Value Proposition Development

Startup revenue multiples highlight the two sectors with the most promise... Defense (median 17.4x revenue multiple) and AI startups (17.1x) are trading at median multiples that dwarf traditional sectors. The sector premiums go beyond “hype”; reflecting three shifts reshaping a venture capital ecosystem desperate for returns. 1) The promise of future revenue trajectories Defense and AI represent two of the largest addressable markets on the planet, both measured in the trillions. Unlike mature sectors where growth follows predictable curves, these industries offer exponential scaling potential. Defense startups benefit from multi-year government contracts with built-in escalation clauses, creating predictable revenue streams that can expand rapidly as capabilities prove successful. AI companies can scale globally with minimal marginal costs once their models are trained and deployed. 2) The disruption premium Both sectors feature massive incumbent players ripe for disruption. Traditional defense contractors like Lockheed Martin and Boeing built their technology stacks decades ago, creating opportunities for startups with modern software-first approaches. Similarly, AI startups are displacing established software companies across every vertical, from customer service to code generation. Investors are paying premium multiples because they're betting on complete industry transformation. When a defense startup can deliver drone capabilities at 1/10th the cost of traditional systems, or an AI company can automate processes that previously required 100-person teams, the disruption potential justifies aggressive valuations. 3) Early-stage value speculation Defense and AI startups are commanding these record multiples dramatically earlier in their life cycles. This represents a fundamental shift in how venture capital evaluates opportunity. Traditional sectors face rigorous scrutiny around customer acquisition costs, lifetime value ratios, gross margins, and path to profitability. Defense and AI startups are often valued primarily on their technology's promise and their potential to capture massive market opportunities – while revenue remains minimal or non-existent. Of course, many of these companies may never grow into their valuations – but the potential upside of identifying the next Palantir or OpenAI makes the speculation worthwhile. The 17x+ median multiples reflect investors’ simple calculation: these companies will either grow into their valuations through explosive revenue growth or exit at premiums that justify today's prices (both sectors offer multiple paths to liquidity at premium valuations). In sectors where winner-take-all dynamics dominate and the stakes include national security and economic transformation, premium valuations become the price of admission to the future. P.S. We’re building the world’s largest, high-quality private company revenue data set. Check it out at the link in the graphic.

Just saw a defense contract that made me stop in my tracks. Here's why it matters for every American business. Last week, I was researching Anduril Industries and how they secured a $1 billion contract in 22 (and pushing 800 million in 25) to deliver counter-drone systems to the Pentagon. But here's what caught my attention: they're only 7 years old. A startup just beat Raytheon, Lockheed, and Northrop for a billion-dollar defense contract. This isn't just about drones. It's about the complete transformation of how America builds its defense industrial base. The old playbook of 20-year development cycles and cost-plus contracts is dying. What's replacing it? Speed, software, and venture capital. Anduril went from zero to billion-dollar contracts faster than traditional primes develop a single prototype. They're not alone - Shield AI, Epirus, and dozens of other startups are winning major contracts. For American businesses, this signals three massive opportunities: First, the Pentagon is actively seeking non-traditional suppliers. If you have AI, autonomy, or manufacturing capabilities, there's never been a better time to enter defense. Second, the supply chain is wide open. These new primes need thousands of suppliers who can move at startup speed. Your commercial technology might be exactly what they need. Third, the talent war is real. Engineers who understand both Silicon Valley and the Pentagon are writing their own tickets. If you can bridge these worlds, you're golden. The defense industry just went from closed club to open competition. And that changes everything.

