1. VON NESTING
DUSTIN BLANK, KARA DIMON, TONY HACK, &
SONJA HELLSTROM
Interviews completed in
past 24 hours: 8
Total interviews
completed: 52
Survey responses: 104
Fulfilling the home furnishing needs of
dynamic young professionals by providing
furniture where they need it, when they need it,
and for how long they need it as they “nest”
through life.
Lean Launchpad
2015

2. 2
What We Thought
Day 1
Von Nesting Solution:
• Purchase inventory from West Elm, Pottery Barn, etc. and
rent the inventory for 1-2 years
• Additional revenue opportunities – offer design advice
WHAT?
PROBLEM?
• Furniture rentals for millennials living in cities,
that move frequently
• Want to furnish their apartments tastefully and
affordably
• Ownership of furniture entails many
burdens: high upfront cost, roommates
with partial ownership; fit issues;
delivering/removal issues

3. 3
Value Proposition
We provide high-quality,
chic decorating solutions
at an affordable cost,
while removing the
friction and stress out of
the decorating process.
Our business addresses
the different needs of
how modern day
consumers live in an
increasingly transient
world. We solve the
problem of furniture
being a permanent asset
to consumer – when it
needs to be temporal.
Customer
Segments
High-Frequency
Movers
This group is constantly
transitioning to different
living spaces, while
trying to cut cost in
between. These are
millenials, renters,
students – people who
move a lot and could
benefit from temporal
furniture needs.
Start-up Businesses
These businesses have
short-term furniture
needs on tight budgets.
Channels
• Physical
Showroom
• Interactive digital
Customer
Relationships
• Dedicated
“decorator” team to
ensure satisfaction
and quality control
with product
• Recommendation
engine to alert
customer of new
product they might
like
Revenue Streams
• Revenue from rental contracts to consumers of service
and later from option to buy
• Revenue from designers to be included in catalogue
• Revenue for one-on-one advanced decorator help
Cost Structure
Warehouse, Inventory management, Sales
team, quality inspection team.
Key
Partners
• Designers/
Brands
• Furniture
Stores
• Outlet
Stores
• Interior
Decorators
• WeWork
Type co-
working
spaces
Key
Activities
Relationship
with furniture
companies,
supply-chain
management
Key
Resources
Physical
furniture,
customer lists
Business Model Canvas
Day 1

4. 4
Designers,
Brands,
Furniture Stores,
Outlet Stores,
Interior
Decorators,
WeWork spaces
Key Partners Key
Activities
Key Resources
Customer
Relationships
Value Proposition
Cost Structure
Customer
Segments
Warehouse, Inventory
management, sales team,
refurbishment, shipping costs
Supply-chain
management,
shipping,
delivery, and
pick up,
developing
website
Furniture, customer lists, shipping
materials, refurbishing center
We provide high-quality,
standard furniture needs
chic decorating solutions at
an affordable cost, while
removing the friction and
stress from the furnishing
and moving process out of
the decorating process.
Our business addresses
the needs of young
professionals in major
cities during the transitory
years between college
and “settling down” who
live in an increasingly transient
world. We solve the
problem of furniture
being a permanent asset
by providing high quality
products for one- or two-
year periods with the
option to buy at the end
of the rental.
Interactive website, furniture showroom
Revenue Stream
Channels
Customer nesting
stages:
• Multi-person home
• Single-person home
• Couple home
High frequency Mover
profile:
• 20-30 years
• Young professionals
• City dwellers
• Renters (vs.
homeowners)
This group is constantly
transitioning to different
living spaces, while trying to
cut cost in between. These
are millenials, renters,
students – people who
move a lot and could
benefit from temporal
furniture needs.
Dedicated “decorator”
team to ensure
satisfaction and quality
control with product
Recommendation engine
to alert customer of new
product they might like
GET: paid search, word
of mouth
KEEP: allow them to
exchange furniture,
meet their changing
needs as they move to
new apartments
GROW: cross-sell
other products, up-sell
as they move to bigger
places
Revenue from rental contracts to
consumers of service and later from
option to buy, Revenue from designers
to be included in catalogue, Revenue for
one-on-one advanced decorator help
Business Model Canvas
Day 2

