(Team F)Academic Competition Tools and Advanced Candidate

Screening Investment Management Firms

Jigar Patel Andrew Weisgall Atin Garg Yezhuo Li Zak Schwarzman

Day 1Pre-Class Day 2 Day 3 Day 4

Survey:16 Recruiters9 Candidates

Interviews: 6 Recruiters

Interviews: 9 Recruiters

Interviews: 7 Recruiters6 Candidates

Total Interviews: 42

Interviews: 5 Recruiters9 Candidates

Day 1

Front-office candidates that are seeking jobs in Financial Services

-Financial Institutions-Executive search firms (headhunters)

Hedge Fund,Mutual Fund,Sell-side Research,Investment Banking,Financial Advisory Firms,Pension/Insurance Funds,Family Offices,Endowment Funds,Private Equity,Venture Capital

-Ability to proactively distinguish themselves from the competition-Showcase their portfolio and track performance-Automated job matching (saves time by not having to search/apply for jobs)

-Better evaluation of candidates (based on meritocracy vs. brand)-Deeper insight into candidates' investment search/thought process-Cost-efficient solution (headhunters charge 50k+ per hire)-Save time through automated matching (employers only need to post a job description)

-Student clubs and university career centers-Online communities-Educational sites/blogs

-Sales force-Industry Conferences

-Co-creation (candidates create content on site)-Automated self-service-Community/Network

-Dedicated personal assistance (initially) -Self-service (in long run)

-Freemium (job analytics; stats on other candidates)

-Tiered subscription fee (recurring)-Commission Fee (per successful hire)

-Intellectual (matching algorithm)-Human (sales force, developers, engineers)-Quality of candidates-Quantity of jobs available

-Platform (candidate engagement on the site)-Matchmaking (data mining/parsing, NLP)-Candidate Ranking (portfolio performance)

-Training courses(TrainingTheStreets)-Industry trade groups (i.e. CFA)-Executive search firms (provide fit/personality assessment, complements our technical assessment)-LinkedIn (extract user profile data)-Virtual trading platforms (i.e. Covestor, Estimize)-eFinancialCareers and other job board sites

Fixed: -Website hosting & maintenance -Salaries (developer)

Variable: -Sales force commission

Takeaways (Day 1)• CS: Narrowed focus of financial firms• CS: Added Educational Institution as a new customer• RS: Can’t charge students/candidates to use the system• RS: Subscription model for large firms and headhunters• RS: Commission fee for small firms w/ ad hoc hiring• RS: Firms would pay for a product that made

screening/filtering candidates faster and more accurate• VP: ~100% of fundamental hedge funds use stock pitches to

evaluate candidates• VP: Thought process behind a stock pitch > Performance• New Tests: Stock pitch competitions / application platform

Day 2

Front-office candidates that are seeking jobs in Financial Services

-Financial Institutions-Executive search firms (headhunters)Hedge Fund,Mutual Fund,Sell-side Research,Investment Banking,Financial Advisory Firms,Pension/Insurance Funds,Family Offices,Endowment Funds,Private Equity,Venture Capital

-proactively distinguish themselves from the competition-Showcase their portfolio and track performance-Automated job matching (saves time)-Greater access

-Better evaluation-Deeper insight earlier in the interview process-Cost-efficient -Save time -Surfaces non- traditional hires-Eliminates unqualified candidates

-Student clubs and university career centers-Online communities-Educational sites/blogs-Virtual Competitions

-Sales force-Industry Conferences

-Co-creation (candidates create content on site)-Automated self-service-Community/Network

-Dedicated personal assistance (initially) -Self-service (in long run)

-Freemium (job analytics; stats on other candidates)

-Tiered subscription fee (recurring)-Commission Fee (per successful hire)

-Intellectual -sales force-engineers-candidates-available jobs-Relationships

-Platform (candidate engagement on the site)-Matchmaking -Candidate Ranking

-Training courses-Industry trade groups -Executive search firms -LinkedIn -Virtual trading platforms (i.e. Covestor, Estimize)-eFinancialCareers and other job board sites-Yahoo! Finance

Fixed: -Website hosting & maintenance -Salaries (developer)

Variable: -Sales force commission

-Customer referrals-Direct targeting

-Cross promotions

Educational Institutions

Affiliate Marketing

Takeaways (Day 2)• Hypothesis:

– Firms would recruit investment professionals using an online platform– They would find automatic matching and ranking valuable

• Experiments: – Interviewed (and surveyed) portfolio managers, analysts, and head of recruiting at investment

firms as well as Executive Search Firms• Results:

– Only active job seekers will contribute content; better candidates already employed– Insight into investment approach more valuable than portfolio performance– Firms skeptical in the matchmaking ability; but consider manual search a pain point– Most firms only target top schools/firms; some find it sufficient, others feel that candidates are

not well prepared or arrogant– Online tool not useful for hiring experienced candidates (mostly relationship driven)

• Iterate:– Is a virtual pitch competition platform more valuable?

• Will it produce better candidates? • Will it provide more granular evaluation criteria (qualitative data on candidate’s thought process and ability to pitch a

stock)?

– Is a video pitch more valuable than written pitch?

