1. Archicamp
“A software platform for monitoring manufacturing machinery” (Original Idea)
to
“A platform to enable collaboration between architects, designers, and
engineers” (Current Idea)
2. Our Team
Guillaume Ryan
Miara, Jung, MBA
M.Eng.
Anirudh Alex
Subbarao, Bergin,
M.Eng. M. Arch.
(Advisor)
3. 3D Prints Express Timeline
Digital ID Link 3D Prints 4-sided mktplc
Manufacturing Express
2-sided mktplc for Architects Workflow
modeling
Pain Points
Collaboration Ambiguity
Wireframe
Design Groups &
Thought Leaders
Tech Adoption LH Side of Canvas Rev Model
Cost Structure Willingness to Pay
Income
Statement
6. Modeling Marketplace, Market Size
Calculation of $10 per hour margin:
1$5 billion Estimated Cost to Firm:
$3,500 annual seat license for
AutoCAD
2$3.5 billion $4,000 per workstation (HP Z820
workstation; 2 year depreciation)
Average salary of $60,000
20% general and administrative costs
TOTAL ANNUAL COST: $78,600
3$500 Divided by 2000 hours per year
million
TOTAL HOURLY COST: $40 per hour
Average Hourly Rate of Freelance CAD
Drafter:
$30 per hour
Source: Average of 5 interviews + 20
postings on oDesk / Craigslist
1 250,000 CAD drafters * 50 weeks * 40 hours * $10 per hour 2 70% of revenues from architecture / manufacturing 3 15% of part 2
7. Programming
Process Flow
Concept
Tools People Pain
Google SketchUp 1 Sr. Architect Converting sketch
Schematic Rhinoceros 2 Jr. Architects into 3D model
Revit ~1 Engineer
NavisWorks 2 - 3 Sr. Architect Integrating models
Design
Development Revit 2 - 6 Jr. Architects from each team
2 - 3 Engineers (Arch, Eng, Dsgn)
Revit 2 - 3 Sr. Architect Labor intensive to
Instruction
3 - 8 Jr. Architects add all specs
Documentation
3 - 4 Engineers
Construction
Sources: Perkins & Will, H.O.K. ~ 1500 employees
9. "You can't export
work Jr. Architects
do. That's what
makes them
architects!"
- Susan Ubbelohde,
Architect,
Consultant,
Professor
10. Google Doc Like Collaboration
CAD talent
*improved design
Typically
Conflict!
*Didn’t like it – Deleted Real time!
Architect -avoid multiple versions
-avoid overwriting each other
*Approved design! Expedited!
11. Existing Products
SaaS 3D modeling platform Universal file support
• Store and access files on the • 3D model viewing,
cloud measuring, sectioning
• Multi-party and remote • File sharing and sync
collaboration • Documentation of
• Documentation of collaboration process
collaboration process • Communication tools
• Secure infrastructure • Remote collaboration
Neither of these has been mentioned in our 50+ interviews
with architects!!
12. What We Did
• Went to UC Berkeley
School of Architecture to
recreate the problem
– In process, we recruited
our domain expert
• Built a landing page and
used web tests to
validate the value
proposition
– Team needed to build
something even if they
weren’t 100% sure what
they were building
13. Thought Leaders
Mario Guttman Eric Freed Phil Read Federico Negro Jim Balding
Developer of “World’s best “THE Revit Guru” Partner, Case ANT Group
arch+tech green architect” Design
products Industry Architecture
Syndicated in 33 Blogger/Author Blogger/Writer Conference
Leading BIM industry Organizer
Expert magazines Global product Prof.
manager Architecture Prominent
30+ years Speaks at 40+ AutoDesk Columbia Consultant
architect exp. conferences/yr
(Partner P+W)
14. Technology Adoption
Small
Engineering Firms Architecture
Firm A
Techie Architects
Domain Bloggers Small American
Design
Thought Leaders Consultants Architecture Institute
Groups
BIM Managers Firm B Architects
Sr. Architects
Small
Contractors Architecture
Firm C
Acquire Activate Keep Grow
16. Partner Diagram
Consultants
Subscription
Storage based on
Costs storage
3D PE Customer
Product
Transaction
Data
17. Conversion Funnel
From Twitter, Blogs of Thought
Leaders: 10,000
Observed Target
Conversion Conversion
Rates with Lo- Rates
Fi MVP
View Landing Page 17.5% 40%
Sign up for Free Trial 6.5% 20%
Become Paying Customers Not tested yet 20%
160 paying customer firms
19. Metrics that Matter
Metric Target Value
Total Reach 10,000 (initial)
Conversion to Landing Page 40%
Conversion to Sign Up 20%
Conversion to Paid 20%
Willingness to Pay $200
Gross Margin 65% (determined by WTP)
CAC $375
LTV $3,120
Retention Rate 80%
Breakeven Users 420 (depends on WTP)
