These slides analyze the value propositions for the members (more than 140) of Wall Street Journal's Billion Dollar Startup Club. Value propositions are important, because they are a major reason for the success of a product or a service. Many of these value propositions involved multiple dimensions of performance and large changes in user behavior. Young entrepreneurs should look for these types of value propositions.

1. A/Prof Jeffrey Funk
Division of Engineering and Technology Management
National University of Singapore
For information on value propositions for specific startups and established firms, see
http://www.slideshare.net/Funk97/presentations. For information on technology change,
see http://www.slideshare.net/Funk98/presentations.

2.  Value from products and
services
◦ Benefits
◦ Features
◦ Good experiences
 And they want value that
matches their
◦ Wants
◦ Needs
 And they want more value
than substitutes provide
Give me
value!
Fish don’t need a bicycle

3. Products Must Provide More Value than do Substitutes

4.  Simple examples
◦ E-commerce is based on different concept than brick
and mortar stores
◦ Smart phones are based different concept (browser,
apps, mail) than are previous phones (voice and
messages)
 Other examples
◦ Drones, wearable health, augmented reality, smart
devices
◦ Cloud computing, Big Data, Internet of Things
◦ Social networking, online games, YouTube
◦ Apps to book taxis, order groceries, reserve rooms,
make payments, and do messaging

5.  Hard to say
 It’s kind of like good art
◦ I know it when I see it
 Or kind of like beauty
◦ Its all in the beholder
 Can we do better than this?
◦ Can we better explain a good value proposition?
◦ So that we can look for and develop good value
propositions?

6. Time
Performance
Is it really
so simple?
Or is a new value
proposition more
complicated?
Slowdown
Acceleration
The Conventional Wisdom

7.  How different are value propositions of old
and new technologies?
◦ Can dimensions of performance be defined?
◦ If so, was there a change in one, two, three, or
more dimensions?
 What about customers, who are they?
◦ From the customer’s perspective, did the new
technology change or require a large change in
their behavior?

8.  Investigate value propositions of new
technologies currently being implemented, ones
that are having a large impact on our world
 Examples of these value propositions can be
found in members of Billion Dollar Startup Club
 For each member, consider new and old
technologies:
◦ What is change in technology?
◦ Who are the customers?
◦ What is change in value proposition?
 Are the VPs different in one or multiple dimensions?
 Do the VPs change or require changes in user behavior?

9.  Global Startups (sometimes called Unicorns)
◦ valuations over $1 Billion
◦ still private (no IPO yet)
◦ have raised money in past four years
◦ at least one venture capital firm as investor
 122 firms as of 25 September 2015
◦ With 21 other startups that recently exited (IPOs,
acquisitions or decreasing value), total of 143 firms
 High valuations mean investors believe these firms
offer something valuable, unique, hard to copy
 Some of them will
◦ lead to “creative destruction”
◦ have $100 Billion plus market capitalizations in the future,
like the strongest hi-tech startups: Apple, Google, Amazon,
and Microsoft

10. Company Latest Valuation Total Equity Funding Last Valuation
Uber $51.0 billion $7.4 billion August 2015
Xiaomi $46.0 billion $1.4 billion December 2014
Airbnb $25.5 billion $2.3 billion June 2015
Palantir $20.0 billion $1.6 billion October 2015
Snapchat $16.0 billion $1.2 billion May 2015
Didi Kuaidi $16.0 billion $4.0 billion September 2015
Flipkart $15.0 billion $3.0 billion April 2015
SpaceX $12.0 billion $1.1 billion January 2015
Pinterest $11.0 billion $1.3 billion February 2015
Dropbox $10.0 billion $607 million January 2014
WeWork $10.0 billion $969 million June 2015
Lufax $9.6 billion $488 million March 2015
Theranos $9.0 billion $400 million June 2014
Spotify $8.5 billion $1.0 billion April 2015
DJI $8.0 billion $105 million May 2015
Zhong An Online $8.0 billion $934 million June 2015
Meituan $7.0 billion $1.1 billion January 2015
Square $6.0 billion $495 million August 2014
Stripe $5.0 billion $290 million July 2015
ANI Technologies (Ola Cabs) $5.0 billion $903 million September 2015
Snapdeal $5.0 billion $911 million August 2015
Stemcentrx $5.0 billion $250 million September 2015
Zenefits $4.5 billion $596 million May 2015
Cloudera $4.1 billion $670 million March 2014
Dianping $4.0 billion $1.4 billion March 2015
The Top 25 Firms as of 25 September, 2015

11. Category U.S. Europe China India Other Total
Software 38 1 2 41
E-Commerce 12 3 9 2 2 28
Consumer
Internet
18 6 7 2 4 37
Financial 7 4 3 1 15
Hardware 7 2 1 10
Bio-tech, bio-
electronics
7 1 8
Energy 2 2
Space 1 1
Retail 1 1
Total 92 14 22 6 9 143
Number of Startups, by Category and Country
Most are Internet Related (121)
Note: the descriptions by the Wall Street Journal and other sources were used to redefine some of
the startups and to combine smaller categories into larger categories

12. 0
5
10
15
20
25
30
before
2001
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of Startups Founded by Year and Category
software
consumer internet
e-commerce
financial
hardware

13.  Starting with E-commerce
◦ Followed by financial, consumer Internet, software,
and bio-tech/electronic startups
 What is change in technology?
 What is change in value propositions?
◦ Are the VPs different in one or multiple dimensions?
◦ Do the VPs change or require changes in user
behavior?
 What about customers, are they different?

14. Common
Characteristics
for all of them
Customers:
Mostly young
and female
Value
Proposition:
Lower price,
more selection,
convenience
Dimensions:
Price,
convenience,
selection,
number of
returns
Change in User
Behavior: online
vs. visit to
physical store
Sub-
Category
Access Num
ber
Names of Firms Change in
technology
Clothing
and
Access-
ories
Desktop 5 Zalando, Global Fashion
Group, Lazada, Gilt
Groupe, JustFab
Internet based
Mobile 4 Vancl, Mogujie, LaShou,
Fanatics
Internet
based, mobile
Broad
Variety of
Products
Mobile 7 Koudai Shopping,
JD.com, Quikr, Flipkart,
Snapdeal, Coupang,
Contextlogic
Internet
based, mobile
Furniture,
Interior
Design
Desktop 4 Home24, FarFetch,
Wayfair, Honest Co,
Internet based
Mobile 1 Fab Internet
based, mobile
Other
Products
(focused)
Desktop 3 Warby Parker,
Pluralsight, WeWork
Internet based
Other
Products
(focused)
Mobile 2 Beibei, Blue Apron Internet
based, mobile
Discount
coupons
Mobile 2 Meituan, Coupons.doc Internet
based, mobile
Changes in Technology, Customers, Value Propositions, and
Dimensions for E-commerce Startups

15.  Customers
◦ Tech-savvy users
◦ Young fashionable iPhone users
 Value Propositions involve at least two
performance (non-price) dimensions, maybe
three
◦ Price
◦ Convenience
◦ Selection
◦ Number of returns
 Large change in user behavior
◦ Not visiting physical stores
◦ Searching and purchasing products online

16. Sub-
Category
Numb
er
Names of Firms Change in
technology
Customers
Peer-to
peer
lending
5 Lufax, Prosper
Marketplace, Social
Finance, Funding
Circle, Lending Club
Internet and
big data
Businesses and
individuals who can’t
get loans from banks
Mobile
payment
4 Stripe, One97
Communications,
Adven, Square
Mobile
phone
Consumers at bricks
and mortar stores
Other 6 Powa
Klarna
Zhong an Online
Hanhua Financial
Credit Karma
Sunrun
Internet, Big
Data
Websites
Consumers, Websites
Consumers
Businesses
Consumers
Consumers
Changes in Technology and Customers for
Financial Startups

