The Vice Chancellor’s Cup of Student Entrepreneurship 2012

VCCE

A business plan competition

• “Planning is the substitution of error for chaos.” – Anonymous

• Writing and presenting plans allows you to communicate

• Communication is essential for attracting– Investors – High quality staff– Suppliers– Buyers

How to compete• Get an idea • Form a team

– The Presenting Team: up to 5 CUHK students– Real Team may be different

• include non students• Be fewer or more

• Find an Advisor – any CUHK professor• CUHK student role must be substantial

– CUHK student equity > 20%– CUHK student management > 50%

• If your company already exists it must have no substantial sales before Sept 2011

Plan is written to source equity capital

• Any independent business in any industry– No buy-outs of, expansions to or sponouts of

existing companies– No franchises or licensing agreements for

distribution in a different geographical area

Criterion for winning

…which plan presents the most attractive

investment opportunity?

Ventures May be Social Enterprises or Mixed Enterprises

• All great companies have a value creating purpose: • Google’s mission is to organize the world‘s information and make it

universally accessible and useful.

• High quality employees is motivated to work for such a purpose

• Attractive Social Ventures maximize social return on financial investment– Aim for global impact– Solve large social problems– Scalable

• Social Ventures will NOT be judged in a separate track

Prizes• LEARN skills useful for start-ups • Interact with VCs, investors and partners• Winners represent CUHK at national and international

competitions• 1st $8,000; 2nd $5,000; 3rd $2,000

• Judged by panels of investors

• Sow Asia Foundation Social Venture Award: $8,000 • Regular prize winners may also win the Sow Award• Judged by Darius Yuen • Sow Asia will seriously consider financing of one of the plans • up to a principal amount of $1 million• subject to mentoring, review, due diligence and team commitment

• Investment is available for ventures with high expected returns

Plan Length

• Written Plan– Summary maximum 2000 words due 17th December– Final Plan: 16 pages 12 font due 16th January

• 10 pages of text• 6 pages appendices• First page should be summary

• Presentation– 15 minutes presentation– 15 minutes Q&A

The Plan Concerns Forecasts

• Focus on one plan with milestones and cash needs focusing on first year

• Predict • Unknowable : give your best guess based on

detailed analysis of the present

• Cite sources and list assumptions

The Plan also discusses the past and the present …

You Business Plan is a Prospectus

• Make whatever forecasts you wish

• Statements purported to be factual must be factual

• Any investor will do due diligence in confirming the facts as presented in the plan– you will likely be discovered for falsehoods

• If an investor relies on false information in making an investment and loses because of that reliance, you are personally liable

No Plagiarism

When you quote use quotation marks. Fully reference your sources in footnotes

Merriam Webster Dictionary: pla·gia·rize (Etymology: plagiary Date: 1716) Transitive senses : to steal and pass off (the ideas or words of another) as one's own :use (another's production) without crediting the source.  Intransitive senses : to commit literary theft :present as new and original an idea or product derived from an existing source.

Plagiarism is easy to spot

The Concerns of the Investor

• Does it create value for end users?• Is it a “must buy” so the end user is willing to

pay a premium?• Is that “must buy” market

• large?

• high growth?

• high margin?

• with significant barriers to entry?

• Does the venture’s team fit the opportunity?

Criterion: Is this an attractive investment?

If you use CUHK technology, obtain the consent of the developing professor

and CUHK Knowledge Transfer Office: – Tracy Pang, IP Manager 37633031

For Pre-Incubation at CUHK:– Center for Innovation and Technology– K.Y. Leung, Associate Director x 8380

CUHK Faculty and Students Can Help with Your Plan – but you have to find the right people yourself !!!!

Tap Our Alumni Network

• Alumni are willing to share– Market knowledge– Strategic partners– Entrepreneurial experience– Investment expertise

• Alumni mentor network

Schedule for VCCE

• Registration and Summary Dec 17th

• Semi-Finalist announcement December 21st

• Full Written Plans January 16th

• Semi-Finals Friday Feb 3rd

• Finals Saturday Feb 4th

Hugh Thomas hugh-thomas@cuhk.edu.hk

Questions? Ask

The CUHK Center for Entrepreneurship 9th Floor Cheng Yu Tung Building

Rosanna Lo entrepreneurship@cuhk.edu.hk phone 26097542