Download - True ventures 072011
![Page 1: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/1.jpg)
Welcome to Customer Development
Stanford - School of Engineering
U.C. Berkeley - Haas School Of Business
www.steveblank.comTwitter: sgblank
Slides at: slideshare.net/sblank
Steve Blank
![Page 2: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/2.jpg)
I Write a Blog www.steveblank.com
![Page 3: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/3.jpg)
I Drew This
CustomerDiscovery
CustomerValidation
Company Building
Customer Creation
Pivot
![Page 4: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/4.jpg)
I Called It:
Customer Development
CustomerDiscovery
CustomerValidation
Company Building
Customer Creation
Pivot
![Page 5: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/5.jpg)
This Talk is Based On• Business Model Generation• Four Steps to the Epiphany
• Lean Startup
![Page 6: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/6.jpg)
ScalableStartup
Large Company
- Business Model found- i.e. Product/Market fit- Repeatable sales model- Managers hired
What’s A Startup?
A Startup is a temporary organization used to search for a repeatable and scalable business model
Search Execute
![Page 7: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/7.jpg)
ScalableStartup
Large CompanyTransition
- Founders depart- Professional Mgmt- Process- Beginning of scale
The Memo You Never GetThe Transition – Founders Leave
BuildSearch Execute
![Page 8: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/8.jpg)
ScalableStartup
Large CompanyTransition
Business Model found by founders- customer needs/product features found i.e. Product/Market fit- Repeatable sales model- Managers hired
The Search for the Business Model
Startups Search and Pivot
![Page 9: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/9.jpg)
ScalableStartup
Large CompanyTransition
- Business Model found- Product/Market fit- Repeatable sales model- Managers hired
- Cash-flow breakeven- Profitable- Rapid scale- New Senior Mgmt~ 150 people
The Search for the Business Model The Execution of the Business Model
Startups Search, Companies Execute
![Page 10: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/10.jpg)
ScalableStartup
LargeCompanyTransition
Traditional Accounting- Balance Sheet- Cash Flow Statement- Income Statement
The Execution of the Business Model
Metrics Versus Accounting
![Page 11: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/11.jpg)
ScalableStartup
LargeCompanyTransition
Startup Metrics- Customer Acquisition Cost- Viral coefficient- Customer Lifetime Value- Average Selling Price/Order Size- Monthly burn rate- etc.
Traditional Accounting- Balance Sheet- Cash Flow Statement- Income Statement
The Search for the Business Model The Execution of the Business Model
Metrics Versus Accounting
![Page 12: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/12.jpg)
ScalableStartup
LargeCompanyTransition
Sales- Sales Organization- Scalable- Price List/Data Sheets- Revenue Plan
The Execution of the Business Model
Customer Validation Versus Sales
![Page 13: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/13.jpg)
ScalableStartup
LargeCompanyTransition
Customer Validation- Early Adopters- Pricing/Feature unstable- Not yet repeatable- “One-off’s”
Sales- Sales Organization- Scalable- Price List/Data Sheets- Revenue Plan
The Search for the Business Model The Execution of the Business Model
Customer Validation Versus Sales
![Page 14: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/14.jpg)
ScalableStartup
Large CompanyTransition
The Execution of the Business Model
Engineering Versus Agile Development
Engineering- Requirements Docs.- Waterfall Development- QA - Tech Pubs
![Page 15: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/15.jpg)
ScalableStartup
Large CompanyTransition
Agile Development- Continuous Deployment- Continuous Learning- Self Organizing Teams- Minimum Feature Set- Pivots
The Search for the Business Model The Execution of the Business Model
Engineering Versus Agile Development
Engineering- Requirements Docs.- Waterfall Development- QA - Tech Pubs
![Page 16: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/16.jpg)
ScalableStartup
Large CompanyTransition
Business Plan- describes “knowns”- features- customers/markets- business model
The Execution of the Business Model
Startups Model, Companies Plan
![Page 17: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/17.jpg)
ScalableStartup
Large CompanyTransition
- Business Model- describes “unknowns”- customer needs- feature set- business model- found by iteration
The Search for the Business Model
Startups Model, Companies Plan
The Execution of the Business Model
- Plan describes “knowns”- Known features for line extensions- Known customers/markets- Known business model
![Page 18: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/18.jpg)
How Do Startups Search For A Business Model?
• The Search is Customer Development• The Implementation is Agile Development• The Sum is the Lean Startup
![Page 19: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/19.jpg)
Customer Development
![Page 20: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/20.jpg)
I Have a Vision
![Page 21: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/21.jpg)
I Know What Needs to Be Done
![Page 22: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/22.jpg)
Lets Launch a New Product!
![Page 23: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/23.jpg)
Five Ways Founders Fail
![Page 24: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/24.jpg)
#1 I Know Who The Customer Is
![Page 25: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/25.jpg)
#2I Know Exactly the Product They Need
![Page 26: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/26.jpg)
#3I Know the Problem They Have
![Page 27: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/27.jpg)
#4We Can Fix It After We Ship It All
![Page 28: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/28.jpg)
#5All I Need to Do is Execute the Plan
![Page 29: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/29.jpg)
Product Introduction Model
Concept/Seed
Round
Product Dev.
Alpha/Beta Test
Launch/1st Ship
![Page 30: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/30.jpg)
Product Introduction Model
Concept/Seed
Round
Product Dev.
Alpha/Beta Test
Launch/1st Ship
The Leading Cause of Startup Death
![Page 31: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/31.jpg)
Product Introduction Model:Two Implicit Assumptions
Customer Problem: known
Product Features: known
Concept/Seed
Round
Product Dev.
Alpha/Beta Test
Launch/1st Ship
![Page 32: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/32.jpg)
Tradition – Hire Marketing
Concept/Seed
Round
Product Dev.
Alpha/Beta Test
Launch/1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- “Branding”
Marketing
![Page 33: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/33.jpg)
Tradition – Hire Sales
Concept/Seed
Round
Product Dev.
Alpha/Beta Test
Launch/1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- “Branding”
• Build Sales Organization
Marketing
Sales• Hire Sales VP• Hire 1st Sales
Staff
![Page 34: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/34.jpg)
Tradition – Hire Bus Development
Concept Product Dev.
Alpha/Beta Test
Launch/1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- “Branding”
• Hire Sales VP• Pick distribution
Channel
• Build Sales Channel / Distribution
Marketing
Sales
• Hire First Bus Dev
• Do deals for FCS
Business Development
![Page 35: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/35.jpg)
Tradition – Hire Engineering
Concept Product Dev.
Alpha/Beta Test
Launch/1st Ship
- Create Marcom Materials- Create Positioning
- Hire PR Agency- Early Buzz
- Create Demand- Launch Event- “Branding”
• Hire Sales VP• Pick distribution
Channel
• Build Sales Channel / Distribution
Marketing
Sales
• Hire First Bus Dev
• Do deals for FCS
Business Development
Engineering • Write MRD
• Waterfall
• Q/A • Tech Pubs
![Page 36: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/36.jpg)
No Business Plan survives first contact with customers
![Page 37: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/37.jpg)
Startups Are Not Smaller Versions of Large Companies
![Page 38: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/38.jpg)
Startups Are Not Smaller Versions of Large Companies
Large Companies Execute Known Business Models
![Page 39: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/39.jpg)
Startups Are Not Smaller Versions of Large Companies
Startups Search for Unknown Business Models
![Page 40: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/40.jpg)
So Search for a Business Model
![Page 41: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/41.jpg)
The Business Model:
Any company can be described in 9 building blocks
![Page 42: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/42.jpg)
CUSTOMER SEGMENTS
which customers and users are you serving? which jobs do they really want to get done?
