1. Recent Trends in Entrepreneurship Connecticut Alumni Chapter John R. “Jack” Thorne (IA’52) Emeritus Professor of Entrepreneurship Tepper School of Business at Carnegie Mellon

2. Recent Trends in Entrepreneurship Jack Thorne - Morgenthaler Emeritus Professor of Entrepreneurship at Carnegie Mellon University’s David A. Tepper School of Business Hartford Tepper Alumni Meeting – January 27, 2005

3. Update on Entrepreneurship Program 1.Management and strategy 2.Courses and programs (6 undergraduate and 10 MBA courses) 3.Cross-campus integration 4.McGinnis Venture Competition 5.Recent successful business plan competition wins 6.Ratings 7.Tepper School notes

4. Recent Trends in Entrepreneurship 1.Definition of entrepreneurship – “Insane persistence in the face of total rejection.” 2.Venture capital is coming back, but still tough for start-up companies. 3.More organized “angel” money 4.Bootstrapping is “in,” especially early. “Buy low, sell high, collect early, pay late.”

5. Recent Trends in Entrepreneurship 5.University spin-outs 6.Big company deals 7.Deals with suppliers, customers and distributors 8.Importance of key people and associates 9. Corporate intrepreneurship increasing

6. Management Lessons with Entrepreneurship 1.Test product in market fast and early. 2.Reduce risk with small $$$. 3.Prove product and selling method early. 4.Pay lots of attention to pricing/margins. 5.Move fast and spend big $$$ after proof. “No such thing as an over-capitalized company.”

7. Management Lessons with Entrepreneurship 6.Acquire the best people, directors, initial investors, advisors and professionals. 7.There are big differences in investors – build relationships early! 8.Marketing/selling usually costs more and takes longer than expected.

8. High-Potential Areas for New Ventures 1.Almost anywhere you or your partners know the market well and see demand 2.Look for an “unfair” competitive advantage. 3.Where the $$$ to evaluate potential ideas is available 4.Where there are good examples of success 5.Where the market is growing.

9. Questions and Answers

10. Tepper School Connecticut Alumni Chapter

11. Alumni by Decade

12. Alumni by State

13.  First need to organize a team of leaders to launch the chapter.  Develop a mission statement.  Survey alumni constituency in region.  Begin to organize a calendar of alumni activities. Organizing an Alumni Chapter

14.  Alumni volunteer leadership is vital  Bob Iseman (IA’75) is serving as first President  Need a team of volunteers to assist in leading the chapter  Hold regular meetings face-to-face or via conference call to organize activities Organization of the Connecticut Chapter

15. Alumni Chapter Events  Holding alumni events on a regular basis will increase alumni involvement and strengthen the chapter.  The Office of Alumni Relations will provide support for your activities including arranging for our faculty to come as speakers giving alumni access to leading–edge research.

16. Ideas for Alumni Events  Faculty Speakers:  Dr. Jeffrey Williams on “Managing When Nothing Lasts”  Dr. Lester Lave on “The Northeast Blackout and Energy Deregulation”  Dr. Tom Emerson, Art Boni or Jack Thorne on “Entrepreneurship”

17. More Ideas for Alumni Events  Alumni Panels:  Entrepreneurship – SF Bay, Boston, Pittsburgh, Seattle  Life Sciences (Biotech) – SF, Boston  Finance/Investment - NY, Pittsburgh, SF  Career Development – NY, SF, DC  High Tech and Entertainment – NY

18. Other Ideas for Alumni Events  Alumni or Industry Speakers:  Jim Swartz (IA’66) – Leading VC from Silicon Valley  CFO of Amazon.com or Pfizer or JP Morgan Chase Dina Dublon (IA’79)  Other venues for speakers may be dinners or breakfast or lunch meetings.

19. Your Role as Alumni – Become Involved  Join the chapter leadership team  Recruiting, internships and jobs  Be an ambassador in your company  Serve as an alumni speaker for student clubs  Host student corporate visits  Be a student mentor; assist with networking  Invest in the school’s future – Annual Fund

20. Thank you for attending and for all your support of your alma mater

21. Yoshiaki Fujimori – CEO, GE Asia Class of 1981 Eric Schwalm – Partner, Bain & Company Class of 1987

22. Brian Olsavsky – Vice President Amazon.com Class of 1989 Rosemary Sisson – Director BNP Paribas Class of 1983 Eric Butler – Vice President Union Pacific Class of 1986