A Framework for Evaluating Start-Ups
Transcript of A Framework for Evaluating Start-Ups
國立臺灣大學
工商管理學系暨商學研究所110 1 MBA 7082
W3
10.18.2021
A Framework for Evaluating Start-Ups
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教師 陳玠甫教授助教 龔萬家助教 李彥欣
新創事業投資評估New Venture Investment Evaluat ion
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• L1: 經營策略 : 欲解決問題與解決方案,目標市場潛力,產品或服務可
行性分析
• L2: Background Information regarding to Cell Therapy (細胞治療)
共同講師:台灣生物產業協會秘書長林治華博士
• L3: Cases Study : 實際案例講解:
新原生細胞製備股份有限公司(生技製藥)TCPC (Taiwan Cell
Processing Company)
Today’s Agenda
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Introduction to the Course Schedule
4
Subject & Schedule
W1 09/27 課程與投資分析報告模版介紹
W2 10/4 課程主題:創投基金與投資管理
講者:陳玠甫教授
W3 10/11 放假
Module 1. 經營策略 : 欲解決問題與解決方案,目標市場潛力,產品或服務可行性分析
W4 10/18 經營策略分析
Project 1. 實際案例講解:新原生細胞製備股份有限公司(生技製藥)
TCPC (Taiwan Cell Processing Company)共同講師:台灣生物產業協會秘書長林治華博士
W5 10/25 目標市場潛力,產品或服務可行性分析
專題演講講者:台新創投林宇聲總經理
W6 11/01 投資評估分析
--投資評估分析項目1~3
5
Subject & Schedule
Module 2. 競爭策略 : 差異化與進入障礙分析,市場進入途徑,營銷增長策略
W7 11/08 競爭策略分析
Project 2. 實際案例講解:INGENTA INC.(人工智慧)
共同講師:INGENTA INC.林志川資深副總 -2007年畢業,台大國企系
Mr. Chih-Chuan Lin, SVP, Business Dev. @JP
W8 11/15 期中考(不上課)
W9 11/22 差異化與進入障礙分析,市場進入途徑,營銷增長策略
專題演講講者:KPMG 稅務投資部資深顧問孫欣律師
W10 11/29 投資評估分析
--投資評估分析項目1~6
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Subject & Schedule
Module 3. 執行策略 : 經營團隊能力分析,財務預測,重要發展里程碑預測
W11 12/06 執行策略分析
Project 3. 實際案例講解:師子王藝術分享公司(訂閱經濟)共同講師:師子王藝術分享公司執行董事:許和捷教授
W12 12/13 經營團隊能力分析,財務預測,重要發展里程碑預測
專題演講講者:鼎碩聯合會計師事務所台北分所主持吳章秀會計師
W13 12/20 投資評估分析
--投資評估分析項目1~9
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Subject & Schedule
Module 4. 投資策略 : 投資條款建議,投資獲利評估
W14 12/27 投資策略分析
Project 4. 實際案例講解:跨境電商與供應鏈金融公司(金融科技)共同講師:安碩風險科技有限公司許傑貴董事長
W15 01/03 課程總結與評論:
講者:陳玠甫教授
W16 01/10 期末考週
W17 01/17 教師彈性上課
W18 01/24 教師彈性上課
結構式新創事業投資評估8
1.0 Executive Summary
2.0 Market Analysis
Industry
The Customer
3.0 The company
The products
Product Benefits
Competition
Entry and Growth Strategy
4.0 The Marketing Plan
Target Market Strategy
Product Strategy
Pricing Strategy
Distribution Strategy
Advertising and Promotion
Sales Forecast
5.0 Operations Plan
Ongoing Operation Plan
Geographic Location
Facilities and Improvements
Development Strategy
6.0 Team
7.0 The Financial Plan
Gross and Operating Margin
Profit Potential and Durability
The Balance Sheet
8.0 The Offering
Part 1. Part 2. Part 3.