![Page 43: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/43.jpg)
VALUE PROPOSITIONS
what are you offering them? what is that getting done for them? do they care?
![Page 44: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/44.jpg)
CHANNELS
how does each customer segment want to be reached? through which interaction points?
![Page 45: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/45.jpg)
CUSTOMER RELATIONSHIPS
what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?
![Page 46: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/46.jpg)
REVENUE STREAMS
what are customers really willing to pay for? how? are you generating transactional or recurring
revenues?
![Page 47: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/47.jpg)
KEY RESOURCES
which resources underpin your business model? which assets are essential?
![Page 48: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/48.jpg)
48
KEY ACTIVITIES
which activities do you need to perform well in your business model? what is crucial?
![Page 49: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/49.jpg)
KEY PARTNERS
which partners and suppliers leverage your model?
who do you need to rely on?
![Page 50: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/50.jpg)
COST STRUCTURE
what is the resulting cost structure? which key elements drive your costs?
![Page 51: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/51.jpg)
51images by JAM
customer segments
key partners
cost structure
revenue streams
channels
customer relationships
key activities
key resources
value proposition
![Page 52: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/52.jpg)
sketch out your business model
![Page 53: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/53.jpg)
sketch out your business models
![Page 54: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/54.jpg)
But,Realize They’re Hypotheses
![Page 55: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/55.jpg)
9 Guesses
Guess Guess
Guess
Guess
GuessGuess
Guess
GuessGuess
![Page 56: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/56.jpg)
Customer Development
Get Out of the BuildingThe founders
^
![Page 57: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/57.jpg)
Customer DevelopmentThe Search For the Business Model
CompanyBuilding
Customer
Discovery
Customer
Validation
Customer Creation
Pivot
![Page 58: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/58.jpg)
• Stop selling, start listening• Test your hypotheses• Continuous Discovery• Done by founders
Customer Discovery
CustomerDiscovery
CustomerValidation
CompanyBuilding
CustomerCreation
![Page 59: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/59.jpg)
Test Hypotheses:• Product• Market Type• Competition
Turning Hypotheses to Facts
![Page 60: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/60.jpg)
Test Hypotheses:• Problem• Customer• User• Payer
![Page 61: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/61.jpg)
Test Hypotheses:• Channel
![Page 62: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/62.jpg)
Test Hypotheses:• Problem• Customer• User• Payer
Test Hypotheses:• Demand
Creation
Test Hypotheses:• Channel
Test Hypotheses:• Product• Market Type• Competitive
Test Hypotheses:• Pricing Model / Pricing
Test Hypotheses:• Size of Opportunity/Market• Validate Business Model
Test Hypotheses:• Channel• (Customer)• (Problem)
![Page 63: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/63.jpg)
Test Hypotheses:• Problem• Customer• User• Payer
Test Hypotheses:• Demand
Creation
Test Hypotheses:• Channel
Test Hypotheses:• Product• Market Type• Competitive
Test Hypotheses:• Pricing Model / Pricing
Test Hypotheses:• Size of Opportunity/Market• Validate Business Model
Test Hypotheses:• Channel• (Customer)• (Problem) Customer
Development Team
Agile Development
![Page 64: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/64.jpg)
The Minimum Viable Product (MVP)
• Smallest feature set that gets you the most …
- orders, learning, feedback, failure…
![Page 65: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/65.jpg)
The Pivot
• The heart of Customer Development
• Iteration without crisis
• Fast, agile and opportunistic
![Page 66: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/66.jpg)
Pivot Cycle Time Matters
• Speed of cycle minimizes cash needs
• Minimum feature set speeds up cycle time
• Near instantaneous customer feedback drives feature set
![Page 67: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/67.jpg)
The Pivot
A Pivot is the change of one or more Business Model Canvas Components
![Page 68: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/68.jpg)
The Pivot
A Pivot is the change of one or more Business Model Canvas Components
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
![Page 69: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/69.jpg)
How Does This Really Work?
Stanford Lean LaunchPad Class
![Page 70: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/70.jpg)
How Does This Really Work?
Stanford Lean LaunchPad Class
8 Weeks From an Idea to a Business
![Page 71: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/71.jpg)
Pivot ExampleRobotic Weeding
Talked 75 Customers in 8 Weeks
![Page 72: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/72.jpg)
Our initial plan
Confidential
![Page 73: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/73.jpg)
20 interviews, 6 site visits…We got OUR Boots dirty
WeedingVisited two farms in Salinas Valley to better understand problem
Interviewed:• Bolthouse Farms, Large Agri-Industry in Bakersfield• White Farms, Large Peanut farmer in Georgia• REFCO Farms, large grower in Salinas Valley• Rincon Farms, large grower in Salinas Valley• Small Organic Corn/Soy grower in Nebraska• Heirloom Organics, small owner/operator, Santa Cruz Mts• Two small organic farmers at farmers market• Ag Services of Salinas, Fertilizer applicator
MowingInterviewed:• Golf: Stanford Golf course • Parks: Stanford Grounds Supervisor, head of maintenance and
lead operator (has crew of 6)• Toro dealer (large mower manufacturer) • User of back-yard mowing system• Maintenance Services for City of Los Altos• Colony Landscaping (Mowing service for stadiums)
![Page 74: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/74.jpg)
Business Plan Autonomous Vehicles for Mowing & Weeding
We reduce operating cost- Labor reduction- Better utilization of assets (eg mow or weed at nights)- Improved performance (less rework, food safety)
Mowing- Owners of public or commercially used green spaces (e.g. golf courses)- Landscaping service provider
Weeding- Farmers with manual weeding operations
Dealers sell, installs and supports customer
Co. trains dealers, supports dealers
- Mowing Dealers- Ag Dealers
- Innovation- Customer Education- Dealer training
Dealer discount COGS seek a 50-60% Gross MarginHeavy R&D investment
- Dealers (Mowing and Ag)- Vehicle OEMs (John Deere, Toro, Jacobsen, etc)
- Research labs
Asset saleOur revenue stream derives from selling the equipment
Engineers on Autonomous vehicles, GPS, path-planning
![Page 75: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/75.jpg)
Found weeding in organic crops is HUGE problem; 50 - 75% of costs
Crews of 100s-1000
Back-breaking task
(Ilegal) labor harder to get
1-5 weedings per year/field
$250-3,500 per acre and increasing
Food contamination risk
![Page 76: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/76.jpg)
Decision to make – mowing vs weeding
Application If ROI is < 1 yr they will
buy
Labor costs significant?
Autonomous would solve
problem?
TAM
Mowing of large fields
Yes.Professionally
run organizations
Yes Yes Adjusted up toxxx
Weeding in Agriculture
Agri Industry: YES!
Large Growers: Yes
Small Growers: No
YES! for organic crops
They are spending $500/ac!