17. Sub-
Category
Names of Firms Changes in Value
Proposition
Dimen-
sions
Change in
User Behavior
Peer-to peer
lending
Lufax, Prosper
Marketplace, Social
Finance, Funding
Circle, Lending Club
Lower rates than loan
sharks
More convenient doing
online than visiting
banks
Rates, time
and effort to
obtain loan,
transaction
costs
Obtain loans
online instead
of banks
Mobile
payment
Stripe, One97
Communications,
Adven, Square
Faster, more convenient Transaction
speed and
cost (rate)
Pay with mobile
phones instead
of cash or
cards
E-commerce
payment
Powa and Klarna Lower fees than credit
card or Paypal
Simpler method for
shoppers
Fees, Time
and effort to
receive
payment,
Small change
from credit
card or Paypal
Other Powa
Klarna
Zhong an Online,
Hanhua Financial,
Credit Karma,
Lower fees for insurance
online, lower rates for
credit guarantees to
businesses, credit scores
for individuals, leasing
solar cells
Rates, Time
and effort to
obtain
insurance,
etc.
Do online
instead of
through bricks
and mortar
Changes in Value Propositions, Dimensions, and User Behavior for
Financial Startups

18.  Customers
◦ Businesses and individuals who can’t get loan from bank
◦ Tech-savvy users of mobile payment services
 Value Propositions involve one or two
performance (non-price) dimensions
◦ Price (rates or fees)
◦ Time and effort of user
 Large change in user behavior
◦ Not visiting banks for loans or credit guarantees, instead
doing online
◦ Paying with mobile phones instead of cash or card
◦ Consumers obtain credit scores (not done before)
◦ New web sites can exist because new forms of E-
commerce payments exist

19. Sub-
Category
Numb
er
Names of Startups Change in
technology
Customers
Ride Sharing 7 Uber, Didi Dache, Kuaidi Dache,
Ola Cabs, Lyft, Grabtaxi, BlaBla
Car
App based Final users
and drivers
Food
Delivery
5 Delivery Hero, Zomato, Instacart,
Hello Fresh, Ele.me
App based Final users,
deliverers
Audio and
Video
6 Spotify, Shazam, Pinterest
(Internet), Snapchat, KIK
Interactive, Tango
App-or
Internet
based
Consumers
Games 5 Kabam, Garena Online, Fan Duel,
Draft Kings, Legendary
Entertainment
Digital
tech
Consumers
Social
Networking
5 Eventbrite (App), NextDoor (App),
Lamabang, Vox Media, Houzz
Internet
based
Special
customers
Hotels 2 Airbnb, Tujia App-
based
Users,
owners
Health Care 2 Oscar Healthcare, ZocDoc Internet
based
Final users
and doctors
Other 4 Rocket Internet, Yello Mobile,
APUS, BuzzFeed, Dianping
Internet Various
Changes in Technology and Customers for Consumer Internet Startups

20. Category Names of Startups Changes in Value Propositions
Ride
Sharing
Uber, Didi Dache, Kuaidi Dache,
Ola Cabs, Lyft, Grabtaxi, BlaBla
Car
Easier to use app than call
Enables new drivers
Food
Delivery
Delivery Hero, Zomato, Instacart,
Hello Fresh, Ele.me
Convenience of delivery and of app over
desktop. Part time work for drivers
Audio and
Video
Spotify, Shazam, Pinterest
(Internet), Snapchat, KIK
Interactive, Tango (changes in VP
refer to specific startups)
Acquire music cheaply, legally; identify
music; personal media platform;
disappearing pics; share music etc. on
messaging, video and voice calling
Games Kabam, Garena Online, Fan Duel,
Draft Kings, Legendary
Entertainment
Online game platform for Kabam and
Garena, new types of games from FD and
DK. LE provides digital movies
Social
Networking
Eventbrite (App), NextDoor (App),
Lamabang, Vox Media, Houzz
Special networks for interior design,
neighborhoods, event planning, mothers,
sports blogs
Hotels Airbnb, Tujia Enables non-hotels to become hotels. For
users, new types of hotels
Health Care Oscar Healthcare, ZocDoc Platforms that link users to doctors and
health care
Other Rocket Internet, Yello Mobile,
APUS, BuzzFeed, Dianping (VP
changes refer to specifc startups)
Builds online startups, shopping platform,
android customizer, viral news, restaurant
search
Changes in Value Proposition for Consumer Internet Startups

