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Dare To Dream - Info


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Dare To Dream - Info

  1. 1. Dare to Dream Grant Program Information Session 2007 - 08 Paul Kirsch and Rachel Ulrich January 16, 2008 COPYRIGHT © 2006 THE REGENTS OF THE UNIVERSITY OF MICHIGAN ALL RIGHTS RESERVED
  2. 2. Agenda <ul><li>Dare to Dream in the context of business development and ZLI activities </li></ul><ul><li>What are Dare to Dream grants </li></ul><ul><li>Three types of grants </li></ul><ul><li>Applications: content and review </li></ul><ul><li>Moving beyond Dare to Dream </li></ul><ul><li>Timeline </li></ul><ul><li>Questions </li></ul>
  3. 3. Dare to Dream encourages <ul><li>..the thoughtful development of student-led businesses </li></ul><ul><li>AND </li></ul><ul><li>..the development of student entrepreneurial skills and understanding </li></ul>
  4. 4. Dare to Dream Grants are <ul><li>Unique to Michigan </li></ul><ul><li>Sponsored by Eugene Applebaum </li></ul><ul><ul><li>A $100,000 program, no “winner” </li></ul></ul><ul><ul><li>$500, $1,500 and up to $10,000 awards </li></ul></ul><ul><ul><li>Multiple awardees in each phase in each round </li></ul></ul><ul><li>Every Fall and Winter semester </li></ul><ul><li>Documented by written deliverables of student progress through the business development activities </li></ul>
  5. 5. Dare to Dream Grants are <ul><li>Awarded to businesses or concepts that demonstrate </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Value </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><li>Relative importance of criteria change from Phase to Phase of the Dare to Dream evaluation process </li></ul>Motivation Value Innovation
  6. 6. Dare to Dream Grants are <ul><li>Encouragement for students to </li></ul><ul><ul><li>Take on real business development activities </li></ul></ul><ul><ul><ul><li>Execute primary research with customers, users, partners, technologists </li></ul></ul></ul><ul><ul><ul><li>Incorporate </li></ul></ul></ul><ul><ul><ul><li>Recruit and build a team </li></ul></ul></ul><ul><ul><ul><ul><li>email [email_address] for more information </li></ul></ul></ul></ul><ul><ul><li>Explore opportunities </li></ul></ul><ul><ul><ul><li>Is your solution the right solution for market need? </li></ul></ul></ul><ul><ul><ul><li>Is there a better market for your solution? </li></ul></ul></ul><ul><ul><li>Expend effort and dedicate time </li></ul></ul><ul><ul><ul><li>Fit these activities into already busy Michigan schedule </li></ul></ul></ul>
  7. 7. Dare to Dream Grants are NOT <ul><li>A competition: many teams are given the opportunity to receive grants based on the merit of the application </li></ul><ul><li>For academic credit </li></ul><ul><li>An endorsement or criticism of the business or idea </li></ul><ul><li>An endorsement or criticism of the management team </li></ul>
  8. 8. 3 Phases of Dare to Dream <ul><li>Opportunity grants initiate business ideation </li></ul><ul><ul><ul><li>What would the product be? Who uses this? </li></ul></ul></ul><ul><ul><ul><li>Move beyond “this is a cool idea/technology” </li></ul></ul></ul><ul><li>Assessment grants force developmental issues </li></ul><ul><ul><ul><li>Is there enough “there” there to move forward? </li></ul></ul></ul><ul><ul><ul><li>Does this idea pass a feasibility test? </li></ul></ul></ul><ul><li>Integration grants drive the team to </li></ul><ul><ul><ul><li>Build upon the “go” decision </li></ul></ul></ul><ul><ul><ul><li>Assemble a full business plan to address all concerns of launching and growing a business </li></ul></ul></ul>