Business Plan Contents
Company
Issue
Market(Segmentation)
Product/Service
Marketing Plan(Market Approach)
Operations Plan(Growth Strategy)
$
$
$
$
Market Research Insights
Global market for smart transportation systems
http://www.marketsandmarketsblog.com/smart-transportation-market-3.html
Financial Forecast(Cashflow & Milestones)
Management $Funding Sought &
Exit Strategy
IPOReturn : IRR
Shares structure
Structural analysis to a Business Opportunity
1. Company Introduction(公司簡介,欲解決問題與解決方案)
2. Market(目標市場潛力分析)
3. Technology, Service or Product(技術,服務或產品可行性分析)
4. What makes you superior to the competition: Barriers
(差異化與進入障礙分析)
5. Market Approach(市場進入途徑)
6. Operations : Business Growth Strategy(營銷增長策略)
7. Management(經營團隊能力分析)
8. Financial Projections(財務預測)
9. Milestones(重要里程碑預測)
10. Funding Sought and Exit Strategy(投資條款建議,投資獲利評估)
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投資分析報告模板(Investment Proposal Template)
Module 1
Module 2
Module 3
Module 4
經營策略
競爭策略
執行策略
投資策略
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Co
mp
etitive Ad
vantage Strategies
Module 2
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Co
mp
etitive Ad
vantage Strategies
Module 2
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Co
mp
etitive Ad
vantage Strategies
Module 2
Market D
evelop
men
t
Strategies
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Module 2
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Module 2
Introduction of Venture Investment
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18
Distressed Debt
MutualFund
Co
mp
an
y V
alu
ati
on
Angel Round Company Maturity StagesSeed Round VC A/B/C Round After IPO
3F
Angel Investors
Growth Capital
Early Stage Expansion Stage Maturity Stage Decline Stage
N e w Ve n t u r e C r e a t i o n a n d I n v e s t m e n t
Transformation for second growth curve
IPO UnlistedBreak Even Bankruptcy
Venture Capital
PrivateEquity
Start-up
CVC
UVC
LBO
MBO
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Distressed Debt
MutualFund
Co
mp
an
y V
alu
ati
on
Angel Round Company Maturity StagesSeed Round VC A/B/C Round After IPO
3F
Angel Investors
Growth Capital
Early Stage Expansion Stage Maturity Stage Decline Stage
N e w Ve n t u r e C r e a t i o n a n d I n v e s t m e n t
Transformation for second growth curve
IPO UnlistedBreak Even Bankruptcy
Venture Capital
PrivateEquity
Start-up
CVC
UVC
Seed Round LBO
MBO
20
Distressed Debt
MutualFund
Co
mp
an
y V
alu
ati
on
Angel Round Company Maturity StagesSeed Round VC A/B/C Round After IPO
3F
Angel Investors
Growth Capital
Early Stage Expansion Stage Maturity Stage Decline Stage
N e w Ve n t u r e C r e a t i o n a n d I n v e s t m e n t
Transformation for second growth curve
IPO UnlistedBreak Even Bankruptcy
Venture Capital
PrivateEquity
Start-up
CVC
UVC
Seed Round
Angel Round LBO
MBO
21
Distressed Debt
MutualFund
Co
mp
an
y V
alu
ati
on
Angel Round Company Maturity StagesSeed Round VC A/B/C Round After IPO
3F
Angel Investors
Growth Capital
Early Stage Expansion Stage Maturity Stage Decline Stage
N e w Ve n t u r e C r e a t i o n a n d I n v e s t m e n t
Transformation for second growth curve
IPO UnlistedBreak Even Bankruptcy
Venture Capital
PrivateEquity
Start-up
CVC
UVC
Seed Round
Angel Round LBO
MBO
A, B, C Round
Funnel Management Process
Pipeline Management Process
New
Inve
stm
en
t Op
po
rtun
ities
Ne
w
Serv
ice
s o
r Tec
hn
olo
gie
s
Process Definition of Strategy InvestmentC
om
pa
ny
Va
lua
tio
n
Angel Round Company Maturity StagesSeed Round VC A/B/C Round After IPO
23
Co
mp
an
y V
alu
ati
on
Angel Round Company Maturity StagesSeed Round VC A/B/C Round After IPO
Early Stage Expansion Stage Maturity Stage Decline Stage
N e w Ve n t u r e C r e a t i o n a n d I n v e s t m e n t
IPO
Pipeline Management Process
Start-up
Seed Round
Angel Round
