1. Week 6: 13 Interviews (84 total):
10 large architecture firms
3 medium architecture firms
Spectrum
Brock Petersen
MS CEE ’15
Nick Hershey
BS CS ’18
Ryan Hammond
MBA ’15
FX Jammes
MBA ’15
John Basbagill
PhD CEE ’13
Automated building performance feedback
for early stage commercial design
Opportunity Size: $105MWeek 9: 11 Interviews (119 Total)
8 Architects
3 Engineers

2. Trends in Design/Construction
76%
Architecture firms’
use of BIM for billable work
has grown
Building Information
Modeling
41%
Green Building /
LEED
Green building starts as
% of all non-residential buildings
have increased
in 2005
2%
in 2012
64%
in 2005in 2012
* Figures from “2012 AIA Survey Report on Firm Characteristics”, American Institute of Architects

3. Spectrum Team
Brock Petersen
MS CEE ’15
Domain Expert
Nick Hershey
BS CS ’18
Hacker
Francois-Xavier Jammes
MBA ’15
Product Picker
Ryan Hammond
MBA ’15
Hustler
John Basbagill
PhD CEE ’13, Postdoc ’15
Designer
● Bachelor of science, Building construction, University of Florida
● Five years experience in construction management
● Master of engineering, Civil and environmental engineering, MIT
● Four years experience in engineering design and consulting
● Founded The NHS Network, networking website for National Honor
Society chapters
● Three years experience in web and mobile application development
● Bachelor of engineering, Civil engineering, Vanderbilt
● Two years experience in building energy analysis
● Bachelor of science, Mechanical engineering, Harvard
● Founded Spectrum based on PhD research in life cycle assessment
and computational methods applied to building design

4. Initial Concept
Failures
0
Successes
0

5. Failures
0
Successes
0Customer Segment
maximize returns by
reducing costs
“I have many other parts of a project other than
cost that I can adjust...to ensure feasibility.”
cost estimation is a
guessing game with slim
profit margins.
Week -1:
Developer
s
Week 0:
Contracto
rs
“I feel comfortable with cost estimation: the bigger
issue is finding qualified subcontractors who can
cut my margins enough”
gain greater insight into
the energy efficiency of
early stage designs
Week 1:
Engineers
“I’m often not included in the early stages of
design. I have more sophisticated ways to measure
energy efficiency anyway.”
realizing artistic vision
while meeting the
budgetary needs
Week 1:
Architects “This could be very helpful!”
Failures
1
Failures
2
Failures
3
Successes
1
Week 2:
Large
Firms
use BIM and use
additional software
“We’ll buy when you’re ready!”
Failures
4

6. Characteristics
1. Tech savvy: use of Building Information Modeling (BIM) sof
2. Sustainably minded
3. Negotiated contracts
4. Focus on owner occupied commercial construction
5. U.S.based
0+) architecture firms
Customer Archetype
Failures
0
Successes
0
Failures
1
Failures
2
Failures
3
Successes
1
Failures
4

7. Users
Influencers
Decision
Makers
CEO
CFOPartners IT Manager
Principals
Project
Managers
Project
Architects
Jr/Sr
Architects
Jr/Sr
Designers
Recommenders Tech-savvy, In-house
Architects/Designers
Saboteurs Engineers, Cost Estimators,
In-house Developers
Firm Organization
Failures
0
Successes
0
Failures
1
Failures
2
Failures
3
Successes
1
Failures
4

8. 106,000 U.S. architects
59% (63,000)
in large firms
50% (31,500)
users
15%
(4,725)
capture
Market Size
● 4,725 architects
● $5,000 = price/year/seat
● 4,725 x $5,000 = $24M
Failures
0
Successes
0
Failures
1
Failures
2
Failures
4
Successes
1
Failures
5

9. Failures
7
Successes
2Low-Fidelity MVP
Failures
8
Failures
8
Successes
3
PowerPoint

10. Failures
5
Successes
1Value Proposition
we reduce the number of
design cycles by aligning
architect-owner views
“Repeated discussion with owners leads to a design that
more accurately meets their needs”
we provide real-time
feedback to help architects
design more efficiently
Week 2:
Iterations
Week 3:
Feedback
“Real-time feedback would interfere with my natural
workflow. I’m also worried it would hinder creativity.”
Week 3:
Budgets
“Working toward a budget is part of the process because
facets of the design process constantly change.”
we would prevent rework
by providing more
information earlier on
Week 5:
Rework
“Rework accounts for 10% of an architect’s time a
budget.”
Failures
6
Failures
7
Failures
8
Successes
2
budgets constrain artistic
vision. we provide
budgetary leeway

