1. 1

2. Powerblocks = LEGOs + lighting Modular lighting – Build your own / customize – Change / reconfigure at will Authentic to Max – Home lacks great lighting – Moving a lot – Like building stuff Neck pieces Lighting head(s) Base(s) 2

3. The Blockheads 3 MaxNick Ale Ben

4. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Modular lighting/power: Customization Flexibility Re-usability Convenience Smart-home integration Price Design IP Brand Int. designers Acquisition / Retention Self-Service 1. High-end (wealthy) home owners 2. Office build-outs 3. Low-end (IKEA mkt), dorm students Wholesale to Interior designers Asset Sale Value-Driven ( = high end) Version 1 -- 1/11 4

5. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Modular lighting/power: Customization Flexibility Re-usability Convenience Smart-home integration Price Design IP Brand Int. designers Acquisition / Retention Self-Service 1. High-end (wealthy) home owners 2. Office build-outs 3. Low-end (IKEA mkt), dorm students Wholesale to Interior designers Asset Sale Value-Driven ( = high end) 5 Version 1 -- 1/11

6. 6 Sneaking Into Dorms

7. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Modular lighting/power: Customization Flexibility Re-usability Convenience Smart-home integration Price Design IP Brand Int. designers Acquisition / Retention Self-Service 1. High-end (wealthy) home owners 2. Office build-outs 3. Low-end (IKEA mkt), dorm students Wholesale to Interior designers Asset Sale Value-Driven ( = high end) 7 4. Mid-range home owners Version 1 -- 1/11

8. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Design IP Brand Int. designers Acquisition / Retention Self-Service Wholesale to Interior designers Asset Sale Value-Driven ( = high end) 8 Customization Flexibility 1. Mid-range home owners 2. Office build-outs Version 2 -- 1/18

9. Hitting the Phones 9

10. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Design IP Brand Int. designers Acquisition / Retention Self-Service Wholesale to Interior designers Asset Sale Value-Driven ( = high end) 10 Customization Flexibility 1. Mid-range home owners 2. Office build-outs Version 2 -- 1/18

11. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Design IP Brand Int. designers Acquisition / Retention Self-Service Wholesale to Interior designers Asset Sale Value-Driven ( = high end) 11 Customization Flexibility 1. Mid-range home owners 2. Office build-outs Version 2 -- 1/18

12. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Acquisition / Retention Self-Service Asset Sale Value-Driven ( = high end) Retail Direct online 12 Customization Flexibility 1. Mid-range home owners 2. Office build-outs 3. Young professionals More/less light Directed light Version 2 -- 1/18

13. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Retailers Flexibility: More/less light Directed light Asset Sale Value-Driven ( = high end) Acquisition / Retention Self-Service Retail Direct online Design Marketing Cust. Experience Design IP Brand Young professionals (20-40 yr old) 13 Version 3 -- 1/25

14. Stalking customers at C&B 14

15. We Hit the Phones… Again 15

16. Other progress... 16

17. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Retailers Flexibility: More/less light Directed light Asset Sale Value-Driven ( = high end) Acquisition / Retention Self-Service Retail Direct online Design Marketing Cust. Experience Design IP Brand Young professionals (20-40 yr old) 17 Version 5 -- 2/8

18. Lighting idea

19. 19 Back To The Drawing Board...

20. Maximum Pain. Period. 20

21. Kids Asleep. Parents Happy. 21

22. The Product 22

23. The Product 23

24. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Better lighting thru flexibility: -More/less light -Directed light -Online ads -Prod. reviews Young professionals (20-40 yrs) -Online – direct and mass market 24 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) Version 5 -- 2/8

25. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -PR, blogs, WOM -New parents (baby <1 yr) -Influence: parents, friends -Online retail 25 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) Version 6 -- 2/15

26. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -New parents (baby <1 yr) -Influence: parents, friends 26 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) -PR, blogs, WOM -Online retail Version 6 -- 2/15

27. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -PR, blogs, WOM -New parents (baby <1 yr) -Influence: parents, friends -Online retail 27 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) Version 6 -- 2/15

28. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -PR, blogs, WOM -New parents (baby <1 yr) -Influence: parents, friends -Online retail 28 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) Version 6 -- 2/15

29. Talking to More Parents 29

30. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -PR, blogs, WOM -New parents (baby <1 yr) -Influence: parents, friends -Online retail 30 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) Version 6 -- 2/15

31. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -PR, blogs, WOM -New parents (baby <1 yr) -Influence: parents, friends -Online retail 31 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) blogs Version 6 -- 2/15

32. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -PR, blogs, WOM -New parents (baby <1 yr) -Influence: friends, blogs -Online retail 32 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) -1 st baby Version 6 -- 2/15

33. Babies Outgrow Stuff… Fast 33

34. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model -Baby stops crying -Baby goes to sleep -Blogs, WOM -New parents (1st baby, baby <1 yr) -Influence: friends, blogs -Online retail 34 Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Design IP Brand Asset Sale Value-Driven ( = high end) Renting Version 6 -- 2/15

35. Babies Outgrow Stuff… Fast 35

36. To The Future? 36 Car simulator Now Netflix for baby stuff 2 years Online product rental? 5 years

37. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams So here’s where we ended up Outsourced: mfg, fulfillment Design Marketing Cust. Experience Design IP Brand 37 -Blogs, WOM -New parents (1st baby, baby <1 yr) -Influence: friends, blogs -Online retail -Baby stops crying -Baby goes to sleep Asset Sale Renting Value-Driven ( = high end) Version 8 -- 3/1

38. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Question 1: Can we build it? Outsourced: mfg, fulfillment Design Marketing Cust. Experience Design IP Brand 38 -Blogs, WOM -New parents (1st baby, baby <1 yr) -Influence: friends, blogs -Online retail -Baby stops crying -Baby goes to sleep Asset Sale Renting Value-Driven ( = high end) Version 8 -- 3/1

39. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Question 2: Do the costs work? Outsourced: mfg, fulfillment Design Marketing Cust. Experience Design IP Brand 39 -Blogs, WOM -New parents (1st baby, baby <1 yr) -Influence: friends, blogs -Online retail -Baby stops crying -Baby goes to sleep Asset Sale Renting Value-Driven ( = high end) Version 8 -- 3/1

40. 40 So... what have we learned?

41. 41

42. 42

43. 43

44. 44

45. BUSINESS MODEL CANVASSES 45

46. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Modular lighting/power: Customization Flexibility Re-usability Convenience Smart-home integration Price Design IP Brand Int. designers Acquisition / Retention Self-Service 1. High-end (wealthy) home owners 2. Office build-outs 3. Low-end (IKEA mkt), dorm students Wholesale to Interior designers Asset Sale Value-Driven ( = high end) Version 1 1/11/11 46

47. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Int. Designer Retailers Design Marketing Cust. Experience Customization Flexibility Design IP Brand Int. designers Acquisition / Retention Self-Service High-end residents Mid-end Interior designers Asset Sale Value-Driven ( = high end) Also looking at commercial lighting 47 Version 2 1/18/11

48. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience More/less light Directed light Design IP Brand Acquisition / Retention Self-Service Young professionals -Retail -Direct online Asset Sale Value-Driven ( = high end) Version 3 1/25/11 48

49. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Flexibility: -More/less light -Directed light Design IP Brand -Trade show -Online ads -Design mag. Young professionals (20-40 yrs) -Retail -Direct online Asset Sale Value-Driven ( = high end) Version 4 2/1/11 49

50. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment, support Distributors: Retailers Design Marketing Cust. Experience Better lighting thru flexibility: -More/less light -Directed light Design IP Brand -Online ads -Prod. reviews Young professionals (20-40 yrs) -Online – direct and mass market Asset SaleValue-driven Version 5 2/8/11 50

51. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment Design Marketing Cust. Experience -Baby stops crying -Baby goes to sleep Design IP Brand -PR, blogs, WOM -New parents (baby <1 yr) -Influence: relatives, friends -Online retail Asset SaleValue-driven Version 6 2/15/11 51

52. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment Design Marketing Cust. Experience -Baby stops crying -Baby goes to sleep Design IP Brand -Blogs -WOM = referrals -New parents (1 st baby, baby <1 yr) -Influence: friends, blogs -Online retail Asset Sale Renting Value-driven Version 7 2/22/11 52

53. Key PartnersKey ActivitiesValue PropositionsDemand CreationCustomer Segments ChannelsKey Resources Cost StructureRevenue Streams Powerblocks Business Model Outsourced: mfg, fulfillment Design Marketing Cust. Experience -Baby stops crying -Baby goes to sleep Design IP Brand -Blogs -WOM = referrals -New parents (1 st baby, baby <1 yr) -Influence: friends, blogs -Online retail Asset Sale Renting Value-driven Version 8 3/1/11 53

54. 54 zuck@stanford.edustaubach@stanford.edupalan@stanford.edubwil@stanford.edu