Business Models
Angela Lee
Founder, 37 Angels
Professor, Columbia Business School
What is a business model?
Who you
sell to
How you
make
money
B2C
B2B
B2B2C
What is Refinery 29’s business model?
SAAS (Software as a Service)
Peer to peer
Printer / toner
“And then we sell the data”
Franchise
Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition
Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition
Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition
Factors when choosing a business model
 Predictable revenue
 Scalability
 Network effects
 Customer acquisition
How do I
choose?
Customer
Experiments
TheLeanStartup.com
Deployment
Development
Letter of Intent
This year, we will conduct an
unpaid pilot with startup ABC.
When features x, y, and z are built,
we will pay $x per employee, or $y
a month to use their tool / platform.
Customer interviews
 Tell me your best…
 Tell me your worst…
 Why haven’t you fixed this?
 What do you use now?
 Who else should I talk to?
Customer interviews
 Fewer closed questions
 Ask “would you?” questions
 Ask “what do you think of…?”
1) Customer segments
2) Value propositions
3) Revenue streams
4) Channels
5) Customer relationships
6) Key partners
7) Key activities
8) Key resources
9) Cost structure
1
2
3
4
5
37angels.com/resources
Questions?

Business Models - Angela Lee.pptx