Slides from my recent talk at Drizly event in NYC. Venture capital investment trends, major players, case study, food startups

1. On-Demand Economy
Wan Li Zhu
Principal, Fairhaven Capital
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2. $10B+ invested in the space
(Uber is $7B of that)
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3. 3
Consumer Spending by Category
12.4%
17.6%

4. 4

5. Case Study: Food Delivery
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6. Geographic segmentation
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7. Funding per city
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Median = $16.5M

8. User acquisition cost for apps
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$1.5
June 2013
July 2015
$3.0
2x
Jun
2013

9. What I look for
• Major customer spending category = big market
• Limited to no well-funded competition
• Favorable unit economics relative to frequency of
purchase
• Capital efficient model (i.e. no warehouses)
• Network effect, barrier to entry once at scale
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10. Major Drivers
22%
Average Open Rates
88%
Hyperlocal Geolocation 50-80%
Email
Push notification
Text Msg
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Generational Behavioral Change

11. Trends
• Premium for convenience
• Consumer experience
• Customer relationship
• Curation of product choice
• Supply chain optimization
• Task-based labor
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12. Opportunities / Challenges
• Consumer data
– Consumers willing to trade data for value (“value exchange”)
– Demographics (younger generation of consumers)
– Behavioral
– Preferences
• Brand engagement
– Awareness, advocacy
– Conversion
• Untapped sectors
– B2B
– Healthcare
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