Information on how to apply for the Competitive Start Fund

1. Competitive Start
Fund
January 2015
John O’Dea, HPSU

2. Supports early stage start-ups
Competitive call - 6 calls in 2014 – over 80 projects
Funding = €50k matched with €5K from companies
10% Equity
Mentor or SPRINT development programme
20% Female
Generally younger
What is it?

3. Activation Energy

4. Ideally at least a prototype and in a position to do
customer validation
We want to see a team [an issue for some NF projects?]
Half of them will pivot in our experience - but the quicker
they can do it the better....
What stage?

5. This is a pretty good offer – State is putting up 90% of
the money, effectively valuing the business at €.5m
On average,
• 18 months to get from start to CSF
• 18 months to get from CSF to seed round
Realistic about how long it takes and what the state
should be doing....
CSF

6. Not decided but…….
3 calls open to all sectors
1 call open to Graduate Entrepreneurs
1 call open to Female Entrepreneurs
1 call open to Regions (i.e. outside Dublin)
1 call open to Manufacturing Technologies
1 call open to Ag Tech
2015?

7. Results from the last
four CSF calls
Last four CSF calls;
Previous Developmental support %
No accelerator /entrepreneur development program prior to our investment 35%
Completed New Frontier programme 31%
Completed NDRC Launchpad 12%
Completed some development programme 22%
50 HPSUs that we have funded to date this year;
Previous Developmental support %
completed variety of Accelerator Programmes 24%
Completed New Frontiers 18%

8. The Application
What’s new?
The video pitch
The Panel Pitch

9. Eligibility criteria:
Now 5 years from date of registration
Form a company when you have to, don't get an off-
the-shelf one.........................
€100k now includes directors loans.
Video Submission:
Now mandatory, carrying 25% of marks.
What’s new?

10. Tips
Facts, Evidence, Specifics, No assumptions
Links for additional Information
Revenue model(s)
Involve someone who has been successful
Prepare early, register when the call opens
Know the marking scheme.

11. Video: Outline business proposition
25% of the overall score
1. The Product or Service - What are you going to sell? (1 min)
2. The Customer - Who are you going to sell it to? (1 min)
3. The USP - Why are they going to buy it from you (1 min)
4. Route to Market - How are you going to sell it to them? (1 min)
5. The Business Model - How are you going to make money? (1 min)
6. 2 minutes to add anything additional
Application

12. Video
Imagine you are speaking to a real investor;
Make the video look interesting and professional
If product demo - show it! You Tube or Slideshare
Show the team
Introduce yourselves
Test ; bandwidth, speakers working etc.,
Do test runs until you feel comfortable

13. Assessment 1
Two Assessors
Marking criteria

14. Promoter Team
Promoters’ profile / track record and domain knowledge: (25%) Max Score = 25
21-25 World Class – Strong track record in Start-ups and/or target industry, exceptional team with little to
no gaps in the team. Very strong domain knowledge, potential thought leader in this domain.
Committed company advisers are available to support the proposal. Very clearly defined allocation of
resources and main promoters will commit to working exclusively on this project.
16-20 Advanced –Track record extremely strong and strong domain knowledge. Company advisers are
available to support the proposal. Promoters committed to deliver. Good mix of skills in the team.
11-15 Average – Track record good and reasonable domain knowledge. Commitment of the company
advisers is uncertain. Overall commitment of the promoters is uncertain. Gaps exist in the team.
6-10 Basic - Teams track record non-existent. Little domain knowledge demonstrated. Very little
commitment from the promoters. Gaps exist in the team.
1-5 Poor – Ill defined and poorly presented. Didn’t address the question
Scoring

15. Product/Service & Market Opportunity
Product/Service & Market Opportunity (25%) Max Score = 25
21-25 Very High – Strong value proposition clearly articulated. Very strong market
opportunity identified and excellent understanding of the competitive
landscape.
16-20 High – Value proposition clearly articulated. Strong market opportunity
identified and comprehensive understanding of the competitive landscape.
11-15 Satisfactory – Value proposition articulated. Reasonable market opportunity
identified and good understanding of the competitive landscape.
6-10 Low – Value proposition poorly articulated. Limited market opportunity
identified and little understanding of the competitive landscape.
1-5 Very Low – Ill defined and poorly presented. Didn’t address the question
Scoring

16. Execution of Business Plan
Company capability to execute: (25%) Max Score = 25
21-25 Very High – Clear vision and very well defined strategy on how the plan
delivers. Very clearly defined objectives and allocation of resources. Clear
implementation plan. Company is well structured financially and has the
financial resources to fully execute the proposal. Challenges clearly identified
16-20 High – Defined strategy on how the plan will be delivered. The proposal is well
defined. Company has financial resources to execute the proposal. Challenges
identified.
11-15 Satisfactory –Project satisfactorily developed to support the business plan.
The proposal is not clearly defined. Company has the financial resources to
execute key aspects of the proposal. Some challenges identified.
6-10 Low –Some attempt made at connecting the proposal to the business plan;
infrastructure, resources, implementation and business outcomes unclear. Main
challenges not identified.
1-5 Very Low - Ill defined and poorly presented. Didn’t address the question
Scoring

17. Product/Service Innovation
Innovation (15%) Max Score = 15
13-15 Very High – Highly Innovative, a first in terms of technology or business model, significant
differentiator in the market, and if successful should be defensible.
10-12 High – Significant level of innovation, will give the company an edge in the market.
7-9 Satisfactory – Reasonably innovative, will allow the company to compete.
4-6 Low – Modest level of innovation, routine/defensive redesign, "me-too" product.
1-3 Very Low - Little or no innovation or incremental improvement.
Scoring

18. Ability to deliver Key Commercial and Technical Milestones
The potential to ensure delivery of the product/service and/or to get the project to a key
funding milestone over the coming 12 months (10%) Max Score = 10
9-10 Very High –There is a well defined strategy and roadmap with very clear,
achievable and measurable technical and commercial milestones.
6-8 High – There is a defined strategy and roadmap with clear, achievable and
measurable technical and commercial milestones.
4-5 Satisfactory –There is an outline strategy and roadmap with technical and
commercial milestones that are reasonably clear, achievable and measurable..
2-3 Low - Some attempt made at addressing the question.
1 Very Low - Ill defined and poorly presented. Didn’t address the question
Scoring

19. Panel Pitch
4 min pitch, 4 min Q&A
3 questions to be covered – 10 marks for each
1. Why would someone be compelled to purchase?
2. Is your team capable of executing on this business plan?
3. The impact of €50K on delivering this business plan?
Practice, practice – advice, someone who has pitched
for investment.
Bring the team – let them say something meaningful.
Study the panel – what they might be interested to hear.

20. The Panel
Different panel each time
Jury of your peers
Siobhan King Hughes (CEO Sensormind, ex Global Answers,
AOL, Oracle, etc)
Anatoly Lebedev (Strategic Partnership Development
Manager, EMEA at Google, Seedcamp, Mars),
Keith Bradley, (Head of digital at Independent Newspapers,
ex CTO of Changing Worlds, Amdocs, UCD etc].

21. Legal issues post
approval
If company not established when making the
application…….
Failure to have clear allotment of shares can lead to
protracted negotiation between shareholders;
If don’t indicate on the application that some shares are
held by a corporate entity - leads to additional drafting
and approvals…..
Sort out IP issues especially if there is a licence
agreement with a third level institutions…….
Main reason for delay is solicitors inexperienced in these
type of investments. Always ask if they have done this
type of investment previously.