  9. 9. Deliverables <ul><li>Opportunity </li></ul><ul><ul><li>Application is Technology/Product Description </li></ul></ul><ul><ul><li>Deliverable is the Business Hypothesis </li></ul></ul><ul><li>Assessment </li></ul><ul><ul><li>Application is Business Hypothesis </li></ul></ul><ul><ul><li>Deliverable is the Feasibility Study </li></ul></ul><ul><li>Integration </li></ul><ul><ul><li>Application is Feasibility Study </li></ul></ul><ul><ul><li>Deliverables are the full Business Plan and Investor Presentation </li></ul></ul>
  10. 10. Opportunity Application: Product/Technology Description <ul><li>Simple statement of the technology, product, or service </li></ul><ul><li>Plain language description of the technology, product or service </li></ul><ul><ul><ul><li>What makes this unique? </li></ul></ul></ul><ul><ul><ul><li>How is this different? </li></ul></ul></ul><ul><li>Who are the typical users and/or customers? </li></ul><ul><ul><ul><li>Needs, pains, desires </li></ul></ul></ul><ul><li>Discussion of the potential business </li></ul><ul><ul><ul><li>What types of activities </li></ul></ul></ul>
  11. 11. Opportunity Deliverable & Assessment Application: Business Hypothesis <ul><li>Statement describing the proposed business </li></ul><ul><li>Plain language description of the technology, product or service </li></ul><ul><li>What is the competition already in the market? </li></ul><ul><ul><ul><li>Is the market pain being satisfied already? How? </li></ul></ul></ul><ul><ul><ul><li>Why will customers pay for your solution? </li></ul></ul></ul><ul><li>Discussion of the proposed business </li></ul><ul><ul><ul><li>How will the business be built around this product? </li></ul></ul></ul><ul><ul><ul><li>What value-added activities will the business conduct? </li></ul></ul></ul>
  12. 12. Assessment Deliverable & Integration Application: Feasibility Study <ul><li>Target market assessment </li></ul><ul><ul><ul><li>Pain </li></ul></ul></ul><ul><ul><ul><li>Size, and growth rate </li></ul></ul></ul><ul><ul><ul><li>Options to grow into other segments </li></ul></ul></ul><ul><li>Overall market assessment </li></ul><ul><ul><ul><li>Overall market size and growth rate </li></ul></ul></ul><ul><ul><ul><li>Macro-trends </li></ul></ul></ul><ul><li>Industry assessment </li></ul><ul><ul><ul><li>Five forces analysis </li></ul></ul></ul><ul><ul><ul><li>Likely changes </li></ul></ul></ul><ul><ul><ul><li>(continued) </li></ul></ul></ul>
  13. 13. <ul><li>Firm </li></ul><ul><ul><ul><li>Proprietary elements </li></ul></ul></ul><ul><ul><ul><li>Competitive advantage, superior performance </li></ul></ul></ul><ul><ul><ul><li>Economic viability </li></ul></ul></ul><ul><li>Team </li></ul><ul><ul><ul><li>Mission, risk, congruence of goals </li></ul></ul></ul><ul><ul><ul><li>Ability to execute Critical Success Factors (CSF), and manage around Fatal Flaws (FF) </li></ul></ul></ul><ul><ul><ul><li>Connectedness </li></ul></ul></ul><ul><ul><li>Conclusion </li></ul></ul>Assessment Deliverable & Integration Application: Feasibility Study
  14. 14. Integration Deliverables: Business Plan & Investor Presentation <ul><li>Business Plan </li></ul><ul><ul><li>Executive summary </li></ul></ul><ul><ul><li>Operational plan: how to get there from here </li></ul></ul><ul><ul><li>Full financial model: narrative and spreadsheets </li></ul></ul><ul><ul><li>Financing and exit issues </li></ul></ul><ul><li>Investor Presentation </li></ul><ul><ul><li>Documentation and presentation for target funders </li></ul></ul><ul><ul><li>In-person, persuasive appeal to secure funding </li></ul></ul><ul><ul><ul><li>Friends and family </li></ul></ul></ul><ul><ul><ul><li>Angel </li></ul></ul></ul><ul><ul><ul><li>Institutional </li></ul></ul></ul><ul><ul><ul><li>Grantors generally do not receive presentations </li></ul></ul></ul>
