9 Steps to Become Investor-Ready

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Have a great idea for a business pitch? Here are nine steps that will take you from concept to investor-ready, from Texas Venture Labs at The University of Texas at Austin.

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9 Steps to Become Investor-Ready

  1. 1. Courtesy of the Global Venture Labs Investment Competitionat The University of Texas at Austin9 Steps to BecomeInvestor-Ready
  2. 2. Step 1: Find your passion
  3. 3. “First, find something you arepassionate about, and thenperform a ton of validationsto vet your idea.”♥Rob Adams, Director of theJon Brumley Texas Venture Labs
  4. 4. Step 2: look for market pain
  5. 5. “This year we saw a big uptickin clean energy technologies,such as the Seismos team fromthe McCombs MSTC program,winners of the Wells FargoClean Energy prize.”Rob Warren, Director, Global VentureLabs Investment Competition
  6. 6. Step 3: refine your target
  7. 7. “You have to focus in order to create agood pitch or a good business plan”Michael Garel, Texas Venture LabsInvestment Competition winner 2012
  8. 8. Step 4: build an amazing team
  9. 9. “Successful businesses don’t dependon unique ideas. Instead, they rely ona team’s ability to execute–to build,market, and sell a product that’s better,faster, or cheaper, and to do so to nearsuperhuman perfection.”Rob Adams, Director of theJon Brumley Texas Venture Labs
  10. 10. Step 5: network like crazy
  11. 11. “For these guys to come to a competitionlike this, it is a tremendous opportunityfor them to increase their network, getfeedback from the judges and keep ontrack to launch the business.”Rene J.R. Fernandes, Fundacão Getulio Vargas,Competition Director for Latin America
  12. 12. Step 6: ditch the buzzwords
  13. 13. “Don’t use a term like ‘solutions provider.’It’s too generic. It’s like saying your carcomes with physics—of course you’re asolutions provider. It’s just a generic,empty, junk-food statement.”Rod Kurtz, Editor of OPEN Forum, GVLIC Judge
  14. 14. Step 7: be ready for lots of questions
  15. 15. What is the projected lifetime of the product?Can you Explain the fixed and variable costs in your model?What is your legal exposure in theevent of a product malfunctionor misuse?can this idea be patented?How will youbuild the market?What is your pricing model based on?How many of your potentialcustomers will break downinto each price category?Why are you using a flat pricingmodel versus transactional pricing?Are others doingthe same thing?Why would customers pay for this service when other options are free?
  16. 16. Step 8: knock their socks off
  17. 17. “Visolis did an excellent job presenting theirventure and responding to the judges’questions, and we are excited they are the2013 Venture Labs Investment Competition’sGlobal Champion.”Rob Warren, Director, Global VentureLabs Investment Competition
  18. 18. Step 9: celebrate your wins
  19. 19. “Our competition motto is InvestorReady. That exactly describes thebusiness teams we are attracting,and every year gets better.”Rob Adams, Director of theJon Brumley Texas Venture Labs
  20. 20. In 30 years:TRENDS:Shifts in GVLIC Teams:CONSUMER PRODUCTSNo. of major investmentcompetitions in the U.S.30 YEAR SNAPSHOTmillionawardedcountriesrepresentedjudgesparticipatedstudentscompetedfounded by two Texas MBAstudents.competition, because itproves to be far frommoot.SUO2 IOhio SAcquundisBlacCarneAfterraisecapitThe HundisHISTORY OF THE GLOBAL VENTURELABS INVESTMENT COMPETITION
  21. 21. 2013 COMPETITION profileENERGY25%SERVICES12.5%GLOBAL FOCUS:AustraliaBrazilChinaColombiaFranceUniversity of Oslo, NorwayThis firm currently has 16 employ-ees and generates $4.2 million inrevenue.Auditude– 2005University of California, Los AngelesAcquired by Adobe in 2011 for $120million.uShip– 2004The University of Texas at AustinPrivately held firm headquarteredin Austin. Raised $23 million inprivate equity.Honorable Mention:Spectrohound– 2004University of Manitoba, CanadaJames Swirsky used his experience atGVLIC to launch a movie productioncompany. His 2011 film “Indie Game:The Movie” won awards at both theSundance Film Festival and SXSW.40%internationalteamsGermanyGreat BritainIndiaNorwayThailandPRIZE PACKAGE:Cash prize: $78,000Hosting and cloud service: worth $24,000Austin Technology Incubator launch package: valued at $25,000Invitation to ring the NASDAQ closing bell: PRICELESS2013 COMPETITION PROFILECLEANENERGY25%LIFESCIENCES25%PRODUCTS25%SERVICES12.5%IT12.5%INDUSTRIES:1984 2013TRENDS:Shifts in GVLIC Teams:CONSUMER PRODUCTSAND SERVICESTECHNOLOGYCLEAN ENERGYPRODUCTSIT2014 projected shifts:No. of major investmentcompetitions in the U.S.4181984 2013No. of competingteams1140racaThunKBrCu$2QThHaan20coOSaKntheqSqUnTheere
  22. 22. ColombiaFrancePrivatin AusprivatHonoraSpectUniverJamesGVLICcompaThe MoSundaNorwayThailandPRIZE PACKAGE:Cash prize: $78,000Hosting and cloud service: worth $24,000Austin Technology Incubator launch package: valued at $25,000Invitation to ring the NASDAQ closing bell: PRICELESS2013 COMPETITION profile
  23. 23. Thanks for reading. Get more information onentrepreneurship, faculty expertise, businessschool news and more:www.mccombs.utexas.edu UT McCombs School of Business @UTexasMcCombs

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