A, B, C Round
Funding Sought and Exit Strategy
Proof of Concept1
Proof of Service2
Proof of Business3
Funding Sought and Exit Strategy
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種子輪: 3F (Friends, Family and Fools)
新創事業投資評估New Venture Investment Eva luat io n
27
Funding Sought and Exit Strategy
Seed RoundNTD$1M
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天使輪: 天使投資人、孵化器、加速器(Angel Investor)(Incubator)(Accelerator)
新創事業投資評估New Venture Investment Eva luat io n
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Funding Sought and Exit Strategy
Angel RoundNTD$30M
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A輪: VC (Venture Capital)
新創事業投資評估New Venture Investment Eva luat io n
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Funding Sought and Exit Strategy
A RoundNTD$300M
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B輪: VC (Venture Capital)
新創事業投資評估New Venture Investment Eva luat io n
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Funding Sought and Exit Strategy
B RoundNTD$1B
34
C輪: VC (Venture Capital)
新創事業投資評估New Venture Investment Eva luat io n
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Funding Sought and Exit Strategy
C RoundNTD$3B
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Taiwan Venture Capital Association
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Taiwan Venture Capital Association
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(出處)由台杉投資《產業創新投資白皮書2020》 、 《台灣創業投資年鑑2018 》 、台灣經濟研究院「FINDIT」資料,瑞穗銀行台北分行製作
台灣新創企業的特徴是「傾向與大企業合作」
44%
39((※)比率超過100%的原因為,一家新創企業的獲頭來源可能有不同種管道資料來源:中華民国創業投資商業同業公會統計(2018年)、台灣經濟研究院「FINDIT」,瑞穗銀行台北分行製作
投資台灣新創企業最大宗的是CVC
40
• Corporate venture capitalism is a newer investmentapproach that is largely based on lessons learnedfrom traditional venture capitalism.
• This method is utilized by corporations to investfunds directly into external start-up companies, andmuch like traditional venture capitalism, can trace itsroots back to the early 1900s.
Nejatian, Kia. Corporate Venture Capital (p. 4). Kindle Edition.
CORPORATE VENTURE CAPITAL
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創新轉型
公司治理
傳承經營 財務獲利企業創投
公司創設企業創投面臨的四大影響
策略
財務
法遵
人資
42
• As data provider CB Insights notes in its history ofCVC, it was 1914 when Pierre Samuel du Pont, actingpresident of chemical and plastics manufacturerDuPont, invested in a still-private, six-year-oldautomobile start-up named General Motors (GM).
• From 1917 to 1919, DuPont invested $50 million in GM, becoming theautomaker’s largest stockholder. Pierre S. du Pont, the chemical firm’spresident, served as GM’s president from 1920 to 1923 and chaired GM’s boardfrom 1923 to 1929. By that time, GM had surpassed Ford Motor Co. as thenation’s largest car manufacturer.
Mason, Heidi; Arrington, Elizabeth; Mawson, James. Corporate Venturing: A Survival Guide (pp. 5-6). Global Corporate Venturing. Kindle Edition.
First CVC
43
• Corporations saw the application of venture capitalapproaches as a sure-fire way to embrace newtechnology while promoting diversification.
Nejatian, Kia. Corporate Venture Capital (p. 4). Kindle Edition.
The power of diversification through corporate venture capitalism techniques.
Exxon weather the storm of the 1970s, but widespread diversificationeventually came back to bite the organization. In fact, Exxon sufferedsevere losses due to these efforts in the 1980s, which forced theorganization to return to a narrowly-focused oil company once again.
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• Corporations would invest money into venturesproposed by their employees, then seek to spinthese in-house solutions into entirely newcompanies.
• Corporations would be investing in external start-upsthat aligned with business objectives.
Nejatian, Kia. Corporate Venture Capital (p. 4). Kindle Edition.