Not necessarily
Key need is weed vs. crop differentiation
TAM increased to $2.6 B (Total
organic)
Target Market (organic
specialty) 162 M/yr
18%/yr growth
![Page 77: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/77.jpg)
Autonomous vehicles WEEDING
We reduce operating cost- Labor reduction (100 to 1)- Reduced risk of contamination- Mitigate labor availability concerns
- Low density vegetable growers- High density vegetable growers- Thinning operations- Conventional vegetables
Dealers sell, installs and supports customer
Co. trains dealers, supports dealers
- Ag Dealers- Ag Service providers
- Innovation- Customer Education- Dealer training
Dealer discount COGS seek a 50-60% Gross MarginHeavy R&D investment
- Ag Dealers- Ag Service providers
- Research labs
Asset saleOur revenue stream derives from selling the equipment
Engineers on Machine VisionTwo problems:- Identification- Elimination
![Page 78: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/78.jpg)
1 Week – 1 CarrotBot
Confidential
![Page 79: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/79.jpg)
CARROTBOT
Machine Vision data collection platform Monochrome & Color
Cameras Laser-line sweep
(depth measurement)
Encoders (position/velocity)
Onboard data acquisition & power
CarrotBot 1.0
![Page 80: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/80.jpg)
The Business Plan Canvas Updated
• Research Labs
• Equipment Manufacturers
• Distribution Network
• Service Providers
• Technology Design
• Marketing• Demo and
customer feedback
• Cost Reduction
• Remove labor force pains
• Eliminate bio-waste hazards
• IP – Patents• Video
Classifier Files
• Robust Technology
• Farming conventions.
• Demo, demo, and demo!!
• Proximity is paramount
• Organic Farmers
• Weeding Service Providers
• Conventional Farmers
• Dealers• Direct Service• Indirect
Service• … then
Dealers• Asset Sale• Direct Service
with equipment rental
• … then Asset Sale
Value-Driven
![Page 81: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/81.jpg)
Visit Highlights
Above: Organic Carrots, 7wks. Top right: Conventional carrotsBottom Right: Very weedy. Will require multiple passes of hand weeding
![Page 82: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/82.jpg)
Visit Highlights
Carrot vs. WeedsDue to small root systems, carrots have no chance against
weeds
![Page 83: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/83.jpg)
Visit Highlights
Organic Broccoli, closely cultivated. Weeds close to plants are hand-picked
![Page 84: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/84.jpg)
Visit Highlights
State of the Art in Weeding Technology for Organic Crops
![Page 85: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/85.jpg)
Customer Hypothesis
Hypothesis Confirmed• Growers interested in own
equipment • Industrial (10,000s of acres) • Large (1,000s of acres)• Willing to pay $100k for one
unit
• Smaller growers (100s of acres) usually subcontract the labor services or rent equipment
• All purchases through local dealers• Customer service is essential
Pre-Test
Post-Test
![Page 86: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/86.jpg)
Customer Map #1 – Industrial Growers
Example: Bolthouse Farms – Large Industrial Carrot Producer – 8K acres/yr
• Equipment Operator
• Director, Ag Technology
• Justin Grove, interviewed
• VP, Growing Operations
• CFO, CEO (Jeff Dunn)
• Local Farm Mgr• Cliff Kirkpatrick, visited
Equipment Operator
Cliff, Farm Mgr
![Page 87: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/87.jpg)
Customer Map #2 – Service Providers
Example: Ag Services – Service Provider, Salinas Valley
• Equipment Operator
• Service Mgr
• ?? (service mgr’s boss)
Me (left), Marty (middle, Service Mgr), Doug (right, Grower)
• Grower
![Page 88: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/88.jpg)
The Business Plan Canvas Updated
• Research Labs
• Equipment Manufacturers
• Distribution Network
• Service Providers
• Technology Design
• Marketing• Demo and
customer feedback
• Cost Reduction
• Remove labor force pains
• Eliminate bio-waste hazards
• IP – Patents• Video
Classifier Files
• Robust Technology
• Farming conventions.
• Demo, demo, and demo!!
• Proximity is paramount
• Mid/Large Organic Farmers
• Agricultural corporations
• Weeding Service Providers
• Mid/Large Conventional Farmers
• Direct Service• Indirect
Service• … then
Dealers
• Direct Service with equipment rental
• ($1,500/d; 120d/yr )• Low density:
$1,500/d• High density:
$6,000/d
Value-Driven
![Page 89: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/89.jpg)
World Ag Expo interviews:the need is real and wide spread
• 10+ interviews at show– Everyone confirmed the need– Robocrop, UK based, crude
competitor sells for $171 K
• Revenue Stream– Mid to small growers prefer a
service– Large growers prefer to buy, but
OK with service until technology is proven
– Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability)
Confidential
![Page 90: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/90.jpg)
The Business Plan Canvas Updated
• Research Labs
• Equipment Manufacturer
• Distribution Network
• Service Providers
• 2 or 3 Key Farms
• Technology Design
• Marketing• Demo and
customer feedback
• Cost Reduction
• Remove labor force pains
• Eliminate bio-waste hazards
• IP – Patents• Video
Classifier Files
• Robust Technology
• Farming conventions.
• Demo, demo, and demo!!
• Proximity is paramount
• Mid/Large Organic Farmers
• Agricultural corporations
• Weeding Service Providers
• Mid/Large Conventional Farmers
• Direct Service• Indirect
Service• … then
Dealers
• Direct Service with equipment rental
• Low density: $1,500/d
• High density: $6,000/d
Value-Driven• R&D• Bill of Materials• Training &
Service• Sales
![Page 91: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/91.jpg)
Autonomous weeding - Final
We reduce operating cost- Labor reduction (100 to 1)- Reduced risk of contamination- Mitigate labor availability concerns
- Low density vegetable growers- High density vegetable growers- Thinning operations- Conventional vegetables
Direct- Provide high quality service at competitive price
Direct - Alliance with service providers- Eventually sell through dealers
- Innovation- Customer Education- Dealer training
Costs for service provisionCOGS seek a 50-60% Gross MarginHeavy R&D investment
- Ag Service providers
- Research Institutes (eg UC Davis, Laser Zentrum Hannover)
- 3-4 key farms
Service provision- Charge by the acre with modifier according to weed density - Eventually move to asset sale
Engineers on Machine VisionTwo problems:- Identification- Elimination
![Page 92: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/92.jpg)
MammOpticsFinal project presentation for E 245 Winter 2011
![Page 93: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/93.jpg)
Project OverviewInitial industry guesses and customer hypothesis
![Page 94: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/94.jpg)
MammOpticsInitial Idea
Breast cancer
Leading cause of cancer in women190,000 diagnosis every year US41,000 deaths every year USIncreasing diagnosis rates
Mammography
15%-25% false negatives rate25% false positives rateRequires X-ray radiationLow resolution
Novel technology based on RF-modulated optical spectroscopy
MammOptics
- Earlier detection
- Non-radiative- Non-invasive
![Page 95: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/95.jpg)
MammOpticsTechnology Comparison
RiskInvasiveness
Resolution
False Pos.
False Neg.
Device Cost
Time Require
d
MammOptics Very Low Very Low <.1 cm <15% 5% 15-20k 10 min.
Mammography
High High .6 cm 25% 30% 20-50k 20 min.
MRI Medium Medium .1 cm 70% 5% 1000k 45 min.
Ultra-Sound Very Low Very Low >.6 cm >30% >40% 5-15k 20 min.