20. Is this a viable business?
Quantitative reasons Qualitative reasons
Large Addressable market Positive Initial feedback
$400+ million from thought leaders in industry
Low Breakeven Opportunities in adjacent
420 paying customers out of markets
60,000 architecture firms in Structural engineering and
US design
CAC quickly covered Possible product extension
1 project opportunities
High margin
LTV ~ 8*CAC
21. Will we pursue this after the class?
• Need a High Fidelity MVP to test:
Reach into target market of TLs through Twitter/ blogs
Conversion rates
Willingness to pay
• None of us have technical skills to build the Hi Fi
MVP
SolutionSet offers to do it for $90,000
• At this point we have decided not to continue
with this business
24. Final Market Sizing
Trends supporting collaboration
1. Pressure to be cost competitive to compete
for tenders
• 59.2% of revenues are spent on wages
1$7 • ~10.0% of revenues is spent on equipment and software
billion • Firms are searching for ways to balance workloads,
reduce labor costs, and speed up production of projects
2. Increased use of technology
• Increasingly complex designs are requiring architects to
use advanced 3D modeling technologies
2$2.1 billion 3. Demand for more value-added services
• To combat declining margins, architectural firms are
adding services such as pre-design planning, interior
design, and engineering to become vertically integrated
4. Growing demand for environmentally
friendly design
3$420 5. Growing trend towards outsourcing by firms
million • 11% of firms have outsourced labor.
• Trend is more pronounced for firms with revenues >$5m
6. Low concentration in architecture industry
• 63% of firms in industry have less than 5 employees
• 4 largest firms account for less than 5% of total industry
revenues
7. High unemployment of licensed architects
• Per AIA, 105,596 licensed architects in US
• Per BLS, 71,460 architectural jobs in US; mean salary of
$79k
1 $9.8 billion Design Software industry (IBIS World) 2 105k licensed architects in US per 3 20% of part 2
x 70% revenues for AEC/CAD/Industrial Design AIA, 500k construction mgmt, 262k civil
engineers per BLS
25. Breakeven Analysis
Assumptions
• Willingness to pay is subject to further testing to assess demand curve.
• We sensitized our breakeven analysis at various price points and used our
40% / 20% / 20% conversion rate targets to get an idea of the necessary
size for the “top of the funnel”
• Total licensed architects in US = 105,596 per American Institute of
Architects
Price Paying Customers Top of Funnel
$200 420 26,250
$175 515 32,188
$150 680 42,500
$120 1,090 68,125
$100 1,800 112,500
26. Finance and Operations Timeline
$250k
-$90k
Cash -$30k
-$30k
Fundraise Hi-Fi MVP Test Beta Test Final Operational
Development
$150k
6 weeks 8 weeks 2 weeks 8 weeks 2 weeks 26 weeks
27. Burn Rate
• At pricing of $200, breakeven users is 420.
– We are assuming conversion rates of 40% / 20% / 20%
which will be tested during Hi-Fi MVP and Beta stages.
– For now, these conversion rates are hypotheses.
• At these conversion rates, we believe we can get this
number of paying users in 3 months.
– This takes into account our initial conversion funnel
– Assumes a retention rate of 80%.
• Our estimated monthly OpEx is $25,000 and gross
margins are 65%.
• Net cash burn is estimated at $10,000 through first
three months until breakeven.
28. Digital Manufacturing, Inc.
-Develop a
tailored solution -Facilitator
for each customer: between
coding, improving -Reduce downtime customer and 1- Fortune 1000
UI, developing of machinery; service persons
knowledge base manufacturing cost to implement app 2- Medium
Who are our Key savings & service Manufacturing
Partners? cost savings. Enterprises
Who are our key -Knowledge base; 3- Small
suppliers? -IP, Software prognostics (big Through which
Manufacturing
Platform: Opentok data) for real-time Channels do our
Enterprises
monitoring and Customer
-Cloud based signaling preventive Segments
4-Small Job
server maintenance. want to be
Shops
reached?
-Knowledge base
-IP development
-Webservices For what value are our customers really
willing to pay? How do we make money?
-Sales & Marketing
29. We will provide a A relation of trust,
Software service for identity from a service We create value
development, and info verification
First, we will start that works at all to every person
product promotion, via electronic
with the bars and times and is who has forgotten
and ID verification. means (i.e. mobile
clubs in the Bay highly secured. an important
phones).
area, until we paper/ does not
reach state and want to carry it
We help everyone
federal
who desperately
governments. Initial customers
need a paper
(Passport forgotten are people
Through an App
for an international entering a bar,
Experts in data store, site, and via
flight, driver license who have
No suppliers. security, lawyers, the person who
for police control, forgotten their ID
security/encryption requires the ID
ID card forgotten to or don’t want to
companies, ID (police, bouncer…)
get into a bar, etc.) bring it along.
verifiers.
Product development, marketing, investment People using the “verification” service pay
in machine/software for ID verification. per use until a threshold for transfer to a
subscription plan