Two CVC methodologies
Spin-Out
Spin-in
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Picture from www.japantimes.co.jp
Today ’s top ic :
University and Research Institution Spin-off
建 立 在 大 學 和 研 究 機 構 的 研 究 成 果 之 上
新 創 公 司
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Th
e S
tag
es
of
Sta
rtu
p F
un
din
g R
ou
nd
s
Seed Stage Early Stage Growth Stage IPO
https://commons.wikimedia.org/wiki/File:Startup_financing_cycle.svg
Rev
enu
e
Proof of Concept1 Proof of Service2 Proof of Business3
Original Round(A輪)
2nd Round(B輪)
3rd Round (C輪)
4th Round D
5th Round E
6th Round F
Timmons Model告訴我們,成功的創業家要能夠因應環境變化與事業發展階段,而適時的調整他的角色與經營模式。創業家可視同平衡桿的底座支柱,經營模式就好像平衡桿的支撐點,而「機會、資源、團隊」就好比平衡桿上的三顆的球,當球在平衡桿上不斷的變化滾動,創業家就需要適時的調整他的支撐點,這樣新事業才能獲得持續的發展。
Opportunity Resources
TeamCreativity Leadership
Communication
InnovationAmbiguity Exogenous forces
Capital market contextUncertainty
Founder Timmons & Spinelli (2003)
The Timmons Model
創新
機會
團隊
資源
• The Funder
• The Opportunity
• The funder and Team
• Financing EntrepreneurialVentures
• Startup-up and Beyond
Contents
Every search for a hero must begin with something which every hero requires, a villain
-Dr. Nekhorvich:
From the Mission: Impossible II movie
50
Explain the concept and give the story.
• Emphasize the customer and their pain.
Clearly explain the problem and the solution.
• Tell why the customer cares.
Issue DiscoverySolutions to
the customersTeam for
executionCompetitions
Describe the competencies of the team.
• Tell about the passion and skills of the team.
Provide a picture of the competition.
• Name a few competitors and tell how you are different and better.
The Opportunity
• A good idea is not necessarily a good opportunity.
• For every 100 ideas presented to investors, usually fewer than 4 getfunded.
• An investor has to be able to quickly evaluate whether potential existsand to decide how much time and effort to invest.
• According to John Doerr, a successful venture capitalist, “There’snever been a better time than now to start a business.”
• Underlying market demand drives the value creation potential.
• The greater the growth, size, durability, and robustness of the grossand net margins and free cash flow, the greater the opportunity.
The Opportunity
Spinelli, S., Ensign, P. C., & Adams, R. J. (2014). New venture creation. McGraw-Hill Ryerson.
Value :
• Creation
• Enhancement
• Realization
• Renewal
For :
• Owners
• Stakeholders
• All Participants
Entrepreneurship Results
Spinelli, S., Ensign, P. C., & Adams, R. J. (2014). New venture creation. McGraw-Hill Ryerson.
• Don’t think too small
• Smaller often means higher failure odds
• Getting the odds in your favor
• Entrepreneurship should not be a job substitute
• Odds for survival, growth, and a higher level of success, changes when theventures reaches a size of 10-30 people with $2-$3 million in revenues
Think Big for Higher Potential Ventures
Structural Analysis of Business Opportunities
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Block BoxA B
Paradigm Shift
Current Status Future Status
Customer Experience
Operations
Business
Block BoxA BCurrent Status Future Status
Digitizing Customer Experience
Digitalization of Operations
Digitally modified Business
• 5th generation mobile networks• Artificial Intelligent、• Big Data、• Edge computing、• Internet of things、• Quantum computer、• Genomics Therapy 、• Precision Medicine
Paradigm Shift
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Black Box
Black Box Effects in the startups investment
Input Output
Theranos: multibillion-dollar biotech startup
Smart MedicineArtificial Intelligent
Autonomous DrivingCells Therapy
Quantum ComputingCryptocurrency
Market, Product, People, Profitability
59
Differentiation
Value Creation
Market Product Team Finance
Profit Model
Key Elements of New Ventures
結構式新創事業投資評估60
Company
Issue
Market(Segmentation)
Product/Service
Marketing Plan(Market Approach)
Operations Plan(Growth Strategy)
$
$
$
$
Market Research Insights
Global market for smart transportation systems
http://www.marketsandmarketsblog.com/smart-transportation-market-3.html
Financial Forecast(Cashflow & Milestones)
Management $Funding Sought &
Exit Strategy
IPOReturn : IRR
Shares structure
Structural analysis to a Business Opportunity
1. Company Introduction(公司簡介,欲解決問題與解決方案)
2. Market(目標市場潛力分析)
3. Technology, Service or Product(技術,服務或產品可行性分析)
4. What makes you superior to the competition: Barriers
(差異化與進入障礙分析)
5. Market Approach(市場進入途徑)
6. Operations : Business Growth Strategy(營銷增長策略)
7. Management(經營團隊能力分析)
8. Financial Projections(財務預測)
9. Milestones(重要里程碑預測)
10. Funding Sought and Exit Strategy(投資條款建議,投資獲利評估)
62
投資分析報告模板(Investment Proposal Template)
Module 1
Module 2
Module 3
Module 4
經營策略
競爭策略
執行策略
投資策略
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Co
mp
etitive Ad
vantage Strategies
Module 2
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Co
mp
etitive Ad
vantage Strategies
Module 2
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Co
mp
etitive Ad
vantage Strategies
Module 2
Market D
evelop
men
t
Strategies
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Module 2
P1: 簡介(公司名與發現未滿足的客戶需求)
P2: 目標市場(市場區隔後的規模)
P3: 產品服務(說明提供的產品或服務)
P5: 行銷模式(市場進入途徑)
P6: 運營獲利(營銷獲利模式)
P7: 經營團隊
P9: 財務預測
P10: 募資條件
Business Plan Template(精簡版)
P4: 競爭優勢(進入障礙)
P8: 重要里程碑
Module 1
Module 2
Module 3
Module 4
Module 2
APPENDIX
68
“ They fritter away their valuable resources while attempting to make a decision.
