1. Connecting to Global Markets:
Defining Value & Building Business Models
PROPRIETARY AND COPYRIGHT 2011
Victor W. Hwang | 310.663.0324 | victor@t2vc.com

2. A great paradox
Breakthrough ideas & entrepreneurial zeal
are everywhere…

3. However ...
… The venture ecosystems to grow “killer”
companies are historically limited.

4. WHY?

5. Strategic
Intellectual Property Management
Venture Capital
Legal
The Classical Startup: Sand Hill Road

6. A CHANGING WORLD…

7. CASE STUDY: T2VC’S IMPACT ON ONE STARTUP
Expertise
Expertise Expertise
Technology
Expertise,
Capital,
Advisor
Partners
Partner
Marketing Expertise
Advisor
Advisor
Capital
Customers

8. Larta Institute
$1B/year
400 startups
USAID
World Bank CONNECT
T2VC
State Dept. $40M/year
Policy:
Singapore,
Chile, Australia
We sit in the middle of a vast global web of over $4B per year
in innovation investment. We grab opportunities, open
markets, and make connections to grow companies.

9. T2VC is venture capital for global
innovation.
We use capital as a lever to grow
innovation economies.
We see over 1,000 opportunities a year from our network of
100+ universities, research institutes, and strategic players. We
help our startups with contacts, insights, and expertise based on
30 years connecting global entrepreneurs, innovators, and
governments.
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10. What We Won’t Cover
Business Plans

11. It Starts With the Vision
Envisioning a future state…
• What is the objective?
• Where is the pain?
• What are the current solutions?
• What makes you special?
• Where are you heading?
• Why YOU?
– What drove you to this?
– What is the “passion play”?

12. Value Proposition:
The Heart & Soul
• What is the “Market Pain”?
• How does your product address the Market
Pain?
• What is different about your product?
• Why would a customer buy from you?

13. Do you Really Have a Value Proposition?
• Make an honest assessment.
• Do you really have a product, or is it just
a invention?
• What is your true value to the
consumer, end-user or patient?
• Are you solving a real problem? Are you
addressing a real need?

14. Do you Really Have a Value Proposition?
• Do you have something that people will
actually pay for and continue to use? (will the
dogs eat the dog food?)
• Can it be made at a price that the market can
absorb?
• Can it be made at a cost that allows for
profits?
• Is the ADDRESSABLE market large enough
to be viable?

15. Business Model
• What is your strategy?
• How will you make money?
• Who are your customers and why will they pay
for your product?
• Make a credible presentation of your
addressable market
• Revenue, cash flow, profitability
• How do you plan to grow your company?

16. What Is a Business Model?
• Diagram of flows between company and
customers
• Scorecard of hypotheses testing
• Rapid change with each iteration and pivot
• Founder-driven

17. 9 building blocks of a
business model
Thanks to Business Model Generation (Alexander Osterwalder) andSteve Blank

18. CUSTOMER SEGMENTS
which customers and users are you serving?
which jobs do they really want to get done?

19. VALUE PROPOSITIONS
what are you offering them? what is that
getting done for them? do they care?

20. CHANNELS
how does each customer segment want to be
reached? through which interaction points?

21. CUSTOMER RELATIONSHIPS
what relationships are you establishing with each
segment? personal? automated? acquisitive? retentive?

22. REVENUE STREAMS
what are customers really willing to pay for? how?
are you generating transactional or recurring revenues?

23. KEY RESOURCES
which resources underpin your business model?
which assets are essential?

24. KEY ACTIVITIES
which activities do you need to perform well in
your business model? what is crucial?
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25. KEY PARTNERS
which partners and suppliers leverage your model?
who do you need to rely on?

26. COST STRUCTURE
what is the resulting cost structure?
which key elements drive your costs?

27. key value customer
activities proposition relationships
key customer
partners segments
cost revenue
structure key streams
resources channels
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images by JAM

28. sketch out your
business model

30. 9 Guesses
Guess
Guess Guess
Guess
Guess
Guess Guess
Guess Guess