  15. 15. Dare to Dream Applications <ul><li>Student-led teams convince ZLI of </li></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Value </li></ul></ul><ul><ul><li>Motivation </li></ul></ul><ul><li>Application and review criteria </li></ul><ul><ul><li>Different requirements and evaluation for Opportunity, Assessment, and Integration </li></ul></ul>
  16. 16. Evaluation of Opportunity Applications <ul><li>Panelists individually value items </li></ul><ul><li>Panel asked to specifically consider: </li></ul><ul><ul><li>Innovation, uniqueness </li></ul></ul><ul><ul><li>Understanding of relationship to users </li></ul></ul><ul><ul><ul><li>Payers vs. non-payers </li></ul></ul></ul><ul><ul><ul><li>Technologists vs. general public </li></ul></ul></ul>
  17. 17. Evaluation of Assessment Applications <ul><li>Panelists individually value items </li></ul><ul><li>Panel asked to specifically consider: </li></ul><ul><li>Clarity of the proposed business </li></ul><ul><li>Tech/prod/service </li></ul><ul><ul><li>Uniqueness </li></ul></ul><ul><ul><li>Current solutions </li></ul></ul><ul><ul><li>Comparison to status quo </li></ul></ul><ul><li>Customer identification </li></ul><ul><ul><li>Desires, needs, pains </li></ul></ul><ul><ul><li>Currently being served </li></ul></ul><ul><li>Business model </li></ul><ul><ul><li>What company does </li></ul></ul><ul><ul><li>How it makes money </li></ul></ul>
  18. 18. Evaluation of Integration Applications <ul><li>Panelists individually value items </li></ul><ul><li>Does application convince panel of feasibility </li></ul><ul><li>Panel asked to specifically consider: </li></ul><ul><li>Target market viability </li></ul><ul><li>Addressable market potential </li></ul><ul><li>Industry and competitive situation </li></ul><ul><li>Firm advantages </li></ul><ul><li>Economic viability </li></ul><ul><li>Team ability, ambition, connectedness </li></ul>
  19. 19. Applications <ul><li>Available on the Institute website </li></ul><ul><li> </li></ul><ul><li>Three sections: </li></ul><ul><ul><li>WHO: </li></ul></ul><ul><ul><ul><li>Team information </li></ul></ul></ul><ul><ul><li>WHAT: </li></ul></ul><ul><ul><ul><li>OP: Technology/product/service description </li></ul></ul></ul><ul><ul><ul><li>AS: Business Hypothesis </li></ul></ul></ul><ul><ul><ul><li>IN: Feasibility Study </li></ul></ul></ul><ul><ul><li>DELIVERABLES: </li></ul></ul><ul><ul><ul><li>Know what you are agreeing to do! </li></ul></ul></ul>
  20. 20. Grant Recipients <ul><li>Announced at the Michigan Business Challenge Awards Ceremony, Feb. 15 </li></ul><ul><li>At least half the team members must attend at least the corresponding Business Development Seminar on March 7 </li></ul><ul><ul><li>Hypothesis at 9:00 </li></ul></ul><ul><ul><li>Feasibility Study at 12:00 </li></ul></ul><ul><ul><li>Business Plan at 3:00 </li></ul></ul>
  21. 21. Grant Deliverables <ul><li>Intermediate </li></ul><ul><ul><li>Opportunity – Hypothesis – not applicable </li></ul></ul><ul><ul><li>Assessment - Feasibility Study – 3/28 </li></ul></ul><ul><ul><li>Integration - Business Plan – 4/25 </li></ul></ul><ul><li>Final </li></ul><ul><ul><li>Opportunity – Hypothesis – 3/2 </li></ul></ul><ul><ul><li>Assessment - Feasibility Study – 4/25 </li></ul></ul><ul><ul><li>Integration - Business Plan – 7/25 </li></ul></ul>
  22. 22. Symposia and Events <ul><li>Mingle ‘n’ Match </li></ul><ul><li>Casual, networking events </li></ul><ul><li>Foster discussion between students with business ideas and their colleagues in search of concepts </li></ul><ul><li>Students with ideas present one-minute overviews </li></ul><ul><li>Informal discussions about the presented ideas, needs and ambitions </li></ul><ul><li>AFTER THE EVENT: presenters provided with the contact information of interested students </li></ul><ul><li>Low impact. Only expectation is to continue the discussion </li></ul><ul><li>Contact: </li></ul>February 7 Ann Arbor SPARK
