HANDBOOK - mays.tamu.edu · Before the finals round, each team presents a two-minute elevator pitch...

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HANDBOOK



Table of Contents

Important Dates .................................................................................................................... 3 Introduction/Overview ......................................................................................................... 4 Process Overview/Timeline .................................................................................................. 6 Teaming Process ................................................................................................................... 6 Deliverable: Oral Presentation .............................................................................................. 8

Deliverable: Elevator Pitch .................................................................................................... 9

Deliverable: Report ............................................................................................................... 10



Important Dates Tuesday, January 8, 2019

MBA Venture Challenge Overview @ FMM An overview of the purpose of Venture Challenge, timeline of events, and Company Applications.

Thursday, January 10, 2019 MBA Venture Challenge Company Rankings Due

MBA Teams must submit company rankings via online survey by 1:00 p.m.

Monday, January 28, 2019 MBA Venture Challenge Kickoff @ FMM

MBA Team company selections will be announced by the MBA Programs Office.

Wednesday, January 30, 2019 MBA Venture Challenge Company Kickoff (Contact Open)

MBA teams are now allowed to contact their selected company by phone and email only.

Thursday, January 31st, 2019 MBA Venture Challenge Quicklook and West Campus Library (WCL) Resources

This will include a lesson on Quicklook by Brett Cornwell, Texas A&M System Technology Commercialization, which will be followed by a brief presentation on WCL resources available.

Friday, February 1, 2019 MBA Venture Challenge Company Kick-Off

MBA Teams meet Company Representatives.

Thursday, February 7, 2019 MBA Venture Challenge Valuation Training/BMC

MBA Teams will receive training on how to value a nascent company and a refresher on the Business Model Canvas (BMC).

Monday, February 11, 2019 Mid-Point Check-In

MBA Teams will have an assigned 45 minutes to meet with Mentors. Due: Mid-Point Deliverable

Monday, February 18, 2019 MBA Venture Challenge Finals

MBA Teams will participate in Round 1 Presentations in the morning. Wildcard Round will take place during lunch, and the Elevator Pitch and Finalist presentations will be in the afternoon.

Due: Elevator Pitch, Presentations & Report



Introduction and Overview

For the MBA Venture Challenge (VC), first-year MBA students are divided into teams. Each team assumes the role of a consultant for an early stage venture they will be involved in selecting. The teams are asked to assess the market and financial viability of the venture and present their findings to a panel of judges from both business and academic communities. The ventures used in the VC may come from any industry. Each venture has passed a screening process for its potential by the McFerrin Center for Entrepreneurship. Each venture should possess a degree of intellectual property protection. The MBA teams are encouraged to review the venture objectively and thoroughly to demonstrate the full range of their analytical capabilities. During the time that each team has to examine the venture and prepare deliverables, they are expected to:

• Develop a solid knowledge of the venture’s business model and underlying business model canvas

• Conduct market research about commercial application and acceptance of the product/service • Analyze the venture’s financial future potential • Create a two-minute elevator presentation • Create a 12-minute oral presentation for judges (time limit includes Q&A) • Address judges’ questions about their analysis • Prepare a summary of their findings to the venture

On competition day, representatives of both business and academic communities serve as judges for the VC. During the first round, each judging panel sees multiple teams present (these teams comprise a “flight”) and poses questions to each team after their presentation. The judging panel ranks the teams from their flight, and the highest-ranked team goes forward into the finals round. Round 2 is held for the remaining 2nd and 3rd place teams and 2 of those remaining 6 teams will also move to the finals round. Before the finals round, each team presents a two-minute elevator pitch to all judges and the public, who will vote on the best pitch. In the finals round, the finalists present to the entire group of judges and public. Judges individually rank the teams in the finals round and a combined score is calculated for each team. Cash prizes are awarded to the top three MBA teams ($5,000, $3,000 and $2,000), the top three MBA elevator pitch winners ($500, $300 and $200), the top written deliverable ($500), and the best presenter ($200). PURPOSE/OBJECTIVES The VC is an integral part of the first year of Texas A&M’s Full-Time MBA Program. It has been designed around several key objectives:

• Help Mays MBAs develop the ability to quickly and effectively evaluate emerging technologies and early stage firms by providing a clear, unbiased, and business-oriented evaluation of the business’ potential.



