New Media Entrepreneurship At Global Village

Slide 1: NEW MEDIA ENTREPRENEURSHIP Global Village 2008 Lehigh University, Iacocca Institute Maya Elhalal (www.MayaElhalal.com)

Slide 2: What’s so great about it? Why now you can… OK. but what? and how?

Slide 3: THIS IS ME…

Slide 6: 6 © Maya

Slide 7: Beach of Tel Aviv, Israel

Slide 13: IDC Global Entrepreneurship MBA Program

Slide 15: “When I was a kid, I knew the secret to a happy life. Play by the rules, work hard in school. And if you work hard in school, then your reward is… more school. And after more school, you are given the best that life has to offer, a job and money and a future, filled with unending pursuit of more…”

Slide 17: THE FOUR HOUR WORK WEEK • New Rich vs. Deferrers • New currency: Time & Mobility • Financially rich vs. Millionaire lifestyle

Slide 18: this is me…

Slide 19: this is me…

Slide 20: WHAT IS IT FOR YOU?

Slide 21: now you can…

Slide 22: Fall of Berlin Wall in 11/9/89

Slide 23: THE FALL OF THE BERLIN WALL • Liberate people of the Soviet Empire • Tipped balance of power to democracy 1991: India open to international trade  7% • • Formation of the European Union “The Berlin wall was not only blocking our way it was blocking our sight – our ability to think about the world as a single market, a single ecosystem and a single community” The World is Flat

Slide 24: 100 most important Tim Berners Lee people of the 20th century

Slide 25: “Thomas Edison got credit for the light bulb, but he had dozens of people working in his lab on it. William Shockley may have fathered the transistor, but two of his research scientists actually build it. And if there ever was a thing that was made by committee, the internet – with it’s protocols and packet switching – is it. But the World Wide Web is Berners Lee alone. He designed it… And he … fought to keep it open, nonproprietary and free.” Time Magazine 6/14/1999

Slide 26: THE NET VS. THE WEB

Slide 28: WORKFLOW SOFTWARE

Slide 31: OUTSOURCING • Outsourcing means taking some specific but limited function that your company was doing in house and having another company perform that exact same function for you and then reintegrating their work back into your overall operation. • Fiber optic bubble • Y2K

Slide 32: OFFSHORING • Offshoring is when a company takes one of factories and moves it offshore. • 2001, China formally joined the WTO

Slide 34: Collective Intelligence

Slide 35: The Wisdom of Crowds Sir Francis Galton, 1906

Slide 36: THE CHALLENGER CRASH 1986 Take off Crash 11:38 EST on the 28/1/86 74 seconds after take off

Slide 37: THE CHALLENGER CRASH 1986 • 4 companies contracted by NASA: – Rockwell International - shuttle and engines – Lockheed - manager of ground support – Martin Marietta - external fuel tank – Morton Thiokol - fuel booster rocket

Slide 38: THE CHALLENGER CRASH 1986 -3% -12%

Slide 39: JANUARY 30TH 1986 “It will be months before NASA has any real answers to the question What went wrong with the Challenger?” Financial Times © Maya Elhalal 39

Slide 40: “It will be months before NASA has any real answers to the question What went wrong with the Challenger?” Financial Times

Slide 45: © Maya Elhalal 45

Slide 46: DIGG.COM

Slide 47: DIGG.COM

Slide 49: COLLABORATIVE RESEARCHING

Slide 50: Easier than ever before…

Slide 51: but what?

Slide 52: INTERNET EVOLUTION TO 1B USERS Information Commerce and Socializing and Communication Networking Publish Talk Trade Buy Read 1994 1998 2000 2003 2006 User 77M 400M 500M 1000M

Slide 54: MAKING GREETING CARDS – TOP 1%

Slide 55: “The biggest mistake people make in life is not trying to make a living at doing what they most enjoy” - Malcolm S. Forbes (1919-1990)

Slide 56: WHAT IS IT FOR YOU?

Slide 57: and how?

Slide 58: The Bumpy Road of Entrepreneurship marketing devel design specs idea Web 2.0 Principles and Practices © Maya Elhalal

Slide 59: SEARCH ENGINE MARKETING Search Results Click!

Slide 61: PEOPLE TALK • Word Of Mouth: “The act of consumers providing information to other consumers.” • Word Of Mouth Marketing: “Giving people a reason to talk about your products and services, and making it easier for that conversation to take place.” 61 ©

Slide 62: FLIPPING THE FUNNEL

Slide 63: BUZZ MARKETING Buzz  63 ©

Slide 64: SIX BUTTONS OF BUZZ • Time tested conversation starters: 1. The Taboo (sex, lies bathroom humor) 2. The Unusual 3. The outrageous 4. The hilarious 5. The remarkable 6. The secret (kept and revealed)

Slide 65: TABOO

Slide 66: ORGANIC - ORGASMIC

Slide 67: UNUSUAL

Slide 68: OUTRAGEOUS

Slide 69: HILARIOUS

Slide 70: REMARKABLE BLENDERS

Slide 71: MARKET COST OF ENTRY Market Share Cost of Entry* Monopoly >75% x3 Duopoly >75% x3 Unstable Market >26% x1.7 Open Market <26% x1.7 • * vs Leader’s Sales/Marketing Budget • The New Lanchester (war) Strategy

Slide 72: WILL IT BLEND?

Slide 73: WILL IT BLEND • Over 50 shows • Millions of views per show • 381,000 for "will it blend".

