VCCE Mixer to plan valuecreating startups

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VCCE Mixer to plan value-creating start-ups
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We Want Winning Plans

• To win
• VCCE
• Hong Kong, Chinese, Asian and Global Competitions
• Profits in the market upon rollout

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Written Plans Oct 20th

• Double spaced
• Max 30 pages overall
• 20 pages of text
• 10 pages appendices

Presentations (6 finalists) Nov 8th

• 15 minutes presentation
• 20 minutes QA
• Judges are VCs and investors

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How to compete

• Get an idea
• Form a team maximum 5 students to present
• Team described in plan may include any number of
  non students -- but they may not present
• Find an Advisor any CUHK professor
• Team may includes non-CUHK people but CUHK
  student role must be substantial
• equity gt 20
• Management gt 50
• Your company -- if it already exists -- must not
  have substantial sales prior to Sept 08

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The Plan Can Be For Any Business

• Goods or Services
• High Low or No Technology
• Innovative or Copy-cat
• Domestic, Foreign or Global
• Large or Small Investment

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Many business survive but the judges ask
which plan presents the most attractive
investment opportunity?
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Their Answers

• VCCE November 2007 V-Miner
• language processing software that analyzes news
  feeds to give instantaneous trading
  recommendations
• Asia Moot Corp March 2008 PhotonWave
  Technologies Indian School of Business
• Silicon Photonics Nanotechnology-based patented
  innovation that that improves performance of
  optic interconnects for last-mile (to user
  building) markets.
• Moot Corp May 2008 NeuroBank Carnegie Mellon
  University
• the extraction and storage of adult neural stem
  cells for individuals with and without neurologic
  disease.

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Examples

• Moot Corp www.mootcorp.org
• ID mootcorp2
• Password GMC1984a
• Center for Entrepreneurship
• Phone[phone] Fax[phone]E-mail
  entrepreneurship_at_cuhk.edu.hk Web site
  http//www.cuhk.edu.hk/centre/entrepreneurship
  Rosanna Lo Angela Ng

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The Concerns of the Investor
Is there a value proposition?

• Does it create value for buyers?
• Will the buyer happily pay a premium?
• Is that market
• large?
• high growth?
• high margin?
• with barriers to entry?
• Does the ventures team fit the opportunity?

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A Solution Looking for a Problem Will Lose

• You need to link your technologys solution with
  a real market need

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A Great Idea that can be Easily Copied Will Lose

• You need barriers to entry to win
• Technology
• Patents
• In-house Expertise
• Credible Business Partners
• Knowledge of the Market
• Focus on a Single Large Market Niche
• Commitment of the rollout team

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Be Honest
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Your Business Plan is a Prospectus

• Statements about past and present must be true
• Investor will do due diligence
• Lies will be discovered if the plan is taken
  seriously
• If an investor relies on false information in the
  prospectus and suffers a loss because of that
  reliance, you are personally liable

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No Plagiarism
Plagiarism is easy to spot
Merriam Webster Dictionary plagiarize
(Etymology plagiary Date 1716)  Transitive
senses to steal and pass off (the ideas or
words of another) as one's own use (another's
production) without crediting the
source.   Intransitive senses to commit
literary theft present as new and original an
idea or product derived from an existing source.
By carefully citing sources, you help investors
with due diligence
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So how do I write the plan?

• The classic solution go to the net!
• http//www.pasware.com/

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There are over 400 books listed in the library on
how to write of business planthese will help
with the form, but content is most important
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Key Content illuminating the market opportunity

• Based on research
• First exhaust secondary sources
• industry analysis
• trade associations
• Trade periodicals
• Use PRIMARY sources
• Talk to potential customers, suppliers,
  competitors

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Clear Your CUHK Technology with Technology
Licensing Office
CUHK Faculty and Students Can Help with your plan
but you have to find them yourself !!!!

• Alice Ngan, Director x 8883
• Billy Lam, Technology Licensing x 8882

For Incubation at CUHK

• Center for Innovation and Technology
• K.Y. Leung, Associate Director x 8380

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Tap Our CUHK MBA Alumni

• Alumni happy to mentor
• Market knowledge
• Strategic partners
• Entrepreneurial experience
• Investment expertise
• One page summary of your business
• We give summaries to Rocky Lok, Chairman of the
  CUHK MBA Alumni Association

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Hugh Thomas hugh-thomas_at_cuhk.edu.hk Center for
Entrepreneurship