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small business partnership by taltal


									                        Instructions for Application Template
Please create a concise (no more than 2-pages) application with non-proprietary information that addresses the
business elements described in the tables below. Your application should tell a coherent story that tells how the
investor will profit by providing you with financing, and how the investment will be protected. As you address
each of the business case elements, describe how they contribute to, and strengthen, this story (if possible use the
suggested order provided in the Template). The Application Template in Microsoft Word format can be downloaded
by clicking here. The instructions for filling out the Application Template are given in the next two charts.

You should start by defining your venture’s category (Early Seed, Early Venture or Expansion Capital / Project
Finance) depending on its development stage. You will be judged within this category among other companies at a
similar stage. The following table broadly provides some distinguishing characteristics that will help you identify the
stage that best describes your venture. We understand that some ventures will not have all the outlined

                 Defining Your Venture’s Stage of Development & Category

 Early Seed                                Early Venture                           Expansion Capital / Project
  Pre-revenue, negative cash flow,         Seed investment already                Proven technology with
 minimal assets                            obtained and successfully put to        significant performance data
  Ground breaking technology with         work                                    available; cost curve improvement,
 great technical promise; in R&D            Negative cash flows. Less than        if any, comes from volume; no
 stage (demo / prototype) but no           30 months to get product into           credible threats from market-ready
 significant performance data              market                                  leapfrog technologies expected in 3
 available                                                                         to 5 years
                                            Market driven prototype
  Initial IP position developed;          developed and operational; strong        Market credibility derived from
 downstream IP development                 market assessment available. The        realized sales to key costumers
 strategy defined                          product generally has a                  Strong, credible sales channels
  Strong / verifiable market              pronounced cost curve requiring          Rapidly growing assets,
 arguments (description of the pain        both R&D and volume to reach            revenues and markets. Expansion
 in the market, position against the       target prices                           capital or project finance needed to
 current or likely competition, etc)        Detailed market expansion and         sustain growth and address /
  Sound and credible strategy             commercialization strategy              capture verified opportunities
 defined for commercialization             developed including: ways of             Negative to slightly positive cash
                                           dealing with competition, strategic     flows. R&D is now a reduced % of
  Outstanding initial management
                                           partner alliances, etc.                 total expenses. Investment will
 team qualifications identified; list of
 initial potential candidates               A list of target customers            accelerate development of positive
                                           identified; supported with letters of   cash flows and profitability
                                           intent to purchase                       Supplier and customer
                                            Strong IP position already            relationships well established
                                           established with plans to expand /       Sophisticated management team
                                           make more robust as necessary           in place and operational; so are key
                                            Outstanding start-up                  strategic alliances
                                           management team and board in             Possible preparation for
                                           place (or currently being rapidly       introduction of new and / or next
                                           implemented)                            generation products

Save your application as a Microsoft Word 2003 or earlier file (.doc only, please, no .pdf of .docx files) with the
following name: <name of your company> v1.doc. Once your application is complete, upload the file through You will then need to proceed to the Registration and Payment site to
complete the process: Please be aware that your
application file will not be processed until your payment has been received.
Instructions for Completing, and Addressing the Business Case Elements, in the
Application Template