11. Failures
4
Successes
1Product-Market Fit
Failures
5
Failures
6
Failures
8
Successes
2
“Rework typically accounts for 10% of our time and budget.”
Mark Smedley
Perkins Eastman
Mark Herman
Cannon Design
Lloyd Ramsey
DLR Group
Charlie Williams
LPA
Kat Park
SOM

12. Market Size
$105M
Failures
0
Successes
2
Failures
1
Failures
2
Failures
3
Successes
3
Failures
8
$2.8 Billion
10% Rework
$350 Billion Commercial
Construction Cost (US/Yr)
$28 Billion
8% Architect Fee
$700 Million
25% Large Architects
$105 Million
15% Captured

13. value-added resellers are
an effective channel
Aside from AutoDesk, most architectural software
providers do not sell through VARs.
although cost-inefficient,
direct sales are the best
channel
Week 4:
VARs
Week 4:
Direct
Sales
The majority of architectural software providers
use a direct sales force.
we hoped to innovate in
the space by leveraging
the web for leads
Week 5:
Online
Given our relatively small initial market (~1000 architecture
firms). We can directly pinpoint the firms we want to target
and who in those firms makes decisions.
Failures
8
Successes
3Channels
Failures
9
Failures
10
Successes
4

14. BuildSpectrum.com
Users 74
Emails 4
Conversion 5.41%
Users 58
Emails 4
Conversion 6.90%
Users 66
Emails 6
Conversion 9.09%
Sustainability Operational Costs Materials Costs
Failures
7
Successes
2Channels
Failures
8
Failures
10
Successes
4

15. Failures
10
Successes
4Customer Relations
Webinars, trade shows,
conferences, industry
events, demos
Support and updates will
be our primary way of
keeping customers
Week 5:
GET:
Various
Week 5:
KEEP:
Support
Referrals will be a key
growth mechanism
Week 5:
GROW:
Refer
All of this information was confirmed.
Successes
5

16. Failures
10
Successes
3Customer Relations
Successes
5
Keep
Product Updates
Dedicated Support
Get
1. Awareness
- Trade shows
- Website
- Social Media
2. Consideration
- Webinar
3. Consideration
- Demo/Trial
4. Purchase
- Direct (Inside) Sales
Force
Grow
1. Unbundle
- Separate cost and
environmental
estimation
2. Cross-Sell
- Sell along with BIM
software
3. Referrals

17. Failures
10
Successes
5Revenue
$5000 per seat per year
We heard mixed reactions to price, but
$5000/seat/year seems to be a reasonable price
$50-$100/month for service
Week 6:
SaaS
Week 6:
Service
Increasingly often, service is included in SaaS
models, so we will probably have to include it.
Failures
11
Successes
6

18. Successes
6
Successes
7
Successes
8
Successes
9
Failures
11Left Canvas
Resource: Project data
Partner: Developers and
industry partners
Obvious software development is needed for a SaaS
business. To build the software, we need project data.
Week 8:
Software
Dev
Week 8:
Customer
Dev
Resource: Webinar
Partner: SOM Architects
Week 8:
Marketin
g
Webinars are a perfect platform to disseminate information
on a new product, and SOM offered us a spot.
Resource: $500k
Partner: Grant agencies
Week 8:
Fundraisi
ng
We should not raise $500k at this point. It is much smarter
to raise less and build something small
Failures
12
Customer development critical at ALL stages.
Resource: MVP feedback
Partner: Industry partners

19. Gensler
30+ large architecture firms, including:
Failures
10
Successes
5Partners
Failures
11
Failures
12
Successes
6
Successes
9

20. Final BMC
Failures
12
Successes
9
Revenue Streams
Subscription SaaS
-Pay Per Project (Small/Medium Firms)
-Pay Per Seat (Large/Very Large Firms)
Service (Customer Support) fees
Consulting
Selling Data for Market Research
Key Partners
Data:
-Architects
-Cost Estimators
-Contractors (DPR)
Industry Partners:
-Architects (SOM)
Software Development
-BIM Platforms (Rhino)
-Co-creation Team
-Stanford Grad Students
Marketing
-Architects (SOM)
-BIM Platforms (Rhino)
Key Activities
Obtaining/updating data
Software Development
Customer Development
Designing UI/UX
Fundraising
Customer Relationships
Get:
- Direct Sales
- Webinars
- Online Advertising
- Trade Shows/Conferences
Keep:
- Service and support
- Expanded product offering
Grow:
- Network effects
Key Resources
Advanced Payments
Webinar Platform
$500K seed funding
Cost Data and BIM Models
Channels
Web
Direct Sales
VARs
Customer
Segments
Project
Architects/Project
Managers employed by
Architecture Firms
-Medium/large (50+)
-Commercial project
Firms
-CAD proficient
Value Proposition
PA/PMs:
-Data gives confidence in
meetings with clients
-Prevent costly rework
-Facilitate higher quality
design
Principals:
-Enhance firm brand and
can upsell
Feature:
Reliable local costing
Cost Structure
Salaries- 3 Founders, 4 Product Engineers,
1 PR/Marketing
Product-Servers, Data Licensing, Support, Advertising
Overhead-Rent, Utilities, Equipment/Software,
Conferences and PR, Other Expenses

