The TiE International Business Plan Competition is a Global initiative supported by TiE Delhi, TiE Brussels and Rice University.
Team Member Instructions Guide & Handbook
Contents Program Overview: .......................................................................................................................... 3 Eligibility .......................................................................................................................................... 3 General Requirements for Both Rice and Investor Track ........................................................... 3 Outside Funding:..................................................................................................................... 3 Nature of Ventures: ................................................................................................................ 3 Additional Requirements for Rice Track ..................................................................................... 3 Student Enrollment:................................................................................................................ 3 Team Size: ............................................................................................................................... 3 Team Composition: ................................................................................................................. 4 Student Involvement: ............................................................................................................. 4 Prior Activity: .......................................................................................................................... 5 GENERAL GUIDELINES ..................................................................................................................... 5 Non-confidentiality: .................................................................................................................... 5 Copyrights & Permissions: .......................................................................................................... 5 EXECUTIVE SUMMARY..................................................................................................................... 6 Executive Summary Submission: ................................................................................................ 6 WRITTEN BUSINESS PLAN ........................................................................................................... 6 Written Business Plan Submission:......................................................................................... 6 Contents of the Written Business Plan: .................................................................................. 7 ORAL PRESENTATION ...................................................................................................................... 8 Business Sessions: ....................................................................................................................... 8 Chapter Competitions: ................................................................................................................ 8 Regional Finals:................................................................................................................................ 8 Shark Tank Rounds: ................................................................................................................ 8 Final Round: ............................................................................................................................ 9 Equipment:.................................................................................................................................. 9 ELEVATOR PITCH.............................................................................................................................. 9 Overview ..................................................................................................................................... 9 Rules ............................................................................................................................................ 9 Judges Evaluation Criteria ......................................................................................................... 10 Suggested Guidelines ................................................................................................................ 10
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Program Overview: The competition is for new, independent ventures in the seed, start-up, or early growth stages. Generally excluded are the following: buy-outs, expansions of existing companies, real estate syndications, tax shelters, franchises, licensing agreements for distribution in a different geographical area, and spin-outs from existing corporations. Licensing technologies from universities or research labs is encouraged, assuming they have not been commercialized previously. The TiE International Business Plan Competition is a 2 track competition in which teams can choose either the Rice University Track or the Investor Track. Those who choose the Rice Track must meet additional eligibility requirements including having at least two student team members on their team, one a graduate level student.
Eligibility General Requirements for Both Rice and Investor Track Outside Funding: All ventures MUST be seeking outside equity capital, typically early stage venture investment or early stage angel investment. Except in the case of teams entering the Social Ventures Track, all ventures must be “for profit” entities.
Nature of Ventures: The competition is for new, independent ventures in the seed, startup, or early growth stages. Generally excluded are the following: buy-outs, expansions of existing companies, real estate syndications, tax shelters, franchises, licensing agreements for distribution in a different geographical area, and spin-outs from existing corporations. Licensing technologies from universities or research labs is encouraged, assuming they have not been commercialized previously.
Additional Requirements for Rice Track Student Enrollment: This track is for students enrolled in a degree program (students in certificate programs are not eligible) in the current academic year. Students who graduated in the preceding academic year are not eligible to participate. However, an exception will be made for students who both worked on their business plan or technology in the prior academic year and graduated during the preceding summer, i.e., the summer of 2014. An exception will also be made for students from non-US universities that have a different academic calendar.
Team Size: The presenting team should include at least two students and not exceed five students. (At least two students must ultimately be able to travel to Delhi or Brussels and Houston to compete and both must participate in the oral presentation of the business plan). Non-student team members are welcome to travel to Delhi or Brussels and Rice with the student team, but are prohibited from participating in the presentations or Q&A sessions. More 3|Page
than five students can travel with the team, but only five students can serve as presenters. Faculty advisors or other team mentors are encouraged to attend.
