Cleantech Open
2013 Webinar Series
Tuesday, July 23, 2013
2 Cleantech Open Confidential Information – All Rights Reserved
Welcome to the National Webinar Series
• With the Cleantec...
3 Cleantech Open Confidential Information – All Rights Reserved
Global Partner
4 Cleantech Open Confidential Information – All Rights Reserved
National Sponsors
5 Cleantech Open Confidential Information – All Rights Reserved
Thank You To All Our Sponsors!
6 Cleantech Open Confidential Information – All Rights Reserved
The Summer Program – July – September 2013
Date Time
(PDT)...
7 Cleantech Open Confidential Information – All Rights Reserved
Session 1: Markets and Getting to Them
1:30pm – 2:30pm, PD...
Cleantech Open
Markets and Getting to Them
By Niraj Kohli - University of Phoenix
Cleantech Open
Webinar 3 – Markets and Getting to Them
KEY
TRENDS
MARKET
FORCES
MACRO-
ECONOMIC
FORCES
Copyright © 2013 Un...
This webinar is a 60-minute meeting
presented as part of the Cleantech Open,
which focuses specifically on the Markets
and...
Agenda
o Value Creation from Factory to Field through AKA
 15 minutes
o Mapping Customer Buying Process
 10 minutes
o Ma...
Cleantech Open
Webinar 3 – Markets and Getting to Them
Markets and Getting to Them Worksheet and Judging Criteria
Workshee...
Value Creation through Markets and Getting to Them
Focus on Factory to Field and Awareness, Knowledge and Action (AKA)
Wha...
(VP)
VALUE
PROPOSITIONS
(CH)
CHANNELS
(CR)
CUSTOMER
RELATIONSHIPS
(CS)
CUSTOMER
SEGMENTS
(R$) REVENUE STREAMS(C$) COST STR...
Value
Propositions
Customer
Segments
Cleantech Open
Webinar 3 – Markets and Getting to Them
Cleantech Open Webinar
by University of Phoenix
Markets and Getting to Them
Mapping Customer Buying Process
© Copyright 2013 EcoFactor. All Rights Reserved. Confidential
Inefficiency Throughout The Day, Everyday
slide #6
© Copyright 2013 EcoFactor. All Rights Reserved. Confidential
Existing utility partner
Comcast coverage
Current Customers ...
© Copyright 2013 EcoFactor. All Rights Reserved. Confidential
• Customers announced:
• Revenue model
• SaaS
• Monthly serv...
Cleantech Open
Webinar 3: Markets and Getting to Them
Are there any questions?
Cleantech Open Webinar
by University of Phoenix
Markets and Getting to Them
Market Size and Growth Rate – Near and Long Te...
Cleantech Open
Webinar 3: Markets and Getting to Them
KEY
TRENDS
MARKET
FORCES
INDUSTRY
FORCES
MACRO-
ECONOMIC
FORCES
http...
Cleantech Open
Webinar 3: Markets and Getting to Them
Market Forces
MARKET SEGMENTS
NEEDS AND DEMANDS
MARKET ISSUES
SWITCH...
Cleantech Open
Webinar 3: Markets and Getting to Them
Economic Infrastructure
Describes the economic infrastructure of the...
Cleantech Open
Webinar 3: Markets and Getting to Them
Global Market Conditions
Example:
The Recovery Act
• The Recovery Ac...
Cleantech Open
Webinar 3: Markets and Getting to Them
Industry Forces
SUPPLIERS AND OTHER VALUE
CHAIN ACTORS
STAKEHOLDERS
...
Cleantech Open
Webinar 3: Markets and Getting to Them
Competitors (Incumbents)
Identifies incumbent competitors and their ...
Cleantech Open
Webinar 3: Markets and Getting to Them
Competitors (Incumbents)
Questions to ask:
• Who are our competitors...
Cleantech Open
Webinar 3: Markets and Getting to Them
Competitors (New Entrants)
Identifies new, insurgent players and det...
Cleantech Open
Webinar 3: Markets and Getting to Them
Substitute Products and Services
Describes potential substitutes for...
Cleantech Open
Webinar 3: Markets and Getting to Them
Substitute Products and Services
Questions to ask:
• Which products ...
Cleantech Open
Webinar 3: Markets and Getting to Them
Suppliers and Other Value Chain Actors
Describes the key Supply and ...
