1. Team Vogue presents
Instant, personalized and unbiased
beauty recommendations from
experts you can trust!
Website: http://www.beauty-insight.com Kathryn Kagan
Facebook: http://www.facebook.com/beautyinsight Mitesh Bohra
Carter Reue
Twitter: http://www.twitter.com/beauty_insight Shino Yamamoto
YouTube: http://www.youtube.com/thebeautyinsight

2. Beauty Insight – As of Today

3. Team Vogue Business Concept
Initial Business Concept Size of The Opportunity
• Provide personalized • Untapped business
recommendations of the best opportunity in beauty
beauty products from a range recommendation services
of different price points by and online product sales
industry experts • Target Addressable Market
• Revenue from product sales $12.6 billion
and online advertisement • Served Available Market $6
• A start-up with a similar billion
concept (ShoeDazzle)
recently received $40 million
in funding

4. Team
Kathryn Kagan Mitesh Bohra Carter Reue Shino Yamamoto
•10+ years •Co-founder and •Naval officer •Product
experience in President of •IT and marketing, b
Background advertising, sales Background InfoBeans Background Operations at Background usiness
& marketing in the •Board of Directors Stryker development
beauty industry at InnovizeTech Medical at Microsoft
•Business concept
•Sales
•Industry knowledge •Technology •Marketing
Expertise & Expertise & •Customer Expertise &
Team Role •Network with Expertise & •Management Team Role relations Team Role •Project
beauty experts Team Role •Entrepreneurship Management
•Operations
•Public relations experience

5. The Start - Business Model Canvas (1/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
COSMETIC & SUPPLY CAPTURING CUSTOMER CUSTOMIZED SERVICE INTERACTIVE SERVICE BEAUTY ENTHUSIASTS
COMPANIES PREFERENCES Customizing the perfect Combination of self-service Those who love products
combination of products for and personal customer and know that that this is
PUBLISHING HOUSES PERSONALIZED SERVICE clients. Tracking purchases service THE place to get all of their
Beauty/Fashion/Gossip Build behind-the-scenes staff to understand the evolution favorite items and the
magazines to provide one-on-one instant of their usage and be able ONLINE COMMUNITY hottest new trend
messaging with customers. to offer them precisely what Customer “experts” feedback
FASHION HOUSES and recommendations HIGH MAINTENANCE
they need and want.
Runway shows Key Resources Channels Clients who demand
Beauty trends CREDIBILITY personal attention and
INDUSTRY EXPERTS DIRECT customization for their
SOCIAL NETWORKING Access to excellent artists RANGE OF PRODUCTS Delivery of products and beauty routine
and well-trained staff with Offering the best products services
unsurpassed product across different price points BEAUTY ADVERSE
knowledge. to create the perfect CREATE AWARENESS Timid clients who are not
“product prescription” PR through key partners. sure what to purchase and
ONLINE PLATFORM Print, TV, online media and need some direction. They
industry makeup artists want to have the category
paired down
VALUE DRIVEN Revenue ADVERTISING (60%)
Cost Staff (most expensive)
Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS
COGS

6. Lessons Learned in Aug 2011
WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND
 Untapped business opportunity  Conducted market analysis for  Our value proposition resonates
in beauty recommendation the US market: with Women:
services and online product ‒ TAM $12.6 billion
sales ‒ SAM $6 billion ‒ Personalized, unbiased
beauty recommendations
 Target customers are:  Validated business for products within your
opportunities through:
‒ Beauty enthusiasts budget from beauty experts
‒ >530 online surveys you can trust
‒ High maintenance
‒ Personal interviews with
‒ Beauty adverse 91 women  Larger addressable market:
‒ 13 beauty experts
recruited ‒ Women in 18-44
‒ High frequency
 Developed the initial web site
design ‒ Already buying/researching
online

7. Business Model Canvas (2/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
INTERACTIVE SERVICE
COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased BEAUTY ENTHUSIASTS
Combination of self-service
COMPANIES PREFERENCES recommendations for Women 18-44, urban,
and personal customer
products priced for your service already buying and/or
PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty researching online, into
Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust cosmetics
ONLINE COMMUNITY
magazines to provide one-on-one instant
Customer “experts” feedback
messaging with customers CREDIBILITY HIGH MAINTENANCE
FASHION HOUSES and recommendations
FREQUENCY
Runway shows Key Resources RANGE OF PRODUCTS Channels Clients who demand
Beauty trends Offering the best products personal attention and
INDUSTRY EXPERTS across different price points DIRECT
SOCIAL NETWORKING customization for their
Access to excellent artists to create the perfect Delivery of products and
beauty routine.
and well-trained staff with “product prescription” services
unsurpassed product BEAUTY ADVERSE
knowledge. Chemist, CREATE AWARENESS
Timid clients who are not
Dermatologist, Ingredient‟s PR through key partners.
sure what to purchase and
specialist Print, TV, online media and
need some direction. They
industry makeup artists
want to have the category
ONLINE PLATFORM
paired down.
VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE
Cost Staff (most expensive) ADVERTISING (60%)
Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS
COGS