Team Composition: This track is primarily for graduate students, but undergraduate students can compete as long as at least one graduate student is a member of the venture’s startup management team and at least one graduate student is a part of the presenting team that travels to Rice University. A team with some undergraduates will be allowed to compete, and the undergraduates may participate fully. All graduate students, not just MBA candidates, are eligible to participate in the competition. This includes executive MBAs, MD candidates, JD candidates, other Masters Candidates, and PhD Candidates. Individuals in University Postdoctoral positions are not eligible to compete as students. Non-students may be members of the venture’s management team and may participate in planning the venture. However, only students may present the plan and answer questions from the competition judges. The maximum number of student competitors on a team participating at all level competitions is five (5), although there is no restriction on the total size of the venture’s founding team.
Student Involvement: The competition is for student created and managed ventures, including new ventures launched by licensing university technology. Students are expected to: (1) (2) (3) (4)
be the driving force behind the new venture, have played the primary role in developing the business plan, have key management roles in the venture, and own significant equity in the venture.
In general, a member of the student team should be CEO, COO, or President of the venture, or members of the student team should occupy 50% or more of the functional area management positions that report directly to the CEO, COO, or President. Members of the student team are expected to also own equity in the new venture. It is anticipated that the presenting students should own 50% of the equity that is allocated to the management team, and 20% overall equity. (One objective of this rule is to exclude ventures formed and managed by non-students who have given little or no equity to MBAs for writing their business plan.) The competition is supportive of MBA/graduate teams that have created a business plan to launch a new venture based on university-developed research and innovations. A goal of the competition is to support the commercialization of promising university technologies through the licensing of technologies to start-up ventures. Recognizing that the equity structure of these new university-based ventures may not yet be established, the 50% equity ownership rule may be waived in this situation. This waiver will be examined on a case-by-case basis.
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Prior Activity: Ventures may compete only once. Teams that have competed at MOOT CORP (now Venture Labs Investment Competition) in a previous year are ineligible to compete at Rice, and therefore the TiE International Business Plan Competition. Ventures with revenues in prior academic years, i.e., before August, 2014, are excluded. Ventures that have raised equity capital from sources other than the members of the student team or their friends and families before the current academic year, i.e., before August, 2014, are excluded. However, both student and other team members may have worked on an idea or new technology in previous academic years or in the case of the student team members even prior to entering graduate school, provided that their venture had no revenues and raised no outside equity capital prior to the current academic year.
GENERAL GUIDELINES Non-confidentiality: All sessions of the competition, including but not limited to oral presentations and question/answer sessions, are open to the public at large. Any and all of these sessions may be broadcast to interested persons through media which may include radio, television and the Internet. Any data or information discussed or divulged in public sessions by entrants should be considered information that could possibly enter the public realm, and entrants should not assume any right of confidentiality in any data or information discussed, divulged, or presented in these sessions. Due to the nature of the competition, we are not able to ask judges, reviewers, staff, or the audience to agree to or sign non-disclosure statements. However, TiE Global, the Rice Alliance for Technology and Entrepreneurship, the organizers of the TiE Events and RBPC, will make every effort to limit distribution of business plans presented at the competition. TiE Global and The Rice Alliance cannot guarantee that other individuals will not obtain access to electronic or hard copies of the business plan. All presentations are open to the general public, and some presentations may be videotaped. Attendance by media personnel is expected during Finals at Rice.
Copyrights & Permissions: If a team uses copyrighted materials and/or images from a third-party in their submissions or presentations, they must obtain permission and authorization in advance from the owners to use this material.
