"Virtual" Business Plan Competitions?

We are looking at potentially using IASE to launch a series of "virtual" business plans competitions, and I'm curious to see what this Group thinks.

Without going into minute details, we envision a series of topic-specific competitions (e.g., space imaging, robotics, microsats, GPS, energy, entertainment/media, etc.) open to a global community of individuals, students, teams, and companies, with prizes (cash/services/products) supplied by interested sponsors. Competitors would submit an executive summary, a set of PPT slides, and a short video pitch. They will be scored across a set of competition criteria and guidelines by the title sponsor, an independent panel of judges, and the IASE community. The winners will be the competitors with the highest combined score.

We would appreciate any thoughts, comments, suggestions, or other feedback. Specifically, please let us know if you know anyone else doing something similar, either within the space industry or not.

Thanks for your help!

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Permalink Reply by Jim Schulz on July 13, 2008 at 8:48am: Great idea (and one I've been pushing you toward for years ;-)). I think the real kicker that HAS to be part of the plan in order to make it work is that one or more sponsors needs to put up enough money (or enough money has to come from a combination of application fees, sponsor support, etc.) so that the competition's "Grand Prize" will be FUNDING at the level requested in the submitted plan.

For example, contests might be limited not only by topic, but to a specific duration and cap on requested funding (microsat business plans sought; winners to be selected in six months; maximum funding available: $500,000; Grand Prize: Full funding (up to max. available -- investors retain right to invest less than max. following due diligence and direct negotiation with winner); second and third place prizes: cash/services/products. There MUST be a grand prize winner.

I don't think merely scoring a business plan and rewarding winners with prizes (short of funding their venture) is enough to make the contest viable. By contrast, a contest that actually helps launch new ventures is its own success story.

-- Jim; ▶ Reply to This

Permalink Reply by Joe Latrell on July 13, 2008 at 10:04am: This is a wonderful idea. I can see putting together videos, showing off development, explaining the plan, etc. The pressure of a live presentation should still be there, perhaps as a video chat session with the judges.

While the concept of full funding sounds great, I doubt it would fly well with investors. A winning plan might be good enough to win a competition but still not be strong enough to receive funding.

But the prize has to be something encouraging. Perhaps some follow-up with the winners to help them polish it into a real winning plan. Introductions to investors or business associates that can be of core benefit to the startup. Maybe just giving advice for 6 months.

If you need volunteers, I'm in.

Joe; ▶ Reply to This

Permalink Reply by Daniel Faber on July 14, 2008 at 10:24am: Hi Guillermo,

I like the idea.

I am constantly told that having "The Right Team" is an important factor in an investment decision. It may be difficult to communicate this in an on-line competition such that investors/sponsors are prepared to invest in the winner(s). If there is going to be a decent investment/prize attached to winning, as Jim has suggested, then it may be beneficial to hold the competition in person. (perhaps in association with the SFF NewSpace?)

A concern I would have is the confidentiality of the material submitted. While I am eager to distribute my company's business opportunity to reputable and "actively investing" individuals/companies (who I do my own due diligence on beforehand), I do not want it going public.

Lastly, unfortunately my company does not fit any of your categories. We have taken an elemental analysis sensor from planetary exploration and are developing if for the terrestrial mining industry. One day we will (re)enter the market for planetary exploration/development, but in the meantime we're making money underground. Please let me know if you hold a "topic-specific competition" that we would fit into.

Regards,
Daniel; ▶ Reply to This

Permalink Reply by Jim Schulz on July 14, 2008 at 11:59am: Okay -- in an effort to synthesize Joe's and Daniel's responses with my own (and still get to a grand prize of funding . . . ), I'm thinking that a "downselection" model might make sense: have an initial contest that's broad-based in terms of topics, with a dozen or so "winners" -- the criteria is a promising business in need of a limited level of investment with a clearly-delineated "use of funds" and "early investor exit" sections, and the prize is advancement to the next round and a coaching session from the judges.

To address Daniel's concerns about confidentiality (which I also share), submissions should be split into "public" and "private" sections: the "public" section would be made available to the entire IASE community (containing only information that the submitting company wants to make public -- in short, it would be a company marketing piece), while the "private" section would be made available only to the contest's judges, who would be announced at the outset of the contest (to permit submitters to do their own due diligence), and each of whom would execute an electronic NDA as part of the submission process.

With the Phase I winners in hand, IASE would be better positioned to shop for sponsors for Phase II (i.e., if a Phase I winner were to be peddling a GPS device -- or an elemental analysis sensor -- corporate sponsors/angels with a pre-existing interest in such devices may be more likely to want to participate at the Phase II or III levels). Phase II would entail resubmission of the winning Phase I business plans following the coaching session. This time, there should be only two or three winners, and the Phase II prize would be cash, products, services, etc., in addition to the right to move on to Phase III. (There might even be an opportunity here for Phase III sponsors to "team up" in mentoring relationships with the Phase II winners.)

By the time the contest gets to Phase III, there should be some market noise surrounding the contestants, with sufficient behind the scenes interest from potential investors to merit offering a Grand Prize of funding up to the pre-determined max, as outlined in my initial email (retaining the caveat that a sponsoring investor may invest less than the max following DD and negotiations).

Thoughts?; ▶ Reply to This

Permalink Reply by Agravatb on July 19, 2008 at 8:21am: Hi
Nice Idea, so when are we starting it. It is going to be wondeful. I would suggest that mentor should be provided to the team to steering, through successfuly.

Best of luck..; ▶ Reply to This

Permalink Reply by Guillermo Söhnlein on July 23, 2008 at 3:19pm: Is anyone here a member of Vator.tv or participated in any of their competitions?; ▶ Reply to This

Permalink Reply by Joe Latrell on July 24, 2008 at 8:52am: I'm not a member yet. I can't quite tell the direction this site is going but it looks promising.; ▶ Reply to This

Permalink Reply by Guillermo Söhnlein on July 31, 2008 at 6:52pm: Since it looks like we're going to move forward with some version of these IASE business plan competitions, we created a new IASE Competitions group. Please join us there to continue these discussions!; ▶ Reply to This