21. Category Names of Startups Dimensions (in addition to price)
Ride
Sharing
Uber, Didi Dache, Kuaidi Dache, Ola
Cabs, Lyft, Grabtaxi, BlaBla Car
Transport time for final users
Greater utilization for drivers
Food
Delivery
Delivery Hero, Zomato, Instacart,
Hello Fresh, Ele.me
Accuracy of delivery time and
transaction time/costs for final users
Greater utilization for drivers
Audio and
Video
Spotify, Shazam, Pinterest (Internet),
Snapchat, KIK Interactive, Tango
(Dimensions refer to specific
startups)
Number, quality of songs; accuracy and
speed of identifying music; number of
pins; number of options and privacy
levels; video quality and security
Games Kabam, Garena Online, Fan Duel,
Draft Kings, Legendary
Entertainment
Number and complexity of games,
players per game; resolution and
realism of movie
Social
Networking
Eventbrite (App), NextDoor (App),
Lamabang, Vox Media, Houzz
Size of network, speed of recalculating
connections, transaction costs
Hotels Airbnb, Tujia Number of hotels, price, transaction
cost
Health Care Oscar Healthcare, ZocDoc Cost of insurance, number of doctors,
ease of making doctor appointment,
cost of online consultation
Other Rocket Internet, Yello Mobile, APUS,
BuzzFeed, Dianping
Various
Changes in Dimensions for Consumer Internet Startups

22. Category Names of Startups Changes in User Behavior
Ride
Sharing
Uber, Didi Dache, Kuaidi Dache, Ola
Cabs, Lyft, Grabtaxi, BlaBla Car
Large for drivers, not for
riders
Food
Delivery
Delivery Hero, Zomato, Instacart,
Hello Fresh, Ele.me
Food comes to user, not user
goes to food
Audio and
Video
Spotify, Shazam, Pinterest (Internet),
Snapchat, KIK Interactive, Tango
Few changes
Games Kabam, Garena Online, Fan Duel,
Draft Kings, Legendary
Entertainment
Changes to multi-player
games and new ones
Social
Networking
Eventbrite (App), NextDoor (App),
Lamabang, Vox Media, Houzz
New way of socializing and
communicating
Hotels Airbnb, Tujia Staying in new types of
hotels, renting out your house
Health Care Oscar Healthcare, ZocDoc Individual healthcare, make
appointments online, online
consultations
Other Rocket Internet, Yello Mobile, APUS,
BuzzFeed, Dianping
Various
Changes in User Behavior for Consumer Internet Startups

23.  Customers
◦ Tech-savvy iPhone users
◦ Young and fashionable
 For value propositions, much greater variety than
in previous categories
◦ Unique value propositions for each sub-category and
often for each startup
 For many sub-categories, one or two performance
(non-price) dimensions
◦ Time for ride sharing, food delivery, doctor appointments
◦ Complexity of games, number of simultaneous players
◦ Higher resolution and realism of digital movies
◦ Variety of hotels and music
 For other sub-categories, more dimensions and
thus more complex
◦ Social networking
◦ Personal media and messaging platforms

