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21st Century Business Models – ONEtoONE Corporate Finance



We say some companies have 21st Century Business Models for two reasons. Firstly, although tech companies have been around for decades, in this century industries are being disrupted not by technology itself but by companies with certain business models and specific characteristics. Secondly, these are business models born with the internet boom at the beginning of this century.

Let’s face it, there is a noticeable knowledge gap between traditional financing and investment firms, corporate finance, corporate development, and companies with innovative business models. It’s like in movies when superheroes could do amazing things together but they don’t understand how they can be of value to each other. That would, arguably, explain why this knowledge gap exists. The reality is that these pillars that fuel growth need to understand each other more than ever.
Our digital, tech, and new business model experts at ONEtoONE Corporate Finance decided that it was time to bridge this understanding. This 10-part series intends to so. Our goal is that:

  • Investors, who finance growth or acquire companies, know what to look for and understand the value of certain companies with 21st Century characteristics.
  • Corporate development managers and strategic buyers know what they should be looking for when sourcing potential acquisitions.
  • XXI century CEO and Directors know what they would need to communicate to investors.
  • Corporate finance professionals know how to add value to investors, acquirors and their sell-side/private placement clients.

In the series “Understanding 21st Century Business Models” we look to explain these models, what drives them, how they came to be, how they are innovation catalysts, general metrics that they use, and how to value the companies using them.

The series is divided as follows:

  1. General metrics used in 21st Century Business Models. Understanding 21st Century Business Models: Explaining 3 main business models in detail, plus 4 bonus business model summaries.
  2. E-Commerce.
  3. Marketplace.
  4. Bonus Model 1: OmniChannel.
  5. Cloud Market Group: X as a Service.
  6. Mobile Apps.
  7. Bonus Model 2: User-Generated Content.
  8. Bonus Model 3: Cloud Restaurants (Dark Kitchens).
  9. Bonus Model 4: Decentralized Finance (DeFi).
  10. Valuing XXI Century Business Models.

What are 21st Century Business Models and what drives them?

We are in the age of the customer-centric approach. By customers, we mean anyone or anything that would use a product or a service, meaning users, clients, businesses, governments, and citizens. In the 21st Century, business value creation is being driven by a customer-centric blend of physical and digital business models.

Introduction: Age of Business

Due to technological capacities, an extreme shift in demographics, ever-growing interconnectivity of humans, and a demand for faster human development, these models are characterized by their ability to scale at a faster rate and offer a bigger geographical reach than before, with higher profit margins and use of technological advancements allowing them to reach target markets faster.

The core of a 21st Century Business Models is the value proposition that solves a customer problem or satisfies a customer need.

What is driving these customer needs?

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