5. 5
Designers,
Brands,
Furniture Stores,
Outlet Stores,
Early Career
Interior
Decorators
Key Partners Key
Activities
Key Resources
Customer
Relationships
Value Proposition
Cost Structure
Customer
Segments
Warehouse, inventory management,
sales team, refurbishment, shipping &
pick-up costs
Supply chain
management,
(pick-up service &
refurbishment),
relationship with
stores offering
rental sol’n through
Von Nesting
Furniture, customer lists, shipping
materials, refurbishing center
We provide high-quality,
standard furniture needs at
an affordable cost, while
removing the stress from
the furnishing and moving
process.
Our business addresses the
needs of young
professionals in major cities
during the transitory years
between college and
“settling down.” Solve the
problem of furniture being a
permanent asset by
providing high quality
products for one- or two-
year periods with the option
to buy at the end of the
rental.
We partner with design
stores so clients can
decorate how they want
without the upfront
expense.
Interactive website, brick & mortar (referrals
from existing furniture companies)
Revenue Stream
Channels
Customer nesting
stages:
• Multi-person home
• Single-person home
• Couple home
High frequency Mover
profile:
• 20-30 years
• Young professionals
• City dwellers
• Renters
• Modest disposable
income
• Driven by
convenience
GET: paid search, word
of mouth, referrals
from stores/brands
carried, HR at large
companies, and rental
management
companies
KEEP: allow them to
exchange furniture,
meet their changing
needs as they move to
new apartments
GROW: cross-sell
other products, up-sell
as they move to bigger
places
Revenue from rental contracts to
consumers of service and later from
option to buy
Delivery revenue (second hand
rentals)
Business Model Canvas
Day 3

6. 6
Business Model Canvas
Day 4
Designers,
Brands,
Furniture Stores,
Early Career
Interior
Decorators
Key Partners Key
Activities
Key Resources
Customer
Relationships
Value Proposition
Cost Structure
Customer
Segments
Purchase furniture at wholesale prices
on demand, warehouse, refurbishment,
shipping & pick-up costs
Supply chain
management,
(pick-up service &
refurbishment),
relationship with
stores offering
rental sol’n through
Von Nesting
Customer lists, shipping materials,
refurbishing center
Customers:
We provide high-quality,
standard furniture needs at
an affordable cost, while
removing the stress from
the furnishing and moving
process and the upfront
expense.
We take the commitment
out of furnishing during the
transitory years of a young
professional’s early career.
Interactive website, brick & mortar (referrals
from existing furniture companies)
Revenue Stream
Channels
Customer Profile:
• High frequency
mover
• 22-34 years
• Live alone, with
roommates, partner
• Young professionals
(from out of town)
• Urban renters
• Modest disposable
income
• Convenience driven
GET: paid search, word
of mouth, referrals
from stores/brands
carried, HR at large
companies, and rental
management
companies
KEEP: allow them to
exchange furniture,
meet their changing
needs as they move to
new apartments
GROW: cross-sell
other products, up-sell
as they move to bigger
places
Revenue from rental contracts to
consumers of service and later from
option to buy
Delivery revenue (second hand
rentals)
Partner Profile:
• Furniture stores:
mid-tier, modern
design
• National & NY based
• No rental option
currently
Partners:
National: build future
customer base. Improve
conversion & units /
transaction.
NY Based: build brand
recognition.
Opportunity to acquire
customers who will
growth into their brands.

7. 7
What We Learned
Day 2-4
Private Label vs
Third Party
• Private Label: Only way to earn VC-sized margins; requires
extensive logistics and capital
• Third Party: Avoids issue of building own brand and allows
VN to tap into existing customer base; margins unattractive
and potentially not profitable
Customer
Segment
• Addition of international profile / elimination of frat boy
profile
• Tightening of age demographic
Shop-the-Look • Significant new exposure and revenue for already existing
furniture brands
Convenience
Issues
• Realized that eliminating all the inconveniences of owning
and moving furniture was not within the scope of our
business

8. 8
Business Model Canvas
Day 5
Designers,
Brands,
Furniture Stores,
Early Career
Interior
Decorators
Key Partners Key
Activities
Key Resources
Customer
Relationships
Value Proposition
Cost Structure
Customer
Segments
Purchase furniture at wholesale prices
on demand, warehouse, refurbishment,
shipping & pick-up costs, marketing
Relationship with
stores offering
rental sol’n through
Von Nesting,
customer
acquisition,
refurbishment
Customer lists, shipping materials,
refurbishing center
Customers:
We provide curated, high-
quality furniture needs at an
affordable cost, while
removing the stress from
the move out process and
the upfront expense.
We take the commitment
out of furnishing during the
transitory years & put
aspirational design within
reach.
Interactive website, leverage partner brick &
mortar to showroom
Revenue Stream
Channels
Customer Profile:
• High frequency
mover
• 22-34 years
• Live alone, with
roommates, partner
• Young professionals
(from out of town)
• Urban renters
• Modest disposable
income
• Convenience driven
GET: paid search, word
of mouth, referrals
from stores/brands
carried, HR at large
companies, and rental
management
companies, ad
campaign targeting
aspirational customers
KEEP: exchange
service to meet
changing needs
GROW: cross-sell
other products, up-sell
as they move to bigger
places
Revenue share from rental contracts
and option to buy. Service fee to
partners.
Delivery fee from subsequent
rentals
Partner Profile:
• Furniture stores:
mid-tier, modern
design
• National / NY based
• No rental option
currently
Partners:
Build brand recognition.
Acquire customers who
will grow into their
brands, high lifetime
value.
Monetize inventory
excess inventory.
Control branding &
marketing campaign once
customer is acquired.

