Post on 20-Aug-2015
EB5 Investments Trusted advisory service for foreign investors to get a GreencardTeam 18: Muhsin Shahid, Dave Lincoln, Adam Nathu
Day 1 + 10
Day 2 + 10
Day 3 + 10
Day 4 + 6
Total = 36
Customers Discovered:
TEAM 18: EB-5 INVESTMENTS
“O Foreign Investor, Foreign Investor, Where
art thou? ”
Day 1 – What we thought…o IDEA:Create an online marketplace to connect foreign investors to EB-5 Investment Projects in the USAo SOLVE:Fragmented industry with lack of transparency
TEAM 18: EB-5 INVESTMENTS
Cost structure
Revenue streams
Key resources
Key activities
Key partnersValue proposition
Customer relationships
Customer segments
Channels
Risk Reduction• Transparency• Better
Analysis / Tools for making Investment Decisions
Convenience &Usability• Centralization
/ aggregation of a fragmented marketplace
• Accessibility / Visibility (Multiplatform)
• Multi-sided platform• Foreign
Investors• Business
seeking financing
• EB5 Broker
• Lawyers
• Internet• Trade
Advocacy Groups
• Partner Relationships
Self-service• Trusted BrokerPersonal Assistant• Trusted AdvisorCo-creation• Enable users to
rate & give feedback on counterparties (lawyers, developers)
• Placement fees on investments (Brokerage) – Fixed Pricing (% Investment)
• Application fees (direct) – Dynamic Pricing (Lawyers)
• Subscription / Membership fee (lawyers)• Advertising / Service Directory fee
(Projects)
Strategic Alliances:• Lawyers• Developers• Business
seeking financing
• Coopetition - Strategic Partnerships (from competitors) -EB5 Brokers
Platform / Network: • Matchmaking –
stakeholders & key partners
• Continuously develop & maintain platform
• Promotion of website & platform
• Intellectual resources -Partner Relationships
• Focus on Cost-Driven Business Model• Customer Acquisition• Developing Partner relations• Developing/Maintaining Web portal
Day 1
Day 1 – What we assessed... oIs there any interest for our marketplace?
◦ Spoke to prospective investors◦ Spoke to immigration lawyers◦ Spoke to EB-5 regional centers
oWould you use our platform to select an investment project?oHow much would you pay for us to list your investment project and get you an investor?
TEAM 18: EB-5 INVESTMENTS
Day 1 – What we learned…Hypothesis Result Takeaway
• Investors would prefer a centralized listing of all projects
True But quality / security of project is more of a concern than aggregation
• Businesses seeking financing will want to advertise their projects on our platform
True They will pay a premium to avoid having to deal with extra agents and brokers
• Can we sell directly to EB5 Brokers
False No real interest in coopetition
• Website is quickest way to reach target HNW foreign investors
False Developing foreign partnerships is the quickest way
TEAM 18: EB-5 INVESTMENTS
Cost structure
Revenue streams
Key resources
Key activities
Key partners
Value proposition
Customer relationships
Customer segments
Channels
HNWI foreigners• $2million + Net
Worth• Age 40-60• Child studying
in the US
Business seeking financing• Regional
Centers• Real estate
Developers
Immigration Lawyers
EB5 Broker
WebsitePartnerships• Trade
Advocacy Groups
• Schools / Colleges
• Foreign Agencies
• GET:Trusted Broker
• KEEP:Trusted Advisor
• GROW:Referrals, Affiliate Program
• Placement fees on investments (Brokerage) – Fixed Pricing (% Investment)
• Application fees (direct) – Dynamic Pricing (Lawyers)
• Subscription / Membership fee (lawyers)• Advertising / Service Directory fee
(Projects)
Strategic Alliances:• Lawyers• Developers• Business
seeking financing
• Coopetition - Strategic Partnerships (from competitors) -EB5 Brokers
• Relationship building• Developing
platform• Promotion of
platform
• Partner Relationships
• Foreign HNWI network
• Customer Acquisition• Advertising – Adsense• Presales services
• Developing Partner relations• Developing Web Portal
HNWI foreigners:• Risk
Reduction• Convenienc
e• Transparenc
y
Business seeking financing:• Access to
low-cost capital
• Increased visibility of projects
Immigration Lawyers:• New client
business
Day 2
Day 2 – What we assessed... o How do we get, keep, and grow new clients?o How do we define our key partnerships?o How do we define our revenue structure in light of our new customer segments?
