DRAPER BUSINESS PLAN COMPETITION

Transcription

1 DRAPER BUSINESS PLAN COMPETITION October 15, 2012 Deborah A. Farrington StarVest Partners

2 Goal: INTEREST EXCITE INSPIRE EDUCATE To: Participate in THE DRAPER BUSINESS PLAN CONTEST! 2

3 Why: Being an entrepreneur is: Charting your own Course/Setting your own Schedule Fascinating, Fun, Frightening, Frustrating and Fantastic! The Business plan provides a framework to articulate, test, execute and Channel your creativity Put your ideas into action Have an impact on something you care about 3

4 Gordon MacKenzie

5 Thank you Drapers! Bill Draper Tim Draper Jesse Draper 5

6 TODAY: Venture Capital invest in entrepreneurs and new businesses StarVest Partners, LP founded 1998 The Largest Women Owned VC Firm in the US $1/2 Billion under management Focus: B2B Technology Enabled Business Services (not Facebook or Zynga but companies that sell to businesses) We are looking to develop more women VCs! 6

7 Credentials & Training Smith College: 1972 Economics & Art History Chase Manhattan Bank: Global Credit Training Program Harvard Business School: Class of 1976 Experience: The next new thing Investment Banking: Vice President & Director Merrill Lynch NYC, Hong Kong, Tokyo Merchant Banking: Managing Director Asian Oceanic Group NYC, Hong Kong Venture Capital: CEO Victory Ventures NYC

8 I wanted Independence I wanted to be a Pioneer Finance Then Entrepreneurship Now Ensure this generation embraces entrepreneurship. It took me 20 years Technology + Opportunity It can take you 20 months! 8

9 Tom Peters

10 What frustrates you? Does it frustrate others? Have you helped someone solve their problem? Can you do it faster, better, cheaper? Can you use technology in a new/different way? What are you passionate about? 10

11 Inc. Magazine Annual Issue: America s Coolest College Start ups Recent Winners: Education Getting a job Consumer smsprep GenJuice Sole Bikes Princeton UC Berkley UCLA Socially responsible venture PoverUP UPenn 11

12 SmsPREP: Text messages that teach Need: His sister, a college student, needed help with organic chemistry. He texted her answers. Market Research: Other college students Product: Answers to SAT, ACT, GRE questions via text message to users' phones. Students receive study questions at a time convenient for them. Unlimited questions. Customer: College students, 100 a day signing up Go to Market: Viral How they make money: Subscription of $19.99 a month 12

13 GenJuice: Empowering young adults to innovate Need: Helping students find internships in the start-up world: InternshipIN was born Market Research: A road-trip hosting un-conferences in 13 cities on youth innovation Product: Online media content company: news and entertainment for people who want to innovate and make an impact (it evolved!) Customer: People ages 18 to 34 Go to Market: Viral; 75,000 attendees from conferences How they make money: Online Ad revenue, Tour sponsorships, Projects 13

14 Sole Bikes: Fixed Gear Bikes to the Masses Need/Want: A $1,000 fixed gear bike - they couldn t afford; found a cheaper way Market Research: Contacted manufacturers all over the world; Cheapest source found in China. Product: Designed a proto- type; sold fixies retail for $310 Customer: College students and others who want affordable fixed gear bikes Go to Market: Word of mouth; Gilt Group flash sales, online sales How they make money: Margin! Sell them for more than they buy them for. 14

15 PoverUP: Microfinance platform to reach thousands of students Need: Most poor people don t have access to financial svcs. College students want to help. Market Research: Attended microfinance conferences; researched ways to create a microfinance platform to reach & educate thousands of students. Product: Platform that partners with established micro-finance institutions like Grameen USA and ProMujer in Latin America. Donate as little as $5. Customer: College students who want to help the world s poor through microfinance. Go to market: Satellite groups on 500 college campuses in the next 5 years How they make money: No business model yet (transactional? a sliver of each donation?) 15

16 Customer Need Market Research Product Customer Identification Go to Market How to Make Money Define Validation/Competition What does it do? Who? How to reach them Price/Revenue Cost = Profit 16

17 Thomas A. Edison (He failed a lot!)

18 You are thinking about your problems and are going to come up with an idea To Start : the Business Plan - a framework for your idea: concise and compelling Relevant Experience? Use the tools you have! Be a magnet: Seek people with expertise, identify a mentor, create your own personal board of directors Make it work Continue to iterate 18

19 Product. Does it satisfy the needs of your target customer? Price. How much will people pay? Place. Where will you sell it? Can customers find it? Promotion. How do you inform and promote? 19

20 Plan Name: People Opportunity Context Risk/Reward Management Funding Summary The team has (or can get) relevant skills, contacts, and experience The customer can be identified, reached and retained. There is evidence that the business model is attractive in terms of potential margins, cash flow and value creation. The rules of the game (I.e. regulatory, tax, political) are favorable. Actual and potential competition is identified and manageable. Ways to manage upside and downside have been considered and put in place. Is the funding plan sensible in terms of amount to start and growth plan. This team and plan have reasonable likelihood of success. One Five False True 20

21 Jump Start Your Entrepreneurial Creativity "What is the Big Idea" Young Entrepreneurship Conference Crafting an Elevator Pitch "How to Pitch Your Big Idea" One-Week Courses on Innovation & Entrepreneurship "Introduction to Entrepreneurship" "Innovation & Entrepreneurship" Business Plan Development & Mentoring Workshop Draper Business Plan Competition Awards $20,000 Awarded by Tim Draper October 29 November 7 November 13 January 7-11 January Mondays: February, March, April Mid-April 21

22 Mary Kay Ash, founder of Mary Kay Cosmetics