synthicity final 2013 berkeley

Visualization and analysis tools for urban planning professionals

Market Size: $20 Mil

Data and insights to anticipate urban futures

Market Size: $100 Mil

Synthicity Team Members

Ian CarltonPhD candidate, DCRP

Manager of Real Estate Applications, Synthicity

Gabe CohenHaas School of Business

Erin Koehler Haas School of Business

Nikki LowyHaas School of Business

Advi

sors

Fletcher FotiManager of Transportation

Applications

LLP

Team

Carlos VanegasCTO & Director of Research

Rob MatthewsDirector of Product

Development

Paul Waddell CEO

Our first Business Canvas Model: Serve an ecosystem

US DOT

US EPA

Customer ecosystem for major urban development

Local & Minority

BizSustainabilityAdvocates

Chamber ofCommerce

NeighborhoodGroups

US HUD

US TreasuryPrivate Real

Estate Developer

Transitagencies

Schools

Housing Orgs

Consultants+Contractors

PublicWorks

RedevelopmentAuthority

City DOT

Housing

CouncilOffices

City Planning

EconomicDevelopment

Police& Fire

Social JusticeGroups

Lenders EquityInvestors

CountyDOT

MetroPlanning

Orgs

MetroCOGS

OrganizedLabor

StateDOT

PlanningFirms

EngineeringFirms

Could Synthicity pivot from consulting to software…

Location Selection

Real Estate Development

Basic infra. Investment

Land Use Planning

Economic Development

Project design & delivery

Transport project plans

Regional priorities

Long range planning

Today’s offering

Could Synthicity pivot from consulting to software… software serving more segments of the value chain?

Location Selection

Real Estate Development

Basic infra. Investment

Land Use Planning

Economic Development

Project design & delivery

Transport project plans

Regional priorities

Long range planning

Today’s offering

Enterprise software customers were likely to be the smaller set of service firms, not end users

Location Selection

Real Estate Development

Basic infra. Investment

Land Use Planning

Economic Development

Project design & delivery

Transport project plans

Regional priorities

Long range planning

CBRE™

Narrowed our customer segments, sized market, realized this was a $20M business…

“That’s cool, but it would be great if you do this…”

Real estate service providers told us:

Would love predictions about the future

Want multiple data sources at fingertips

Have low willingness to pay relative to our cost to provide such data & analysis

So, we pivoted…

Wanted a $100M business opportunity

Spoke with John Hanke at Google Earth: Manage multiple verticals or one horizontal?

Interviewed potential horizontal customer segments

New customer segments:• Home buyers• Home owners• Small business owners• Neighborhood activists

Potential channel partners:• Realtors & brokers

Clear pain/gain/emotional need:

Want 5-year predictions

Channel transition from SaaS platform to web brand

www.MyUrbanFuture.com

Decision makers: Home buyersHome ownersNeighborhood activists Business owners

RealtorsConsumer Website

Understanding of Urban Futures

Web Development

Freemium: limited free queries, sell enhanced data

We shifted our focus to a web product for consumers

Digging deeper: we verified that there is a need, but not for the exact product we offered

What we did:

• Tested MVP website, report

• Directed web traffic using Google Ads

What we found:

• Customers did NOT buy the MVP report

Who we contacted:

• Home buyers, homeowners, N’hood activists, realtors

• Small biz owners, brokers

What we found:

• Want hyper-local data presented in easily digestible form

• Care about development projects and n’hood trends

MVP Interviews

Google AdWords campaign failed to convert users to payers, but there was a silver lining

Engaging maps kept visitors on site ~two minutes

Realtors were REALLY excited about our offering

Original customer segment - real estate investors – also need the data collected for MVP report

We believe there is an opportunity to build a $100M business…

$24M1% x 36 mil urban homeowners x $60 =

$25M5% x 4 mil urban homebuyers x $125 =

$23M1% x 7 mil urban small/ x $250/ = mid-sized businesses

$500

Capture Rate Customer Segment Annual Value Annual Revenue

5% x 25k real estate x $10k/ = investment firms $500k

$30M

$102M

Invest in building our own brand

‘White label’ to existing brands

A trusted brand is critical to convert engagement to sales

We can develop a brand in several ways:

Build: Borrow:1 2

A white label strategy could be pursued

Home Buyers

Home Owners

Commercial Lessors

Urban Futures

Flow of Money

Flow of Services

Real Estate Investors

Data &Insights

License Fees & Revenue Share Fees

Fees

Reports

Updates

Business Owners

Fees

Fees

Reports

Updates

FeesAdvisory

CBRE™

Synthicity

Alternatively, building a brand would require a spinout from Synthicity

Home Buyers

Home Owners

Commercial Lessors

Urban Futures- Brand- Execution

Flow of Money

Flow of Services

Real Estate Investors

Fees

Reports/ Data

Business Owners

Synthicity- Predictions- Relationships

Next Steps

Can we build the right team?• Do we have a committed leadership team for Urban Futures?

1 Can we prove the business model?• Further development and testing of MVP

2

Current Business Model Canvas

Appendix

MPV

• http://www.myurbanfuture.com • http://map.myurbanfuture.com

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10