The greatest danger is in Standing still”—ANDY GROVE, FORMER CHAIRMAN AND CEO OF INTEL CORPORATION
他們在一次次猶豫不決中浪費了自己的寶貴資源。最大的危險是無動於衷。
End
70
A Framework for Evaluating Start-Ups- How do venture capital funds evaluate an investment proposal
71
Start-Ups Business Plan Template
Company Introduction
Content :a. Company Name – with their slogan if you have oneb. Whom you know in the company, his/her name and positionc. One-sentence “essence of their company” –what they do, the market, and their solution.
MarketContent :
a. Who are their customers?b. What need creates the market demand? Why their solution? What is their value proposition?c. What is the size of the market?d. Quantify their opportunity.e. Explain how the market is growing and why.
Technology, Service or Product
Content :a. How is their product a solution to market needs?b. Explain their technology, service or product from the customer’s perspective.c. Will the customer see their product as either an entire solution or the main, critical component in a multi-sourced solution? Identify their product’s value-add
What makes you superior to the competition: BarriersContent :
Who are their competition? Again, approach from the customer’s perspective. If they have defined the market as X, don’t do comparisons to companies in market Y.
Market ApproachContent :
a. Sales : explain how they propose to reach their market. What channels of distribution will they use? If they are using third party distributors, what sales incentives will they use? Is their sales cycle seasonal? How long is their sales cycle?
b. Support : How do they plan to provide customer support before, during, and after the sale? Access to information and rapid response are crucial at all steps.
Business Model & Growth StrategyContent :
a. How is their product, service or technology scalable?b. How is their business scalable?c. How will they manufacture products at a competitive price?d. Where are they in the product development and commercial launch time line?e. What is left to accomplish and when?f. Are there any risks or challenges to commercialization?
Management
Content :a. Previous companies, positions and relevant accomplishments for key management.b. Key positions that still need to be filled, and timing of filling positioning.c. Background and qualifications ( in general terms ) of prospective hires whose identity can not yet be revealed. d. members of the board of directors and the board of advisers. Describe their general level of involvement and highlight any strategic contributions.
Financial ProjectionsContent :
a. What is their road to profitability?b. How big are the potholes?c. What is their time line?
Give board five year financial projects in a table format with annual total product units sold, revenues, cost of goods, gross margin, SG&A, pretax profit, and cash flow. Show when and how they will be cash-flow positive and ultimately profitable.
Milestones
Content :they may wish to use a Gantt chart to highlight
key steps and milestones, including key hires, product development and funding needs, and timing. Show a stepwise, methodical process to success. Start with earlier activities, even showing the date of company formation. Include key financial milestones such as prior and subsequent funding rounds and revenue
targets.
Funding Sought and Exit StrategyContent :
a. Funding sought : how much are they raising in this round? Any previous rounds? What is the timing? Have they already raised part of this round? If so, how much did they raise, and by what investment vehicle ( debt or equity )? If not already shown, their future funding needs and timing. Is this a debt or equity offering? What was the valuation on any prior financing rounds? What is the pre-money
valuation for this round?
Funding Sought and Exit StrategyContent : - Continue
b. Exit strategy : Give their best estimate of timing to exit and liquidity for investors. Recognize that a merger or acquisition is the most probable exit strategy, unless their revenues and market sector strongly suggest an IPO opportunity. Give suggestions of appropriate potential acquirers.