• Provide Mays MBAs with an opportunity to further develop their teamwork, analysis and presentation skills.

• Create an opportunity for MBAs to network with members of the business and venture community.

• Showcase Texas A&M MBA students to the business community. • Provide an actionable analysis to venture owners, founders, executives, and angel funds, as well

as licensees. • Assist the management of the startup firm with another set of “eyes” as the firm moves

forward. KEY QUESTION The key question for each group to answer is:

What is ahead for this venture?

Following up on the key question, each group should consider: • Is this venture targeting a significant market opportunity? Are there other market opportunities

for their products/services? • Based on the market research and analysis, what is the value of the proposed venture? • What short-term and longer-term actions should the venture take to position itself for success?

FRAMEWORK Quicklook is a useful framework for addressing the key questions presented above. The framework includes steps for collecting, analyzing, and presenting data about a new venture. For a detailed description of Quicklook Commercialization Assessment, see Appendix B. JUDGING CRITERIA Judges should be approached as if they are interested in early-stage screening. The judges will evaluate the quality of the work performed, the presentation of the results, responses during the Q&A session and the logic of the analysis. In other words, judges will evaluate the team’s analysis and not the venture itself. The judges do not learn about the specific ventures prior to the presentations. The presentation is normally each judge’s first exposure to the venture. The presentation will be the sole source of a judge’s knowledge about the venture. Teams should assume that the majority of the judges in a panel have little knowledge of the subject matter before the VC event. In all likelihood, however, some judges will understand and be familiar with the basic technology and may pose detailed questions. This suggests that Teams should prepare for panels with both broad backgrounds and specific technical expertise, and be prepared to answer questions from both perspectives. Note: The judges are instructed NOT to consider if the venture would be a worthwhile investment when judging MBA team performance. They are only to assess the quality of the team’s analysis.



Process Overview and Timeline The McFerrin Center for Entrepreneurship will manage the venture selection process. Once the ventures have been identified, student teams will be formed according to the following process. TEAMING & COMPANY SELECTION PROCESS MBA Students will be grouped in their academic teams. The McFerrin Center for Entrepreneurship will provide appropriate company options to the MBA Programs Office for selection by the teams at a determined date. MBA Teams are expected to refrain from contacting their company until all companies have been notified prior to the selection at a date assigned by the McFerrin Center. COMPANY KICK-OFF On kick-off day, MBA students and company representatives come together to learn more about the VC. Following a short presentation, company representatives and MBA teams have their first face-to-face meeting. Guidelines, rules, deliverables and other details will be covered. If company representatives are not able to there in person, teams are expected to meet electronically or via phone with their client that afternoon. MID POINT CHECK-IN MBA students will have the opportunity to meet as individual teams with a panel of mentors to get advice and feedback as they prepare for Competition Day. Each team will get 40 minutes with a panel of mentors from the business and academic community to ask questions, review results, etc. Time blocks for each team will be communicated prior to that day based on panel availability. Deliverable: For Mid-Point Check-in, each team must:

• Have a clear understanding of their company represented in the Business Model Canvas, which will be provided to the mentors.

• For each component of the BMC, include: o Brief outline supporting findings to date. o Future options to explore for their company.

The Mid-Point Check-in referenced above will be conducted with a panel of mentors. Your teams will also have a scheduled coaching session with Professor Krajicek during this timeframe. You will have the opportunity to review your presentation and written deliverable with Professor Krajicek. Having more completed will result in more valuable feedback during this session. COMPETITION DAY On competition day, students will have the opportunity to present before a panel of approximately 10-15 judges from the business and academic communities in rounds one and two. Elevator pitch and finals will be open to all judges and the public. Following is the sequence of activities on the day of competition:



• Presentations – Each team will make a presentation to one judging panel (10-15 judges). Teams are allotted 12 minutes for the presentation and Q&A. Teams must decide how to allocate the 12-minute time period between presentation and Q&A. Each judging panel will see 3-5 presentations (depending on MBA class size). Each judging panel selects one finalist which will proceed to the afternoon finals presentations, and the remaining second and third place teams will participate in Round 2. Of the teams in Round 2, one will move to finals from each Round 2 room. A total of five teams will proceed to the finals presentations. See Appendix A.

o Presentations should be formatted in standard layout (as opposed to widescreen). o Presentations should be named using the following naming convention:

■ TeamName_CompanyName o A final copy of your presentation must be submitted electronically on eCampus, by 7:00

a.m. on Monday, February 18th. Slides may NOT be edited after submission. • Round 2 (only for 2nd and 3rd place teams) – Teams selected for Round 2 will make a

presentation to five judges over lunch. Presentations will be 12 minutes. Teams may include time for Q&A if they choose.

