uploaded with permission from Piyush Chaplot of Innosight Ventures

1. How to build a viable business model:
An Investor’s perspectives
Piyush Chaplot
pchaplot@innosight.com
1

2. Piyush’s Background
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 2

3. Innosight Ventures – Background
 Innosight (US) founded by Prof. Clayton Christensen
of Harvard Business School in 2000 to help clients
apply the theories of Disruptive Innovation, “jobs
to be done” and “emergent strategy”
 Strategy consulting engagements, primarily with
Fortune 500 companies
(e.g., P&G, J&J, Medtronic, Microsoft , Unilever, …)
 Innosight Ventures (Singapore)
 Incubate startup companies which we
believe have Disruptive Innovation potential
 Backed by National Research Foundation
 Focus on Singapore-based early-stage startups
 Investments up to S$600K
 Board participation, hands-on involvement
 Started in 2009. 6 startup investments to date.
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 3

4. Great idea = Great Business?
Software-based audio mixing
console. Breakthrough usability,
cost effective, disruptive to a
large industry. (approx. $1
billion)
 Tried, and tried, to sell
through traditional pro-audio
distribution channels
 Industry space with few
high-visibility acquisitions
 The pro-audio geeks like
their complex mix consoles.
Was this product really a
pain killer they wanted?
 Company failed after 3 years
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 4

5. Turning an idea into a viable
business
Kiosk-based laundry services for
the masses. Clear job to be done
in emerging markets. Multi billion
dollar opportunity.
 Started with kiosk based
model. Very competent CEO.
Unit economics working but
not enough to cover
overheads.
 Tried Hub and Spoke but failed.
 Tried franchising but failed.
 Successfully pivoted to a home
delivery solution now and
raised Series A from
independent investors.
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 5

6. Investor’s delight
• Proven Unit economics
• Creative customer acquisition strategies
• Getting paid particularly in B2B type
businesses
• Shorter product development lifecycles.
• Overall bottoms up business plan that makes
sense.
• Raising enough to survive for 18 months
• Not just a very local/lifestyle business (Scalability)
• Real planning (not just for investors)
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 6

7. Stages of business model implementation
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 7

8. Questions?
Piyush Chaplot
Innosight Ventures
pchaplot@innosight.com
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 8

9. Pause to Ponder
©2012 Innosight Ventures Pte. Ltd. www.innosightventures.com 9