D.C. VeritasFinal Presentation

Source: TAK Studio

Initial Idea

Affordable

New home appliance

Status

Team Members

Durell Coleman Mechanical Engineer

Diana Lin Chemical Engineer

Andrew Harner Mechanical and Aerospace

Engineer

Pedro Silva Civil Engineer

Business Model Canvas #1

• Cheap wind• Green status

symbol• Diversify

energy portfolio

• Faster payback than alternatives

• Single family homeowner

• House rental groups

• Contractors in home remodeling

• Direct sales• Web site• Home Depot

• 5 yr full service Warranty

• Want re-buy from customers

• Asset sales

• Wind• Cheap manufacturing

process - Intellectual property

• Need Initial capital• Endorsements by

environmental groups, and local governments

• Continue R&D• Get certifications• Get approvals from

city councils

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils (new regulations, permits).

• Contractors

• Cost-driven model to provide inexpensive, quality product

• Single family homeowner

• Direct sales

• City councils (new regulations, permits). • Faster

payback than alternatives

What we did

Customer Interviews Door-to-door

Farmer’s market

Online survey

What we learned

Bigger turbine

Neighbors approval

Market education

Customer archetype

Market Research

Solar and Wind proxies

Industry Experts

What we learned

Wind predictability

High customer acquisition cost

Solar competition

Initial Idea

Affordable

New home appliance

Status

Now What?

Company Reflection

Why Lamp Post !

• “Hair On Fire” • “I can either fix potholes and storm drains or keep paying $800,000 a

year for electricity.”- Public Works Director Rick Moshier – Santa Rosa

• City wide distributed energy grid

• Advantage over solar

• Local sustainable generation

• 15 million city street lights

Business Model Canvas # 2

• Retrofit wind turbine for street and highway lamps.

• Create own wind turbines with pole manufacturers

• Be owner of cheap green status symbol

• Diversify green energy portfolio

• Fast payback than alternatives

• Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY

• Cities• Lighting

Companies

• Direct sales to cities

• Web site• Home Depot

• 5 year full service Warranty

• After 5 years, service charge

• Utility to manage after warranty expiration

• Extended warranty option

• Direct Sales• Service Calls• Leasing

• Cheap manufacturing process - Intellectual property

• $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

• Manufacturing Parts• Endorsements by

environmental groups, and local governments

• Continuous advertise and recruit new customers (city councils)

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs• Continue R&D• Get certifications• Gain Credibility

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils not HOA(new regulations, permits).

• Lighting Manufacturers

• Electricians and Contractors for Installation/Maintenance

• Research Labs• Turbine Certifiers

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained (must be in future)

• Cities

• Retrofit wind turbine for street and highway lamps.

• Build relationship with city engineers and council members

• City councils not HOA

City Process

Learn about city approval Process

City Values

•Policies•Community Culture•State Mandates•City Budget Plan

Back to the envelop metrics

Request for

Quote

Technical Evaluation and Recommendati

on

City Council Approval

IDEA

City Council “Pet-

Project”

Finance Approval

Planning Commission

What we learned

Cities interest in financial options

Long purchase cycles

Utilities decoupled

Barriers

DC Veritas

Cities

WHO IS INSTALLING?WHO OWNS THE

PRODUCT?NEED PILOT CITIES

CANT INITIALLY OFFER PPA OR LEASING

DO WE HAVE THE BUDGET?WHO IS LIABLE IF IT FAILS?

IS IT WINDY ENOUGH HERE?

Barriers

DC Veritas

Cities

Developer Utilities

Business Model Canvas – Final

• Retrofit wind turbine for street and highway lamps.

• Create own wind turbines with pole manufacturers

• Be owner of cheap green status symbol

• Diversify green energy portfolio

• Fast payback than alternatives

• Cities (pilot)

• Cities leasing

• Lighting Companies

• Developer -> Utilities -> City

• Direct sales to cities (long term) PILOTS

• Small Wind Developer

• 5 year full service Warranty,

• After 5 years, service charge

• Utility to manage after warranty expiration

• Extended warranty option

• Leasing, PPA• Direct Sales to wind developers?

• Cheap manufacturing process - Intellectual property

• R&D talent• Endorsements by

environmental groups, and local governments

• Finance

• Continuously advertise and recruit new customers (city councils)

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships (developers, cities, installers, maintenance) for maximum reach

• Submit bids for city RFPs• Continue R&D• Get certifications• Gain Credibility

• City council (new regulations, permits).

