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Consumer startups: facts,
trends, business models.

                           St. Petersburg| 2012
                       Jane Smorodnikova, CEO
                          contact@freshle.com
Fact №1

Thousands of early-stage consumer web/mobile
companies were started and funded in last 24
months.
Fact №2


  There are only a few dozen VCs who actively

write consumer Series A checks, and those Vcs

                will only do a few deals a year.
Fact №3

Facebook’s market cap is about half of what
most tech investors expected before the IPO.
Fact №4

Groupon, Zynga and Facebook are down.
Fact №5

But Google is still growing. Because it’s useful?
Fact №6

Chances for M&A (CrunchBase insights)
1.   Enterprise software
2.   Networks and hosting
3.   Hardware
4.   Games and video
5.   Mobile
6.   Web
7.   Ad
8.   Search
9.   E-commerse
Fact №6

Chances for VC (CrunchBase insights)
1.   Hardware
2.   Enterprise software
3.   Mobile
4.   Games and video
5.   Networks and hosting
6.   Web
7.   E-commerce
8.   Ad
9.   Search
«Web and mobile are most
mentioned startups on…»
CrunchBase facts
«Ten million users
is the new one million users»

                    Chris Dixon
Failed model 1: Pay-Per-Bid
Failed model 2: AirBnB of cars
Trend 1. Newism

In fact the entire world, from emerging* to
mature economies, is now creating new
products, services and experiences on a daily, if
not hourly basis, in every B2C industry.
Trend 2. FSTR
Everything is getting faster and FSTR ;-). The online
world, with its relentless acceleration and
amplification – of information, of excitement, of
attention.
Trend 3. EXPERIENCE CRAMMING
Consumers want to collect and mix-and-match as
many new and varied experiences as possible.
Trend 4. STATUS STREAM
Social status will come from being in-the-know, and
from being part of the 'new'.
Trend 5. TRYSUMERS
The risk of trying out something new is
approaching zilch.
Trend 6. TO HAVE IS TO (H)OLD

For smart consumers, 'trading in' is the
new buying in 2012.

Possessions don't
(need to) get old
anymore.
Trend 7. RED CARPET
The World Tourism Organization has estimated
that the total number of outbound tourists from
China will reach 100 million by 2020 (now 30).
For comparison, US citizens made only 37
million outbound air travel trips during the
whole of 2010.
Trend 8. DIY HEALTH
App Store currently offers 9,000 mobile health
apps (including nearly
1,500 cardio fitness apps,
over 1,300 diet apps,
over 1,000 stress
and relaxation apps, and
over 650 women’s health
apps) and by mid-2012,

this number is expected reach 13,000.
Trend 9. DEALER-CHIC
MORE FOR LESS
BEST OF THE BEST

For consumers,
securing the best deals
is fast becoming a way
of life, if not a source
of pride and status.
Trend 10. ECO-CYCOLOGY
Next for recycling? Brands taking
back all of their products (and recycling
them responsibly and innovatively).

*Patagonia claims
to have so far taken
back 45 tons of
clothing for recycling
and made 34 tons into new clothes.
Trend 11. BOTTOM OF THE URBAN PYRAMID
In 2012, the opportunities to cater to
hundreds of millions of low-income urban
consumers will be unprecedented.
Trend 12. IDLE SOURCING
Expect crowd-based problem solving to
fuel endless innovations in 2012, especially
as for consumers, contributing will be
more effortless than ever.
Trend 13. FLAWSOME
for 2012's consumers, brands that behave
more humanly, including showing their
flaws, will be awesome.
Trend 14. SCREEN CULTURE
In 2012 will see three mega-tech currents
converge: screens will be (even
more): ubiquitous / mobile / cheap /
always on; interactive and intuitive;
an interface to everything and anything.
Trend 15. POINT & KNOW
2012 will see a mix of the known (Apps!
Augmented Reality!) and the very known
(QR codes!) bringing information about the
objects (and even people) that consumers
encounter in the real world instantly.
Good idea 1.
For consumer startups
with non-transactional models
(ad-based or unknown business models),
you need something closer to 10 million
users versus 1 million users to get Series A
funded.

          Be sure that
          market is big
Good idea 2.

When you think that you know your competitor
landscape – start another competitor research.
And repeat it.
 Don’t forget the world.
 Don’t forget substitutes.

           Be sure that
           you know it
Good idea 3.

Use charts to visualize competitor landscape:

 2 dimensions for 2 main values
 blue ocean canvas


       Be sure that you
       have something
Good idea 4.

   UserBase              UserBase

  Market share          Conversion

    Market               Promotion



Then forget market
Good idea 5.


