This document outlines the key elements of a business plan for a company called eVent that produces an intelligent remote HVAC vent system. The system uses Bluetooth technology and cloud software to optimize HVAC performance in homes by learning user preferences and balancing air flow. Key partners include engineering firms and potential future partners include technology companies. The value proposition is energy savings and cost reductions for homeowners and upsell opportunities for HVAC contractors. The target customer segments are homeowners and building contractors.

2. Key Partners
Key Activities
• SunMan Engineering
• Design
• Fathom Design Studio
• Engineering
• Bluetooth
Future:
Future Possibilities:
• Agile Development
• Google
• Sales & Marketing
• PayPal
Key Resources
• Amazon
• PG&E
• Intellectual Property
• Design Talent
• LEED Building
• Electrical Engineering
(test hypothesis:
Channel, Customer,
Problem, )
• Mechanical Engineering
• In-house Legal
• Customer Development
Value
Proposition
(test hypothesis:
(test hypothesis:
Product, Market Fit, Demand Creation)
Competition/
• Reliable performance
Substitutes)
• Performs as Promised
• End-user Electricity
Cost Savings
• Low total cost of
ownership
• Product savings paysback initial up-front
cost
• Improve overall HVAC
system performance
• Upsell opportunity for
installers
• Environmental
Solution
Cost Structure
• Product Development
• Fabrication
• Testing
• Customer Research
• Salary
Customer
Relationships
• Delivers end-user cost
saving benefits
Channels
• Direct (web)
Transactional
• Direct (Sales)
Relationship
• Indirect / Online
• Indirect / Retail
Revenue Streams
(test hypothesis: Size of the
Opportunity/Market, Validate
the Business Model)
(test hypothesis: Pricing Model)
• Per unit sales (currently zero)
Customer
Segments
(test hypothesis:
Problem, Customer,
User, Payer)
• B2B Homebuilder serving
B2C Homeowner

3. Customer Need

4. HVAC Energy over HALF of Residential Electricity Costs
54%
The Opportunity
Source: Charleston Wise, A Program of The Sustainability Institute, Link

5. Product Positioning: Home Builders
For home builders who want to
improve HVAC system stability,
the new eVent is an automated
vent that helps prevent harmful
backpressure that can freeze or
overheat supply units. Unlike
traditional vents, eVent reduces
total cost of ownership of
central heating, and creates a
unique selling point.

6. Product Positioning: Home Owner
For home owners who want to lower electricity bills, the new
eVent is a wireless vent that optimizes HVAC heating and
cooling. Unlike traditional vents, eVent learns your preferences
and helps you save money.

7. Gear Up
Cost savings
Comfort
Conservation
DELIGHT
EFFICIENCY
FUNCTIONALITY
Building Contractors:
• Improve HVAC system performance
• Upsell opportunity
Residential Home Owners:
• More stable air conditioning
• Self-learning, automated. (touchless)
DIY Retailers
• Increase av. rev. per customer / upsell

8. The Solution

9. Product/Service: Intelligent Remote HVAC Flow Management

10. Filed Utility Patent in 2012

11. Whole Product Offering
Target Segment
Name: Tom Quin
Age: 45
Location: San Jose, CA
Occupation: HVAC Contractor
Salary: $115,000
Compelling Reason to Buy:
Likes the idea of upselling
HVAC products; wants to help
prevent premature HVAC
failure.
Enviro- Cost
friendly Savings
Reduce
Emissions
Affordable
Low TCO,
contractor priced
Opportunity to
Upsell
Reduce system
failures
Reliable
Long battery life,
solid hardware
Automated system
does the work
Delight
Modern design
Intuitive
A service,
not advertising

12. How it Works
eVent Cloud Software
eVent Hardware
Online Self Learning
Vent System Balancing
Electricity
Savings

13. The Benefits

14. Value Proposition: Cash Savings
eVent targets a 10% HVAC energy reduction,
saving U.S. home owners up to $108 per year*
Consumer Pain Point
The typical U.S. family spends at least
$2,000* a year on home electricity bills.
*Source: American Council for Energy Efficient Economy, 2012. http://www.energystar.gov/index.cfm?c=products.pr_pie
** Company Estimate: ($2,000 X .54 = $1080. $1080 X .10 = $108)

15. Profit Model

16. Market Size
“The home energy management systems market is valued
at $1.5 billion in the US, according to GTM Research…By
2017, that number will more than double to surpass $4 billion¹”
769K
NEW U.S. HOMES
BUILT last year
70M
U.S. OWNER
OCCUPIED HOMES
with Central HVAC³
3.4K
U.S. HOME DEPOT
& LOWES STORES
Sources: 1. “The Power We Don’t Use”, Christian Science Monitor Oct. 7 2013.
2. http://www.census.gov/construction/nrc/pdf/newresconst.pdf
3. http://www.eia.gov/consumption/residential/reports/2009/air-conditioning.cfm

17. Market Size - Target
Total
Available
Market
Served
Available
Market
59.5M
*TAM Calculation:
70M Homes Central Heated X .85% Online =
59.5M homes. US Census Bureau Data.
*SAM Calculation:
480K Nest Thermostats Annually Sold X $250 =
$120,000,000
Homes with
Central Heating
and Internet
$120M
382K New
Homes each
Year
Target
Market
2.5%Dof New
Homes = 19,100
Yr 1 $1.9M

18. Logic of the
Business

19. Technology Adoption Life Cycle (TALC)
What is it?
Innovators

20. Win-over Home Contractors
75%
Market
Share

21. Indirect Network Effects
(Sales Reps)
Win Contractors
Big Box Retailers
Residential Consumers

22. The Verge, Engadget,
TechCrunch, TechHive, Twitter
Slashgear, CleanTechnica,
Greentech Media, ZDNet, MIT
Review, GigaOM, AllThingsD,
GreenUnivers, PC World YouTube
Online Facebook blogs.hbr.org
Offline
SJ Mercury
Advertorials
NPR
Wired, FastCo, Inc., Old House
Entrepreneur
Nightly
Reuters, FT, WSJ, News: NBC
Amazon
LinkedIn
Reviews
Free Samples Bundles
Shares
Facebook
Recommendations
Website Tiger
Amazon Direct
Reviews
HVAC Conferences
PG&E Energy Efficiency
Workshops
Lowes
BB&B
WOM
Home
Depot
Service
Service
Loyalty
Community
Go To Market Funnel
HVAC
Forums LinkedIn
Transaction
Consideration
IEEE Spectrum
Awareness
Lower
Higher

23. Competition

24. Top 8 Differentiators vs. Substitutes
Feature / Product Pressure Damper
Traditional Vent
eVent
Cost
Web-enabled
$80 - $170
No
$3 - $25
No
$25
Yes
Remote Activation
No
No
Yes
Self-learning
Integrated
Thermometer
No
No
No
No
Yes
Yes
Motion Detector
No
No
Yes
Usage Analytics
Interchangeable
faceplates
No
Not Applicable
No
No
Yes
Yes

25. Competition
Keen Home
eVent
Pricing
$150 (includes 4 vents)
$100 (4 vents); or $25 ea.
Battery Life
1 year
Over 1 year
Product Benefits
shorten HVAC run time
Prevent spatial zone
overheating/overcooling
Intellectual Property
?
Yes
Team Members
2
4
Funding
$40,000 Indiegogo
Self-funded
Wireless Standard
ZigBee Home Automation 1.2 Bluetooth® 4.0
Production Ready
Q3 2014
Q3 2014
Go-to-Market
Web, Consumers
Web, Contractors
Manufacturing
New York
San Jose, California