invention to venture next week monday- –corporate technology commercialization (tom lindner)...

Invention to Venture

Next Week

• Monday- – Corporate Technology Commercialization (Tom Lindner)

– Developing A Financial Plan- Costs, Revenue, and Break even

• Wed-• Check in with JT (schedule 1/2 hour with each team)

• Sources of Venture Financing

• Team Work Session

Project and Financial Plan due Friday at midnight


Communicating and Selling your Idea

Business PlanExecutive Summary

Slide Show

© 2005 NCIIA and Grayhead Associates All Rights Reserved


Business Plan

• An ~20 page document that acts as:– An internal road map or guide– An external sales tool for investors, future team

members, or potential partners/customers

• Different versions for different audiences• A living document, changing as you learn• Be careful what you put in it


A typical business plan outline

• Problem or Need• Your Solution• Technology and IP• Size of Opportunity/Market• Customers and how you will reach them• Competition• Business Model- position in the value chain• Team- Needed Skills & Staffing Plan• Operations and Development Plan• Financial Needs & Funding Plan• Exit Strategy• Appendices


Problem and solution sections

• What problem will you solve?• What need will you fill?• What pain will you alleviate?• In broad non-technical terms,

explain how you will solve the problem and what is special about your solution.


Technology and IP section

• Provides more detail about your technology

• Describes the status of IP protection

• Does not discuss proprietary or confidential technical information


Size of opportunity/market section

• Describes market • Identifies customers and explains

how you will reach them– Who they are– How you’ll get to the pragmatists– Why they will buy…from you?– What channels will you use and when


Competition section

• Same technology as competitors, or different?

• Does industry exist, or are you starting a new one?

• Is competition domestic or foreign?• Measurable ways that customer will

perceive your solution as better, faster, or cheaper

• Strengths and weaknesses of major players (be honest!)


Business model and position in the value chain

• How will you make a profit, and when?• Who are your suppliers and customers? • Advantages to this position in the value

chain• Risks and how you will deal with them


Development and Operations

• What time is required to develop, test, refine, market, and distribute your product?

• What competencies will you develop yourself and where will you rely upon partners and suppliers?

• What physical facilities, staffing, capital equipment and expendables will you need


Team, financial, and exit strategy

• Team – Founders/Management– Directors, Advisors, Consultants– Overall staffing plan for the first several years

• Financial– How much money and when– Use of money– Time to break even/profit

• Exit Strategy– Acquisition/merger– Initial Public Offering(IPO)


Be sure the team is on board

• Understands and believes in the plan• Demonstrates

– Passion– Knowledge of the technology and key non-

technical factors

• Is comfortable being questioned, and has back-up data available

Before you start talking to investors, make sure the entire management team:


Executive Summary

• An ~2 page document that summarizes the main points of the business plan (BP)– Included at the front of the BP– Often used as a stand-alone

document• A powerful selling tool, it may be

your only chance to catch an investor’s attention


The slide show• A brief (12-15 minutes), punchy

presentation• Tells your story clearly and

succinctly• Speaks the language of your

audience• A supplement to, not a substitute

for, the business plan


Slide show tips• Learn about audience and tailor to their

interests • Rehearse: role play with mentors and ask

for feedback• Prepare answers to likely questions in

advance• Don’t hand out the hardcopy until you

are finished. • Look directly at the audience, not at the

screen behind you


More slide show tips• Prepare for technical glitches• Speak clearly and slowly• Answer questions honestly--If you don’t

know say so and tell them you’ll find out• Plan for multiple presenters, but other

team members can answer questions• Don’t be defensive, but don’t allow

people to steamroll you


Review of the elements for communicating your idea

• Business plan • Executive summary• Slide show • Elevator pitch

invention to venture next week monday- –corporate technology commercialization (tom lindner)...

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