I.I.T.Y.I.W.H.T.K.Y
![Page 96: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/96.jpg)
MammOpticsBusiness Model Canvas 1 of 4
Radiation-freeEarlier detectionNon-invasive
Pioneering radiologists inhospitals
Direct sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs Capital equipment
sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributors
![Page 97: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/97.jpg)
MammOpticsBusiness Model Canvas 1 of 4
Radiation-freeEarlier detectionNon-invasive
Pioneering radiologists inhospitals
Direct sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs Capital equipment
sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributors
Initi
al guess
Initi
al guess
Initi
al guess
Initi
al guess
MammOpticsBusiness Model Canvas 1 of 4
Test:Customer segment
Value proposition
![Page 98: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/98.jpg)
Finding the right customerFrom radiologists to gynecologists
![Page 99: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/99.jpg)
MammOpticsExcursions into hospitals
Leading doctors
Patients
Hospital Managers
Technicians
Debra Ikeda Jason Davies
Jafi Alissa LipsonSunita Pal
6 women >40 8 women <40
Alicia X-ray mammography
Paul BillingsHolly V. Gautier
![Page 100: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/100.jpg)
MammOpticsHospital purchasing decision tree
![Page 101: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/101.jpg)
MammOpticsHospital purchasing decision tree
Hospitals
Complex purchasing decision
tree. Several saboteours
![Page 102: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/102.jpg)
MammOpticsPrivate practice purchasing decision tree
![Page 103: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/103.jpg)
MammOpticsPrivate practice purchasing decision tree
Private practice
Faster adoption rate
Attractive value proposition✔
![Page 104: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/104.jpg)
Pioneering DoctorsHospitalsOB/GYNsPCPs
Direct Sales to doctors
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch Hospitals
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 2 of 4
![Page 105: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/105.jpg)
Pioneering DoctorsHospitalsOB/GYNsPCPs
Direct Sales to doctors
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch Hospitals
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 2 of 4
How do we get to our customer?
Need sensitivity and specificity
![Page 106: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/106.jpg)
Getting to our customerThe world of direct sales and medical marketing
![Page 107: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/107.jpg)
MammOpticsInterviews
Breast Cancer Advocacy Groups
OB/GYNs
FDA/Clinical Trials
Medical Sales
Be Bright PinkJennifer Glover
Dr. Cindy WooDr. Jags Powers
Dr. Aaron Shuvkan
Katrina BellTanay Dudhela
Jed Hwang
Phyllis WhitelyCarl Simpson
![Page 108: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/108.jpg)
MammOpticsMarketing
![Page 109: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/109.jpg)
Access to ACOG by former member
Strong influence on doctors via ACOG Standard of Care
Strongly influenced by
KOLs
MammOpticsMarketing
![Page 110: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/110.jpg)
Researchers conducting
important clinical trials
Researchers with numerous
publications
Outsourced survey research
Researchers with strong peer
recommendations
MammOpticsMarketing
![Page 111: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/111.jpg)
Focus on prominent journals Need two big
publications
Choose KOL as Principal Investigators
(PI)
MammOpticsMarketing
![Page 112: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/112.jpg)
Effective method for educating
doctors
Doctors required to attend
workshops
Workshop must be approved by ACOG
Taught by objective medical
experts
MammOpticsMarketing
![Page 113: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/113.jpg)
ACOG Annual Clinical
Meeting
Miami Breast Cancer Conference
Opportunity for feedback from
doctors
MammOpticsMarketing
![Page 114: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/114.jpg)
Trusted information source for patients
Critical opinion leader for
technology adoption
Access to media outlets
MammOpticsMarketing
![Page 115: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/115.jpg)
IndividualDoctors
Purchasing Administrato
rs
High value medical products
(e.g. cardiovascular stents)
Commodity medical products
(e.g. latex gloves)
• Doctor education• Direct feedback from doctors• Very expensive
• No doctor education• No customer feedback• Inexpensive
Direct Sales
Distributors
MammOpticsChannel Strategies and Costs
Individual Doctors
Purchasing Administrato
rs
![Page 116: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/116.jpg)
Channel Strategies and CostsMammOptics
5 dedicated sales people$150,000 each/year
Hire nurses or technicianswith establishedrelationships
Early adopter feedback
Continue with core group of sales people
Use women’s healthcare equipment distributor
Already established network of customers
Sales strategy 1 Sales strategy 2
![Page 117: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/117.jpg)
MammOpticsPricing Strategy
Equipment Lease model
Per-use model
Consumable
Cost of the device
Service per year
Per-use fee
Consumable
$50,000
$3,000
0
0
$5,000
$10,000
0
0
$5,000
0
$50
0
$25,000
0
0
$20
![Page 118: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/118.jpg)
MammOpticsPricing Strategy
Equipment Lease model
Per-use model
Consumable
Cost of the device
Service per year
Per-use fee
Consumable
$50,000
$3,000
0
0
$5,000
$10,000
0
0
$5,000
0
$50
0
$25,000
0
0
$20
Approved by
customers and
investors
![Page 119: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/119.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
RadiologistMammography
MammOpticsCustomer Workflow
Current market Insurance
![Page 120: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/120.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
RadiologistMammography
MammOpticsCustomer Workflow
Current market
But what would happen if we replace mammography?
Insurance
![Page 121: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/121.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
Breast Radiologists
Technicians Hospitals
Loss of jobs
Loss of jobs Eliminates loss leaderPuts emphasis on
biopsies
Insurance
![Page 122: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/122.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
Insurance
![Page 123: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/123.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
InsuranceSame cost as mammography
($140)Reduced number of biopsies
($1000)
ACOG/ACSImproved healthcare(mammography weak
technique)
Insurance
![Page 124: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/124.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Insurance
Radiologist
Mammography
MammOpticsCustomer Workflow
![Page 125: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/125.jpg)
Insurance
Doctor specialty
committee
Hospital Administrati
on
Technician
RadiologistMammography
MammOpticsCustomer Workflow
ACOGACS
MammOptics
Patient
PCPOB/GYN
![Page 126: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/126.jpg)
Insurance
Doctor specialty
committee
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOpticsCustomer Workflow
ACOGACS
MammOptics
Patient
PCPOB/GYN
Hospital Administrati
on
Technician
Radiologist
Mammography
MammOptics
Patient
PCPOB/GYN
PCP OB/GYNsIncreased revenue
More complete patient care
PatientImproved healthcare
Comfort
MammOpticsRevenue
![Page 127: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/127.jpg)
ACOGACS
Doctor specialty
committee
Hospital Administrati
on
Technician
Insurance
Radiologist
Mammography
MammOpticsCustomer Workflow
MammOptics
Patient
PCPOB/GYN
![Page 128: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/128.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 3 of 4
![Page 129: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/129.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAReimbursementPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 3 of 4
Learned how to reach the customer
How do we build a company based on this?
