Syllabus:Entrepreneurship(MBA/EWMBA295A2)

Instructors:JackFuchs&NaeemZafar Classroom:C220 Spring2009 Monday69:30pm

PurposeoftheCourse
Thiscourseisabouthowtocreateanentrepreneurialbusiness.SincetheHaasSchoolisprincipally aboutprofessionallymanagedbusinesses,thecoursewillfocusonbusinessesthatarenotsmallby design,butratheronthosethat,withvision,hardworkandluckcanbedevelopedintosubstantial enterprises.Thiscoursewillfocusonentrepreneurs,onbusinessplansandonbusinessesthatare appropriateforsophisticatedangeland/orprofessional(especiallyventurecapital)investors. Thedrivingforcebehindstartupventuresareentrepreneursthoseindividualswhohavethecourage, insight,knowledge,intensityandlucktoattempttoachievegreatbusinessresultswithoutresources remotelysufficientforthejob(orsoitseemsatfirst).Akeyvehiclefortheentrepreneurseffortisthe businessplanandinmostcasesmultipleversionsofitastheopportunityandbusinesschangeover time!Theplanhelpstheentrepreneurattractsupportandresourcesfromothersbecauseittellsthem whatthebusinessisabout,whatitsstrategywillbe,howitsmanagementthinksandwhatthefinancial risksandrewardsmostlikelywillbe.Italsohelpstheentrepreneurtomanageagrowingand necessarilycomplexsetofdynamicsbyprovidingmilepostsandindicatingtheresourcesthatwillbe necessarytoachievethem.Finally,itprovidesasetofstandardsagainstwhichactualperformancecan becompared.Butagreatplanbyitselfisnoguaranteeofsuccess.Asuccessfulstartuprequires relentlessexecutionagainsttheplanandflexibilityinreevaluatingandchangingtheplan.Theultimate validationsarecustomersordersandascalable,repeatableandprofitablebusiness.

Requirements
Themainrequirementforthecoursewillbethedevelopmentofabusinessplanonaventureofthe studentschoosing,subjecttofacultyapproval.Studentswillworktogether,inteamsoffourorfive,to developanideaforanewventure,researchitspotential,performanalysistoidentifywhatresources areneededandwhen,andwriteaformalbusinessplan.Thisworkservesasthebasisfortwo substantialefforts:first,developmentofawrittenbusinessplan,includingdetailedsalesandmarketing objectivesandfinancialprojections;andsecond,anoralpresentationofthatplantoapanelof instructorsandbusinessprofessionalswhowillbesurrogatesforyourmostlikelysource(s)ofstartup, equitycapital.

Textbook
Thecoursewillusethebook;NewVentureCreationbyJeffTimmons.

Instructors
Thecourseiscotaughtbyateamoftwoinstructors,allofwhomareactiveintheentrepreneurial communityandarenotfulltimefaculty. Officehoursarebyappointment.Contractinformationisasfollows:

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Entrepreneurship 295A-2 JackFuchs NaeemZafar

Bestreachedbyemail(jfuchs@gmail.com). Bestreachedbyemail(nzafar@gmail.com)orbytelephone(4082181920)

Mentors
Inadditiontotheinstructors,4experiencedentrepreneurswillserveasmentorstothebusinessplan groups.(Biosattached).

Grading
Studentswillbegradedonclassattendanceandparticipation,aswellasontheplanandpresentation. Perhapsmorethanmostcourses,thisonewilldependheavilyoninputprovidedbystudents.Itwill combinereadings,lectures,casematerialsandregularclassinvolvementbyentrepreneursandbusiness professionals.Wellpreparedandintellectuallyengagedstudentsareessentialfortheclasstosucceed. Pleasecometoclasspreparedandpleasebepreparedtoworkhardonyourplan. Thecoursegradewillbebasedupon: Thegroupexercise1: Writtenbusinessplan(includingdraftdeliverables) Oralplanpresentation Fromclass: Classparticipationandclassdeliverables 40% 30% 30%

