Presentation given by Tom Allason (eCourier + Shutl) to Minibar / UKTI Online Business Essentials Clinic on 21st June '12 at Young Foundation. Apologies in advance but a lot of the content was spoken rather than written.

1. A tale of two(ish) start-ups
Lessons Learned: What (not) to do
21.06.12
Tom Allason

2. Who am i?
- Bermudian/Swiss/Brit- 31 yrs old
- School in UK ‘88-’98 (GCSES+ A Levels)
- University USA ‘98-’02 (Sociology)
- Became an “entrepreneur” at university
- Moved to London in ’02
- Founded eCourier.co.uk in ’03, launched in ‘04
- Grew to £7.5m turnover & team of 250+ by ’08
- Raised £8m investment from Angels + VCS
- #6 Deloitte Fast 50- 5921% growth ’04-’09
- Left eCourier in ’08 to found Shutl, launched ’09, live ’10

31. Opportunity
• Service industry where customer was not king
• Highly fragmented market suffering scale diseconomy
• Service/scale issues result of inefficient human supply chain
• Tech platform to Intelligently automate supply chain
– Provide faster, more reliable value-added service
– Reduce overhead cost & increase margins
– Cut prices to increase share in commoditised market
Become the point to point courier market

32. Cheap
Book online
• Simple to use (90% adoption!)
• Quicker than phone
• Reduce telephonists

33. Transparent
Track online
• Booker & recipient tracking
• Real-time ETA/ETD for SD
• Reduce followup calls & OpEx

34. Secure
Email confirmation
• Signature sent by email
• Absolute peace of mind!
• Reduce followup calls & OpEx

35. eCourier: Development
2003 (Idea)
• Conceived idea & began determining opportunity
• Gathered founding team: initially 3 co-founders
• Put together business plan + model
2004-5 (Seed)
• £1m raised: angel investment
• Commence development
• Business operational: office, staff, marketing etc
2005-6 (Startup)
• £2m raised: VC- Series A
• Continued development
• Fund growth & working capital
2006-8 (Growth)
• £5m from: VC - Series B
• Build out team: management, sales
• Working capital to break-even

36. eCourier: Development
2003 (Idea)
• Conceived idea & began determining opportunity
• Gathered founding team: initially 3 co-founders
• Put together business plan + model
2004-5 (Seed)
• £1m raised: angel investment
• Commence development
• Business operational: office, staff, marketing etc
2005-6 (Startup)
• £2m raised: VC- Series A
• Continued development
• Fund growth & working capital
2006-8 (Growth)
• £5m from: VC - Series B
• Build out team: management, sales
• Working capital to break-even

37. By 2008 I was ready to move on
Market
• Same-day courier market declining in volume & value
• Historically low barrier to entry -> highly competitive
• Problem not ‘big enough’ to guarantee solution wins client
Business
• In spite of technology still needed (lots of) people!
• Moving parts makes scaling a challenge (and local)
• -IVE cash-flow means growth increases capital requirement
Personal
• Significant investment diluted team stake 50% -> 5%
• Role: entrepreneur -> manager of 250+ person business

39. What’s
the story?

40. 11.08.94

41. E-Commerce has come a long way

42. Delivery has not...

43. £1bn
Cost to UK e-retail
of failed deliveries
Source: IMRG 2010

44. 2/3
Cart abandoners cite
delivery as reason
Source: Royal Mail 2010

45. 19%
UK population not shopping online
due to inconvenient delivery options
Source: Verdict 2011

46. 90% Online shoppers
cite delivery as
top annoyance
Source: Royal Mail 2010

47. £177.11
Lost time and wages waiting for
delivery per person, per annum
Source: TOA 2011

48. 57%
Comments made by shoppers
about delivery are negative
Ubervu ’11

49. Delivery
matters

52. Hub & Spoke
A A B B
10+ miles
Hub and spoke is so prevalent because it is the
only cost effective way of delivering 10+ miles

53. Point to Point
A B
<10 miles
Point-to-point can be cost effective over short distances,
sometimes even cheaper than hub-and-spoke

