Earning Revenues and Internet Business Models

Founder Institute Singapore Launch April 26, 2010 David Teten Teten Advisors, LLC Teten.com info @ teten.com New York, NY

n Advisors, LLC 2010 (Teten.com)

http://www.flickr.com/photos/zetotal/38412450 48/

Intro

Models

Tells

Network

Next Steps

• Business Models • Tells of People and Companies You Want to Know • Growing Your "Network 2.0" • Next Steps

n Advisors, LLC 2010 (Teten.com)

http://siteboat.com/what-is-an-internet-busi

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Investment Search Process (# Companies)
Acquirer/ Investor First Angels Highland TA Round on Typical Capital Associat Capital Angelso Entre(2008) es (2009) ft preneur (2006) (2010) 10,000* 1,000 8,000 750 2,500 500 NA NA 100 20,850 1,315 1,047 NA 577 3 2

Profiled Initially Targets selected Met Negotiated with Due diligence

n Advisors, LLC 2010 (Teten.com)

•Business plans received Highland data: Economist, Global Heroes: A Report on Entrepreneurship, March 14, 2009, page 9. TA Associates data: The Big Issue: Deal Origination, Corporate Financier, October 2006 First Round Capital data: Aktihanoglu , Murat. “NYC Entrepreneur Week Events Take-aways.” May 3, 2009. http://centrl.com/blog/?p=53 . Angelsoft data: Website, March 17, 2010.

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Relevancy Doesn’t Equal Intent
Consumer Intent to Do Commercial Transaction
Any ads with Budweiser Girls on a Mommy blog Botox ads on dating issues

High Intent

Geriatric shoes on a MMORPG gaming site

Dogfood ads next to photos of dogs

Low Intent

Low High Relevancy Relevancy Relevancy of the Ads Placed

Munjal Shah, “Revenues”, presentation to Founder Institute; http://www.flickr.com/photos/the_airrunner/174915900/; http://www.flickr.com/photos/cobblucas/3225553226/; http://www.flickr.com/photos/seiu/374542734/; http://www.flickr.com/photos/playerx/3574370486/; http://www.flickr.com/photos/defrostca/3491557470/ n Advisors, LLC 2010 (Teten.com)

Intro

Models

Tells

Network

Next Steps

• Business Models • Tells of People and Companies You Want to Know • Growing Your "Network 2.0" • Next Steps

n Advisors, LLC 2010 (Teten.com)

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Growing Companies

•Techcrunch •Mashable •Mercurynews.com/vc •Google Reader •Skygrid

n Advisors, LLC 2010 (Teten.com)

http://flickr.com/photos/laserstars/908946494/sizes/o/

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Companies that Hired People/Firms Like You

n Advisors, LLC 2010 (Teten.com)

http://www.flickr.com/photos/foundphotoslj/1134148114/

Intro

Models

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Network

Next Steps

Character – Competence – Relevance – Strength – Information – Number – Diversity

• Business Models • Tells of People and Companies You Want to Know • Growing Your "Network 2.0" • Next Steps

n Advisors, LLC 2010 (Teten.com)

Intro

Models

Tells

Network

Next Steps

Character – Competence – Relevance – Strength – Information – Number – Diversity

Network Valuation Formula Ch = Character Co = Your Firm’s Competence R = Relevance of the contact S = Strength of your relationship I = Information N = Number of people N D = Diversity n n n n n n1 =

= D S ∑ (Ch *Co * *I ) *R *

David Teten and n Advisors, LLC 2010 (Teten.com) Scott Allen, The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Biography Analysis Software

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Case study: Daniel Zumino •Prominent French angel investor •November 1999: Sent mail to Stanford GSB alumni list seeking capital for startup •March 2000: Raised $8m through referral

David n Advisors, LLC 2010 (Teten.com) Teten and Scott Allen, The Virtual Handshake: Opening Doors and Closing Deals Online (www.TheVirtualHandshake.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Gated Communities for Executives • IERGOnline.com • INMobile.org • Sermo.com

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Online meets Offline

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

From Cold Calling to Warm Cold Calling

n Advisors, LLC 2010 (Teten.com)

http://www.flickr.com/photos/23439761@N03/3258313816/sizes/l/

Intro

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Data from Business Cards

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Data from Email and Files

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Data from the Cloud

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Targeting • Directly-relevant companies • Fast growth companies

n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Virtual Community Platforms / Social Network Sites • Groups.Yahoo.com • Groups.Google.com • Grouply • LinkedIn • Xing

2008 Anderson Analytics, Linkedin, SPSS, http://www.marketingcharts.com/interactive/linkedin-users-have-high-personal-financialsuccess-6743/linkedin-anderson-analytics-busy-decision-makers-august-2008jpg/ n Advisors, LLC 2010 (Teten.com)

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Character – Competence – Relevance – Strength – Information – Number – Diversity

Mailing Lists and Discussion Forums • Customize standard intro • Lurk before you leap • Dive in, but don’t splash

n Advisors, LLC 2010 (Teten.com)

http://flickr.com/photos/kaibara/1231278142/si

Intro

Models

Tells

Network

Next Steps

• Business Models • Tells of People and Companies You Want to Know • Growing Your "Network 2.0" • Next Steps

n Advisors, LLC 2010 (Teten.com)

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Free Market Research for Entrepreneurs and Other Cheapskates
a free talk! (of course) • Preview presentation: http://www.teten.com /market-research . • Wednesday Night, 6-8pm • Sponsor: NUS Techno Venture Forum • National University of Singapore, I3 Auditorium, 21 Heng Mui Keng Terrace Level 1

n Advisors, LLC 2010 (Teten.com)

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Slides at Teten.com/deals Free book download at TheVirtualHandshake.com

"Bulldog Conversation: Best Practices in Deal Origination" Tuesday, April 27, 12-2:00 PM Brewerkz Riverside Point, 30 Merchant Road #01-05/06 Sponsor: Yale Club of Singapore / DUAL Cost: S$20. RSVP: shawn@yaleSG.org

n Advisors, LLC 2010 (Teten.com)

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Acknowledgments to… • Manjul Shah, CEO, Like.com • Jay Jamison, Co-Founder & President, Moonshoot • Jed Chen, SmithStreetSolutions, for help in research and graphics • Darren Luo • Michael Rappa, http:// digitalenterprise.org/models/models.html

n Advisors, LLC 2010 (Teten.com)