Investor Questions Flashcards

Question

Interesting talking points

Answer 1

Billionaire founder of Rackspace invested EasyJet founder tried to invest, we turned him down We’ve had 3 acquisition chats - SWVL - Turkish - Busbud

Answer 2

Round 1 - L (lead), 2 - S (soft commits >50%), 3 - F (fomo close)

Answer 3

- we assist in deploying and managing anti-fraud strategies in their company (this isn’t always deployed immediately) - we assist in office management and deployment of POS machines and print based ticketing systems

Answer 4

*Use this $3m to get to >$30m annualised GMV - then raise on a 5-6x multiple from where we are today and aim for a half billion valuation within 2 rounds from there - Drivers: largely cash advance whilst consumer facing ticks along and we grow to dominate the market from an inventory standpoint - 1 - today and for the next 2 years we are primarily a distribution specialist whose primary product i X (helps us enter the market). Stripe had its checkout box product first then many other products came later)

Answer 5

They made an exception in 2019 for QuickBus because they really liked us and invested out of their first fund Shorooq is now restricted to to GCC region, Furthermore, fund 1 who invested in us is depleted, Fund 2 cannot invest in fund 1, as fund 2 has different LPs - OTF is still raising a FUND and our other VCs specialize in Seed, but some are considering doing more Series A. OTF also already have a significant shareholders due to the size of their investment. All of our investors are seed round focused investors. Some of them are looking to raise funds to join this round but the ticket size might be a step too far for them

Answer 6

- CRE 100M net revenue eventually -AA as method of market entry. We get a larger part of the way there with Nigeria alone, this market is huge

Answer 7

Other ideas - NOTION BLOCK WITH LEADS - https://www.notion.so/Pitching-and-Leads-Checklist-0e09ac855aa64e498733ed40593f23d7#f406ed3917e04b07a6e1b352ca1221e6 Amazing finding leads resource - do 50 before outsourcing https://twitter.com/jspeiser/status/1529840284271620099?t=DZZxasymr7L2gRv0y9g5sQ&s=19

Answer 8

💡 $3 million via equity - 1m accelerated acquisition - 1 sales and marketing - 1 salaried and opex - Accelerate Acquisition Growth: $1.2m - Salaries: ~$600k - Sales and Marketing: ~$900k - Opex: ~$350k

Answer 9

Analogy “Imagine if Uber sellers stood near taxi ranks and booked customers on uber instead and demonstrated the product, this is what we are doing as a low cost targeted acquisitions strategy. UBER LITERALLY DO THIS IN INDIA at airport arrivals just outside the exit (I have seen it many times). They have a person standing out… [02:03, 02/03/2022] Humphrey: On the cash flow I hear you. - How do we grow in such a time and cost efficient way - We identify key physical locations with high bus traveller footfall. - Our customers success agents then assist clients in physically interacting with our system - CSAs are in many ways influencers - a number of Nigerian VCs we have spoken to love this approach as it gives us access to the largely unbanked offline customer population no one has been able to access at scale - You used to call up to book a plane ticket or buy a stock, a broker assisted you and took a commission, we are using Manuel elements of these methods to dominate this BTL - below the line market - we are adapting methods specific to the nigerian market that will allow us to scale rapidly over the next 24 months - BACK UP IF ASKED ON HOW MUCH CUSTOMER USES OUR SYSTEM - my dad used the internet in a certain way and essentail was onboard to the internet by amazon books, ae are using sales agents to sell to customers, and then prompting and shifting those customers to processing their own booking next time via whatspap and SMS. - Over time customers will through discounting for carrying out their own booking process will move from having the booking processed for them, to processing the entire booking themselve and accessing finance and lending products, the same way my dad started using the internet for exclusvietly buying books, and has now become able to use it for almost anything

Answer 10

There are companies doing a similar thigs to us but most of them do multiple businesses, Buupass does flights and trains, Voltic does B2B as a core business, and Plentywaka focuses on short distance trips. We are lazer focused on the long distance space due to the simplicity when it comes to scaling and the positive economics. We are operational in SA and Nigeria none of them are THey also don't grow nearly as profitably as we don, we employe our capital in a much more efficient way

Answer 11

- We sign annual exclusivity contracts with many of our bus partners - We target online and offline markets that other aggregators find difficult and or expensive to access

Answer 12

Short to medium Term - >30M Annual GMV - Focus on Nigeria and choice EM markets Medium to Long Term - >$500m annual GMV - Expansion into LATAM & SEA markets

Answer 13

- We focus on being distribution partners offering a multi-layered service to bus operators. - QuickBus: - Installs anti-fraud technology in their offices, - provide point-of-sale card machines, - and assists in the management of their offices. - These services enable us to rapidly onboard operators to which we have exclusive access. - The above services enable QuickBus to bring bus partners into one mobile-friendly website and WhatsApp booking platform allowing travellers to compare ticket prices and customer ratings of specific bus companies.

