HOW DO YOU APPROACH A NEW MARKET?

#TFWORKSHOP

TheFamily

code: lamifasisi

WIFIWIFI

DISAGREE ON TWITTER!

#TFWORKSHOP

#TFWORKSHOP

NEW MARKETS?

BLAKE ARMSTRONGVENTURE PARTNER AT THEFAMILY

@BLAKESTRONGARM

The information contained in this document is being provided on a confidential basis to the recipient solely for the purpose of evaluating TheFamily (“TheFamily” or the “Company”). The document is intended for the exclusive use of the persons to whom it is given. By accepting a copy of this document, the recipient agrees, for itself and its related bodies corporate, and each of their directors, officers, employees, agents, representatives and advisers, to maintain the confidentiality of this information. Any reproduction or distribution of this document, in whole or in part, or any disclosure of its contents, or use of any information contained herein for any purpose other than to evaluate an investment in the Company, is prohibited. The information contained in this document or subsequently provided to the recipient whether orally or in writing by, or on behalf of the Company, or any of its respective related bodies corporate, or any of their respective partners, owners, officers, employees, agents, representatives and advisers (the “Parties”) is provided to the recipient on the terms and conditions set out in this notice.

NEW MARKETS

OVERVIEW Theory

Application

TAKEAWAYS Patterns

IntrospectionFrameworks

DEFINITIONS INDUSTRY

DEMAND

MARKET NEW (NASCENT) MARKET

WHY DO NEW MARKETS FORM?

SHIFTS IN

• WHAT IS BEING SOLD

NEW MARKET DEMAND ANALYSIS

• HAS MARKET CLEARLY STATED ITS NEED?

INTO THE UNKNOWN ANALYZING NEW MARKETS

0% —————————— 100%

PUSH PULL

IDEO Innovation Matrix

Tim Brown, CEO IDEO

Push

Pull

Established Market

New Market

BetterFaster

Cheaper

Brave New

World

NEED / PAY

ESTABLISHED MARKET

PULL

MARC SAMWER ROCKET INTERNET

CO-FOUNDER “We also innovate. We improve

the ideas. We make the businesses better because we

NEED / PAY

ESTABLISHED MARKET

PUSH

MATT ROGERS NEST CO-FOUNDER

“It’s good to have a grand vision and this huge roadmap of things you want to do, but it’s good to start

with something really really concrete, discrete – and that alone could be a business. So that’s what we pitched. We pitched the idea of

let’s go build a company based on thermostats.”

NEED / PAY

PULL

NEW MARKET

STUART BUTTERFIELD SLACK CEO

“And then over the course of 3.5 years working on the game, we got up to about 45 people. And every time one of our

internal communication problems got to the point where we just couldn’t stand it anymore we would spend the minimum

number of minutes addressing that and then move on and slowly iterate. So we didn’t know it at the time and it wasn’t

obvious until [like] a year ago, in this very non self conscious, non speculative way we were designing Slack – but based

on the actual needs that we had as a team.

This is the good news and the bad news. After a couple years we had some insight into why it was successful. The bad news

is that it’s a hard thing to replicate – to be able to actually design something while not actively thinking about it – but it’s definitely the best way. Because I think that one of the biggest

problems that software designers, product managers, entrepreneurs have is the temptation to be really

speculative with what some hypothetical person would want as opposed to something that you know you need.

PUSH

NEW MARKET

APPLE

“advanced personal productivity tool for knowledge workers”

VAPOR COMMUNICATIONS

PUSH

NEW MARKET

“MARKETS THAT DON’T EXIST DON’T CARE HOW SMART YOU ARE.”

- MARC ANDREESSEN

YOU?

0% ———————— 100%

BUILDING MONOPOLIES IN NEW MARKETS

CLAIM

DEMARCATE

CONTROL

Constructing Markets and Shaping Boundaries: Entrepreneurial Power in Nascent Fields Filipe Santos, INSEAD; Kathleen Eisenhardt, Stanford

FAKE IT ‘TILL YOU MAKE IT • USE METAPHORS

• SIGNAL LEADERSHIP

• CONSTRUCT YOUR IDENTITY

WHITE PAPERS

CONVERT COMPETITORS INTO COLLABORATORS • REVENUE SHARING

• EQUITY INVESTMENT

EQUITY INVESTMENT

WINNER TAKE ALL [ACQUISITION STRATEGIES]

• ELIMINATE COMPETING MODELS

• INCREASE MARKET COVERAGE

• BLOCK COMPETITOR ENTRY

BLOCK ENTRY

SLACK, HAS MADE ANOTHER ACQUISITION TO ADD MORE FUNCTIONALITY TO ITS PLATFORM AND POSITION ITSELF AS A

SHARPER COMPETITOR AGAINST THE LIKES OF MICROSOFT. IT HAS BOUGHT

SCREENHERO, A Y COMBINATOR ALUM…

SOFT POWER TACTICS • ILLUSION

• EXPLOITATION

• TIMING

WIIFM

“OVER TIME, STARTUPS THAT CLAIM, DEMARCATE, AND CONTROL THEIR POSITION IN A MARKET ARE MORE

LIKELY TO SUSTAIN NEAR-

TAKEAWAY

PUSH ——————————— PULL

IF PUSH —> VALIDATE YOUR MARKET!

IF PULL —> BUILD IT AGAIN - BETTER!

The information contained in this document is being provided on a confidential basis to the recipient solely for the purpose of evaluating TheFamily (“TheFamily” or the “Company”). The document is intended for the exclusive use of the persons to whom it is given. By accepting a copy of this document, the recipient agrees, for itself and its related bodies corporate, and each of their directors, officers, employees, agents, representatives and advisers, to maintain the confidentiality of this information. Any reproduction or distribution of this document, in whole or in part, or any disclosure of its contents, or use of any information contained herein for any purpose other than to evaluate an investment in the Company, is prohibited. The information contained in this document or subsequently provided to the recipient whether orally or in writing by, or on behalf of the Company, or any of its respective related bodies corporate, or any of their respective partners, owners, officers, employees, agents, representatives and advisers (the “Parties”) is provided to the recipient on the terms and conditions set out in this notice.

QUESTIONS?

SEE YOU SOON!

LOVE.

THEFAMILY.CO___

___