nwen startup ideas and business models
DESCRIPTION
Northwest Entrepreneur Network event. 10/1/13. Business models and Big IdeasTRANSCRIPT
![Page 1: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/1.jpg)
Copyright DKParker, LLC 2013
Ideas & Business Models Dave Parker
@DaveParkerSEA
www.dkparker.com
![Page 2: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/2.jpg)
Copyright DKParker, LLC 2013
Agenda
About Dave
Big Ideas/Big Markets
Business Models
Q&A
![Page 3: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/3.jpg)
Copyright DKParker, LLC 2013
About Dave
VP Programs at UP Global (Startup Weekend + Startup America)
Serial Entrepreneur
EIR at Mitsui Venture Capital
Board member for four mid-market, handful of startups and advisory board for over 50 startup companies + NWEN
Husband, Dad
![Page 4: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/4.jpg)
Copyright DKParker, LLC 2013
Big Idea/Big Markets
![Page 5: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/5.jpg)
Copyright DKParker, LLC 2013
Markets
Who Buys from You?
Business to Business
Business to Consumer
Established vs. Immature
What is a Market?
![Page 6: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/6.jpg)
Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource
Am
ount
Inve
sted
($B
) N
umber of D
eals Investment Falls in 2012
Deal Flow and Equity into Venture-Backed Companies
![Page 7: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/7.jpg)
Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource
Industry Allocations Steady in 4Q’ 12 Deal Flow Allocation by Selected Groups
% D
eal F
low
Allo
cati
on
![Page 8: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/8.jpg)
Copyright DKParker, LLC 2013 Source: Dow Jones VentureSource
Software Loses Pace in 4Q’ 12 IT Investment Allocation by Sector
% o
f D
olla
rs In
vest
ed
![Page 9: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/9.jpg)
Copyright DKParker, LLC 2013
Big Markets?
Is the Market in Billions?
Specific Opportunity for VC >$100M
If you own the market how big would your be
Market Leader vs. First Mover
Known or unknown
![Page 10: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/10.jpg)
Copyright DKParker, LLC 2013
Big Ideas?
Changes the world
Simple
“Aha” idea
Transformational
Changes a market
Complex
Feature or tool
Incremental
![Page 11: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/11.jpg)
Copyright DKParker, LLC 2013
Big Problems
Pain Pill? Have to have it
Vitamin? Nice to have
Who wins if you win?
Do they “win big” or “save a little”?
![Page 12: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/12.jpg)
Copyright DKParker, LLC 2013
It’s takes as long to build a small idea as big idea
![Page 13: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/13.jpg)
Copyright DKParker, LLC 2013
Contrast
Passion!
Ideas!
Product
Doesn’t make it a great business
Execution
Company
![Page 14: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/14.jpg)
Copyright DKParker, LLC 2013
Business Models
![Page 15: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/15.jpg)
Copyright DKParker, LLC 2013
Your Idea (may) be unique. Your business model is not
![Page 16: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/16.jpg)
Copyright DKParker, LLC 2013
B2B Sales Models
Direct – internal sales people (Inside or Outside), # of deals/Month, salary + commissions
Distribution/Channel Sales – Indirect or external, <# of deals/Month, no Salary, just commission <Mindshare. Fulfill demand, don’t create demand
White Label Sales/Licensing – infrastructure or license sales, long sales cycle, few but targeted customers
Web Direct – Advertising and conversion based sales, sales support?, requires customers to search
Retail – N/A
![Page 17: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/17.jpg)
Copyright DKParker, LLC 2013
6 7 “Scalable” B2B Business Models
1. Commerce – Physical Goods- Wholesale, cost of goods, retail, average margin, physical good
2. Subscription – Dropbox – cost of customer acquisition, lifetime value and churn
3. Lead Generation – AllStarDirectories – traffic, form data, price per lead,
![Page 18: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/18.jpg)
Copyright DKParker, LLC 2013
6 7 Scalable B2B Models, Cont.
4. Market Place – Alibaba – average transaction, commission on transaction But start with one side
5. Transaction Fees – Flattr, KickStarter – average transaction fee, commission
6. Combinations – Multisided markets – hardware sensors, software services with data analytics
7. Non-profit -
Scalable doesn’t include services – Others?
![Page 19: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/19.jpg)
Copyright DKParker, LLC 2013
13 B2CModels
TechCrunch Teardown: 13 Consumer Internet Business Models (Part I) « The World According To Carp http://fndri.com/jEvuYa - Steven Carpenter Media
Paid Service
Physical Commerce
Kfactor businesses don’t need a model
![Page 20: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/20.jpg)
Copyright DKParker, LLC 2013
![Page 21: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/21.jpg)
Copyright DKParker, LLC 2013
![Page 22: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/22.jpg)
Copyright DKParker, LLC 2013
Your examples
What model will you use? How will you model it?
Example
![Page 23: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/23.jpg)
Copyright DKParker, LLC 2013
![Page 24: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/24.jpg)
Copyright DKParker, LLC 2013
Q&A
![Page 25: NWEN Startup Ideas and Business Models](https://reader034.vdocuments.mx/reader034/viewer/2022051110/54c94de74a7959dd228b4678/html5/thumbnails/25.jpg)
Copyright DKParker, LLC 2013
Founder Institute www.fi.co/apply/159
15 Week Early Stage Accelerator Program
Monday nights beginning in November – including dinner
Graduation in March
$995