1. 1. TEAL BridgeFinal PresentationTiffany. Etosha. Alessandra. Lillian3/12/2013 Interviews: 9/148 Total Survey Responses: 163
2. 2. Our Path
3. 3. Video of our pathLink
4. 4. Retractable High Heel ShoesAdditional Highlights
5. 5. Pivots
6. 6. Hypotheses Concluded Key PartnersKey Activities Value Prop CustomerCustomer Manufacturing Product quality Aesthetics is chiefabove all Rel.Segment partners will be Customer service Reliability critical Marketing/promo Shoe should not look Retention High end shoe storestionsfunctional Referrals need to carry the Reducing 2-shoe shoes in order for burden is important high-end customers Versatility important to see and purchase Women who wear high themKey Resources #1 reason women wear heels to work would Online partnershipshigh heels to work is to Channelsfind our product Shoe designer is look professional (e.g. Zappos) will be appealing important imperative The #1 reason women Online Shipping Fundingwear high heels is to Boutique & Dept partnerships will be feel sexy/stylishstores not an option critical Customers find the until demand proven TV partnerships (e.g.design of the(online & trunk QVC) will be telescoping heel shows) importantaesthetically pleasing Cost structure Revenue streams Customers purchase 3-4 pairs every year for going out Encourage repeat revenue by offering different styles fordifferent seasons Total Validated Hypotheses: 22 Total Invalidated Hypotheses: 3
7. 7. 3 Most Surprising Lessons Value Prop.: Aesthetics is chief above all Key Resources: Shoe designer is imperative Channels: Boutique & Dept stores not anoption until demand proven (online & trunkshows)
8. 8. Break-ups and TherapyAdditional Highlights
9. 9. Hypotheses Concluded Key PartnersKey Activities Value PropCustomer Customer Fit w/counselor is most Developing match imp. attributeRel. Segment algorithm requires Organizing group Online acquisition collaboration w/ therapy is a pain point Only small segment ofmodel works for psychologistsfor therapists people looking to betherapy matched with (paid) Insurance wont pay for Credentials / credibility group counselors therapy unassociated is an important attribute Adults experiencing a w/ diagnosed condition People dont see need fortimely and relevant Corporations unwilling preventative counselingtrauma to sponsor therapyKey Urgency is a keyChannels Teenagers who dont want programs not covered by insuranceResourcesrequirement for seekinga counselor to talk to their parents or friends about issues Price is a key Couples going through Heavy marketing & PR People strongly preferimpediment to seeking arelationship issues required to change to meet counselors in-counselor Adults who are isolated perception person Anonymity is a and have sharedprerequisite for seeing aexperiencecounselor Costs structureRevenue streams Customer Acquisition cost via Google Adwords campaign Adverse selection problem when charging counselors monthly vs. per-acquisition1:1 in-person therapy match is a transactional business modelBetter control of revenue stream w/ group Total Validated Hypotheses: 15 Total Invalidated Hypotheses: 6
10. 10. 3 Most Surprising Lessons Value Prop.: Fit is the top priority when findinga therapist, more than cost, creditability orurgency. Revenue Streams: Adverse selection problemwhen charging counselors monthly vs. per-acquisition Key Partners: Insurance will not pay fortherapy for an undiagnosed condition
11. 11. Mystery MingleOverview and AdditionalHighlights Mystery Mingle is a system which coordinates small to medium gatherings, automates ice-breakers and aids in reservations or food ordering.
12. 12. Ecosystem
13. 13. Product-Market Fit
14. 14. Key MetricsConsumer sees ad 4 % delivery3 Usage rate (% sign-up who plan) (5% revenue FacebookPlan Event Mystery Mingle Analyze1 CPC friends profile Select prix- Order foodSite fixe menufor delivery GoogleGuest listsuggestions5 % prix fixe2 ConversionCalendar(15% revenue)rate (sign-up)check: suggestdate/timeGuestsGuestsCustomer signs-uppre-pay chips inSelect game themeLinks to Facebook &Google+ Organizer or friend hosts next event% Participants6 % Returning 7turned organizers
15. 15. Google AdwordsCTR-KeywordsMingle208 clicks in 7 days dating serviceAvg. Cost per click online dating site online dating servicesdisplay networks= $0.16 0% 5%10% 15% 20% 25%Google Search=$1.54CTR-Display Networksgrated.com asiandating.com faxo.commetric-conversions.orgmatch.comcaribbeancupid.comindia-forums.comanswers.com beautypageantnews.com latinamericancupid.comtinybytes.me 0% 20%40%60%80% 100%
16. 16. Business model leverages network effectsNumber of organizers Network effects800,000P Participant700,000 P P P O Organizer600,000500,000 P O P400,000300,000P P200,000 P100,000PP 0Year Year Year Year Year P OP 12345 PP
