Business Model

How a company creates, delivers and captures value — i.e. how it makes money.

The business model covers revenue streams, pricing, cost structure, channels and customer segments. Common models include subscription, marketplace, transactional, freemium and licensing. A clear, proven model reassures investors that growth converts into sustainable revenue.

Examples

A freemium app converts 4% of free users to paid. — A marketplace takes a 15% commission per transaction.

How it relates to The Startup Foundry

Your business model is core to the Business Opportunity pillar. The Foundry helps you validate and present it.

Related terms

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