• Elevator Pitches – All teams prepare and make two-minute pitches to all judges • Finals Presentations – The five teams selected for the finals round will make presentations to all

of the judges. Judges will individually rank finals presentations and scores will be tallied. • Feedback Round – MBA teams will return to their judging rooms and all the teams that

performed in the room will receive feedback from the judging panel. • Networking Reception – An Awards & Networking Reception will be hosted to allow students

and judges to network. Winners of the competition will be announced. • Technical and Logistical Information - Information regarding audio visual equipment, event

location, parking, attire, etc. will be communicated via another document provided to students before competition day.



Deliverable: Oral Presentation Each team must prepare and deliver a presentation in front of a judging panel. This presentation will be followed by Q&A from the judging panel. Each team will have 12 minutes for the presentation and Q&A. Teams must decide how to allocate the 12-minute time period between presentation and Q&A. These guidelines apply to Round 1 and Round 2. Judges should be approached as if they are interested in early-stage screening. The judges do not learn about the specific ventures prior to the presentations. The presentation is normally each judge’s first exposure to the venture. The presentation will be the sole source of a judge’s knowledge about the venture. Teams should assume that the majority of the judges in a panel have little knowledge of the subject matter before the VC event. In all likelihood, however, some judges will understand and be familiar with the basic technology and may pose detailed questions. Teams should be prepared to answer such questions. Do not forget that you are serving in a consultant role; as such, you should not refer to “we” when referencing the company since you are not part of it. GUIDELINES/RULES

• Presentation times are regulated as a hard stop; for example, even if the team does not leave time for Q&A, the presentation still ends at 12 minutes.

• Time will begin when the presenter begins to speak. • Teams may use as many or as few presenters as they desire; however, it is important that all

members are engaged. This typically involves talking at some point during the presentation or during question and answer.

• You are presenting from the perspective of a consultant to the company and not as an employee of the company.

• Presentations should be formatted in standard layout. • Presentations should be named using the following naming convention:

o TeamName_CompanyName CONTENT Present data and your process for analysis to address the key questions presented above. In summary be sure to demonstrate the following:

• Where is the company today? • Where could the company be in the future? • How did you come to these conclusion (supporting data and process for collection and analysis)



Deliverable: Elevator Pitch Each team must prepare and deliver a two-minute elevator pitch in front of the entire judging panel and open audience to start off the Finalist Presentations. This will be a hard time stop – at two minutes the presenter will be cut off. Cash prizes will be awarded for the top three elevator pitches. What is an “Elevator Pitch”?: An elevator pitch is a short summary used to quickly and simply define a product, service, or organization and its value proposition. It should not last more than two minutes, or the duration of an elevator ride! The intent of the Elevator Pitch is to create interest in your company. You are learning to clearly and concisely sell what you envision the company could be in the future. GUIDELINES/RULES

• Use of computer or audio-visual equipment in the room is NOT permitted. However, use of the microphone is mandatory.

• Distributing material, samples and/or prototypes is permitted. • No PowerPoint slides or audio assistance is allowed except for the microphone that will be

provided on stage. This is not available in an elevator, so it is not available for the competition. • Time will begin when the presenter begins to speak. • The elevator pitch is two minutes. Speakers will be cut off at the end of the duration. • Teams may use as many or as few presenters as they desire. Only team members participating

in the delivery of the pitch may be present in the room. • Audience for elevator pitch is open to the public and will include judges and other teams who

would like to watch. ALL audience members are allowed to vote on the elevator pitch. CONTENT OF A TYPICAL ELEVATOR PITCH The following guidelines have been modified from The Collegiate Entrepreneurs’ OrganizationSM (CEO) elevator pitch competition. Items may be added or deleted as each team sees fit. Creativity counts. The “Elevator Pitch” should quickly answer five questions:

1. What is the product or service? Briefly describe the venture. 2. Who is the market? Briefly discuss who the customers are. What industry is it? How large of a

market do they represent? 3. What is the revenue model? More simply, how will the venture make money? 4. What is the competitive advantage? Effectively communicate how the venture is unique and

why it has an advantage. 5. Why should a judge want to hear about this venture?



