city vision nyu 2015

Team MembersFernanda AlvesJoshua DenholtzManuel Roggero

We help initiate and accelerate the revitalization process for

depressed cities

Customer Segments

4

Local Government

Private Owners*

Community Members 70

6

Total

3Event Organizers

83

+ High Line: Director facilities & engineering+ HPD: Assistant Commissioner for Building and Land Development

Business Model Canvass Designed by: City VisionDate: 08.23.2015 Version: 1.0

Key Partners Key Activities Value Proposition Customer Relationships Customer Segments

Private Abandoned Property Owners Red Tape Management (Permits)Local Government Technical Assessment of SpacesCultural performce Associations Insurance ComplianceEvent Organizers Community Engagement

Key ResourcesProperty use Contracts

Key People: - Legal Experts - Digital Front Back end ProgrammersGovernment PermitsPartnerships with Local SMBs

Cost Structure

1. Variable Cost: Lease contract of abandoned spaces. 2. Fixed Cost: Capital Improvements to abandoned spaces to get them up to "usable" status. 3. Insurance

Multi-sided PlatformThis project is a multi-sided platform because value is exponentially generated as the two of the main agents decide to join. The three main agents are: (1) Owners of the Abandoned Spaces (2) Event Organizers (3) Customers: People who currently assist cultural activities (Broadway Musicals, Opera, Ballet, Theater)

Designed for: Lean Launch Pad (MG-GY 9781)

Revenue Streams

1. Pay per Show 2. Annual Subscription 3. Sponsorships

Platform for joining 4 key stake holders in order to repurpose large urban abandoned spaces within NYC: (1) Community members(2) Local Government(3) Private Owners(4) Event Organizers

Community NeedsPeople need to feel that their community has a clearly defined identity. They feel that communities are being lost to larger spaces such as cities. They urge for spaces to speak and get to know their fellow neighbors.

GET- Partnerships with Cultural performance associations- Revenue share from ticket sales through local SMBs.- Parnerships with Event Organizers. KEEP- Community engagement: online voting of events. GROW- Deploy platform into other US cities - Referral discount program- Referral revenue share program- Free entrance for community members

Channels

Digital Channels1. Mobile APP (Android & iOS)2. Web Site3. On site Digital Kiosks Physical ChannelsLocal Supermarkets, Bodegas, Coffee Shops and Barber Shops. Mass Ticket Sales PlatformsPurchase of event tickets through already established sites: Ticket Master, eTix, Eventbrite.

Day 1

What we thought What we learned

We defined vacant properties and abandoned properties as the same

Many government agencies would be our customers

Most industrial spaces apt for repurposing were privately owned

Abandoned: Properties not paying taxesVacant: Simply not used

Narrowed down the government customers: HPD, EDC, Parks & Recreation

Most are government owned by way of county title search

Key Learnings: Day 1

The value Proposition only had to be one: Betterment of the community

In a multisided market: each customer segment needed a unique value proposition

Property Owners were one customer segment Property Owners had two distinct segments: Private & Public.

Finding the Owner

See Unique Space

City Tax Map to find the block and lot number

Complete a title search using County Clerk’s Records

Owner

Business (Anonymous)

State, Department of Business Records Office Clerk

(by mail only in NY)

Market Size – Day 1 Business Model Canvas

$3.65 Million

$3 Billion

34 US cities with population over ½ millionOne event per week$10 community member ticket saleUS Census age 20-34 (20.9%)Median population of 34 cities

Percent of NY Market$913 Million

If 10% of population goes twice per year

1.Red Tape Management (Permits)

2.Technical Assessment of Spaces

3. Insurance Compliance4.Community

Engagement

1.Property use Contracts2.Legal Experts3.Digital Front Back end

Programmers4.Government Permits5.Partnerships w/Local

SMBs

1.Private Abandoned Property Owners

2.Cultural performance Associations

3.Event Organizers4.Local Government

Digital Channels1. Mobile APP (Android & iOS)2. Web Site3. On site Digital Kiosks4. Ticket Master, eTix, Eventbrite.Physical ChannelsLocal Supermarkets, Bodegas, Coffee Shops and Barber Shops.