ClassbyClassSyllabus
1
LearningObjectives:Understandcourseobjectivesandkeythemes,considerreasons forwritingabusinessplan,sharebusinessplanideasandthink aboutwhatmakesagreatbusinessplan. Case : Deodorant(casewillbehandedduringclass) WrittenAssignments: By9:00amonJanuary26th(priortothefirstclass!!!!),email tojfuchs@gmail.comwithacopytonzafar@gmail.com:a onehalfpagedescriptionofabusinessideaaboutwhichyou mightwanttowriteabusinessplanintheclasswithatleast onecofounderlisted(anotherstudentfromclass)ifalready identified. Assignedreading: Textbookchapters3&6 Guest: AshwiniChoudhary,CEOVentiva
1

January26

IntroductiontoEntrepreneurshipandBusiness Plans(Fuchs)

Allocationofgradeswithinagroupwillbebasedinpartonteamselfevaluationofindividualeffort.

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Entrepreneurship 295A-2 PlanRelated: Bepreparedinclasstogivea3minutesalespitchforyour businessplanidea(onepergroup,ifyouareshortonteam members).{4to5peopleperteamexpected}

February2

OpportunityAssessment(Zafar)

LearningObjectives:Thinkabouthowtoscreenentrepreneurialideasandbeginto createyourownopportunityscreen. CasetobePrepared: Facebook Assignedreading: textbookchapters4&5 Guest: JonathanAbrams,founderFriendster&Socialzr WrittenAssignments: (1)Injust3or4wordseach,listthefiveprimarycriteriayou woulduseinscreeningyourbusinessplanideastoselectthe mostpromisingone. (2)Atthestartofclass,handinyourteamroster(asfaralong asitmaybe)andadraftofyourteamsbusinessplanidea. PlanRelated: Bepreparedinclasstogivea2minutepitchforyourbusiness planidea(tofinalizeyourteamcomposition).

February9

MarketResearch(Fuchs)

LearningObjectives: Tounderstandhowtoapplyandadaptclassicmarketresearch techniquesandtoolstoentrepreneurialbusinessventures CasetobePrepared: none(willusestudentsmarketresearchplansfordiscussion) Guest: JoshHannah Assignedreading: none Deliverable: finalteam&ideaconceptpaper(1page)

February16(PresidentsDay)NOCLASS
4 February23 BusinessModels,RevenueModels&Channel(Zafar)

LearningObjectives:Tounderstandvariousstartupbusinessmodels,thekeylessonsin businessmodels,howbusinessmodelshaveevolvedwiththe internetandtheimportanceofscalability. CasetobePrepared: none Assignedreading: NoteonBusinessModelAnalysisfortheEntrepreneurby Hamermesh,MarshallandPirmohamed(HBS9802048) Classdeliverable: ExecutiveSummary Gate1ClassActivity: Forthesecondhalfoftheclass,therewillbebreakoutsessions topermitthegroupstoworkwiththementorsandinstructors onthebusinessplanopportunityanddevelopingtheexecutive summaryfortheplan.Eachteamwillpresenttheirbusiness idea,marketresearchandcustomerdiscoveryresults.

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5 March2

SalesStrategy&CustomerValueProposition(Fuchs)

CasetobePrepared: Zaplet LearningObjectives: Whattoconsiderwhilesettingupsalesforyourstartups.What challengesareyoulikelytofaceandhowdecideonpricing, channelissues,positioningversusthecustomerperception AssignedReading: AcceleratingtheSalesLearningCurvebyLeslieandHolloway Guest: RobertLabatt,formerCEOezBoard

6 March9

FinancialModels,Projections&Valuations(Zafar)

LearningObjectives: Learnhowtoprepareandcreatefinancial projectionsandunderstandkeyfinancialassumptions,howto computevaluation&dilution CasetobePrepared ZipCar AssignedReading: 1)Textbookchapters10&12 2)FundingNewVentures:Valuation,Financingand CapitalizationTables Guest: TBD ClassActivity: Bepreparedinclasstopresentthegotomarketstrategyfor yourgroup.Twoteamswillvolunteerforfeedbackfromclass.

