- 1. Cambridge UniversityTransferable Skill
WorkshopEntrepreneurship & Business Modelling
2. Welcome & ContentIntroduction who we areThe KED
Experience a work in progressThe Innovation AgencyEntrepreneurs
Where to start Testing the pitch (gathering intelligence) IPR or
TTM Building a teamThe Innovation AgencyBusiness ModellingKey
elements for an Investment deckCambridge University
Entrepreneurship & Business Modelling 3.
IntroductionEntrepreneurs change the world one day at a
time.Cambridge University Entrepreneurship & Business Modelling
4. Push Pull What - WHY Technology PushVersusMarket
PullPre-conceived ideas about commercialisationCambridge University
Entrepreneurship & Business Modelling 5. The KED
ExperienceEvolving PhD research to Commercialisation 6. The KED
ExperienceAt the beginning, there is nothing but problems.Why do I
even want to do something entrepreneurial?What is the product?Who
is the customer?Do I understand the customer and what they want?
(probably not)Admin issues?More pressing issues, like How am I
going to eat? Cambridge University Entrepreneurship & Business
Modelling 7. Better things to think aboutWhy am I doing what I
do?Why might other people be interested in what Im doing?Why do (or
dont) I enjoy research?What do I want from life?Crucially:What are
the motivations? the WHYS? Cambridge University Entrepreneurship
& Business Modelling 8. Attacking the problemBusiness is a lot
like academic research, it is just a different problem spaceThe
right mindset just clicks - Like research, the individual problems
can be made easily tractable.Why is the risk of depending on
yourself greater than that of depending on others?Talk to everyone,
all the time.Cambridge University Entrepreneurship & Business
Modelling 9. KEDs solutions so farKnowledge Transfer
SecondmentWorking closely with Ian (and other people that know what
theyre doing).Finding several suppliers of ultrasound kit, andthen
getting them interested.Turning the research into a tech demo which
took longer than expected.Short term contract work to keep eating.
Cambridge University Entrepreneurship & Business Modelling 10.
In generalIs there any way to draw on the expertise of others?This
is the idea behind The Innovation Agency building on the skills and
knowledge of those that have gone before.There is still a need to
plant the seed, and understand the methodology. Cambridge
University Entrepreneurship & Business Modelling 11. SummaryThe
Why? of doing anythingBuilding a Why? into a suitable How?: posing
the questionTechnologists become entrepreneurs is a big ask. In the
next section we will Introduce The Innovation Agency. Cambridge
University Entrepreneurship & Business Modelling 12.
Explanations of the participants research 2 examples focussing on
WHY 13. The Innovation Agency A brief introduction 14.
WHY?Recognising the need to help Researchers, Inventorsand
Innovators to develop their IPR without fallingdown the usual
trapsBased on an audit approach with a experienced andcritical eye
on the outcomes of the processAnswering the questions partners,
investors andcustomers will askProviding a framework to develop an
exploitation routewithout the need to become an
entrepreneurCambridge University Entrepreneurship & Business
Modelling 15. But First...... The workshopFraming the Problem
CommercialisationCambridge University Entrepreneurship &
Business Modelling 16. Business BackgroundBusiness is a lot like
Engineering, it is just a different problem spaceProblem definition
is a key part of the path tobuilding a businessThe Team aspects of
a business are absolutely crucial to the potential success of the
businessCambridge University Entrepreneurship & Business
Modelling 17. Where to StartSome Basics 18. Lets start with some
really basic questionsWhat stage is the Business at?How much effort
will it take to get it to a saleable product/service/licensable
solution?Who are your target customers?What is your product
worth?Is it protected?Seems like a lot of
questions...........Cambridge University Entrepreneurship &
Business Modelling 19. What Stage is your Business at? Early Stage
challenges The Valley of Death 20. The Funding GapCambridge
University Entrepreneurship & Business Modelling 21. Once the
gap is understood how do you get across?How determined are you?What
lengths will you go to to get your technology commercialised?Too
late for research funding?Too early for Angels?Definitely too early
for VCs?Where else can you go? Cambridge University
Entrepreneurship & Business Modelling 22. Building the pitch
23. Getting others tobelieve in youEvangelising about your
technology.There are probably few people who will get either your
vision or the capability of your technology better than you.Your
challenge is to explain it in sufficiently simple terms to excite
people about what it is, what it can do and the value in it.OK so
how do you really do this?Cambridge University Entrepreneurship
& Business Modelling 24. A believable storyA succinct message,
elevator pitch, or whatever you want to call it isimportant. If
that gets people interested then you can expand on thedescription.
