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The Jason MaynardSoftware HourThe Greatest TechnologyConference Call Ever.

Category KingsWhy One Company Takes All Economics

Al Ramadan

Dave Peterson

Christopher Lochhead

Our goal is to give you a new lens to increase your odds.

The old lens.

“We make shit and sell shit and everything else is bullshit.”

The new lens.

Category DesignThe discipline of creating and monetizing new markets.

Category Design

Com

pany

Des

ign P

roduct Design

Category

King

$3.33 12 pack$0.27 per 12 oz can

$19.98 12 pack$1.67 per 1.93 oz bottle

Not an Accident.

Everything we believe about the value of any given category of product/service we’ve been conditioned to believe.

Category Design Increases The Odds

• Customers need new categories as mental tags to organize new products in their minds

• Before customers care about what a new product does they have to understand what problem it solves

• Categories create hierarchies of value• Must have• Nice to have• Not interested

Condition The Market.

The company that designs the category, is best positioned to dominate the category.

Category Kings"If the category is big enough and the category king is dominant enough, current valuation is almost irrelevant. The key to making investment decisions is understanding category potential and the ability of the category king to define, develop and dominate the space over time," Jason Maynard

Managing DirectorWells Fargo Securities

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The Odds

Less than 1% of VC-backed technology companies are ever worth $1B or more.

Play Bigger Time To Market Cap Report

Since 2000 the United States has produced only 83, $1B+ market cap technology companies.

Play Bigger Time To Market Cap Report

Winning technology companies are growing in value almost 3X faster now vs. the early part of this century.

Leading consumer tech startups are growing market cap at more than $600m per year.  

Leading enterprise companies are growing market cap at more than $100m per year.

Play Bigger Time To Market Cap Report

Survival of the Fastest

Since 2000, Play Bigger TTMC 100 companies created over half a trillion dollars of market cap.

Play Bigger Time To Market Cap Report

Category Kings take 70-80% market cap of their space.

Tech companies increasing market cap

by $1 Billion or more per year.

We Discovered11 Super-Unicorns

# Company nameMarket Cap

($Bn)TTMC Velocity

($Mn / Yr)Company Age (Yrs)

4 Snapchat 10.0 3,765 2.7

5 Twitter 22.4 3,091 7.3

6 LinkedIn 28.5 2,195 13.0

7 Airbnb 10.0 1,589 6.3

8 Workday 15.3 1,527 10.0

9 Dropbox 10.0 1,377 7.3

10 Pinterest 5.0 1,144 4.4

11 Square 6.0 1,042 5.8

Play Bigger TTMC 100: 11 Super Unicorns

1 2 3

FacebookMarket Cap: $214.6BnTTMC Velocity: $19,513M/YCompany Age: 11.0

UberMarket Cap: $40.0BnTTMC Velocity: $6,730M/YCompany Age: 5.9

WhatsAppMarket Cap: $21.8BnTTMC Velocity: $4.247M/YCompany Age: 5.1

Most people in our industry do not understand Category Design.

Including most Category Kings.

“It turns out that it makes no sense to go head to head.”

- Bill Hilf, Head of HP Cloud

Microsoft Store.

“We F*cked Up”

“Why did the world need another Facebook”

Chris Messina,Former Googler

Questions That Matter• Is there a category strategy?

• S1• Earnings calls• Website

• Is the CEO an Evangelist for the category• Framing the problem• Creating category potential Vs. competing for existing TAM• Driving a “From – To”

• Are the winning the TTMC race?

Thank You

Christopher Lochhead

Twitter: @lochhead

@playbiggeradv

playbigger.com

© Play Bigger Advisors, LLCall rights reserved

© Play Bigger Advisors, LLCall rights reserved

playbigger.com@playbiggeradv