![Page 130: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/130.jpg)
Building the companyThe backstage of a medical device company
![Page 131: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/131.jpg)
MammOpticsInterviews
FDA Clinical Trials
Manufacturing
Venture Capitalists
Reimbursement
Stanford Statistics Steve AxelrodMarga Ortigas-
Wedekind
Nick MourlasDon
Archambault
Shannon BergstedtAli Habib
Dana MeadBill Starling
Doctors/Sales
Dr. Aron Shuftan
Jed HwangMichael J. Nohr
![Page 132: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/132.jpg)
Manufacturing
MammOpticsPartners
Choose manufacturing facility close to
home
![Page 133: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/133.jpg)
Manufacturing Partner
75% gross margin
9 Inches
~5 lbs
DSP
RFIC
Photo probe
Disposable head
Discounts for Revenue Model
COGS$4-5k per
unit
MammOptics
I.I.T.Y.I.W.H.T.K.Y
![Page 134: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/134.jpg)
Part IP Development
Manufacturing
COGS
1 Digital Processing Unit / Algorithms MammOptics In-House Off the Shelf $200
2 Customized RF Integrated Circuitry MammOptics In-House Out-Sourced $500
3 Probe Bank (Lasers and Photo-Detectors)
Licensed - Off the Shelf $1500
4 Disposable Skin Contact Pad MammOptics In-House Out-Sourced $2
5 Packaging MammOptics Out-Sourced Out-Sourced $2000
TechnologyMammOptics
I.I.T.Y.I.W.H.T.K.Y
![Page 135: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/135.jpg)
Manufacturing Reimbursement
MammOpticsPartners
Difficult to get coverage for new product.
Manufacturing
MammOpticsPartners
![Page 136: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/136.jpg)
Reimbursement PartnersMammOptics
Insurances
CPT Codes$75-$150
![Page 137: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/137.jpg)
MammOpticsPartners
Manufacturing
FDA Clinical Trials
Reimbursement
510K vs. PMALargest cost
Biggest financial risk
![Page 138: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/138.jpg)
Clinical Trials
12/4/2009
Stage 1Pilot trials
50 patients$600K
MammOptics
6 months
FeasibilityComparison
with mammograph
y
![Page 139: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/139.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
500 patients$7.2M
Prove superior safety-
efficacy & sensitivity
![Page 140: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/140.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
24 months
Stage 3FDA
pivotal trials1500
patients$20.5M
FDA class II, 510(K) w/ trials
Focus on superiority &
economic end-points
![Page 141: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/141.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
Stage 3FDA
pivotal trials
Stage 4Post-
market studies2000 patients$26.8M
Specific Cat III CPT/ACP CodesMarket traction
24 months24 months
![Page 142: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/142.jpg)
Clinical Trials
12/4/2009
MammOptics
6 months 15 months
Stage 1Pilot trials
Stage 2Interim trials
Stage 3FDA
pivotal trials$600K
$7.2M
$20.5M
$26.8M
Stage 4Post-
market studies
24 months 24 months
![Page 143: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/143.jpg)
Clinical Trials
12/4/2009
MammOptics
![Page 144: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/144.jpg)
MammOpticsPartners
MammOpticsPartners
Manufacturing
FDA Clinical Trials
Reimbursement
Financial timeline
Funding
![Page 145: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/145.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
Series D $35
MM
M&A / IPO $50 MM
$40M
145 12/4/2009
Proof of Concep
t
Pilot Studie
s
IC and Processing Patents
Marketable Product
Provisional Patent
Beta-Versio
n Testin
g
Application and
System Patents
IRB / IDE
Clinical Results
Second Release
Initial Product Launch
Specific Codes (Cat. I CPT / APC)
Non-Specific Codes
1st Release
Test
2nd Release Test
Publication
Post-Market Clinical Studies
Beta Prototype
US Interim Trials
FDA – Class II – 510 (k) with Clinical Trials
Publication
Financial / Operations Timeline
Cat III
CPT
US Pivotal Clinical Trials
Laboratory
Prototype
Technology
Licensing
MammOpticsMammOptics
Financial timeline
![Page 146: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/146.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
$30M
$20M
$40M
146 12/4/2009
Proof of Concep
t
Provisional Patent
Financial / Operations Timeline
Technology
Licensing
MammOpticsMammOptics
![Page 147: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/147.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
$30M
$20M
$40M
147 12/4/2009
Proof of Concep
t
Provisional Patent
Beta-Versio
n Testin
g
Laboratory
Prototype
Beta Prototype
Technology
Licensing
Financial / Operations Timeline
Pilot Studie
s
MammOpticsMammOptics
![Page 148: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/148.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
$30M
$20M
$40M
148 12/4/2009
IC and Processing Patents
Marketable Product
Beta-Versio
n Testin
g
Application and
System Patents
IRB / IDE
Beta Prototype
Financial / Operations Timeline
Pilot Studie
s
Regulatory / Clinical
Laboratory
Prototype
MammOpticsMammOptics
![Page 149: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/149.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
$40M
149
IC and Processing Patents
Application and
System Patents
IRB / IDE
Cat III
CPT
Second Release
1st Release
Test
US Interim Trials US Pivotal Clinical Trials
Publication
Financial / Operations Timeline
Pilot Studie
s
MammOpticsMammOptics
![Page 150: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/150.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
Series D $35
MM
$40M
150 12/4/2009
Clinical Results
Second Release
Initial Product Launch
Non-Specific Codes
2nd Release Test
Publication
US Interim Trials
FDA – Class II – 510 (k) with Clinical Trials
Publication
Financial / Operations Timeline
US Pivotal Clinical Trials
MammOpticsMammOptics
![Page 151: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/151.jpg)
$10M
$15M
2012
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016 2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
$30M
$20M
Regulatory / Clinical
Series D $35
MM
M&A / IPO $50 MM
$40M
12/4/2009
Clinical Results
Initial Product Launch
Specific Codes (Cat. I CPT / APC)
Non-Specific Codes
Publication
Post-Market Clinical Studies
FDA – Class II – 510 (k) with Clinical Trials
Financial / Operations TimelineMammOpticsMammOptics
![Page 152: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/152.jpg)
$10M
$15M
2012
Series A $3.5 MM
Cash
Rese
rve
Clin
ical
Mile
stones
$5M
Initialize
Desi
gn
Mile
stones
Reg
ula
tory
/ IP
M
ilest
ones
Q1 Q2 Q3 Q4
2013Q1 Q2 Q3 Q4
2014Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2015 2016
Series B $9 MM
System
2017Q1 Q2Q1 Q2 Q3 Q4
2018Q3
Launch
Series C $30.5 MM
$30M
$20M
Regulatory / Clinical
Series D $35
MM
M&A / IPO $50 MM
$40M
152 12/4/2009
Proof of Concep
t
Pilot Studie
s
IC and Processing Patents
Marketable Product
Provisional Patent
Beta-Versio
n Testin
g
Application and
System Patents
IRB / IDE
Clinical Results
Second Release
Initial Product Launch
Specific Codes (Cat. I CPT / APC)
Non-Specific Codes
1st Release
Test
2nd Release Test
Publication
Post-Market Clinical Studies
Beta Prototype
US Interim Trials
FDA – Class II – 510 (k) with Clinical Trials
Publication
Financial / Operations Timeline
Cat III
CPT
US Pivotal Clinical Trials
Laboratory
Prototype
Technology
Licensing
MammOpticsMammOptics
![Page 153: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/153.jpg)
MammOpticsBusiness Model Canvas 4 of 4
OB/GYNsPCPs
Direct Sales to hospitalsDistributorOnline
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
![Page 154: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/154.jpg)
MammOpticsBusiness Model Canvas 4 of 4
Earlier detectionNon invasivePriceAccuracyImmediate Results
OB/GYNsPCPs
Direct Sales to hospitalsDistributorOnline
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturersBreast Cancer FoundationsACOGACSClinical trial designer
Final iteration of our business model
But… need to think about the big picture…
![Page 155: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/155.jpg)
Radiation-freeEarlier detectionNon invasive
Pioneering DoctorsHospitals
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributors
MammOpticsBusiness Model Canvas 1
![Page 156: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/156.jpg)
Radiation-freeEarlier detectionNon invasive
Pioneering DoctorsHospitals
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
HospitalsLeading doctors3rd party manufacturersDistributorsResearch Hospitals
MammOpticsBusiness Model Canvas 2
![Page 157: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/157.jpg)
Pioneering DoctorsHospitals
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch Hospitals
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 3
![Page 158: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/158.jpg)
Pioneering DoctorsHospitalsOB/GYNsPCPs
Direct Sales to hospitals
Strong clinical dataTrainingMaintenance
Product DevelopmentClinical trialsOperating Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDA
IP Leading doctorsTechnical Expertise
Hospitals (Capital Spending Committee)Leading doctors3rd party manufacturersDistributorsResearch HospitalsBreast Cancer Foundations
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 4
![Page 159: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/159.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable item
Product DevelopmentIPClinical trialsFDAReimbursementPublishing
IP Leading doctorsTechnical Expertise
Leading doctorsKey Opinion Leaders3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracy
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 5