24.  Large changes in user behavior for many
startups
 Ride sharing
◦ Large changes for drivers but not users
 Large changes for
◦ food delivery – receive food instead of going to food
◦ hotels – staying in private homes, not just hotels
◦ health care – access to more doctors and online
consultations
◦ games – play online with others
◦ social networking – new form of interaction
 Smaller changes for
◦ audio and video
◦ digital movies

25. Sub-
Category
Numb
er
Names of Startups Change in
technology
Customers
Enterprise
Software
(S/W)
14 Shopify, Apttus, Coupa, Qualtrics,
Deem, Zenefits, Automattic,
CloudFlare, Slack, InsideSales.com,
Sprinklr, AppDynamics, Medalia, Domo
Cloud, Big
Data for
some
Companies
Security S/W 5 Tanium, Good Technology, Lookout,
Okta, Zscaler
Cloud Web sites
Database,
data storage
6 Nutanix, Simplivity, PureStorage,
MarkLogic, MongoDB, Actifio
Cloud, Big
Data
Companies
Big Data S/W
and Services
4 Palantir, Mu Sigma, Cloudera,
Hortonworks
Cloud, Big
Data
Companies
Online Ads 3 InMobi, AppNexus, IronSource Cloud Websites
Cloud
storage
2 Dropbox, Box Cloud Companies,
consumers
Software Dev
Tools
2 Twilio, Github Cloud Companies
Other Tools 5 DocuSign, Evernote, New Relic,
MuleSoft, Jasper
Cloud Companies,
consumers
Changes in Technology and Customers for Software Startups

26. Changes in Value Proposition, Dimensions, and User
Behavior for Software Startups
Sub-
Category
Changes in Value
Proposition
Dimensions Changes in
User Behavior
Enterprise
Software
(S/W)
Lower cost, particularly
lower initial cost
Initial and recurring costs,
security, speed, updating
new features
Few
Security
Software
Better security of devices,
apps, web sites, etc.
Initial and recurring costs,
scan speed and accuracy
Few
Database,
data storage
Virtualization, unstructured
data, mgmt. of copy data
Initial, recurring costs; data
variety, storage efficiency
Broader variety
of data is
utilized, e.g.,
unstructured
Big Data S/W
and Services
New data analysis and
services
Initial and recurring costs,
speed, data variety
Online Ad
Software
Provide relevant ads on
web sites and phones; Iron
Source facilitates adware
Initial and recurring costs,
advertising optimization
Few
Cloud storage Access from any device,
sharing
Initial and recurring costs,
speed
More sharing for
among
consumers
Software Dev
Tools
Collaborative s/w
development
Initial and recurring costs,
speed
Few
Other Tools Elec signature, note taking,
monitor web applications,
integration, IoT
Initial and recurring costs,
legality, ease of use, speed
Many changes
for some

27.  Customers
◦ Mostly companies, both bricks and mortar, and pure
websites
◦ Some consumers (e.g., cloud storage and tools)
 For value propositions, much less variety and
much fewer number of dimensions than in
previous categories
◦ Initial and recurring costs are key dimensions for
enterprise software (low or no initial costs)
◦ Speed, feature updating, storing and processing
unstructured data are also important for some
software

28.  Change in User Behavior; much fewer
changes than for other categories
 Exceptions
◦ Big Data software and services enable users to
become more analytical
◦ New form of database software also facilitate
greater analytics
◦ Cloud storage promotes sharing among
consumers
◦ Electronic signatures and note taking may cause
changes in consumer behavior