• Environmental, bird, wildlife groups (regulations, publicity)

• Lighting Manufacturers

• Electricians and Contractors for Installation/Maintenance

• Research Labs• Turbine Certifiers• Small Wind

Developers• Utilities

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained (must be in future)

• Cities leasing

• Developer -> Utilities -> City

• Leasing, PPA• Direct Sales to wind developers?

• Finance

Timeline

What we learned

Pilot project integral to prove product concept

Reduce perceived risk

Certification take a long time

Pilot interest

Mariposa, Tx Eco-school Demo site for sustainability Want to pilot

Sundance, Ut Ski resort is interested Large energy budget Green minded

LEARNINGS

Learnings - Customers

Problem not product Don’t marry product Active customer

Real experience counts

Hypothesis often wrong

High customer acquisition costs

Learnings

Startups are roller coaster

Pass/Fail Criteria

Interviews are hard

Team value

What’s next

Structural wind loads

Liability and prior IP issues

Understand small wind developer

City interest in finance option

Build it!

QUESTIONS ?

Source: TAK Studio

Business Model Canvas – Week 1

• Cheap affordable wind turbine for the everyday American

• Be owner of cheap green status symbol

• Diversify energy portfolio,

• Fast payback than alternatives, < 5 yrs

• Single family homeowner

• House rental groups

• Contractors in home remodelling• Direct sales

• Web site• Home Depot

• 5 year full service Warranty

• Want re-buy from customers

• Sale of Product

• Cheap manufacturing process - Intellectual property

• Need initial capital• Endorsements by

environmental groups, and local governments

• Continue R&D• Get certifications• Get approvals from

city councils

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils (new regulations, permits).

• Contractors

• Cost-driven model to provide inexpensive, quality product

Business Model Canvas – Week 2

• Cheap affordable wind turbine for the everyday American

• Be owner of cheap green status symbol

• Diversify energy portfolio,

• Fast payback than alternatives

• Single family homeowner in CA, TX ,CO, WI, NY

• House rental groups

• Contractors in home remodelling

• Direct sales• Web site• Home Depot

• 5 year full service Warranty

• Want rebuy from customers

• Direct Sales• Leasing• Service Calls

• Cheap manufacturing process - Intellectual property

• Need Iniitial capital• Endorsements by

environmental groups, and local governments

• Continuous advertise and recruit new customers

• Continue R&D• Get certifications• Get approvals from

city councils

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils and neighborhood/??? (new regulations, permits).

• Contractors

• Cost-driven model to provide inexpensive, quality product

• May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.

Business Model Canvas – Week 3

• Cheap affordable wind turbine for the everyday American

• Be owner of cheap green status symbol

• Diversify energy portfolio,

• Fast payback than alternatives

• Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY

• House rental groups

• Contractors in home remodelling

• Direct sales• Web site• Home Depot

• 5 year full service Warranty

• Additional Maintenance after

• Want rebuy from customers

• Direct Sales• Leasing• Service Calls

• Cheap manufacturing process - Intellectual property

• Need Iniitial capital (600k)

• Manufacturing Facilities and Areas

• Endorsements by environmental groups, and local governments

• Continuous advertise and recruit new customers

• Continue R&D• Get certifications• Get approvals from

city councils • Gain Credibility

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils and neighborhood/??? (new regulations, permits).

• Contractors

• Cost-driven model to provide inexpensive, quality product

• May consider in-house leasing option, if upfront costs is large obstacle for customer and sufficient funding obtained.

Business Model Canvas – Week 4

• Cheap affordable wind turbine for the everyday American

• Cheap product more readily available

• Be owner of cheap green status symbol

• Diversify energy portfolio,

• Fast payback than alternatives

• Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY

• House rental groups

• Contractors in home remodelling

• Direct sales• Web site• Home Depot

• 5 year full service Warranty

• Additional Maintenance after

• Want rebuy from customers

• Direct Sales• Leasing• Service Calls

• Cheap manufacturing process - Intellectual property

• Need Iniitial capital (600k)

• Manufacturing Parts• Endorsements by

environmental groups, and local governments

• Continuous advertise and recruit new customers

• Continue R&D• Get certifications• Get approvals from

city councils • Gain Credibility

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils and neighborhood/??? (new regulations, permits).