![Page 160: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/160.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Capital Equipment Sales and disposable itemPer use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACS
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 6
![Page 161: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/161.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturersDistributorsBreast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 7
![Page 162: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/162.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturers(local)Breast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 8
![Page 163: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/163.jpg)
OB/GYNsPCPs
Direct Sales to hospitalsDistributor
Strong clinical dataTrainingMaintenanceConferencesCME courses
Product DevelopmentClinical trialsOperating CostsMarketing Costs
Per use fees
Product DevelopmentIPClinical trialsFDAReimbursement Publishing
IP Leading doctorsTechnical Expertise
KOLs3rd party manufacturers(local)Breast Cancer FoundationsACOGACSClinical trial designer
Doctors:Earlier detectionPriceAccuracyImmediate Results
Patients:Radiation FreeNon-Invasive
MammOpticsBusiness Model Canvas 9
![Page 164: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/164.jpg)
Personal Libraries
![Page 165: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/165.jpg)
Insight: No more bookshelves
Printed Books -20% YoY ‘10
eBooks+150% YoY ‘10
![Page 166: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/166.jpg)
Version 1.0: Personal Libraries
![Page 167: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/167.jpg)
Original Idea: Personal Digital Libraries
Import, organize and share thousands of digital papers
![Page 168: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/168.jpg)
something-something-something.com
Original idea
SHORT TERMResearchersLawyersScientists
LONG TERMAvid book readersProfessionals
Import, organize and share thousands of papers
FB/TW posts from users you know
Company blog, FB, TW, support forums
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
Targeted marketing
Product development
Constant iteration & testing
DevelopersMarketers
Libraries, Universities, Research Centers
Bloggers and media targeting customer segment
Academic Database providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng & Marketing OpEx
Invincible Business Model: Version 1.0
![Page 169: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/169.jpg)
Here’s What We DidVersion 1.0: Personal Libraries
![Page 170: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/170.jpg)
Got out of the building
![Page 171: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/171.jpg)
Got out of the building
• 100+ Interviews
Professors, Litigators, IP lawyers, Post-docs, PhD researchers, Engineering Students, Law Students…
![Page 172: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/172.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys
![Page 173: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/173.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords
![Page 174: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/174.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords• Compete Review
![Page 175: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/175.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords• Compete Review• Market Sizing
![Page 176: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/176.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords• Compete Review• Market Sizing• 50 bloggers
![Page 177: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/177.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords• Compete Review• Market Sizing• 50 bloggers• 6 Social Networks
![Page 178: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/178.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords• Compete Review• Market Sizing• 50 bloggers• 6 Social Networks• Usability Tests
![Page 179: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/179.jpg)
Got out of the building
• 100+ Interviews• Extensive Surveys• 33,000+ Adwords• Compete Review• Market Sizing• 50 bloggers• 6 Social Networks• Usability Tests• Rapid Iteration
![Page 180: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/180.jpg)
Here’s What We FoundVersion 1.0: Personal Libraries
![Page 181: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/181.jpg)
Here's what we found: Version 1.0
GOOD• Subscriptions Rock
A great business if we had more users…
![Page 182: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/182.jpg)
Here's what we found: Version 1.0
GOOD• Subscriptions Rock• Pipelines Optimize
Shorter pages raise conversions 80%
![Page 183: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/183.jpg)
Here's what we found: Version 1.0
GOOD• Subscriptions Rock• Pipelines Optimize• The Web Listens
Sites will feature your service
![Page 184: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/184.jpg)
Here's what we found: Version 1.0
GOOD• Subscriptions Rock• Pipelines Optimize• The Web Listens
BAD• Academics = Cheap
Teaching team saw pattern in our data
![Page 185: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/185.jpg)
Run away from this customer as fast as possible.
![Page 186: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/186.jpg)
Run away from this customer as fast as possible.
They don’t want to spend money and will incur infinite support and infinite cost.
![Page 187: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/187.jpg)
Here's what we found: Version 1.0
GOOD• Subscriptions Rock• Pipelines Optimize• The Web Listens
BAD• Academics = Cheap• Negative Margins
Working for peanuts, and hitting wild product success leads to economic failure
![Page 188: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/188.jpg)
Here's what we found: Version 1.0
GOOD• Subscriptions Rock• Pipelines Optimize• The Web Listens
BAD• Academics = Cheap• Negative Margins• ECM = Boring
No adjacent pivots worked for the team
![Page 189: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/189.jpg)
Version 2.0: Trusted Advice
![Page 190: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/190.jpg)
something-something-something.com
Original idea
Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
Discover online goods recommended by friends at the lowest possible price from trusted vendors
FB/TW posts from users you know
Company blog, FB, TW accounts
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
Developing trusted advice and advisors
Web marketing
Affiliate partnerships
Constant iteration & testing
DevelopersMarketersContent LibraryInstall baseReadership base
Bloggers and Media targeting customer segment
Retail marketing partners
IE/FF/Chrome teams
Affiliate Program Providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng & Marketing OpEx
Invincible Business Model: Version 2.0
![Page 191: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/191.jpg)
New Hypotheses
![Page 192: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/192.jpg)
Here’s What We DidVersion 2.0: Trusted Advice
![Page 193: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/193.jpg)
Got out of the building, again
• 40+ Interviews
![Page 194: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/194.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys
![Page 195: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/195.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys• Landing Page Tests
Landing pages tested on affluent, career aged professionals, approximately 70/30
male/female, N=800+
![Page 196: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/196.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys• Landing Page Tests• Market Research
![Page 197: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/197.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys• Landing Page Tests• Market Research• Compete Research
![Page 198: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/198.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys• Landing Page Tests• Market Research• Compete Research• Revenue Analysis
![Page 199: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/199.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys• Landing Page Tests• Market Research• Compete Research• Revenue Analysis• Two Prototypes
Insidely.com
wantio.com
![Page 200: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/200.jpg)
Got out of the building, again
• 40+ Interviews• Extensive Surveys• Landing Page Tests• Market Research• Compete Research• Revenue Analysis• Two Prototypes• Refined Personas
![Page 201: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/201.jpg)
Customer Segment: Professional-class consumers shopping frequently online
Pat the ProfessionalUpwardly mobile professional (some Grad Students)Salary: $40,000 – 150,000/yearFinance, Consulting, PR, MarketingFollows fashion/technology trendsSpends $1-15K on discretionary items onlinePurchased online in last 30 days
Demographics• Male/female, aged 18-35• Minimum bachelors from expensive schoolTraits:• Ideas from blogs & shopping websites • Values celebrity trends & friends’ opinions• Wants high ticket items at lowest price• Event-driven shopper—new release or sale
Motivation• Craves new products• Hates tedious work• Identifies as influencer among friends• Fears being cheated online
Behavior• Spends 5 hour+ monthly hearing about products • Shares online and in person about products he
lovesBudget• $2-10K+/year in discretionary online purchases
“The XXX is awesome, I really want one. I know I just bought the YYY, but it’s probably time to upgrade.”
