1. EB5
Investments
Trusted advisory service for foreign investors
to get a Greencard
Te a m 1 8 : Mu h s in Sh a h id , D a ve L in c o ln , A d a m
Nathu
Customers Discovered:
Day 1
+ 10
Day 2
+ 10
Day 3
+ 10
Day 4
+6
Total
= 36
3. Day 1 –
What we thought…
o IDEA:
Create an online marketplace to
connect foreign investors to EB-5
Investment Projects in the USA
o SOLVE:
Fragmented industry with lack of
transparency
TEAM 18: EB-5 INVESTMENTS
4. Key partners
Strategic
Alliances:
•
Lawyers
•
Developers
•
Business
seeking
financing
•
Coopetition Strategic
Partnerships
(from
competitors)
-EB5 Brokers
Value
proposition
Key activities
Platform / Network:
• Matchmaking –
stakeholders &
key partners
• Continuously
develop &
maintain platform
• Promotion of
website &
platform
Key resources
•
Intellectual
resources Partner
Relationships
Risk Reduction
• Transparency
• Better Analysis /
Tools for making
Investment
Decisions
Convenience &
Usability
• Centralization /
aggregation of a
fragmented
marketplace
• Accessibility /
Visibility
(Multiplatform)
Day 1
Focus on Cost-Driven Business Model
Customer Acquisition
Developing Partner relations
Developing/Maintaining Web portal
Self-service
• Trusted Broker
Personal Assistant
•
Trusted Advisor
Co-creation
•
Enable users to
rate & give
feedback on
counterparties
(lawyers,
developers)
Channels
•
•
•
•
Multi-sided
platform
• Foreign
Investors
• Business
seeking
financing
• EB5 Broker
• Lawyers
Internet
Trade
Advocacy
Groups
Partner
Relationships
Revenue streams
Cost structure
•
•
•
•
Customer
segments
Customer
relationships
•
•
•
•
Placement fees on investments (Brokerage) –
Fixed Pricing (% Investment)
Application fees (direct) – Dynamic Pricing
(Lawyers)
Subscription / Membership fee (lawyers)
Advertising / Service Directory fee (Projects)
5. Day 1 –
What we assessed...
oIs there any interest for our marketplace?
◦ Spoke to prospective investors
◦ Spoke to immigration lawyers
◦ Spoke to EB-5 regional centers
oWould you use our platform to select an
investment project?
oHow much would you pay for us to list your
investment project and get you an investor?
TEAM 18: EB-5 INVESTMENTS
6. Day 1 –
What we learned…
Hypothesis
Result
Takeaway
• Investors would prefer a
centralized listing of all projects
True
But quality / security of project
is more of a concern than
aggregation
• Businesses seeking financing
will want to advertise their
projects on our platform
True
They will pay a premium to
avoid having to deal with extra
agents and brokers
• Can we sell directly to EB5
Brokers
False
No real interest in coopetition
• Website is quickest way to reach
target HNW foreign investors
False
Developing foreign
partnerships is the quickest way
TEAM 18: EB-5 INVESTMENTS
7. Key partners
Strategic
Alliances:
•
Lawyers
•
Developers
•
Business
seeking
financing
•
Coopetition Strategic
Partnerships
(from
competitors)
-EB5 Brokers
Key activities
• Relationship
building
• Developing
platform
• Promotion of
platform
Key resources
•
•
Day 2
Partner
Relationships
Foreign
HNWI
network
Value
proposition
HNWI
foreigners:
• Risk
Reduction
• Convenience
• Transparency
Business seeking
financing:
• Access to
low-cost
capital
• Increased
visibility of
projects
Immigration
Lawyers:
• New client
business
•
•
Customer Acquisition
• Advertising – Adsense
• Presales services
Developing Partner relations
Developing Web Portal
• GET:
Trusted Broker
• KEEP:
Trusted Advisor
• GROW:
Referrals, Affiliate
Program
Channels
Website
Partnerships
•
Trade Advocacy
Groups
•
Schools /
Colleges
•
Foreign
Agencies
Customer
segments
HNWI foreigners
• $2million + Net
Worth
• Age 40-60
• Child studying in
the US
Business seeking
financing
• Regional Centers
• Real estate
Developers
Immigration Lawyers
EB5 Broker
Revenue streams
Cost structure
•
Customer
relationships
•
•
•
•
Placement fees on investments (Brokerage) –
Fixed Pricing (% Investment)
Application fees (direct) – Dynamic Pricing
(Lawyers)
Subscription / Membership fee (lawyers)
Advertising / Service Directory fee (Projects)
8. Day 2 –
What we assessed...
o How do we get, keep, and grow new
clients?
o How do we define our key partnerships?
o How do we define our revenue structure
in light of our new customer segments?
