• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Entrepreneurship 101: Different forms of Entrepreneurship
 

Entrepreneurship 101: Different forms of Entrepreneurship

on

  • 13,202 views

Part of the MaRS Entrepreneurship 101 series. ...

Part of the MaRS Entrepreneurship 101 series.

An outline of various technology business structures
Speaker: Tony Redpath

Download the audio presentation and post questions on the MaRS Blog:
http://blog.marsdd.com/2006/11/02/entrepreneurship-101-debt-vs-equity/

Statistics

Views

Total Views
13,202
Views on SlideShare
12,552
Embed Views
650

Actions

Likes
11
Downloads
821
Comments
1

16 Embeds 650

http://www.academicafrica.org 229
http://www.squamble.com 129
http://www.workhomemoney.com 113
http://wvc-ecenter.com 68
http://www.marsdd.com 38
http://www.slideshare.net 26
http://workhomemoney.com 22
http://translate.googleusercontent.com 8
https://twitter.com 6
http://ec2-67-202-42-205.compute-1.amazonaws.com:8080 3
http://webcache.googleusercontent.com 2
https://usm.blackboard.com 2
http://courses.barn.za.net 1
http://209.85.135.104 1
http://marsdd.com 1
http://moodle.academicafrica.org 1
More...

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

CC Attribution-NonCommercial-ShareAlike LicenseCC Attribution-NonCommercial-ShareAlike LicenseCC Attribution-NonCommercial-ShareAlike License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

11 of 1 previous next

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • great powerpoint presentations that are of much help to facilitate learning.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Entrepreneurship 101: Different forms of Entrepreneurship Entrepreneurship 101: Different forms of Entrepreneurship Presentation Transcript

