my linkx final

myLinkx

Home automation in 2010:Standards have been established, components are becoming

commoditized yet the mass-market hasn’t been cracked.Our goal: Make home automation affordable for the average

home owner

Market Size: $121 bn

• Our Demo Challenge Champion!Special Congrats to Steve Blank!

Team myLinkx• Jeremiah Anderson: Marketing, Website

Finance and Sales Professional, Sales Management at NVIDIA

• Waseem Bawa: Channel Partnerships – Builder/SecurityDirector of Operations for National Inventory Service

• Amar Pamar: Channel Partnerships – Electrical/AV, SW DevEnergy Management Consultant. Software Engineer.

• Thomas Ruge: Product Research, Demo BoardPhysicist, multiple Startups, SW Mgmt at NVIDIA

Key Partners

-Hardware Vendors-Utilities (PG&E)-Local Specifiers (architects, lighting designers, interior, etc.)-Dealers (Installers, electricians, security contractors)

Revenue StreamsCost Structure

Channels

Key Resources

-Physical: cloud server-Human: Developer-Financial for scaling business

Key Activities Value Proposition

-Security / Safety-Energy / Cost savings-Convenience / Comfort-Coolness / geek factor-Dealer: Shorter / Simpler Installation

Customer Relationships

Customer Segments

- Software Development- Sign up

dealers/installers- Inventory mgmt- Project setup- Payment Management

(liens etc.)

- Asset Sale + Licensing (initial)- Subscription fees #1:Updates/monitoring #2:Remote Control / Storage #3Remote security cameras-Project financing-Demand Response

- Web Sales- DIY Channel- Dealer / Installer

- COGS- Operating Costs (Development, Marketing, G&A)- Sales (Commissions)

- Communities- Personal Assistance- Self-Service

- Home Owners-SME- Dealer / Installer

Phase 1: Canvas

Phase 1: Key LearningsThought

A. Mainstream Market For Home Automation Exists

B. Customers Willing to Pay Approximately $7,000 for Install

C. Willingness to Pay $50/month Recurring Fee

D. Key Features: Lighting, Security, HVAC, AV

RealityA. Confirmed there is a

mainstream demand for home automation , but how to scale is concern

B. Willingness to pay closer to $3.2K!!!

C. Average willingness to pay for recurring fee is $30/month

D. Confirmed Lighting, Security and HVAC most desired services

70 Potential EndCustomer Interviews

40 1:1, 30 Survey

3 Advisor MeetingsAndy, Steve, Gabriel

10 ChannelPartner Interview

Actions

Key Partners


Channels

Key Resources

Key Activities Value Proposition Customer Relationships

Customer SegmentsDirect Customers: - Electricians - Security - Local SpecifiersSpec Customers - Homebuilders - Commercial Real

Estate DevelopersSuppliers- HW Vendors

- Retrofit - dealers/installers

- New Home Developers

- Commercial Retro- Strategic – GE,

Philips, PG&E- Realtors- Web Sales/Direct

- Physical: Cloud Dealers

- Human - Developers - Sales/Biz Dev/Mktg- Financial for Scaling

Business

- Main Box Hardware COGS- Software Development- Beta Customer Costs - SG&A

- Communities- Personal Assistance- Self-Service- Downstream Sales Enablement / Biz Dev Program

- SME- Dealer / Partner- Home Owner- Commercial Real Estate Owners- Vacation/ Secondary Home Market

Phase 2: Canvas


A. Home builder a possible channel

B. Viability of vacation home market

C. Solve a pain point caused by incumbents (Crestron, C4, etc)

D. Electrical contractors as a possible channel

RealityA. Cost must be lower (~ 1%

of home price or less) and value prop higher than we anticipated; requires local customer support

B. Pain point validated, but this is a small, niche market

C. Validated pain point (i.e. no programming control). But, some are cautious about allowing another vendor to their system