1. Pay per Show 2. Annual Subscription 3. Sponsorships

1. Variable Cost: Lease contract of abandoned spaces.2. Fixed Cost: Capital Improvements to abandoned spaces to get them up to "usable" status. 3. Insurance

GET: WOM Local SMBs, Cultural performance associations customer list, Event Organizers customer listKEEP: Online voting of events.GROW: Other cities, Referral discount/rev share program, Free entrance for community members

Local Government HPD

Community Engagement

Lower administrative costs

Private Owners Agents

Industrial / Commercial Buildings

Capital Improvements

Maintaining Tax Revenue

Maximize Cash Flow

Safety to people around building

Affordable Housing

Local Government EDC

Local Government Dpt. Parks

Day 2

Key Learnings: Day 2

What we thought What we learned

Event organizers are willing to sign up front lease contracts for a unique venue

Revenue Model: Product Sale (tickets sales)Subscription

No, it is too risky for an event organizer to have an upfront lease

Revenue Model: Leasing

Government segment clearly defined: HDP (Housing Preservation & Dev)

Government segment clearly defined: EDC (Economic Development Corp)

HPD is willing to invest in capital improvements to get industrial buildings up and running

HPD only interested in developing affordable housing not cultural activity venues




Engagement



SMBs






Private Owners / Agents

(Industrial)Capital Improvements

Day 3

Maintaining Tax Revenue??

Maximize Cash Flow

Safety to people around building??

Local Government EDC

Concert Goers(18-34)Socialization

Event Organizers(5000+ people)Unique and Turn Key

site (20,000 + sqft)

Govt Processes, Mail, Email, Phone

Multiple Listing Sheets, Real Estate Agencies, Mail (private owners)

Mobile App, Website, Ticket Websites, Local Business Networks

Website, Sales, Telemarketing

Paid from event-term sublease

Fee per ticket sale, subscription

Key Learnings: Day 3What we thought What we learned

Competitors rented city spaces in competition with us

We thought that we were bound to NYC

Customer Segment were all community members

The EDC would be our customer

Petal Diagram: No competitors in our unique space of repurposed industrial buildings

New Hypothesis: Expand to cities that have revitalization on gov. agenda

Narrow down to a specific subgroup: Millennials (20-34) university goers

The EDC does not have an interest in our services

We thought that these unique venues had more value for our customer segment

True: 30% of targeted Millennials were willing to pay more than double for a unique concert venue. Event organizers can reap more value (revenue) from our unique venues.

Corporate Events

Mass Market EventsPop up Stores

Office Space

http://virtual-offices.credio.com/l/1/Davinci-Virtual-Office-Solutions

Approvals ProcessRights to the space

Municipal Zoning approval (Zoning Officer/Panel)

Engineer

Engineer (local Department of Buildings)

General Contractor

Building Permits (local Department of Buildings) Plumbing, Structural, Electrical

General Contractor begins work

Building Inspector conducts plumbing, structural, electrical and final inspections

Building Inspector issues Certificate of Occupancy

Engineer (local Department of Buildings) issues site approval

LIVE NATION PRESENTSCODE

10967-ZX4

SEC #103

STAND UP

THU SEP 24 2015

The KillersLIVE AT THE GOWANUS BAT CAVE

Brooklyn, NYC

ADULT

THIS

TIC

KET

IS N

OT

FOR

RESA

LE, N

OIN

REF

UN

DABL

E

$65.00

LIVE NATION PRESENTSCODE

10967-ZX4

SEC #103

STAND UP

THU SEP 24 2015

The KillersLIVE AT YANKEE STADIUM

Bronx, NYC

ADULT

THIS

TIC

KET

IS N

OT

FOR

RESA

LE, N

OIN

REF

UN

DABL

E

$30.00

The Millennial Experiment




Engagement



SMBs






Private Owners / Agents

(Industrial)

Capital Improvements

Day 4

Maintaining Tax Revenue??

Maximize Cash Flow

Safety to people around building??

Government: Brooklyn Council Members

Concert Goers(18-34)

Socialization

Event Organizers(5000+ people)

Unique and Turn Key site (20,000 + sqft)

Govt Processes, Mail, Email, Phone

Multiple Listing Sheets, Real Estate Agencies, Mail (private owners)

Mobile App, Website, Ticket Websites, Local Business Networks

Website, Sales, Telemarketing

Paid from event-term sublease??

Fee per ticket sale, subscription??

Brand Sponsorships??

Commission from space sharing platform

Platform for a unique, large space marketplace (airbnb)

Key Learnings: Day 4What we thought What we learned

Concert goers are part of our customer segments

We had event planners and concert goers as customers

Local people in the Gowanus community would be interested in revitalizing the Bat Cave

Individual government agencies have funds for repurposing buildings.

