Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

TWIBO FINAL PRESENTATION

Leansanity Team, UC Berkeley, LLP 2013

Total Customer Interviews: 94

Team members

Haohan (Alfred) YuanMaster of Financial Engineering, ’13

Hacker

Kuan (Kevin) YangMaster of Financial Engineering, ’13

Customer Development

Zhibai (Blake) HanM.Eng. IEOR, ’13

Chinese Social Media Expert

Harvey DuanEWMBA, ’14

Business Development

Initial Idea: Providing Cutting-edge Weibo Online Marketing Solutions

Three segments:

Celebrities,Private Schools,Businesses

Self-service Tool:• Reposting• Analytics

Diagram of MVP

Initial Product Features

What we did

Question But is there a large enough market?

Market Size

What we found

Number of Twitter Users140,000,00

0

% of Twitter Users with over 100,000 followers 1%

Number of Twitter Po 1,400,000

% of converting users 2%

Number of paying customers 28,000

Average payment per customer per month $100

Target Market$33,600,00

0

Invalidated:

Market Size

Too Small

What We Learned

“Follow the money.” Brett Wilson, CEO of TubeMogul

Canvas Version 2: Serve Businesses

Focus:

Businesses

Find Talented Marketers;Add Authentic Followers;

Partner:

Chinese Social Media Marketing Agencies

Matching American Businesses with Chinese Agencies

Key Activities

What we did

Great!

What we found

“We were a bit surprised at the monthly fee — we really are not in a budgetary position to partner with you.”

—Lia L. KennettGeneral Manager, D: All Things Digital

Canvas Version 3: Business Model Validation

Enterprise weibo management feevs

Enterprise subscription fee platform

Educating customer segments

Educatedvs

Non-educated

Customer Acquisition Cost

Educated customer 1 hour lead gen 4 hours of education +

business development 25% acceptance rate $50 per hour CAC = $1,000

Non-educated customer 1 hour lead gen 1 hours of education 10% acceptance rate $50 per hour CAC = $1,000

Educated Non-educated0

200

400

600

800

1000

1200

Customer Acquisition Cost

LTV – Subscription Fee Platform LTV = expected life x avg revenue x gross

margin

Tweet re-posting only for non-educated customers

Expected life = 6-9 months Avg revenue (tweet re-posting) = $100 per

month Gross margin = 90%

LTV = $540-810CAC > LTV

$1,000 > $810

LTV – Weibo Management

LTV = expected life x average revenue x gross margin Full-service social media agency Expected life = 2 years Average revenue per customer over expected life =

$17,840 Months 1-2 = $2,000 per month (basic) Months 3-4 =$4,000 per month (advanced) x 50%

retention = $2,000 Months 5-6 = $6,000 per month (pro) x 25% retention =

$1,500 Months 6-12 = $6,000 per month x 10% retention =

$540 Months 12-24 = $6,000 per month x 5% retention =

$300 Gross margin = 50% LTV = $8,920

LTV > CAC$8,920 > $1,000More Lucrative!

Conclusion

1. Not a venture backed business.2. Small and medium size businesses are

not yet ready to adopt Chinese social media marketing strategies.

3. Our sales cycle includes educating the customers about the importance of Chinese social media marketing.

Is this a viable lifestyle business?

YesTwibo, LLC

One thousand1,000.00

Weibo Consulting StudentUniverse, Inc.

Final Canvas

Thank you!

4000

2500

Appendix

Video

http://youtu.be/31LvDYw6y3E

Burn Rate

1 back end engineer = $110,000 1 front end engineer = $110,000 2 direct salespeople = 2 x

$100,000 = $200,000 1 SG&A = $60,000 Year 1 burn rate = $480,000

Monthly burn = $40,000

Breakeven Analysis

Breakeven =

Breakeven = 960 paid months of basic service @

$2,000 per monthor

80 active paid customers per month

Week 1

Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

Week 10