The 16th Annual Edward L. Kaplan, ’71
NEWVENTURECHALLENGE
NVC KICKOFF
Steven N. Kaplan
Faculty Director, Neubauer Family
Distinguished Professor of
Entrepreneurship and Finance
Ellen Rudnick
Executive Director, Clinical
Professor of Entrepreneurship
November 1, 2011
Agenda
•
What is the NVC ?
•
History
•
How it works: Schedule / Entry Rules and Guidelines
•
What goes into a Feasibility Summary?
•
Why you should participate?
•
Panel Discussion and Q & A
Edward L. Kaplan, ’71, New Venture Challenge
• The New Venture Challenge is one of the premier business creation competitions
• If you have a viable business model, the NVC will:
• Improve the business model substantially.
• Improve the business plan substantially.
• Increase the likelihood you will be funded.
• Provide seed funding to winners.
• Whether you start a business or not, you will learn a lot
• Brings together resources from all over the entrepreneurial community
• Sponsored by Ed Kaplan, ’71, founder, chairman, and CEO emeritus of Zebra
Technologies
History: 1997-2011
• The NVC has helped launch more than 75
companies, which have raised over $235M in
equity capital, including over $135M in the last
year
Many kinds of businesses
• Sarvega
• LiquidTalk
• Medspeed
• TixNix
• Companies have exited -- sold or merged -in excess of $125M
• Flyswat
• Bump
• Brightroom
• BenchPrep
• 1997 had 33 entries, in 2000, internet
bubble year 105, last year we had 72
entries (plus 60+ entries combined to the
Global NVC & Social NVC)
• Midway
• FutureSimpe
Pharmaceuticals • Quantitative Insights
• Clickshift
• Agile Diagnosis
• Over 100 entrepreneurs, service providers,
investors, per year are involved
• Cash prizes will total at least $75K in
addition to free space in the ARCH New
Business Incubator and free services from
our sponsors
• Bobtail
• Epotec
•Pretty Quick
How it works: Entry Rules and Guidelines
Team Composition
•
At least one currently registered student at Chicago Booth – campus or
part-time.
•
At least one University of Chicago student needs to be a founder / integral
member of the team.
•
•
Student cannot be a consultant.
•
Student cannot be a minor player.
•
10% equity.
Size of team: no minimum or maximum.
How it works: Entry Rules and Guidelines
Originality of Business Ideas
•
Generally idea should be original.
•
Business plans for early stage ventures acceptable if:
•
•
a Chicago Booth or University of Chicago student is a founder; or
•
a University of Chicago or Chicago Booth student is in senior management
team of the venture; and
•
company has not already received funding from venture capitalists or
other institutional investors. Outside funding from friends, family and other
individual investors up to $500,000 is acceptable.
Business plans that have participated in the past as part of other university
business plan competitions are not eligible unless approved by one of the NVC
faculty or coaches.
How it works: Entry Rules and Guidelines
Protection of Intellectual Property
•
The University, sponsors, and organizers of the NVC have taken all
reasonable measures to assure that all contestants retain their rights
to the Business Plan and Intellectual Property.
•
The protection of these rights is ultimately the responsibility of each
contestant.
•
Contestants are urged to mark as CONFIDENTIAL any portion of their
Entries, which they consider to be proprietary, or of a sensitive
nature.
How it works: Entry Rules and Guidelines
Equity Agreements
•
If the team wins prize money, the members will enter into an equity
agreement whereby the award converts to a pro rata equity share for
Chicago Booth in the new business if the company receives funding or
enters into a business combination transaction.
Deadlines
•
Timelines for submission of feasibility summaries (Feb. 6, 2012) and
full business plans (April 27, 2012) are not flexible.