TEAM 18: EB-5 INVESTMENTS
Day 2 – What we learned…Hypothesis Result Takeaway
• Focusing on new foreign partnerships will penetrate the multiple layers in front of foreign investors
True Foreign lawyers, private banks, trade advocacy groups all are useful channels to help get to different foreign investors
• Focusing on businesses seeking financing and charging them more will be more profitable
True Can make money on the placement fees as well as featured advertisement fees
TEAM 18: EB-5 INVESTMENTS
Day 3
Cost structure Revenue streams
Key resources
Key activitiesKey partnersValue
propositionCustomer
relationshipsCustomer segments
Channels
Foreign Investors:
• Net Worth: $2-50M
• Age: 27– 60
• Origin: Emerging Market
• Married / Family in U.S.
Businesses Seeking Finance:
• Seek $5M+ funds
• Real Estate Investments
• Distressed Businesses
EB5 Brokers
Immigration Lawyers
Foreign Investors:
• Risk Reduction
• Convenience – 1 stop shop
• Legitimacy / Transparency
Businesses Seeking Finance:
• Access to Low Cost Capital
• Increased Visibility of Projects
MVP:
• Qualified Project Listings
• Project Comparative Analysis Reports
• Investor Due Diligence
GET: Direct Sales, Partnerships
KEEP: Trusted Advisor
GROW: Referrals, Affiliates
GET: Direct Sales
KEEP: Ongoing Relations
GROW: Referrals
PRODUCT - MARKET - FIT
WebsitePartnerships:• Foreign Trade Agencies• Foreign Lawyers &
Agents• Private Banks• Chambers of Commerce• Angel Investment
Groups
• Create Project Database
• Develop Analysis Tool-pack
• Implement Investor Due Diligence
• Promotion of Platform
• Build “Key Partners”
Strategic Alliances:
• Real Estate Developers
• Regional Centres
• Angel Investment Groups
• Foreign Trade Agencies
• Schools/Colleges
Co-opetition:
• Immigration Lawyers
• EB5 Brokers
• IP – Partnership Network (domestic)
• Foreign Investor Network (international)
Customer Acquisition:
• Google Adsense
• Due diligence costs on HNWIs & Projects
Recurring:• Site Development &
Maintenance• Development of Foreign
partnerships
Foreign Investors:
• Free membership to website
Businesses Seeking Finance:
• % Investment placement
• Advertising – “Featured Projects” fee
Day 3 – What we assessed... oWhat relationship exists between attorneys and Regional Centers?◦ Spoke to immigration lawyers◦ Spoke to EB-5 regional centers
oWould attorneys use our platform to select an investment project?oWhat is the fee structure currently in place?
TEAM 18: EB-5 INVESTMENTS
Day 3 – What we learned…Hypothesis Result Takeaway
• Attorneys will source deals through us
False They earn more fees from Regional Centers
• Our portal reduces risk and increases transparency
True Primary need for HNWIs
• Attorneys will align with us False We are viewed as their competition
• We can earn more revenue via both transaction and finders fees
True We can undercut attorneys and brokers with lower fees
TEAM 18: EB-5 INVESTMENTS
EB5 Investments - Team 18
Cost Structure Revenue Streams
Key Resources
Key Activities
Key Partners
Value Proposition
Customer Relationships
Customer Segments
Channels
Foreign Investors:• Net Worth:
$2-50M• Age: 27– 60• Origin:
Emerging Market• Married / Family
in U.S.
Foreign Investors:
• Risk Reduction
• Convenience
• Transparency
MVP:• List of vetted clients
Direct:
•Web Portal
• In person
• Operate as a niche Investment Advisor
• Create Database of Investors & lawyers
• Implement Investor Due Diligence
• Build “Key Partners”
Strategic Alliances:
• Angel Investment Groups
• Foreign Trade Agencies
• Private Banks
• Chambers of Commerce
Co-opetition:
• Immigration Lawyers
• IP – Partnership Network (domestic)
• Foreign Investor Network (international)
Customer Acquisition:
• Google AdSense
• Lawyers & Advisors: Due diligence costs on HNWIs & Projects
Recurring:• Registering as Broker-Dealer• Site Development &
Maintenance• Development of Foreign
partnerships
Foreign Investors:
• Management & Performance Fees
GET: Viral Loop, Partnerships
KEEP: Trusted Advisor
GROW: Referrals, Affiliates
GET: Direct Sales
KEEP: Ongoing Relations
GROW: Referrals
Businesses Seeking Finance:
• Seek $5M+ funds
• Real Estate Investments
• Distressed Businesses
Businesses Seeking Finance:
• Access to Low Cost Capital
• Increased Visibility of Projects
TEAM 18: EB-5 INVESTMENTS
Businesses Seeking Finance:
• % Investment placement
• Advertising – “Featured Projects” fee
Day 4
Day 4 – What we assessed... o How many channels are necessary?o What partnerships are worthwhile?o What are the underlying investor concerns?