Enthusiasm and Clarity are crucial. Cambridge University
Entrepreneurship & Business Modelling 25. Testing the pitch
Where? To Whom? 26. NetworkingHow many Networking groups are there
in Cambridge? General X21Clean Tech X5Entrepreneurs X5Software +
AppsMobile & Wireless Social Enterprise X1 X2X12Women X5Life
Science X1Cambridge University Entrepreneurship & Business
Modelling 27. Intellectual Property or Time to Market?A different
viewpoint 28. Everybody wants PatentsThis is an generally accepted
view from Academia, Investors, Industry Partners.WHY?Protection
from competitionSomething Tangible to own at the point of
failureKudos of filing a patentWHY Protect, does it actually help
the commercialisation efforts?Cambridge University Entrepreneurship
& Business Modelling 29. Everybody want Patents (2)Patents are
of little value if you cant sell the technologyPatents are of NO
tangible value if you dont have funds to protect themPatents come
into their own when (if) you are challenged for infringement of
someone elses patents then a patent is a component for
negotiationsCambridge University Entrepreneurship & Business
Modelling 30. Patent Wars.....Facebook had 58 patents until they
bought 1 thousandpatents from Microsoft for $550million.Microsoft
bought the pool 1 year ago from AOL for $1bnGoogle bought Motorolas
patent pool for $12.5bn in 2011Samsung, HTC, Acer, General
Dynamics, Onkyo, VelocityMicro, Wistron, & Viewsonic all pay
Microsoft forevery Android phone they make!Cambridge University
Entrepreneurship & Business Modelling 31. The Importance of a
TeamWhy outsiders believe in a Team more readilythan an individual
32. The Importance of a TeamUnderstand your own strengths and
weaknessesUnderstand your position in a businessAre you a
cornerstone?Are you the Visionary?Are you the Delivery
specialist?Are you the Financial specialist?Interesting reading:
The Beermat Entrepreneur,Mike Southern & Chris WestCambridge
University Entrepreneurship & Business Modelling 33. Finding
YouMyers Briggs Type Indicator MBTIDISC Dominance, Influence,
Steadiness, ComplianceAnd Where you fit in a team....... or at
least where your preferences areBelbin Team Role Theory Cambridge
University Entrepreneurship & Business Modelling 34. Investors
emphasise teamInvestors choose to invest on the basis of likingand
believing in the team almost as much asliking the businessTeam and
culture (company culture) are essentialto enable success Cambridge
University Entrepreneurship & Business Modelling 35. Business
Modelling 36. Introducing theBusiness Model Canvas Developed as by
Alex Osterwalderwww.businessmodelgeneration.com 37. Business Model
CanvasCambridge University Entrepreneurship & Business
Modelling 38. Intro VideoCambridge University Entrepreneurship
& Business Modelling 39. Cambridge University Entrepreneurship
& Business Modelling 40. Cambridge University Entrepreneurship
& Business Modelling 41. Guesstimates /
AssumptionsUsers/Customers Resources Number of monthly Number of
employees: 2kactive FB users: 500M (source: FB factsheet)(source:
FB factsheet) Number of servers: ??? Number of daily active CostsFB
users: 250M (source: Average salaryFB factsheet) (guesstimate):
150k Average time users(source: glassdoor.comspend on FB per FB
salaries)month: 1400 minutes HR costs: 300M-> 46
min/day(deduction)(guesstimate source: IT costs (guess):????FB
factsheet)Cambridge University Entrepreneurship & Business
Modelling 42. Guesstimates / AssumptionsRevenue Streams How could
its advertising Advertising Average revenues (e.g. banners and CPM:
$0.625 (source:text advertising breakdown) Blogpost) really be?