7 March16

ProductLaunch&Go2MarketStrategies(Zafar)

LearningObjectives: Howtothinkaboutcreatingabrand,managechannelsand decidehowtobringaproducttomarket(pricing,positioning, launchingaproduct) CasetobePrepared: InvestorSoft Assignedreading: TargetMarkets:EasytoPick,HardtoStickbyGeoffMoore Guest: JayaramBhat(CEOZenprise,VPmarketingMercuryInteractive)

March23(SpringBreak)NOCLASS

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March30

Teamdynamics&softskills(Zafar)
Startupdynamicswithinthefoundingteamandhowthey influencethegrowthofthebusiness,andthekeydosand dontsofpersonnelissuesintheearlyphaseofastartup. Managingandsettingupglobalteams VermeerA&B Textbookchapters:8 TheDisciplineofTeams(HBR) KathrynKranen,CEOofJasperDesignAutomation

CasetobePrepared: Assignedreading: Guest:

April6(GateII)

PresentationSkills&HandlingVC(Zafar)

LearningObjectives: understandhowVCsviewentrepreneurs&howtheprocessof seekinginvestmentworks.Wewillalsodiscusspresentation skillsandprovidefeedbackonindividualstylesofpresentation Classdeliverable YourSalesandMarketingPlan AssignedReading: none

Gate2
ClassActivityForthefirsthalfoftheclass,therewillbe breakoutsessions.Allgroupswillpresentthesalesand marketingplanfortheirprojectandsolicitpeerfeedback.They willworkwiththementorstofinetune.

10 April13 Operations&Partnerships(Fuchs)

Tounderstandtheimportanceofplanningforoperational success,especiallyintheareasofmanufacturing,supplychain anddistribution.Howtoforgekeypartnershipsforan entrepreneurialventure. CasetobePrepared: DANGER Assignedreading: None Guest: MarkFisher,COODanger(MSFT)

LearningObjectives:

11

April20

ScalingaNonTechnologyBusiness(Fuchs)

CasetobePrepared: GordonBiersch LearningObjectives: Whattoconsiderwhileworkinganontechnologybusiness howtoscaleitanddecideonpricing,channelissues,positioning versusthecustomerperception AssignedReading: none

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Entrepreneurship 295A-2 Guest: Classactivity: PeterCooperstien,founder&CEOAmiciPizza 12teamswillvolunteertosharetheirfinancialplans

12

April27

VentureFinancing,TermSheets,CompanyFormation,IP(Zafar)

(1)Understandabasicventurecapitalstructureandtermsheet, and(2)Thinkabouthowtoaligntheobjectivesandagendasof thefoundersandinvestors CasetobePrepared: Trendsetters Assignedreading: DealStructureandDealTerms(HBS) Optionalreading: Textbookchapters13&14 Guest TBD ClassDeliverable: yourkeyfinancialassumptionsandyourteamfinancialplans

LearningObjectives:

13

May4

PresentationPractice(all)
Allteamspresentfirst5minutesoftheirVCpresentationand seekfeedbackfrominstructorsandpeersfeedbackfromVC onwhattheyliketoseeandnotseefromentrepreneurs none none TBD

CasetobePrepared: Assignedreading: Guest:

14

May11

WrapUp&ReflectionsonEntrepreneurship(all)

LearningObjectives: Realworldlessonsfromaclassonentrepreneurship Assignedreading: TheQuestionsEveryEntrepreneurMustAnswer(HBS:Bhide) Optionalreading: Textbookchapters19 Guest: SohaibAbbasi,Chairman&CEO,Informatica BusinessPlanDeliverable:BusinessPlans(4copiesplease!!!!!)