9. 9
Where We Ended
The Business / Revenue Model:
• Customer acquisition for existing brands and avoid cannibalization
of sales
• Partners own the customer relationships
• VN still owns customer data
PARTNERS AS
CUSTOMERS
VALUE
PROPOSITION
• Transitioned to focus on providing service to
both customers and our furniture partner stores
• Acquisition of rental customers
• Renters: solves problems like curation,
flexibility, affordability
• Furniture Companies: taps into customers
who couldn’t buy; expands brand ecosystem
to drive traffic revenue

10. 10
Customer Segments - Renters
Core Customer Profile:
Young professionals, 22-34 years old
Urban Dwellers
Renters
>80k annual income
“The Kara”
The newly
cohabitating
couple
“The Dustin”
The adult who
finally lives alone
“The Sonja”
The mature
roommates
“The Randall”
The out-of-
towner
“It is really
convenient for int’l
students who have
to leave after 2
years”
“I am always
stressed about
how my
roommate and I
will split up
furniture when
we move”
“Rent - to - own, I
like this idea…“ “Would have been
great when moving in
with boyfriend, we
both owned too much
to fit in apartment”

11. 11
Customer Segments - Partners
Brand Partnerships
Brand curated “suites”
Upscale, aspirational brands
Local, rich brand story

12. 12
Value Proposition - Partners
Access to new &
qualified customers with
high CLV
Monetize overstock
inventory
Own & manage
consumer relationships
Flexibility in brand
presentation
Provides channel to monetize
inventory in value accretive
way
CRM tool gives retailers
power to manage this
relationship
VN allows retailer to control
key elements of branding,
merchandising, and
transacting
VN website generates demand
in a new market, by
connecting retailers with
renters

13. 13
q
Revenue Model
Renters
Brand Partners
Customers
interested in renting
furniture
Drive traffic to
partners for
sale items
Furniture Rentals
Von Nesting’s
Shop-This-Look interface
Transaction &
logistics data
Service fee &
revenue sharing
agreements with
partners
RentalPayments

14. 14
Customer Acquisition
“Get Strategy”
Renters
Acquire Renters
- Purchase Google key
words
- Geo-target Facebook
advertisements
- Leverage brand
partnerships to attract
consumers
- Offers one location for
customers to find and
compare desired
furniture rentals
- Alleviate burdens of
moving through flexibility
of furniture rentals
“Get Strategy”
Partners
Acquire Partners
- Capture untapped
consumer segments
- Drive traffic to their
websites through “shop
the look”
- Enhances customer
management and
engagement while
allowing
- Generate increased
revenue without
cannibalizing current
sales
- Provide customer data

15. 15
The Von Nesting Approach: MVP
• Develop VN furniture rental
site that features furniture
suites with ABC Carpet
• Rent out to different customer
segments while expanding
brand awareness.
• Refurbish rented out furniture
(potentially stays with
retailer).
• Re-rent and further expand
brand awareness.
EXAMPLES / DETAILINITIATIVE
Develop bohemian furniture suite
in partnership with ABC Carpet.
Deliver new refurbished furniture
to new customers.
Von Nesting picks-up furniture at end
of contract and delivers to artisan local
refurbish site.
Sign one- year rental deal with newly engaged couple
with contract that prevents Von Nesting liabilities for
damage; great delivery service from brand partner.

16. Appendix

17. 17
Needs
• Satisfy changing living
needs (space constraints,
layout changes, design
preferences)
• Figure out what to do with
old furniture
• Functional needs of living
space & life stage guide
furnishing decisions
Gains
• Getting new furniture to
satisfy every move and
changing tastes
• Having high end furniture
without the monetary or
time commitment
• Spreads cost if furniture is
purchased at the end of a
rental
Value Proposition - Renters
Pains
• Eliminating burden of selling/moving/storing
old furniture
• Avoiding the embarrassment of cheap looking
furniture
• Design decisions are hard to reverse -
changing taste is a barrier to purchase
• High upfront cost