29. Name of
Startup
Change in
technology
Customers Changes in Value Proposition
Xiaomi Smart phone consumers Access Internet and mail through
phone browser and apps
DJI Computer
controlled aircraft
Movie producers,
police, farmers
Cheaper than helicopters or small
planes for filming, recording,
monitoring
Jawbone Electronic controls
and sensors
Health conscious
consumers
Monitor and analyze fitness and health
metrics
Magic Leap Augmented Reality Consumers Superimposes image over reality.
Provide better games, entertainment
Infinidat Parallel architecture
magnetic storage
Web sites Higher storage than does previous
architectures
Razer High resolution
optical sensors
Hard-core
gamers
Faster and more precise movements
for better gaming performance
Beats
Electronics
Noise-cancelling,
audio electronics
Music lovers Superior audio quality headphones
GoPro Various electronics Extreme sports Durable cameras for extreme sports
Nest Labs Smart thermostat Homeowners,
utility companies
Better temperature control by learning
user behavior, detecting empty rooms
Mobileye Collision avoidance
with motion detec-
tion algorithms
Car owners Senses cars and lane boundaries for
safer and perhaps autonomous driving
for lower cost than multiple lasers
Change in Technology, Customers, and Value Proposition
for Hardware Startups

30. Name of
Startups
Dimensions (in addition to price) Change in User
Behavior
Xiaomi Processor speed, memory capacity, display
and camera resolution, battery time,
connectivity
Use phone for
browsing, not just
voice, messaging
DJI Weight, speed, distance, carrying load,
connectivity
Little change
Jawbone Weight, variety of fitness metrics,
connectivity
Monitor health care
Magic Leap Realism, lag time, resolution, New entertainment
Infinidat Capacity, capacity utilization, uptime, energy
usage, access time
Small
Razer Precision, smoothness, speed, durability Small
Beats
Electronics
Frequency response, driver diameter, input
power, sensitivity, battery time
Small
GoPro Resolution, speed, shock and water (depth)
resistance, storage capacity, angle of view,
battery time, connectivity
Record extreme
sporting activities
Nest Labs Ease of reading and adjusting, time to temp,
connectivity, motion detection accuracy
Small
Mobileye Speed and range of detection, dark limit,
dynamic range
Small
Dimensions and Change in User Behavior for Hardware Startups

31.  Customers
◦ Mostly consumers: Tech-savvy iPhone users for
Xiaomi, Jawbone, Magic Leap, Razer, Beats
Electronics, GoPro
◦ Some enterprises: DJI (movie production), Infinidat
(websites), Nest (utility companies), Mobileye
(automobile companies)
 For value propositions, much greater variety
and much larger number of dimensions than
in previous categories
◦ All of them have at least 3 dimensions of
performance, most at least 5

32.  Changes in user behavior; large changes for
many
◦ Xiaomi – browsing via search engine and apps
◦ DJI – drones for movie production, agriculture, etc.
◦ Jawbone – new form of health care
◦ Magic Leap – new form of entertainment
◦ GoPro – recording extreme sports
◦ Nest – large changes for utility companies but little
for consumers
 Small changes for
◦ Infinidat – magnetic storage
◦ Razer – gaming mouse
◦ Beats Electronics – headphone
◦ Mobileye – vision assistance

33. Name of
Startup
Change in Tech
or Science
Custom
ers
Changes in Value Proposition
Moderna
Thera-
peutics
Messenger RNA
Therapeutics
Drug
suppliers
Faster cheaper way to produce proteins in
cells, in order to reduce drug development
costs for cancer treatments and vaccines
Stem-
centrix
Stem cells and their
molecular markers
Drug
suppliers
Target stem cells to provide faster, cheaper
path towards developing cancer drugs
Adaptive
BioTech-
nologies
Immuno-oncology
therapeutics, DNA
sequencing
Drug
suppliers
and labs
Immuno-sequencing platform provides faster
and cheaper path towards developing drugs
that treat infectious diseases and cancers
CureVaC Messenger RNA
Therapeutics
Drug
suppliers
Faster cheaper way to produce proteins in
cells, in order to reduce drug development
costs for cancer treatments and vaccines
Theranos Micro-fluidics Hospitals,
patients
Faster, cheaper, and more accurate way of
doing diagnostic tests
Intarcia Implanted diabetes
pump
Patients Faster, cheaper, less intrusive, more effective
way to deliver drugs to diabetes patients
Proteus
Dig Heal.
Smart pill Hospitals,
patients
Faster, cheaper, less intrusive, and more
effective way to deliver drugs to patients
23andMe DNA services Patients Faster, cheaper way to perform DNA tests for
ancestry info and susceptibility to diseases
Changes in Technology/Science, Customers and Value Propositions
for Bio-Tech and Bio-Electronic Startups