Annual page views: 3.12 What budgets are Fortune Trillion (source:
Blogpost) 500 companies putting into Facebook Credits: 30% Facebook
advertising? revenue cut (source: How many SMEs and micro-
TechCrunch) enterprises are usingOPEN QUESTIONS Facebook for
advertising?How high could Facebooks How much could Facebookcosts
for its IT infrastructurealready be earning from(capital
expenditure and Facebook Credits, even ifoperating costs be?this
virtual currency is still in BETA?Cambridge University
Entrepreneurship & Business Modelling 43. The WorkshopDevelop a
canvas..... 44. Get ready to pivotKey insights come from talking to
people15 minutes with a customer beats 10 hourshypothesisingBe
flexible and willing to be wrongEncourage criticism and use the
feedbackBe aware of the limits of theoretical modelsTalk to people
all the timeBe Humble Cambridge University Entrepreneurship &
Business Modelling 45. The ways the canvas gets used...Different
levels of mastery 46. Levels of MasteryLevel 0 Strategy The
Oblivious: Focus on products/valuepropositions alone rather than
the value proposition ANDthe business model.Level 1 Strategy The
Beginners: Use the Business ModelCanvas as a checklist.Level 2
Strategy The Masters: Outcompete others witha superior business
model where every one of thebusiness model building blocks
reinforce each other (e.g.Nintendo Wii, Nespresso, Dell).Level 3
Strategy The Invincible: Continuously disruptthemselves while their
business models are stillsuccessful (e.g. Apple,
Amazon.com).Cambridge University Entrepreneurship & Business
Modelling 47. The Investment DeckGetting the message across in an
engaging way 48. Hockey Sticks!Cambridge University
Entrepreneurship & Business Modelling 49. Why, How,
WhatEngagement is best gained when the WHY isexplained
first........ if you nail the WHY, theHow and What is
straightforwardInvestors are no different Why what is the
motivation, societal need,benefit that your business brings How are
you going to deliver the Why? What, in detail, are you going to do?
Cambridge University Entrepreneurship & Business Modelling 50.
What the Investors say they want to see in an investment deck 51.
The Investment DeckThe Perfect Pitch using x7 slides:Bindi Karia,
VC Emerging Business lead for Microsoft 52. The Investment Deck1)
Your Value Proposition2) The Problem3) Your Solution4) The
Marketplace5) Your Team6) Business Execution7) Business
ModelCambridge University Entrepreneurship & Business Modelling
53. The Investment Deck The Perfect Pitch using X10 slides:Guy
Kawasaki, former chief evangelistApple Inc 54. The Investment
Deck1) Problem2) Your Solution3) Business Model4) Underlying magic
technology5) Marketing and Sales6) Competition7) Team8) Projections
and milestones9) Status and timeline10)Summary and call to action
Cambridge University Entrepreneurship & Business Modelling 55.
The Investment Deck The Perfect Pitch using X13 Slides:Mark Suster,
Entreprenuer turned VC 56. The Investment Deck1) Team Bio2) 100
Meter view of your company3) Problem definition4) How do you solve
the problem: Demo?5) Market Sizing6) Warning: Market sizing
pitfalls7) Competition8) Customer Adoption Traction9) Team10)
Financial Projections11) Use of Proceeds12) Fundraising process
next steps13) Appenix Slides: Back up slides Cambridge University
Entrepreneurship & Business Modelling 57. The Investment Deck
Top ten lies of Entreprenuers 58. The Investment Deck Top ten lies
of Entreprenuers1) Our projections are conservative.2) Jupiter says
our market will be 50 billion in ten years.3) Several Fortune 500
companies are set to do business with us.4) No one else can do what
we are doing.5) Hurry up because other investors are about to do a
deal.6) The large companies in our market are too slow and too dumb
to compete.7) Our management team is proven.8) We filed patents so
our intellectual property is protected.9) Our product will go
viral.10)All we have to do is get 1% of the market. Cambridge
University Entrepreneurship & Business Modelling 59. The
Investment DeckTop ten lies of Investors 60. The Investment DeckTop
ten lies of Investors1) I liked your company, but my partners
didnt.2) We are patient investors who want to help you build a
great company.3) If you get a lead, well invest too.4) There are no
companies in our portfolio that conflict with what youre doing.5)
Show us some traction, and well invest.6) We love to co-invest with
other firms.7) Were investing in your team.8) We have lots of
bandwidth to dedicate to your company.9) This is a plain, vanilla
termsheet.10)We will get other companies in our portfolio to work
with you. Cambridge University Entrepreneurship & Business
Modelling 61. The Investment DeckQuestion:Do you know the
difference between the lies of entrepreneurs and the lies of
investors? 62. The Investment DeskAnswer:The Investors have money
63. The Innovation AgencyHelping develop your
[email protected]
[email protected]