EXECUTIVE SUMMARY Executive Summary Submission: The final executive summary from each team is due along with the application in iStart by Sunday, October 12, 2014. Please submit the file in Adobe Acrobat PDF. No other format will be accepted. Files should be named according to the following format: ES_CompanyName.pdf. This will be uploaded to your istart account with completed application. Teams will be evaluated on the quality of the Executive Summary. Teams will be notified of whether they are invited to compete by Monday, October 20, 2014. Guidelines: Executive summaries must be limited to 5 pages of text (typed, double-spaced, minimum 12 point font, and 1" margins on all sides.) The Executive Summary should include information on:
Company summary Customer/market analysis (market size and potential market share) Product or service description Intellectual property status (e.g., patents, licenses, etc.) Competitive differentiation Management team and/or advisors, including relevant experience Financial highlights Status and offering of the company (how much investment you are seeking)
In your executive summary, we expect you to convey: The problem or need your company solves » The size of the accessible market & evidence that customers will buy your product/service » Your differentiation vs. competition and how you will sustain that » The experience of your management team and/or advisory boards » The current state of development (e.g., beta, customer trials, etc.) » Timeframes to achieve significant revenue and/or cash flow positive » The amount of funding you are seeking
WRITTEN BUSINESS PLAN Written Business Plan Submission: A complete written business plan from the invited and confirmed teams will be due November 23rd, 2014 in iStart. Please submit an electronic version in Adobe Acrobat PDF. No other format will be accepted. Files should be named according to the following format: BP_CompanyName.pdf. These will also be submitted via your iStart account. 6|Page
Written business plans are limited to 20 pages of text (typed, double-spaced, minimum 12 point font, and 1" margins on all sides), and includes the executive summary and summary financial data. Detailed spreadsheets and appropriate appendices should follow the text portion of the plan but will be limited to 10 pages. Plans with fewer than 10 pages of appendices may not use the remaining pages to increase the size of their business plan beyond 20 pages. In total, the maximum number of pages is 30.
Contents of the Written Business Plan: Business Plan should include (max 20 pages) Executive Summary Product or service description (incl. current status of development – beta, prototype, etc.) Customer/Market analysis (market size and potential market share) Sales and Marketing Plan (how you will go-to-market) Intellectual property status (e.g., patents, licenses, etc.) Competitor Analysis (competitors and your competitive differentiation Management team and/or advisors, including relevant experience Financial highlights (cash flow, income statement, & balance sheet) Offering of the company (how much investment you are seeking, uses of funding, possible exits)
Business Plan Financial Data: Financial data should include a cash flow statement, income statement, and balance sheet. This data should be included in a summarized fashion in the main section of the business plan. Include an explanation of the offering to investors indicating how much money is required, how it will be used, and the proposed structure of the deal, (i.e., stock, debentures, etc.) and possible exit strategies. Detailed financial data and tables should be included in the appendix. Please note: The team is not required to reveal the exact desired terms of the deal (i.e., proposed company valuation and percentage of company being offered). However, teams should expect to be asked about these terms and should be prepared to answer these questions in some fashion (if this information is not already provided in the written plan.) It is up to the team to assess the BEST way to address this question; however, past experience indicates that some judges will want to know a team's estimated company valuation.
Appendices: Appendices should be included only when they support the findings, statements, and observations in the plan. Because of the number of teams in the competition, judges may not be able to read all the material in the appendices. Therefore, the text portion of the plan (20 pages) must contain all pertinent information in a clear and concise manner. All appendices must fall within the 10 page limit; any pages over this limit will not be posted or otherwise provided to the judges. 7|Page
Changes to Your Business Plan: Once your written business plan is submitted it will be provided for review by the judges. You will not have a chance to modify your written business plan prior to the competitions. However, if you feel the need to modify your plan, when you make your oral presentations during the competition, you can incorporate these changes into your presentation.
ORAL PRESENTATION Oral presentations will take place at all three levels of the competition. Teams should arrive to the competitions at least one hour prior to the start time to ensure all preparation is done prior to the start of the program. The winning teams from the Rice will be provided further instructions specific to the Rice Competition prior to their arrival in Houston.
Business Sessions: During the second Business Session teams will be given the opportunity to practice their presentations and get mentor feedback. There will be no practice sessions during the Regional Finals, unless arranged by teams with mentors privately.
Chapter Competitions: During the Chapter Competitions, each team will have 15 minutes to present its business plan. The presentation will be followed by a 20-minute question-and-answer session with the judges. THIS TIME LIMIT WILL BE STRICTLY ENFORCED.