InstructorsBios:

JackFuchs
Jackcurrentlyprovidesglobalbusiness,financialandstrategicleadershipforForteBIO,aPharmaandBiotech instrumentationcompany.PriortoForteBIO,Jackheldbusinessleadershiproleswithtwoprivatecompanies.At SOMANetworkshehandledglobalstrategicaccounts,marketingandpartnerships.PriortojoiningSOMA Networks,JackwastheVicePresidentforBusinessDevelopmentandStrategicMarketingatIPWireless,Inc, leadingthecommercialactivitiesofIPWireless.Previouslyinhiscareer,Jackservedsevenyearsasastrategic managementconsultantatMcKinsey&Company,whereheservedhealthcareandwirelessclients.Hehasalso heldsales,marketingandstrategicleadershiproleswithBectonDickinson,a$4Billionmedicaltechnology equipmentcompany.JackgraduatedmagnacumlaudefromDartmouthCollegewithabachelor'sdegreein EngineeringSciencesandreceivedanM.B.A.fromStanfordUniversity'sGraduateSchoolofBusiness.

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NaeemZafar

NaeemfoundedConcordiaVentures(www.ConcordiaVentures.com),anadvisoryfirmfocusedonguiding entrepreneurswithallaspectsofstartingandrunningacompany.Naeemhasbeenwithsixstartupsandhas extensiveexperienceinmentoringfoundersandcoachingCEOs.HislastassignmentwasthepresidentandCEOof PyxisTechnologyInc.,aventurefundedcompanyspecializinginadvancedchipdesignsoftwarefornanometer technology.NaeemhasbeenpresidentandCEOoftwootherhightechstartups(SiliconDesignSystemsand Veridicom,aBellLabsspinoffthatinventedthesiliconfingerprintsensorstodayfoundonmostlaptops).Naeem hasheldseniormarketingandengineeringpositionsatseveralcompaniesincludingQuickturnDesignSystemsthat hejoinedatitsinfancyandstayedfor11yearsuntilitwassoldtoCadenceDesignsystems.QuickturndidanIPO in1993andgrewto$125Minrevenues. NaeemholdsaBachelorofSciencedegreeinelectricalengineeringfromBrownUniversity(magnacumlaude), RhodeIsland,andamaster'sdegreeinelectricalengineeringfromtheUniversityofMinnesota.Naeemserveson advisoryboardofsixcompaniesandisachartermemberofTiE(worldslargestnonprofitfocusedonfostering entrepreneurship)andachartermemberofOPENwherehealsoholdsthepostofgeneralsecretaryfortheSilicon Valleychapter.HeisamemberofBoardofDirectorsofAanukaaInc.andNumetricsPvt.Ltd.andisanadvisorto theLahoreUniversityofManagementSciences(LUMS)inPakistanwhereheservesasanadvisorto Entrepreneurship&Small&MediumEnterpriseCenter(ESMEC).

Mentors:

MichaelK.MadisonII.
mikemadison@mba.berkeley.edu

KauffmanFellow,HaloFund/TheAngelsForum
MichaelMadisonwaspracticallybornintothesoftwareindustryandstartedwritingsoftwareinthe2ndgrade.By thetimehewasinthe6thgradehewascontributingtoNASALangleyssupercomputermanagementsystems,by 8thgradehewasatechnicalleadatasoftwarestartupthateventuallywentpublic(NDIacquiredbyARI).Andby the time he finished highschool he had 11 years of programming experience, 7 years of which were in highly technicalrigorousenvironments.Yearslater,Michaelspassionfortechnology,businessandcontinuouslearning ledhimtoventurecapitalthroughtheKauffmanFellowsProgram.MichaeljoinedTheHaloFundsandTheAngels ForumasaKauffmanFellowin2007,bringing16yearsofleadershipincuttingedgesoftwareproductdesignand strategicmanagement.Beforejoining,hewasaStatisticalAnalystandQAToolsleadatTellmeNetworks(acquired byMicrosoft),whilesimultaneouslycompletinghisMBAatBerkeley.Priortothat,in2001Michaelfoundedand bootstrapped Noble Science Inc., a virtual surgery company that created a surgical simulation platform that allowedsurgeonstotraininariskfreeenvironmentusingimmersive3Dgraphicsandtactilefeedback.Michaels other experiences include technical and strategic leadership roles that span a breadth of disciplines including particle physics, medical simulation (virtual surgery and computeraided cancer detection), videogames, flight simulation, supercomputer management, semiconductors, operating system design, telecom/VoIP, radiography, consumer electronics and consumer Internet. Over his career, Michael has saved various corporations and governmentinstitutionswellover$100M. MichaelhasanMBAfromUCBerkeley,anMSinElectricalEngineeringfromStanfordUniversityandaBSin ComputerEngineeringfromUMBC,wherehegraduated#1inhisdepartmentasaMeyerhoffScholar.

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CarlNichols carl@nichols.com
CarlNicholscofoundedOutlookin1996andhasmorethan20yearsofexperienceinthesoftware,computer, telecommunicationsandconsumerproductsindustries.Nicholshasheldseniorexecutivepositionsinthestrategic planning,businessdevelopment,operationsmanagement,marketdevelopmentandfinancedepartmentsof severalmajorcompanies.PriortoOutlook,NicholsheadedstrategicandfinancialplanningatSBC/PacificBell,an $8billiontelecommunicationsandInternetserviceprovider,wherehewasresponsibleforidentifyingnewgrowth opportunitiesandbusinesslines,developingstrategicpartnershipsandoptimizingthecompany'sinvestments. BeforejoiningSBC/PacificBell,NicholswasVicePresidentofStrategicBusinessManagementatScrivner,Inc.,a$6 billionpackagedgoodsdistributor.Heledthecompany'sbusinessdevelopmentefforts,includingmarket expansions,newconceptdevelopments,domesticandinternationalalliancesandoperatingimprovements. PriortoScrivner,NicholsspentsixyearsasamanagementconsultantatBooz,Allen&Hamilton,wherehe providedmarketing,technologyandoperatingguidanceforhisFortune500clients,whichincludedcomputer manufacturers,broadbandserviceproviders,retailersandfinancialinstitutions.PriortoBooz,Allen&Hamilton, NicholsservedatAT&T'sInformationSystemsInternationalbusinesswherehedevelopedmarketingplansforthe company'sentryintoEuropeandledsystemsdevelopmentatSpectrumDevelopment.Nicholshasrepresented OutlookontheBoardofportfoliocompaniessuchasClairMail,LassoLogic(acquiredbySonicWALLN:SNWL), Epicentric(acquiredbyVignetteN:VIGN),MarketHome(acquiredbyClickActionN:CLAC),Arthas(acquiredby YahooN:YHOO),Toolwire,VantosandKinecta(acquiredbyStellentN:STEL). NicholsreceivedaBachelorofSciencedegreeincomputersciencemagnacumlaudefromBrownUniversityand anMBAfromHarvard'sGraduateSchoolofBusiness.Heenjoysskiing,scubadivingandsailing.

