1. BITS Spark Prospectus Ver. 8, Dec 30th, 2011

2. Background  BITSian entrepreneurs have been tremendously successful. BITS was ranked as a top school to produce entrepreneurs 1.  The new India presents today’s youth with many entrepreneurial opportunities. VC funding is robust at $750m in the last 9 months.  There are many young BITSians aspiring to start innovative companies (e.g. RedBus, GharPay, Exotel, SuperAngels)  In the last 5 years BITS-Pilani has created more than a dozen startup initiatives most notably CEL and on-campus activities  However, there is a dearth of early stage funding and mentoring  BITSAA has set a long-term goal to make BITS-Pilani a top-3 institute for entrepreneurship in Asia 1. http://www.slideshare.net/mrogati/sequencing-the-startup-dna-mrogatis-talk (Slide 10) 2. http://smehorizon.sulekha.com/vc-firms-invest-217-million-in-india-in-q3-11_sme-viewsitem_5554

3. What is BITS Spark § In July 2011, BITSAA International set a high-level objective: Create an eco-system of partners in industry, government and academia to enhance research and entrepreneurship at BITS Pilani. § BITS Spark's objective: § ENTREPRENEURSHIP § BITS Spark’s vision: § “Make BITS Pilani a top 3 institute for entrepreneurship in Asia”

4. What does a BITSian need to do a startup  Inspiration & Passion: "its unbelievably important"  Entrepreneurs who share, connect, meet with BITSians are most inspiring  Recent success stories help build confidence to take the plunge  Accessibility:  Approachability of this program and people backing should be easy  Any BITSian should be able to access  Community  A well-knit BITSian mentor network will increase student confidence  Need the ability to know whom to reach and ask any startup questions  Resources  Information on startup basics e.g. legal, funding, web hosting  Access to contacts who can provide these resources  Funding to help with the initial stages

5. Spark has 3 pillars Spark Connect On-campus and post- campus activities to ramp up startups Spark Mentors Mentoring network for formal mentoring of entrepreneurs & startups Spark Angels Angel network to fund high potential startups at seed stage

6. Spark Connect On-campus and post- campus activities to ramp up startups

7. On-Campus Activities – Immediate Priority § On-campus Faculty Chair  Dedicated faculty member to support and drive new initiatives  Works closely with BITSAA Spark Board member § New Venture Creation  Make it a formalized course on all campuses  Assign dedicated faculty and student CEL members § PS I, II and Summer (after 1 st /3 rd year) Internships  Create an insti-led program for startups to hire summer interns in all summer terms  Create executive assistant opportunities at startups Spark Connect

8. On-Campus Activities – Ongoing § Entrepreneurship courses  Mandatory activity based course in year 2  Industry-led courses (e.g. mobile Internet startup courses) § Recognition  Create annual entrepreneurship award  Awarded to someone who best exemplifies entrepreneurial traits § Online resources  Detailed and curated resources to start a company in India  List of contacts (lawyers, mentors, entrepreneurs, investors, etc.) § On-Campus CEL  Expand CEL to encourage more participation  Improve structure, awareness, stature of Goa and Hyd CEL  Create on-campus and post-campus hackathon Spark Connect

9. Post-Campus Activities § Current BITSAA CEL activities  Continue on-going BITSAA CEL activities  Abandon BITSAA CEL structure § Access to funding (more in Spark Angels) 1  Setup non-bureaucratic fund to give "confidence money” to pre-seed startups  Includes Manoj Saxena fund, BITS 75 trust etc.  Raise small pre-seed amounts from several investors § Startup Workshops (more in Spark Mentors)  In-depth weekend workshops to match startups with dedicated mentors  Conducted once a quarter and sequenced before Spark Angels review meeting Spark Connect 1. Seed stage startups will be served by Spark Angels

10. Post-Campus Activities § Bits2startup  Well managed email group (similar to bits2bschool), identify key entrepreneur contributors  Help to find talent, one-off startup questions, advice § Startup Meetups  Informal meetings for startups  Start in Bangalore, Delhi, Mumbai, Hyderabad; solicit BITSian entrepreneurs  Assist in discovering co-workers/founders/customers Spark Connect 1. Seed stage startups will be served by Spark Angels

