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Cambridge UniversityTransferable Skill WorkshopEntrepreneurship & Business Modelling
Welcome & ContentIntroduction – who we areThe KED Experience – a work in progressThe Innovation AgencyEntrepreneurs   Wher...
IntroductionEntrepreneurs change the world one day at a time.        Cambridge University Entrepreneurship & Business Mode...
Push – Pull                     What - WHY                     Technology Push                              Versus        ...
The KED ExperienceEvolving PhD research to Commercialisation
The KED ExperienceAt the beginning, there is nothing but problems.  Why do I even want to do something   entrepreneurial? ...
Better things to think aboutWhy am I doing what I do?Why might other people be interested in what Im doing?Why do (or dont...
Attacking the problemBusiness is a lot like academic research, it is just a different problem spaceThe right mindset just ...
KEDs solutions so farKnowledge Transfer SecondmentWorking closely with Ian (and other people that know what theyre doing)....
In generalIs there any way to draw on the expertise of   others?This is the idea behind The Innovation Agency – building o...
SummaryThe Why? of doing anythingBuilding a Why? into a suitable How?: posing the questionTechnologists become entrepreneu...
Explanations of the participants           research     2 examples focussing on WHY
The Innovation Agency   A brief introduction
WHY?Recognising the need to help Researchers, Inventors  and Innovators to develop their IPR without falling  down the usu...
But First...... The workshop  Framing the Problem             Commercialisation  Cambridge University Entrepreneurship & B...
Business BackgroundBusiness is a lot like Engineering, it is just a different problem spaceProblem definition is a key par...
Where to Start  Some Basics
Lets start with some really           basic questionsWhat stage is the Business at?How much effort will it take to get it ...
What Stage is your Business at?   Early Stage challenges       The “Valley of Death”
The Funding GapCambridge University Entrepreneurship & Business Modelling
Once the gap is understood     how do you get across?How determined are you?  What lengths will you go to to get your tech...
Building the pitch
Getting others to                believe in youEvangelising about your technology.  There are probably few people who will...
A believable storyA succinct message, elevator pitch, or whatever you want to call it isimportant. If that gets people int...
Testing the pitch Where? To Whom?
NetworkingHow many Networking groups are there in Cambridge?     General X21                  Clean Tech X5               ...
Intellectual Property or Time to             Market?        A different viewpoint
Everybody wants PatentsThis is an generally accepted view from Academia, Investors, Industry Partners.WHY?  Protection fro...
Everybody want Patents (2)Patents are of little value if you cant sell the technologyPatents are of NO tangible value if y...
Patent Wars.....Facebook had 58 patents – until they bought 1 thousand  patents from Microsoft for $550million.Microsoft b...
The Importance of a TeamWhy outsiders believe in a Team more readily              than an individual
The Importance of a TeamUnderstand your own strengths and weaknessesUnderstand your position in a business  Are you a corn...
Finding YouMyers Briggs Type Indicator – MBTIDISC – Dominance, Influence, Steadiness, ComplianceAnd Where you fit in a tea...
Investors emphasise teamInvestors choose to invest on the basis of liking  and believing in the team almost as much as  li...
Business Modelling
Introducing the  Business Model Canvas Developed as by Alex Osterwalderwww.businessmodelgeneration.com
Business Model CanvasCambridge University Entrepreneurship & Business Modelling
Intro VideoCambridge University Entrepreneurship & Business Modelling
Cambridge University Entrepreneurship & Business Modelling
Cambridge University Entrepreneurship & Business Modelling
Guesstimates / Assumptions    Users/Customers                                                                       Reso...
Guesstimates / Assumptions    Revenue Streams                                                                           ...
The WorkshopDevelop a canvas.....
Get ready to pivot    Key insights come from talking to people    15 minutes with a customer beats 10 hours    hypothesi...
The ways the canvas gets used...      Different levels of mastery
Levels of Mastery    Level 0 Strategy – The Oblivious: Focus on products/value    propositions alone rather than the valu...
The Investment DeckGetting the message across in an         engaging way
Hockey Sticks!Cambridge University Entrepreneurship & Business Modelling
Why, How, What    Engagement is best gained when the WHY is    explained first........ if you nail the WHY, the    How an...
What the Investors say they want to see in an investment deck
The Investment Deck    The Perfect Pitch using x7 slides:Bindi Karia, VC Emerging Business lead for                 Micros...
The Investment Deck1) Your Value Proposition2) The Problem3) Your Solution4) The Marketplace5) Your Team6) Business Execut...
The Investment Deck The Perfect Pitch using X10 slides:Guy Kawasaki, former chief evangelist              Apple Inc
The Investment Deck1) Problem2) Your Solution3) Business Model4) Underlying magic technology5) Marketing and Sales6) Compe...