Is Offer or Positioning your problem ? A coach came to me last quarter—brilliant, experienced, genuinely exceptional at transformation. But she was defeated. "No one's buying. I need to scrap everything and rebuild," she told me. I've heard this before too. When effort meets silence, we assume something is fundamentally broken. Instead of agreeing, I asked: "Walk me through exactly what your client receives, step by step." She outlined her process. It was rock-solid. Deep transformation. Strategic support. Genuine results. I thought and thought and said something that visibly shocked her: "Your offer isn't the problem. Your positioning is." She stared back, confused. "What exactly do you mean?" Here's what changed everything for her: 👉 Your offer is what you deliver  👉 Your positioning is how the right people recognize its value This isn't marketing fluff. It's not manipulation. It's strategic clarity. We touched nothing in her actual program. We just rewired the language. Before: "Holistic Life Realignment Program" (what does that even mean to someone struggling?) After: "A 6-week guided system to reset your priorities and regain control of your life" The results were immediate. Inquiries jumped. Sales conversations flowed. Her close rate doubled within weeks. This is why Rory Sutherland's insight is worth millions: "Value is not inherent. It's perceived. And perception can be intelligently influenced." That's positioning. It's the intelligent amplification of truth. It's not trickery. It's translation. Before you tear down what you've built: Ask yourself: "Is my offer truly failing? Or have I just not articulated it in a way they can feel the value?" Don't demolish the house. Just change how you invite people in. What's one offer you have that might just need better positioning rather than a complete overhaul? Comment below and I'll share my perspective. #PositioningStrategy #MarketingPsychology #HighTicketOffers #BusinessGrowth

An Australian electricity retailer just launched something that should get every utility executive's attention. They're paying customers $365 annually to avoid drawing power from the grid during peak hours—but the real story is what this reveals about the future of energy. Here's what Globird Energy's "ZeroHero" program actually does: customers get $1 daily for keeping grid consumption below 0.03kWh per hour during the critical 6-8pm peak. That means essentially zero grid dependence when demand is highest, forcing complete reliance on home batteries. The program accepts batteries from 3-100kWh capacity and operates across four Australian states covering 21.5 million people. During extreme grid events, participants earn an additional $1 per kWh delivered back to the grid. The business economics are fascinating. Globird loses roughly $0.80 per customer daily on direct payments, but makes money through virtual power plant aggregation. They're essentially paying customers to form a distributed grid resource, then monetizing that aggregated capacity in wholesale markets where prices can spike above $500/MWh during peak events. This isn't unique globally. Tesla pays California customers $2/kWh during emergencies, Duke Energy offers $9,000 upfront incentives, and Germany's Sonnen network aggregates 25,000 batteries totaling 250MWh. But Globird's approach is different—it's about behavioral psychology, not just technology. Rather than complex time-of-use rates that customers ignore, they're using loss aversion. People focus on not losing that daily dollar, creating habits that align with grid needs. It's brilliant behavioral design disguised as a pricing plan. The bigger signal here is utilities transforming from commodity providers to platform operators. The US Department of Energy calculates that tripling virtual power plant capacity by 2030 could save $10 billion annually. Wood Mackenzie projects the distributed energy market reaching $68 billion in annual capital expenditure by 2027. Australia leads because of regulatory support—$2.3 billion in federal battery subsidies plus state incentives—but the model is exportable. As traditional utility margins get squeezed, aggregating customer assets becomes a survival strategy. We're witnessing the early days of energy platform economics. Instead of fighting distributed resources, smart utilities are figuring out how to orchestrate them. The winners will be those who turn customers into partners, not just bill payers. What's your take? Are behavioral incentives like this more effective than complex pricing for driving customer participation?

When Transparency Becomes Trust: What We Can Learn from Japan’s Farmer-First Approach! In a world where food travels thousands of miles before reaching our plates, we often forget the hands that nurture, harvest, and care for what sustains us. Recently, a practice from Japan caught my attention simple, yet profoundly impactful. Japan started printing photos of farmers directly on food boxes, showing exactly who grew the produce. This small gesture has created a big shift: it humanizes the supply chain. Imagine picking up a box of oranges and seeing the smiling face of the person who tended to the trees, battled the weather, woke up before sunrise, and ensured the fruit reached you fresh. It’s no longer just a purchase—it becomes a connection. 🌾 Why This Matters? 1. Trust Through Transparency: When consumers see the real people behind their food, trust naturally grows. It assures them of authenticity, safety, and quality—something the modern food ecosystem often lacks. 2. Increased Visibility for Farmers: Farmers, who are usually invisible in the value chain, finally get the recognition they deserve. Their identity becomes part of the product itself. 3. A Boost in Empathy and Respect: Seeing a farmer’s face fosters appreciation. It reminds us that food is not just a commodity but the result of someone’s hard work and dedication. This emotional connection can shift mindsets and elevate the dignity of our agricultural workforce. 🇮🇳 A Dream India Can Transform into Reality India, with its rich agricultural heritage and millions of hardworking farmers, stands to gain immensely from such an initiative. By showcasing farmers on packaging: Brands build stronger consumer loyalty Agricultural workers receive social visibility People feel more responsible about their choices The gap between farmers and consumers narrows. At a time when conversations around farmer welfare are more important than ever, such transparency-driven innovations can spark empathy, enhance market value, and strengthen the bond between producers and consumers. 🌟 A Small Idea with a Big Heart: Printing a farmer’s photo on a fruit box may seem like a modest step, but its impact is powerful. It reminds us that behind every harvest, there is a story—one of perseverance, dedication, and hope. Maybe it’s time we think of similar ways to bring our own farmers into the spotlight. Because when we honor those who feed us, we build a more compassionate and transparent food system for everyone.

