MGP 244 New Ventures UC Davis GSM, Summer 2007 M. Lowe, Rev 6/20/2007 BASIC COURSE INFORMATION Location: San Ramon Campus, Room G101 Class Meets: Friday 2-5 pm. Saturday 9 am - 12 noon Instructor: Marc Lowe, BS, MBA Office hours: Friday, 5-6pm & Saturday noon-1pm or by appointment Phone: 650.283.8100, Fax: 650.851.7773 Email: mdl.praxis@gmail.com; mdlowe@ucdavis.edu Required Text: Technology Ventures: From Idea to Enterprise, 2 nd Edition, Dorf & Byers, McGraw-Hill Irwin, 2006, ISBN 978-0-07-352922-6 COURSE SYNOPSIS For much of the past 100 years, entrepreneurs have been the creators of many great enterprises. Many consider the formation of venture capital backed ventures to be the extreme sports of business. In this course we consider the formation of a significant new venture. The course is focused on the development and management of the new business ventures as an entrepreneurial enterprise. We will examine the characteristics of the successful entrepreneur and determine the critical steps in building or acquiring a growth business from startup to revenues of greater than $10 million in a period of three years or less. Teams will develop a business plan that can be used to obtain the resources to build this business. The proposed new enterprise can be a new venture within an existing firm or the start of a completely new firm. Entrepreneurs build new businesses and create jobs and wealth. This is a course focused on the student participating in the building of the plan for an important new enterprise. A special focus will be on new ventures that create or use a new technology to create significant new value. COURSE GRADING There are 1,200 total points possible for the quarter. Grades will be assigned based straight percentage of total points as detailed below: A 95% or above B- 80% to 82.4% A- 90% to 94.9% C+ 75% to 79.9% B+ 85% to 89.9% C <75% B 82.5% to 84.9% 1
The final course grade will be based on a combination of individual and team assignments. These assignments appear in the table below: Graded Assignments Points Comments Individual Class Participation 125 Active class involvement, intellectual engagement, and attendance Individual Case Study (1-page write-up) 150 6 cases x 25 points per case. Individual write-up not required for team case. Team Case Study (3-page write-up) 100 Team leads 45 minute in-class case discussion and will provide necessary visual aids and class materials Business Plan Intermediate Milestones: a) Team formation b) Business Concept (1-2 page) c) Biz Concept elevator pitch (10-min) d) Business Model write-up (5-pages) e) Business Model preso (15 min) e) Exec Summary (5-pgs) n/a 25 25 100 25 100 Intermediate business plan milestones (concept, executive summary) are primarily for the team s benefit and to provide structure. Team Final Business Plan Presentation Team Final Business Plan (20 pages) 100 250 Class will score each team on viability of the plan presented. Presentation will be no more than 20 minutes including Q&A Individual Comprehensive Final Exam (Instructor prerogative) 200 Decision on final exam will be announced at the end of Session 8. If final exam not given subtract 200 points from total possible score Total Possible Score 1,200 1,000 total points if final not given TEAM GRADED ASSIGNMENTS Teams will consist of between three (3) and four (4) students. There will be eight (8) teams in total. Teams must be formed by the end of Session #1. All written assignments must be submitted in-class in hard copy on the due date. Assignments will be double-spaced with standard 1 margins and 10 or 12 pt font. No e-mail submissions will be accepted. As discussed above, TEAM activities will include leading the in-class discussion of an assigned case study and the creation of a complete business plan. A schedule of TEAM course activities will be prepared after team formation and assignment of the case studies. The following is a brief description and expectation for the TEAM Assignments 2
1. Team Case Study Facilitation and Comprehensive Written Analysis. Each team is responsible for leading the discussion of one of the assigned case study and to prepare a comprehensive written analysis (5 pages maximum). The written analysis should address the following: a) Identify the key decision(s) and/or issue(s) that you want to concentrate on b) Review decision alternatives and/or pertinent facts/statistics both qualitatively and quantitatively where applicable c) Your decision and/or personal opinion on the issue(s) d) Take-aways, or general principles that are applicable to other industries, markets, and/or business processes that you have learned from this case. 2. Business Concept Statement due start of Session #3 for all teams. Each team will submit a written one-page proposal (two page maximum). and present a 15-min elevator pitch of their business concept in class. The proposal should briefly describe the topic chosen, why you chose it, the customer problem being solved, and how you plan to learn about the subject,. 3. Business Model Write-up due start of Session #5. Each team will submit an explanation of their start-up venture (five pages maximum). All teams (Teams 7-10) will present a 15 minute overview of their business model (how the firm will make money) to the class. 4. Executive Summary Write-up due start of Session #8. Each team will submit a written executive summary of their new venture (five pages maximum) summarizing the main points of the opportunity, business model, and investor return. 5. Term Business Plan due start of Session #10 Each team is responsible for submitting a written business plan. The paper should be typewritten, double-spaced, and no more than 25-pages, inclusive of figures, tables, exhibits, and references. 6. Presentation of Business Plan (30 minutes per team) Each team is required to give a brief 30-minute presentation of their term business plan to the class. Use effective communication means to convey your message. This will simulate the experience of entrepreneurs presenting their funding pitches to investment community for the very first time. The goal of the presentation is to introduce the team and convey sufficient information to the investors to get to the next step. 3