Cleantech Open
Webinar 3: Markets and Getting to Them
Are there any questions?
Cleantech Open Webinar
by University of Phoenix
Markets and Getting to Them
Pilot Customer Development and Repeatable
Sale...
Cleantech Open
Webinar 3: Markets and Getting to Them
Pilot Customer Development
o Start with a Lead Customer in terms of ...
Cleantech Open
Webinar 3: Markets and Getting to Them
Repeatable Sales Model
o Direct – ecommerce, Personal Selling
o Indi...
Cleantech Open
Webinar 3: Markets and Getting to Them
Repeatable Sales Model
o Key Factors that should guide your Go to Ma...
Cleantech Open
Webinar 3: Markets and Getting to Them
Markets and Getting to them
What is your plan?
Cleantech Open
Webinar 3: Markets and Getting to Them
Are there any questions?
Session 1 Q&A
Accelerating Your Business
Live and Breathe the Worksheets
43 Cleantech Open Confidential Information – All Rights Reserved
Worksheet Work – Week 7/23 - 7/30
• Business Model Canvas...
44 Cleantech Open Confidential Information – All Rights Reserved
TEAM FOCUS FOR WEEK OF AUGUST 1
Prepare for Business Clin...
Session 2 will start at 2:45pm PDT
3:45pm MDT, 4:45pm CDT, 5:45pm EDT
46 Cleantech Open Confidential Information – All Rights Reserved
Session 2: Term Sheets
2:45pm – 4:00pm, PDT
Speaker:
Juli...
Term Sheet
Fundamentals:
William S. Perkins, Partner
Julio E. Vega, Partner
CleanTech Open
National Academy
July 23, 2013
...
CAST & SETTING
Entrepreneur..................................................................Will Perkins
Will, an enginee...
ACT I
The Meeting
Will and Julio meet at The Beer Garden and jump right into their negotiation. Things quickly turn to
val...
ACT II
The Meeting
With valuation and the structure/type of security set, Will and Julio turn to other terms and topics......
ACT III
The Meeting
Things are wrapping up...
Key Terms
• Board seat [__]
• Observer [__]
• Information [__]
• Drafting [_...
Term Sheet Fundamentals:
What to worry about tomorrow
• Dividends (and when they matter)
• Conversion
• Anti-Dilution Prot...
Other Resources
• The National Venture Capital Association‟s “„template‟ set of model
legal documents for venture capital ...
Bingham Offices
What People are Saying about Us...
Recognized by Chambers
USA as having a “„stellar‟
corporate team” that
produces “work o...
Representative CleanTech Clients
Will Perkins
Will Perkins concentrates his practice on general corporate matters and licensing matters, with an
emphasis o...
William S. Perkins
Partner
617-951-8574
william.perkins@bingham.com
Thank You
and
Good Luck!
Julio Vega
Partner
617-951-89...
Session 2 Q&A
Reminders
61 Cleantech Open Confidential Information – All Rights Reserved
Reminders
• Work on your worksheets – keep up each week, ...
13 0723 session 1 & 2 webinars
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  • The result of many years’ worth of work, the 10-Step Curriculum is the key process, initially introduced at the Academy, which helps a company de-risk their technology.Progressive de-risking of company from concept to a venture that will achieve investment and/or sustainable revenueTraining materials, activities & workshops are integrated with these 10 steps Product-Market Fit helps each company ensure that they have identified the correct market for their product(s)/service(s) and are ready to make appropriate adjustments. 2) Technology Validation ensures that their product(s)/service(s) will credibly meet the requirements of investors and customers. 3) Business Model covers all key aspects of who and how and where money will be made, and how the product will be delivered. 4) Markets and Getting to Them covers the key, crucial steps needed to get a new product into the market (an enhanced version of ‘Go To Market Strategy’). 5) Finances & Funding focuses on producing credible financial projections. 6) Legal provides an introduction to intellectual property protection and the corporate structure required to minimize risk and provide the legal underpinnings for success (important steps often overlooked by entrepreneurs). 7) Execution and Team to Execute introduces the importance of building a strong, relevant team with the specific skills needed to hit the major milestones needed as the startup grows. 8) Sustainability introduces the importance of business practices that will improve the company’s profitability while reducing its environmental impact. 9) Presentation works on the content and skills for excellent investor/customer presentations. 10) Assessment & Review guides each entrepreneur through the importance of careful review, and provides the platform for review and refinement of the programs themselves.Physical and virtual business clinics are one-on-one sessions for each participating startup with experts from sectors such as law, marketing, design, manufacturing and finance.
