Eb5 investments columbia univ jan 2014

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


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?


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


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?



• 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


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


• 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


• % 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?



• 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


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





• Private Banks

• Chambers of Commerce

Co-opetition:

• Immigration Lawyers


• Foreign Investor Network (international)


• 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



GET: Direct Sales

KEEP: Ongoing Relations

GROW: Referrals


• Seek $5M+ funds

• Real Estate Investments



• Access to Low Cost Capital

• Increased Visibility of Projects



• % 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?



• 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


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


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





• Private Banks

• Chambers of Commerce

Co-opetition:

• Attorneys


• Foreign Investor Network


• Google AdSense

• Attorneys & Advisors: Due diligence costs

Recurring:• Compliance

• Website

• Foreign partnerships

• Admin & Management Fees

GET: Referrals, Partnerships



GET: Direct Sales, Conferences

KEEP: Trusted Partner

GROW: Referrals

Businesses:

• Seek $5M+ funds

• Real Estate


Businesses:

• Project Visibility


• Placement Fees

Market Size


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


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


Key Takeaways:


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..


Eb5 investments columbia univ jan 2014

Business

Transcript of Eb5 investments columbia univ jan 2014