The Investment Deck The Perfect Pitch using X13 Slides:Mark Suster, Entreprenuer turned VC
The Investment Deck1) Team Bio2) 100 Meter view of your company3) Problem definition4) How do you solve the problem: Demo?...
The Investment Deck Top ten lies of Entreprenuers
The Investment Deck                         Top ten lies of Entreprenuers1) “Our projections are conservative.”2) “Jupiter...
The Investment Deck  Top ten lies of Investors
The Investment Deck                            Top ten lies of Investors1) “I liked your company, but my partners didnt.”2...
The Investment Deck                Question:Do you know the difference between the lies of entrepreneurs and the lies of i...
The Investment Desk          Answer:  The Investors have money
The Innovation AgencyHelping develop your business......  henry.gomersall@theinnovationagency.org     Ian.sharp@theinnovat...
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Entrepreneurship & business modelling workshop

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  1. 1. Cambridge UniversityTransferable Skill WorkshopEntrepreneurship & Business Modelling
  2. 2. Welcome & ContentIntroduction – who we areThe KED Experience – a work in progressThe Innovation AgencyEntrepreneurs Where to start Testing the pitch (gathering intelligence) IPR or TTM Building a teamThe Innovation AgencyBusiness ModellingKey elements for an Investment deck Cambridge University Entrepreneurship & Business Modelling
  3. 3. IntroductionEntrepreneurs change the world one day at a time. Cambridge University Entrepreneurship & Business Modelling
  4. 4. Push – Pull What - WHY Technology Push Versus Market PullPre-conceived ideas about commercialisation Cambridge University Entrepreneurship & Business Modelling
  5. 5. The KED ExperienceEvolving PhD research to Commercialisation
  6. 6. The KED ExperienceAt the beginning, there is nothing but problems. Why do I even want to do something entrepreneurial? What is the product? Who is the customer? Do I understand the customer and what they want? (probably not) Admin issues? More pressing issues, like “How am I going to eat?” Cambridge University Entrepreneurship & Business Modelling
  7. 7. Better things to think aboutWhy am I doing what I do?Why might other people be interested in what Im doing?Why do (or dont) I enjoy research?What do I want from life? Crucially:What are the motivations? – the WHYS? Cambridge University Entrepreneurship & Business Modelling
  8. 8. Attacking the problemBusiness is a lot like academic research, it is just a different problem spaceThe right mindset just “clicks” - Like research, the individual problems can be made easily tractable.Why is the risk of depending on yourself greater than that of depending on others?Talk to everyone, all the time. Cambridge University Entrepreneurship & Business Modelling
  9. 9. KEDs solutions so farKnowledge Transfer SecondmentWorking closely with Ian (and other people that know what theyre doing).Finding several suppliers of ultrasound kit, and then getting them interested.Turning the research into a tech demo – which took longer than expected.Short term contract work to keep eating. Cambridge University Entrepreneurship & Business Modelling
  10. 10. In generalIs there any way to draw on the expertise of others?This is the idea behind The Innovation Agency – building on the skills and knowledge of those that have gone before.There is still a need to plant the seed, and understand the methodology. Cambridge University Entrepreneurship & Business Modelling
  11. 11. SummaryThe Why? of doing anythingBuilding a Why? into a suitable How?: posing the questionTechnologists become entrepreneurs is a big ask. In the next section we will Introduce The Innovation Agency. Cambridge University Entrepreneurship & Business Modelling
  12. 12. Explanations of the participants research 2 examples focussing on WHY
  13. 13. The Innovation Agency A brief introduction
  14. 14. WHY?Recognising the need to help Researchers, Inventors and Innovators to develop their IPR without falling down the usual trapsBased on an audit approach with a experienced and critical eye on the outcomes of the processAnswering the questions partners, investors and customers will askProviding a framework to develop an exploitation route without the need to become an entrepreneur Cambridge University Entrepreneurship & Business Modelling
  15. 15. But First...... The workshop Framing the Problem Commercialisation Cambridge University Entrepreneurship & Business Modelling
  16. 16. Business BackgroundBusiness is a lot like Engineering, it is just a different problem spaceProblem definition is a key part of the path to building a businessThe “Team” aspects of a business are absolutely crucial to the potential success of the business Cambridge University Entrepreneurship & Business Modelling
  17. 17. Where to Start Some Basics
  18. 18. Lets start with some really basic questionsWhat stage is the Business at?How much effort will it take to get it to a saleable product/service/licensable solution?Who are your target customers?What is your product worth?Is it protected?Seems like a lot of questions........... Cambridge University Entrepreneurship & Business Modelling
  19. 19. What Stage is your Business at? Early Stage challenges The “Valley of Death”
  20. 20. The Funding GapCambridge University Entrepreneurship & Business Modelling
  21. 21. Once the gap is understood how do you get across?How determined are you? What lengths will you go to to get your technology commercialised?Too late for research funding?Too early for Angels?Definitely too early for VCs?Where else can you go? Cambridge University Entrepreneurship & Business Modelling
  22. 22. Building the pitch
  23. 23. Getting others to believe in youEvangelising about your technology. There are probably few people who will get either your vision or the capability of your technology better than you. Your challenge is to explain it in sufficiently simple terms to excite people about what it is, what it can do and the value in it.OK – so how do you really do this? Cambridge University Entrepreneurship & Business Modelling
  24. 24. A believable storyA succinct message, elevator pitch, or whatever you want to call it isimportant. If that gets people interested then you can expand on the description. Enthusiasm and Clarity are crucial. Cambridge University Entrepreneurship & Business Modelling
  25. 25. Testing the pitch Where? To Whom?
