeas • Funded and 100% owned by iBelay • $2M invested • Break even on services delivered • Focus • support execution of 6 month acceleration plan • success = 1st round funding within 6 months = company stands on its own

  11. FastIdeas Accelerator Services • Data center • Technical consulting • Recruiting • Finance/admin and legal • Physical real estate • Business planning and strategy • Marketing communications • Networking/Rolodex

  12. FastIdeas Acceleration Process 6 month focus on four objectives • prove the business model; rigorous metrics • 1st Customer • management team • scalable system write biz plan 1 mo. $25 k prove business model 4-6 mo. $1.5 M IPO/Exit scale business 3-12 mo. $15+ M

  13. Accelerator Management FastIdeas Options Pool 5% 5% 5% 5% 5% P1 P2 P3 P4 P15

  14. COLORADO“The Wild Wired West”

  15. COLORADO: The Wild Wired West • job growth • educational attainment • economic vitality The nation’s leader in...

  16. COLORADO: The Wild Wired West • 2nd highest concentration of hi-tech workers • 2nd highest percentage of population online • 3rd highest percentage of PC households • 3rd highest percentage of Web-enabled businesses A wired work force...

  17. COLORADO: The Wild Wired West • #3 domestic relocation destination • Governor’s Commission on Science and Technology • Colorado Institute of Technology • $250M initiative to build the “MIT of the West” • Reasonable cost of living • Denver: 90% San Francisco, 67% Boston • Boulder: 68% Menlo Park, 84% Cambridge Future forces...

  18. COLORADO: The Wild Wired West Future forces…VC investment in formative stage Internet ventures: Q1-3, 1999 $58.1 M invested in 1st three Quarters of 1999

  19. Colorado’s Anchor Technology Companies

  20. THE DIRECT MARKETING OPPORTUNITY

  21. DM &Brand Advertising: $370B in 2003 7.1% CAGR • iBelay will capitalize on shifts within DM

  22. DM Break Out: $222B in 2003 6.2% CAGR • iBelay focuses on the Internet channel

  23. Online Advertising Media Spending Trends • 51% CAGR over the next 3 years

  24. Online Shift to DM: $5.5B in 2003 64.3% CAGR • DM share of Interactive advertising swells from 25% in 1999 to 65% in 2003

  25. Email the DM ‘Killer App’ • Email poised to become the cornerstone of multiple high-growth markets

  26. Email Trends • The most widely used Internet application • 99M Americans sent 335M emails daily in ‘99 • number of boxes will double within 3 years • daily volume will quadruple • Distinction between email messaging, marketing and customer service blurring

  27. OPPORTUNITIES RESULTING FROM BROADBAND

  28. Effects More Time Online Access from Anywhere More Online Spending Causes: Lower Cost Availability Ease of Installation Consistency of Promotion Shift in Consumer Behavior • Consumers get What they want, When they want , Where they want

  29. Why Broadband? • Today vs. Tomorrow • Which would you choose? • 56.6kbps vs. 36mbps Connections • Dial-up vs. Always on • Text based vs. Rich, Interactive Content • Expensive vs. Cheap Broadband Access • Lines at the Mall vs. e-Commerce Anywhere

  30. Bandwidth Demand Projections • Internet Network capacity doubles every 9 months • Internet Traffic doubles every 100 days • Source: Red Herring Feb. 2000

  31. OPPORTUNITIES RESULTING FROM THE SHIFT FROM PCs TO INTERNET APPLIANCES

  32. Information Explosion not Just for PCs 84.7% CAGR for Internet Appliances

  33. Market Shifts away from PCs • Mobility revolution • more mobile devices than PCs connected in 2003 • 1Billion handsets by 2003 • 51% growth in Personal Companions • Device independence • browser access to data and applications • Home networks • 10 M U.S. homes will be digitally remodeled by ‘02 $35 B Wireless Data Rev. in Europe by 2003

  34. Wireless Internet Access 134.3 M Wireless Data Computing Devices in 2004 17.2 M Wireless Data Computing Devices in 2000 2 Billion Short Messages per Month in Europe

  35. Wireless Data Revenue European Market Forecast by Application 2003 services/e-commerce = $18 B corporate extensions = $12 B

  36. Device Independence Hardware: cell phone PDA television pager radio Application: voice management video e-mail music

  37. Home NetworksPenetration and Revenues

  38. Why One Market Segment? Convergence of course • Phones were used for talking • Pagers were used for paging • PDAs were used for information Shift to application centric - platform independence • Phone, pager, PDA - just a device to run applications that • carry voice, message, store information

  39. Software Equip. and devices Wireless operators Wireless data Content Wireless Data Environment iBelay’s Focus

  40. Opportunities/Conclusion • Applications that take advantage of information explosion served to all Internet/Information Appliances • Applications that take advantage of mobile platforms/carrier technologies/protocols • Sharpest focus on intersection with direct marketing, broadband, and e-commerce

  41. CAPITALIZING ON BUSINESS TO BUSINESS (B2B) COMMERCE SHIFTING FROM OFF-LINE TO ON-LINE

  42. B2B Market Space • 1/4 of all B to B purchases made online by 2003 • Software spending to support B2B commerce • $1.65B in 1999 • $22.5B in 2004 • $43 B online trade of hard goods in 1998, will surge to $1.3 T by 2003 • an annual growth rate of 99%.

  43. Reasons for Shift • Attracts new customers • Reinforces customer relationships • Improves sales channels • Improves post-sale services • Removes inefficient distribution

  44. Trends

  45. Trends

  46. E-commerce Breakout (B $)

More Related