8. Lessons Learned in Sep 2011
WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND
 Primary target customers are:  Validated hypothesis through:  Another primary customer
‒ High frequency ‒ 40 customer interviews target identified:
‒ Beta customer onboarding ‒ High frequency
 Channel:
‒ >5 expert interviews (i.e. ‒ Less frequent, high
‒ Women want to access
Google, Bare Essentials, volume
services on mobile
Smashbox)  Channel:
‒ Women search for beauty
recommendations  Promotion to drive traffic: ‒ Women want to access
‒ Daily beauty tips on services at home/private
 Revenue stream:
Facebook page ‒ They don‟t search, trust
‒ Subscription & Pay-per-use
community feedback and
would work the best
word of mouth the most
 Revenue stream
‒ Other revenue model
might work better (prepay)

9. Business Model Canvas (3/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
INTERACTIVE SERVICE
COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased Women 18-44, urban,
Combination of self-service
COMPANIES PREFERENCES recommendations for already buying and/or
and personal customer
products priced for your service researching online, into
PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty cosmetics
Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust ONLINE COMMUNITY
magazines to provide one-on-one instant HIGH VOLUME & HIGH
Customer “experts” feedback
messaging with customers FREQUENCY
FASHION HOUSES and recommendations
Clients who demand
Runway shows Key Resources Channels personal attention and
Beauty trends customization for their
INDUSTRY EXPERTS DIRECT
SOCIAL NETWORKING beauty routine
Access to excellent artists and Web site (no mobile yet)
well-trained staff with
unsurpassed product CREATE AWARENESS
knowledge, as well as skincare User community, social
specialists such as media
dermatologist. PR through key partners.
CREATIVE & UX TEAM Print, TV, online media and
ONLINE PLATFORM industry makeup artists.
VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE
Cost Staff (most expensive) Offer complementary consultation for the first-time
Structure Overhead for website Streams users. Charge fee to access on-going services.
COGS

10. Lessons Learned in Oct 2011
WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND
 We are doing well! We could  Revisited our business model:  Scalable business model:
make this work. ‒ Explored simpler revenue ‒ Requires a
 Have multiple revenue models, like „Freemium‟ “Recommendation
streams. ‒ Explored facial recognition rules-engine” that
technologies (i.e. accumulates expertise
ModiFace or open source) from beauty experts
WHAT WE DIDN’T THINK
 Continued customer validation: ‒ Automated instant
 How would this scale?
‒ 20 more women recommendations
 Too many revenue models interviewed requires almost zero
would confuse the customer. marginal cost
‒ Receiving feedback and
beauty questions on FB
 Revenue model:
 Continued promotion on:
‒ Offer pre-paid
‒ Twitter, Slideshare in subscription and timed
addition to Facebook
auto-shipments
 Started building the website

11. Business Model Canvas (4/5) – MAJOR PIVOT
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban,
& ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or
TECHNOLOGY attributes cross-linked recommendations for friends researching online, into
with products in the products priced for your cosmetics buying in high
COSMETIC & SUPPLY industry needs from beauty volume or high
COMPANIES experts you can trust frequency who demand
personal attention and
Key Resources Channels customization for their
beauty routine
Beauty industry experts DIRECT
with unsurpassed product Web site
knowledge, as well as Mobile apps later
skincare specialists such
as dermatologist
CREATIVE & UX TEAM
RULES ENGINE
VALUE DRIVEN Revenue FREEMIUM
Cost Staff (most expensive)
Structure Overhead for website Streams
COGS

12. Lessons Learned in Nov 2011
WHAT WE THOUGHT WHAT WE DID WHAT WE FOUND
 A minimal viable products for  Developed additional features:  13-20 is not the right set yet
step 1-3 is required for ‒ Call to actions for step 1-3
product validation (i.e. get  Women “loved” the concept
‒ Beauty experts page
paying customers)
 Developed promotion content:  They were thrilled to hear
 More interactive content is ‒ Ran FB promotion for the about automated facial features
needed to drive more traffic to new archetype recognition and makeup effects
the site
‒ Video make-up tutorials  We need to make the profile
 Possible archetype in 13-20  Participated in the Columbia capture more dynamic and
age segment Venture Fair in NY specific to the target variations
‒ 3 VCs asked for follow-up
 We need seed funding to
 Conducted customer validation proceed!
event:
‒ 20 women at Stryker
(approx. 15 mins each)

