Otis College of Art and Design Economics Company Analysis Recommendation Paper

Description

Please reevaluate the first assignment for this class and rescore based on what you have learned from this class. Its like a rewrite of the previous assignment. I will attach my previous scoring sheet under. You need to check these company to see if you need to make some changes. Please write about any changes you would make to your ranking and why. It should be a paper not separate sentences of answers to each question.RequirementImagine you are a partner in a venture capital firm. You have received these ten business plans to review. You will make your recommendation to the rest of the investment partnership to invest in only one of the proposals.Which opportunity will you recommend for investment? AND WHY?For each of the other nine proposals, why did you not select them for funding?Please complete and present the new scoring sheet as part of your selection process.

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The feature is easy to be imitated. The selling price is a bit high because there is no other feature
besides share and display photos. Young people still like to save photos on their phones.
Too many competitors.
The source of revenue is only comes through premium subscriptions.
The reason I recommend this company is its high feasibility. It has a clearer business model and
reasonable pricing. The potential market is huge, and if there are unique analysis functions, it will be
of great help to SMEs. However, the disadvantage is that the investment payback period is long.
The placement of the house is restricted. There are certain potential safety hazards.
One of the business models is to charge $1/day for promoting listings to appear higher in the queue,
which is only suitable for the seller that specializes in selling used goods and is not friendly for
personal sellers.
It has a big potential market, but lacks of business model. Burns a lot of money for
development.
The business model is not clear, the capital requirements are high, the team lacks experience.
The company may be easy to attract customers in the early stage cause the target customers are
freelancers. However, it is not suitable for long-term development.
The target is the rural market of an emerging economy and even not being able to use electricity,
how users pay by mobile technology?
Watson
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2015 HBS New Venture Competition: Watson Executive Summary
Mission: Our mission is to simplify life for the U.S.’s 53 million freelancers. The ranks of the
U.S.’s 1099 earners have grown as technology enables work anywhere, digital platforms source
jobs for independent workers and corporations slash fixed labor costs. “1099ers” enjoy autonomy
but sacrifice the security of a regular paycheck and benefits. They annually lose thousands of
dollars and hundreds earning hours managing their work, finding insurance and savings plans,
tracking expenses and estimating taxes. Based in New York, Watson integrates these tasks in a
single platform, providing peace of mind and saving time and money.
Management Team
• Mary-Catherine Lader: Co-founder, Co-CEO. Founding team at Vivint Solar, now ~$1bn
market cap. Five years’ journalism experience with CNBC, CNN, Reuters, Forbes and as
editor-in-chief of the Brown Daily Herald. Investor for Goldman Sachs’ Special
Situations Group, Comcast Ventures. JD/MBA ’15, Harvard. A.B., Brown.
• Dipish Rai: Co-founder, Co-CEO. Founder, Chefstro, a digital marketplace for 1099
chefs. Private equity investor at Providence Equity, consultant at Booz & Co. B.Tech,
Electrical Engineering, Indian Institute of Technology. M.S., Electrical Engineering,
Columbia. MBA ‘14, Harvard Business School.
• Ajey Gore: CTO. 16 years of development experience. CTO, Softbank/Bharti JV, Hoppr,
built to 70 million users and 1 million daily check-ins.
• Tommy Heffernan: Engineer. GetAround, ESPN. B.S., Harvard.
Advisors
• Hrishi Dixit: Founding CTO, LearnVest.
• Jon Cowley: Founding Head of Product, LearnVest.
• Kush Saxena: Ex-Head of U.S. Tax Business, H&R Block.
Business Product
Customer Value Proposition: Watson provides a single platform for 1099ers to manage health
insurance, IRA, expenses, taxes and more. Our initial product gives 1099ers back their time and
money by simplifying the most painful 1099 feature: taxes.
Business Model: We have two revenue streams: 1) subscriptions, priced $5 – $10/mo for a tax
product and up to $49/mo for a bundled service, based on beta user interviews and paid marketing
trials, and 2) health insurance commissions and financial product lead-generation revenue.
Stage of Development: We built two products — tax and health insurance — and will build the
integrated platform next. We launched Product 1.0 to test health insurance demand during the last
open enrollment period (Nov. 15 2014 – Feb. 15 2015). In 10 days, 1000+ people signed up,
representing a 30% conversion rate from site visitors to sign ups. (See “Traction.”) We proved
our hypothesis: solopreneurs need and want help buying the right health insurance plan. Our team
member obtained licenses to sell health insurance in New York and California, we sold policies,
and we engaged in conversations with payers to validate their interest (Wellpoint, Horizon Blue
Cross Blue Shield of New Jersey). To build sustainable competitive advantage we realized we
need a service that engages customers on a weekly/monthly basis. Customers identified expense /
deduction tracking as the most painful element of 1099 status. We launched Product 2.0 for
tax/expense management this spring to achieve this goal, and selected a closed group of beta
users. It is a mobile-friendly software product that: 1) automates and categorizes deductions, 2)
estimates taxes and net earnings, and 3) populates a Schedule C tax form. (See “Traction.”)
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Competitive Advantage: 1) One-stop-shop solution; 2) founders’ relevant experience running a
1099 marketplace and earning 1099 income; 3) mobile-first, 4) exclusive distribution partnership
relationships, 4) high switching costs as users connect financial and other accounts and accrue
transaction, investment and other user history in a single place.
Next Steps:
• Q2 2015: Fundraise to build integrated product and fund launch (~$1mm)
• Q3 2015: Finalize product roadmap, launch original content for freelancers
• Q1 2016: Public launch
The Market
Target market size and growth: The U.S.’s 53 million freelancers lose $16,000 in lost wages per
person per year, or $850bn/year in aggregate. We hope to capture a portion of this value.
Additionally, in 2012, freelancers spent $20bn on professional services and generated $10bn of
individual health insurance commissions. 1099ers working on digital platforms grew ~100% in
2014. We will focus initially on the 13 million millennial (25-35 years old) freelancers.
Pain points: 1099ers lose significant time, wages, and tax advantages due to the peculiarities of
1099 income. According to the IRS, 1099ers spend 24 hours per year on tax compliance alone,
with 13 hours on recordkeeping for tax purposes. Freelancers spend 20% of their working time on
non-revenue-generating tasks, or $16,000 in lost wages per year. Dozens of services attack one of
these tasks, adding complexity and overwhelming 1099ers with a steep learning curve.
Willingness to pay and adapt: Beta users’ time-intensive, manual hacks — shoeboxes full of
receipts, Word and Excel files — demonstrate their needs remain unmet. Primary research and
paid marketing trials have shown willingness to pay $5-50 / month subscriptions for a
comprehensive platform, including tax, health, and financial management. Millennials have no
established habits, are tech-savvy and are seeking mobile-first solutions.
Competition: Our competition includes manual processes (Excel, receipts in shoeboxes) and
point solutions (eHealth for health insurance, Intuit for tax, Mint for personal finance) that lack
our comprehensive platforms’ simplicity and efficiency. Small/medium business HR software
firms (e.g., Zenefits) may also enter the market, and two startups
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business plans

investment partnership

venture capital firm

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