Phase Iii: Dare to Dream Integration Application Winter 2016

Phase III: Integration Application

ZLI GRANT PROGRAM PHASE III: DARE TO DREAM INTEGRATION APPLICATION – WINTER 2016

Applications are due by 8:00 a.m. on Friday, January 29, 2016 via email to [email protected] as ONE pdf file. A complete application includes this cover page, the feasibility study (see Section 2 of this application), and resumes for ALL team members.

If your team is selected to receive an Integration grant, you must complete the following requirements in order to receive the money: 1. At least half of your team must attend the following workshops, but we STRONGLY recommend all team members attend: a. Startup Workshop: Startup Funding for First Time Entrepreneurs – Wednesday, February 17th, 5:00 p.m. – 6:30 p.m., R2230 b. Startup Workshop: Communicating with Investors – Thursday, February 18th, 5:00 p.m. – 6:30 p.m., R1220 c. Startup Workshop: Startup Financials – Monday, February 22nd, 5:00 p.m. – 7:00 p.m., R2210 2. Attend office hours with ZLI staff. More details will be provided if you are selected. 3. Submit your business plan by 8:00 a.m. on Monday, May 23rd. If your deliverable isn’t approved, you will have a chance to revise and resubmit.

Section 1: Team Information The first person listed here will be the contact person for communication and payment processing. Include a one-page resume for each person listed. Did you read the requirements above?

Name of Business

umich email: Degree and grad Team Lead Name: date: UMID number: umich email: Team Member #2 Degree and grad Name: date: UMID number: umich email: Team Member #3 Degree and grad Name: date: UMID number: Phase III: Integration Application

umich email: Team Member #4 Degree and grad Name: date: UMID number: umich email: Team Member #5 Degree and grad Name: date: UMID number: Phase III: Integration Application

Section 2: Feasibility Study The Feasibility Study should demonstrate sound reasoning and evidence to move forward with the proposed business. The business should be designed to extract value from a product or service that is an innovative solution to a current market situation and is scalable with large market potential. The outline for a 10-page (11-point font with 1 inch margins) Feasibility Study is below. 1) Introduction – Start with a core concept statement that states what you sell; what type of business you are; what business activities you will execute; how you will capture revenue; and the current status of both the product and business (essentially a paragraph or two description of your Business Construct).

2) Market Assessment a) Market Sizing & Growth Rate a.i) Total Addressable Market a.ii)Target Market a.iii) Initial Target Segment

3) Financial Feasibility a) Revenue a.i) Estimated Price/EBITDA Margin a.ii)Estimated adoption rate (base on …?) b) Business-building Cost Estimates b.i) How much will it take to develop this business? b.ii) Over what period of time?

c) Financing the Business c.i) Based on the Investability Framework what type of financing best fits this business? c.ii)Equity Financing (c.ii.1) Potential Value at exit (c.ii.2) Can equity investors meet return expectations? c.iii) Non-equity/bootstrapping (c.iii.1) Cash flow & break-even models (c.iii.2) Ability to obtain debt c.iii.2.a.i.1. How to you financially manage pre-debt? (c.iii.3) Under what conditions does this venture make financial sense? d) What are 3-5 key Critical Success Factors? e) What is the likelihood of these CSFs falling in the range necessary for success based on Phase III: Integration Application

your research? Explain.

4) Sustainable Differentiation a) How is your product differentiated in the mind of the customer? b) How will you maintain this differentiation / keep others out over time? c) How do your team’s core competencies align with this differentiation?

5) Industry Reaction a) Where do you fit in the current industry ecosystem? b) How will you be capturing value at the industry-level? c) Is this an attractive industry to launch a business? c.i) Will it allow you to capture the value you create? d) How do you believe the industry will react to your launch?

6) How will you spend the $5,000 grant? Be specific.

A Feasibility Study generally includes a conclusion. As an application to Dare to Dream Integration, it is assumed that you conclude that this business is feasible and you are planning on moving forward.