Day 3

Universities / student organizations

Investment firmsExecutive Search Firms

Students / Candidates

-Management of investment ideas-Standout from crowd / matching-Saves time

-Crowd-sourced investment ideas-Access to qualified candidates-Deeper insight -Mgmt of investment pitch competition-Automated filtering

-Mgmt / organization for competitions-Help promote students

Subscription / license Freemium

Subscription / licenseCommission

Fixed: -Website hosting & maintenance -Salaries (developer)-Video service

Variable: -Sales & marketing

-Sales force-Industry conferences-Site participants

-Training courses-Industry trade groups-Executive search firms-LinkedIn-Yahoo! Finance-Universities / student organizations-Video service

-Intellectual (algo)-Sales force & engineers-Participants-Job listings-Relationships-Competitions

-Online platform -Matchmaking -Candidate Ranking-Competition mgmt-Granular evaluation of content-Candidate filtering

-Sales force-Web or email

-Web or email

-Personal assistance

-Personal assistance

-Co-creation (candidates create content on site)-Automated self-service-Community/Network-Platform

Educational Institutions

Affiliate marketing

-Cross promotions

-Customer referrals-Direct targeting

Takeaways (Day 3)• Hypothesis:

– There is demand for an online competition management system among b-schools– Investment firms want pitch data on student pitches for recruiting and investment

decisions– Investment firms want short videos of student pitches for recruiting

• Experiments: – Interviewed portfolio managers, analysts, and head of recruiting at investment firms– Interviewed student club presidents at top 10 business schools

• Results:– There is clear demand for an online competition management system from students– Investment firms find student pitches and videos useful for recruiting– Firms skeptical about the value of crowd sourced pitch data

• Iterate:– Reach out to school administrators and student club presidents– Reach out to non-investment focused clubs/organizations

Day 4

Universities / student organizations

Investment firmsExecutive Search Firms

Students / Candidates

-Management of investment ideas-Standout from crowd / matching-Integrate recruitment and pitches competition-Pitch archive

-Crowd-sourced investment ideas-Access to qualified candidates-Deeper insight -Mgmt of investment pitch competitions

-Mgmt / organization for competitions-Help promote students

Subscription / license Freemium

Subscription / license

Fixed: -Website hosting & maintenance -Salaries (developer)-Video service

Variable: -Sales & marketing

-Sales force-Site participants

-Industry trade groups-LinkedIn-Yahoo! Finance-Universities / student organizations-Video service-Investment firms

-Intellectual: algo & data-Sales force & engineers-Participants-Relationships-Competitions-Judges

-Online platform -Competition mgmt-Granular evaluation of content-Candidate filtering

-Sales force-Web

-Web

-Personal assistance

-Personal assistance

-Co-creation (candidates create content on site)-Automated self-service-Platform

Takeaways (Day 4)• Hypothesis:

– The competition platform can be applied to other verticals, not just finance– Organizers want better competition management system

• Experiments: – Talk to recruiters at various firms– Talk to student club presidents and competition organizers to see if they’d use it

• Results:– No student clubs use online competition systems – most people use email– Club presidents would love to have a management tool– Participants might be concerned about using their data for recruiting– Video pitches might be useful but not necessary

• Iterate:– Keep on truckin’– Stay hungry, stay foolish!

Day 5

Universities / student organizations

Investment Financial firmsExecutive Search FirmsConsulting FirmsLaw Firms

Students / Candidates

-Management of investment ideas competition content-Standout from crowd-Integrate recruitment and pitch competition-Pitch Content archive

-Target relevant candidates-Access to qualified candidates-Deeper insight -Mgmt of investment pitch competitions

-Mgmt / organization for competitions-Help promote students

Subscription / license Freemium

Subscription / license

Fixed: -Website hosting & maintenance -Web Development-Salaries (developer)-Video service

Variable: -Sales & marketing

-Sales force-Site participants

-Industry trade groups-LinkedIn-Yahoo! Finance-Universities / student organizations-Video service-Investment firms

-Intellectual: algo & data-Sales force & engineers-Participants-Relationships-Competitions-Judges

-Online platform -Competition mgmt-Granular evaluation of content-Candidate filtering

-Sales force-Web

-Web

-Personal assistance

-Personal assistance

-Co-creation (candidates create content on site)-Automated self-service-Platform

Students

Universities Competition Platform

Student Clubs

CandidateData

Employers

Ecosystem

Channels

Social Commerce

DedicatedE-Commerce

Direct Sales

Students (Freemium)

Universities (up to $25K / year)

Student Clubs ( up to $1000 / year)

Financial Firms ($50K / Year or $10K / hire)

Consulting Firms ($50K / Year or $10K / hire)

Company Description Competition Mgmt? Hiring? Finance Focus? White Label?

Influential Investor Academic competition management and recruitment platform.

Wizehive Competition software for branded web contests.

Skild Software service to run awards, prizes and contest promotions.

ChallengePost ChallengePost allows organizations to challenge the public to solve big problems through competitions.

Monster Leading job posting site

LinkedIn Professional social network

eFinancialCareers Job posting site targeting finance industry.

Skipso Solutions Versatile contest management tool.

SumZero Database of professionally-submitted investment ideas with a recruitment platform on top.

OneWire Finance-focused recruitment platform.

Bloomberg Finance news and job board.

ValueInvestorsClub A investment idea community.

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Competitive Landscape

Archetype

John Jane

Industry MBA student Finance

Title Investment Management Club President Hedge Fund Portfolio Manager

Age 29 38

Sex Male Female

Income $0 $1,400,000

Motivation -Wants a job at a hedge fund after graduation-Is extremely busy and wants software to run a pitch competition for his club

-Wants a new investment analyst -Is tired of interviewing students that look good on paper but don’t have great investment ideas-is willing to sponsor a competition to find the best candidates

Market Size

Total Available Market• # of entry level finance hires in

U.S. per year * cost per hire

Served Available Market• MBAs as % of entry level

finance * TAM

Target Market• Assumption: Top 100 Business

Schools

$15 billion

$6 billion

$1 billion

Demo

www.InfluentialInvestor.com