Behind-the-Meter IPP Under an Energy-as-a-Service Model A Behind-the-Meter (BTM) Independent Power Producer (IPP) operating under an Energy-as-a-Service (EaaS) model provides cost-effective, resilient, and sustainable energy solutions for commercial, industrial, and municipal customers. This approach enables end users to access on-site or near-site power generation without upfront capital investment, while the IPP manages operations, maintenance, & performance. The BTM IPP EaaS Provider sits at the heart, orchestrating everything. It secures capital from Financing Partners to design and build Energy Infrastructure tailored to the Client’s needs. Using Innovative Technologies, it ensures efficiency and sustainability, delivering power directly to the Client behind the meter—bypassing traditional utility grids. The Client pays for the service through contracts, while the provider maintains ownership & operation, driving toward broader Sustainability Goals. Key Characteristics of a BTM IPP in EaaS 1. On-Site or Near-Site Generation - The IPP installs and operates assets such as CHP, solar + storage, fuel cells, and microgrids at or near the customer’s site. - Reduces reliance on the utility grid and minimizes transmission & distribution (T&D) charges. 2. No Upfront Capital for Customers - The IPP finances, owns, & maintains the infrastructure, offering a fixed or variable pricing model (e.g., per kWh, per ton of steam, or performance-based contracts). 3. Operational & Performance Guarantees - The provider ensures uptime, efficiency, and compliance while handling fuel procurement, maintenance, and energy optimization. 4. Grid Independence & Resilience - Enhances energy security by reducing exposure to grid outages and price volatility. - Can integrate with demand response, islanded operations, or hybrid microgrids. 5. Regulatory & Market Benefits - Customers avoid T&D fees, improving overall economics compared to grid purchases. - May qualify for incentives such as Investment Tax Credits (ITC), state/local tax benefits, and decarbonization grants. Cordia Energy integrates BTM IPP with EaaS to provide turnkey, sustainable, and cost-effective energy solutions. By financing, owning, and operating distributed generation assets, including cogeneration (CHP), district energy, solar + storage, and fuel cells, Cordia helps customers lower costs, improve resilience, & meet sustainability goals without capital expenditures. Leveraging its deep expertise in district energy, microgrids, & energy efficiency, Cordia offers end-to-end system management, including design, operation, maintenance, fuel procurement, and regulatory compliance. This ensures maximum efficiency, reliability, and carbon reduction, allowing customers to focus on their core business while benefiting from low-risk, high-performance energy solutions. For more details, please contact Richard.Riopel@cordiaenergy.com. #energy #cordia

I came across this menu today at a hotel (apologies for the quality of the picture!), and I thought it was a good case of F&B Revenue Management and Menu Engineering. This isn't just a list of dishes; it’s psychological pricing: 1. Price Anchoring: The Beluga Caviar at 300 serves as a powerful anchor. It makes the Holstein Beef Burger at 29 feel incredibly reasonable and drives sales toward those profitable middle-tier items. 2. Visual Guidance: Notice the icons (like the 'V') and illustrations. These are deliberate ‘eye magnets’ used to guide customers toward high-margin selections, often increasing profitability without them even realizing it. 3. Value-Driven Language: Specific descriptions ("with its classic garnish") boost the perceived quality and justify the price point. It often surprises me how many hoteliers and Revenue Managers completely neglect this critical revenue stream. True Total Revenue Management includes F&B, and if RMs aren't actively collaborating on and quantifying the effects of Menu Engineering, they are leaving significant profit on the table.

