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The
Jason Maynard
Software Hour
The Greatest Technology
Conference Call Ever.
Category Kings
Why One Company Takes
All Economics
Al Ramadan
Dave Peterson
Christopher Lochhead
Our goal is to give you a new lens
to increase your odds.
The old lens.
“We make shit and sell shit and everything else
is bullshit.”
The new lens.
Category Design
The discipline of creating and
monetizing new markets.
Category Design
Category
King
$3.33 12 pack
$0.27 per 12 oz can
$19.98 12 pack
$1.67 per 1.93 oz bottle
Not an Accident.
Everything we believe about the value of any
given category of product/service we’ve been
conditioned to believe.
Category Design Increases The Odds
• Customers need new categories as
mental tags to organize new products
in their minds
...
The company that designs the category, is
best positioned to dominate the category.
Category Kings
"If the category is big enough
and the category king is
dominant enough, current
valuation is almost irrele...
12
The Odds
Less than 1% of VC-backed technology
companies are ever worth $1B or more.
Play Bigger
Time To Market Cap Repo...
Since 2000 the United States has
produced only 83, $1B+ market cap
technology companies.
Play Bigger
Time To Market Cap Re...
Winning technology companies are growing in value
almost 3X faster now vs. the early part of this century.
Leading consume...
Since 2000, Play Bigger TTMC 100 companies
created over half a trillion dollars of market cap.
Play Bigger
Time To Market ...
Category Kings take 70-80%
market cap of their space.
Tech companies increasing
market cap by $1 Billion or
more per year.
We Discovered
11 Super-Unicorns
# Company name
Market Cap
($Bn)
TTMC Velocity
($Mn / Yr)
Company
Age (Yrs)
4 Snapchat 10.0 3,765 2.7
5 Twitter 22.4 3,091 ...
Most people in our industry do not
understand Category Design.
Including most Category Kings.
“It turns out that it makes no sense
to go head to head.”
- Bill Hilf, Head of HP Cloud
Microsoft Store.
“We F*cked Up”
“Why did the
world need
another
Facebook”
Chris Messina,
Former Googler
Questions That Matter
• Is there a category strategy?
• S1
• Earnings calls
• Website
• Is the CEO an Evangelist for the c...
Thank You
Christopher Lochhead
Twitter: @lochhead
@playbiggeradv
playbigger.com
© Play Bigger Advisors, LLC
all rights res...
© Play Bigger Advisors, LLC
all rights reserved
playbigger.com
@playbiggeradv
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The Jason Maynard Software Hour: Christopher Lochhead Play Bigger

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Legendary Wall St Analyst Jason Maynard welcomes Christopher Lochhead of Play Bigger Advisors

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The Jason Maynard Software Hour: Christopher Lochhead Play Bigger

  1. 1. 0 The Jason Maynard Software Hour The Greatest Technology Conference Call Ever.
  2. 2. Category Kings Why One Company Takes All Economics Al Ramadan Dave Peterson Christopher Lochhead
  3. 3. Our goal is to give you a new lens to increase your odds.
  4. 4. The old lens.
  5. 5. “We make shit and sell shit and everything else is bullshit.”
  6. 6. The new lens.
  7. 7. Category Design The discipline of creating and monetizing new markets. Category Design Category King
  8. 8. $3.33 12 pack $0.27 per 12 oz can $19.98 12 pack $1.67 per 1.93 oz bottle Not an Accident.
  9. 9. Everything we believe about the value of any given category of product/service we’ve been conditioned to believe.
  10. 10. Category Design Increases The Odds • Customers need new categories as mental tags to organize new products in their minds • Before customers care about what a new product does they have to understand what problem it solves • Categories create hierarchies of value • Must have • Nice to have • Not interested Condition The Market.
  11. 11. The company that designs the category, is best positioned to dominate the category.
  12. 12. Category Kings "If the category is big enough and the category king is dominant enough, current valuation is almost irrelevant. The key to making investment decisions is understanding category potential and the ability of the category king to define, develop and dominate the space over time," Jason Maynard Managing Director Wells Fargo Securities
  13. 13. 12 The Odds Less than 1% of VC-backed technology companies are ever worth $1B or more. Play Bigger Time To Market Cap Report
  14. 14. Since 2000 the United States has produced only 83, $1B+ market cap technology companies. Play Bigger Time To Market Cap Report
  15. 15. Winning technology companies are growing in value almost 3X faster now vs. the early part of this century. Leading consumer tech startups are growing market cap at more than $600m per year. Leading enterprise companies are growing market cap at more than $100m per year. Play Bigger Time To Market Cap Report Survival of the Fastest
  16. 16. Since 2000, Play Bigger TTMC 100 companies created over half a trillion dollars of market cap. Play Bigger Time To Market Cap Report
  17. 17. Category Kings take 70-80% market cap of their space.
  18. 18. Tech companies increasing market cap by $1 Billion or more per year. We Discovered 11 Super-Unicorns
  19. 19. # Company name Market Cap ($Bn) TTMC Velocity ($Mn / Yr) Company Age (Yrs) 4 Snapchat 10.0 3,765 2.7 5 Twitter 22.4 3,091 7.3 6 LinkedIn 28.5 2,195 13.0 7 Airbnb 10.0 1,589 6.3 8 Workday 15.3 1,527 10.0 9 Dropbox 10.0 1,377 7.3 10 Pinterest 5.0 1,144 4.4 11 Square 6.0 1,042 5.8 Play Bigger TTMC 100: 11 Super Unicorns 1 2 3 Facebook Market Cap: $214.6Bn TTMC Velocity: $19,513M/Y Company Age: 11.0 Uber Market Cap: $40.0Bn TTMC Velocity: $6,730M/Y Company Age: 5.9 WhatsApp Market Cap: $21.8Bn TTMC Velocity: $4.247M/Y Company Age: 5.1
  20. 20. Most people in our industry do not understand Category Design. Including most Category Kings.
  21. 21. “It turns out that it makes no sense to go head to head.” - Bill Hilf, Head of HP Cloud
  22. 22. Microsoft Store.
  23. 23. “We F*cked Up” “Why did the world need another Facebook” Chris Messina, Former Googler
  24. 24. Questions That Matter • Is there a category strategy? • S1 • Earnings calls • Website • Is the CEO an Evangelist for the category • Framing the problem • Creating category potential Vs. competing for existing TAM • Driving a “From – To” • Are the winning the TTMC race?
  25. 25. Thank You Christopher Lochhead Twitter: @lochhead @playbiggeradv playbigger.com © Play Bigger Advisors, LLC all rights reserved
  26. 26. © Play Bigger Advisors, LLC all rights reserved playbigger.com @playbiggeradv

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