Event space e245 march 2014 final


Published on

Published in: Education
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Event space e245 march 2014 final

  1. We make corporate event planning easier Total customer interviews this quarter: 97 Customer interviews this week: 10 + 2 phone interviews Mentor interactions this week: 3, 0 Total mentor interactions: 15, 1 Surveys conducted: 1 Our team began as RoboTrip, an intelligent algorithm that would provide travel proposals based on user-defined constraints. Our Target Addressable Market was 60mm mobile travel researchers in US @ $1 Average Revenue Per User: $60mm.
  2. Aman Neelappa Ladha Background: Computer Science Expertise: Backend Development Role: Hacker Sophia Tsang Background: MS&E, Computer Science Expertise: Computer Networking, Mobile App Development Role: Designer Zoe Corneli Background: MBA Expertise: Media, Product Management Role: Hustler Saurabh Background: MS&E, Electronics Expertise: Product Management, Aerial Robotics Role: Product Picker
  3. A Many-Pivoted Journey • • • Started out as a summer project Spent winter working on a product that users didn’t want! Rapidly pivoted and iterated throughout class
  4. A Many-Pivoted Journey
  5. Business Model Canvas Week 1 Trip Planning
  6. Business Model Canvas Week 1
  7. Lessons Learned • • 15/17 interviewees not very excited about it Themes of trust & control o o • • “Having a prepared itinerary takes away the charm.” “I’m scared that I’ll miss out on something because your algorithm doesn’t know about it.” Planning vs. spur-of-the-moment decisions Discovery vs. execution needs of customers o “Discovery is fun, execution is painful. Why not do ‘Tinder for Travel’?”
  8. Lessons Learned • Top-of-funnel travel space is unappealing: crowded, traffic is expensive, low loyalty o • “At Priceline, we spend millions bringing back our own customers.” After exploring and invalidating another idea (data visualization of reviews), it was time for a restart. o One interviewee had mentioned trouble planning corporate events...bingo!
  9. Business Model Canvas Week 3 Corporate Event Venues
  10. Business Model Canvas Week 3 Corporate Event Venues
  11. MVP for Corporate Event Venues
  12. Lessons Learned • Office managers and executive assistants prefer NOT to use new venues because of: o o Familiarity - “People hate novelty. Everybody hates finding their way through a new hotel -- they want to know where the bathroom is going be.” Preferential treatment, i.e. discounts, etc.
  13. Lessons Learned • • • However, customers often search for novel activities & entertainment, which are fragmented and difficult to find This sparked our next idea, which we developed over the rest of the course We pivoted from corporate event venues to activities & entertainment
  14. Business Model Canvas Week 8 Corporate Event Activities
  15. Business Model Canvas Week 8
  16. Lessons Learned 30% YoY churn $5 CPC Know your customer maximize CTR! $500 CAC AdWords can be expensive Spend little until you know what’s working Viral coeff = 1.1 for 90 days due to Social Network feature
  17. Partner Diagram: Custom Merchandise Sellers Corporation Partner Relationship T-shirt, trophy, and swag makers +0.5% ($65k/$15M) API + addn. revenue Offer complete, onestop shop for booking activities and swag for activities Traffic + revenue +$500k Reimburses event payment or pays for Corporate Card Book and pay through website Provide custom products Promote EventSpace on partner sites (e.g. Zazzle.com) when activity-related merchandise is purchased there Office managers, executive assistants, employees
  18. Lessons Learned • Partnerships with eVenues & Big Frog are promising ways to get early-stage traffic o “I’m all for the idea of partnering. Certainly there is an • opportunity to add entertainment options for [eVenues] customers going through our checkout.” Realized the power of growth hacking
  19. Payments Flow Diagram Corporation Marketplace to find unique and fun activities Pay for Services Activity Providers 20% fee ~$320/event Legend Activity Payment Provide activity services Book and pay through website ~$1600/event Reimburses event payment or pays for Corporate Card Office managers, executive assistants, employees
  20. Lessons Learned • Revenue model is a challenge o o • Leads - No leakage but low adoption Bookings - High adoption but high leakage  Close integration needed Companies like eVenues and Travelnuts have grappled with similar problems
  21. Market size TAM: $8B is estimated market size for event planning industry in USA SAM: ~12% spent on entertainment/team building Target: Total spend on activities by companies in “top places to work for” in California TAM $8B SAM $0.96B Target $50M
  22. Final MVP Demo http://www.linkmyevent.com
  23. Investment Readiness Level We have completed: First-pass canvas Market size/competitive analysis Problem/solution validation Prototyped low-fidelity MVP But have not fully validated product/market fit, completed high-fidelity MVP, etc. IRL: 4 • • • •
  24. In Conclusion... • • We learned a lot, but are not moving forward with the business after class One of the biggest learnings was how important it is to be truly passionate about the idea you are working on
  25. Business Model Canvases
  26. Business Model Canvas - Week 1
  27. Business Model Canvas - Week 2
  28. Business Model Canvas - Week 3
  29. Business Model Canvas - Week 4
  30. Business Model Canvas - Week 5
  31. Business Model Canvas - Week 6
  32. Business Model Canvas - Week 7
  33. Business Model Canvas - Week 8
  34. Background Slides
  35. Key Metrics • • • • • • • Legend Tested Still Testing Not Enough Info Frequency of activities attended per employee (4-6 per year) Event spend budget allocated per employee (average of ~$80 per person for individual contributors) Average sales for individual activity provider (~100-200 events per year) Number of corporate end users (1 admin. assist. per 20 employees=group size) Churn rate Revenue leakage (users book directly with activity provider) Our employee salaries
  36. Get Keep Grow
  37. Market size TAM: $8B is estimated market size for event planning industry in USA SAM: ~12% spent on entertainment/team building Target: Total spend on activities by companies in “top places to work for” in California TAM $8B SAM $0.96B Target $50M
  38. Competitive Landscape EventSpace
  39. Metrics that Matter (Rough 3-year income statement)
  40. Insights from income statement • • • AdWords is expensive, but the unit economics still show a 30% gross margin Virality plays a huge role in reducing costs Given capital requirements and small market size this does not seem to be a venture backable company
  41. Financial operations timeline • • SAM is only ~1B i.e. not venture backable Target Angel Investors Capital Requirements Year 1 $80k Year 2 $750k Year 3 $500K
  42. Partners: Big Frog case study • • • • 20k executive assistants use big frog online every year 20K * 20% = 4k interested in activity 20% * 4k = 800 people come to our website the next time 80% * 4k = 3.2k book through Big Frog (we get 80% of Gross Margin)
  43. Partners - eVenues ● Interview with the CEO of eVenues ● Built database using a combination of scraping hotel websites and self-serve signups ● Monetize through both bookings and lead gen ● He validated our strategy of first providing leads and then asking vendors to onboard ● Also validated our target customer segment of lessexperienced office managers, not FT planners ● He was very interested in the idea of a partnership, as he is now hitting traffic targets and looking for “add-ons”
  44. Resources Resources Needed Human resources: 1 full-time developer 1 product designer/UI 1 partner/vendor engagement manager 1 business development manager Several content managers When we need this First few years After few years Advisory Board: Expertise in team building events planning and management Expertise in building two-sided markets 1st year First few years Financial: Salary for HR, customer acquisition costs, web server costs (AWS) All years Physical: Office space When HR grows to more than 10 people