17. 17. Gross Margin Profitability analysis Year 1Year 52 Conversion rate (percent who sign-up)10% 15%3 Usage rate (percent who organize a mingle) 10% 18%Total organizers13,200 704,3326 % Returning50%7 % Participants turned Organizers 10%Delivery revenue4 Percent of mingles ordering delivery thru site 15% 15%Total delivery revenue$3,168 $422,599Group in-restaurant revenue5 Percent of mingles hosting prix-fixe event in restaurant 10%10%Total in-restaurant revenue $21,120 $3,380,795Yearly ad revenue $28,512$376,693Total yearly revenue$52,800 $4,180,087Average revenue/organizer $4 $6Costs1 CPC$0.12 $0.04Average cost to accquire$12 $1Gross Margin $(105,600) $3,652,087
18. 18. Wireframe
19. 19. Hypotheses Concluded Key Partners Key ActivitiesValue PropCustomerCustomer Alleviates logistical Sell adscomplexity of organizingRel.Segment Build & maintain site events for friends Create community of Recruit partners Facilitates arranging Organizers: Singleadvocates through acreative activities for a womenFacebook pagegroup Organizers: Young wives Loyalty rewardswith active social lives, no Restaurants that deliver Facilitates organizing Referral incentiveskids Restaurant deliverygroups of friends along Organizers: Single men sitessimilar interests or stages Participants: Single Restaurants that hostKey in life Channelspeople large groups People want toResources participate in a mystery Participants: Youngmarried couples with no Techevent organized by their Dedicated website kids Sales force: customer friend Customer acquisition People wanting toand partner acquisition Facilitates collection of through Facebook &indirectly set up single PRfunds Google adsfriends Customer service agents Reduces socialawkwardness of gettingto know new people Costs Revenue streams structure Share of revenue from food ordered for delivery through the site Customer Acquisition Cost Share of revenue for group prix-fixe pre-pay menu Build/maintain site Ad revenue Overhead Booking fee from organizers Total Validated Hypotheses: 23 Total Invalidated Hypotheses: 2 Total Untested: 5
20. 20. Lessons from class Team dynamics can make or break a start-up Lot easier to work on something you are passionate about Important to move beyond the right side ofthe canvas Need to separate emotion from reason Recognize time to pivot
21. 21. Acknowledgements TEAL Bridge would like to thank Mentors Interviewees Classmates
22. 22. Backup
23. 23. Metrics that matter Key MetricWhy it matters 1 Average CPC Determines acquisition cost Conversion rate (visitors who Impacts customer 2 sign-up)acquisition cost 3 Usage rate (sign-ups who organize Impacts customer a mingle) acquisition cost 4 % Mingles ordering delivery Key revenue stream 5 % Mingles organizing prix-fixeKey revenue stream % Returning (% organizers who Impacts lifetime value 6 return subsequent year) % Participants turned Acquisition cost virtually 7 Organizerszero; so lowers average acquisition cost
24. 24. Average acquisition cost declining dueto network effects Acquisition cost per organizer$14$12$10 $8 $6 $4 $2 $0Year 1 Year 2Year 3 Year 4 Year 5
25. 25. Gross Margin Analysis Year 1Year 2 Year 3Year 4 Year 5Population of US 300,000,000300,000,000 300,000,000300,000,000 300,000,000Percent of US unmarried44%44% 44%44% 44%Percent of target population who clicks 1% 2%6% 8% 10%Conversion rate (percent who sign-up)10%10% 12%14% 15%Usage rate (percent who organize a mingle) 10%12% 15%16% 18%New Organizers 13,20031,680142,560 236,544 356,400Participants105600 253,440 1,140,480 1,892,352 2,851,200Participants turned Organizers 10,560 25,344 114,048189,235Existing Organizers 0 6,600 19,14080,850158,697Total organizers 13,20048,840187,044 431,442 704,332% Returning50%50%50% 50%% Participants turned Organizers 10%10%10% 10%Number of participants per mingle 88 888Number of mingles organized per year22 222Mingle revenuePercent of mingles paying fee 0% 0%0%0% 0% $Charge per mingle organized through site $ 4.99 $4.99$4.99 $4.99 4.99Total mingle revenue $- $ -$ - $ - $-Delivery revenuePercent of mingles ordering delivery thru site 15% 15% 15% 15% 15% $Average order amount per person$5 $5 $ 5 $ 5 5Commission on order 2%3% 4% 5%5% $Total delivery revenue $3,168 $17,582$89,781 $ 258,865 422,599
26. 26. Group in-restaurant revenuePercent of mingles hosting event in-restaurantthrough site 10% 10% 10% 10% 10%Average order amount per person$20 $ 20 $20 $20 $ 20Commission on order 5% 10% 15% 15% 15%Total in-restaurant revenue$21,120 $156,288 $897,811$ 2,070,922 $3,380,795Ad RevenueNumber of visits/yr1,425,600 3,030,7209,416,352 14,011,53618,834,658Ad revenue CPM$4 $4 $4$4$4Number of ads site 55 5 55Yearly ad revenue$28,512 $60,614$188,327$ 280,231 $376,693Total yearly revenue $52,800 $234,485 $ 1,175,919 $ 2,610,018 $4,180,087Average revenue/organizer$ 4.0 $ 4.8$ 6.3 $ 6.0 $5.9CostsCPC$0.12 $0.10$0.08 $0.06 $ 0.04Average cost to accquire $12 $5 $ 3 $ 1 $1Total Ad expense $ 158,400 $264,000 $633,600 $633,600 $528,000Gross Margin $ (105,600) $(29,515)$542,319$ 1,976,418 $3,652,087
27. 27. What would it take to be a $10M/Yrrevenue business 20% usage rate 10 people per mingle Each organizer conducting 3 mingles/year 55% organizers return YoY 20% participants turned organizers
28. 28. Google AdwordsLillian-can you makethis pretty 208 clicks in 7 days Avg. CPC = $0.22