🌍 Japan did it. India needs it. Japan prints farmers' photos on food boxes, giving consumers full trust and giving farmers the respect they deserve. Imagine this in India: A country with millions of farmers, a booming agri-tech ecosystem, and rising demand for safe, traceable food. This simple idea can transform: #Trust #Transparency #Farmer #dignity #Farm-to-fork branding It's time India shows the faces behind our food. Because when farmers become visible, agriculture becomes aspirational. The post says that India should adopt Japan's practice of printing farmers' photos on food packaging to build consumer trust, promote transparency, and give farmers greater dignity and respect. By visually connecting consumers with the producers, this simple idea can transform food branding, improve traceability, and make farming a more aspirational profession in India. Benefits for India Increased consumer trust: Seeing a farmer's face on a package can create a personal connection and make consumers feel more confident about the food's origin and quality. Enhanced transparency: It provides a clear and direct link between consumers and producers, revealing who grew the food and how it was cultivated. Greater farmer dignity: It recognizes the hard work of farmers and promotes respect for their contribution to the food system. Farm-to-fork branding: This practice can build strong farm-to-fork brands based on authenticity and direct relationships, rather than solely on corporate logos. Support for local agriculture: It encourages consumers to buy local produce, strengthening community-based farming and potentially leading to fairer prices for farmers. How it could work in India Leveraging technology: This initiative can be enhanced with QR codes on packaging that link to apps with more detailed information about the farm and the farmer. Simple implementation: The basic concept can be applied to various food items, from fruits and vegetables to other agricultural products, making it a scalable idea. Meeting growing demand: It directly addresses the increasing consumer interest in knowing where food comes from and supporting ethical, traceable food systems in #india. . . . . . #Inspiration #Discipline #agriculture #StoryofFarmer #IndianFarmer #Motivation #InspiredDaily #ValueLife #InspiredLiving #japan #World #Dedication #DoGoodFeelGood #LinkedinSharing #SharingisCaring #SpreadHumanity #BeproductiveOneLife Overall focused on: #FarmToFork #FarmerFirst #SupportFarmers #AgritechIndia #IndianAgriculture #FoodTransparency #KnowYourFarmer #Sustainable_Farming #FarmersOfIndia #Traceability #FoodSafetyIndia #Rurallnnovation #AgriRevolution #RespectFarmers #DigitalAgriculture #MadeByFarmers #FarmBranding #IndiaAgritech #Agrilnnovation #Faces

Private capital is reshaping the defence industry, stepping in to drive innovation, scale production, and address affordability challenges. With defence budgets tightening and government R&D spending at historic lows, the sector is looking to private investors to bridge the gap. Venture capital in defence has surged, with deals increasing 18-fold over the past decade, as dual-use technologies and emerging competitors with cost-effective solutions capture attention. This growing role of private investment highlights an unprecedented opportunity to modernise defence capabilities and strengthen national security. For investors willing to navigate the complexities of the defence sector, the potential rewards are significant. From funding disruptive startups to helping established companies enhance delivery and reduce costs, private capital is essential for accelerating transformation. As innovation becomes critical to meet evolving threats, the defence sector is becoming a prime arena for investors aiming to make both an impact and a strong return.

The beauty of flexible assets installed behind-the-meter, e.g., at your home? You can monetize use cases on both "sides" of the meter. First of all, your #heatpump, #EV or residential #energystorage unit can be operated in a "smart" way that shifts your power consumption habits to lower price periods. Home Energy Management Systems (#HEMS) are the enabler here. This obviously leads to reduced energy bills, but also to a decreased carbon footprint as low power prices almost always correlate with low electrical grid carbon emissions (a lot of renewables feeding in). Now that you have met your primary objective behind-the-meter, you can look at the other side: Front-of-the-meter. Here, aggregators can pool your flexibility assets into Virtual Power Plants (#VPP) and generate additional revenue streams at the wholesale energy- and ancillary services markets - just like the big flexibility assets such as multi-MW grid-scale batteries. Sounds like a compelling value proposition for retailers? It does, but as always, there is no free lunch. Challenges around cybersecurity, interoperability, user acceptance, red tape and operational complexity need to be mastered by companies that aim to offer HEMS and VPP to their customers. However, challenges always bear the opportunity to develop a competitive edge in a still emerging market. Utilities and suppliers who fail to invest in early-stage market entry or technological alignment may face significant customer outflows due to attractive customer propositions from successful players. If you want to learn more, read a recent article I co-authored with my colleague Henri Bittel linked in the comments.