Event goers are not a segment for our business model, they are a key partner

Our best customers are city council member and renters of the unique space, not exclusively event planners

Over 50% of people in the neighboring Whole Foods Market were willing to sign a petition to revitalize the Bat Cave

Our government segment are the local council members.

Event Planners would sublease unique space in the range of $10k to $100k

For a space Event Planners would not realistically pay over $50k

Customer Segment Personas

Concert Goers - Millenials

• Millennial’s age 20-34, male and female• College students or had just entered into a career and/or

first jobs.• Love music, always walk around with headphones.• Ethnically and racially diverse • They purchase multiple concert tickets a year • They desire an active social life• Music is an important, if not the most, part of their lives • They value technology and are extremely “connected”,

they use multiple devices• They value authenticity as more important than content• They aren’t usually influenced by advertising, they are

looking for a more personal approach

• Young, active council members.• On the committee Housing & Buildings and or Land Use.• Understands vibrancy as unique venues for cultural

activities.• Engaging and prone to take innovative risks.• Needs supports from community members in order for

reelection.

City Council Members

Location price experimentDear Amanda,

Thank you so much once again for taking the time to talk to me last Tuesday. I hope you can also help us with a few follow up questions. Through EDC we have some investors really passionate about our idea and ready to put down $1.8 million dollars into the property you see below, with the before and after version. The Before Version After Version

The property will be fully renovated and ready to host any kind of events. Would your company pay $200,000 per event at this historical and unique location? How often would you rent it?

We really appreciate your feedback.

GET:

KEEP:

GROW:

V 1.1

Local Council Members

Socialization, Events

Renters(Event Organizer,

Retail)

Unique Real Estate Location

Sublease

Keeping voter base happy

Local Political Motivations

(safety, community activities, spur business with

interesting venues)Established amount of

exclusive access or rights to the property for income generation

Council Member Chief of Staff by

phone/email

Event Goers

Identify value added govt properties with revitalization interest

Organize Financing and Execution of

Fix Ups

Crowd Funding Platform

Voters (community members)

Retail Space Web Listing

Website/Phone Calls to Event Organizers

Fundraising

Fixed: Engineering, Raw Materials, Contracting, Permit/City Fees, Insurance, Web Development

Variable: Maintenance, Telemarketer

Lobbyist

Web based Petition

Long term Contract

Social Media Content

Advertising

The Petition for Gowanus Bat Cave Revitalization

Petition served two purposes

1. An experiment to test voting base of a counsel member’s interest in taking action to rehabilitate the Gowanus Bat Cave

2. Establish and begin developing the Customer Relationship with City Council Members by way of a petition

Testing Hypothesis with ExperimentsHypothesis Experiment Pass/Fail Criteria

Cities beyond NYC are interested in revitalizing abandoned spaces.

Price range for lease per event between $10k – $100K

20% of our targeted abandoned properties can be fixed up at an economically feasible price for under $1M

People within a community care for repurposing vacant industrial buildings.

Millennial event goers are willing to pay more for an event held in a unique venue.

Call various city government with a donation pitch for revitalizing industrial spaces

Direct email to event organizers offering a lease of $200k per event on a repurposed industrial building

Solicit a non binding quote from an engineer and contractor

Sign a petition for repurposing Gowanus Bat Cave (Proxy)

True ticket sale comparison: Yankee Stadium Concert ($30 ticket) vs. Gowanus Bat Cave ($65 ticket)

At least 25% of possible customers choose higher

ticket value

Result

31%

59%At least 50% of community

members sign petition

Range of lease amount at least: $30K

Max$50K

Within five phone calls reach an interested official TBD

TBD1 of 5 visited sites meets the

capital expense requirements

Here’s What we are Going to Do Next

1. COMPLETE EXPERIMENT: Call various city government with a donation pitch for revitalizing industrial spaces

2. COMPLETE EXPERIMENT: Solicit a non binding quote from an engineer and contractor

3. FORM HYPOTHESIZE: How can we grow the city council members as customers?

4. FORM HYPOTHESIZE: What kind of agreements, contracts, and opportunities can get from revitalizing government spaces?

5. FORM HYPOTHESIZE: What revenue amount can we fund raise from crowd sourcing and other resources?

Customer Segments

Cost Structure

Business Canvass Box

Customer Relationships

Revenue Streams

Distribution Channel

city vision nyu 2015

Education