Transcript PPT slides
Edmund Sun 5/11/13 Define High Tech Venture and why it is attractive Driving force behind the high tech industry Qualification required for high tech start up 2013 opportunities and 2013/14 technology trends Entrepreneur quality Start up motto Start up common mistake Business model, business plan and operation plan Knowledge advancement in Science and Technology Usually involve know how and Intellectual property right Average Return on investment(ROI) is over 100x versus convention business Probability of success is about 10X of convention ones . Moore’s Law enable computing resources double every two years without cost and power increase, This allows ever smarter machine with intelligence approaching human . Fiber optical and wireless communication capacity and throughput near double every two years as well . Rapid rise of internet of things ( smartphone is only one example) and internet infrastructure. . New material for machine and fabric . New process for energy , chemical and medical . **An abrupt transition for business create opportunities for new start-up Discrete transistor to Integrated Circuits (TTL Family)– 196070 Advent of microprocessor -- 1970- 1980 Advent of the fabless semiconductor design – 1980-90 The beginning of Digital Video 1990-2000 The Dawn of the Internet WWW 1990-2000 The broadband network expansion thru the use of Fiber 1980-2010 The beginning of Web. 2.o and the Mobile internet 2000-2010 Ever faster network allow distributed cloud structure 2010+ Identify un-met demand on current market or new market with high growth potential Expert team in solving identified problem Enough barrier of entry (expertise, finance etc) Founder ‘s personal quality Detail analysis on market, and management team skill analysis Finance to match detail conservative BP and operation cash flow analysis Market trend Team Expertise Location Maturity of infrastructure Competition landscape Patentable idea or not Future growth potential Cloud Infrastructure SaaS & Security Web Services, APIs and the Internet of Things 3D Printing Equity Crowd Funding Ubiquitous Mobile Payment Solution Quantified Self: Healthcare ,Fitness and Wellness tracking Big Data New Image Compression standard application in media storage and communication, entertainment, and security New material ( Graphene ) application Applications using object analysis, recognition and search in picture and video Biomedical instrumentation using new scientific technique Mobile device battles Mobile applications and HTML5 The personal cloud The Internet of Things Hybrid IT and cloud computing Strategic big data Actionable analytics Mainstream in-memory computing (IMC) Integrated ecosystems Enterprise app stores Mobile Device Diversity and Management Mobile Apps and Applications The Internet of Everything Hybrid Cloud and IT as a Service Broker Cloud/Client Architecture The Era of Personal Cloud Software Defined Anything Web-Scale IT Smart Machine 3-D Printing Degree of uniqueness, barrier of entry and degree of difficulties Value to customer Foresight features SWOT analysis (not as important) Everything is uncertain (R&D, Market, Production, Quality, Distribution, Return) Uncertainty in technology innovation and change Uncertainty in Political and economic condition change • High energy • Risk taking propensity • Tolerance of ambiguity • Decision making ability • Salesmanship skills and thick skin • Negotiation skills • High need for achievement . Charismatic to attract corporate partner ,VC and employee . Skill Passion Dedication Perseverance Willing to listen Willing to change direction when needed Timing and luck Anti-authority Invulnerability Macho Outlandish projection Have Goals Challenge yourself Prepare well then JUST DO IT Think Yes not No Have Fun Make a difference Stand on your feet Loyal to your goal Be fair to all your dealings Strived for success, whatever it takes It pays to be honest Single founder Bad location Marginal niche Derivative idea Obstinacy and refractory Hire bad people Choosing the wrong platform Slowness in launching Launching too early or too immature Having no specific user in mind Raising too little money Spending too much too fast Raising too much money Poor investor management Sacrificing user for profit Not wanting to get your hand dirty Fight among founders A half hearted effort Outlandish projection Develop, produce, distribute with value pricing or market driven pricing Develop, produce, distribute main product with no profit, but sell consumable item at high margin Utility model with monthly fee, product may be free Advertising sponsorship model Virtual goods sale model Service charge model per transaction based The basic idea for the new product of service Why this new product or service is useful and appealing To whom it is useful and appealing and how to reach them How the new idea will be realized Who are the competitors How much money is needed to develop it , how long does it take and how it will be used What type of financing is needed How return on the investment will be realized Introduction, Background and Purpose Marketing, who want to use or buy it and why, plan for viral marketing Competition, who and how to overcome Development, production and location, how and when to provide the product or service, and where Management, experience, skill and knowledge of the management team Financial, current status, projection for future cash needs and revenue, amount of funding sought when the funds requirement , how they will be used, cash flow and break and even analysis Risk factors, potential risk and how to protect against them Exit, demonstrate how investors will gain if the company is successful and when and how the company might go public or be sold or get investment back by the dividend Schedule and Milestone, when each phase to be completed Appendices, detail financial information and detail resumes of top management team Start-up opportunities are more than ever triggered by the continuous expansion of internet , mobile internet, Moore’s law (computation speed increase with lower power) and new material and biomedical progress. However, more competition is increased across the board due to the continuous improvement of education and population increase. Uniqueness of the product with high value become more important then the cost reduction. Personal quality and team quality are very important to the success equation. Your own money—the best (if you can afford to lose it) Grants or loans---from government or institute Revenue—Payment advance, or Contract from customers Mentor Friend of the Mentor Bank lending Strategic Option—Customer as investors Angels—Business angels versus fallen angels Venture Capital Family or friends money---not good if you can avoid Crowd funding Verhulst Equation dP/dt=rP(1-P/K) r:growth rate K:Carrying Capacity P(t)=K*P(0)exp (rt)/(K+P(0)*(exp(rt)-1)) IC GM:55%, R&D 15%, M&S 15%, G&A 5%, NM:20% System GM:50%, R&D 10%, M&S 18%, G&A 7% NM:15%, in Asia, GM: 20% or lower, R&D 2-5%. M&S 2-5%, G&A 1-2% Manufacturing GM:8%, R&D1%, M&S 2%,G&A 1.5%, NM:3.5% Software and Internet services GM:85%, R&D 25%, M&S 25% , G&A 8%, NM:27%