Businessmodel of Expa

Customer Segments

Expa has a niche market business model, with a specialized customer segment. The company targets its offering at new and early-stage startups seeking assistance with product development.

Value Proposition

Expa offers three primary value propositions: accessibility, risk reduction, and brand/status.

The company creates accessibility by provider easier market entry. It is focused on providing new startups with product development guidance, helping to increase their probability of success. This represents a new kind of service, as these ventures do not usually receive such intense support. Its investment arm, Expa Capital, invests between $500,000 and $1 million of seed capital on each firm.

The company reduces risk by applying a high level of attention to clients. It takes a hands-on stance for their product development efforts, forming teams to assist them in crafting the brand, building the prototype, and determining market fit. It also utilizes a heavily data-driven approach. Once a project has received traction, Expa shifts resources to companies at earlier stages.

The company has established a strong brand due to its initial success. It has 25 in-house experts in New York City and San Francisco as part of its team. In its first two years of operation they helped Expa launch 15 new firms, including Spot.com, Mix.com, Reserve.com, and Operator.com.

Channels

Expa’s main channel is its website. The company promotes its offering through its social media pages.

Customer Relationships

Expa’s customer relationship is primarily of a dedicated personal assistance nature. The company’s staff members work directly with a specified set of clients to assist in product development efforts.

Key Activities

Expa’s business model entails providing dedicated service for its clients.

Key Partners

Expa operates Expa Labs, a program through which it solicits applications from entrepreneurs with promising ideas. The initiative manages six companies at a time, providing them with $500,000 in seed funding and six months of office space in New York City or San Francisco. The program is 180 days long, and benefits include legal help, expert advice, and access to Expa’s advisors network.

Key Resources

Expa’s main resources are its employees, who include the entrepreneurs, engineers, and designers that design and develop its services and provide them to clients.

As a new startup it has relied heavily on funding from outside parties, raising $150 million from 16 investors as of March 2016.

Cost Structure

Expa has a value-driven structure, aiming to provide a premium proposition through significant personal service.

Its biggest cost driver is likely cost of services, a variable expense. Other major drivers are in the areas of product development and administration, both fixed costs.

Revenue Streams

Expa has one revenue stream: the share of revenues it obtains when clients’ products go on the market.