Accelerating Your Go-to-Market Strategy
By
Randy Goldsmith, PhDwww.t3dc.org
www.venturecapitaltools.com
Every Entrepreneur Needs Investment Capital
© 2005 Goldsmith
Venture Investors
Accelerating Commercialization
1st Five Fundamental Investor Questions
• How big is the market pain?
• How good is the solution?
• Is there a profit opportunity?
• Is this the right entrepreneur?
• Can it be done?
2nd Five Fundamental Investor Questions
• How much money do you want?
• What are you going to do with it?
• How much money will I get back?
• When will I get my money back?
• How will I get my money back?
Investigation Feasibility Development Introduction Growth
Pre Seed Seed Early Stage
IPIPOO
Mid Stage Late Stage
© 2005 Goldsmith
Lower RiskHigher Risk
SAEDC Invests
Financing Cycle for Startup CompaniesVenture-backed Financing
Debtand/orEquity
Equity
Process & Toolkit
InnovationReadiness
Product Readiness
VentureReadiness
Risk Readiness
EntrepreneurReadiness
Venture Valuation
Business PlanReadiness
CapitalizationEvaluation
www.venturecapitaltools.com
The Process
Entrepreneur Assessment
Product Assessment
Venture Assessment
Commercialization Strategy
Business Plan Assessment
Risk Assessment
Valuation
Investor Presentation
Term Sheet
Due Diligence
$$$$$$$$$$$
Funding Pathway
© 2009 Goldsmith
Readiness Assessment
Entrepreneur Assessment
Product Assessment
Venture Assessment
Commercialization Strategy
Business Plan Assessment
Risk Assessment
Valuation
Investor Presentation
Term Sheet
Due Diligence
$$$$$$$$$$$
Funding Pathway
© 2008 Goldsmith
The Ideal Deal• A high performance enterprise
• A radical, disruptive, platform innovation
• Exponential growth potential
• Serial entrepreneur
• Reliable financing resources
VALIDATED
Typical Clients
• All have an innovation.
• All want money.
• Few are investor ready.
• Some have intellectual property.
Entrepreneur Readiness Assessment
Entrepreneurial Readiness
© 2005 Goldsmith
Right Brain!
Entrepreneurial Assessment
• Credentials
• Character
• Circumstances
• Capabilities
• Commitment
Product Readiness Assessment
Product Characteristics
• TypesTypes– Process
– Product/Service
– Strategy
• ImpactImpact– Sustaining
– Disruptive
• Value– Enabling– Competitiveness– Profits
• ImprovementImprovement– Incremental
– Advanced
– Radical
• UtilityUtility– SpecificSpecific
– PlatformPlatform
• RisksRisks– DevelopmentDevelopment– MarketMarket– FinancingFinancing
© 2008 Goldsmith
Third-party Validation
• University scientist
• Industry subject matter expert
• Knowledgeable investor
• Consultant
Venture Readiness
The Commercialization Pathway
Commercialization Plan
112
3
4
5
6
7
Time
Money
MilestonesCapital infusionExpensesRevenue
7
NO!4?
Commercialization Plan
11 23
4
5
6
7
Time
Money
MilestonesCapital infusionExpensesRevenue
7
Yes!
Stage 3Development
Stage IInvestigation
Stage 2Feasibility
Stage 4Introduction
Stage 5Growth
Stage 6Maturity
Engineering Prototype
Technical Analysis
TechnicalFeasibility
Pre-productionPrototype
ProductionSupport
StrategicMarket plan
Market need Assessment
Market Validation
Sales &Distribution
MarketDiversification
StrategicB/plan
Venture Assessment
EconomicFeasibility
Business Start-up
BusinessGrowth
Business Maturity
Technical
Marketing
Business
Market Study
Production
COMMERCIALIZATION MODEL
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Step 11
Step 12
Step 13
Step 14
Step 15
Step 16
Step 17
Step 18
© 2008 Goldsmith
Stage 3Planning
Stage IInvestigation
Stage 2Feasibility
Stage 4Development
Stage 5Growth
Stage 6Maturity
Engineering Prototype
*Engineered prototype*Material, equipment, process requirements
and sourcing plan.*Performance assessment
plan.*Optimize design.