Regional Finals: The finalists from each Chapter will go onto the Shark Tank Rounds in the Regional Finals. Those who are chosen to continue with the competition after this intense round will go onto the Final Presentations during the second half of the day in which they will be given the chance to present their Business Plans one Final time. Shark Tank Rounds: The Shark Tank Round is formatted differently than the Local Chapter Competition and will provide competitors with a third type of presentation experience. There will be several teams in each flight (depending on the number of Chapter participating); each will have a total of 25 minutes for presentation and Q&A. However, there will be no individual time limits on the presentations or Q&A. Judges are encouraged to interrupt at any time and ask questions. Students should be prepared to make shortened presentations to accommodate the less structured format. Judges will be encouraged to ask questions throughout the presentation.
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Final Round: The teams in the Final Round will have 15 minutes to present, followed by a 10 minute question-and-answer session. There will only be 5 minutes between each presentation for teams to set-up in the Final Round. For the Final Round, each team should be in position at least 15 minutes prior to their designated presentation times. Note: A team, once it has finished its presentation, may observe both the presentation and Q&A session of the teams that follow it. (Teams may not observe other presentations until AFTER they have made their presentation.) The same observation guidelines apply to the Local Chapter Competitions and Business Sessions with mentors.
Equipment: Teams should plan to bring a laptop and a copy of their presentation on a zip drive or CD. Each presentation room is equipped with a large-screen projector and a room PC to run your presentation. You may also connect your laptop directly to the projector to present. Please let us know if you have any questions or have any special equipment needs. If you have questions about audio/video equipment, please contact the Chapter Organizer as soon as possible. Please note that if your presentation contains video, graphics, and/or sound, you should let us know in advance, and we will try to help ensure that your presentation works properly at the Competition. However, based on past experience, we cannot guarantee that video, graphics, and sound will work 100% of the time.
ELEVATOR PITCH Overview The Elevator Pitch is your business overview that you should be able to deliver powerfully and concisely to any investor who happens to ride the same elevator as you. The first impression is critical in capturing the attention of a potential investor or customer. The elevator pitch should provide enough information to pique the interest of potential investors and strategic partners. It should provide a clear picture of the company and its solution. It should be delivered effectively and succinctly.
Rules
Each team will be given a maximum of 60 seconds to present its elevator pitch to the panel of judges. Index cards or other notes will not be permitted for the Elevator Pitch Competition, as you would not expect to have the benefit of these notes in a real life situation. This presentation will be given by one team member. Only current students can present at the competition. The 60 second Elevator Pitch will be uninterrupted. There
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will be no Question and Answer period. Teams will be judged on their oral presentation alone.
Judges Evaluation Criteria
Judges will score each team that presents on a scale of 1 (excellent) to 7 (very poor). The teams with the best (i.e., lowest) overall scores will be the winners. Judges should evaluate each team based on how convincingly they present their business concept, such that the judge would want to learn more about the company as a potential investor. The best teams are those teams that an investor would want to schedule a follow-up meeting for further discussion because they believe this company represents a strong investment opportunity. The best teams should communicate the following:
Clear explanation of their product/service and the problem it solves How their company is unique and differentiated Sizable market opportunity and ability to penetrate that market Current Development Stage Viable business model Clear measures of success and potential exit opportunities Understanding of how much money is needed and how it will be used
Suggested Guidelines To help you focus your Elevator Pitch, remember to highlight the following key topics – remember you’re just providing a “teaser” to the audience with the purpose of having them ask "tell me more about your company":
Product and service offering (e.g., the problem and your solution) Brief description of offering What problem or need does it solve? What are the benefits of your product? Unique Differentiators Why is this unique or different from competition? Is this difference sustainable (e.g., patents, intellectual property, etc.)? Market Opportunity & Target Customers Who are the targeted customers? What is the size of the market? Is there evidence they will buy the product? Current Development Stage What is the current status of technology/venture? What are key next steps? Business Model – how will the company generate profitable revenue? Milestones and Success Metrics 10 | P a g e
What are the success metrics? What is the exit strategy? Capital Needs How much funding is needed to move forward? How will the money be used? Why is your business an attractive investment?
Common Elevator Pitch Mistakes No energy and passion in the presentation Too much technical language; focusing on the technology rather than the customer need Failure to explain what customer problem you are trying to solve Too much discussion about the idea and product and not enough explanation about the market, business opportunity, and revenue models Listing too many names of clients or partners. Indicate how many clients and name a few big names to spark interest
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