The Innovation Agency transferable skills workshop 2
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Cambridge University Transferable Skill Workshop Commercialising R&D
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Slides from part 2 of the transferable skills workshop held by The Innovation Agency at the University of Cambridge
Transcript of The Innovation Agency transferable skills workshop 2
Cambridge University Transferable Skill Workshop
Commercialising R&D
Cambridge University Transferable Skills
Welcome & Content Recap of the first session
Where are we trying to get to?
Asking the right questions
Business modelling – introducing the business model canvas
An example business model
The Workshop The Investment deck
Marketing your business
The Innovation Agency
Cambridge University Transferable Skills
Recap
Push – PullWhat - WHY
Technology PushMarket Pull
Understanding the WHY of what you are doing
Have you tested your pitch?
Where are we trying to get to?
To develop an appreciation of the fundamentals of planning and
communicating a business
Cambridge University Transferable Skills
Building a believable story
Communicating the story
Introducing the Business Model Canvas
Developed as by Alex Osterwalderwww.businessmodelgeneration.com
Cambridge University Transferable Skills
Business Model Canvas
Cambridge University Transferable Skills
Intro Video
Cambridge University Transferable Skills
Cambridge University Transferable Skills
Cambridge University Transferable Skills
Guesstimates / Assumptions
Users/Customers Number of monthly
active FB users: 500M (source: FB factsheet)
Number of daily active FB users: 250M (source: FB factsheet)
Average time users spend on FB per month: 1 400 minutes ′-> 46 min/day (guesstimate source: FB factsheet)
Resources Number of employees: 2k
(source: FB factsheet)
Number of servers: ??? Costs
Average salary (guesstimate): 150k (source: glassdoor.com FB salaries)
HR costs: 300M (deduction)
IT costs (guess):????
Cambridge University Transferable Skills
Guesstimates / Assumptions Revenue Streams
Advertising – Average CPM: $0.625 (source: Blogpost)
Annual page views: 3.12 Trillion (source: Blogpost)
Facebook Credits: 30% revenue cut (source: TechCrunch)
OPEN QUESTIONS How high could Facebook’s
costs for its IT infrastructure (capital expenditure and operating costs be?
How could its advertising revenues (e.g. banners and text advertising breakdown) really be?
What budgets are Fortune 500 companies putting into Facebook advertising?
How many SMEs and micro-enterprises are using Facebook for advertising?
How much could Facebook already be earning from Facebook Credits, even if this virtual currency is still in BETA?
The Workshop
Develop a canvas.....
Cambridge University Transferable Skills
Get ready to pivot
Key insights come from talking to people 15 minutes with a customer beats 10 hours
hypothesising Be flexible and willing to be wrong Encourage criticism and use the feedback Be aware of the limits of theoretical models Talk to people – all the time Be Humble
The ways the canvas gets used...
Different levels of mastery
Cambridge University Transferable Skills
Levels of Mastery
Level 0 Strategy – The Oblivious: Focus on products/value propositions alone rather than the value proposition AND the business model.
Level 1 Strategy – The Beginners: Use the Business Model Canvas as a checklist.
Level 2 Strategy – The Masters: Outcompete others with a superior business model where every one of the business model building blocks reinforce each other (e.g. Nintendo Wii, Nespresso, Dell).
Level 3 Strategy – The Invincible: Continuously disrupt themselves while their business models are still successful (e.g. Apple, Amazon.com).
The Investment Deck
Getting the message across in an engaging way
Cambridge University Transferable Skills
Hockey Sticks!
Cambridge University Transferable Skills
Why, How, What
Engagement is best gained when the WHY is explained first........ if you nail the WHY, the How and What is straightforward
Investors 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?
What the Investors say they want to see in an investment deck
The Investment Deck
'The Perfect Pitch' using x7 slides:Bindi Karia, VC Emerging Business lead for
Microsoft
Cambridge University Transferable Skills
The Investment Deck
1) Your Value Proposition
2) The Problem
3) Your Solution
4) The Marketplace
5) Your Team
6) Business Execution
7) Business Model
The Investment Deck
'The Perfect Pitch' using X10 slides: Guy Kawasaki, former chief evangelist
Apple Inc
Cambridge University Transferable Skills
The Investment Deck
1) Problem
2) Your Solution
3) Business Model
4) Underlying magic technology
5) Marketing and Sales
6) Competition
7) Team
8) Projections and milestones
9) Status and timeline
10)Summary and call to action
The Investment Deck
'The Perfect Pitch' using X13 Slides:Mark Suster, Entreprenuer turned VC
Cambridge University Transferable Skills
The Investment Deck1) Team Bio
2) 100 Meter view of your company
3) Problem definition
4) How do you solve the problem: Demo?
5) Market Sizing
6) Warning: Market sizing pitfalls
7) Competition
8) Customer Adoption – Traction
9) Team
10) Financial Projections
11) Use of Proceeds
12) Fundraising process – next steps
13) Appenix Slides: Back up slides
The Investment Deck
'Top ten lies' of Entreprenuers
Cambridge University Transferable Skills
The Investment Deck'Top ten lies' of Entreprenuers
1) “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.”
The Investment Deck
'Top ten lies' of Investors
Cambridge University Transferable Skills
The Investment Deck'Top ten lies' of Investors
1) “I liked your company, but my partners didn't.”
2) “We are patient investors who want to help you build a great company.”
3) “If you get a lead, we'll invest too.”
4) “There are no companies in our portfolio that conflict with what you're doing.”
5) “Show us some traction, and we'll invest.”
6) “We love to co-invest with other firms.”
7) “We're 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.”
The Investment Deck
Question: Do you know the difference between the lies
of entrepreneurs and the lies of investors
?
The Investment Desk
Answer: The Investors have money
Marketing your Business
#1 – know who you are marketing to
Cambridge University Transferable Skills
Marketing Your Business
Creating a burning platform:Three essential elements
Why buy anything?
Avoid building a 'feature' not a company (FNAC)
Why buy Mine?
Understand what your customer pain point solves
and why your business is more cost effective
than others
Why buy now?
This question kills most sales cycles including raising
venture capital
The Innovation Agency
......taking Research to Market
Individual follow ups
Contact us if you would like to investigate how to take your research
to market