  • Welcome to the Cleantech Open Customer Discovery and Product / Market Fit Webinar.
  • Graphic of the business model environment found on p. 201 of Business Model Generation.
  • Introductory slide and webinar description
  • Our agenda for today’s topics in this webinar focus on the following:- Value Creation from Factory to Field through AKA for Cleantech Enterprises- Mapping Customer Buying Process for enterprises Market Size and Growth Rate – Near and Long Term (TAM, SAM) including Market Infrastructure Discovery Pilot Customer Development and Repeatable Sales Model We will take questions in the middle and at the end of our meeting today.At the conclusion of the webinar, you should have a more solid understanding of how Markets and Getting to them fit onto Osterwalder and Pigneur’s (2010) Business Model Canvas.
  • We move on to Webinar no 3 from where we left off last week on Customer Discovery, Product / Market Fit. You shared with us what you liked about the Webinars and how we can make them more helpful. Today’s Webinar is on Front and Back Stage i.e. Customer View and Operational View with focus on Value Creation, Business Model Canvas, Customer Discovery –Product Market Fit and now trying to understand the opportunity and monetizing it. The goal is to link the Webinar content as much as possible to the Worksheets that you are required to complete and Judging Criteria given that is your shorter term interest.
  • Remember the Credit Rule of 50/30/20 of Public Markets and how it impacts you as a start up!50% is Macro Environment - Economic, Regulatory, Political and Legal etc (Capital Markets and Regulatory Policies and its impact on Cleantech)30% is Industry and Country - What Industry Segment and Locations of Supply and Value Chains (Water, Energy, US, China, India etc) 20% is given Business Impact – Growth, Profits and Impact (Sales Opportunity, Gross Margins, Cash Flows) Focus on Factory to Field and Awareness, Knowledge and Action (AKA) 4C’s (Customer, Cost, Competition, Channels) Segment, Sub- Segment and Application, Intellectual Property Supply and Value Chain – Be clear on the choke points Ability to monetize with Impact Business is not about what you deserve but what you are able to Negotiate!- Innovation - Spin off, Evolutionary and Revolutionary Products / Markets.- Drive versus Driven in Markets – Thinking of Markets Differently- Create New versus Existing Industry – Products and ValueInnovation – Practices, Processes and Products to form Spinoff, Evolutionary and Revolutionary. Example….Optoelectronic and Diodes market, Existing Chips / New Packages or Vice Versa and New Platforms and Devices. Example….SMPS Market and HP Printer Market2)Drive versus Driven in Markets – First Mover Advantage versus competing solely on price and delivery. Example…….At Motorola Semiconductor, drove the conversion of existing diodes in ESD and Transient Voltage Supression Business which lead from competing on commodity parts to high margin and high growth markets. Example…….Rise of Wafer Foundaries and Subcontractor Back End Manufacturing companies in a highly capitalized industry such as semiconductor industry.3) Create New versus Existing Industry – Sell Solutions versus Devices – Example - Optoelectronics devices (LED’s) that sell for pennies to create a Smart Lighting Solutions that sell for dollars. Sell discrete LED’s and Detectors devices or sub assemblies to Automotive Industry / Industrial / Commercial Mood Lighting Market Example….Color Kinetics focusing on Smart Lighting and development Intellectual Property that lead them to sell out to Phillips Lighting.