21. Failures
7
Successes
2High-Fidelity MVP
Failures
8
Failures
12
Successes
9
adapt.tech.cornell.edu

22. 2015 2016 2017 2018 2019
Testing
Product
Revenue
IP
Hiring
Lead
Developer
Developers x10 Developers x20 Developers x40 Developers x80
Sales & support x10 Sales & support x20 Sales & support x40 Sales & support x80
Partnerships
Fundraising $500K seed $1.5M Series A $3M Series B
Marketing partners
Initial licenses x750
Co-creation team
Data partners
Patents: rule sets,
visualization methods
Develop beta version Develop V1.0 Develop V2.0
Beta testing Testing V2.0Testing V1.0
Develop V3.0
Testing V3.0
Develop V4.0
Testing V4.0
Licenses x1,500 Licenses x3,000 Licenses x6,000
Profitability
Failures
7
Successes
2
Business Strategy
Timeline
Failures
8
Failures
12
Successes
9
Webinar

23. This week Fundraising: 7 grants, competitions, VC pitches
May 1 White paper: data visualization methods
This week Recruiting software developers
Ongoing Additional interviews with high-fidelity MVP
Failures
7
Successes
2Next Steps
Failures
8
Failures
12
Successes
9
June 1 Initial prototype completed

24. Questions?

25. High
Conceptual
Design
Construction
Documents
Design
Development
Construction
Administration
Bidding
LEVEL OF COST
UNDERSTANDING
project
goals set
initial design
selected
Current design process
Spectrum
initial design
completed
Low
REWORKUNINFORMED
DECISION-MAKING
COST ESTIMATION
CD complete CD complete
COST FEEDBACK
10% TIME
SAVINGS
DESIGN PHASE
within 21%
of actual costs
$2.8B
ANNUALLY
design refined
Quantifying our VP
Failures
12
Successes
9

26. Failures
10
Successes
5
Failures
11
Failures
12
Successes
6
Successes
8
In most classes,
failing 50% more often than succeeding = F and
In Lean LaunchPad,
failing 50% more often than succeeding = A
and

27. Current Design Process
Architect
refines design
Budget exceeded
• architect wastes time
reworking design
• owner and architect pay
rework fees
Architect refines
design to meet budget
Conceptual
Design
Construction
Documents
Design
Development
Construction
Administration
Bidding
Pre-
Design
Architect and
owner select
design scheme
Building owner
defines budget
and project
objectives
Cost estimator
performs first
and subsequent
cost analyses

28. Building owner
defines budget
and project
objectives
Architect and
owner select
design scheme
Architect
iteratively
refines design
with cost
guidance from
Spectrum
Cost estimator
performs
subsequent
cost analyses
Budget Met
• architect saves time
reworking design
• owner and architect save on
rework fees
Conceptual
Design
Construction
Documents
Design
Development
Construction
Administration
Bidding
Pre-
Design
Spectrum Design Process
Spectrum

29. Sample Project
Quantifying our Value Proposition
Schematic
Design
Construction
Documents
Current Fee Allocation Scheme
Construction cost = $50M
Architect’s Fee (as percent of construction cost): 8% = $4M
Revised Fee Allocation Scheme
15% = $600K
(3.6 months)
Cost /
Duration
20% = $800K
(4.8 months)
Design
Development
35% = $1.4M
(8.4 months)
Construction
Administration
Bidding
5% = $200K
(1.2 months)
25% = $1M
(6 months)
Design
Phase
Project duration = 2 years
Schematic
Design
Construction
Documents
15% = $600K
(3.6 months)
Cost /
Duration
20% = $800K
(4.8 months)
Design
Development
25% = $1M
(6 months)
Construction
Administration
Bidding
5% = $200K
(1.2 months)
25% = $1M
(6 months)
Design
Phase
Spectrum
SAVINGS
10% = $400K
(2.4 months)
Interview source: Mark Smedley, Perkins Eastman Architects, February 11, 2015

