500 FinTech Overview for ICICI Lombard - 2DEC16
0 likes594 views
This document summarizes a presentation given by Mike Sigal of 500 Startups to ICICILombard about the Silicon Valley FinTech/InsurTech landscape. It provides an overview of 500 Startups' funds, investments, and accelerator program. Key details include that 500 Startups is the most active early-stage investor in FinTech globally, having invested in over 1700 startups across 50 countries. It also outlines how 500 Startups works with corporate partners and describes some potential areas of collaboration between 500 Startups and ICICILombard, including startup investments.
More Related Content
![[PreMoney MENA 2015] Wamda Capital >> Fares Ghandour & Khaled Talhouni, "ONE ...](https://cdn.slidesharecdn.com/ss_thumbnails/i3ydvkgqsvobqe14wtbr-signature-509e38f284dbf8630eeef5bb32c36869f5e8403f416289e9cfa4c580d0b84e6c-poli-151206033112-lva1-app6892-thumbnail.jpg?width=560&fit=bounds)
![[PreMoney MENA 2015] Kalaari Capital >> Vani Kola, "THE GLOBAL VC: India"](https://cdn.slidesharecdn.com/ss_thumbnails/pjyhbxh8rpuchh2ijwfr-signature-509e38f284dbf8630eeef5bb32c36869f5e8403f416289e9cfa4c580d0b84e6c-poli-151206033113-lva1-app6891-thumbnail.jpg?width=560&fit=bounds)
![[PreMoney MENA 2015] Commerce Ventures >> Dan Rosen, "THE NEXT GREAT DISRUPTO...](https://cdn.slidesharecdn.com/ss_thumbnails/08danrosen-cvfintechpresentation-151206021857-lva1-app6891-thumbnail.jpg?width=560&fit=bounds)
![[ACA webinar] Investor Experiences with Online Equity Platforms](https://cdn.slidesharecdn.com/ss_thumbnails/acainvestorexperienceswithaccreditedplatform11315final-1-160114152927-thumbnail.jpg?width=560&fit=bounds)
![[PreMoney MENA 2015] Silicon Badia >> Emile Cubeisy, "MENA's Golden Entrepren...](https://cdn.slidesharecdn.com/ss_thumbnails/ldmr8e8r96eyt4dkpa9k-signature-509e38f284dbf8630eeef5bb32c36869f5e8403f416289e9cfa4c580d0b84e6c-poli-151206033112-lva1-app6892-thumbnail.jpg?width=560&fit=bounds)
Similar to 500 FinTech Overview for ICICI Lombard - 2DEC16 (20)
![UNIT 3 INTERNATIONAL BUSINESS [Autosaved].pptx](https://cdn.slidesharecdn.com/ss_thumbnails/unit3internationalbusinessautosaved-250828123159-46ee6bdc-thumbnail.jpg?width=560&fit=bounds)
500 FinTech Overview for ICICI Lombard - 2DEC16
- 1. / / Silicon Valley FinTech/InsurTech Presentation to ICICILombard December 2, 2016 Mike Sigal EIR & PARTNERSHIPS [email protected] *Please Do Not Distribute
- 2. / / Historically, winners are rare • 1-2% return 50-100x+ (“Unicorns”) • 5-7% return 10x-50x (“Centaurs”) • 10-20% return 3-5x • 65-70% return 0-1x Early indicators are clear if you know the KPIs Talent & Opportunity is distributed globally
- 3. / // Most Active Seed Investor in the World since 2010 $250M+ AUM 1700+ Investments 50 Countries
- 4. / // The title “Partner” is used in accordance with customary business practice in the venture capital industry and does not indicate a legal status as a “partner” in a partnership. Headcount includes employees, interns, and contractors as of May 31, 2016. Dave McClure Christine Tsai FOUNDING PARTNERFOUNDING PARTNER Khailee Ng MANAGING PARTNER Bedy Yang MANAGING PARTNER SOUTHEAST ASIA LATIN AMERICA 500 Startups Management & Investment Partners 130 people, 18 countries Hasan Haider MIDDLE EAST Santiago Zavala LATIN AMERICA Rui Ma CHINA/SF Marvin Liao SF Elizabeth Yin SILICON VALLEY Edith Yeung SF Sean Percival NORDICS Tim Chae SOUTH KOREA James Riney JAPAN Sheel Mohnot SF Pankaj Jain NYC/INDIA Matt Lerner UK Krating Poonpol THAILAND Natavudh Moo Pungcharoenpong THAILAND Binh Tran VIETNAM Rina Onur ISTANBUL Mat Johnson SF Eddie Thai VIETNAM SILICON VALLEYGLOBAL / SILICON VALLEY 25 yrs in SV as entrepreneur + investor Early Googler, strong operational experience Founded and exited two startups Recognized by Forbes as a multi-lingual, startup community leader
- 5. / // 4 Unicorns ($1B+ in valuation) 30+ Centaurs ($100M ~ $999M in valuation) * indicates companies that have already exited A Selection of Current Portfolio Wins * * * * * * Companies are a select sampling of investments across 500 Startups funds and will not be held in Fund IV. While Fund IV has not invested in the rounds of financing shown on this slide, at least one 500 Startups fund has invested in one or more rounds of financing for each of these companies. The valuations listed herein are estimated as at 12/31/2015 based on 500 Startups Valuation Policy as set out in the Appendix to this presentation. These numbers provide a snapshot of estimated valuation as at a particular time and may change. Further detail with regard to financing of companies listed on this slide can be found on Crunchbase.