  • In Markets and Getting to them one needs to be focused on all three stages of Business Model Canvas though most of the action is on Front and Back Stage with actions impacting you on Business Performance Stage.The Canvas consists of nine building blocks, which are described from Right to Left (Front Stage and Back Stage) and then at the bottom Front Stage……..On the Right are four building blocks that form what can be called a customer view. These blocks include Customer Segments (CS), Value Propositions (VP), Customer Relationships (CR), and Channels (CH).On the Left are three building blocks that form what can be called the operations view. These blocks are Key Activities (KA), Key Resources (KR), and Key Partnerships (KP). At the bottom of the Canvas are two blocks that make up the economics view: Cost Structure (C$) and Revenue Streams (R$).The Canvas should be seen as a visual representation of the flow from suppliers to customers supported by economic elements. The organization of the elements is set up to be developed from right to left and then interpreted left to right. Like a painting it may not make sense until all elements are in place and the whole of the picture is seen through the interaction of the parts. In the following discussion we will look at each in more detail.Companies with Successful Business Models – Apple, Intel, Google and Power Assure (Smart Power Management - Dashboard)
  • Key Takeaways: 1) Many Cleantech Markets are existing and established- Your potential customers are already using a product that yours must replace or augment and you must test your product against existing alternative products.- You already have competitors servicing those customers and you must understand those competitors and their product features, their established sales channels and their demand creation strategy.2) Identifying target customer segments thru research, mapping supply and value chains, Observation and Yes, interviews are key.3) Customer Dollar Spends, Observations, interviews and line tours aare key to crafting a winning Value Proposition which must specifically describe the problems you solve better, more efficiently and effectively etc. than Companies X, Y and ZHere, we see Osterwalder and Pigneur’s Business Model Canvas (2010) showing the two segments we will discuss for the next 90 minutes: value propositions and customer segments.Customer Segments – Unique groups differentiated by:Industry Segment Sub Segment Application Functionality Size OtherTest Hypotheses with interviews in several segments:Product Value Proposition Hypothesis
 Customer Hypothesis
 
 Demand Creation Hypothesis
 Market Type Hypothesis
 Competition Hypothesis
  • Photoxhopannabell
  • Graphic of the business model environment found on p. 201 of Business Model Generation100k Foot Analysis – Macro Economic Issues. Regulatory. Political, Legal – Megatrends50k Foot Analysis – Industry and Country Analysis – Niche’s but highly profitable Segements 10k Foot Analysis – Operational Analysis - Supply and Value Chains of Existing Markets
  • Graphic of the Market Forces domain of the external environment from p. 202 of Business Model GenerationFocus on TAM, SAM and sources to collect such info - Example …..ARIIndustry Reports Analyst ReportsS1 filings of companies that go public- Research Firms such as Gartners, Gigaom and Investment Banks investing and promoting Cleantech Companies
  • Graphic of the Industry Forces domain of the external environment from p. 204 of Business Model GenerationEnergy Conservation versus Efficiency in Industrial Applications – Example Atmosphere Recovery Inc (ARI).
  • 13 0723 session 1 & 2 webinars

    1. 1. Cleantech Open 2013 Webinar Series Tuesday, July 23, 2013
    2. 2. 2 Cleantech Open Confidential Information – All Rights Reserved Welcome to the National Webinar Series • With the Cleantech Open since 2007 • Mentor Chair 2007 - 2008 • Executive Director 2008 - present MC: Rex Northen, Executive Director, Cleantech Open
    3. 3. 3 Cleantech Open Confidential Information – All Rights Reserved Global Partner
    4. 4. 4 Cleantech Open Confidential Information – All Rights Reserved National Sponsors
    5. 5. 5 Cleantech Open Confidential Information – All Rights Reserved Thank You To All Our Sponsors!
