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1. Apply online by November 20 – www.EntrepreneurshipFoundation.org – By answering 19 questions – You can paste from a word doc – Answers limited to 1500 characters/spaces 2. Start-up Grants: $1000 - $1000 - $10,000. 3. Winner pitches to CT Angel Investor Guild 4. Cost: No entry fee Page 1 University Business Plan Competition
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1.Apply online by November 20 – – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Dec 26, 2015

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Georgia Tyler
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Page 1: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

1. Apply online by November 20– www.EntrepreneurshipFoundation.org– By answering 19 questions – You can paste from a word doc– Answers limited to 1500 characters/spaces

2. Start-up Grants: $1000 - $1000 - $10,000.3. Winner pitches to CT Angel Investor Guild4. Cost: No entry fee

Page 1

University Business Plan Competition

Page 2: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

1. Apply online– www.Back-Offices.com/VCFair – $225 including two attendees

2. Three-minute PowerPoint presentation plus exhibit table.

3. 1:00 – 7:00 pm4. New Haven Lawn Club5. 30 Companies/ 30 Investors

Page 2

Early Stage and University Venture Fair

Page 3: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Evaluating Business Opportunities

North Bridge Venture PartnersSignal Lake Ventures

Connecticut Angel GuildConnecticut Venture Group

Page 4: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

The Deal Scorecard

1. Management

2. Market

3. Competition

5. Ability to Forecast Results

6. Capital Intensity (Risk/Reward)

10 1

4. Product/Technology

Page 5: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Management

Good Teams have:

• Done their jobs before (no OJT)• Experienced ramp from startup to big company• Relevant industry experience & contacts• Specialized expertise and insight• Ability to adapt to change• Brains and hunger

Senior TeamProven Record

No OperatingExperience

10 1

Page 6: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Management

A Good Incomplete Team

• Vision• Energy and hunger• Efficient (Not a drain on capital)• Appropriate role for each person• Acknowledges management gaps

Page 7: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Market

> $1 BillionGrowth capacity > 30%

Stagnant

10 1

Attractive Markets:• Big ($50,000,000 potential)• Target users adopt new products

quickly• Customers feel real pain• Customers can be reached

economically• The time is (will be) right

Page 8: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Competition

Potential forLeadership

SeveralEstablished

Players

10 1

Leading Companies:

• Typically first to market• Leaders define “Market”• Leaders get market share• Market share critical to success

Page 9: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Product/Technology

Clearly SuperiorProviding Leverage

NoAdvantage

10 1

• Difficult to replicate• Special technical skills required• Special user knowledge required• Proprietary technology (patents)• Many man-months to develop (time, $)

• Improves rapidly with customer feedback

Page 10: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Ability to Forecast Results

High Low

10 1

Great companies create and execute operating plans:

• Plan is financial expression of strategy• Defines business model• Shows interrelation of timelines, functions,

hires• Reflects detailed understanding of the

business

Page 11: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Capital Intensity

Low High

10 1

A function of:

• Start-up and working-Capital needs (Risk)• Gross margins (Reward)• Sales and marketing expenses

(Potential to deflate margins)

Page 12: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

No Single Recipe

1. Management

2. Market

3. Competition

5. Ability to Forecast Results

6. Capital Intensity

10 1

4. Product/Technology

A B C

Page 13: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Real World Feedback

• Interview:Customers, Analysts, Potential hires,

Potential partners, Other CEOs• Where is the pain?• Would you buy?• How many?• At what price?• How do you buy?• What could we do better?

• Listen for what you don’t want to hear

Page 14: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Venture Capital Financing TodayInnovation and Entrepreneurship

PanelUniversity of Massachusetts at

Amherst24 October 2009

Page 15: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Venture Funding in theCurrent Environment

Early stage companies that require relatively small amounts of capital to reach positive cash flow, with low valuations are getting funded

Page 16: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

• LENDERS: –No Risk–Low Return

• EQUITY INVESTORS:

– Low Risk–High Return

Objective of Investors

Page 17: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Roer’s Continuum

Per Cent of Ownership Retained

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Idea stage Proto-type Patent Productionmodel

Orders Productsdelivered

At break-even

Profit>$1mm

Profit>$10mm

Page 18: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Variables Affecting the Curve

Per Cent of Ownership Retained

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Idea stage Proto-type Patent Productionmodel

Orders Productsdelivered

At break-even

Profit>$1mm

Profit>$10mm

External factors: Economy – Capital available – Confidence – Competition Internal Factors: Hot New Tech – Serial Entrepreneur – Mega Potential

Page 19: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

Page 19

A $1 Million Investment …

After YearAfter Year @ 40% IRR =@ 40% IRR = @ 60% IRR =@ 60% IRR =

11 $ 1.4 MM$ 1.4 MM $ 1.6 MM$ 1.6 MM

22 $ 2.0 MM$ 2.0 MM $ 2.6 MM$ 2.6 MM

33 $ 2.7 MM$ 2.7 MM $ 4.1 MM$ 4.1 MM

44 $ 3.8 MM$ 3.8 MM $ 6.6 MM$ 6.6 MM

55 $ 5.4 MM$ 5.4 MM $ 10.5 MM$ 10.5 MM

Page 20: 1.Apply online by November 20 –  – By answering 19 questions – You can paste from a word doc – Answers limited to 1500.

CAPITAL SOURCE Amount Pros Cons

Bootstrapping with Savings Small but critical

No dilution Limited amounts

Credit Card Debt Up to $100k Easy access Interest can balloon

SBIR Funded Research www.ctinnovations.com

$125-700K Don’t have to pay back

Equity ”Angel” Investors www.EntrepreneurshipFoundation.org

$250k-$1MM Industry connections - Dilution

- Partnership

Connecticut Innovations www.ctinnovations.com

$500k-$1mm Accessible

Venture Capital Fund www.CVG.org

$1 - 100M - Experience- Deep pockets

- Difficult to meet profile- Will want 10-50%

Bank Loans Limited to assets

No dilution Guarantees = personal liability

Leasing Varies Reduces capital needs Interest Cost

Strategic Corporate Partner $1m – Unlimited

Access to markets Loss of Control