Source: US Bureau of Labor Statistics
~5.9M “Pat the Professionals” in USDrawn from top 1/3 of 17.8M frequent online shoppers17.8M based on 40.2M Professionals (2008 Census) * 0.762 US Internet Penetration (Nielsen 2010Q1) * 0.58 consumers shopping online in last month (Nielsen 2010Q1)
Online Recommendation Market Opportunity (conservative strawman #s)Assuming 10% share, 5% affiliate fees
Top Shoppers (~$7B/year spend): ~ $35M/year
Professional-class frequent shoppers (~$1.8B/year): ~ $9M/year
Other Professional-class shoppers ($0.7B/year): ~3.5M/year
![Page 202: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/202.jpg)
Version 2.0: Trusted AdviceTop ~6M US Influentials (~$9B/year)
![Page 203: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/203.jpg)
something-something-something.com
Original idea
Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
Discover online goods recommended by friends at the lowest possible price from trusted vendors
FB/TW posts from users you know
Company blog, FB, TW accounts
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
Developing trusted advice and advisors
Web marketing
Affiliate partnerships
Constant iteration & testing
DevelopersMarketersContent LibraryInstall baseReadership base
Bloggers and Media targeting customer segment
Retail marketing partners
IE/FF/Chrome teams
Affiliate Program Providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng & Marketing OpEx
Invincible Business Model: Version 2.0
![Page 204: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/204.jpg)
Here’s What We FoundVersion 2: Trusted Advice
![Page 205: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/205.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest
Insidely.comTrusted advice site for Silicon Valley/Stanford MBAs
Launched 2/15
425 visitors by 2/28
![Page 206: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/206.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest
Ranked #6 by Google for “Stanford Admissions Books”
![Page 207: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/207.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest• High Conversion
43% clickthrough on Top Admissions Books for Stanford MBAs article
Compare to 0.5% clickthrough on ads
~100x difference
![Page 208: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/208.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest• High Conversion• Needs Addressed
Positive results on “Trusted Advice” Shopping Add-in testing
See videos at http://factnote.com/c/e245
![Page 209: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/209.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest• High Conversion• Needs Addressed
Super easy to install and use.
I really did enjoy it!
Great idea! I will keep the extension installed because I do think this is practical!
I could see myself using this regularly
Positive results on “Trusted Advice” Shopping Add-in testing
![Page 210: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/210.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest• High Conversion• Needs Addressed BAD• Missing Features
Some negative results on “Trusted Advice” Shopping Add-in testing
See videos at http://factnote.com/c/e245
![Page 211: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/211.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest• High Conversion• Needs Addressed BAD• Missing Features
Some negative results on “Trusted Advice” Shopping Add-in testing
I was a little frustrated when it didn’t find the item I was looking for
I can find more thorough price comparisons elsewhere…
I usually don’t shop in Chrome, so that’s an inconvenience.
![Page 212: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/212.jpg)
Findings on "Trusted Advice"
GOOD• Fast Interest• High Conversion• Needs Addressed BAD• Missing Features• SEO Battle
MBA Exchange spams us out of Google
![Page 213: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/213.jpg)
Here’s Where We Ended Up Version 2.1: Trusted Advice
![Page 214: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/214.jpg)
The adventure continues
Trusted Advice 2.0
Protection against SEO-spammers
Next Experiments: • Trusted Lead Gen • Trusted Advice
website powered by Shopping Add-in
![Page 215: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/215.jpg)
something-something-something.com
Original idea
PAT THE PROFESSIONALUpwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)
TRUSTED ADVICE Discover online goods recommended by friends at the lowest possible price from trusted vendors
Foil advertorial spammers polluting the Interweb with toxic pseudo-content
FB/TW posts from users you know
Company blog, FB, TW accounts
Affiliate program
SEO/SEM/SM
IE/FF/Chrome App Stores
Developing trusted advice and advisors
Web marketing
Affiliate partnerships
Constant iteration & testing
DevelopersMarketersContent LibraryInstall baseReadership base
Bloggers and Media targeting customer segment
Retail marketing partners
IE/FF/Chrome teams
Affiliate Program Providers
Affiliate program feesLicensingSubscription feesAd revenue
AWS InfrastructureSEMEng & Marketing OpEx
Invincible Business Model: Version 3.0
![Page 216: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/216.jpg)
What We Learned
• Potential for disruption abounds
![Page 217: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/217.jpg)
What We Learned
• Potential for disruption abounds
• Life is short, focus on big markets
![Page 218: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/218.jpg)
What We Learned
• Potential for disruption abounds
• Life is short, focus on big markets
• All we need is to be relentless
![Page 219: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/219.jpg)
Blog Your Progress
![Page 220: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/220.jpg)
How?
• Customer Development– The Process
• Narrative– Interviews– Surveys– Videos– Prototypes
• Business Model Canvas– Scorekeeping
• Real-time Feedback• Physical Reality Checks
– Skype– Face-to-face
![Page 221: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/221.jpg)
We Made Students Blog Their Progress
It Changed Everything
![Page 222: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/222.jpg)
Interview
![Page 223: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/223.jpg)
Photos Videos
![Page 224: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/224.jpg)
Surveys
![Page 225: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/225.jpg)
Interview& Photos
![Page 226: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/226.jpg)
Competitive Analysis
![Page 227: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/227.jpg)
Key Findings
![Page 228: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/228.jpg)
A/B Test Results
![Page 229: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/229.jpg)
Key Question
![Page 230: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/230.jpg)
Strategy
![Page 231: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/231.jpg)
Business Model Canvas as the Scorecard
![Page 232: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/232.jpg)
Carpe Diem
www.steveblank.com
![Page 233: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/233.jpg)
Customer DevelopmentTesting Your Hypotheses
Stanford - School of EngineeringU.C. Berkeley - Haas School Of Business
www.steveblank.comTwitter: sgblank
Steve Blank
![Page 234: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/234.jpg)
I Write a Blog www.steveblank.com
![Page 235: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/235.jpg)
This Talk is Based On• Business Model Generation• Four Steps to the Epiphany
• Lean Startup
![Page 236: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/236.jpg)
Customer Discovery Phase 1 - Hypotheses
![Page 237: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/237.jpg)
Stop selling, start listening
Test your hypotheses Two are fundamental: problem and product concept
Customer Discovery
CustomerDiscovery
CustomerValidation
CompanyBuilding
CustomerCreation
![Page 238: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/238.jpg)
Customer Discovery
CustomerDiscovery
Phase 1AuthorHypothesis
Phase 2Test ProblemHypothesis
Phase 4Verify, Iterate & Expand
Phase 3Test SolutionHypothesis
To Validation
![Page 239: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/239.jpg)
Customer Discovery
![Page 240: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/240.jpg)
Customer Discovery
Outside the Building
Inside the Building
![Page 241: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/241.jpg)
Value Prop 1Product/MVP
CustomersWho/Problem
ChannelsPhysical/
Virtual
Value Prop 2Market Type
Customer RelationshipsGet/Keep/Grow
Revenue StreamsPricing
PartnersKey Resources
Customer Discovery Phase 1 - Hypotheses
![Page 242: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/242.jpg)
Value Prop 1Product/MVP
CustomersWho/
Problem
ChannelsPhysical/Virtual
Value Prop 2Market Type
Customer Relationships
Get/Keep/Grow
Revenue StreamsPricing
PartnersKey Resources
Customer Discovery Value Proposition – Product/MVP
Long-Term Vision/
Mkt Size
Product Features/B
enefits
MVP
![Page 243: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/243.jpg)
VALUE PROPOSITIONS
what are you offering them? what is that getting done for them? do they care?