11. Spark Mentors Mentoring network for formal mentoring of entrepreneurs & startups

12. Objective  Create a BITSAA mentoring network  Create formal mentor-mentee matching program  Provide mentoring to BITSian startups 1 1. Startups in pre-seed, seed, early stages are eligible Spark Mentors

13. Criteria for Mentors  Interested in promoting BITSian entrepreneurs  Should be a BITSian  Willing to commit minimum of x hours per month  Engages deeply with the entrepreneur for a min period of 6 (?) months  Brings unique industry or operational expertise  Able/willing to coach the entrepreneur Spark Mentors

14. Criteria for Startups  Includes at least one current or graduated BITSian  Startup should be based in India  Can be in pre-seed, seed or early stage  Is already funded or seeking funding in next 6 months  Willing to give nominal (0.5 – 3%) equity to mentor  Entrepreneurs should be pursuing startup full-time or will become full-time in next 6 months Spark Mentors

15. BITSAA Spark Workshop Spark Mentors  Objective: Match startups with mentors with a formal relationship  Application proces: 7-8 slides for application  Quarterly 2-day event to match startups with mentors  1 st event: Mar 3rd - 4th  Day 1 (6 hours):  1 hour: Selected teams pitch in 8 minutes  1 hour: Mentor-mentee speed dating  1 hour: Each startup matched assigned to 3 mentors  1 hour: Market review: 1-1 mentoring session  1 hour: Product review: 1-1 mentoring session  1 hour: Business review: 1-1 mentoring session  Day 2 (6 hours):  TBD

16. Spark Angels Angel network to fund high potential startups at seed stage

17. Objective  Create a BITSAA angel group of investors  Invest in BITSian startups 1 based in India  Provide mentoring to funded startups 1. Applies to both on-campus and graduated BITSians Spark Angels

18. Criteria for Angels  Interested in promoting BITSian entrepreneurs  Should be a BITSian; non-BITSians only by invitation  Willing to take risk  Expected to make 1-2 investments a year  Typical investments upwards of INR 5 lakh  Should be accredited as per Indian laws  Pay small annual membership (waived first 6 months) Spark Angels

19. Criteria for Startups  Includes at least one current or graduated BITSian  Startup should be based in India  Demonstrate potential for substantial high growth  Should be in seed & angel stage (INR 25 lakh – 2 crore)  Selection rate will be about 3-5%  Entrepreneurs should be pursuing the startup full-time at the time of application Spark Angels

20. Funding Process StageActivityTimelinePeopleModality 1 Application cut-off date; Online screening 1 week before Step 2 All angels & managed by moderator Gust 2 Screening meeting Steering Committee 1 week before Step 3 8 angels; up to 6 startups Skype & Dial-in 3Spark Angel meetingOnce every 3 months All angels; up to 3 startups Skype & Dial-in 4Due diligence & funding Completes 1 month after step 3 Investing angels & 1 SC member As necessary including f2f Proposed date to complete first cycle: Apr 18 th, 2012 Spark Angels

21. Logistics  Step 1:  Online applications are submitted to Gust or equivalent software.  Video pitch of 5 min to be submitted online (YouTube or equivalent).  Step 2: 10 min per team  Steering committee to conduct screening over Skype & phone call  5 min: View video pitch on individual computers  5 min: Q&A with startups  Collect feedback; create shortlist for Step 3  Step 3: 20 min per team  All angels to conduct screening over Skype & phone call  5 min: View video pitch on individual computers  10 min: Startup is allowed to add further info; Q&A  Collect interest level using online survey Spark Angels

22. Due diligence process  Team:  1 lead angel – drives the due diligence process  Other interested angels – participate in due diligence  1 steering committee member  If no steering committee is investing, a neutral member joins the team  Due diligence duration: 1 month  Submit Diligence Report (approx. 3 weeks)  Include team, market, technology, legal, funding etc.  Transfer of funds and legal (approx. 1 week) Spark Angels

23. Transparent Process  Investment terms to be determined directly between angels and startup (amount to be shared, terms remain undisclosed)  Membership fees will cover admin costs (waived initially)  Transparency  All startup applicants will be made available online  Results of each evaluation stage will be made public  All angels should disclose prior relationships with startup  Any other aspect will be made transparent  BITSAA team (non-angels) to drive administration Spark Angels