13. Business Model Canvas (5/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban,
& ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or
TECHNOLOGY attributes cross-linked recommendations for friends researching online, into
with products in the products priced for your cosmetics buying in high
COSMETIC & SUPPLY industry needs from beauty volume or high
COMPANIES experts you can trust frequency who demand
personal attention and
Key Resources Women are more Channels customization for their
interested in the look beauty routine
$$$ NEED SEED MONEY and the “how to” than in DIRECT Women 13-
Beauty industry experts products Web site
20, urban, researching
with unsurpassed product Mobile apps later
online
knowledge, as well as
skincare specialists such
as dermatologist
CREATIVE & UX TEAM
RULES ENGINE
VALUE DRIVEN Revenue FREEMIUM
Cost Staff (most expensive)
Structure Overhead for website Streams
COGS

14. Lessons Learned – Final Thoughts
VIABILITY OF WHAT’S NEXT
WHAT WE LEARNED
BUSINESS CONCEPT BEYOND THE COURSE
 Getting out of the building is vital  Feedback from VC confirmed  We need $250K to develop a
to shaping business model that our business model is beauty recommendation engine
 Blogging works – 58 posts, 24 unique and test the viability of our
comments from mentors “Great concept, no one else in the business model with early
 Get expert advice whenever space is doing this and it really fills a adaptors
possible (i.e. teaching team, need. If you get an offer from
mentors, industry experts) Sephora or Ulta-take it! They could  We plan to follow up with VCs
easily try to replicate your idea and from the venture fair as well as
 Don‟t afraid to change the
would rather pay you than take the
business model if it makes others to seek funding
sense (i.e. Jim‟s advice for time to and money to recreate it
facial recognition technology) themselves.”
Drew Baird, Vice President
 You can build MVP at low cost; Star Avenue Capital
Have a working MVP is a key to
get customer validation started  User feedback has been
and to get VCs interested positive, at 464 FB Likes, we
 Teamwork, teamwork, teamwork believe there is consumer
interest in this and it is worth
pursuing as a business

15. The fun journey has just begun…

16. Thank You
• Steve for challenging us to do better all the way
through
Teaching • Jim for the come-to-Jesus moment!
• Oren for providing unique advice and getting it!
Team • Jon for the great advice from a VC perspective!
• Bhavik for keeping us on track
• Rashmi and Adi for making yourselves available
Mentors throughout the course and providing valuable, honest
feedback
• Jeremiah for introducing us to April and her team at
Classmates Google
• All for helping us with the survey and interviews

18. The Start - Business Model Canvas (1/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
COSMETIC & SUPPLY CAPTURING CUSTOMER CUSTOMIZED SERVICE INTERACTIVE SERVICE BEAUTY ENTHUSIASTS
COMPANIES PREFERENCES Customizing the perfect Combination of self-service Those who love products
combination of products for and personal customer and know that that this is
PUBLISHING HOUSES PERSONALIZED SERVICE clients. Tracking purchases service THE place to get all of their
Beauty/Fashion/Gossip Build behind-the-scenes staff to understand the evolution favorite items and the
magazines to provide one-on-one instant of their usage and be able ONLINE COMMUNITY hottest new trend
messaging with customers. to offer them precisely what Customer “experts” feedback
FASHION HOUSES and recommendations HIGH MAINTENANCE
they need and want.
Runway shows Key Resources Channels Clients who demand
Beauty trends CREDIBILITY personal attention and
INDUSTRY EXPERTS DIRECT customization for their
SOCIAL NETWORKING Access to excellent artists RANGE OF PRODUCTS Delivery of products and beauty routine
and well-trained staff with Offering the best products services
unsurpassed product across different price points BEAUTY ADVERSE
knowledge. to create the perfect CREATE AWARENESS Timid clients who are not
“product prescription” PR through key partners. sure what to purchase and
ONLINE PLATFORM Print, TV, online media and need some direction. They
industry makeup artists want to have the category
paired down
VALUE DRIVEN Revenue ADVERTISING (60%)
Cost Staff (most expensive)
Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS
COGS

