Course

LEAN ENTREPRENEURSHIP PROJECT

Academic Year: 2016/2017 Semester: 2nd Instructor(s): João Trigo Roza & Carla Wadewitz

Course Description: Starting any new business is difficult. The probabilities of success are historically low. According to the Instituto Nacional de Estatística (INE - Institute for National Statistics of Portugal), only 52% of new businesses in Portugal survive until their second year. Research on new product success suggests it takes 58 new product ideas to deliver a single successful new product or service. Organisations burn billions of dollars as they try to force their new products into markets often with disappointing results. Time and time again however, they return to the same processes that produce market failure. This does not mean the product or service fails to work as intended. Usually, competent organisations produce products and services that meet technical specifications and work as intended. Most failures occur because not enough potential customers want to buy the product or service at a profitable price. This course will present a new approach to starting a business that can significantly increase the chances of success. The main concept is simple but very powerful: before starting a business we have to develop its customers. This course is based on the Business Model Canvas approach proposed by Alex Osterwalder and Yves Pigneur. It will also have students discover the concept of Lean Startup developed by Eric Ries; and the central concept of Client discovery and Validation introduced by Steve Blank. After selecting an idea and designing the Business Model Canvas, each group of students will embark on a journey of defining and testing the different hypothesis that support the Business Model. Along the way it’s possible that the original idea will change as a result of lessons learned through interaction with potential customers. The course will end with the presentation by each team to a group of investors (business angels, venture capitalists, bankers, accelerators, among others) of a Business Plan in the form of an Investment Pitch. The course will be tutored according to the following outline:

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Course Content: This course is structured around five different phases: 1) The Ideation Phase, dedicated to discussing how to find and evaluate business Ideas; 2) The Design Phase, during which we will create the Business Model related to each

team’s idea; 3) The Validation Phase, composed of different steps dedicated to validating the

components of the Business Model and adjusting in accordance with the results of the tests;

4) The Planning Phase, during which we will put together all the chapters of a Business

Plan; 5) The Pitching Phase, consisting of creating and delivering the Investment Pitch. Course participants are required to form teams of four students whose talents, skills and knowledge are complementary. We will discuss how to set up the teams in class. Classes will be highly interactive and students are expected to bring their own contributions to class. Extensive team work outside of class is an essential part of this course. Other factors which are extremely relevant to your team’s functioning are the management and coordination of group effort by appropriate means (telephone, e-mail, Skype, meetings, etc.). Each team will produce an original and comprehensive Business Plan (BP) and an Investment Pitch Deck (PD) as its major final product and will make periodical presentations of its progress in class. The content and organization of the BP and PD will be discussed in class. Important Note: If your business plan has been the subject of class projects in other classes, it is your responsibility to inform the instructor, and to explain how the work performed for this class will be original. Intermediate submission requirements: Each team will have to submit, at due dates to be announced, intermediate parts of its BP. Teams will be required to illustrate some of the intermediate parts to the class. Feedback will not be provided after the turn in of the assignment, but after the planned intermediate presentations. In fact, the presentation is considered part of the assignment and it is necessary in order to clarify issues not fully reviewed in the written document.

Failing to submit intermediate assignments at due dates will negatively affect the final evaluation of the team’s BP. In order to pass this course, you must:

• achieve a composite mark of at least 10; and

• make a satisfactory attempt at all assessment tasks.

Investment Pitch Presentation:

Teams will make a formal presentation of the final Investment Pitch during the exam weeks.

_____________________________________________________________________________ Course Objectives: The main learning objectives are: • Improving the ability to spot and evaluate opportunities for a new business venture; • Thinking in a creative and critical way and solving problems in highly unstructured

circumstances; • Acquiring the concepts and attitude necessary for business entrepreneurship; • Examining a business model as a whole, rather than concentrating separately on its

functional aspects; • Learning the importance of validating the idea and the team before creating a business; • Communicating effectively through presentations and in writing with an investor’s

audience; • Experiencing the benefits of effective teamwork and of peer-group review and feed-back

throughout the planning phases of a new business venture.

Students Responsibilities and Conduct:

Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

A regular and punctual attendance at lectures and seminars is expected in this course.

Students are expected to conduct themselves with consideration and respect for the needs of other fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable. Students should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. Students will be deemed to have received this information. It is also the student’s responsibility to keep the University informed of all changes to his contact details.

