1. ENTREPRENEURSHIP IN ENTERTAINMENT TECHNOLOGY WELCOME!

2. TODAY’S AGENDA Financial Statements Review from Tuesday Teardowns General Examples Netflix Class Exercise

3. FINANCIAL STATEMENTS

4. MAIN TYPES Income Statement (P&L) Balance Sheet Cash Flow

5. TEARDOWNS

6. CONSUMER INTERNET BUSINESS MODELS techcrunch.com/2010/10/10/teardown-13-ways-10-million-revenues/

7. EXAMPLES techcrunch.com/2010/10/10/teardown-13-ways-10-million-revenues/

8. NETFLIX Source: Public Filings

9. WHITEBOARD EXERCISE

10. WHITEBOARD Revenue streams Costs of revenue (variable costs) Other important aspects of your model Assumptions you’ll have to make Key levers

11. NEXT CLASS

12. HOMEWORK Read techcrunch.com/2010/10/10/teardown-13-ways-10-million-revenues/ Financial Model for FYE with $10M in Revenue Excel spreadsheet Explicit detail on assumptions No company intro – just get straight to the data

13. RESOURCES

14. Teardowns techcrunch.com/2010/10/10/teardown-13-ways-10-million-revenues/ techcrunch.com/2010/05/13/zynga-teardown/ techcrunch.com/2010/05/02/teardown-groupon/