TEAM 18: EB-5 INVESTMENTS
Day 4 – What we learned…Hypothesis Result Takeaway
• Investors only care about lowest capital investment
False Investors valued capital preservation over lowest capital investment
• Regional centers is a great business model to copy
False Regional centers are not that profitable and no real value add from certification
• Investors are open to any business investment type
False Certain investors are not interested in any arbitrary business but would rather use their funds to create their own business
TEAM 18: EB-5 INVESTMENTS
Pivot:o Focus on Direct Investments - $1MM
◦ Higher approval rate for greencard◦ Higher return on investment for investors
o Focus on New Business Opportunitieso Offer Investment Advisory Services
◦ Sticky customer relationships
TEAM 18: EB-5 INVESTMENTS
Day 5
EB5 Investments - Team 18
Cost Structure Revenue Streams
Resources
Key Activities
Key Partners
Value Propositi
on
Customer Relationship
sCustomer Segments
Channels
Foreign Investors:• Chinese, Korean,
British• Net Worth:
$2-50M• Age: 27– 60• Married / Family
in U.S.
Foreign Investors:
• Risk Reduction
• Convenience
• Transparency
MVP:• List of vetted
clients and projects
Direct:
•Website
• In person
• Attorneys
• Operate as a niche Investment Advisor
• Create Database of Investors & lawyers
• Due Diligence
• Build “Key Partners”
Strategic Alliances:
• Angel Investment Groups
• Foreign Trade Agencies
• Private Banks
• Chambers of Commerce
Co-opetition:
• Attorneys
• IP – Partnership Network (domestic)
• Foreign Investor Network
Customer Acquisition:
• Google AdSense
• Attorneys & Advisors: Due diligence costs
Recurring:• Compliance
• Website
• Foreign partnerships
• Admin & Management Fees
GET: Referrals, Partnerships
KEEP: Trusted Advisor
GROW: Referrals, Affiliates
GET: Direct Sales, Conferences
KEEP: Trusted Partner
GROW: Referrals
Businesses:
• Seek $5M+ funds
• Real Estate
• Distressed Businesses
Businesses:
• Project Visibility
TEAM 18: EB-5 INVESTMENTS
• Placement Fees
Market Size
TEAM 18: EB-5 INVESTMENTS
Total Addressable
Market: $8.5Bn
Served Market: $3.25Bn
Opportunity: $5.25Bn
• Total Market = 10,000 EB5 visas p/a (3000 reserved for Regional Centres)
• Served Market = Last year 6,517 applications received
THEREFORE significant unutilized Capacity
Targeted Opportunity :
• 1% of unutilized capacity + served capacity @ $45,000 per customer= $3.15MM REVENUE
Attorney
Foreign
InvestorDirect
InvestmentEB-5 Invest.$45,000
LTV = $140,000* > (CAC = 15,000 + COGS = 12,000)*$45k Admin Fee + $15k annual 1.5% Management Fees + $20k Placement Fee
EB-5 Market Analysis
$15,000
$1,000,000 min investment
Delivered Clients
$20,000
TEAM 18: EB-5 INVESTMENTS
Timeline:
Today – Finalise Current Deal 1, Find Investor for 2nd project , Develop Website, Secure Relations with Foreign Lawyers & Agencies
1 Month – Acquire licenses, Attend conferences, Develop Blog, Promote Website + Services
2 Months – Relationship building, Buy client list, Work on Referrals
3 Months – Strategic Management of Projects, Talent Management, Continue Offline Alliances
4 Months – TARGET Close 8 Sales
TEAM 18: EB-5 INVESTMENTS
Key Takeaways:
TEAM 18: EB-5 INVESTMENTS
Customer Development• Who are the right customers? • What is the right value proposition? • Which is the right revenue model?• GET OUT OF THE BUILDING!
Business Model Design• It’s an iterative process. • The Big Picture – There are patterns – We saw from class teams
presenting.
Team Dynamics• It’s stressful! It’s hard work! It has it’s Ups and Downs!• We Survived!
Is this a viable business?
o We have signed up 2 business projectso We have signed up 1 Foreign Investor o More referrals comingo YES! We will continue the search..
TEAM 18: EB-5 INVESTMENTS