1. 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

2. Invention to Venture Communicating and Selling your Idea Business Plan Executive Summary Slide Show © 2005 NCIIA and Grayhead Associates All Rights Reserved

3. Invention to Venture 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

4. Invention to Venture 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

5. Invention to Venture 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.

6. Invention to Venture Technology and IP section Provides more detail about your technology Describes the status of IP protection Does not discuss proprietary or confidential technical information

7. Invention to Venture 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

8. Invention to Venture 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!)

9. Invention to Venture 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

10. Invention to Venture 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

11. Invention to Venture 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)

12. Invention to Venture 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:

13. Invention to Venture 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

14. Invention to Venture 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

15. Invention to Venture 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, n ot at the screen behind you

16. Invention to Venture 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

17. Invention to Venture Review of the elements for communicating your idea Business plan Executive summary Slide show Elevator pitch

18. Invention to Venture