- 6. / / How We Deploy Capital General Investment Strategy of All Funds • $50-150K First Check, $150-500K Follow On Checks Selection Criteria – Data-Driven Process Based on Pre-defined Metrics • Functional prototype (or previous product success) that solves a specific customer problem • Scalable internet-based distribution (search, social, mobile) or proven ability to scale sales • Capital-efficient business; operational at less than $1M in external financing • Measurable traction: engaged users, some revenue, and attractive unit economics • Cross-functional team with design, engineering and marketing expertise Investment strategy and criteria represent current investment model and may vary at the discretion of the 500 FinTech general partner. Terms noted on this slide may vary by investment. Accelerator Seed Distro Follow-On Angel Pre-Seed Seed Post-Seed Series A/B Growth
- 7. / / 500 Startups Family of Funds Global Funds Fund IV – Flagship 500 Mobile Collective 500 Fintech Regional Funds 500 Canada 500 Falcons (MENA) 500 Istanbul (Turkey) 500 Kulfi (India) 500 Kimchi (Korea) 500 TukTuks (Thailand) 500 Startups JP (Japan) 500 Startups Vietnam
- 8. / / World-class Accelerator is a critical success factor Accelerator Overview • 4-month program in Silicon Valley (4 cohorts / year) • $150K investment for 6% equity • Overall: >1500 applications > 250 interviews > 40 accepted = ~3% acceptance • Fintech: >300 applications > 10-15 startups/batch • Many post-launch, revenue-generating companies (no “idea-only”) Investment strategy and criteria represent current investment model and may vary at the discretion of the 500 FinTech general partner. Terms noted on this slide may vary by investment. Accelerator Seed Distro Follow-On Angel Pre-Seed Seed Post-Seed Series A/B Growth
- 9. / // Accelerator Deliverables Community Advice Curriculum Support Connections Money
- 10. / // CONFERENCES + EVENTS1 TEAM MEMBERS More than 50 events with 300-1,000 attendees per event, for a total reach of over 35,000 people in person + digital channels Design, technology, marketing, and product experts from top companies in Silicon Valley and elsewhere From 50+ countries around the world, our founders provide peer review and feedback on products, industry verticals, platforms, etc. 250+ 3,000+ MENTORS FOUNDERS 7 ATTENDEES 35,000 EVENTS 50+ 1. Conferences and Events are produced by 500 Startups Incubator, L.L.C. The 500 Startups funds do not participate in any revenue generated by these activities 2. The numbers represented on this page provide a snapshot of some of our Community-building platforms as at a particular time. They are estimated as of 12/31/2015 and may change. 500 Startups Events and Community Platforms COMMUNITY
- 11. / / The Case for Transformation in Financial Services
- 12. / / $13T
- 13. / / Digital changes ALL customer expectations
- 14. / / < 1% US Loans Originated Online Source: Wall Street Journal June 2016
- 15. / /
- 16. / / The best and brightest don’t want to work for incumbents.
- 17. / /
- 18. / /
- 19. / / FinTech/InsurTech: Technology-based solutions to make financial services more efficient, whether by disrupting or enabling incumbents.
- 20. / /// Source: McKinsey & CB Insights
- 21. / / 2014 Areas of Innovation - Global
- 22. / / Digital delivers superior margins…
- 23. / / 23 …and customer satisfaction Source: OnDeck company filings 76 46 19 9 OnDeck Community Banks Regional Banks Na<onal Banks Net Promoter Score US customers n=100
- 24. / /// Source: KPMG & CB Insights
- 25. / / Payments Lending Payments Payments Payments ‘GAFA’ anchors customers’ digital lives…
- 26. / / 434M Customers 8.5M Merchants 12.7B Transactions/Year Payments Credit Scoring Lending Banking Investments $60B Market Cap Sources: http://expandedramblings.com/index.php/alibaba-statistics/; Wall Street Journal Market Watch Apr 26, 2016
- 27. / / 27 FinTech Unicorns - $137B+ in Market Cap http://www.bizjournals.com/sanjose/news/2016/03/09/19-fintech-unicorns-that-might-end-up-being-real.html
- 28. / /// Source: CBInsights data 0 10 20 30 40 50 60 70 80 90 2011 Q1 2011 Q2 2011 Q3 2011 Q4 2012 Q1 2012 Q2 2012 Q3 2012 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 FinTech M&A Ac;vity: 2011-2015 M&A IPO Exits in the space are climbing 300 in 2015 vs. 100 in 2011
- 29. / / 29 Different subsectors & regulation = different industries Tipping point Laggards shrink / die “New normal” New technology emerges Innovative startups disrupt Early adopters proliferate Advanced incumbents start adapting Mainstream customers shift Source: McKinsey & Company & Mike Sigal Analysis Capital Markets Full Stack Banking Lending Wealth Management Payments
- 30. / / 30 FinTech will decimate margins. Source: PwC Global FinTech Survey 2016 28% 24% 23% 22% 21% Fund transfer & payments Banks Average Asset/Wealth management firms Insurance firms % of Top Line estimated to be lost
- 31. / / 31 How are Incumbents Responding?
