yi boot camp: defining your market
TRANSCRIPT
YODLEE INTERACTIVE INCUBATORDATE 11/19/2014
DEFINING THE MARKETMARC WEILL, TWO SIGMA PRIVATE INVESTMENTS
ABOUT TWO SIGMA VENTURES
THE OPPORTUNITY IS RIPE
Fintech is a Hot Market…
Growing quickly around the globe…
Emergence of Finsurgents disrupting banks
WHY IS THIS HAPPENING?
Core Factor: Huge MarketsBanking: $14.45 trillion in assets in the US (2012)
Asset Management:
$18.9 trillion in total US pension assets (2012)
$20.7 trillion in total US insurance and mutual funds assets (2012)
$48.4 trillion in non-US financial assets (2012)
Insurance: $1.1 trillion in net premiums written in the US, $481 billion in P&C, $560 billion in Health & Life (2012)
Key Causes: Slow Incumbents
Key Causes: RegulationDodd-Frank
Key Causes: RegulationBASEL III
Key Causes: RegulationCFPB
Key Causes: Technology
Big Data
Mobile
Cloud
Cryptocurrencies
Key Causes: TechnologyBig Data
Key Causes: TechnologyMobile
Key Causes: TechnologyCloud
Key Causes: TechnologyCryptocurrency
Key Causes: DemographicsUnderbanked
Key Causes: DemographicsUnderbanked
Key Causes: DemographicsMillenials: Largest Generation in US History
Key Causes: DemographicsAging Populations
Global Population of People over 60 years old
MY EXPERIENCE
LESSONS FOR MARKET DEFINITION
Rule #1: Addressability
• Who can be acquired at a reasonable cost?
• Who has the ability and willingness to pay?
• Who is not adequately served by exis:ng products in market?
Key: Iden)fy a market you can serve profitably
Rule #2: Remain Flexible
• Be open to learn from exis:ng and poten:al customers
• Watch for customer needs evolving and changing
• Keep up with the universe of alterna:ve products
Key: Apply a process of trial an error, and constantly evaluate experimenta)on in order to refine your market strategy in response
Rule #3: Be Comfortable Saying No
• You cannot be every thing to every body
• Ruthlessly priori:ze your product roadmap for features and use cases that can port across customers
• Say no to highly custom projects that distract you from your mission
• Watch out for customers giving you product and posi:oning recommenda:ons
Key: Your customers may ask for faster horses. Your job is to build the automobile
Rule #4: Remain Grounded
Serve your market aggressively and confidently
Beware hubris and complacency
Key: Someone else will serve your market if you do not