_____________________________________________________________________________ Grading:

Grades will be assessed in conformity with the business plan and the pitch deck quality, the partial and final presentations, as well as with the quality of individual class participation. There will be no final exam. However, it is possible that there will be individual and group in-class graded exercises. Grades will be determined by: 1. Group grade (60%):

a) Intermediate Presentations (20%);

b) Business Model Blog and Business Plan (20%);

c) Pitch Deck + Investment Pitch Presentation (20%).

2. Individual grade (40%):

d) Individual class participation and in class performance (20%);

e) Individual contribution to the team’s work - blind peer evaluation (20%).

More details on the group and individual required activities will be provided in class. _____________________________________________________________________________ Bibliography:

Main Textbook:

Alex Osterwalder and Yves Pigneur, “Business Model Generation”, Pub Wiley & Sons, 2010.

Additional readings:

Eric Ries, “The Lean Startup”

Chris Guillebeau “The $100 Dollar Startup”

Other readings and materials will be distributed along the course.

The Internet links mentioned in the class presentations and Steve Blank’s blog (www.steveblank.com) are important additional resources.

Plagiarism:

The University regards plagiarism as a form of academic misconduct, and has very strict rules regarding plagiarism. Please consult the Student’s Office in relation to this matter.

_____________________________________________________________________________ Biography: Professor: João Trigo da Roza

João Trigo da Roza has more than 25 years of business experience and is the President of Portuguese Business Angel Association and founder of Toplever Business Consultants. Born in Lisbon in 1959, graduated Civil Engineering in 1982, M. Sc. in Structural Engineering in 1986 at IST (Lisbon), MBA at Universidade Nova de Lisboa and post graduated in European Economics in 1989 at UCP. He performed an Executive Program for Growing companies at Stanford Business School in and Private Equity Program of Harvard Business School. As business angel João is partner of an investment company, Brains2Market, investing on start-ups on different fields like web applications and services. As executive João was CEO of Portugal Telecom Multimedia.com, CEO of Telepac (ISP), Chairman of Sapo portal, board member of PT Ventures. Joao also served as Board Member of Parque Expo Promoção e Desenvolvimento Imobiliário, the company that was in charge of the urban development project associated with the 1998 Lisbon World Exposition. As a consultant João was Country Manager of AT Kearney, focusing on telecom and banking, strategy and organization and manager at McKinsey & Company where he participated in several projects such as the corporate strategy and design of multi business companies. João is also a Professor of Entrepreneurship at Universidade Católica Portuguesa and a regular collaborator of several media and commentator at TV programs on economics and politics.

Professor: Carla Wadewitz Carla Wadewitz is an experienced investment manager for Banif Investment Bank (BBI). She currently analyses investments proposals (seed, venture, growth) and makes investment decisions on a daily basis. Carla has over 10 years of experience in investment banking and

management consulting, having also worked in the areas of Corporate Finance/M&A and Business Development. Before joining BBI, Carla worked in Australia for 5 years for the Australian Government as a financial and risk manager helping the Government to save approximately $30 million and was later invited to join the team of investment managers of Playford Capital/ITEK Ventures/BioSA Incubator, venture capital organisations with the financial backing of the Australian Government, institutional investors and business angels. During this period she helped to raise over $100 million from public and private institutional investors and business angels to invest in SMEs in the stages of seed capital and start-up, particularly in the areas of technology, environment, agribusiness, science and health. She also made significant contributions to the development of pre-money and post-money valuation models having mentored start-ups with a focus on their international expansion. As an entrepreneur she also invested in some businesses and helped to bring investors to invest in Portuguese and Australian companies through Asia Pacific Business Angels and Venture Capital networks. Carla has a degree in Business and Administration from Universidade Católica Portuguesa, an MBA from the Australian Graduate School of Management (Sydney) and a diploma of Director from the Australian Institute of Company Directors (AICD, Australia). Carla is also a regular speaker in international conferences on issues related to SMEs financing. _____________________________________________________________________________ Contact(s) and Office hours: Contacts: João Trigo da Roza

E-mail: jtroza@apba.pt

Carla Wadewitz

E-mail: carlawadewitz@gmail.com

Office Hours: To be agreed with the students in the 1st week of classes. _____________________________________________________________________________