Connecting to Global Markets:Defining Value & Building Business Models                PROPRIETARY AND COPYRIGHT 2011      ...
A great paradoxBreakthrough ideas & entrepreneurial zeal           are everywhere…
However ...… The venture ecosystems to grow “killer”   companies are historically limited.
WHY?
Strategic  Intellectual Property      Management                          Venture Capital                                 ...
A CHANGING WORLD…
CASE STUDY: T2VC’S IMPACT                        ON     ONE STARTUP                                    Expertise          ...
Larta Institute                             $1B/year                           400 startups             USAID             ...
T2VC is venture capital for global                      innovation.                      We use capital as a lever to grow...
What We Won’t Cover     Business Plans
It Starts With the VisionEnvisioning a future state…•   What is the objective?•   Where is the pain?•   What are the curre...
Value Proposition:         The Heart & Soul• What is the “Market Pain”?• How does your product address the Market  Pain?• ...
Do you Really Have a Value Proposition?• Make an honest assessment.• Do you really have a product, or is it just  a invent...
Do you Really Have a Value Proposition?• Do you have something that people will  actually pay for and continue to use? (wi...
Business Model• What is your strategy?• How will you make money?• Who are your customers and why will they pay  for your p...
What Is a Business Model?• Diagram of flows between company and  customers• Scorecard of hypotheses testing• Rapid change ...
9 building blocks of a     business modelThanks to Business Model Generation (Alexander Osterwalder) andSteve Blank
CUSTOMER SEGMENTSwhich customers and users are you serving?which jobs do they really want to get done?
VALUE PROPOSITIONS what are you offering them? what is that  getting done for them? do they care?
CHANNELShow does each customer segment want to be reached? through which interaction points?
CUSTOMER RELATIONSHIPS   what relationships are you establishing with eachsegment? personal? automated? acquisitive? reten...
REVENUE STREAMS   what are customers really willing to pay for? how?are you generating transactional or recurring revenues?
KEY RESOURCESwhich resources underpin your business model?          which assets are essential?
KEY ACTIVITIESwhich activities do you need to perform well in   your business model? what is crucial?                     ...
KEY PARTNERSwhich partners and suppliers leverage your model?           who do you need to rely on?
COST STRUCTUREwhat is the resulting cost structure?which key elements drive your costs?
key    value            customer            activities   proposition      relationships     key                           ...
sketch out yourbusiness model
9 Guesses                            GuessGuess     Guess                                      Guess                  Gues...
Defining Value & Building Business Models
Defining Value & Building Business Models
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Defining Value & Building Business Models

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Defining Value & Building Business Models

  1. 1. Connecting to Global Markets:Defining Value & Building Business Models PROPRIETARY AND COPYRIGHT 2011 Victor W. Hwang | 310.663.0324 | victor@t2vc.com
  2. 2. A great paradoxBreakthrough ideas & entrepreneurial zeal are everywhere…
  3. 3. However ...… The venture ecosystems to grow “killer” companies are historically limited.
  4. 4. WHY?
  5. 5. Strategic Intellectual Property Management Venture Capital LegalThe Classical Startup: Sand Hill Road
  6. 6. A CHANGING WORLD…
  7. 7. CASE STUDY: T2VC’S IMPACT ON ONE STARTUP Expertise Expertise Expertise Technology Expertise, Capital, Advisor Partners PartnerMarketing Expertise Advisor Advisor Capital Customers
  8. 8. Larta Institute $1B/year 400 startups USAID World Bank CONNECT T2VC State Dept. $40M/year Policy: Singapore, Chile, AustraliaWe sit in the middle of a vast global web of over $4B per yearin innovation investment. We grab opportunities, openmarkets, and make connections to grow companies.
  9. 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 of100+ universities, research institutes, and strategic players. Wehelp our startups with contacts, insights, and expertise based on30 years connecting global entrepreneurs, innovators, andgovernments. 9
  10. 10. What We Won’t Cover Business Plans
  11. 11. It Starts With the VisionEnvisioning 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. 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. 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. 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. 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. 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. 17. 9 building blocks of a business modelThanks to Business Model Generation (Alexander Osterwalder) andSteve Blank
  18. 18. CUSTOMER SEGMENTSwhich customers and users are you serving?which jobs do they really want to get done?
  19. 19. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?
  20. 20. CHANNELShow does each customer segment want to be reached? through which interaction points?
  21. 21. CUSTOMER RELATIONSHIPS what relationships are you establishing with eachsegment? personal? automated? acquisitive? retentive?
  22. 22. REVENUE STREAMS what are customers really willing to pay for? how?are you generating transactional or recurring revenues?
  23. 23. KEY RESOURCESwhich resources underpin your business model? which assets are essential?
  24. 24. KEY ACTIVITIESwhich activities do you need to perform well in your business model? what is crucial? 24
  25. 25. KEY PARTNERSwhich partners and suppliers leverage your model? who do you need to rely on?
  26. 26. COST STRUCTUREwhat is the resulting cost structure?which key elements drive your costs?
  27. 27. key value customer activities proposition relationships key customerpartners segments cost revenuestructure key streams resources channels 27 images by JAM
  28. 28. sketch out yourbusiness model
  29. 29. 9 Guesses GuessGuess Guess Guess Guess Guess Guess Guess Guess

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