Defining Value & Building Business Models
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T2VC is an organization that provides venture capital funding and expertise to startups globally in order to help them connect to markets and build successful business models. They see over 1,000 opportunities per year through their large network of universities, research institutes, and strategic partners. Rather than just providing funding, T2VC also offers startups contacts, insights, and expertise based on 30 years of experience connecting entrepreneurs, innovators, and governments worldwide. The goal is to use capital as a lever to grow innovation economies and help startups expand globally.
Defining Value & Building Business Models
- 1. Connecting to Global Markets: Defining Value & Building Business Models PROPRIETARY AND COPYRIGHT 2011 Victor W. Hwang | 310.663.0324 | victor@t2vc.com
- 2. A great paradox Breakthrough ideas & entrepreneurial zeal are everywhere…
- 3. However ... … The venture ecosystems to grow “killer” companies are historically limited.
- 4. WHY?
- 5. Strategic Intellectual Property Management Venture Capital Legal The Classical Startup: Sand Hill Road
- 7. CASE STUDY: T2VC’S IMPACT ON ONE STARTUP Expertise Expertise Expertise Technology Expertise, Capital, Advisor Partners Partner Marketing Expertise Advisor Advisor Capital Customers
- 8. Larta Institute $1B/year 400 startups USAID World Bank CONNECT T2VC State Dept. $40M/year Policy: Singapore, Chile, Australia We sit in the middle of a vast global web of over $4B per year in innovation investment. We grab opportunities, open markets, and make connections to grow companies.
- 9. T2VC is venture capital for global innovation. We use capital as a lever to grow innovation economies. We see over 1,000 opportunities a year from our network of 100+ universities, research institutes, and strategic players. We help our startups with contacts, insights, and expertise based on 30 years connecting global entrepreneurs, innovators, and governments. 9
- 10. What We Won’t Cover Business Plans
- 11. It Starts With the Vision Envisioning a future state… • What is the objective? • Where is the pain? • What are the current solutions? • What makes you special? • Where are you heading? • Why YOU? – What drove you to this? – What is the “passion play”?
- 12. Value Proposition: The Heart & Soul • What is the “Market Pain”? • How does your product address the Market Pain? • What is different about your product? • Why would a customer buy from you?
- 13. Do you Really Have a Value Proposition? • Make an honest assessment. • Do you really have a product, or is it just a invention? • What is your true value to the consumer, end-user or patient? • Are you solving a real problem? Are you addressing a real need?
- 14. Do you Really Have a Value Proposition? • Do you have something that people will actually pay for and continue to use? (will the dogs eat the dog food?) • Can it be made at a price that the market can absorb? • Can it be made at a cost that allows for profits? • Is the ADDRESSABLE market large enough to be viable?
- 15. Business Model • What is your strategy? • How will you make money? • Who are your customers and why will they pay for your product? • Make a credible presentation of your addressable market • Revenue, cash flow, profitability • How do you plan to grow your company?
- 16. What Is a Business Model? • Diagram of flows between company and customers • Scorecard of hypotheses testing • Rapid change with each iteration and pivot • Founder-driven
- 17. 9 building blocks of a business model Thanks to Business Model Generation (Alexander Osterwalder) andSteve Blank
- 18. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?
- 19. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
- 20. CHANNELS how does each customer segment want to be reached? through which interaction points?
- 21. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
- 22. REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues?
- 23. KEY RESOURCES which resources underpin your business model? which assets are essential?
- 24. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 24
- 25. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?
- 26. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?
- 27. key value customer activities proposition relationships key customer partners segments cost revenue structure key streams resources channels 27 images by JAM
- 28. sketch out your business model
- 30. 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess