Endeavor

page 43 Profile Type: TRANSFORMER Defining Characteristics and Known Examples Famous Examples of Transformer Entrepreneurs: HOWARD SCHULTZ Starbucks HERB KELLEHER Southwest NEIL BLUMENTHAL Warby Parker JESSICA ALBA The Honest Company • More established companies with revenue typically >$5M, and highest number of jobs at ISP (median ~150) • Successful Transformers typically show higher historical growth (median 36% CAGR) and a greater proportion of them are in consumer businesses; social impact must be coupled with high growth • Business models include consumer services, retail outlets and franchises, manufacturing and industrials, telecom, F&B, agriculture, and financial inclusion. The best, "next generation" models often have tech-enabled sources of differentiation • Being "innovative", as a leadership attribute, is more commonly cited among top entrepreneurs • Top performers often considered to have high "ecosystem impact potential" (e.g., role model, mentor, inspire…) at selection; but "role model" potential, without the "right" business model and inflection point, can be a "red herring" • Innovation, frequently enabled by technology, distinguishes the top performers and is key to reinventing a "tired, old industry" and turbo-charging growth • "Weak/unclear business model" and/or lack of evident "inflection point" are key red flags commonly associated with poor performers; "more of the same" for older companies is NOT a recipe for success Profile at Selection Defining Characteristics Endeavor Entrepreneurs "Cirque du Soleil"-inspired haircare franchise for low-income customers (Brazil) One of the largest fitness chains in Latin America bringing tech-enabled practices to gym industry (Colombia) First direct to consumer, Warby Parker–inspired, fashion-forward medical apparel brand (Miami) Network of mobile internet agents serving rural markets (Indonesia) Panera Bread type franchise disrupting industry in the Middle East (Egypt)

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