Slide 1:IIT Mumbai October 23, 2005 Arman Zand, Vice President SVB India Advisors


Agenda:2 Agenda About Silicon Valley Bank SVB India Activities Business Plan for VC Funding Concepts – The W’s Outline Tips What to Avoid Financial Projection Formula Resources Recommended Reading Questions


Slide 3:About Silicon Valley Bank SVB India Advisors Pvt. Ltd. is a subsidiary of Silicon Valley Bank


Silicon Valley Bank:4 Silicon Valley Bank


SVB’s Global Banking Network:5 SVB’s Global Banking Network Argentina Australia Austria Belgium Brazil Croatia Cyprus Czech Republic Denmark Ecuador Egypt Estonia Finland France Germany Greece Hong Kong Hungary Iceland India Indonesia Ireland Israel Italy Japan Korea Latvia Lithuania Malaysia Mexico Netherlands New Zealand Norway Paraguay Peru Philippines Poland Portugal Russia Singapore South Africa Spain Sweden Switzerland Taiwan Thailand Turkey United Arab Emirates United Kingdom Uruguay Venezuela SVB Offices SVB’s Banking Network Bangalore London US * Offices in London and Bangalore are subsidiaries of Silicon Valley Bank


Select U.S.-Based Clients:6 Select U.S.-Based Clients Advanced Power Technology Inc. Bend, OR Dyax Corp. Cambridge, MA R2 Technology Inc. Sunnyvale, CA Akamai Technologies Inc. Cambridge, MA Isis Pharmaceuticals Inc. Carlsbad, CA Vitesse Semiconductor Corp. Camarillo, CA AtherosCommunications Inc. Sunnyvale, CA Manugistics Inc. Rockville, MD Webmethods Inc. Fairfax, VA


Slide 7:About SVB India Advisors SVB India Advisors Pvt Ltd is a subsidiary of Silicon Valley Bank. Neither SVB India Advisors Pvt Ltd nor Silicon Valley Bank is licensed to carry on banking business in India and neither entity engages in unlicensed banking activities.


Five Primary Objectives of SVB India Advisors:8 Five Primary Objectives of SVB India Advisors Introduce Indian companies to potential foreign capital sources including U.S. and U.K.-based VCs Assist U.S.-based clients in leveraging India for research and development (ODC) Become the hub for technology entrepreneurs and investors Market and present Silicon Valley Bank products and services Provide market intelligence and due diligence to SVB lending teams SVB India Advisors Does Not Provide Financial Services


SVB India Advisors Supports VCs:9 SVB India Advisors Supports VCs Provide access to deal flow and investment opportunities Assist and advise portfolio companies as they leverage India Assist with market visibility, including local speaking opportunities Local support and assistance Bridge the gap between local entrepreneurs and U.S. VCs


Slide 10:10 Business Plans for VC Funding


Business Plan Concept – The W’s:11 Business Plan Concept – The W’s What do you want to accomplish? Why is there an opportunity? How will you achieve your goals? When do you expect to hit your milestones? Who are you and who will help you in this initiative? Where will you be in two years?


Business Plan Outline:12 Business Plan Outline I. Executive Summary 2. Table of Contents 3. Situation Analysis 4. Business Objectives 5. Management 6. Market Analysis 7. Business Development Strategy 8. Financial Review


Business Plan Tips:13 Business Plan Tips No more than 25 pages Know your competition. Know your audience. Have proof to back up every claim you make. Be conservative in all financial estimates and projections. Be realistic with time and resources available. Be logical. Have a strong management team.


What to Avoid:14 What to Avoid Form over substance. Empty claims. Rumors about the competition. Superlatives and strong adjectives. Long documents. Over estimating on your financial projections Overly optimistic time frames Gimmicks. Typos, misspelled words, bad grammar and too many acronyms Amateurish financial projections.


Financial Projection Formula:15 Financial Projection Formula Addressable Market less - Total Market multiplied by x Market Share as a function of ƒ Business Development Plan and + Pricing Model will derive = Backlog as a function of ƒ Sales Cycle equals = Pipeline and + Sales Forecast Sales forecast is a function of market, business model, and sales cycle THE NUMBERS SHOULD ADD UP!!!!


More Resources:16 More Resources www.MyBusinessAnalyst.com  www.goodtogobusinessplans.com    www.bplans.com www.businessplans.org www.morebusines.com www.users.cloud9.net/~kvivian/


Recommended Reading:Recommended Reading


Questions ?:Questions ?