Carolyn Davis

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High Tech Entrepreneurship at Georgia TechApril
27, 2001

• Carolyn Davis
• Entrepreneurship for Engineers Instructor
• Dr. Harris Bergman
• Cofounder, MediZeus

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Stages of a Technology Venture

• Idea
• Opportunity
• Financing
• Start-up Operations
• Sales

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Idea

• Recognition of social need
• Initiation of technological innovation

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Solutions

• When there is a need and a technological
  innovation intersect, you have a solution.
• Lita Nelson (MIT) says People dont buy
  technology, they buy solutions.

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Opportunities

• The solution becomes an opportunity when there
  are customers who are willing to pay for this
  particular solution (i.e. an identifiable market).

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Evaluating the Opportunity An Analysis

• What market need does it fill?
• What personal observations have you experienced
  or recorded with regard to that market need?
• What social condition underlies this market need?

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Evaluating the Opportunity An Analysis

• What market research data can be marshaled to
  describe this market need? (You must cite
  preliminary data and the source of that data)
• What patents might be available to fulfill this
  need?
• What competition exists in this market? How would
  you describe the behavior of this competition?

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Evaluating the Opportunity An Analysis

• Where is the money to be made in this activity?
• What are the obstacles to filling this need (in
  other words, why hasnt this need been filled to
  date?)

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Financing

• What are the options?
• Licensing
• Lifestyle private
• Corporate public
• Document in the Business Plan

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Financing

• Making the pitch
• Targeting potential investor
• Seed money, A, B, or C level
• Termsheet

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Components of a Business Plan

• Executive Summary
• Company Overview and Background
• Market Opportunity
• Competition
• Products and Technology
• Marketing Strategy and Execution
• Management
• Financials

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Business Plan

• Opportunity
• Cash Flow
• Management Team

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Start-upBurn vs. Burn-out

• Start-up activities include
• Creating the team
• Design Development Document
• Pilot manufacturing
• Validation testing for biotech ventures
• FDA approval for biotech ventures

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Computer Aided Diagnosis Objective second
opinion helps doctors
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Idea Stage

• Computer Aided Diagnosis
• MR Angiography
• Concept Clinical Study
• 3 Ph.D. theses

FM
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Opportunity

• Competitive Advantage
• Trade Secret
• Increased accuracy
• Decreases MD time
• Link to Patient
• Elegance - Simplifies MD work
• Growth Rate niche, demographics

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Start-Up

• Team
• Marketing strategy

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Start-up Overview
Stage Activity Output Timeframe

• Idea Academia Papers, patent 1-5 years
• Opportunity Do homework BP 6 months
• Financing Pitch Plan 1 year
• Start-up Build Team Product 2-10 years
• Sales Sell Revenue Forever

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A NEW Program for Engineering Entrepreneurship
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Engineering Entrepreneurship is Growing

• VC is spreading to Atlanta
• New ideas from GA Tech
• New opportunities with fast development
• Spirit of excitement

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Georgia Tech

• Pockets of strength
• Coordination of efforts
• Improve Visibility
• Focus on teaching engineers

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The Solution A NEW Program for Engineering
Entrepreneurship

• Formally designed to provide engineers with
  business skills
• Initiated by a 1 million Whitaker Award
• A combined effort between the COE and the COM

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Program Specifics

• Certificate Program for Graduate Students
• Short courses for Faculty and Community
• Seminars for Community Impact Series
• Academic Conferences for Faculty Dec 8th
  Conference

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Certificate for graduate students

• Opportunity for multidisciplinary study
• A mini-MBA satisfies PhD Minor requirements
• Four courses
• Principles of Management (overview)
• Elective - Legal Issues in Tech Transfer
• Elective - Venture finance or Negotiations
• Technology Ventures

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Short Courses for Faculty and Community

• Selected topics, such as Starting and Growing
  Your Own Company
• Initially offered twice a year
• Raises profile of Georgia Tech

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Seminars to build Community

• Great Talks by Great Speakers
• Locate at Georgia Tech
• Institutionalize the time - Fridays at 400
• Free and open to everyone!