The document discusses key resources, cost structure, and financing for business models. It describes the four critical resources as physical, financial, human, and intellectual resources. It also outlines different types of physical and financial resources. The document then discusses cost structure and asks what key elements drive costs. Finally, it covers different sources of financing like banks, angels, venture capital, and the typical investment sizes, ownership stakes, and returns associated with each.

1. The Lean LaunchPad Session 7: Resources, Cost Structure, Financing Professors Steve Blank,Jon Feiber, Jim Hornthal, Oren Jacob https://sites.google.com/site/xmba296t / XMBA296T

2. images by JAM customer segments key partners cost structure revenue streams channels customer relationships key activities key resources value proposition

3. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?

4. OFFER Business Model Canvas KEY PARTNERS CHANNELS CUSTOMER RELATIONSHIPS CUSTOMER SEGMENTS REVENUE STREAMS COST STRUCTURE KEY ACTIVITIES KEY RESOURCES

5. Key Resources

15. MBA295F Customer Development in the High-Tech Enterprise Spring 2007

16. Executive Traits by Stage

17. Executive Traits by Stage

18. Executive Traits by Stage

19. Executive Traits by Stage

20. Intellectual Property

27. buzz group

28. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial?

30. buzz group

31. Venture Financing See: http://steveblank.com/tools-and-blogs-for-entrepreneurs

32. What are sources of funding? Banks Angels Super-Angels Micro-cap VC Traditional VC Size of Fund NA NA $5-20M $20-100M $100M+ Size of Investment NA $10-250k $100-500k $250k-1M $2M+ Source of Funds NA Personal Institutional Institutional Institutional Expected returns Interest rate 2-3x 2-3x 3-5x 3-5x Length of commitment Long term ASAP Depends 10 years 10 years Expected ownership NA <10% <15% 10-25% 25-50%

33. Know what you’re getting into...

34. 80 winners per year* out of 1,500 VC backed deals exit >$50M 80 1,420 PASS FAIL *IT industry only

35. ...The 80 that “Made It” >$750M 8 7 20 45 $500-$750M $250-$500M $50-$250M Legendary Companies

36. 2009 in Perspective IPO M&A 8 7 20 45

38. Decision Tree

39. Funding Mechanics

41. How to calculate dilution Step 1: Determine post money valuation Money invested Pre-Money Post-Money Value + Step 2: Determine investor ownership Money invested Post-Money Investor Ownership ÷ Step 3: Negotiate employee option pool Investor Ownership Option Pool DILUTION + Source: Founder’s Fund