  26. 26. NetworkingHow many Networking groups are there in Cambridge? General X21 Clean Tech X5 Entrepreneurs X5 Software + Apps Mobile & Wireless Social Enterprise X1 X2 X12 Women X5 Life Science X1 Cambridge University Entrepreneurship & Business Modelling
  27. 27. Intellectual Property or Time to Market? A different viewpoint
  28. 28. Everybody wants PatentsThis is an generally accepted view from Academia, Investors, Industry Partners.WHY? Protection from competition Something Tangible to “own” at the point of failure Kudos of filing a patentWHY Protect, does it actually help the commercialisation efforts? Cambridge University Entrepreneurship & Business Modelling
  29. 29. Everybody want Patents (2)Patents are of little value if you cant sell the technologyPatents are of NO tangible value if you dont have funds to protect themPatents come into their own when (if) you are challenged for infringement of someone elses patents – then a patent is a component for negotiations Cambridge University Entrepreneurship & Business Modelling
  30. 30. Patent Wars.....Facebook had 58 patents – until they bought 1 thousand patents from Microsoft for $550million.Microsoft bought the pool 1 year ago from AOL for $1bnGoogle bought Motorolas patent pool for $12.5bn in 2011Samsung, HTC, Acer, General Dynamics, Onkyo, Velocity Micro, Wistron, & Viewsonic all pay Microsoft for every Android phone they make! Cambridge University Entrepreneurship & Business Modelling
  31. 31. The Importance of a TeamWhy outsiders believe in a Team more readily than an individual
  32. 32. The Importance of a TeamUnderstand your own strengths and weaknessesUnderstand your position in a business Are you a cornerstone? Are you the Visionary? Are you the Delivery specialist? Are you the Financial specialist?Interesting reading: The Beermat Entrepreneur, Mike Southern & Chris West Cambridge University Entrepreneurship & Business Modelling
  33. 33. Finding YouMyers Briggs Type Indicator – MBTIDISC – Dominance, Influence, Steadiness, ComplianceAnd Where you fit in a team....... or at least where your preferences areBelbin – Team Role Theory Cambridge University Entrepreneurship & Business Modelling
  34. 34. Investors emphasise teamInvestors choose to invest on the basis of liking and believing in the team almost as much as liking the businessTeam and culture (company culture) are essential to enable success Cambridge University Entrepreneurship & Business Modelling
  35. 35. Business Modelling
  36. 36. Introducing the Business Model Canvas Developed as by Alex Osterwalderwww.businessmodelgeneration.com
  37. 37. Business Model CanvasCambridge University Entrepreneurship & Business Modelling
  38. 38. Intro VideoCambridge University Entrepreneurship & Business Modelling
  39. 39. Cambridge University Entrepreneurship & Business Modelling
  40. 40. Cambridge University Entrepreneurship & Business Modelling
  41. 41. Guesstimates / Assumptions Users/Customers  Resources  Number of monthly  Number of employees: 2k active FB users: 500M (source: FB factsheet) (source: FB factsheet)  Number of servers: ???  Number of daily active  Costs FB users: 250M (source:  Average salary FB factsheet) (guesstimate): 150k  Average time users (source: glassdoor.com spend on FB per FB salaries) month: 1′400 minutes  HR costs: 300M -> 46 min/day (deduction) (guesstimate source:  IT costs (guess):???? FB factsheet) Cambridge University Entrepreneurship & Business Modelling
  42. 42. Guesstimates / Assumptions Revenue Streams  How could its advertising  Advertising – Average revenues (e.g. banners and CPM: $0.625 (source: text advertising breakdown) Blogpost) really be?  Annual page views: 3.12  What budgets are Fortune Trillion (source: Blogpost) 500 companies putting into  Facebook Credits: 30% Facebook advertising? revenue cut (source:  How many SMEs and micro- TechCrunch) enterprises are using OPEN QUESTIONS Facebook for advertising? How high could Facebook’s  How much could Facebook costs for its IT infrastructure already be earning from (capital expenditure and Facebook Credits, even if operating costs be? this virtual currency is still in BETA? Cambridge University Entrepreneurship & Business Modelling
  43. 43. The WorkshopDevelop a canvas.....