TEAM 18: EB-5 INVESTMENTS
9. Day 2 –
What we learned…
Hypothesis
Result
Takeaway
• Focusing on new foreign
partnerships will penetrate the
multiple layers in front of
foreign investors
True
Foreign lawyers, private
banks, trade advocacy
groups all are useful
channels to help get to
different foreign investors
• Focusing on businesses seeking
financing and charging them
more will be more profitable
True
Can make money on the
placement fees as well as
featured advertisement fees
TEAM 18: EB-5 INVESTMENTS
10. Day 3
Key partners
Value
proposition
Key activities
• Create Project Database
Strategic Alliances:
Customer
segments
Customer
relationships
Foreign Investors:
PRODUCT
-
MARKET
-
FIT
Foreign Investors:
GET: Direct Sales, Partnerships
• Develop Analysis Tool-pack
•
Risk Reduction
Real Estate
Developers
• Implement Investor Due
Diligence
•
Convenience –
1 stop shop
GROW: Referrals, Affiliates
•
Regional Centres
• Promotion of Platform
•
Legitimacy /
Transparency
GET: Direct Sales
•
Angel Investment
Groups
• Build “Key Partners”
•
•
•
Foreign Trade
Agencies
Schools/Colleges
Co-opetition:
•
Immigration Lawyers
Businesses Seeking
Finance:
•
•
•
IP – Partnership
Network (domestic)
Foreign Investor
Network
(international)
Access to Low Cost
Capital
Increased Visibility
of Projects
MVP:
Net Worth: $2-50M
•
Age: 27– 60
•
Origin:
Emerging Market
•
KEEP: Ongoing Relations
Key resources
•
•
KEEP: Trusted Advisor
Married / Family in
U.S.
GROW: Referrals
Businesses Seeking
Finance:
Channels
Website
•
• Foreign Lawyers & Agents
Real Estate
Investments
•
• Foreign Trade Agencies
Seek $5M+ funds
•
Partnerships:
Distressed Businesses
EB5 Brokers
Qualified Project Listings
• Private Banks
•
Project Comparative
Analysis Reports
• Chambers of Commerce
EB5 Brokers
•
•
•
Investor Due Diligence
• Angel Investment Groups
Immigration Lawyers
Revenue streams
Cost structure
Customer Acquisition:
•
Google Adsense
• Due diligence costs
on HNWIs & Projects
Recurring:
• Site Development &
Maintenance
• Development of Foreign
partnerships
Businesses Seeking
Finance:
Foreign Investors:
•
Free membership to
website
•
% Investment placement
•
Advertising – “Featured
Projects” fee
11. Day 3 –
What we assessed...
oWhat relationship exists between attorneys
and Regional Centers?
◦ Spoke to immigration lawyers
◦ Spoke to EB-5 regional centers
oWould attorneys use our platform to select
an investment project?
oWhat is the fee structure currently in place?
TEAM 18: EB-5 INVESTMENTS
12. Day 3 –
What we learned…
Hypothesis
Result
Takeaway
• Attorneys will source deals
through us
False
They earn more fees from
Regional Centers
• Our portal reduces risk and
increases transparency
True
Primary need for HNWIs
• Attorneys will align with us
False
We are viewed as their
competition
• We can earn more revenue via
both transaction and finders
fees
True
We can undercut attorneys and
brokers with lower fees
TEAM 18: EB-5 INVESTMENTS
13. Key
Activities
Key Partners
• Operate as a niche
Investment Advisor
Strategic
Alliances:
•
Private Banks
•
Chambers of
Commerce
Immigration
Lawyers
Risk Reduction
•
Convenience
•
Transparency
•
•
IP – Partnership
Network
(domestic)
•
Google AdSense
•
Lawyers & Advisors:
Due diligence costs
on HNWIs &
Projects
•
•
Net Worth:
$2-50M
•
Age: 27– 60
•
Origin:
Emerging Market
•
KEEP: Trusted Advisor
KEEP: Ongoing Relations
Married / Family
in U.S.
Businesses Seeking
Finance:
Channels
•
Increased Visibility
of Projects
• In person
Real Estate
Investments
•
• Web Portal
Seek $5M+ funds
•
Direct:
Access to Low Cost
Capital
Distressed
Businesses
MVP:
•
List of vetted clients
Revenue Streams
Cost Structure
•
Foreign Investors:
GET: Direct Sales
Businesses Seeking
Finance:
Foreign Investor
Network
(international)
Day 4
Customer Acquisition:
GET: Viral Loop,
Partnerships
GROW: Referrals
Key
Resources
Customer
Segments
Customer
Relationships
GROW: Referrals, Affiliates
• Build “Key Partners”
Co-opetition:
•
•
• Implement Investor
Due Diligence
Foreign Trade
Agencies
•
Foreign Investors:
• Create Database of
Investors & lawyers
Angel
Investment
Groups
•
Value
Proposition
Recurring:
• Registering as Broker-Dealer
•
Site Development &
Maintenance
•
Development of Foreign
partnerships
Businesses Seeking
Finance:
Foreign Investors:
•
Management &
Performance Fees
•
% Investment placement
•
Advertising – “Featured
EB5 Investments - fee 18
Projects” Team
TEAM 18: EB-5 INVESTMENTS
14. Day 4 –
What we assessed...
o How many channels are necessary?
o What partnerships are worthwhile?
o What are the underlying investor
concerns?
