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  • CMRR = MRR + New contracts – ChurnCAC = (Revenue this qtr – Revenue last qtr) / (Sales * Marketing Cost) CLTV = PV of all the costs across the lifetime of the customer costs CMRR Renewal : This is a percentage calculation of the total CMRR of your renewed customers at the end of theyear, divided by the total CMRR of your existing customers at the beginning of the yearCMRR Churn % : This is a percentage calculation of all your customer CMRR that has been lost over the measuredtime period.

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  • 1. Overview DocumentRetaiLinkRetaiLink provides a collaboration platform for retailers to effectively manage tradefunding to meet desired objectivesE245 – Class UpdateArne H, Beyang L, Soumya M, Mithun SFeb 26, 2012
  • 2. Video http://www.youtube.com/watch?v=T6Rdwb3GFV0&feature=youtu.be 2 CONFIDENTIAL DO NOT SHARE
  • 3. Team Structure First andMithun Sheth Arne Hartmann last name Soumya Mohan Beyang Liu TitleSummary of experience Summary of experience Summary of experience Summary of experience• 8+ years of management • 10+ years experience in Growth • 2 years experience working as an • 2 years of enterprise software consulting and operations Equity investments and Tech engineer with an early stage development experience for experience M&A startup with top telecom financial vertical operators as customers.Areas of expertise Areas of expertise Areas of expertise Areas of expertise• Developed innovative consulting • Extensive experience in aligning • Computer vision & machine solutions with focus on retail business models with market to • Design, development and learning research in Stanford AI drive value. marketing of mobile applications Lab (3D reconstruction, action• Driven by strong entrepreneurial recognition, and semantic scene skills and also been founding • Structured numerous rounds of • Mobile wireless network segmentation) member of few startups. growth financing through equity connection management and debt. • Core developer for interactive• Built global delivery teams that • Enterprise software quality large-scale data analysis platform have bought numerous new assurance (experience at for banks and finance service offerings to market Microsoft) generating more than $30 MM in revenues. • Managed and recruited engineers Sloan 2013, Sloan 2013, Mgt Science & Engineering Computer Science 2013, Stanford GSB Stanford GSB 2013, Stanford Stanford 3 CONFIDENTIAL DO NOT SHARE
  • 4. Orchard View • Hardware development• Partnership with soil (Camera array We deliver agriculture • Sell service for periodic sensing companies information to growers, farm review • Our technology can mounted on cart) be applied to most with whom our • Machine-learning using computer vision • Dedicated sales team product offering can technology which helps to help provide insight fruit and nut crops computer vision be combined manage crop yield and into the farm issues with some algorithm (Leverage go-to- reduce cost for farmers. based on data adaptation. • GUI development - market alliances) • Orchard sign up for our • Drive the cart and relay• Partnership with service • Our cart periodically the information on a • We plan to tackle chemical companies tours the orchard and cloud based platform the following in our that help accelerate takes images of the initial outreach – leaves and trees and almond, walnuts, our offering to reach identifies issues oranges and grapes. their customers helping growers take• Support from cart (Primarily driven by corrective measures • Directly to Grower geography, market providers to make • Current methods • Team with expertise community or through value of crops, modifications (as deployed by farmers to in computer vision / Co-ops growing season and needed) detect issues in trees machine learning • In partnership with business need in the• Partnership with are either based on • Domain expertise in Pest Control Advisors orchards) Almond / Walnut sampling, aggregate agriculture farm- and independent board to help push information or driven by related issues consultants our technology highly labor intensive • Understanding of • Potential process. agriculture value arrangements with chain Heavy Equipment manufacturers • Fixed cost : Cart, camera sensor and array of add ons • Subscription based service fee model of $15-$25 per acre, • Infrastructure: Includes computer, server, software, and other per trip expenses • Service required multiple times before the harvest season • Variable Cost: Includes gas, driver, transportation, and other cost • Other Recurring Cost : Advertising, Website, Rent, Utility, Inusrance, Travel and other expenses 4 CONFIDENTIAL DO NOT SHARE
