Technology Ventures: From Idea to Enterprise

Summary

Chapter 19: Summary

Leadership involves remembering past mistakes, an analysis of today’s achievements, and a well-grounded imagination in visualizing the problem of the future.

Stanley C. Allyn

How does the new venture present its vision and story and negotiate a deal with investors?

The creators of a new enterprise need to tell their story about the future of their business. A good story will motivate investors, employees, and partners. The negotiation of a deal with an investor is an important part of the process.

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Chapter 19: Story

A story is a narrative of factual or imagined events.

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Technology Ventures: From Idea to Enterprise

Chapter 19: Table 19.1

The Four-Step Method of Persuasion

Establish credibility with the investor, ally, client, or talent.

Frame the goals of a new venture consistent with the goals of the investors or allies. Describe the unique benefits of the venture.

Offer solid, compelling evidence to support the plan

Build a good relationship with the investor or ally

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Technology Ventures: From Idea to Enterprise

Chapter 19: Table 19.4

Nine Questions to Answer in the Business Plan Presentation

1. What is the product and what problem is it solving?

2. What are the unique benefits of the product?

3. Who is the customer?

4. How will it be distributed and sold?

5. How many people will buy it in the first and second year?

6. How much will it cost to design and build the product?

7. What is the sales price?

8. When will you break even?

9. Who are the key team members and how are they qualified to build this business?

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Technology Ventures: From Idea to Enterprise

Chapter 19: Negotiation

Negotiation may be defined as a decision-making process among interdependent parties who do not share identical preferences.

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Technology Ventures: From Idea to Enterprise

Chapter 19: Principle

The creation and communication of a compelling story about a venture and the resulting skillful negotiations to close a deal with investors are critical to all new enterprises.

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Technology Ventures: From Idea to Enterprise

Chapter 19: Exercise

Segway is a new transportation vehicle (see www.segway.com). Write and present a story for use of a fleet of rental segways on your campus or in your town.

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Technology Ventures: From Idea to Enterprise

Chapter 19: Venture Challenge

VENTURE CHALLENGE1) State your venture’s elevator pitch.

2) Provide an outline of the presentation for describing your venture to investors.

3) Sketch out a term sheet outlining your venture’s capital needs and amount of the company you are interested in selling (e.g., number of shares or what percentage of the total shares), and specify any other negotiation terms you consider important.

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Technology Ventures: From Idea to Enterprise

Chapter 19: DVD Video

DVD Video

“Tips for a Good Pitch”

Heidi Roizen (Mobius Venture Capital)

Presentations and Deal NegotiationsPresentations and Deal Negotiations

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Technology Ventures: From Idea to Enterprise