    6. 6. 6 Cleantech Open Confidential Information – All Rights Reserved The Summer Program – July – September 2013 Date Time (PDT) Session I – Worksheets Time (PDT) Special Topic Sessions 7/9 1:30 to 2:30pm Business Model Canvas (Review) 2:45 to 4:00pm LaunchPad Central (Review) 7/16 1:30 to 2:30pm Product/Market Fit 2:45 to 4:00pm Systems Review, PR 101 7/23 1:30 to 2:30pm Markets and Getting to Them 2:45 to 4:00pm Term Sheets 7/30 1:30 to 2:30pm Product/Technology Validation 2:45 to 4:00pm Alternative Sources of Funding - Grant Writing / Crowd Sourcing 8/6 1:30 to 2:30pm Financials Analysis & Planning 2:45 to 4:00pm IP Licensing from 3rd Parties 8/13 1:30 to 2:30pm Legal Environment, Issues and Risks 2:45 to 4:00pm Cap Tables 8/20 1:30 to 2:30pm Management Team 2:45 to 4:00pm Working with the Utilities 8/27 1:30 to 2:30pm Sustainability 2:45 to 4:00pm Tell Your Story, Sell Your Story (Communicating value to stake holders) (9/11) 1:30 to 2:30pm Investor Presentation Mentor Assessment 2:45 to 4:00pm Mock Judging, Regional Awards, Global Forum
    7. 7. 7 Cleantech Open Confidential Information – All Rights Reserved Session 1: Markets and Getting to Them 1:30pm – 2:30pm, PDT • 30 year technology industry veteran, having run global businesses based in USA and Asia • With University of Phoenix for 30 years • Currently a practitioner Lead Faculty for Strategy in the School of Business Speaker: Niraj Kohli President, CSC
    8. 8. Cleantech Open Markets and Getting to Them By Niraj Kohli - University of Phoenix
    9. 9. Cleantech Open Webinar 3 – Markets and Getting to Them KEY TRENDS MARKET FORCES MACRO- ECONOMIC FORCES Copyright © 2013 University of phoenix. All rights reserved. Reproduction in copies, distribution to others, preparation of modified or derivative works, or sublicensing others without express written consent of University Phoenix is prohibited. University of Phoenix webinars include content from: businessmodelgeneration.com and from Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers [ISBN: 978-0-470- 87641-1] by Alexander Osterwalder and Yves Pigneur, (hereafter referred to as the “Work”). Copyright © 2010 by Alexander Osterwalder and Yves Pigneur. All rights reserved. Used by arrangement with John Wiley & Sons, Inc. Unless John Wiley and Sons, Inc.’s (“Publisher”) express prior written permission is obtained, it is prohibited to (a) remove or alter the author’s name, Publisher’s copyright notices, or other means of identification or disclaimers as they appear in the Work; (b) make electronic copies of the Work other than as permitted pursuant to Section 1.1 of Agreement between Publisher and Apollo Group, Inc. “(Apollo”); (c) mount or distribute any part of the Work on any electronic network (including without limitation, the Internet and the World Wide Web) other than the Sites; (d) use all or any part of the Work for the purposes of monetary reward by means of sale, resale, loan, transfer, hire, or other form of distribution of the Work; (e) distribute the whole or any part of the Work to anyone other than Authorized Registrants (as defined in the Agreement between Publisher and Apollo; (f) publish, distribute, or make available the Work, works based on the Work or which combine it with any other material, other than on the Sites as expressly permitted in this Agreement between Publisher and Apollo.
    10. 10. This webinar is a 60-minute meeting presented as part of the Cleantech Open, which focuses specifically on the Markets and Getting to Them Cleantech Open Webinar by University of Phoenix
    11. 11. Agenda o Value Creation from Factory to Field through AKA  15 minutes o Mapping Customer Buying Process  10 minutes o Market Size and Growth Rate – Near and Long Term along with Market Infrastructure Discovery  15 minutes o Pilot Customer Development and Repeatable Sales Model  10 minutes o Questions  10 minutes Cleantech Open Webinar 3 – Markets and Getting to Them
    12. 12. Cleantech Open Webinar 3 – Markets and Getting to Them Markets and Getting to Them Worksheet and Judging Criteria Worksheets • Customer Buying Process o Current Solutions? o Purchase Decision Process? o Partners? Channels? Influencers? • Market Size and Growth Rate – Near and Long Term • Market Infrastructure Discovery o Competitors, Alternative Solutions o Forces, Trends Affecting Growth • Pilot Customer Development • Repeatable Sales Model Judging Criteria • Is the sequence of target markets and the path to them clear and defensible, and is the potential market large enough for a successful startup to have a major environmental and economic impact? • Does the cumulative size of the target markets represent an attractive opportunity appropriate to the funding strategy?
