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  1. 1. Overview DocumentRetaiLinkRetaiLink provides a collaboration platform for retailers to effectively manage tradefunding to meet desired objectivesE245 Class UpdateArne H, Beyang L, Soumya M, Mithun SFeb 26, 2012
  3. 3. Team Structure First andMithun Sheth Arne Hartmann last nameSoumya Mohan Beyang Liu TitleSummary of experienceSummary of experienceSummary of experienceSummary of experience 8+ years of management 10+ years experience in Growth 2 years experience working as an 2 years of enterprise softwareconsulting and operationsEquity investments and Techengineer with an early stage development experience forexperience M&Astartup with top telecom financial verticaloperators as customers.Areas of expertise Areas of expertiseAreas of expertiseAreas of expertise Developed innovative consulting Extensive experience in aligning Computer vision & machinesolutions with focus on retail business models with market to Design, development andlearning research in Stanford AI drive value. marketing of mobile applications Lab (3D reconstruction, action Driven by strong entrepreneurial recognition, and semantic sceneskills and also been founding Structured numerous rounds of Mobile wireless networksegmentation)member of few startups.growth financing through equityconnection management and debt. Core developer for interactive Built global delivery teams that Enterprise software qualitylarge-scale data analysis platformhave bought numerous newassurance (experience at for banks and financeservice offerings to market Microsoft)generating more than$30 MM in revenues. Managed and recruited engineersSloan 2013,Sloan 2013,Mgt Science & Engineering Computer Science 2013, Stanford GSB Stanford GSB2013, StanfordStanford3CONFIDENTIAL DO NOT SHARE
  4. 4. Orchard View Hardware development Partnership with soil (Camera array We deliver agriculture Sell service for periodicsensing companiesinformation to growers,farm review Our technology canmounted on cart)be applied to mostwith whom our Machine-learning using computer vision Dedicated sales teamproduct offering can technology which helps to help provide insight fruit and nut cropscomputer visionbe combinedmanage crop yield andinto the farm issueswith somealgorithm(Leverage go-to- reduce cost for farmers. based on data adaptation. GUI development -market alliances) Orchard sign up for our Drive the cart and relay Partnership withservice Our cart periodicallythe information on a We plan to tacklechemical companies tours the orchard andcloud based platformthe following in ourthat help accelerate takes images of theinitial outreach leaves and trees and almond, walnuts,our offering to reach identifies issuesoranges and grapes.their customershelping growers take Support from cart (Primarily driven by corrective measures Directly to Grower geography, marketproviders to make Current methods Team with expertisecommunity or through value of crops,modifications (asdeployed by farmers toin computer vision / Co-ops growing season andneeded)detect issues in treesmachine learning In partnership withbusiness need in the Partnership with are either based on Domain expertise inPest Control Advisorsorchards)Almond / Walnutsampling, aggregateagriculture farm-and independentboard to help push information or driven byrelated issues consultantsour technology highly labor intensive Understanding of Potential process.agriculture valuearrangements withchainHeavy Equipment manufacturers Fixed cost : Cart, camera sensor and array of add ons Subscription based service fee model of $15-$25 per acre, Infrastructure: Includes computer, server, software, and other per trip expenses Service required multiple times before the harvest season Variable Cost: Includes gas, driver, transportation, and other cost Other Recurring Cost : Advertising, Website, Rent, Utility, Inusrance, Travel and other expenses4CONFIDENTIAL DO NOT SHARE
  5. 5. Orchard View - Early stumbling blocks Market issues Farmers did not see it as a big need and not ready to pay a lot Class did not coincide with harvesting seasons for target crops leading to challenges in prototyping and customer discovery Technology issues Current state of research in the space is primitive Challenging to prove the exact value-add in prototype stage Customized algorithms required for each crop and disease Team issues The whole team was not passionate about the idea.Fail Early, Fail fast !Restarted from a blank slate !5CONFIDENTIAL DO NOT SHARE
  6. 6. Birth of RetaiLink 6 CONFIDENTIAL DO NOT SHARE
  7. 7. Value Proposition FeaturesThe Path to MVP Collect initial customer feedback and only then showcase the wireframeFilter Focus only on the key features in initial design Reduce MVP further to bare minimum Build MVP does not need to be functional!! Wire frame gets 95% of validation in 10% of the time. Iterate MVP based on feedback MVP Helps understand dynamics between different stakeholders 7CONFIDENTIAL DO NOT SHARE
  8. 8. Customer SegmentsFOCUS : Who to Sell ? How to Sell ? Category managers are primary users who can Eliminate other retailer segments initially tovalidate the need but cannot make thefocus on the grocery retailers based on needpurchase decision Map out customers according to technology SVP Merchandising is the primary decisionadoption and their size maker Parse through latest top industry journals Category managers at all ranks below SVPto figure out the early adoptersand IT heads are key influencers Speak to competitors and other suppliers CPGs are influencers of the decision makingto identify early adoptersand may be paying for it indirectly8 CONFIDENTIAL DO NOT SHARE
  9. 9. Key Learnings for Channel / Revenue and SaaS economicsChannelsSaaS Economics (5 Cs of CloudComputing) SaaS based delivery model Direct Sales Force Committed Monthly Recurring Revenue System Integrators / Consulting partners willNOT be interested in product offering at the early Cash Flow Gross / Net Burn RatestageRevenues CAC Customer Acquisition Cost Charge both CPG / Retailers a tiered pricing CLTV Customer Lifetime Valuestructure per category ($/category) Additional fees for Advanced Analytics/Reporting capability can be leveraged Churn or Renewal Rate (Logo churn, CMRR No Implementation, maintenance or churn or CMRR Renewed)performance based pricing will work in the retailspaceSource: Interviews, Bessemeer Venture Partner (Articles on Cloud Computing)9CONFIDENTIAL DO NOT SHARE
  11. 11. Fieberkurve Week 8: 1st Pilot User Week 10: What next? Week 3: New IdeaWeek 4-7: 10 Interviews? Really?Week 2: Drop or Step up? 11CONFIDENTIAL DO NOT SHARE
  12. 12. Lessons as an entrepreneur CustomerCustomer discovery can lead into successful business proposition but it is Discoveryimportant not be in selling mode (Raleys, Schnucks, Target) Customer discovery is to validate the intuition and not to give you the coreidea Avoid confirmation bias during customer discovery for entrepreneurespecially when showing the wireframe Understand different perspectives and take all advice with a grain of salt Managing Start Up Each startup has only few key numbers that need to be validated. Understand what they are to manage your business Passion in the team is a key element to success (especially when you are dealing in the enterprise space) Competition A crowded space with competitors does not mean anything. Need to understand the gaps in the current space to evaluate if you can sustain a start up Market research mainly analyzes the history and not the current need. So key to get out and speak to customers. 12 CONFIDENTIAL DO NOT SHARE
  13. 13. Appendix 13 CONFIDENTIAL DO NOT SHARE
  14. 14. Value Chain of Retail industryTrade Funds ($200B)Promotion, New Items, Display, Supply chain etc..Product SupportNewspaper Ads, Display, Temp.Price Reduction etc.. Online collaboration platform that providesthe right decision support for retailers and a collaboration platform for CPG 14CONFIDENTIAL DO NOT SHARE
  15. 15. Ecosystem Data provider (Nielsen, RSi) RetaiLink Trade funding system-Retailerof-recordCPG (Tradepoint, Nopa)ERPModeling tools Modeling tools(Oracle)(Excel, DemandTec) (Excel, custom)3rd party systems integrator (IBM) 15 CONFIDENTIAL DO NOT SHARE