INDIVIDUAL GRADED ASSIGNMENTS All written assignments must be submitted in-class in hard copy on the due date. Assignments will be double-spaced with standard 1 margins and 10 or 12 pt font. No e-mail submissions will be accepted. Attendance for the full class period is expected and one class meeting absence is acceptable. Additional absences will penalize your grade. Full class participation and preparation is required Assigned items should be studied. When cases are scheduled, be prepared to address all the issues and background. 1) Written Case Analysis and In-Class Discussion We will use case studies to enhance our learning. Each student is required to prepare a written case brief (two pages maximum) for each case. This assignment is individual-based. Each student will be individually responsible for submitting six (6) case briefs during the quarter. These briefs are less rigorous and less quantitative, but you are expected to be equally familiar with the case content and equally active in class discussion as the team presenting the comprehensive case analysis in class. Your case brief analysis (1 page desirable up to 2 page maximum) should contain the following: 1. Identify the key decision(s) and/or issue(s) faced by the case s decision maker 2. Identify key tradeoffs of the alternative approaches 3. Make a RECOMMENDATION or decision(s) SUPPORTED by the facts presented in the case(s) 4. Do NOT regurgitate of the facts of the case. 2) Final Self-Report and Team Assessment (1-page due on final day of class) Each student is required to submit a self-report describing your specific accomplishments and efforts in building the business plan, cases and interviews, and your participation in the class discussion. The final self-report will also give a numerical assessment (0-low to 5-high) for each member of your team based on relative contribution. 3) Comprehensive Final Exam The instructor reserves the right to administer a final exam, based on the class s level of involvement and participation during the course of the quarter and the class s demonstrated mastery of the concepts covered in the text. Final exam questions will draw exclusively from assigned reading. The final exam will be comprehensive, practical, and open-ended. 4
MGP 244 CLASS SCHEDULE M. Lowe, Summer 2007 Ssn Date Topics Reading Assignment Guest 1 Friday, 6/22 The Entrepreneur Opportunity Chapter 1,2 Teams formed Steve King CEO, Zantaz 2 Saturday, 6/23 Competitive Advantage Strategy Development Alliances 3, 4 Case #1 prep: Yahoo! Case #2 prep: Artemis 3 Friday, 7/6 Innovation Risk and Return The Business Plan 5, 6, 7 Business Concept due (1-page) & 10- min elevator pitch Tim Martinov CEO, emotors (tentative) Case #3 prep: Global Wireless (handout) 4 Saturday, 7/7 Biz Model Formulation Financial Plan 16, 17 Case #4 prep: Aegis Analytical (handout) Duane Henderson Former CFO, New Moon Systems 5 Friday, 7/20 Global Business Mergers & Acquisitions 15 Business Model due & 15-min preso Case #5 prep: Hirschtick Venture Michael Brownrigg Managing Director, ChinaVest 6 Saturday, 7/21 Knowledge, Legal Corporate Ventures Marketing 8, 9,10,11 15-min business model preso (cont d) Case #6 prep: World Indigo 7 Friday, 8/3 Sources of Capital Presentation The Deal 18, 19, 20 Case #7 prep: Danger (handout) Jay Morrison, Managing Partner, Newbury Ventures 8 Saturday, 8/4 Execution, Organization, Resources, 12,13,14,20 Exec Summary due Case #8 prep: Radco Neil Fink Managing Partner, Gunderson Partners 9 Friday, 8/17 Team Presentations 10 Saturday, 8/18 Team Presentations Team Biz Plan Team Assessment 5
MGP 244 TEAM PRESENTATION SCHEDULE M. Lowe, Summer 2007 TEAM Case Study Case Preso Business Concept Biz Model Write-up Exec Summary Biz Plan Preso B-Plan Recvd by: 1 Yahoo Ssn # 2 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 2 Artemis Ssn # 2 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 3 Global Wireless Ssn # 3 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 4 Aegis Analytical Ssn # 4 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 5 Hirschtick s Ssn # 6 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 6 World Indigo Ssn # 7 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 7 Danger Ssn # 8 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 8 Radco Ssn # 9 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 9 Financial Plan 1 Ssn # 5 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* 10 Financial Plan 2 Ssn # 6 Ssn # 3 Ssn # 5 Ssn # 8 Ssn # 9/10 Day of final* HARDCOPY of Business Plans must be in instructor s hands by day of final. If no final exam, plans can be Fed Ex d Overnite or UPS NextDay for delivery by day of final to: Marc Lowe, 80 Hillbrook Drive, Portola Valley, CA 94028 MGP 244 TEAM BUSINESS CONCEPTS & ROSTER M. Lowe, Summer 2007 TEAM Team Roster Company Name 1 2 3 4 5 6 7 8 9 10 Business concept 6