Answer 14

Day 0 Day 1 Day 7 Day 16 Day 35 Written out 7 times once 5 x = 35 times across 5 different occasions

Answer 15

### We can GROW FAST without burning capital - An aggregator must onboard enough supply to provide customers with a wide range of options. Our USP is the experience of our team in building businesses in Nigeria and our ability to onboard operators fast. - Olu Akinsola was head of marketing at SafeBoda in Nigeria, growing them from zero to >100,000 customers with a minimal marketing budget. Our director of supply grew a bus aggregator from zero to acquisition in under three years in Nigerian marketing. - Our dynamic managerial team enabled us to reduce our spending in 2020/21 during covid growing our runway by 50% whilst simultaneously growing the value of tickets processed by our B2B systems 10x.

Answer 16

Four trips a week multiplied by 52 weeks a year and $20 per ticket means these customers are worth $4,160 to a bus company each year. This high frequency of travel would equal more than $400 in commissions annually to QuickBus at a 10% rate, and our rate currently is 20% with many companies. People travel by bus for several different reasons: - Many are self-employed traders. - Many are students returning or from school. - Corporate business trips, personal business trips and personal reasons are generally more than 50% of the customer base. - On specific routes, nearly 4 of 5 people travel monthly or more.

Answer 17

We are the only one getting - 10 to 1 returns on our marketing campaigns - Operational and growing fast in both of Africa's top two economies - have intergrations with major channel partners in all 3 regions in africa

Answer 18

We are the only one getting - 10 to 1 returns on our marketing campaigns - Operational and growing fast in both of Africa's top two economies - have intergrations with major channel partners in all 3 regions in africa

Answer 19

Products for the future, hotel booking for travellers, flights, and BNPL fintech products allowing for borrowing and delayed payment, but we are focused on our core business today the above will be built around

Answer 20

Marketin - Our customer acquisition team is lead by the same lead who took Safe Boda from zero to 100k clients, and a number of the team came with him from Safe Boda. Supply - Our Supply team is lead by the the previous head of supply for a Nigerian bus aggregator that was acquired in under 3 years. CTO - Our British CTO has scaled Tech companies in regions where limited internet access and back end development team are working out of India where they have studied the RedBus business for the past 3 years.

Answer 21

Marketin - Our customer acquisition team is lead by the same lead who took Safe Boda from zero to 100k clients, and a number of the team came with him from Safe Boda. Supply - Our Supply team is lead by the the previous head of supply for a Nigerian bus aggregator that was acquired in under 3 years. CTO - Our British CTO has scaled Tech companies in regions where limited internet access and back end development team are working out of India where they have studied the RedBus business for the past 3 years.

Answer 22

1. As SHORT as possible, answer the question - shows confidence that we are free from over-explaining 2. Ideally put a good question to them? - Is this interesting to Novastart - Do you see many companies like this?

Answer 23

The idea maze if you do X Y happens to deal with Y you do this

Answer 24

1 - get AIDA sheet up on phone, and have call plan for same to screen share for them for people investing 2 - watch pitch checklist 10 minute video it's in reminders and on google drive https://drive.google.com/file/d/15yxjQAaXQsIEKrDGLYufQlApGUkMbI4C/view?usp=sharing

Answer 25

We’ve already had acquisition approaches from a Canadian and Egyptian Unicorns. We’re not interested in selling this business until its valuation is well into the nine figures. We in the relatively fortunate position of having seen the value of similar companies and what they need to do to achieve them, it is well within our potential to hit the valuations that redbus and potentially Skyscanner achieved.“

Answer 26

My convictions just need to outweigh any of theirs

Answer 27

On discovery call, don’t show pitch deck - just say, can we take you through a few slides - orgnore most of them just focus on the product and maybe traction slides if it’s good

Answer 28

Say, we perfected the product in africa because it’s low cost to execute and a ripe market, But, we always intended to go to X (insert whatever region the investor is from)

Answer 29

Pitch 20 VCs, pitching angels isn’t the same

Answer 30

41 SA 46 nigeria 9 accelerated acquisition

Answer 31

We don’t track KPIs on monthly, we focus on quarterly due to seasonality

Answer 32

We are aiming to have terms finalised before Christmas

Investor Questions Flashcards

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