 Big and growing market
 Trend and model
 Niche and advantage
 Team and background
 Facts and proofs
Go to freshle.com
  and sign up!
                        St. Petersburg| 2012
                    Jane Smorodnikova, CEO
                       contact@freshle.com

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Consumer startups trends

  • 1. Consumer startups: facts, trends, business models. St. Petersburg| 2012 Jane Smorodnikova, CEO contact@freshle.com
  • 2.
  • 3. Fact №1 Thousands of early-stage consumer web/mobile companies were started and funded in last 24 months.
  • 4. Fact №2 There are only a few dozen VCs who actively write consumer Series A checks, and those Vcs will only do a few deals a year.
  • 5. Fact №3 Facebook’s market cap is about half of what most tech investors expected before the IPO.
  • 6. Fact №4 Groupon, Zynga and Facebook are down.
  • 7. Fact №5 But Google is still growing. Because it’s useful?
  • 8. Fact №6 Chances for M&A (CrunchBase insights) 1. Enterprise software 2. Networks and hosting 3. Hardware 4. Games and video 5. Mobile 6. Web 7. Ad 8. Search 9. E-commerse
  • 9. Fact №6 Chances for VC (CrunchBase insights) 1. Hardware 2. Enterprise software 3. Mobile 4. Games and video 5. Networks and hosting 6. Web 7. E-commerce 8. Ad 9. Search
  • 10. «Web and mobile are most mentioned startups on…»
  • 12. «Ten million users is the new one million users» Chris Dixon
  • 13. Failed model 1: Pay-Per-Bid
  • 14. Failed model 2: AirBnB of cars
  • 15. Trend 1. Newism In fact the entire world, from emerging* to mature economies, is now creating new products, services and experiences on a daily, if not hourly basis, in every B2C industry.
  • 16. Trend 2. FSTR Everything is getting faster and FSTR ;-). The online world, with its relentless acceleration and amplification – of information, of excitement, of attention.
  • 17. Trend 3. EXPERIENCE CRAMMING Consumers want to collect and mix-and-match as many new and varied experiences as possible.
  • 18. Trend 4. STATUS STREAM Social status will come from being in-the-know, and from being part of the 'new'.
  • 19. Trend 5. TRYSUMERS The risk of trying out something new is approaching zilch.
  • 20. Trend 6. TO HAVE IS TO (H)OLD For smart consumers, 'trading in' is the new buying in 2012. Possessions don't (need to) get old anymore.
  • 21. Trend 7. RED CARPET The World Tourism Organization has estimated that the total number of outbound tourists from China will reach 100 million by 2020 (now 30). For comparison, US citizens made only 37 million outbound air travel trips during the whole of 2010.
  • 22. Trend 8. DIY HEALTH App Store currently offers 9,000 mobile health apps (including nearly 1,500 cardio fitness apps, over 1,300 diet apps, over 1,000 stress and relaxation apps, and over 650 women’s health apps) and by mid-2012, this number is expected reach 13,000.
  • 23. Trend 9. DEALER-CHIC MORE FOR LESS BEST OF THE BEST For consumers, securing the best deals is fast becoming a way of life, if not a source of pride and status.
  • 24. Trend 10. ECO-CYCOLOGY Next for recycling? Brands taking back all of their products (and recycling them responsibly and innovatively). *Patagonia claims to have so far taken back 45 tons of clothing for recycling and made 34 tons into new clothes.
  • 25. Trend 11. BOTTOM OF THE URBAN PYRAMID In 2012, the opportunities to cater to hundreds of millions of low-income urban consumers will be unprecedented.
  • 26. Trend 12. IDLE SOURCING Expect crowd-based problem solving to fuel endless innovations in 2012, especially as for consumers, contributing will be more effortless than ever.
  • 27. Trend 13. FLAWSOME for 2012's consumers, brands that behave more humanly, including showing their flaws, will be awesome.
  • 28. Trend 14. SCREEN CULTURE In 2012 will see three mega-tech currents converge: screens will be (even more): ubiquitous / mobile / cheap / always on; interactive and intuitive; an interface to everything and anything.
  • 29. Trend 15. POINT & KNOW 2012 will see a mix of the known (Apps! Augmented Reality!) and the very known (QR codes!) bringing information about the objects (and even people) that consumers encounter in the real world instantly.
  • 30. Good idea 1. For consumer startups with non-transactional models (ad-based or unknown business models), you need something closer to 10 million users versus 1 million users to get Series A funded. Be sure that market is big
  • 31. Good idea 2. When you think that you know your competitor landscape – start another competitor research. And repeat it.  Don’t forget the world.  Don’t forget substitutes. Be sure that you know it
  • 32. Good idea 3. Use charts to visualize competitor landscape:  2 dimensions for 2 main values  blue ocean canvas Be sure that you have something
  • 33. Good idea 4. UserBase UserBase Market share Conversion Market Promotion Then forget market
  • 34. Good idea 5.  Big and growing market  Trend and model  Niche and advantage  Team and background  Facts and proofs
  • 35. Go to freshle.com and sign up! St. Petersburg| 2012 Jane Smorodnikova, CEO contact@freshle.com