    13. 13. Value Creation through Markets and Getting to Them Focus on Factory to Field and Awareness, Knowledge and Action (AKA) What is 50/30/20 rule? Cleantech Open Webinar 3 – Markets and Getting to Them
    14. 14. (VP) VALUE PROPOSITIONS (CH) CHANNELS (CR) CUSTOMER RELATIONSHIPS (CS) CUSTOMER SEGMENTS (R$) REVENUE STREAMS(C$) COST STRUCTURE (KP) KEY PARTNERSHIPS (KR) KEY RESOURCES (KA) KEY ACTIVITIES Customer view – Front StageOperations view- Back Stage Economics view – Business Performance Stage businessmodelgeneration.com Cleantech Open Webinar 3 – Markets and Getting to Them
    15. 15. Value Propositions Customer Segments Cleantech Open Webinar 3 – Markets and Getting to Them
    16. 16. Cleantech Open Webinar by University of Phoenix Markets and Getting to Them Mapping Customer Buying Process
    17. 17. © Copyright 2013 EcoFactor. All Rights Reserved. Confidential Inefficiency Throughout The Day, Everyday slide #6
    18. 18. © Copyright 2013 EcoFactor. All Rights Reserved. Confidential Existing utility partner Comcast coverage Current Customers and Their Service Territory • 530K customers • 6th largest municipal utility in the U.S. 2.4M total customers 2.2M electricity customers 23M customers Access to distribute EcoFactor services to 30M+ customers 1M customers in Texas slide #3
    19. 19. © Copyright 2013 EcoFactor. All Rights Reserved. Confidential • Customers announced: • Revenue model • SaaS • Monthly service fees • Ten (10) patents and issued, many more pending • VC funded: $17M to date, founded in 2006 About EcoFactor slide #2
    20. 20. Cleantech Open Webinar 3: Markets and Getting to Them Are there any questions?
    21. 21. Cleantech Open Webinar by University of Phoenix Markets and Getting to Them Market Size and Growth Rate – Near and Long Term Market Infrastructure Discovery
    22. 22. Cleantech Open Webinar 3: Markets and Getting to Them KEY TRENDS MARKET FORCES INDUSTRY FORCES MACRO- ECONOMIC FORCES http://www.businessmodelgeneration.com/
    23. 23. Cleantech Open Webinar 3: Markets and Getting to Them Market Forces MARKET SEGMENTS NEEDS AND DEMANDS MARKET ISSUES SWITCHING COSTS REVENUE ATTRACTIVENESS MARKET FORCES - Market Analysis - http://www.businessmodelgeneration.com/
    24. 24. Cleantech Open Webinar 3: Markets and Getting to Them Economic Infrastructure Describes the economic infrastructure of the market in which your business operates
    25. 25. Cleantech Open Webinar 3: Markets and Getting to Them Global Market Conditions Example: The Recovery Act • The Recovery Act provides appropriations for projects and activities that are related to transitioning the economy to clean energy with a total investment of over $90 billion.
    26. 26. Cleantech Open Webinar 3: Markets and Getting to Them Industry Forces SUPPLIERS AND OTHER VALUE CHAIN ACTORS STAKEHOLDERS COMPETITORS (INCUMBENTS) NEW ENTRANTS (INSURGENTS) SUBSTITUE PRODUCTS AND SERVICES INDUSTRY FORCES - Competitive Analysis - http://www.businessmodelgeneration.com/
    27. 27. Cleantech Open Webinar 3: Markets and Getting to Them Competitors (Incumbents) Identifies incumbent competitors and their relative strengths
    28. 28. Cleantech Open Webinar 3: Markets and Getting to Them Competitors (Incumbents) Questions to ask: • Who are our competitors? • Who are the dominant players in our particular sector? • What are their competitive advantages or disadvantages? • What are their main offers? • Which customer segments are they focusing on? • What is their cost structure? • How much influence do they exert on our customer segments, revenue streams, and margins?
    29. 29. Cleantech Open Webinar 3: Markets and Getting to Them Competitors (New Entrants) Identifies new, insurgent players and determines whether they compete with a business model different from yours
    30. 30. Cleantech Open Webinar 3: Markets and Getting to Them Substitute Products and Services Describes potential substitutes for your offers, including those from other markets and industries
    31. 31. Cleantech Open Webinar 3: Markets and Getting to Them Substitute Products and Services Questions to ask: • Which products or services could replace ours? • How much do they cost compared to ours? • How easy is it for customers to switch to these substitutes? • What business model tradition do these substitute products stem from (e.g., high-speed trains versus airplanes, mobile phones versus cameras, or Skype versus long-distance telephone companies)?
    32. 32. Cleantech Open Webinar 3: Markets and Getting to Them Suppliers and Other Value Chain Actors Describes the key Supply and value chain incumbents (Physical and Electronic) in your market and spots new emerging players
    33. 33. Cleantech Open Webinar 3: Markets and Getting to Them Are there any questions?