NikBahram nikb@venova.com8315881356
NikBahramhasextensiveClevelandGMexperiencewith4Fortune500companiesand5startups.Hehas deepexperienceinmarketing/sales,productmanagementandengineeringwithresponsibilityformultiple productlines.NikhasdirectexperiencewithP&Lsofupto$800Minrevenue,$50Minstartupfundraising,as wellassubstantialM&Aandexitsonthebuyandsellsidetotaling$3.4B.Hiscontributionshavebeenmade inhighgrowthandturnaroundsettings.Hehas7patentsandnumerouspublicationsandindustryand investorpresentationstohiscredit.NikHoldsaBSEE,MSEEfromUniversityofPittsburgh,aMasterof ScienceinFinancefromBostonCollegeandaCertificateinBusinessAdministrationfromHarvard. AtAgereSystems,NikwasresponsiblefordefiningthestrategicdirectionandbusinessplanfortheStorage BusinessUnitacrossallproductsaswellasdefiningnewbreakthroughproductsthatredefinedthelandscape ofthestorageindustry.NikwasthecoinventoroftheAgereBluOnyxandresponsibleforthisproductline. PriortoAgere,Nikspent25yearsinavarietyofrolesfocusedondeliveringITandconsumersystems, chipsetsandwebsoftwaresolutions. Duringthefirst15yearsofhiscareerheservedinFortune500companiesincludingMotorolaandDigital EquipmentCorporationnowHPandduringthelatter10yearsheservedinmultiplestartupsthatdeveloped SAN,WLAN,3DgraphicsandmediaplayerchipsetsaswellasnanoelectronicsstorageandLEDlighting materials. NikwasVicePresidentofMarketing&SalesatIntematixCorporationwhereheledthe15xrevenuegrowthof thisnanomaterialscompanyfocusedGreenMaterialstargetingsemiconductorstorage,lightingandenergy sectors;VicePresidentofEngineeringatTrebiaCorporationaStorageAreaNetworkChipsetcompany focusedonswitchandserversideSANchipsetsandsoftware;VicePresidentofCorporateVenturesincharge

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ofcorporatestrategyandM&AatSystemonicCorporationamultiprotocolsoftwaredefinedWLANchipset company;ChiefOperatingOfficerandGeneralManageratSurfcontrolanInternetAccessManagement softwarecompany;VicePresidentofProductDevelopmentatCreativeLabsaconsumerelectronicscompany; VPofEngineeringandsubsequentlyPresidentatSiliconEngineeringanIPdevelopmentanddesignservices companyfocusedonStorage,graphicsandcommunicationsIClevelIP.Niksearliercareerincluded managementandengineeringrolesinDesign,ApplicationsandDeviceEngineeringatDigitalEquipment Corporation,SpragueSemiconductor,MotorolaSemiconductorandatBrownBoveriCSI.

MikeTzamaloukasmike_tzamaloukas@mba.berkeley.edu

MikefoundedDashNavigationin2002inanefforttorevolutionizethewaythattraditionalnavigationsystems work.FundedbySequoia,KPCBandothertoptierventurecapitalfirms,DashNavigationintroducedthefirsttwo wayconnectedpersonalnavigationdevice,changingthelandscapeofamultibillionmarketformanyyearsto come.PriortoDashNavigation,MikewastheChiefScientistatAmbicomInc.anotherSiliconValleystartupthat specializedonaccessoriesforthemobileprofessional.BeforejoiningAmbicom,Mikewasasoftwareengineerat SRIInternational. Inhissparetime,Mikeenjoysturningideasintoexcitingbusinessplans.Hefrequentlyconsultswithother entrepreneursorearlystagestartupsonhowtodevelopawinningstrategy.Heisnotafraidtorolluphissleeves andspendthepersonaltimeandeffortneededtohelpothersavoidsomeoftheusualobstacleslikelytooccurin mostnewventures.EntrepreneurshipisinMikesDNA.Attheageof9hesetupashadowtheaterinhisbasement wherehewouldentertainkidsandadultsalike.Hefellinlovewithprogrammingattheageof12andwas fortunatetooccasionallygetpaidforsomethingthathewoulddoanyways,justforfun. MikeholdsabachelordegreeincomputersciencefromPatrasUniversityinGreece,masterandPh.D.degreesin computerengineeringfromtheUniversityofCalifornia,SantaCruzandheisawaitinganMBAdegreefromthe UniversityofCalifornia,Berkeley.Mikeistheinventorormorethanadozenpatents,hehaspublishedseveral highlyregardedscientificpapersandheisafrequentspeakeratbothacademicandbusinessevents.

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