Important Dates
Fall Quarter
11/1/11
11/19/11
Winter Quarter
01/05/12
02/06/12
02/23/12
02/27/12
Spring Quarter
03/26/12
04/27/12
05/18/12
05/24/12
NVC Kickoff, followed by networking event
NVC Gleacher Center Saturday Kickoff
Workshop – How to Write a Feasibility Summary
Harper Center, Classroom C-25, 6-8 pm
Phase I feasibility summaries due at 10 am to
Harper Center, Suite 207
Announce teams that will advance to Phase II
Orientation Session for Phase II teams
Harper Center, Classroom C-25, 6-8 pm
BUS 34104 Developing a New Venture course begins
Full business plans due at 10 am to Harper Center, Suite 207
Announce teams that will advance to Phase III Finals
Finals at Harper Center, Classroom C-25
NVC Timeline
First round: Feasibility Summaries
• Due February 6
• Maximum of 8 pages
• Notified Feb. 23
Second Round: Develop full Business Plan
•
•
•
•
•
•
In conjunction with Bus. 34104 taught by Kaplan and Rudnick
Classroom coaches Deutsch, Darragh, Rosenberg, Henikoff
First session Feb. 27; class formally begins Mar. 26
Teams present plans in class twice to entrepreneurs and VCs
Feedback is brutal but incredibly helpful
Course is a lab course, not a lecture course. Provides an environment and
resources to develop and greatly improve your business ideas.
• Highly-rated class and process
Final Round: 8+ teams present to judges on May 24
NVC Timeline
Second Round: Develop Full Business Plan
•
In conjunction with Bus. 34104 taught by Kaplan and Rudnick.
• Classroom coaches Deutsch, Darragh, Rosenberg, Henikoff.
•
First session Feb. 27; class formally begins Mar. 26.
•
Teams present plans in class twice to entrepreneurs and VCs.
• Feedback is brutal but incredibly helpful.
•
Course is a lab course, not a lecture course.
• Provides an environment and resources to develop and greatly
improve your business ideas.
• You drive, we help. We do not hold your hand.
Global NVC
•
This will be the 5th year of the Global NVC
•
EXP and AXP students and alumni take online classes
•
US Executive MBA students may participate in traditional NVC
•
On a different timeline --- began this month
•
Finals in Chicago in March
•
Winner of this competition may advance to the NVC finals on May 24, 2011
2011 Global NVC winner Playence advanced to the NVC Finals
Social NVC
Second year for the Social New Venture Challenge
What is a Social Venture?
– Sacrifice some profit for social impact
– Less than 10x returns
– Community development, education, orphan drugs, global health & poverty
alleviation, environmental
SNVC Kick-off/Big Problems-Big Ideas: November 9 5:00 pm Harris School
– Feasibility summaries due: February 6
– Announce Phase II teams: February 23
– New Social Ventures class: begins Tuesday, March 27, 2012
What Goes Into a Feasibility Summary?
•
What is the business opportunity?
–
What problem is it solving?
–
Who is the customer?
–
How large is the market for this product?
–
Who are the other competitors or competing technologies?
–
How will you make money?
•
What is your strategy?
•
Who is your team?
•
Why will this succeed?
•
Be concise. Use simple language.
•
Feasibility Summary workshop on January 5th will discuss in more detail
•
Sample summaries on NVC website
Why Should You Participate?
• NVC and course give you time to focus.
•
NVC and course will improve plans a great deal.
•
Access to judges and resources.
• Judges provide contacts / funding.
•
Idea will not be stolen.
• Most plans / ideas seen by many qualified eyes.
• If it is easy to steal, it is not worth doing anyway.
• Has never been a problem.
•
You will learn a huge amount about how to evaluate and start a business.
NVC Website
www.chicagonvc.com
Key dates,
deadlines, and
events for the 201112 New Venture
Challenge
Join online team
building site
where people
can post ideas
and team
openings
• Link to sample
business plans,
NVC class
workshops,
sample equity
agreement
Find official rules
and regulations,
sample
feasibility
summaries
Check here for the
latest news on
current & former
NVC Companies
NVC LinkedIn Group: Ideas Marketplace
Linkd.in/NVCideas
Get feedback on a
new business idea
Find team members for
your NVC Entry!
Share your resume &
expertise to let other
students find you!