    34. 34. Cleantech Open Webinar by University of Phoenix Markets and Getting to Them Pilot Customer Development and Repeatable Sales Model
    35. 35. Cleantech Open Webinar 3: Markets and Getting to Them Pilot Customer Development o Start with a Lead Customer in terms of Development o Who are you targeting? o What is the Segment? o How do you plan to get there?
    36. 36. Cleantech Open Webinar 3: Markets and Getting to Them Repeatable Sales Model o Direct – ecommerce, Personal Selling o Indirect - Retail - Online (Amazon) - Offline (Apps) o Indirect – Distributors (Ownership of Product) - Reps (Commission basis) though removed from the customer o Component of bigger System - Private Labeling and let someone else sell
    37. 37. Cleantech Open Webinar 3: Markets and Getting to Them Repeatable Sales Model o Key Factors that should guide your Go to Market Strategy  Deal Size / Product Margin  Percentage of Whole Product  Solution Complexity  Credibility and Brand  Local Knowledge  Time to Market  No of Target Customers
    38. 38. Cleantech Open Webinar 3: Markets and Getting to Them Markets and Getting to them What is your plan?
    39. 39. Cleantech Open Webinar 3: Markets and Getting to Them Are there any questions?
    40. 40. Session 1 Q&A
    41. 41. Accelerating Your Business Live and Breathe the Worksheets
    42. 42. 43 Cleantech Open Confidential Information – All Rights Reserved Worksheet Work – Week 7/23 - 7/30 • Business Model Canvas and Value Chain Diagram – continue working on this – Competitors / Competitive Advantage / Why You? • Product/Market Fit – Continue Customer Interviews – Pre-revenue and post initial revenues • Getting to Market – Define, characterize and size your Market – Identify first $1m Market – Validate your customer • Product & Technology Validation or Path to Same – start validating through your customer discovery process
    43. 43. 44 Cleantech Open Confidential Information – All Rights Reserved TEAM FOCUS FOR WEEK OF AUGUST 1 Prepare for Business Clinics Address Product/Technology Validation Worksheet (Wiki) Complete Product/Market Fit Worksheet (Wiki) Complete Business Model Canvas and Worksheet (Wiki) Complete Markets and Getting to Them Worksheet (Wiki) Begin (or continue) to develop Financials Worksheet (Wiki) Contact Your Mentor or Regional Mentor Chair With All Questions
    44. 44. Session 2 will start at 2:45pm PDT 3:45pm MDT, 4:45pm CDT, 5:45pm EDT
    45. 45. 46 Cleantech Open Confidential Information – All Rights Reserved Session 2: Term Sheets 2:45pm – 4:00pm, PDT Speaker: Julio E. Vega Partner, Bingham Speaker: William S. Perkins Partner, Bingham
    46. 46. Term Sheet Fundamentals: William S. Perkins, Partner Julio E. Vega, Partner CleanTech Open National Academy July 23, 2013 A Play in Three Acts
    47. 47. CAST & SETTING Entrepreneur..................................................................Will Perkins Will, an engineer by training, spent many years in the labs of a large technology company. He is now leading a group of his former work colleagues into a new clean-tech venture. Having spotted the growing interest in electric cars, Will and his team have developed a product that sits between the power source (i.e., home wall plug) and car charging port that speeds charge times by 30%-50% in early lab tests. SpeedyCharge needs $500,000 -- 750,000 to develop a prototype and place it with a local electric car club who have agreed to beta test it. Angel Investor.................................................................Julio Vega Julio, a lawyer by training, now spends his time investing in early-stage growth companies as an angel and with his group of old friends functions almost as an angel fund. Setting Having been introduced by a mutual connection, Julio and Will are meeting for the first time at a local craft beer hall to review terms for an angel investment round led by Julio. Prior to this meeting, Julio and Will had a long “meeting” (WebEx) where Will walked Julio through his slide deck and business model for SpeedyCharge. Julio indicated a willingness to invest, but Julio wanted to meet will in person to negotiate out terms.