19. Business Model Canvas (2/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
INTERACTIVE SERVICE
COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased BEAUTY ENTHUSIASTS
Combination of self-service
COMPANIES PREFERENCES recommendations for Women 18-44, urban,
and personal customer
products priced for your service already buying and/or
PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty researching online, into
Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust cosmetics
ONLINE COMMUNITY
magazines to provide one-on-one instant
Customer “experts” feedback
messaging with customers CREDIBILITY HIGH MAINTENANCE
FASHION HOUSES and recommendations
FREQUENCY
Runway shows Key Resources RANGE OF PRODUCTS Channels Clients who demand
Beauty trends Offering the best products personal attention and
INDUSTRY EXPERTS across different price points DIRECT
SOCIAL NETWORKING customization for their
Access to excellent artists to create the perfect Delivery of products and
beauty routine.
and well-trained staff with “product prescription” services
unsurpassed product BEAUTY ADVERSE
knowledge. Chemist, CREATE AWARENESS
Timid clients who are not
Dermatologist, Ingredient‟s PR through key partners.
sure what to purchase and
specialist Print, TV, online media and
need some direction. They
industry makeup artists
want to have the category
ONLINE PLATFORM
paired down.
VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE
Cost Staff (most expensive) ADVERTISING (60%)
Structure Overhead for website Streams MARGINS ON SALE OF PRODUCTS
COGS

20. Business Model Canvas (3/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
INTERACTIVE SERVICE
COSMETIC & SUPPLY CAPTURING CUSTOMER Personalized, unbiased Women 18-44, urban,
Combination of self-service
COMPANIES PREFERENCES recommendations for already buying and/or
and personal customer
products priced for your service researching online, into
PUBLISHING HOUSES PERSONALIZED SERVICE needs from beauty cosmetics
Beauty/Fashion/Gossip Build behind-the-scenes staff experts you can trust ONLINE COMMUNITY
magazines to provide one-on-one instant HIGH VOLUME & HIGH
Customer “experts” feedback
messaging with customers FREQUENCY
FASHION HOUSES and recommendations
Clients who demand
Runway shows Key Resources Channels personal attention and
Beauty trends customization for their
INDUSTRY EXPERTS DIRECT
SOCIAL NETWORKING beauty routine
Access to excellent artists and Web site (no mobile yet)
well-trained staff with
unsurpassed product CREATE AWARENESS
knowledge, as well as skincare User community, social
specialists such as media
dermatologist. PR through key partners.
CREATIVE & UX TEAM Print, TV, online media and
ONLINE PLATFORM industry makeup artists.
VALUE DRIVEN Revenue SUBSCRIPTION MODEL OR PAY-PER-USE
Cost Staff (most expensive) Offer complementary consultation for the first-time
Structure Overhead for website Streams users. Charge fee to access on-going services.
COGS

21. Business Model Canvas (4/5) – MAJOR PIVOT
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban,
& ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or
TECHNOLOGY attributes cross-linked recommendations for friends researching online, into
with products in the products priced for your cosmetics buying in high
COSMETIC & SUPPLY industry needs from beauty volume or high
COMPANIES experts you can trust frequency who demand
personal attention and
Key Resources Channels customization for their
beauty routine
Beauty industry experts DIRECT
with unsurpassed product Web site
knowledge, as well as Mobile apps later
skincare specialists such
as dermatologist
CREATIVE & UX TEAM
RULES ENGINE
VALUE DRIVEN Revenue FREEMIUM
Cost Staff (most expensive)
Structure Overhead for website Streams
COGS

22. Business Model Canvas (5/5)
Key Partners Key Activities Value Proposition Customer Customer
Relationships Segments
FACIAL RECOGNITION Build a massive beauty INSTANT, personalized, SOCIAL MEDIA Women 18-44, urban,
& ONLINE MAKEUP ontology, taxonomy and unbiased Friends and friends of already buying and/or
TECHNOLOGY attributes cross-linked recommendations for friends researching online, into
with products in the products priced for your cosmetics buying in high
COSMETIC & SUPPLY industry needs from beauty volume or high
COMPANIES experts you can trust frequency who demand
personal attention and
Key Resources Women are more Channels customization for their
interested in the look beauty routine
$$$ NEED SEED MONEY and the “how to” than in DIRECT Women 13-20, urban,
Beauty industry experts products Web site
researching online
with unsurpassed product Mobile apps later
knowledge, as well as
skincare specialists such
as dermatologist
CREATIVE & UX TEAM
RULES ENGINE
VALUE DRIVEN Revenue FREEMIUM
Cost Staff (most expensive)
Structure Overhead for website Streams
COGS