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August 02, 2006
Tech Venture Business Models: Ten Levers & Sixty-odd Tweaks
We like Peter Rip's ideas on business model development for tech ventures that we found via the VCRatings blog. The ideas can be applied not only in the Web 2.0 and online services/content categories, but for software in general, as well as most other tech businesses.
The way we read it, he says there are ten areas where a tech company can establish an unfair advantage over the competition; e.g. economic scale, production costs, marketing costs and so on. For each area there are at least two, and sometimes many more tweaks, or tactics, to achieve and maintain these advantages.
In his Early Stage VC blog, he put it all together in nice graphic.
View image in full
Rip calls the ten areas "levers" for adding value to an investment.
But the a:c euro thinks the concepts are equally useful for would-be entrepreneurs: it can be used as a guide or list of things to think about when developing a robust business model for a technology venture.
The data is based on the business models that Rip sees in his investment practise at Leapfrog Ventures, which covers IT, software, communications/wireless, and technology-heavy consumer-oriented businesses.
Read - EarlyStageVC: Business Model, Schmizness Model(earlystage VC blog)
VC Ratings: Peter Rip's business model diagram goes beyond "advertising-based" (VC ratings blog)
Posted on August 2, 2006 09:23 AM | Posted to entrepreneurship | Permalink
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