Slide 74: SECRET • “I’m not supposed to tell you this but…” • Withholding creates curiosity • Gmail’s scarcity strategy  $200 accounts

Slide 75: CAPTURE THE MEDIA News Worthy! 5 most frequently written news stories: 1. The David and Goliath story 2. The Unusual or Outrageous story 3. The Controversy story 4. The Celebrity story 5. What’s already hot in the media

Slide 76: MASS MARKETING VS. VIRAL MARKETING The masses The mildly interested The Mass Market Most targeted customers 76 © www.MayaElhalal.com

Slide 77: MASS MARKETING VS. VIRAL MARKETING The masses The mildly interested The Mass Market Most targeted customers 77 © www.MayaElhalal.com

Slide 78: MASS MARKETING VS. EVANGELISTS The masses The mildly interested The Mass Market Most targeted customers 78 © www.MayaElhalal.com

Slide 79: MAKE SURE YOU ROCK! Thrilled! Satisfied Customers Talk

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Slide 81: © www.MayaElhalal.com Web 2.0 Principles and Practices 81

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Slide 86: PRWEB

Slide 88: EXCHANGE MONEY Money Ownership

Slide 89: EQUITY CAPITAL SOURCE BY STAGE Private Equity New Concept Prototype Growth Profitable Product Stage: • Pre-seed • Seed • Early Stage • Late Stage • Established IPO Source: • Founders • Friends & • Series A (B) • Series B C D Family Angels / VC VC

Slide 90: 1000 BUSINESS PLANS VC SCREENING ES 500 BDP 100 Meeting 50 Competition DD 10 Investments

Slide 91: Internal Financing by Founders

Slide 92: OPM - Know What You're Getting Into

Slide 93: Friends and Family

Slide 94: Angels

Slide 95: Angels

Slide 96: Venture Capital

Slide 97: Ideal VC Candidate

Slide 98: HOME RUN • Looking to raise $10M • For 10% of the company (value $100,000M post) • Sell to Fortune 500 corp. in 5 years • For 7x present value (value $700,000M) • VC exit after 5 years and gets $70M

Slide 99: TheFunded.com

Slide 100: New Concept Prototype Growth Profitable Product • 1994 • 1995 • 1995-6 • 1996 • 1997 • Jeff Bezos: • Parents: • 2 angels: • 2 VCs: • IPO: invest $10K $245,000 $54,408 $8M $49.1 M borrow $44K • Syndicate 20 angles: $937,000 • Siblings: $20,000

Slide 101: Why most persentations fail…

Slide 102: THE LITTLE MAN TECHNIQUE • Why should the investor care? The Little Man Technique (Art of the Start) 1. You say a feature 2. Little man asks “so what?” 3. You reply with the benefit 4. Elaborate with an example

Slide 103: “we provide 128 bit encryption. So what? This means it’s practically impossible to break into our system. For instance, if you want to access your data remotely you can be confident the connection is secure ” (Art of the Start)

Slide 104: MUST HAVE SLIDES Title EP POC Overview Business Need TAM Solution Model Competition Edge Marketing Team Status and Financials Summary Logo Investment

Slide 105: OPENING GAMBIT • Elevator Pitch – Customer  Need  Solution  Edge 90 sec’. Go… • Proof of Concept – Validates the opportunity and – Gives instant credibility to the team – Technological achievements – Sales achievement, endorsement…

Slide 106: OPPORTUNITY • Need – The problem or pain you are alleviating • Market Size and Growth Projection (impress no one…) – (anyone can) quote of a well-known research firm – (and) manipulated market projections to grow to $5B • Total Addressable Market (is what really matters) – Personal and professional credibility

Slide 107: LEVERAGE • Solution – how you alleviate the pain • Business model – how you will make money, value chain, proposition • Competition – what solution are available

Slide 108: LEVERAGE • Edge – your superior secret sauce • Marketing – how you plan to acquire customers • Management Team – why you can do it

Slide 109: LEVERAGE • Financials – 5 year forecast and financial metrics – i.e. conversion rate, cost per conversion, life time value of user… • Status and Investment – Milestones you have achieved so far and timeline – How much you need and how far it will take you

Slide 110: DO • When presenting to F&F – Explain the risk and time to return capital • When presenting to Angels – Address nonfinancial motivation – Make it easy for them to get spouse’s agreement

Slide 111: TOP 10 VC DO 1. Conduct thorough investor research 2. Approach those who buy what you sell 3. Get introduced and endorsed 4. Prove the 5Y 10X business opportunity 5. Assemble a strong management team 6. Do thy homework on competitors 7. Create a competitive advantage 8. Prepare for Q&A and take notes 9. Disclose everything early 10. keep burn rate under control

Slide 112: TOP 10 DO NOT 1. Send a plan to info@VC-Name.com 2. Don’t hand out the presentation 3. Be arrogant, no one likes jerks 4. Say you know when you don’t 5. Present on autopilot 6. Build top-down projections 7. Talk about exit if you have nothing exciting to say 8. Don’t shop to multiple partners in a firm 9. Accept a long drown out ‘maybe’ 10. Leave empty handed

Slide 113: Additional recourses on venture financing

Slide 115: “The world that we must seek is a world in which the creative spirit is alive, in which life is an adventure full of joy and hope, based rather upon the impulse to construct than upon the desire to retain what we possess or to seize what is possessed by others. It must be a world in which affection has free play, in which love is purged of the instinct for domination, in which cruelty and envy have been dispelled by happiness and the unfettered development of all the instincts that build up life and fill it with mental delights. Such a world is possible; it waits only for men to wish to create it.” Bertrand Russell

Slide 116: idea Web 2.0 Principles and Practices © Maya Elhalal

Slide 117: Need Directions? Contact… Maya Elhalal www.MayaElhalal.com Maya@MayaElhalal.com Web 2.0 Principles and Practices © Maya Elhalal