  23. 23. Moving Beyond Dare to Dream <ul><li>Tie in to other entrepreneurial activities </li></ul><ul><ul><li>ES electives </li></ul></ul><ul><ul><ul><li>ES615: New Venture Creation </li></ul></ul></ul><ul><ul><ul><li>ES715: Innovation </li></ul></ul></ul><ul><ul><li>Michigan Business Challenge </li></ul></ul><ul><ul><ul><li>Iterative, multi-cycle tournament for student-led start-ups </li></ul></ul></ul><ul><ul><ul><li>Over $40,000 in prize money </li></ul></ul></ul><ul><ul><li>Marcel Gani self-hosted internships: Student CEOs paid to work on their own start-ups </li></ul></ul><ul><ul><ul><li>Applications due on 3/21 </li></ul></ul></ul>
  24. 24. Past Participants <ul><li>Mobius Microsystems – Winter 2002 </li></ul><ul><ul><li>Relocated to CA, raised $8MM </li></ul></ul><ul><li>Style High - Assess Fall 2004 </li></ul><ul><ul><li>Now Spirit Shop, operating in AA, post-raise </li></ul></ul><ul><li>Incept Biosystems – Integrate Fall 2004 </li></ul><ul><ul><li>Currently in multimillion fund raise </li></ul></ul><ul><li>Gregory Sports Management – Assess Fall 2005 </li></ul><ul><ul><li>Operating as a lifestyle business </li></ul></ul><ul><li>MicroNeural Interfaces– Assess Winter 2006 </li></ul><ul><ul><li>Competing in MBC 2007, currently semifinalist </li></ul></ul>
  25. 25. Past Participants
  26. 26. Past Participants
  27. 27. Questions? Dare to Dream Grants Paul Kirsch Rachel Ulrich Program Manager Program Coordinator [email_address] [email_address]
  28. 28. Questions <ul><li>What kind of businesses are you looking for? </li></ul><ul><ul><li>These are student “Dreams” not ZLI Dreams </li></ul></ul><ul><ul><li>Preference for applications that show </li></ul></ul><ul><ul><ul><li>Innovation </li></ul></ul></ul><ul><ul><ul><ul><li>innovation does not have to be technology </li></ul></ul></ul></ul><ul><ul><ul><li>High growth potential </li></ul></ul></ul><ul><ul><ul><li>Committed teams </li></ul></ul></ul><ul><ul><li>Discourage restaurants and real estate flippers </li></ul></ul><ul><ul><li>Applications do not have to be for future Fortune 100 firms </li></ul></ul>
  29. 29. Questions <ul><li>How does this relate to business plan competitions? </li></ul><ul><ul><li>These are separate programs </li></ul></ul><ul><ul><li>Mutually supportive </li></ul></ul><ul><ul><li>D2D is more developmental, incubator–ish </li></ul></ul><ul><ul><li>BPCs are more competitive, more personal with more feedback </li></ul></ul>
  30. 30. Questions <ul><li>Do you have to have a business student on the team </li></ul><ul><ul><li>Yes, for Assessment and Integration </li></ul></ul><ul><ul><li>No, for Opportunity </li></ul></ul>
  31. 31. Questions <ul><li>Can I apply for Dare to Dream in my last semester? </li></ul><ul><ul><li>Yes, for Opportunity and Assessment </li></ul></ul><ul><ul><ul><li>Deliverables are due the SAME semester as awards are granted </li></ul></ul></ul><ul><ul><li>No, for Integration </li></ul></ul><ul><ul><ul><li>Deliverables are due six months after award date </li></ul></ul></ul>
  32. 32. Questions <ul><li>What if the Feasibility Study shows the idea is NOT feasible? </li></ul><ul><ul><li>Team still receives $$ if the Feasibility Study is completed properly </li></ul></ul><ul><ul><li>Emphasis is learning HOW to evaluate ideas, WHAT questions to ask, WHEN </li></ul></ul><ul><ul><ul><li>Answers are NOT predetermined </li></ul></ul></ul>
  33. 33. Questions <ul><li>Can I be on more than one team? </li></ul><ul><li>Can I make more than one submission? </li></ul><ul><ul><li>Yes, but…. </li></ul></ul><ul><ul><li>Instills doubt about commitment, focus and motivation </li></ul></ul><ul><ul><li>Discouraged </li></ul></ul>