18. 18
Value Proposition - Partners
Partners - Pains, Gains, Needs The Von Nesting Solution
Access to NEW and qualified a customers with high
lifetime value
- VN website generates demand in a new market
- VN customers have strong intent to purchase
- Opportunity for a retailer to start and build a long-term relationship with
a valuable customer
Monetize overstock inventory
- Provides a channel to monetize inventory that would otherwise be
sitting in a warehouse or sold for an unfavorable price
Own and manage the consumer relationship
- VN’s CRM tool gives the retailer the power to manage the relationship
with the customer
- VN’s transaction tool works seamlessly with the CRM tool and allows the
retailer to host transactions on their website
- VN’s inventory tool allows the retailer to manage their inventory and the
VN listings in real-time
- VN’s pricing tool gives the retailer insight into effective pricing for the
rental market
- VN’s API gives the retailer the choice to embed rental capability through
a widget on their website
Flexibility in brand presentation
- VN allows the brand of the retailer to control key elements of branding,
merchandising and transacting
- Retailer has the choice to enable one-click shopping on VN website or
handle the transaction on their own website using VN tools

19. 19
Revised Distribution Process
Brand
Partners
Customers
Von
Nesting
Customers
New
Customers
Furniture
Customers
Existing
Customers
Purchase
Von Nesting
Refurbishing
Furniture
Nest to
Nest
Rent to
Own
Revised process intended to leverage relationships with established brands while
providing the brands the ability to rent and develop relationship with 22-34 demo.

20. 20
Hypothesis - Distribution Channels
Target Renters are willing to rent furniture online
Proposed Experiments
Hypothesis - Get Strategy for Renters
Renters will be interested to use this service if they can
get furniture they would have bought otherwise or
couldn’t afford it if they could be rented at a discounted
price
Test
Interviews with and surveys of target consumers
Test
Interviews with and surveys of target consumers
Test
Interviews with industry professionals from ABC Carpet,
Living Spaces, and HD Buttercup
Hypothesis - Get Strategy for Partners
Furniture companies will be willing to partner with Von
Nesting if they feel we can increase their website traffic
and sales within a new customer segment
Test
Survey willingness to pay of customers and validate with
costing information from industry interviews.
Hypothesis - Revenue Model
Primary revenue stream is from monthly rental fees and
mark-up charged for rent-to buy option. Buy furniture
from partners on-demand at wholesale prices, and charge
rental based on percentage of retail.
Hypothesis - Distribution Channels
Von Nesting will need to rely on partners to handle the
manufacturing and initial distribution (storage, shipment,
and delivery)
Test
Interviews with industry professionals and venture
capitalists

21. 21
Hypothesis 1 - Distribution Channel
Experiment
Interviews with and surveys of target
consumers
Result
A majority of consumers reported being
comfortable shopping for furniture online but
like the ability to view items in person and
would feel more comfortable if there was a
return option available
Iterate
Von Nesting’s partnerships with NYC
based stores allows consumers to view
specific items in person while still
purchasing online
Target Renters are willing to rent furniture online

22. 22
Hypothesis 2 - Distribution Channel
Experiment
Result
Iterate
Von Nesting will need to rely on partners to handle the manufacturing and
initial distribution (storage, shipment, and delivery), subsequent rentals
will be handled in-house.
Interviews with industry professionals and
venture capitalists
Logistic and economic feasibility of taking
on inventory after initial rental has been a
constant concern of those interviewed
Continuing interviews to determine a
realistic solution for inventory
management and shipping logistics

23. 23
Hypothesis 3 - Get Strategy for Renters
Experiment
Interviews with and surveys of target
consumers
Interviews with and surveys of target
consumers
Result
Survey results showed that 62% of
respondents were interested in the service as
long as they felt they were saving money.
Customers expressed interest in option to
buy at the end of rental.
Iterate
Von Nesting needs to work with partners to
determine a feasible wholesale discount to
allow for customer savings on rentals &
sustainability of the business model.
Renters will be interested to use this service if they can get furniture they
would have bought otherwise or couldn’t afford it if they could be rented at
a discounted price

24. 24
Hypothesis 4 - Get Strategies for Partners
Experiment
Result
Iterate
Von Nesting needs to provide more of a
benefit to their partners buy driving traffic
to their sites and encouraging sales of
additional, non-rentable items through
the “shop this look” feature
Furniture companies will be willing to partner with Von Nesting if they feel
we can increase their website traffic and sales within a new customer
segment
Interviews with industry professionals and
venture capitalists
ABC Carpet expressed interest in this
service because it captures a younger
customer that they have been unable to
reach

25. 25
Hypothesis 5 - Revenue Model
Experiment
- Survey willingness to pay of customers
and validate with costing information
from industry interviews.
- Compare to common methods of renting
other large assets
Result
People are willing to pay between 30-60%
of retail for rental furniture. Differences are
seen between men and women and for
different furniture items.
Iterate
Explore price segmentation strategy to
capture difference in willingness to pay of
customer segments (primarily men vs.
women). Determine realistic wholesale
deals through comparable partnerships
Primary revenue stream is from monthly rental fees and sale proceeds from exercised
purchase options. Buy furniture from partners on-demand at wholesale prices, and
charge rental based on furniture depreciation and interest expense.