Technical Analysis
*Problem/Solution technical evaluation.
*IP Review.*Preliminary subject
matter expert review.*Preliminary cost
analysis.
Technical Feasibility
*Bench design working model.
*Proof of concept.*Customer-driven
revisions.*Manufacturability and scalability analysis.
Pre-production Prototype
*Pre-production prototype.*Production process design.
*Material and supplier agreements.
*Pilot production.*Performance, reliability &
Quality tests.
Production
*Equipment and facility.*Full scale production.
*Performance, reliability &quality tests.
*Field support system.
Production Support
*Customer support.*New/improved products.
*Warranty program.*Research and development.
Strategic Business Plan
*Business plan.*Venture financing..
*Operations implementation plan.
*Advisory and director boards.*Staffing plan.
Venture Assessment
*Profitability assessment.*Preliminary business
model design.*Capital requirement estimate.*Management requirements.
Economic Feasibility
*Develop 5-year pro-forma.*Develop financial
requirements.*Business organization.*Secure seed financing.
*IP filing.
Business Start-up
*Initial staff hires and training.*Business policy,
procedures & operations.*Venture financing.
Business Growth
*Full staff.*Management operations.
*Business systems.*Contracts.
*Venture financing.
Business Maturity
*Corporate development.*Financial management.*Return on investment.
Enterprise growth Strategy.
Strategic Market Plan
*Market tests.*Advertising, sales,
distribution plan.*Marketing materials.*Market development
*Resource and timeline plan.
Market Need Analysis
*Problem/Solution market evaluation.
*Industry trends analysis.*Preliminary competitive
assessment.*Informal market
validation.
Market Validation
*Initial sales.*Customer satisfaction
survey.*Production, market
adjustments.
Sales & Distribution
*Sales.*Market expansion.*Customer surveys.
*Promotional campaigns.
Market Diversification
*Market trend analysis.*Marketing resource
allocation.*New marketing strategies.
Market Study
*In-depth target market assessment.
*In-depth competitive analysis.
*Expression of interest from primary target
market.
Detailed Commercialization Model© 2008 Goldsmith
Technical
Marketing
Business
Stage 3Development
Stage IInvestigation
Stage 2Feasibility
Stage 4Introduction
Stage 5Growth
Stage 6Maturity
Engineering Prototype
Technical Analysis
TechnicalFeasibility
Pre-productionPrototype Production
Market need Assessment
StrategicB/plan
Venture Assessment
Business Start-up
Technical
Marketing
Business
Initial Assessment (completed )
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Step 11
Step 12
Step 13
Step 14
Step 15
Step 16
Step 17
Step 18
Pr
Stage 3Development
Stage IInvestigation
Stage 2Feasibility
Stage 4Introduction
Stage 5Growth
Stage 6Maturity
Engineering Prototype
Technical Analysis
TechnicalFeasibility
StrategicMarket plan
Market need Assessment
Venture Assessment
EconomicFeasibility
Technical
Business
Market Study
Optimal Path (completed )
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Step 7
Step 8
Step 9
Step 10
Step 11
Step 13
Step 14
Step 15
Step 16
Step 17
Step 18
© 2008 Goldsmith
Step 12
Stage IInvestigation
Stage 2Feasibility
Commercialization Strategy
• Vision
• Product
• Marketing
• Financing
• People
• Operations
Ideally, a team effort!
Business Plan Readiness
Accelerating Commercialization
Business Plan Readiness Assessment
© 2008 Goldsmith
Executive Summary
Introduction Company History Mission Objectives
Product Description Technology Intellectual Prop Application
Marketing Competitive Analysis Distribution Channel Marketing Strategy Pricing
Management Executive Team Staffing
Financing P&L Projections Proforma Use of Funds Offering
A FundablePlan:
more than the average
plan.
Maryann’s Law: You canalways find what you’renot looking for.
Risk Readiness
Accelerating Commercialization
Miller’s Law: You can’t tell how deep a puddle is until you step in it.
IdentifyingRisk:
Fore warnedIs
Fore armed!
Risk Factors
• Product Risk
• Market Risk
• Financial Risk
• Management Risk
• Execution Risk
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