  34. 34. Questions <ul><li>If someone receives an Assessment grant, they can still apply later for an Integration grant and receive the $10,000 for the same idea, correct? </li></ul><ul><ul><li>Absolutely </li></ul></ul><ul><ul><li>The grant applications do not have to be in sequential terms </li></ul></ul><ul><ul><li>However, one business can only get each grant once </li></ul></ul>
  35. 35. Questions <ul><li>Do you have to wait a whole term to move forward with your idea? </li></ul><ul><ul><li>The Dare to Dream grants are awarded once a semester </li></ul></ul><ul><ul><li>You can work independently on your business to get it started </li></ul></ul><ul><ul><li>If means you “leapfrog” from Opportunity to Integration, that is okay </li></ul></ul>
  36. 36. Questions <ul><li>How in depth is the application for Opportunity? I only have a very vague idea </li></ul><ul><ul><li>Opportunity grants are designed to be very easy to apply for </li></ul></ul><ul><ul><li>What you need is a well thought out and clearly articulated product/technology/service description </li></ul></ul>
  37. 37. Questions <ul><li>What is the benefit of applying for Opportunity instead of Assessment? </li></ul><ul><ul><li>Opportunity was originally designed for non-business students who have an idea but are unsure what to do with it </li></ul></ul><ul><ul><li>If you can comfortably complete the Assessment application, there really is no advantage to applying for Opportunity first </li></ul></ul>
  38. 38. Questions <ul><li>Can you add pictures to your application? </li></ul><ul><ul><li>Use them sparingly </li></ul></ul><ul><ul><li>You should be able to describe your product/technology with plain language </li></ul></ul>
  39. 39. Questions <ul><li>Do judges prefer huge businesses with designs to revolutionize the market? </li></ul><ul><ul><li>Not at all </li></ul></ul><ul><ul><li>The review panels are encouraged to look for successful ideas of all sizes, not just the next Wal-Mart or Google </li></ul></ul>
  40. 40. Mingle ‘n’ Match <ul><li>Casual, networking events </li></ul><ul><li>Foster discussion between students with business ideas and their colleagues in search of concepts </li></ul><ul><li>Students with ideas present one-minute overviews </li></ul><ul><li>Informal discussions about the presented ideas, needs and ambitions </li></ul><ul><li>AFTER THE EVENT: presenters provided with the contact information of interested students </li></ul><ul><li>Low impact. Only expectation is to continue the discussion </li></ul><ul><li>Contact: </li></ul>Feb. 7 5 p.m. Ann Arbor SPARK
  41. 41. ZLI Activities for 2007-08 Frankel Commercialization Fund Wolverine Venture Fund Michigan Business Challenge & Intercollegiate Competitions Entrepreneurial MAP domestic & international opportunities Marcel Gani Internship Program (includes self-hosted internships) Williamson CoE/RSB E-education Initiative Entrepreneurial Studies Courses Action-based Learning New Business Development Seminars ZLI Office Hours, Coaching and Executive Consulting Counseling Michigan Growth Capital Symposium Private Equity Conference Entrepalooza: Exploration of entrepreneurship across multiple industries and business stages Symposia/Events Zell and Mondry Entrepreneurial Scholarships Mingle ‘n’ Match Academics
  42. 42. No Yes No Yes Business Hypothesis Application Feasibility Study Integration Grant Business Plan Feasibility Study Application Assessment Grant Business Hypothesis Opportunity Grant Nifty Product or Technology $500 $1,500 Up to $10,000 Does it work? Reassess Product or Technology Is it Feasible? Reassess Hypothesis