1. What’s Coming? Today (Feb 11) Elevator Speech Exercise + Competition (60’)- this is graded (6%) Defining Major Milestones (20’)- Major activities that you will need to bring your product, service, or license to market according to your commercialization plan Group Work Session (40’)- Refining your commercialization plan, defining milestones Assignment- review major activities list with your mentor and or inventor Wed (Feb 13) Lecture (45’)- Elements of a business plan. Team Work Session (45’)- Mentors invited. Clarify commercialization plan, work on tasks, timelines and resources needed. Mon (Feb 18)- Corporate Technology Commercialization (Thomas Lindner) Team Work Session- Prepare for Bill Newman visit

2. Grading and Assignment Update Grade consists of 30% Interim results - patent assessment (returned) - market assessment (returned) - SWOT analysis (due last Friday) - elevator pitch (today) - project and financial plan (due ~2/25) 30% Class Participation, Team Dynamics, and Balanced Team Contribution 40% Final Presentation and written report

3. Elements of the Elevator Speech Short, concise, and compelling!! You have 90 seconds… Know your listener and tailor it for them. What do they care about? The main purpose is to intrigue someone so they want to learn more. The first sentence has to “grab you” –With healthcare costs rising 24% per year, fewer and fewer US employers offer comprehensive health benefits… –In the last 18 months, the internet grew by over 100 million consumers in China who have no credit mechanism for buying online… –Thanks in large part to Tivo, the $70 billion market for TV commercials is about to implode… –21% of the patients who take prescription medicine for the first time are genetically pre-disposed to have no benefit from that molecule, but still suffer the side effects…

4. Elevator Pitch Don’t make them think too hard –Tell the audience up front what your company sells –Explain in one or two sentences each: What problem is solved? Why is it better? Why will they buy it? –Summarize your rollout and ramp plans –No science allowed in the elevator! Compel, don’t bore…. Other enticements…. –Revenue potential or status- $$$$ –Who is interested or collaborating (yes, drop a few names) –New applications or opportunities- are there obvious extensions? –Last but not least…What action is needed from your listener- money, collaboration, contacts, etc?  Practice, practice, practice… and refine

5. Did it work?

6. Elevator Pitch Rules Work as a group to prepare a pitch for a room full of potential investors. Elevator speeches are 90 seconds maximum. More than that gets the buzzer…don’t be left hanging… One of your team members will be randomly chosen to give the pitch when your time comes Three to five minutes are allowed afterward for questions from audience In addition to presenting your own plan, you are a potential “seed” investor in the other technologies as well. All listeners are issued $100 to invest in any or all technologies (except your own) At the end of all presentations, you can invest your “seed” money any way you wish (or not at all.) Investments are made by putting your cash into the baskets

7. Commercialization Plan Milestones After choosing a commercialization approach, identify major milestones and needed to bring your product to market Milestone: A point where a complete and tangible intermediate result is obtained. Milestones break a large task into “bite sized” chunks that help participants and investors monitor progress. You will typically draw on different partners and require distinct resources in each phase. Clearly identified milestones are useful to –Management team …what do we do first, second?? What are the key participants, partners, and resources needed in each phase? –Investors $$ is easier to attract when there is new information Funding a phase offers something tangible to a potential investor

8. Sample milestones for your commercialization plan –Completing a market survey to understand competitors, define and refine product or service concept –Building a prototype –Completing beta testing- customer feedback, initial market reaction –Obtaining regulatory approvals, certifications, etc –Developing a market ready product –Selecting/reaching your first target customer –Initial Manufacturing Ramp Build it yourself entirely, outsource, or collaborate Identify and protect IP in core competency Assure path for future development and cost reduction Distribution plans –Follow on products or extensions –Your milestones may vary, especially if you are planning a license or service model

9. Group Work Session If you have agreed upon a commercialization plan, break it into major milestones or phases For each, start a list of –Participants and needed skills –Partners –Resources needed (equipment, space, $$) –Specific outcome of each phase –Major risks or issues in each phase