Market Opportunity

!Sean Ammirati

Partner, Birchmere Ventures Adjunct Professor, Carnegie Mellon University

#CMULean

Market Opportunities

1. Large Number of Total Potential Customers / Users

2. Rapid Predictable Future Growth

3. Clear path to replicable user / customer acquisition

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1. Market Sizing

Total Addressable Market

Served Available Market

Target Market

Top Down Bottom Up

Take key variables in revenue model & multiple by market

data assumptions !!

Example: # of Potential Users x

# of Page Views x (Average RPM in Mkt/1000)

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Sample: VigLink

http://lsvp.com/2011/03/16/how-to-estimate-market-size/

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Real Goal: Make sure this is worth your time!

!

(and your investors money)

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Sample: NoWait

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$185 B

300,000 locations

the table service market.

10% Fine Dining Reservation

$185 B

300,000 locations

casual dining.

!!!!!

OpenTable for Casual Dining

Casual Dining Walk-in

2. Be Weary of Analysts

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Market Types

B2B: used & purchased by businesses

B2C: used & purchased by consumers

B2B2C: sold to business to acquire a consumer

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3. Tools for user / customer acquisition

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For Next Week ...

• Present (~5 minutes):

• A slide with fully flushed out business model canvas

• Focus on Key Parts of Canvas based on business model pattern

• Highlight key assumptions (variables) you would use to build a financial model

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seanammirati.com !

@SeanAmmirati

#CMULean