Deliverable: Report Each team is required to document their work through the submission of a written report. The written report should be guided by the Business Model Canvas, with the purpose of demonstrating where the company is today and where they could be in the future. Your written deliverable is not to exceed 8 pages plus references. The written deliverable should include the following:

• Page 0: A cover page. • Page 1: The Business Model Canvas completed for your company. For each component, the

completed canvas should reflect where the company is today and if appropriate where it could be in the future.

• Pages 2-7 (could be fewer pages): This section should support each component of the Business Model Canvas. In this section you must address each component of the BMC. Each team may choose to focus more attention on different components of the BMC. For example, your team may have a few sentences (or even one sentence) on one component and a few pages on another. This section should include a clear summary of the data collected to support your recommendations and a description of your analysis.

• Page 8: A summary including a ranking of all recommendations in order of criticality, as well as a summary of suggestions for moving forward.

• Page 9: The final page should be a bibliography. If you used outside sources, include a page of citations. Use a writing style of your preference.

The written deliverable should be a concise analysis addressing each component of the Business Model Canvas. Your client’s management team will get a copy of this report, provided by the McFerrin Center for Entrepreneurship. You do NOT need to bring your report or business model canvas to the presentations. Be brief but explanatory. You will also submit an electronic copy of this report for consideration for a cash prize. Reports must be completed by the morning of the competition. A final copy must be submitted electronically on eCampus, as a Word file, along with your PowerPoint presentation, by 7:00 a.m. on Monday, February 18th. Once reviewed, the reports will be passed along to the McFerrin Center and the company’s management team.

After the McFerrin Center for Entrepreneurship provides the clients with your written deliverable the client may request additional supporting documents from your team. Examples of additional supporting documents include a list of individuals your team contacted when conducting market research and any raw data collected, surveys used, interview responses, financial data calculated, or assumptions used in financial calculations. Be sure to keep this information organized even though you may not need to include such details in your written deliverable.



APPENDIX A

CHALLENGE ROUNDS GRAPHIC



APPENDIX B

QUICKLOOK COMMERCIALIZATION ASSESSMENT



INTRODUCTION The problem presented to the MBA team in the MBA Venture Challenge is to determine the market viability of an early stage venture. At the conclusion of the VC each team must report on its venture and provide a clear, unbiased recommendation as to the future of the venture. Each team is free to approach the project in the manner it sees fit. Based on prior experience, it is recommended that teams follow the Quicklook Assessment (Quicklook) methodology outlined in this document. ABOUT QUICKLOOK The goal of Quicklook is to get an early indication of the market viability of an idea, invention, or area of research. The Quicklook methodology was developed by the Texas Engineering Extension Service and has been successfully applied on numerous projects. If commercial potential is indicated, the assessment can help to locate potential licensees or development partners. If commercial potential is not indicated, the assessment can point to areas that need further investigation or development before commercial potential is likely to be realized. The Quicklook relies most heavily on primary research. Calling potential users of the venture is a very important way to gauge market receptivity. When calling potential users, please identify yourself as a Texas A&M University MBA student, and tell your contact that you are evaluating the potential of an early stage venture. CAUTION! You are working in teams, and it will be absolutely essential to document your research and keep in very close contact with other group members. Each team member must be fully aware of what teammates are doing, what sources and people they have contacted, and what they have learned from each source. Nothing will irritate (and alienate) a contact more than to have multiple members of the same team call with the same or similar questions. Divide your work carefully, and keep in close contact with each other. Always take notes, recording which sources were consulted (including reference materials as well as contacts), what questions were asked; and what information was gathered. It is as important to document dead-ends as it is to document outstanding conversations. Without good notes, you will not be able to make a solid and defensible presentation. Additionally, your notes must be formalized and turned over to judges. Good, clear notes will do much to bolster the judges’ belief in the effectiveness of your evaluation. The Quicklook Assessment Methodology includes four major steps as follows: Step 1 – Identify Market(s) and any other Potential Uses Approach:

• Brainstorm with teammates and others. • Identify similar products, or products that provide similar benefits by browsing the Internet. • Contact the founder/owner or others familiar with the venture, once you have gained a working

knowledge of the venture. The founder/owner is frequently an excellent source for help in identifying potential markets or applications, because the venture typically arose with a specific application in mind. Three cautions are in order, however. First, the founder/owner may be unavailable, and in that case, others who are familiar with the venture must be relied upon. Second, those who are familiar with the venture may have a relatively narrow field of vision with



respect to the future of the venture. Your team may be able to identify uses that the founder/owner never foresaw, and these markets may create far more value than those the venture was originally intended for. Third, it is important to do your homework, be somewhat familiar with the venture and at least some potential markets before you interview. In this way, when you conduct interviews, you will have some basic knowledge about the venture, and the conversation can be more fruitful. An excellent starting place is to identify similar products, products that serve similar uses, or products that solve similar problems. If identified markets are obscure or the usefulness of the venture is unclear, a web or database search may indicate new markets or avenues of research. Step 2 – Identify End Users and/or Potential Users/Licensees Approach:

• Contact industry associations and academic researchers. • Search commercial databases at the West Campus Library, such as the Thomas Register or Dun &

Bradstreet. • Browse the Internet.

This step is critical, because the Quicklook Assessment depends on primary research. After the markets have been identified in Step 1, it should be fairly easy to identify who some potential end-users would be in those markets and who might manufacture similar products for commercial sale. The best sources are usually companies that manufacture similar products, because they will be more global in their response to the venture. A potential user/licensee can often indicate how many customers could be interested in the product and will be more aware of any similar products already on the market. Potential end-users of the product are also good sources of information, though they should be contacted only after at least some potential users/licensees have been contacted. The responses of end-users will tend to emphasize specific applications, and the resolution of specific problems, but they sometimes can offer information about competing products or identify manufacturers of potential interest that were not identified previously. Step 3 – Contact Experts and Companies Approach:

• Call the identified contacts. When contacting potential manufacturers and/or end-users of the venture, it is important to remember that you are contacting people to get their expert opinions on the future of the venture. Most people are happy to talk about anything if you treat them as the expert that they believe themselves to be. Also, you are calling about something that could potentially help their company, so there is something in it for them. When talking to the contacts, emphasize the potential benefits of the venture, and not just the features. It is rarely necessary, and usually impossible, to describe the venture in full detail, but you must be able to describe why it would be important in the marketplace. Often, some of the best people to talk to are in marketing or in R&D. Marketing is good because they usually have a global view of the marketplace. R&D is good because they usually have good ideas about similar products or on-going research and have technical expertise. Sample question areas:



• Would a product that had these performance characteristics be important? • Is there a large market for products like this? Who would use it? • Are there similar products on the market? Who makes them? • What would be an appropriate price?

It is always important to reconfirm data that has been collected from companies in primary research. If you get a piece of information that may be useful, try to reconfirm it with the next phone call. Also, when asking about the potential market size, it is always a good idea to offer some scale examples if contacts are reluctant to guess on their own. For example, ask a reluctant contact if the market would be closer to 10,000 units or 100,000 units. Given such different choices, they are more likely to make a choice. Of course, choices like these should only be used if the contact is reluctant to estimate the market size without further prompting. Usually, only 8 or 10 productive phone calls are necessary to complete the Quicklook commercialization assessment. Of course, it may take quite a few more calls than that to yield the 8 or 10 productive ones. It will not take many calls to find out if the venture is a star or if it will face an uphill battle in the marketplace. Of course, thoroughness is important in convincing the judges that your recommendations are valid. Step 4 – Prepare the Presentation, Formalize Documentation of the Process and Fill in Holes Approach:

• Compile your research findings. When preparing the presentation, it is important to note all viewpoints. The full range of responses will give an indication of the venture’s value. An early stage venture that is met with universal cheers and interest is typically more viable than one that is met with ambivalence by most and moderate interest by others. If there are any negative comments, they may point out obstacles to be overcome, potential competition, or issues that must be addressed. Remember that Quicklook is not intended to be an in-depth market analysis, or to provide a complete market assessment. The emphasis is on providing information that will be useful in preparing for the future of the venture. Of course, the more complete the evaluation, the better the presentation is likely to be judged. Remember that potential investors of the venture may be in attendance at the presentations.

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