Articles and
resources
Resources: Find an Idea
Passion • Problem • Pain Point
Events
Technologies
Websites
• SeedCon Conference &
• Ideation Sessions
• LinkedIn Website
• Argonne
• Built in Chicago
• Innovation Workshops:
• Entrepreneurship
Fast Pitch: Nov 17, 18
• Industry Meet-ups: Fall,
Winter
• EVC Startup Factory
events: All Year
 Big Ideas, Big
Problems - Nov 9
 Neil Kane - Nov 15
@UChicago.edu
Resources: Find an Idea
Passion • Problem • Pain Point
Events
Technologies
Websites
• SeedCon Conference &
• Ideation Sessions
• LinkedIn Website
• Argonne
• Built in Chicago
• Innovation Workshops:
• Entrepreneurship
Fast Pitch: Nov 17, 18
• Industry Meet-ups: Fall,
Winter
• EVC Startup Factory
events: All Year
 Big Ideas, Big
Problems - Nov 9
 Neil Kane - Nov 15
@UChicago.edu
Resources: Build a Team
Capability
(Being Able)
Credibility
(Believability)
Complementary Skills
Your team has the skills and ability to
execute
Passion for Idea
Having a shared interest in solving a
problem or creating an opportunity
Know-how
Your team has a perceived
expertise/intelligence in the area
(e.g. advisors, Corporate Lab etc.)
Resources: Vet an Idea
1
Risk 1
Risk
Development
of a website
Risk 3
2
Inventory and
consignment
Risk 2
Creation of
warehousing
capabilities
A pathdependent
risk
3
Risk 4
Customer
demand
A deal-killer
risk
4
Risk 5
Operating
5
Risk 6
Product Mix
6
Time
*Gilbert, Eyring. “Beating the Odds when You
Launch a New Venture
Resources: Vet an Idea
*Test these key risks first
Risk 4
4
Risk
Customer
demand
Risk 6
6
Product Mix
1
Risk 1
Development
of a website
Risk 3
Risk 2
Inventory and
consignment
2
Creation of
warehousing
capabilities
3
Time
*Gilbert, Eyring. “Beating the Odds when You
Launch a New Venture
Resources: MVP Tools
Tools for Testing Behavior and Preference:
Survey
Cold Call
Interviews
Focus Group
A/B Testing
Prototyping
Video
Sketches
Landing Page
Website
Analytics
Outsource
Crowdsource
3D Prototyping
• Google Sketch Ups
• IIT Idea Shop
• Inventables
UI Sketches
• Balsamiq
• Ai, Ps, Id
• PowerPoint
• Paper/Post-its
Websites
• ThemeForest.net
• Wordpress
• Launchrock.com
Outsource & Crowdsource
• ODesk
• Mechanical Turk
• Crowdspring
Survey
• MailChimp
• Google Forms
• Survey Monkey
Analytics
• Ad Words
• Facebook Ads
• Google Web Optimizer
(A/B Testing)
Developer Shops
• Doejo
• Dashfire
• Adalyze
• Sphereinc
And many more…
People
NVC Faculty and Coaches
Social NVC Faculty and Coach
Steven N. Kaplan
Robert H. Gertner
Neubauer Family Distinguished Professor of
Entrepreneurship and Finance, Faculty Director, Polsky
Center for Entrepreneurship
Ellen A. Rudnick
Clinical Professor of Entrepreneurship, Executive
Director, Polsky Center for Entrepreneurship
Troy Henikoff
Serial entrepreneur, cofounder and director of
Excelerate Labs, cofounder of Sure Payroll
Bob Rosenberg
Associate VP Public Affairs Communication, Chicago
Booth Adjunct Professor
Waverly Deutsch
Clinical Professor of Entrepreneurship
Joel F. Gemunder Professor of Strategy and Finance
Linda Darragh
Clinical Professor of Entrepreneurship, Director of
Entrepreneurship Programs, Polsky Center for
Entrepreneurship
Global NVC Faculty
Kathleen Fitzgerald
Director of Academic Support, Executive MBA
Programs, Adjunct Assistant Professor
NVC Kickoff Panelists
Troy Henikoff
NVC coach, serial entrepreneur, co-founder of Excelerate Labs and Sure Payroll
Nirav Batavia, Owl Invest
NVC Finalist, 2011
Anu Jayaraman, Agile Diagnosis
NVC 1st place winner, 2011
Coco Meers, Pretty Quick
NVC 3rd place winner, 2011
Alex Pendenko, Swingbite
NVC 3rd place winner, 2011
The 16th Annual Edward L. Kaplan, ’71
NEWVENTURECHALLENGE
Networking Session
Winter Garden