  • 5. Orchard View - Early stumbling blocks■ Market issues • Farmers did not see it as a big need and not ready to pay a lot • Class did not coincide with harvesting seasons for target crops leading to challenges in prototyping and customer discovery■ Technology issues • Current state of research in the space is primitive • Challenging to prove the exact value-add in prototype stage • Customized algorithms required for each crop and disease■ Team issues • The whole team was not passionate about the idea. Fail Early, Fail fast ! Restarted from a blank slate ! 5 CONFIDENTIAL DO NOT SHARE
  • 6. Birth of RetaiLink 6 CONFIDENTIAL DO NOT SHARE
  • 7. Value Proposition Features The Path to MVP • Collect initial customer feedback and only then showcase the wireframe Filter • Focus only on the key features in initial design • Reduce MVP further to bare minimum • Build MVP – does not need to be functional!! Wire frame gets 95% of validation in 10% of the time. • Iterate MVP based on feedback MVP • Helps understand dynamics between different stakeholders 7 CONFIDENTIAL DO NOT SHARE
  • 8. Customer SegmentsFOCUS : Who to Sell ? How to Sell ? • Category managers are primary users who can• Eliminate other retailer segments initially to validate the need but cannot make the focus on the grocery retailers based on need purchase decision• Map out customers according to technology • SVP Merchandising is the primary decision adoption and their size maker • Parse through latest top industry journals • Category managers at all ranks below SVP to figure out the early adopters and IT heads are key influencers • Speak to competitors and other suppliers • CPGs are influencers of the decision making to identify early adopters and may be paying for it indirectly 8 CONFIDENTIAL DO NOT SHARE
  • 9. Key Learning’s for Channel / Revenue and SaaS economics Channels SaaS Economics (5 “C”s of Cloud Computing) • SaaS based delivery model • Direct Sales Force • Committed Monthly Recurring Revenue • System Integrators / Consulting partners will NOT be interested in product offering at the early • Cash Flow – Gross / Net Burn Rate stage Revenues • CAC – Customer Acquisition Cost • Charge both CPG / Retailers a tiered pricing • CLTV – Customer Lifetime Value structure per category ($/category) • Additional fees for Advanced Analytics/ Reporting capability can be leveraged • Churn or Renewal Rate (Logo churn, CMRR • No Implementation, maintenance or churn or CMRR Renewed) performance based pricing will work in the retail spaceSource: Interviews, Bessemeer Venture Partner (Articles on Cloud Computing) 9 CONFIDENTIAL DO NOT SHARE
  • 10. RetaiLink 10 CONFIDENTIAL DO NOT SHARE
  • 11. Fieberkurve Week 8: 1st Pilot User Week 10: What next? Week 3: New Idea Week 4-7: 10 Interviews? Really? Week 2: Drop or Step up? 11 CONFIDENTIAL DO NOT SHARE
  • 12. Lessons as an entrepreneur Customer • Customer discovery can lead into successful business proposition but it is Discovery important not be in selling mode (Raley’s, Schnucks, Target) • Customer discovery is to “validate” the intuition and not to give you the core idea • Avoid confirmation bias during customer discovery for entrepreneur especially when showing the wireframe • Understand different perspectives and take all advice with a grain of salt Managing Start Up • Each startup has only few key numbers that need to be validated. Understand what they are to manage your business • Passion in the team is a key element to success (especially when you are dealing in the enterprise space) Competition • A crowded space with competitors does not mean anything. Need to understand the gaps in the current space to evaluate if you can sustain a start up • Market research mainly analyzes the history and not the current need. So key to get out and speak to customers. 12 CONFIDENTIAL DO NOT SHARE
  • 13. Appendix 13 CONFIDENTIAL DO NOT SHARE
  • 14. Value Chain of Retail industry Trade Funds ($200B) Promotion, New Items, Display, Supply chain etc.. Product Support Newspaper Ads, Display, Temp. Price Reduction etc.. Online collaboration platform that provides the right decision support for retailers and a collaboration platform for CPG 14 CONFIDENTIAL DO NOT SHARE
  • 15. Ecosystem Data provider (Nielsen, RSi) RetaiLink Trade funding system- Retailer of-record CPG (Tradepoint, Nopa) ERP Modeling tools Modeling tools (Oracle) (Excel, DemandTec) (Excel, custom) 3rd party systems integrator (IBM) 15 CONFIDENTIAL DO NOT SHARE