D. Okay with $500-$800, excited at $1500 per $5K install. Install must be ≤ 1 day, demo & training required

Spoke to homeownerswith existing systems

Spoke to cold andwarm weather vacation

home owners

Meetings with Electricalcontractors

Actions

Phone conference with Greg at National

Homebuilder

Phase 3: CanvasKey Partners


Channels

Key Resources


Customer SegmentsDirect Customers: - Electricians - Regional Security - Local SpecifiersSpec Customers - Homebuilders - Commercial Real


- Retrofit - dealers/installers

- New Home Developers

- Security Providers- Commercial Retro- Strategic – GE,

Philips, PG&E- Realtors- Web Sales/Direct- A/V Dealers



Business





A. New Home Builders is a Scalable Channel. Potential AV upgrade market

B. Home security providers is a scalable channel

C. Creating a demo board will generate interest and demand

D. Will be able to generate solid demand through online campaigns

RealityA. Validated opportunity, but

additional pricing pressure as well as need to add AV. Spoke to AV dealers and discovered huge opportunity for upgrade market of existing systems.

B. Three interested, but difficult to work with. Extremely fragmented market. Need to target larger national players.

C. Well received and generated more interest, credibility and opened more doors than expected. Need tighter elevator pitch and plan for show demos.

D. Very good CTR, but few qualified leads. Need more targeted campaign around specific solutions (upgrade, lighting, security, etc.)

Created Demo BoardColumbia demo (50+)

Engaged with several regional security

Providers (15)(Bay Area, Sac)

-Created AdWordscampaign

Actions

Initial discussionswith Pulte

And AV dealers

Phase 4: CanvasKey Partners


Channels

Key Resources


Customer SegmentsDirect Customers: - Electricians - Regional Security - Local SpecifiersSpec Customers - Homebuilders - Commercial Real




Business





A. Recurring Fee Strategy Direct from End Customer

B. Upgrade Solution with AV Dealers for High End Systems

C. Electrician Contractor is Viable Channel for Retrofit Market

D. Scale With New Home Builders

RealityA. Need to embed cost in

existing monthly fee, i.e. Security, Cable, Broadband, Mortgage, HOA.

B. AV dealers continue to provide interest and validate upgrade model.

C. Model validated, but more efficient acquisition process needed. Explore relationships w/ Electrical Contractor Unions.

D. Builders want to partner, but need a lower price-point. Working with Asian vendors to achieve lower BOM for builders.

Met with iControl CEO

Foster ElectricianRelationships

Foster AV DealerRelationships

Engage w/ Leads

Several Meetingswith Pulte Homes

Actions

GTM Strategy and Crossing Chasm2. MainstreasmExisting

Services ($170M)- Large Home Security: #2 - #11 U.S Home Security (4M Cust.) -Cable/Broadband: #2 - #5 (55M Cust.)

1. GTM ($20M)-High End Upgrades-Electrician Channel- Regional Security

3. Full Service Mass Adoption

-New Home Builders: KB, Pulte (585K New Homes in a Down Year of 2010)

• MyLinkx is a Viable & Scalable Business!– Market is expecting smarthomes to become the norm in 10-15 years. – Demo board well received. Interested customer(s) self selecting to come talk to us.– Customer willing to pay recurring fee for SAAS automation (ADT Pulse, EC Research, etc)– However, Recurring fees need to be embedded in existing fee for home owner in

order to achieve scale.• Security, Cable/Broadband, Mortgage, HOA

– HW to become commodity at scale, need to be a SW business (licensing fee model?)– Mass adoption through new home builders and/or existing service providers

• Next Steps / Go to Market Strategy– Short term ($20M): AV Dealers on Upgrade Model; Electricians on Retrofit

• Reach early adopters• Cash Flow, Validate UI

– Ramp ($170M): Go after #2-11 in security & #2-5 broadband/cable• Achieve scale and cross chasm

– Long Term (?): Builders (eye on the prize). • Achieve full service scale and build brand!

Final Verdict

• Our Teaching Team– Steve Blank – Oren Jacob– Jon Feiber– Jim Hornthal– Bhavik Joshi

• Our Advisors– Steve Weinstein– Andy Smith– Gabriel Kra

Thank You!

• Our Demo Challenge Champion!Special Congrats to Steve Blank!

my linkx final

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