INSEAD Building Businesses In Silicon Valley course presentation

1. Top
10
Trends
For
This
Decade
Sramana
Mitra,
Founder,
1M/1M

2. 5
Billion
people
on
the
Internet
by
2020

3. 30-­‐40%
cost
savings
experienced
by
early
adopters;
Intel
$650M
target
Huge
penetration
of
technology
into
SME
businesses
Massive,
global
entrepreneurial
opportunity
Opportunities:
Collaboration,
Infrastructure,
Analytics,
Vertical
Apps

4. Geographies
are
changing
• Latin
America,
Africa,
South
East
Asia,
Eastern
Europe,
China
Rising
• Second,
third
tier
cities
in
India
becoming
relevant
• Near-­‐shore
USA
• Huge
opportunity
for
global
development,
including
rural

5. Facebook:
750M+
|
Tencent:
600M+
|
LinkedIn:
115M+
Social
News,
Social
Games,
Social
Shopping
Specialized
Social
and
Professional
Networks
Enterprise
Social
Networks
Crowd
Sourced
Business
Apps
Mobile
Social

6. Niche
e-­‐commerce
Niche
community
Niche
content
apps
Vertical
search
Local
search
and
services
Location-­‐based
services
Personalization

7. Vision:
The
Contextualized
Web

8. Business
Models

9. Robust
monetization
numbers
Huge
movement
from
TV
and
print
over
to
online
Search
Advertising
is
massive
• PPC
and
SEO
–
great
customer
acquisition
strategies
• Display
–
Vertical
Ad
Networks,
Social
Media
-­‐
big
Interesting
innovations
in
monetization
models

10. Quiz:
Fastest
growing
company
in
the
history
of
business?

11. Notable
Trend:

12. Big
sites
leaving
money
on
the
table

13. Gap:

14. Zynga
–
one
of
the
fastest
growing
companies,
ever
• Riding
on
Facebook
Many
entrepreneurs
doing
niche
games,
also
Main
monetization
model:
Virtual
Goods
In-­‐game
advertising
gaining
ground
• as
a
monetization
model
• as
a
customer
acquisition
model

15. iPhone,
iPad:
Fastest
adoption
of
a
new
technology
in
recent
memory
Move
from
thin
client
to
rich
client:
Apps
Opportunities:
• Gaming
&
Entertainment
|
Media
|
Business
Apps
|
Education
|
Healthcare

16. Rise
of
tablet
as
a
media
consumption
device
=>
huge
uptick
in
online
video
consumption
Beneficiaries
• Netflix
|
Akamai
|
Finisar
|
Polycom
Opportunities:
Online
Video
Collaboration,
eLearning,
Entertainment,
Media
• Example:
Vivu

18. Finally
taking
off
in
the
Western
world
• Not
yet
everywhere
Disintermediation
• Opens
up
opportunities
for
authors
and
creative
types
to
work
directly
with
Amazon
and
Apple
to
build
franchises
Opportunity:
The
‘book’
experience
will
change
• Example:
Children’s
books,
Text
books
–
multi-­‐media
experience

20. Misconception

21. Truth:
Financing
is
optional

30. Fact:

31. 99%
Rejection
Rate

32. Reasons:

34. Worth
building,
especially
if
you
own
a
large
%

35. 90%
OWNER
OF
$5M
COMPANY
SOLD
FOR
$25M
5%
OWNER
OF
$25M
COMPANY
SOLD
FOR
$100M
$22.5m $5m

38. First
two
rounds:

42. Misconception

43. Truth:
Financing
is
optional

44. Entrepreneurs:

45. Scarce
resources

46. 1M/1M
mantra
of
lean
startups:

48. For
Inspiration,
Role
Models,
Case
Studies,
Lessons

51.  EJ1:
Inspiration
&
Overview
 EJ2:
Bootstrapping
 EJ3:
Positioning
 EJ4:
Innovation

52. Every
Thursday,
Online

53. For
$1000
annual
membership
fee

58. Core
Curriculum
+
Elective
Modules

62. One
Million
by
One
Million

63.  Silicon
Valley:
The
Next
Decade
 The
Next
European
Renaissance
 There’s
a
Trend
To
Spot
In
Groupon’s
Growth
 Capitalism
2.0