Superloop Pitch Raised $35.3M

Introduction and Strategic Context

The Superloop Investor Presentation, dated 17 June 2016, is a focused document titled "Funding Strategic Expansion in Asia." Unlike a typical early-stage startup deck, this is a corporate finance document for a publicly listed entity (Superloop Limited) conducting a significant capital raise. The deck is structured to provide a status update on existing infrastructure before detailing the specific use of proceeds for new projects. The visual style is minimalist, using a consistent red and white palette that aligns with the company's branding.

Slide 1: Title Slide

The cover slide establishes the company identity with the Superloop logo and the clear objective: "Funding Strategic Expansion in Asia." The date, 17 June 2016, provides the necessary temporal context for the financial data and projections that follow. It sets a professional, corporate tone suitable for institutional investors.

Slides 2-3: Section Dividers

Slide 2 introduces "01 Market Trends," and Slide 3 introduces "02 Network Update." These slides use a red-tinted photographic background of a dense Asian cityscape, reinforcing the geographic focus of the expansion strategy. While these slides contain no data, they serve as structural anchors for the 36-slide presentation.

Slide 14: International Network Overview

This slide provides a geographic map of Superloop's physical assets as of June 2016. It distinguishes between "Metro Fibre" (red dots), "Existing Capacity" (solid black lines), and "Future Capacity" (dotted red lines). The map shows a presence in major Australian hubs (Brisbane, Sydney, Melbourne, Adelaide, Perth) and key Asian markets (Singapore, Hong Kong). It also notes connectivity to Los Angeles. The text highlights the ability to deliver "end to end connectivity solutions" for wholesale and enterprise customers, emphasizing the cross-border nature of their infrastructure.

Slide 17: The Power of Infrastructure (Unit Economics)

This is a critical slide for demonstrating the financial viability of the business model. It focuses on the Singapore Network, showing a bar chart where "Annualised Contracted Revenue" (dark grey) is compared against "Annualised Network Costs" (red) across three quarters (FY16-Q1 to FY16-Q3). The visual shows that while costs are relatively flat or increasing slowly, revenue is climbing sharply. The headline metric is a 5.9x increase in "gross profit" for incremental "on-net" dark fibre . This slide argues that the business has high operating leverage: once the expensive fibre is in the ground, every new customer added has very low marginal cost, leading to significant margin expansion.

Slide 20: Expanded Product Set

Superloop details its path to increasing "Share of Wallet" by moving up the value chain. The slide lists four products:

Dark Fibre: Dedicated fibre-optic connections without transmission equipment. · Ethernet Backhaul: A layer 2 point-to-point service, live in Singapore, with capacity between 1Gbit/s and 10Gbit/s. · Wavelength: Dedicated circuits using DWDM technology, live in Singapore, offering 10GBits/s to 100GBits/s. · Ethernet Access: A managed WAN connectivity solution slated for Q3 2016.

This progression shows that Superloop is not just a "dumb pipe" provider but is actively building a suite of managed services to capture more revenue from its existing physical network.

Slide 25: Proposed TKO Express

This slide focuses on a specific high-value project in Hong Kong. The TKO Express is described as a 3.0km domestic submarine cable connecting the Chai Wan data centre campus to the Tseung Kwan O (TKO) Industrial Estate. The slide includes a map comparing the proposed 3.0km submarine route to existing land-based "Alternate Paths" of 29.0km and 69.0km. The value proposition is clear: "physical diversity and a new low latency path" specifically targeting "high frequency traders based on Hong Kong Island." The slide notes that formal Board approval has been received, with only one external approval remaining.

Slide 29: Capital Raising - Strategic Investment

This slide outlines the mechanics of the A$35.3 million funding round. Key terms include:

Offer Structure: A 1-for-7 accelerated pro-rata non-renounceable entitlement offer. · Offer Price: A$2.10 per new share, representing a 12.9% discount to the last closing price of A$2.41. · Volume: Approximately 16.8 million new ordinary shares to be issued. · Ownership: Founder Bevan Slattery's holding is noted as 51.05% (pre-offer), with a statement that he will not be participating in this specific entitlement offer. · Underwriting: The transaction is fully underwritten by Morgans Corporate Limited.

The slide is dense with legal and financial footnotes, typical of a public market capital raising document.

Slide 33: Indicative Timetable

The final slide in the provided sequence lists the key dates for the offer, starting with the Institutional Entitlement Offer opening on 17 June 2016 and concluding with the expected quotation of new shares under the Retail Entitlement Offer on 20 July 2016. This provides investors with a clear roadmap for the transaction's execution.

What Works Well in This Deck

The deck excels at demonstrating operating leverage . Slide 17 is the most effective slide in the presentation because it visually proves that the company's revenue is decoupling from its cost base. For an infrastructure company, this is the primary driver of valuation.

The technical specificity of the TKO Express slide (Slide 25) is also a strength. By comparing a 3km route to a 29km route, Superloop makes a compelling case for a "moat." They aren't just building more fibre; they are building a unique, high-value path that competitors cannot easily replicate, specifically targeting a high-margin customer segment (high-frequency traders).

Finally, the clarity of the Ask on Slide 29 is exemplary for a late-stage or public company. It leaves no ambiguity regarding the price, the discount, the underwriting, or the impact on major shareholders.

What Is Missing

The provided slides lack a detailed competitive landscape . While they mention alternate paths for the TKO Express, there is no broader analysis of who else is laying fibre in Singapore or Hong Kong and how Superloop's pricing or technology compares to incumbents like PCCW or Singtel.

There is also a lack of management team bios in the provided selection. While Bevan Slattery is mentioned as the Founder and Executive Chairman, the rest of the leadership team responsible for executing these complex infrastructure projects is not introduced. For a capital raise of this size, the "who" is as important as the "what."

Lastly, the deck does not provide a long-term financial forecast beyond the immediate quarterly revenue/cost bars. Investors would likely want to see a 3-5 year projection of how these new Asian investments will impact the consolidated EBITDA and cash flow of the company.

Founder Takeaways

Use physical maps to ground your strategy. If your business involves physical assets or geographic expansion, maps like those on Slide 14 and 25 are far more effective than bullet points. They show the reality of your footprint and the logic of your expansion.

Quantify your margin expansion. Founders often talk about "scalability," but Superloop proves it on Slide 17. By showing that revenue grows while costs stay relatively flat, you provide concrete evidence of a scalable business model. Use "Annualised Contracted Revenue" to smooth out lumpy payments and show the true run-rate of the business.

Solve for latency or specific pain points. The TKO Express is a perfect example of a product built for a specific, high-value need (low latency for traders). When pitching a commodity service (like internet connectivity), finding a specific niche where you have a 10x advantage (in this case, a 10x shorter path) is the key to winning over investors.

Be transparent about founder participation. Slide 29 explicitly states that the founder will not be participating in the offer. While this can sometimes be a red flag, stating it clearly and providing the context of his remaining 44.7% stake (post-offer) manages investor expectations and maintains trust through transparency.