A Method to Prevent Perineal Lacerations

1
MSE 273Technology Venture Formation

• Session 2
• Opportunity Assessment

2
Definition of Entrepreneurship

• The Pursuit of Opportunity Without Regard to
  Resources Controlled
• Howard Stevenson
• Harvard Business School

3
Opportunity Assessment

• How to Think About
• Opportunities

4
Whats an Opportunity?
Product or service you build a profitable company
around, resulting in a positive return to
investors.
5
What's an Assessment?
A quick way for you to evaluate whether your
opportunity is worth spending years of time and
money on
6
What are the questions that need to be answered?
What is the need you are trying to
satisfy? Clearly define the need you are trying
to satisfy, who the customer is, what drives the
need and any other customer criteria that may be
important
7
What are the questions that need to be answered?
What is the potential market size? Size up the
primary market, know the growth projections and
current incumbents shares of the market,
determine share you can acquire and identify
possible secondary or tertiary markets
8
What are the questions that need to be answered?
What is your competitive advantage? Scope out
the competitive landscape and identify your
competitive advantages (IP, processing expertise,
new marketing channel or innovative use of
existing one, etc.)
9
What are the questions that need to be answered?
What is your marketing/sales channel? Define how
you will bring your product to market and
identify major hurdles to distribution/sales with
possible solutions
10
What are the questions that need to be answered?
What is your business model (i.e., how are you
making money)? Clearly define your revenue model
and show that you can make money (and how much)
with this model
11
What are the questions that need to be answered?
What resources do you need to launch this
business? Estimate the capital resources you
will need to launch this business and in what
timeframe you will need these resources
12
What are the questions that need to be answered?
What are the major show-stoppers? Highlight the
major hurdles with the business concept and put
forward solid arguments as to why you think you
can overcome these hurdles
13
MSE 273Technology Venture Formation
How do we get started?
14
Idea/Opportunity Brainstorming

• All ideas/opportunities are welcome
• But you are Stanford Engineers - start with an
  engineering idea!
• There are no dumb ideas
• Go off on tangents
• Each idea gets deeply explored, tossed or morphed
  .
• Analyze - strengths, weaknesses, opportunities,
  threats

15
Have We Answered These?
What is the need you are trying to satisfy? What
is the potential market size? What is your
competitive advantage? What is your
marketing/sales channel? What is your business
model (i.e., how are you making money)? What
resources do you need to launch this
business? What are the major show-stoppers?
16
Type of Venture Changes Everything
MedTech
CleanTech
InfoTech
Everything market, customer, product, capital
17
InfoTech
18
InfoTech
Market Trends Sales Channel Product Issues Capi
tal Needs
Software as service
Cloud Computing
Virtualization
Mobility
Low-cost service Viral propagation
Direct/Indirect sales
Embedded technology design wins
Open source tools Cloud computing-scale
Low-cost hardware
Breakthrough technology
500K is the new 5M
50M or more
InfoTech Its all about the
Customer
19
CleanTech
Wind
Solar PV/Thermal
Biomass
Ocean
Energy Source
Batteries
Pump
Compressed Air
Fly Wheels
Energy Storage
www.ameren.com
Purification/Treatment/Recycling/Filtration
Water
All Electric
Fuel Cell
Hybrids
Biofuel
Trans- portation
Lighting
Home/Bldg.
Smart Metering/ Appliances
Efficiency
20
CleanTech
Demand for energy rising faster than supply
Global warming concern leading to carbon
emissions regulation
6 trillion market VC shift to CleanTech
Market Trends Customer Adoption Product Issues
Capital Needs
Financial/tax incentives
Renewable energy standards
Carbon cap
Not many off-the-shelf production tools
Computational models inadequate trial and error
Production facilities often overseas
Tens of millions
Hundreds of millions
CleanTech Its all about Price and
Regulations
21
MedTech/BioTech
Over the Counter (OTC)
Prescription
Pharmaceutical
Diagnostic
Therapeutic
In Vitro Diagnostic
Medical Device
Biologic/Device
Drug/Biologic
Drug/Device
Combination Products
Tissue
Gene Therapies
Blood
Vaccines
Biologics
22
MedTech/BioTech

• MedTech
• Incremental innovation - existing FDA and
  reimbursements codes
• Breakthrough innovation new FDA and
  reimbursement codes and clinical trials
• Capital needs can vary dramatically Tens of
  millions

• BioTech
• Discovered in science based research
• All drugs follow FDA Phase I, II, III clinical
  trials
• Capital intensive often over 100M

BioTech Its all about the Science
MedTech Its all about the FDA and
Reimbursements
23
Get Started Now

• Form a Team
• Find an Idea
• Dont Stop There

24
TA Announcements

• Enrollment forms due today TAs will email 48
  students and 12 on waitlist by tonight at
  midnight
• Mixer I on Wed Sep 24th at 5PM outside of
  Treehouse (form teams)
• Mandatory class on Thurs Sep 25th 415-5PM Yang
  111 (refine teams)
• Mixer II on Thurs Sep 25th at 5PM outside of
  Treehouse -- send team name, team members (name
  email), preferred mentor to TAs by 11PM
• Office hours -- sign-up on the teaching team
  website
• Faculty Yang 372 374, Tues 3-4PM
• Lauren Terman 401, Thurs 5-6PM
• Craig Yang 374, Wed 4-5PM
• Slides, reading assignments schedule will be
  posted online