- 33. / / 33 500 Corporate Innovation Framework Dealflow Finding the right startups & ideas Engagement Working with them Outcome Getting results Partner Invest Acquire Accelerators/Outposts PR/Sponsorships, Competitions/Events, VC Fund Investmetns Skills/Talent Market Share Positioning/Recruiting Corporates need the right startups AND internal processes to get results
- 34. / / Transformation Toolkit SV Tours Attending Conferences Lab/Accelerator/Sandbox Silicon Valley Outposts FinTech Hubs Engaging with Regulators Startup Partnerships Direct Startup Investments (CVC) Acquisitions Venture Fund Investments
- 36. / / Don’t mistake ‘Digitalization’ for ‘Digital’ Sell the right vision to executive leadership Get some startup/VC mojo…company wide Find the ideas globally Pick the right KPIs for the right time Engage customers & stakeholders often Disciplined, rapid experiments & reporting #GET500STRONG Rules for Building Innovation Capabilities and Culture
- 37. / / Financial Services for the Rest of Us!
- 38. / / Source: https://www.cbinsights.com/blog/fin-tech-funding-growth/ Most Active Early-Stage FinTech Investor in the World
- 39. / // Wealth/Investing Financial Management Payments/Transfers Lending Crowdfunding Insurance Red outline > $1B in value - Blue outline $100m-$1B in value Blockchain Fast growing disrupters & enablers
- 40. / // Active FinTech investments in 24 countries & growing Investments by Country – Q3 2016 Argentina 1 Indonesia 1 Singapore 3 Austria 1 Japan 1 Slovenia 1 Brazil 3 Jordan 1 South Korea 2 Canada 1 Kenya 2 Sweden 1 China 2 Malaysia 2 Thailand 1 Estonia 1 Mexico 6 UK 1 Germany 1 Columbia 1 Ukraine 1 India 5 Nigera 1 USA 87
- 41. / / Platform for Digital Transformation of FinServe Global brand & startup deal flow Early-Stage Venture Fund Silicon Valley Accelerator Corporate Partner Program Startup & Corporate Expertise Network of mentors, founders & investors
- 42. / / FinTech track at 500 Startups SF Accelerator 500S curriculum + FinTech content Run by FinTech entrepreneurs Only pure-play FinTech accelerator in SV Global community of FinTech Angels, VCs, Corporate Innovators & Mentors
- 43. / / Corporate Partners leveraging 500 FinTech’s platform
- 44. / / 44 500 Corporate Innovation Framework Dealflow Finding the right startups & ideas Engagement Working with them Outcome Getting results Partner Invest Acquire Accelerators/Outposts PR/Sponsorships, Competitions/Events, VC Fund Investmetns Skills/Talent Market Share Positioning Corporates need the right startups AND internal processes to get results
- 45. / /// 500 Startups Corporate Innovation Services Accelerate the development of innovation processes and capacity Portfolio Access 500 Dealflow Custom Dealflow Dealflow Process Corporate Training Immersion Programs 500 Courses Ecosystem Engagement Team Recruitment Innovation Audit Strategy Formation PoC Strategy Accelerator Strategy CVC Strategy Dealflow Development Engagement Capacity Outcome Definition
- 46. / / Basic Portfolio Access • Event Invitations • Newsletter Commercial Partnership Upside: Corporate FinTech Accelerator LP Investment 500 Startups Corporate Innovation Service Delivery
- 47. / / 500 FinTech LP Investments Partnership Benefits PLUS Financial Returns Early stage co-investment opportunities
- 48. / / ICICI Lombard Interests Roboadvising (Distribution) • Embroker (embroker.com) • Indio (useindio.com) • Inzmo (inzmo.com) • VisionX (visionx.co) • Trym (trym.co) New Products • WorldCover (worldcovr.com) Drone based surveys • BetterView (presentation) David Lyman [email protected] Blockchain • Chain (chain.com) AI • Datatron (presentation) Harish Doddi • [email protected]
- 49. / / Blockchain in Insurance
- 50. / / Get #500STRONG Questions? Want to introduce Startups to 500 FinTech? Want to invest in our FinTech Fund or partner with us? Mike Sigal [email protected] Join the 500 Fintech Community and get our updates http://bit.ly/2c3Q9s6