54. Hub & Spoke
97% Courier, Express & Parcel Market

55. Point to Point
+2,987 more!
3% Courier, Express & Parcel Market

56. Point to Point

57. ‘Paypal for awesome delivery’
Shutl is a branded option offered by retailer within checkout
alongside existing fulfilment methods

58. ‘Paypal for awesome delivery’
Shutl takes data from retailer into API, return price & promise
for world’s fastest most convenient delivery service

59. ‘Paypal for awesome delivery’
Available 24/7 & can be offered for same price standard delivery

60. Shutl generates a
quote from each
relevant carrier ££££ £££
within platform
Optimum picked ££
based on price & £££
quality rating
£££
££££

61. On checkout, delivery sent
via API into chosen carrier’s
transportation system
£££
Courier collects from
store and delivers
to shopper
SHOP

62. GPS tracking comes standard
Shutl takes GPS location from courier platform via API in real-
time and serves up onto tracking page

63. Delivery status
updated in real-time,
performance compared
against SLA & carrier
quality rating updated
Better performing
carriers get more
deliveries & can
demand higher prices

64. Feedback
Shutl sends feedback email to consumer seconds after they have
received delivery asking to rate qualitative aspects of experience

65. Feedback
Answers to ‘how can we improve’ Q stream unedited to @shutlfeed

66. Feedback
And also to shutl.co.uk/feedback where we can comment

67. Feedback
Quality of service most important since we are motivated by LTV
of shopper. Transparency builds trust and engagement.

69. Newest Customer Journey

70. Newest Customer Journey

71. Newest Customer Journey

72. Newest Customer Journey

73. Why offer Shutl?
Leverage stores to:
Attract
+ Convert
+ Up-sell
=
3x increase to 10+%+ conversion 50+%+ increase to
new customers improvement basket value
It’s not rocket science...

74. Coverage Live
% UK
Towns
ECOM £
Aberdeen Basildon Basingstoke Bath Belfast
Birmingham Bournemouth Bristol Cambridge
Cardiff Chelmsford Cheltenham Derby Dudley
Edinburgh Exeter Gateshead Glasgow Gloucester
Gillingham Guildford Harrogate Hull Ilford
Lakeside Leeds Leicester Liverpool Livingstone
London Maidstone Milton Keynes Manchester
Newcastle Norwich Northampton Nottingham
70%
Oxford Portsmouth Plymouth Reading
Rotherham Sheffield Slough Southampton
Southend Stirling Sunderland Swindon
Warrington Wigan Wolverhampton York

75. Coverage Jun
% UK
Towns
ECOM £
Aberdeen Basildon Basingstoke Bath Belfast
Birmingham Bournemouth Bristol Cambridge
Cardiff Chelmsford Cheltenham Derby Dudley
Edinburgh Exeter Gateshead Glasgow Gloucester
Gillingham Guildford Harrogate Hull Ilford
Lakeside Leeds Leicester Liverpool Livingstone
London Maidstone Milton Keynes Manchester
Newcastle Norwich Northampton Nottingham
70%
Oxford Portsmouth Plymouth Reading
Rotherham Sheffield Slough Southampton
Southend Stirling Sunderland Swindon
Warrington Wigan Wolverhampton York
75%
Blackpool Bolton Brighton Canterbury Chester
Colchester Crawley Dundee Ipswich Lincoln
Peterborough Preston Shrewsbury Swansea

76. 5%

77. Coming Soon(ish)
5%

78. Market
Size £0.5bn £50+bn
Growth -5% 20+%
Problem solved Small Large
Competition Lots None
Largest Client <£1m >£20m
Business
Team 50+250 18
Cash-flow -ive +ive
Capital Req:
£10m £3m
Team
>10% <55%
Shareholding:

80. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Raising Investment = Risk vs Reward
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
How big is opportunity and what are chances of seizing it?
Please note:
@ 70%
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Opportunity (Reward):
- Problem: What is need for product / service?
- Market: How big is problem: size, growth, accessibility, competition?
- Economics: Will consumers pay enough for you to profit?
Execution (Risk):
- Team /SP: Credibility of plan (Co-founders, NEDs, Advisors, Investors)
- Product: Does your solution to problem do what it says?
- Capital: Will your fuel cover the trip? Cost/structure, Cash-flow etc
Valuation increases the more opportunity is proven and execution risk disproved