TEAM 18: EB-5 INVESTMENTS
15. Day 4 –
What we learned…
Hypothesis
Result
Takeaway
• Investors only care about lowest
capital investment
False
Investors valued capital
preservation over lowest
capital investment
• Regional centers is a great
business model to copy
False
Regional centers are not that
profitable and no real value
add from certification
• Investors are open to any
business investment type
False
Certain investors are not
interested in any arbitrary
business but would rather
use their funds to create
their own business
TEAM 18: EB-5 INVESTMENTS
16. Pivot:
o Focus on Direct Investments - $1MM
◦ Higher approval rate for greencard
◦ Higher return on investment for investors
o Focus on New Business Opportunities
o Offer Investment Advisory Services
◦ Sticky customer relationships
TEAM 18: EB-5 INVESTMENTS
17. Day 5
Key Partners
• Operate as a niche
Investment Advisor
Strategic
Alliances:
•
• Create Database of
Investors & lawyers
Angel
Investment
Groups
•
•
•
Transparency
Resources
•
Chambers of
Commerce
•
Co-opetition:
•
IP – Partnership
Network
(domestic)
Foreign Investor
Network
Attorneys
•
Google AdSense
•
Attorneys &
Advisors: Due
diligence costs
Recurring:
•
Compliance
•
Website
•
Foreign partnerships
•
Net Worth:
$2-50M
•
Age: 27– 60
•
Married / Family
in U.S.
GROW: Referrals
Channels
Direct:
Project Visibility
Businesses:
• Website
•
List of vetted
clients and projects
•
• In person
MVP:
Seek $5M+ funds
•
Real Estate
• Attorneys
•
Distressed
Businesses
Revenue Streams
Cost Structure
Customer Acquisition:
Chinese,
Korean, British
KEEP: Trusted Partner
Businesses:
•
•
GET: Direct Sales,
Conferences
Convenience
• Build “Key
Partners”
Foreign Investors:
KEEP: Trusted Advisor
GROW: Referrals, Affiliates
Risk
Reduction
•
Private Banks
•
•
Customer
Segments
GET: Referrals,
Partnerships
Foreign Investors:
• Due Diligence
Foreign Trade
Agencies
Customer
Relationships
Value
Proposition
Key Activities
•
Admin &
Management
Fees
•
Placement
Fees
EB5 Investments - Team 18
TEAM 18: EB-5 INVESTMENTS
18. Market Size
Total
Addressable
Market:
$8.5Bn
Served Market:
$3.25Bn
• Total Market = 10,000 EB5
visas p/a (3000 reserved for
Regional Centres)
• Served Market = Last year
6,517 applications received
THEREFORE significant unutilized
Capacity
Targeted Opportunity :
Opportunity:
$5.25Bn
• 1% of unutilized capacity +
served capacity @ $45,000 per
customer
= $3.15MM REVENUE
TEAM 18: EB-5 INVESTMENTS
20. Timeline:
4 Months – TARGET Close 8 Sales
3 Months – Strategic Management of
Projects, Talent Management, Continue Offline
Alliances
2 Months – Relationship building, Buy client list,
Work on Referrals
1 Month – Acquire licenses, Attend conferences, Develop
Blog, Promote Website + Services
Today – Finalise Current Deal 1, Find
Investor for 2nd project , Develop
Website, Secure Relations with
Foreign Lawyers & Agencies
TEAM 18: EB-5 INVESTMENTS
21. Key Takeaways:
Customer Development
•
•
•
•
Who are the right customers?
What is the right value proposition?
Which is the right revenue model?
GET OUT OF THE BUILDING!
Business Model Design
• It’s an iterative process.
• The Big Picture – There are patterns – We saw from class teams
presenting.
Team Dynamics
• It’s stressful! It’s hard work! It has it’s Ups and Downs!
• We Survived!
TEAM 18: EB-5 INVESTMENTS
22. Is this a viable business?
o We have signed up 2 business projects
o We have signed up 1 Foreign Investor
o More referrals coming
o YES! We will continue the search..
TEAM 18: EB-5 INVESTMENTS