  44. 44. Get ready to pivot Key insights come from talking to people 15 minutes with a customer beats 10 hours hypothesising Be flexible and willing to be wrong Encourage criticism and use the feedback Be aware of the limits of theoretical models Talk to people – all the time Be Humble Cambridge University Entrepreneurship & Business Modelling
  45. 45. The ways the canvas gets used... Different levels of mastery
  46. 46. Levels of Mastery Level 0 Strategy – The Oblivious: Focus on products/value propositions alone rather than the value proposition AND the business model. Level 1 Strategy – The Beginners: Use the Business Model Canvas as a checklist. Level 2 Strategy – The Masters: Outcompete others with a superior business model where every one of the business model building blocks reinforce each other (e.g. Nintendo Wii, Nespresso, Dell). Level 3 Strategy – The Invincible: Continuously disrupt themselves while their business models are still successful (e.g. Apple, Amazon.com). Cambridge University Entrepreneurship & Business Modelling
  47. 47. The Investment DeckGetting the message across in an engaging way
  48. 48. Hockey Sticks!Cambridge University Entrepreneurship & Business Modelling
  49. 49. Why, How, What Engagement is best gained when the WHY is explained first........ if you nail the WHY, the How and What is straightforward Investors are no different  Why – what is the motivation, societal need, benefit that your business brings  How are you going to deliver the Why?  What, in detail, are you going to do? Cambridge University Entrepreneurship & Business Modelling
  50. 50. What the Investors say they want to see in an investment deck
  51. 51. The Investment Deck The Perfect Pitch using x7 slides:Bindi Karia, VC Emerging Business lead for Microsoft
  52. 52. The Investment Deck1) Your Value Proposition2) The Problem3) Your Solution4) The Marketplace5) Your Team6) Business Execution7) Business Model Cambridge University Entrepreneurship & Business Modelling
  53. 53. The Investment Deck The Perfect Pitch using X10 slides:Guy Kawasaki, former chief evangelist Apple Inc
  54. 54. The Investment Deck1) Problem2) Your Solution3) Business Model4) Underlying magic technology5) Marketing and Sales6) Competition7) Team8) Projections and milestones9) Status and timeline10)Summary and call to action Cambridge University Entrepreneurship & Business Modelling
  55. 55. The Investment Deck The Perfect Pitch using X13 Slides:Mark Suster, Entreprenuer turned VC
  56. 56. The Investment Deck1) Team Bio2) 100 Meter view of your company3) Problem definition4) How do you solve the problem: Demo?5) Market Sizing6) Warning: Market sizing pitfalls7) Competition8) Customer Adoption – Traction9) Team10) Financial Projections11) Use of Proceeds12) Fundraising process – next steps13) Appenix Slides: Back up slides Cambridge University Entrepreneurship & Business Modelling
  57. 57. The Investment Deck Top ten lies of Entreprenuers
  58. 58. The Investment Deck Top ten lies of Entreprenuers1) “Our projections are conservative.”2) “Jupiter says our market will be 50 billion in ten years.”3) “Several Fortune 500 companies are set to do business with us.”4) “No one else can do what we are doing.”5) “Hurry up because other investors are about to do a deal.”6) “The large companies in our market are too slow and too dumb to compete.”7) “Our management team is proven.”8) “We filed patents so our intellectual property is protected.”9) “Our product will go viral.”10)“All we have to do is get 1% of the market.” Cambridge University Entrepreneurship & Business Modelling
  59. 59. The Investment Deck Top ten lies of Investors
  60. 60. The Investment Deck Top ten lies of Investors1) “I liked your company, but my partners didnt.”2) “We are patient investors who want to help you build a great company.”3) “If you get a lead, well invest too.”4) “There are no companies in our portfolio that conflict with what youre doing.”5) “Show us some traction, and well invest.”6) “We love to co-invest with other firms.”7) “Were investing in your team.”8) “We have lots of bandwidth to dedicate to your company.”9) “This is a plain, vanilla termsheet.”10)“We will get other companies in our portfolio to work with you.” Cambridge University Entrepreneurship & Business Modelling
  61. 61. The Investment Deck Question:Do you know the difference between the lies of entrepreneurs and the lies of investors ?
  62. 62. The Investment Desk Answer: The Investors have money
  63. 63. The Innovation AgencyHelping develop your business...... henry.gomersall@theinnovationagency.org Ian.sharp@theinnovationagency.org
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