    48. 48. ACT I The Meeting Will and Julio meet at The Beer Garden and jump right into their negotiation. Things quickly turn to valuation... Key Terms* • LLC [__] • Corporation [__] • Founders [__] • Valuation [__] • Cap Table [__] • Pre-money [__] • Post-Money [__] • Convertible Notes [__] • Preferred Stock [__] *Engineered for Term Bingo! Play along...
    49. 49. ACT II The Meeting With valuation and the structure/type of security set, Will and Julio turn to other terms and topics... Key Terms • Option Pool [__] • Participating [__] • Dividends [__] • Anti-dilution [__] • Pre-emptive rights [__] • Blocking rights [__] • Protective provisions [__] • Vesting [__]
    50. 50. ACT III The Meeting Things are wrapping up... Key Terms • Board seat [__] • Observer [__] • Information [__] • Drafting [__] • Counsel [__] • ROFR [__] • Co-sale [__] • Drag [__] • Expenses [__]
    51. 51. Term Sheet Fundamentals: What to worry about tomorrow • Dividends (and when they matter) • Conversion • Anti-Dilution Protection • Redemption • Protective Provisions • Investor Rights/Covenants • Founder Stock • Exclusivity • Binding
    52. 52. Other Resources • The National Venture Capital Association‟s “„template‟ set of model legal documents for venture capital investments” are available at: http://www.nvca.org/index.php?option=com_conten t&view=article&id=108&Itemid=136 • The model documents, while instructive and prepared with helpful annotations, are no substitute for a thorough discussion/translation by your own counsel
    53. 53. Bingham Offices
    54. 54. What People are Saying about Us... Recognized by Chambers USA as having a “„stellar‟ corporate team” that produces “work of an „extremely high quality‟” as well as noted for having “broad geographical client reach” -Chambers USA “Bingham McCutchen has long housed some impressive project finance experts, and the firm itself is now achieving more recognition, especially for its work in renewable and alternative energy.” -Chambers USA “Noted as one of the largest environmental groups in the country, “clients‟ would recommend them without a doubt.”‟ -Legal 500 2008 Deal of the Year by Project Finance Magazine 2010 Best Renewables Deal by Power Finance & Risk 2008 Americas Renewables Deal of the Year by Project Finance International Nominated for Deal of the Decade by Infrastructure Journal Noted as a Top Ten United States Cleantech Law Firm of 2011 by CleanTechies.com
    55. 55. Representative CleanTech Clients
    56. 56. Will Perkins Will Perkins concentrates his practice on general corporate matters and licensing matters, with an emphasis on strategic investments, mergers and acquisitions, structuring and financing new ventures, and public and private offerings of securities, including representation of both financial and strategic buyers. He represents both public and private companies, as well as private equity funds, in a wide range of transactions including venture capital financings; in-licensing and out-licensing transactions; product manufacturing and distribution arrangements and initial public offerings and follow-on public offerings of equity and debt securities. Julio Vega Julio Vega concentrates on corporate and securities law, with an emphasis on venture capital transactions, mergers and acquisitions, public offerings such as IPOs, joint ventures, strategic alliances, and licensing transactions. He represents emerging growth companies and established businesses in all areas of technology, including advanced materials, biotechnology, e- commerce, nanotechnology, networking, software and telecommunications. Julio regularly counsels startups on equity-based compensation matters, equity finance strategy, executive employment arrangements, general business strategy and other general corporate issues. He has also represented venture capital firms in connection with portfolio company investments.
    57. 57. William S. Perkins Partner 617-951-8574 william.perkins@bingham.com Thank You and Good Luck! Julio Vega Partner 617-951-8901 julio.vega@bingham.com
    58. 58. Session 2 Q&A
    59. 59. Reminders
    60. 60. 61 Cleantech Open Confidential Information – All Rights Reserved Reminders • Work on your worksheets – keep up each week, it will make it easier • Complete webinar survey you will automatically receive from Webex – we want your feedback • Next webinar is Tuesday, July 30th – Check your Accelerator wiki http://wiki.cleantechopen.com/accelerator- wiki/2013-webinars/ for updates on webinars – Session 1: Product & Technology Validation - 1:30pm to 2:30pm, PDT • Speaker: Niraj Kohli, President, CSC • Be sure to send in your top 3 expectations you have for the next worksheet webinar. Link is in the July 30th Session 1 webinar – Session 2: Alternative Sources of Funding: Grants - 2:45pm-4:00pm, PDT

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