![Page 244: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/244.jpg)
Testing the MVP
• Smoke testing with landing pages using AdWords• In-product split-testing• Prototypes (particularly for hardware)• Removing features• Continued customer discovery and validation• Surveys• Interviews
![Page 245: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/245.jpg)
Testing the MVP (Web Example)
Can you get customers to pay for a product that doesn’t yet exist (or barely does)?
• Do customers say they have a matching core problem?• Landing page test for conversion• What’s required to get customers to activate? (prizes, payment)• Use customer problem to identify key word list
– plug into Google search traffic estimator - high traffic means there is problem awareness
• Drive traffic to site using Google search and see how deep into a registration process customers are willing to go through
![Page 246: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/246.jpg)
Testing the MVP (Non-Web)Can you get customers to pay for a product that
doesn’t yet exist (or barely does)?
• Interview customers to make sure they have a matching core problem
• Set up web site landing page to test for conversion• Set up a Lighthouse Customer Program where
potential customers pay to get early access to product prototypes
![Page 247: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/247.jpg)
Value Prop 1Product/MVP
CustomersWho/Problem
ChannelsPhysical/
Virtual
Value Prop 2Market Type
Customer RelationshipsGet/Keep/Grow
Revenue StreamsPricing
PartnersKey Resources
Customer Discovery Customer Segments
![Page 248: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/248.jpg)
CUSTOMER SEGMENTS
which customers and users are you serving? which jobs do they really want to get done?
![Page 249: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/249.jpg)
Who’s The Customer?
Consumer End Users, Corporate Customers Pay
Multiple Consumers Etc.
![Page 250: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/250.jpg)
Market/Opportunity Analysis
How Big is It?: Market/Opportunity Analysis– Identify a Customer and Market Need– Size the Market– Competitors– Growth Potential
![Page 251: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/251.jpg)
How Big is the Pie?Total Available Market
Total Available Market
• How many people would want/need
the product?
• How large is the market be (in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?
• Industry Analysts – Gartner, Forrester
• Wall Street Analysts – Goldman, Morgan
![Page 252: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/252.jpg)
How Big is My Slice?Served Available Market
• How many people need/can use product?
• How many people have the money to buy the product
• How large would the market be (in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?• Talk to potential customers
Served Available
Market
TotalAvailableMarket
![Page 253: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/253.jpg)
How Much Can I Eat?Target Market
• Who am I going to sell to in year 1, 2 & 3?
• How many customers is that?
• How large is the market be (in $’s) if they all bought?
• How many units would that be?
How Do I Find Out?• Talk to potential customers
• Identify and talk to channel partners
• Identify and talk to competitors
TotalAvailableMarket Target
Market
ServedAvailableMarket
![Page 254: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/254.jpg)
TotalAvailableMarket
SegmentationIdentification of groups most likely to buy
254
ServedAvailableMarket
Target Market
• Geographic• Demographic• Psychographic variables• Behavioral variables• Channel• etc…
![Page 255: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/255.jpg)
Market Size: Summary• Market Size Questions:
– How big can this market be? – How much of it can we get?– Market growth rate– Market structure (Mature or in flux?)
• Most important: Talk to Customers and Sales Channel• Next important: Market size by competitive approximation
– Wall Street analyst reports are great• And : Market research firms Like Forester, Gartner
![Page 256: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/256.jpg)
Corporate? Consumer?
Business to Business (B to B) Use or buy inside a company
Business to Consumer (B to C) Use or buy for themselves
Business to Business to Consumer (B to B to C) Sell a business to get to a consumer Other Multi-sided Markets with multiple
customers
![Page 257: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/257.jpg)
What do they want you to do?Corporate
Increase revenue? Decrease costs? Get them new customers? Keep up with or pass competitors? How important is it?
![Page 258: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/258.jpg)
What do they want you to do?Consumers
Does it entertain them? Does it connect them with others? Does it make their lives easier? Does it satisfy a basic need? How important is it? Can they afford it?
![Page 259: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/259.jpg)
Market Type & Ignoring Customers
Existing Market? Resegmenting an Existing Market?
niche or low cost New Market?
When do I ignore customer feedback?
![Page 260: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/260.jpg)
Who’s the Customer in a Company?
User? Influencer? Recommender? Decision Maker? Economic Buyer? Saboteur? Archetypes for each?
![Page 261: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/261.jpg)
MammOpticsHospital purchasing decision tree
HospitalsComplex purchasing decision tree. Several saboteours
![Page 262: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/262.jpg)
MammOpticsPrivate practice purchasing decision tree
Private practiceFaster adoption rateGood value proposition
✔
![Page 263: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/263.jpg)
Radiologist
Mammography
Technician
Doctor specialty
committee
Hospital Administrati
on
Insurance
ACOGACS
PCPOB/GYN
Patient
MammOptics
Sales representatives
Demand Creation
MammOpticsCustomer Workflow
![Page 264: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/264.jpg)
How Do Corporate Customers Interact to Buy?
Organization Chart Influence Map Sales Road Map
![Page 265: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/265.jpg)
Consumer Customer Interactions
Do they buy it by themselves? Do they need approval of others? Do they use it alone or with others?
![Page 266: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/266.jpg)
Pass/Fail Signals & Experiments
How do you test interest? Where do you test interest? What kind of experiments can you run? How many do you test?
![Page 267: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/267.jpg)
How Do They Hear About You?
Demand Creation Network effect Sales
![Page 268: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/268.jpg)
Value Prop 1Product/MVP
ChannelsPhysical/Virtual
CustomersWho/Problem
Value Prop 2Market Type
Customer Relationships
Get/Keep/Grow
Revenue StreamsPricing
PartnersKey Resources
Customer Discovery Channels
![Page 269: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/269.jpg)
Multiple Customer Segments
Each has its own Value Proposition Each has its own Revenue Stream One segment cannot exist without the other Which one do you start with?
![Page 270: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/270.jpg)
CHANNELS
how does each customer segment want to be reached? through which interaction points?
![Page 271: True ventures 072011](https://reader037.vdocument.in/reader037/viewer/2022102815/554c2094b4c905ec518b563e/html5/thumbnails/271.jpg)
Our Company
Our Customers
System Integrators
Direct Sales Force
Value-Added Resellers (VAR’s)
Dealers
Distributors
Retail/Mass Merchants
OEM
Web/Online
OEM
System Integrators
Direct Sales Force
Value-Added Reseller
Dealers
Distributors
Retailers/Mass Merchants