34. Name of
Startup
Dimensions Changes in User
Behavior
Moderna
Therapeutics
Cost and speed of growing proteins and of developing
effective drugs from these proteins
Enables new
drugs, i.e., open
innovationStem-centrix Cost and speed of developing effective drugs for
treating cancers
Adaptive Bio
Technologies
Cost and speed of developing effective drugs that
stimulate effective immune response against cancer
CureVaC Cost and speed of growing proteins and of developing
effective drugs from these proteins
Theranos Speed, cost, accuracy of diagnostic tests Visit drug store,
not doctor
Intarcia Size and cost of pump. Surgical cost of implanting.
Control and effectiveness of drug. Effect on diabetes.
Comfort of patient
Replace injections
with implant
Proteus Digital
Health
Consistency of drug taking by patients and thus health
care costs. Effectiveness, cost, and pain of drugs
Small
23andMe Speed, cost, and accuracy of DNA tests. Accuracy of
implications for ancestry and susceptibility to diseases
Large
Changes in Dimensions and User Behavior for Bio-Tech
and Bio-Electronic Startups

35.  Customers
◦ Drug companies are customers of bio-tech value
propositions (example of open innovation)
◦ Hospitals and patients are customers for products
and services (bio-electronics and DNA tests)
 For value propositions, much more variety and
much larger number of dimensions than in
previous categories
◦ Dimensions for bio-tech research involve potential
for research and thus path-oriented dimensions
◦ Many dimensions for bio-electronic and DNA tests

36.  Change in User Behavior
 For bio-tech
◦ Likely big changes for drug companies as they
pursue different paths for research, products, and
services
 For products and services (bio-electronics and
DNA tests)
◦ Smaller changes than for bio-tech, but still large
◦ Theranos – visit drug store, not doctor or hospital
◦ DNA tests – influence patient and doctor decisions
◦ Implant – changes behavior of diabetic

37.  Customers were different for many categories
◦ Companies were primary customers for software, bio-
tech, and some financial
◦ Young tech-savvy people were primary customers for
many consumer products (consumer Internet, e-
commerce) and some financial
 A single performance dimension was relevant
for very few startups. Most depended on
multiple dimensions
◦ Many depended on three or more dimensions
◦ Furthermore, many of the value propositions were
hard to define in terms of dimensions

38.  Representing change
with curves (e.g., S-
curves) is highly
misleading
 Most value propositions
involve multiple
dimensions
 Firms and entrepreneurs
need to go beyond
dimensions and think
holistically about value
propositions
Too simple!!!!

39.  Changes in user behavior were caused by many
of the value propositions
◦ New ways to purchase clothing, furniture, and other
items (i.e., e-commerce)
◦ New ways to obtain groceries and meals
◦ New types of games and other entertainment
◦ New ways to obtain health care
◦ New ways to obtain loans
◦ New types of jobs were created by some value
propositions

40. More than
Two
Dimensions
One or Two
Dimensions
Small Change Large Change
in User Behavior in User Behavior
Number of Dimensions and Changes in
User Behavior For Billion Dollar Startups
Some consumer
Internet
startups (8)
Most hardware
startups (8)
All E-Commerce startups (26)
Most consumer Internet
startups (29)
A few hardware startups (2)
All bio-tech/bio-electronic
startups (8)
Most software
startups (32)
Online financial services
(15)
Some software startups
(9)

41.  Firms and entrepreneurs need to think about
value propositions and technologies that
change the way users do things
 The value propositions and technologies
should change the way
◦ consumers live their lives, including the way they
eat, commute, and enjoy their lives
◦ companies do their processes and make money