NWEN Startup Ideas and Business Models

Copyright DKParker, LLC 2013

Ideas & Business Models Dave Parker

@DaveParkerSEA

www.dkparker.com

[email protected]


Agenda

  About Dave

  Big Ideas/Big Markets

  Business Models

  Q&A


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


Big Idea/Big Markets


Markets

 Who Buys from You?

 Business to Business

 Business to Consumer

 Established vs. Immature

  What is a Market?

Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource

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Deal Flow and Equity into Venture-Backed Companies


Industry Allocations Steady in 4Q’ 12 Deal Flow Allocation by Selected Groups

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Software Loses Pace in 4Q’ 12 IT Investment Allocation by Sector

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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


Big Ideas?

 Changes the world

 Simple

 “Aha” idea

 Transformational

 Changes a market

 Complex

 Feature or tool

 Incremental


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”?


It’s takes as long to build a small idea as big idea


Contrast

 Passion!

 Ideas!

 Product

 Doesn’t make it a great business

 Execution

  Company


Business Models


Your Idea (may) be unique. Your business model is not


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


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,


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?


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




Your examples

  What model will you use? How will you model it?

  Example



Q&A


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[email protected] www.foresttreesbark.com/blog @DaveParkerSEA