Business Case            Basic company information, such as:
Elements                  Name
                          Technology on which company is based
                          Incubator affiliation
                          Application category
                          End objective
Business and             The description of your business. Describe how your business makes money and
Business Model           how will it assure great & long term profits for the future? What is the company’s
                         key value proposition (e.g. low cost producer)? When was Co. created? What is
                         the current structure and ownership? Describe the kind of and amount of funding
                         needed (seed, venture, expansion capital, project financing) as well as the relative
                         amounts of debt or equity being requested.
Technology &             Describe the novel aspects of your technology and what it enables. What is the
Product                  intended product, use or service based on the technology? Investors want to be
                         sure that people will buy your product and they want to know the pressing business
                         and/or other customer need(s) that it solves. What are the key benefits to customer
                         (other than technical)? Where is the product in its evolution (e.g. fully tested
                         prototype; in initial production and markets; etc.). Do you offer a “whole product”
                         solution to the customer needs that you are targeting? What else is needed?
Competitive              Investors want to know their investment is protected. What is your IP position
Position                 (status, and #’s of patents)? Is the investment protected with patents, or know
                         how? Who/what is the competition and how are you and your industry partners
                         going to deal with them? What strategy gives you an edge over the competition? Is
                         your competitive position sustainable? Is your partners’ competitive position
                         sustainable? Provide an early estimate of cost / margin benefits relative to the
Management               Remember that investors often make their biggest bets on people. What can you
Team                     say about the key members of your management team that will convince investors
                         that your management team will be able to keep their eye on the marketplace and
                         both grow and steer the venture to commercial success? Do they have prior
                         experience for this stage venture and growth (e.g. do they have experience forming
                         and working with strategic partnerships?) What are your plans for further
                         developing your management team as you expand your business rapidly?
Markets                  What is your go-to market strategy (e.g. beach head markets)? What are your
                         current markets and anticipated market segments that will give you a sustainable
                         advantage? As you grow your company, will these markets be available? What are
                         the key market barriers to your success? What is your basic strategy for
                         developing and reaching those markets? How are these market assumptions
                         consistent with financial assumptions? How have you validated (your sources of
                         information) that these markets really exist? Remember that while investors like
                         public sector investors to provide R&D support, and possibly initial markets, they
                         don’t like to see long term markets that are too dependent on government (or even
                         utility) markets.
Customers /              Customers are the key to strong profits. Who are the specific customers that you
Suppliers                are pursuing or will pursue? Do you have any letters of intent to purchase? How
                         are you reaching your customers and growing your customer base? Address any
                         supply and or distribution issues that are likely to arise and how will you be
                         addressing them.

  If you represent a division or are a part of a large diversified company, it is important to know how you function in
relation to the larger entity. Further, if you are part of a larger organization please answer the remaining questions
from the perspective of the division or smaller entity that you represent.
Milestones and             Provide a brief description of the key milestones that must be reached (and
Path to Market             anticipated schedule) to take the next major step towards deployment with existing
                           and/or new strategic partners, as well as the major strategies that are being used
                           to accomplish them. Describe anticipated funding needed and likelihood of
                           reaching these milestones.
                           Describe the anticipated deployment path for this technology and likely needed
                           strategic partner(s) as well the expected roles of these strategic partners; where
                           are you in the process of securing that strategic partner? Also explain what is being
                           done to position the technology and the current partners for the additional needed
                           down stream partners2. Describe the existing ownership of public and private
                           sector IP for this technology. If private sector partners already exist, describe their
                           level of commitment (and where they are in the process) to go beyond R&D and
                           deploy the technology in the marketplace
Achievements               Describe the growth milestones achieved to date. What are your next major near
                           term planned achievements / goals & what are the barriers to achieving those
                           goals as well as how you are addressing them?
Sales and Gross            What are your current sales? Anticipated for three years out? - What are the key
Profits                    imbedded assumptions? What financials / pro-formas can you share (e.g. you will
                           need to be ready to share a range of information including margins, free cash flow,
                           debt service ratios, etc. in private, if there is interest by investors).
Key Risks                  What are the key risks that investors will face (e.g. off-take agreements, market for
                           product, distribution, etc.) and how are you addressing them…. Explain why the
                           investor will maximize their return.
Investor / Partner         From the above, lets assume that investors will be convinced that your are rapidly
Needs                      moving towards a viable and very profitable business. How much are you asking
                           for and what’s in it for them? What will they get out of the deal? How do they cash
                           out (exit) - explain how the debt and equity portion of the financing will be repaid.
                           What financing avenues have you been pursing? Let them know how the money
                           will be spent. What else do you want/need from the panel (e.g. advice on strategy,
                           contacts for management team, etc.)?

  If as is most likely the case, only part of the needed strategic partner or deployment team exists; then what are the public and
private sector partners doing to position the technology and product for deployment and engage these needed partners? For
instance, if the key industry partner is a small business, are they aiming to become a low cost producer themselves? Or (one of
many options) are they looking to be bought up, or license the technology to a large company? Remember that VC’s won’t, in
general, be partners in licensing deals (or in service businesses), but they could play a role in a buy up strategy. To carry this
example further, if the small company is to be bought up in the preferred strategy, then what are they doing to make this
happen? If they need a strategic industry partner what are they doing to find and engage such a partner?

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