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					Starting up a new company

                National Tsing Hua University, Taiwan
                      Entrepreneurship Program
                               July 4, 2005

                              Yue-Teh Jang
                            The Vertical Group




 July 4, 2005                                 Yue-Teh Jang
Agenda
   Personal experience
   Key questions
   Business Plan
   Funding
   Incubator
   Get started


    July 4, 2005          Yue-Teh Jang
The Vertical Group
    $300 Million evergreen
         Seed capital
         Start up
         Corporate buy-out
         Public market

    Medical Device and Biotech

    New Jersey and California
    July 4, 2005              Yue-Teh Jang
       Key questions

Who


         when
                                      How

What


         Where


 Why


        July 4, 2005   Yue-Teh Jang
Why starting a new company
   All the good reasons
       Fed up with large corporation
       To become own boss
       To fulfill a dream
       To make a lot of money


   But beware of potential consequences
       To work harder and longer hours
       To carry more stress and liability
       To lose family and own health/life

    July 4, 2005                   Yue-Teh Jang
The Entrepreneur
(vs. engineer vs. scientist)
 Risk taking

 Sense of urgency

 Visionary

 Market driven

 Determined but flexible

 Team player

 Generous

  July 4, 2005           Yue-Teh Jang
      The 3 components of starting
      a new company



                         Team
Idea/Technology

                                      Equally important
                                  Respect each other’s value


             Money




          July 4, 2005          Yue-Teh Jang
Typical start up mistake
(By technical people)



                   Market
                 The product
                                    or




  July 4, 2005                 Yue-Teh Jang
Business Plan Writing
   The purpose of writing a plan
   Who reads the business plan?
   How much detail?
   How honest?
   What’s a business plan?
       The 5 “W”



    July 4, 2005         Yue-Teh Jang
Mission Statement
(The Elevator Pitch)
   My friend and I (Who)
   Would like to start a smart SW design and distribution company,
    PopX (What)
   to detect and kill pop-up ads, because everyone hates pop-ups
    and is willing to pay whatever it costs to eliminate them,
    thereby making my company very profitable (why).
   We hope to start mid 2006 in my father’s garage
    (When/Where), and need to raise NT$500,000 from Tsing Hua
    Alumni Venture Fund and hire 20 of my top schoolmates who
    possess the latest SW development skill (How).
   We hope to use this money to build an advanced working
    prototype for beta test by July 2006. By that time, the company
    should be worth $15M based on bench mark with XtermiPop.
   The investors will enjoy a handsome return (The punch line).



    July 4, 2005                       Yue-Teh Jang
How VC’s decide on an
investment
   Market Need –
       What problem are you trying to solve ?
       How big is the problem ?
   The Proposed Solution -
       Does it work in theory ?
       Does it really work ?
   Regulatory path/Insurance Reimbursement
   Manufacturing
   Distribution channel
   Competition
   IP
   Team
     July 4, 2005                           Yue-Teh Jang
What goes through a VC’s mind
   If I put X dollars in right now,
       how much more do I need to invest?
       How much (Y) would my investment become?
       How long would it take?
       What’s the probability of success?
       How hard do I need to work?
   How does this compete with my other
    opportunities?


    July 4, 2005               Yue-Teh Jang
Business plan contents
   Executive Summary
   The problem/market need
   The solutions
   The status of development/testing
   The execution plan
       Milestones
       Budget
       Manufacturing method/cost
       Marketing/Sales channel
       Regulatory compliance
   Protect from competition
       IP
       Regulatory process
   The Team
   Risk factors
   Funding requirements
     July 4, 2005                       Yue-Teh Jang
Sources of Funding
    Own money                  (Self funding)


    Friends and family         (Angel money/Equity)


    Bank/Lender                (Debt)


    Corporate partner           (Equity/License
                                        fee/Royalty)


    Venture Capital Firm       (Equity)

    July 4, 2005            Yue-Teh Jang
The Incubator
   What’s the value of an incubator?
       Mentorship
       Connection
       Facility
       Cost saving


   Do you need to start from an incubator?

    July 4, 2005          Yue-Teh Jang
The role of a successful
     Entrepreneur
   A   visionary
   A   missionary
   A   cheerleader
   A   philanthropist




    July 4, 2005         Yue-Teh Jang
Good Luck and Have Fun

                 Starting a Company


  July 4, 2005          Yue-Teh Jang

				
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posted:10/27/2011
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