Starting a company in Germany, From Business Plan to product and market adoption, Adtelligence - an online marketing company

1. ISSUES OF THE NEW GERMAN MITTELSTAND
KPMG /ESSEC
MANNHEIM MBA SCHOOL
Michael Altendorf
OCT 2011

2. Agenda
1. Overview ADTELLIGENCE
2. High Growth Market
3. Product & Technology
4. Business Model
5. The Art of the Start
6. Financial issues
7. Starting in Mannheim
8. Competing with Silicon Valley
9. Scaling the company
10. +/- Germany

3. ADTELLIGENCE provides Agencies,
publishers and eCommerce with leading
online marketing technology for adserving,
targeting, personalization and analytics

4. The Future is the Social Web
»Theearly phases,may still be in
its
Social Web
but it is likely to transform
the fundamental businesses
of the Internet
far more rapidly than the
incumbents anticipate.
»
(Accel Partners – The rise of the Social Web, 2009 /
Facebook investor)
Source: Computer History Museum 1979

5. ADTELLIGENCE provides Agencies,
publishers and eCommerce with leading
online marketing technology for adserving,
targeting, personalization and analytics

6. About Us
 Founded in 2008 Awards 2010 & 2011
 Located in Mannheim, Düsseldorf, London
 Team of 25+ tech- and media experts from e.g. SAP,
Google, T-Systems and IBM
 1 of 10 Facebook preferred developer consultants in
Connected to e.g.
Europe
 Only certified Facebook Advertising provider (API)
 Performance:
Manage terabytes of data
Deliver billions of impressions
Cloud based solution
Simple & efficient scalability
Highest security and redundancy

7. References
We increase your revenues and decrease your costs through automation.

8. Product Portfolio
Social Web Technology for Data driven Advertising
Highly confidential

9. Market Overview

10. The Online Advertising Market
Figures & Forecasts
Excellent outlook and high growth!

11. Competitive Landscape
Crowded but highly attractive Market

12. Competitive Landscape
Crowded but highly attractive Market
Sorry that was only
the US market!

13. Competitive Landscape
Europe

14. Product & Technology

15. Product Experiences
Publisher - Ad booking platform
Business Intelligence Social Targeting &
Personalization Engine
Social DSP+ - Ad booking for
Facebook
Sales Funnel Analytics

16. Product
How it works
1. Data is captured on a social network such as Facebook
2. Matching data with targeted audience in real time
3. Matching with the right ad
4. Marketing Intelligence to prove the result and recommend
audience optimization

17. Business Model

18. Business Models
Two options to make money:
1.) Revenue Share with Agencies
2.) We sell a SaaS license
eCommerce, Publishers & sales houses
subscribe on a monthly basis and can use our
white label platform for their clients
The ADTELLIGENCE platform combines all chains in one
platform from advertisers/agency to publishers‘ website

19. The art of start
How to start a VC funded
startup in Germany?

20. How did we start the company?
Like in every country:
 Learn from others – Events, Networking
 Talk to other founders, VCs, and Professors
 Learn in Silicon Valley and start in Europe
 Read books startup books from real entrepreneurs
 Learn from the stars - Watch youtube videos on Entrepreneurship e.g. Stanford Entrepreneurship corner
German specials
 Ask for subvention programs like Exist (funding for young entrepreneurs from university)
 Get money from the state - 9 months salary reduced to 65%+300€ based on former salary
 German Accelerator – up to 6months free offices, mentoring and support directly in Silicon Valley
Question to the audience: What do you get in France when you start a company?

21. Financials
How to get the money for
your company?

22. Where to get Money from for your first Business?
Like in every country:
 You have to now the lawyer of the billionaire to get introduced
 Go to a bank to get money? – How much do we get?  0€
 Your own money
 Family, Friends & Fools
German specials
 VC scene was very exclusive in the past
New incubators start in many cities like Y Combinator, Seedmatch and others
 We started a VC speed dating in Mannheim where entrepreneurs can speak to ~25 angels & VCs one by
one
Question to the audience: How is the private equity/ VC scene in France?

23. Localization Issues
Starting in Mannheim but why?

24. Starting in Mannheim, but why?
Like in every country:
 Good network in your home area
 Go to a bank to get money? – How much do we get?  0€
 Your own money – I was 28 there was not enough
 Family, Friends & Fools
ADTELLIGENCE specials
 Co-founder still works for SAP
 No money to move to London or US - we now have 1 person for biz dev in London
 Silicon Valley VC’s were not interested in the first 2 years, now they start calling us
Question to the audience: Is Paris the only hub where it make sense to start a company?

25. Competition
Is over 9.000 km away

26. The Social Web is coming with disruptive market force
in 3 core markets
COMPETITOR OVERVIEW - FAR AWAY BUT FAST MOVING
http://www.slideshare.net/tkawaja/presentations
Highly confidential

27. Expansion
Scaling the Company

28. From Mannheim to London and Palo Alto
 For a European expansion you need at least 5-10M
 Market moves very fast – in online advertising it is not possible to expand globally without VC
 Business in Silicon Valley is two years ahead
 London is about 1 year ahead
 If we want to get bought by Google, we need an office in Silicon Valley
 First employee in London just started
 Raised capital in April
 Probably need >5M for the next two years
 Plan is to open offices in the Valley in 2012

29. Germany
+/-

30. Starting in Germany +/-
 Good for the first year, hard for the third
 Germans want to be profitable
 US companies want to scale
 VC backed companies better go to London but much better directly to the valley
 Nobody gets VC in the valley from Europe in the beginning but later
 How to win against US companies in the long term?
 Nearly all German internet companies lost against the US competitors!
It's not enough that we win; all others must lose!“
Larry Ellison – CEO & Founder of ORACLE - paraphrasing Genghis Khan

31. Thank You!