81. Shutl Capital Raising History
National
Roll-out
Q4 ’11
Pilot live
Q3 ‘10
Pilot
Client Complete
Interest Q3 ‘10
Q2 ‘09
Research
Started Client
Q2 ‘08 Commit
Q3 ‘09
Dev
Commenced
Q1 ‘09
Founder Team Seed Follow On Strategic 1 Strategic 2
CAP £50k £50k £500k £400k £650k £1.3m
Team 100% 100% 80% 70% 65% 60%

82. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Equity
Shutl Black:
Pantone BLACK
C0 M0 Y0 K0100
Shutl Accent Grey:
Pantone BLACK
C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
- As long as your business/idea is going in the right direction, the
capital you raise now should be the most expensive you will ever
raise, so... think small
- Raise the minimum you need to take business/idea as far as possible

83. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
Friends & Family
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Quantum: £100-£100k
Stage: Fag packet - any
Their motivation: You... making you happy + not falling out
Your motivation: Making them proud/happy, Not falling out
Terms: Ordinary shares, possibly EIS, same price as you

84. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
Angels
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Quantum: £10k-£500k
Stage: Fag packet / Business Plan / Proof of Concept
Their Motivation: Them, making return and use of expertise
Your Motivation: Getting cash & expertise
Terms: EIS semi ordinary shares, Investment Agreement + Articles with
investor protection: liquidation, specified management rights, board seat
Find them: Angel.li, Crunchbase, Duedil

85. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
red on white red on lighter tones Venture Capital Firm
R208 G31 B40
HEX D01F28
R208 G31 B40
HEX D01F28
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Quantum: £1-10m
Stage: Business model proven(ish) & needs scaling
Their motivation: Them & their LPs for 5 yrs, making return,
protecting up/down side, looking good for next fundraising
Your motivation: Taking money, getting out
Terms: Strict Preferences

86. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
Seed Funds
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Quantum: £50k-£500k
Stage: Any
Their motivation: Getting in cheap
Your motivation: Taking money, getting out
Terms: Mild-Strict Preferences

87. Shutl Main Red: Shutl Accent Red:
Corporate / Strategic
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Investor
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Quantum: £100k+
Stage: Any
Their motivation: Who knows? Figure it out!
Your motivation: Taking money, getting out, no limits
Terms: Strict Preferences ie ROFR often restricting exit

88. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Shutl Black:
Debt
Pantone BLACK
C0 M0 Y0 K0100
Shutl Accent Grey:
Pantone BLACK
C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
- Something you can get only when you don’t need it

89. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Shutl Black: Shutl Accent Grey:
Pantone BLACK Pantone BLACK
C0 M0 Y0 K0100 C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
Quantum: £100k - £1m
Motivation: Avoiding any risk, Hitting Gov lending targets
Terms: Serviceability, Security, Profitability, History

90. Shutl Main Red: Shutl Accent Red:
Pantone 485 C Pantone 484 C
C0 M100 Y99 K4 C0 M100 Y99 K4
R208 G31 B40 R208 G31 B40
red on white HEX D01F28 HEX D01F28
red on lighter tones
Resources
Shutl Black:
Pantone BLACK
C0 M0 Y0 K0100
Shutl Accent Grey:
Pantone BLACK
C0 M0 Y0 K70
@ 70%
Please note:
Black on white Reverse (white) on darker tones The black logo should never
appear on in any ‘dark’ colour
background.
5 Branding Guidelines
- Venture Blogs:
- Mark Suster: Both sides of the table:
- Chris Dixon
- Nick Brisbourne: Equity Kicker
- Incubators:
- UK: Seedcamp, Springboard, Difference Engine
- USA: Y Combinator, TechStars
- Research:
- Angel.li
- CrunchBase

91. Any questions?
Tom Allason
Founder/CEO
tom@shutl.co.uk shutl.co.uk
@tomall @shutl