• Contractors

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained (must be in future)

Business Model Canvas – Week 5

• Cheap product more readily

• Retrofit wind turbine for street and highway lamps.

• Create own wind turbines with pole manufacturers

• Be owner of cheap green status symbol

• Diversify green energy portfolio

• Fast payback than alternatives

• Single family wealthy, green home and land owner in CA, TX ,CO, WI, NY

• Cities• Lighting

Companies• Utilities

• Direct sales to cities (long term)

• Web site• Home Depot

• 5 year full service Warranty

• After 5 years, service charge

• Utility to manage after warranty expiration

• Extended warranty option

• Direct Sales• Service Calls• Leasing

• Cheap manufacturing process - Intellectual property

• $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

• Manufacturing Parts• Endorsements by

environmental groups, and local governments

• Continuous advertise and recruit new customers (city councils)

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs• Continue R&D• Get certifications• Gain Credibility

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils and neighborhood/??? (new regulations, permits).

• Lighting Manufacturers

• Electricians and Contractors for Installation/Maintenance

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained (must be in future)

• Retrofit wind turbine for street and highway lamps.

• Use competitive, local, renewable energy, strong green symbol

• Diversify energy portfolio,

• Fast payback than alternatives.

• Cities• Lighting

Companies• Utilities• County –

State Level

• Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

• 5 year maintenance and warranty

• After 5 years, service charge• Utility to manage after

warranty expiration• Extended warranty option

• Asset sales and service calls• Leasing and PPA? (under review)

• Cheap manufacturing process - Intellectual property

• $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

• Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs

• Environmental, bird, wildlife groups (regulations, publicity)

• City councils (new regulations, permits).

• Light manufacturers, installers to package product/services

• Electricians, contractors, light maintenance for additional workforce

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained.

Business Model Canvas – Week 6

• Retrofit wind turbine for street and highway lamps.

• Use competitive, local, renewable energy, strong green symbol

• Diversify energy portfolio,

• Fast payback than alternatives.

• Cities• Utilities• County –

State Level

• Direct sales to the city or utility, and forming long term relationship for maintenance and replacements.

• 5 year maintenance and warranty

• After 5 years, service charge• Utility to manage after

warranty expiration• Extended warranty option

• Asset sales and service calls• Leasing and PPA (Future)

• Cheap manufacturing process - Intellectual property

• $1.5 MM of capital to start manufacturing and distribution for year 1 and 2

• Endorsements by environmental groups, city consortiums for renewable energy, public utilities, city council planning department

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships for maximum reach

• Submit bids for city RFPs

• Environmental, bird, wildlife groups

• City councils (new regulations, permits).

• Light manufacturers,

• Installers/maintainers

• Research Labs• Turbine Certifiers

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained.

Business Model Canvas – Week 7

Business Model Canvas – Final

• Retrofit wind turbine for street and highway lamps.

• Create own wind turbines with pole manufacturers

• Be owner of cheap green status symbol

• Diversify green energy portfolio

• Fast payback than alternatives

• Cities (pilot)

• Cities leasing

• Lighting Companies

• Developer -> Utilities -> City

• Direct sales to cities (long term) PILOTS

• Small Wind Developer

• 5 year full service Warranty,

• After 5 years, service charge

• Utility to manage after warranty expiration

• Extended warranty option

• Leasing, PPA• Direct Sales to wind developers?

• Cheap manufacturing process - Intellectual property

• R&D talent• Endorsements by

environmental groups, and local governments

• Finance

• Continuously advertise and recruit new customers (city councils)

• Build relationship with city engineers and council members

• Understand customer, influencers, motivations, problems, competitors

• Form partnerships (developers, cities, installers, maintenance) for maximum reach

• Submit bids for city RFPs• Continue R&D• Get certifications• Gain Credibility

• City council (new regulations, permits).

• Environmental, bird, wildlife groups (regulations, publicity)

• Lighting Manufacturers

• Electricians and Contractors for Installation/Maintenance

• Research Labs• Turbine Certifiers• Small Wind

Developers• Utilities

• Cost-driven model to provide inexpensive, quality product

• Manufacturing costs and customer acquisition costs. • May consider in-house leasing option, if upfront costs is

large obstacle for customer and sufficient funding obtained (must be in future)

• Leasing, PPA• Direct Sales to wind developers?

QUESTIONS ?

Source: TAK Studio