    • Entrepreneurship 101 November 1, 2006 Different forms of Entrepreneurship .
    • Three basic questions: • What does my business look like ? • What resources do I need? • How do I fit into the rest of the world? .
    • Overview • Different types of business • Where do they fit into the rest of the world • How do you finance your business • What factors do investors look at .
    • Technology Commercialization KNOWLEDGE Universities / Hospitals Government Labs PATENTS (Novel, Useful, Non-Obvious) Company II Engineering Project R & D Project Concept Production Sales Engineering Prototype Lab Prototype Marketplace R & D Project Engineering Project Production Sales Concept Lab Prototype Engineering Prototype Company I .
    • Business types - Consulting • You provide advice, based on your specialized knowledge .
    • Technology Commercialization KNOWLEDGE Universities / Hospitals Government Labs PATENTS (Novel, Useful, Non-Obvious) Company II Engineering Project R & D Project Concept Production Sales Engineering Prototype Lab Prototype Marketplace R & D Project Engineering Project Production Sales Concept Lab Prototype Engineering Prototype Company I .
    • Consulting …. Cont’d • Can start as a one-person business • May have a technical, management, or marketing focus • Often stay small, but consulting engineering firms can be large (e.g Hatch Associates) • Often operate via a virtual network of consultants • Need liability insurance • Capital costs low .
    • Business types - Consulting • Q: How much should I charge? * A: What is the client’s alternative cost? .
    • Business types: Service • You provide a service to existing businesses .
    • Technology Commercialization KNOWLEDGE Universities / Hospitals Government Labs PATENTS (Novel, Useful, Non-Obvious) Company II Engineering Project R & D Project Concept Production Sales Engineering Prototype Lab Prototype Marketplace R & D Project Engineering Project Production Sales Concept Lab Prototype Engineering Prototype Company I .
    • Service business…. Cont’d • Technical service businesses often provide analytical services • May provide custom clinical trials • Classic IT service providers • Can be very small or very large • Capital costs can be quite high .
    • Business types: Product • You have real article ( pharmaceutical compound, medical device, consumer product….) that you wish to take to the market .
    • Technology Commercialization KNOWLEDGE Universities / Hospitals Government Labs PATENTS (Novel, Useful, Non-Obvious) Company II Engineering Project R & D Project Concept Production Sales Engineering Prototype Lab Prototype Marketplace R & D Project Engineering Project Production Sales Concept Lab Prototype Engineering Prototype Company I .
    • Product …. Cont’d • Examples range from cottage industry craft producers up to General Motors • Capital needs vary widely, but there will usually be a need for at least working capital • “Mercedes in the driveway” vs. high growth .
    • Types of Financing • Debt – You borrow from someone, using some asset as security, an amount that will have to be repaid • Equity – You sell a piece of your venture to someone in exchange for an investment in the venture • Bootstrap – You self-fund by using the profits of your business to grow the business .
    • The Lemonade Stand Example • Assume you’re 8 years old and you need $20 to set up a lemonade stand • Return Debt 50:50 Equity • Rain $10 lender loses $10 partner loses $15 • ent gets $0 ent gets $5 • Cloud $30 lender is even partner loses $5 • ent gets $10 ent gets $15 • Sun $50 lender is even partner makes $5 • ent gets $30 ent gets $25 .
    • Sources of Debt Financing • You – your mortgage • You – your credit cards • The 3 F’s – Friends, Family and Fools • Banks – Can lend to you (e.g. line of credit) or to your venture – Lend against assets or receivables • Venture Debt funds .
    • Sources of Equity Financing • The 3F’s again – Friends, Family and Fools • Angels (aka high net worth individuals) – Generally like to invest in areas that they have worked in or are comfortable with – Can add valuable hands-on experience – http://www.angelinvestor.ca/splash.asp – http://www.tvg.org/toronto_angel_group.htm – http://www.the-scientist.com/2005/10/24/36/1 • Venture Capital Funds – Different funds invest at different stages in the growth of a company – http://www.cvca.ca/ .
    • Special Financing Sources • NSERC / CIHR / SSHRC Intellectual Property Mobilization Program (IPM) • CIHR Proof of Principle – http://www.cihr-irsc.gc.ca/e/25487.html • NSERC Idea to Innovation (I2I) Program – http://www.nserc.ca/professors_e.asp?nav=profna v&lbi=b4 • NRC - IRAP – http://irap-pari.nrc-cnrc.gc.ca/main_e.html .
    • The Financing Life Cycle Public Markets Venture Capital Seed Funds t en Angels m st ve Grants s In le Sa R is k Expansion Concept Start-up Growth © Primaxis Technology Ventures Inc.
    • The Financing Life Cycle Public Markets Venture Capital Seed Funds t en Angels m st ve Grants In R is k s le Sa Expansion Concept Start-up Growth © Primaxis Technology Ventures Inc.
    • The Financing Life Cycle R is k a n t: f in e n ce lf - t m Se ves In s Grants le Sa Expansion Concept Start-up Growth © Primaxis Technology Ventures Inc.
    • What do Financing Sources Look For ? Technology Risk • Stage of Development • Impact & Application • Sustainable Advantage .
    • Technology Risks • Stage of Development (concept ? proof of concept ? prototype of product) • Product development path (costs and “risks”) • Technology impact • Scope of application • Competitive technologies • Disruptive technologies • Reliance on infrastructure • Ease of scale-up, technology transfer, copy • Manufacturability and costs .
    • Due Diligence and Valuation Criteria Technology Risk • Stage of Development • Impact & Application • Sustainable Advantage IP Risk Market Risk • Nature and Scope • Size and Growth • IP Form • Dynamics • Ownership • Competition • Enforceability • Customers • IP Building • Distribution Channels • Freedom to Operate Execution Risk • Reputation / Leadership • Commitment • Market Knowledge • Experience .
    • Intellectual Property Risks • Nature of the invention • Scope of the invention • IP form: Patent, know-how, software • Ownership of IP - Lingering rights of funding agencies or students • Level of IP protection – NA, worldwide • Competitive research activity, patent activity, availability of Licensees • Prior disclosure - publications or conferences • Enforceability .
    • Market Risks • Market size, dynamics and growth potential • Route to market, access, scalability • USPs of the products or services • Nature of the customers • Lead customers • Market or industry drivers • Competitive landscape and profit margins • Regulatory barriers or opportunities .
    • Execution Risk • Management vision for the company • Management leadership ability • Commitment and drive • Recognized technology expertise • Knowledge of the market, networks • Skills required to move the technology through all stages of development and product launch • Reputation in the marketplace .