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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
characteristics.
Defining Your Venture’s Stage of Development & Category
Early Seed Early Venture Expansion Capital / Project
Finance
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
http://www.cleanenergyforum.com/application/. You will then need to proceed to the Registration and Payment site to
complete the process: http://www.regonline.com/Checkin.asp?EventId=616198. 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
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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
competition.
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.
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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
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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.)?
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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?
