nwen startup ideas and business models
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Northwest Entrepreneur Network event. 10/1/13. Business models and Big IdeasTRANSCRIPT
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Ideas & Business Models Dave Parker
@DaveParkerSEA
www.dkparker.com
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Agenda
About Dave
Big Ideas/Big Markets
Business Models
Q&A
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About Dave
VP Programs at UP Global (Startup Weekend + Startup America)
Serial Entrepreneur
EIR at Mitsui Venture Capital
Board member for four mid-market, handful of startups and advisory board for over 50 startup companies + NWEN
Husband, Dad
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Big Idea/Big Markets
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Markets
Who Buys from You?
Business to Business
Business to Consumer
Established vs. Immature
What is a Market?
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Am
ount
Inve
sted
($B
) N
umber of D
eals Investment Falls in 2012
Deal Flow and Equity into Venture-Backed Companies
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Industry Allocations Steady in 4Q’ 12 Deal Flow Allocation by Selected Groups
% D
eal F
low
Allo
cati
on
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Software Loses Pace in 4Q’ 12 IT Investment Allocation by Sector
% o
f D
olla
rs In
vest
ed
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Big Markets?
Is the Market in Billions?
Specific Opportunity for VC >$100M
If you own the market how big would your be
Market Leader vs. First Mover
Known or unknown
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Big Ideas?
Changes the world
Simple
“Aha” idea
Transformational
Changes a market
Complex
Feature or tool
Incremental
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Big Problems
Pain Pill? Have to have it
Vitamin? Nice to have
Who wins if you win?
Do they “win big” or “save a little”?
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It’s takes as long to build a small idea as big idea
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Contrast
Passion!
Ideas!
Product
Doesn’t make it a great business
Execution
Company
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Business Models
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Your Idea (may) be unique. Your business model is not
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B2B Sales Models
Direct – internal sales people (Inside or Outside), # of deals/Month, salary + commissions
Distribution/Channel Sales – Indirect or external, <# of deals/Month, no Salary, just commission <Mindshare. Fulfill demand, don’t create demand
White Label Sales/Licensing – infrastructure or license sales, long sales cycle, few but targeted customers
Web Direct – Advertising and conversion based sales, sales support?, requires customers to search
Retail – N/A
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6 7 “Scalable” B2B Business Models
1. Commerce – Physical Goods- Wholesale, cost of goods, retail, average margin, physical good
2. Subscription – Dropbox – cost of customer acquisition, lifetime value and churn
3. Lead Generation – AllStarDirectories – traffic, form data, price per lead,
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6 7 Scalable B2B Models, Cont.
4. Market Place – Alibaba – average transaction, commission on transaction But start with one side
5. Transaction Fees – Flattr, KickStarter – average transaction fee, commission
6. Combinations – Multisided markets – hardware sensors, software services with data analytics
7. Non-profit -
Scalable doesn’t include services – Others?
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13 B2CModels
TechCrunch Teardown: 13 Consumer Internet Business Models (Part I) « The World According To Carp http://fndri.com/jEvuYa - Steven Carpenter Media
Paid Service
Physical Commerce
Kfactor businesses don’t need a model
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Your examples
What model will you use? How will you model it?
Example
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Q&A
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Founder Institute www.fi.co/apply/159
15 Week Early Stage Accelerator Program
Monday nights beginning in November – including dinner
Graduation in March
$995
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[email protected] www.foresttreesbark.com/blog @DaveParkerSEA