business value proposition development · mvp . products & services . gain creators . pain...

Moderator Ken Polk Panelists Dan Daly Rick Jordan Mark Vreeke Phillip C. Badger

Business Value Proposition Development

Developing Business Value Propositions

Dan Daly

What We Now Know

Strategy

More startups fail from a lack of customers than from a failure of product development

NSF I-Corps The Lean LaunchPad

Value Proposition

Version 6/15/12

Value Proposition

What Are You Building and For Who?

© 2012 Steve Blank

Product/Market Fit

MVP Products

& Services

Gain Creators

Pain Killers

The Value Proposition

Pain = Customer Problem Gain = Customer Solution

Persona /Archetype

• Jobs • Problem or

Need

Gains

Pains

The Customer Segment

Market Type

MVP Products

& Services

Gain Creators

Pain Killers

Persona /Archetyp

e

• Jobs • Problem

or Need

Gains

Pains

Product/Market Fit

Customer Development

WHAT WE DO

Reduce investment-risk in scaling up technology through a focused, data-backed process

o Experimental data are obtained/analyzed for assessment of technical feasibility

o Market (strategic) fit is continuously reviewed

o Competitive advantage is continuously analyzed against the competition

o Company business plan is continuously reviewed in light of technical feasibility, market fit and competitive advantage

Increase company asset value based on experimental data, market fit and competitive analysis

o Company business plan is revised as needed to increase company asset value

o Trade secrets are identified and cataloged to enhance company’s short-term revenue potential

o Know how is identified and cataloged to enhance company’s valuation potential

o Patent strategy is implemented to enhance company’s long-term revenue potential

Market company technology to potential third party investors

o Risk-reward analysis for next-stage investment is prepared and presented to potential investors

o Investor presentation is based on initial data-gathering to support predominant risk-reward factors

Technical feasibility

Market (strategic) fit

Competitive/Investment advantage

15

S C H L O S B E R G ▀▄ J O R D A N

▀▄ De-Risk

Asset Build

16

S C H L O S B E R G ▀▄ J O R D A N

HOW WE DO IT

S C H L O S B E R G ▀▄ J O R D A N

STAGE-GATE PROCESS

INVESTMENT Staged, strategic investment toward commercialization

▀▄ De-Risk

Asset Build

▀▄ De-Risk

Asset Build

▀▄ De-Risk

Asset Build

Con

cept

Ass

essm

ent

Stag

e 1

Det

aile

d As

sess

men

t St

age

2

Scal

e-U

P D

evel

opm

ent

Stag

e 3

C

omm

erci

aliz

atio

n St

age

5

Valid

atio

n St

age

4

BUILDING ASSET VALUE Increasing asset value over each investment stage

Patent Portfolio Building Trade Secret Protection Defining Competitive Know-How Advantages

REDUCING INVESTMENT-RISK Evaluating risk over each investment stage

Reviewing Market (Strategic) Fit at Each Stage Reassessing Technical Feasibility at Each Stage Defining Business/Investment Advantage

MARKETING COMPANY TECHNOLOGY Presenting refined business plan Quantifying investment risk-reward

Chemical Angel Network

Mark.Vreeke@ChemicalAngels.com Sid.White@ChemicalAngels.com

www.ChemicalAngels.com

We stimulate the growth of the Chemical Economy by providing financial capital and experienced mentorship to seed and early

stage chemical companies

∗LLC Formed in 2001 ∗Development and commercialization of

innovative thermal treatment technology for processing organic materials into fuels, chemicals, biochar, and syngas

∗Raised roughly $5MM through 2013

Renewable Oil International

∗Formed Renewable Oil International MD LLC in 2013

∗Patent received 9/1/15 ∗Current focus: poultry litter on MD

Eastern Shore ∗Just received $1.2MM contract from

MD Dept. of Agriculture

Renewable Oil International