Business models 101

The basis of SaaS, Marketplaces & eCommerce

@rodrigoMrz Belgrade, May 2014

Agenda

0. Intro to Point Nine

1. Marketplaces

2. SaaS (Software-as-a-Service)

3. Ecommerce

a. Major characteristics

b. Monetization

c. Key challenges

d. Top 3 KPIs

e. Examples & Trends

@rodrigoMrz

Intro to Point Nine Capital

@rodrigoMrz | rodrigo@pointninecap.com

• Berlin-based, investing in Europe

• 40mEur fund, focus in seed & series A

• SaaS and Marketplaces

*CJ

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Funding sources

Idea Startup Early Maturity Growth

Clients

Crowdfunding

F&F

Accelerators

Angels

Fondos VC

Private equity

IPO

Debt

$

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3 business models

Supply Demand %

Software Users $

Product Customers $ $

Getting a commission for intermediating between supply and demand

SaaS: Charging users for a license fee for accessing a software

Marketplace

Charging users for accessing a software

SaaS

Selling products to customers and getting a margin for it

eCommerce

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1. Marketplaces

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Marketplaces (i) – intro

Challenges

• Generate liquidity

• Chicken and egg

• Monetization timing

Characteristics

• B2B / B2B2C / B2C / C2C

• Inventory vs digital

• Network effects

Supply Demand %

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Marketplaces (ii) – key metrics

When you start

• Supply: # of new/cumulated

listings

• Demand: growth in sign-ups

• Active Users (buyers / sellers)

• # Transactions

In the next phase

• Recurring customers

• Successful items/listings per

total

• Take Rate (% as of GMV)

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Marketplaces (iii) – examples Full-stack

Digital marketplace

1-click booking

Mobile-first

Peer2peer

Pioneers

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2. Software as a Service (SaaS)

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SaaS (i) – intro

Challenges

• Product development

• Marketing

• Conversions

Characteristics

• B2B / B2C

• Subscription

• Quality / Speed of product

• Cloud (no maintenance)

• Upfront payments

Software Users $

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SaaS (ii) – key metrics

When you start

• Inbound traffic

• Conversion funnel

• Churn

In the next phase

• MRR growth

• CAC: Only paid; for

each channel

• Churn!

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SaaS (iii) – examples Horizontal

Mobile-first

Platforms

Pioneers

Consumerization

Vertical

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3. eCommerce

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eCommerce (i) – intro

Challenges

• Marketing costs

• Operations

• Competition on price

• Rocket Internet ;-)

Characteristics

• B2C / B2B

• Margins

• Own vs drop-shipping

Product Customers $ $

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eCommerce (ii) – key metrics

When you start

• CPO

• Margins

• AOV

• Revenue growth

In the next phase

• Recurring purchase

• Free-cashflow

• Inventory

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eCommerce (iii) – examples

Flash-sales

ReCommerce

Online brands

Pioneers

Hardware

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If you want to stay in touch …

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Follow us on Twitter @rodrigoMrz | @PointNineCap

rodrigo@pointninecap.com

Thanks!