30. Financial Timeline

31. The Rook
Breaking Bread
LoveTap
● FREE
● Drove 190 unique users
● All self-identify as architects
● Conversion rates:
○ 5.4%, 6.9%, 9.1%
Failures
7
Successes
2Channels
Failures
8
Failures
10
Successes
4

32. Gain Creators
Pain Relievers
Features
Gains
Pains
1. Facilitate data driven
conversations
2. Transparent costs:
facilitates budget/design
vision balancing
3. Rapid design iteration
feedback: improves client
relationship
1. Rapid design option
generation: shortens
design cycle time
2. Capturing parametric
relationships: improves
owner architect
communication
3. Transparent cost
estimation: facilitates
balancing of budget
1. Immediate
cost/carbon
feedback
2. Many design
comparisons
3. Benchmarking
1. Achieve faster feedback
time on design options
2. More efficiently manage
budget
3. Expand design
possibilities
4. Obtain more
client work
1. Delayed feedback
2. Communicate poorly
3. Balancing budget and
design vision
1. Realize client’s
vision
2. Achieve artistic
vision
3. Design code-
compliant
buildings
Failures
4
Successes
1Product-Market Fit
Failures
5
Failures
6
Failures
7
Successes
2

33. Failures
4
Successes
1MVP
“Repeated discussion with owners leads to a design that
more accurately meets their needs”
we provide real-time
feedback to help architects
design more efficiently
1) Iterations
2) Feedback
“Real-time feedback would interfere with my natural
workflow. I’m also worried it would hinder creativity.”
budgets constrain artistic
vision3) Budgets “Working toward a budget is part of the process because
facets of the design process constantly change.”
we would prevent rework
by providing more
information earlier on
4) Rework “This would save 10% of my costs!”
Failures
5
Failures
6
Failures
7
Successes
2
we reduce the number of
design cycles by aligning
architect-owner views

34. Business as
Usual
Spectrum
Design Feedback
FeedbackDesign
Intuition
Engineers
Contractors/
Cost estimators
Failures
4
Successes
1Industry Gap
Failures
5
Failures
6
Failures
7
Successes
2

35. Additional Slides

36. Market Trends
Technology
Data Availability Sustainability

37. Technology Sustainability
Shared Data Informed
Decision-Making
Spectrum
Market Trends

38. Gain Creators
Pain Relievers
Features
Gains
Pains
1. Prevent rework
2. Transparent costs:
facilitates budget/design
vision balancing
3. Rapid design iteration
feedback: improves client
relationship
1. Rapid design option
generation: shortens
design cycle time
2. Capturing parametric
relationships: improves
owner architect
communication
3. Transparent cost
estimation: facilitates
balancing of budget
1. Cost/carbon
feedback
2. Many design
comparisons
3. Benchmarking
1. Achieve faster feedback
time on design options
2. More efficiently manage
budget
3. Expand design
possibiltiies
4. Obtain more client work
1. Delayed feedback
2. Communicate poorly
3. Balanceing budget
and design vision
1. Realize client’s
vision
2. Achieve artistic
vision
3. Design code-
compliant
buildings
Failures
4
Successes
1Product-Market Fit
Failures
5
Failures
6
Failures
7
Successes
2

39. Gain Creators
Pain Relievers
Features
Gains
Pains
1. Decrease design cycle
2. Transparent costs
3. Improve design
1. Prevent rework
2. Visualize parametric
relationships
3. Transparent cost
estimation
1. Cost feedback
2. Design
comparisons
3. Visualization
1. Efficient design process
2. More efficiently manage
budget
3. Expand design
possibilities
4. Obtain more client work
1. Limited feedback in
conceptual design
2. Efficiently creating
owner’s vision
3. Balancing budget and
design vision
1. Realize client’s
vision
2. Design within
owner’s budget
3. Design code-
compliant
buildings
Failures
4
Successes
1Product-Market Fit
Failures
5
Failures
6
Failures
8
Successes
2

40. Original Hypotheses
Failures
0
Successes
0
- The World – market/opportunity, how does it operate
- The Characters – customers/value proposition/ product-market fit, pick a few examples to illustrate
- Narrative Arc – lessons learned how? Enthusiasm, despair, learning then insight
o Quotes from customers “we loved it” or “stupid idea”
- Show us – images and demo to illustrate learning = diagrams, wireframes & pivots to finished product)
- Editing – does each slide advance the learning
Theater
- Point me at what you want me to see
- Ought to be self-explanatory
- Use analogies

41. 30+ large architecture firms, including:
Failures
10
Successes
5Partners
Failures
11
Failures
12
Successes
6
Successes
7

43. Failures
0
Successes
0Initial Concept
MARCH APRIL
Enhance Communication
Reduce Design Cycle Time