I. BRONCHOBATS – PETER BINGHAM

BronchoBats possesses a rare combination for a Vermont-based business. It appears high growth potential and social responsibility need not be mutually exclusive. The growth aspect is fairly obvious: expanding this product beyond the initial customer of people who suffer from cystic fibrosis and to the general gamer can reduce the critique against video games that they simply waste time and distract kids of all ages. Addressing this problem increases the long-term market greatly and makes the product generally more attractive. BronchoBats is socially responsible because it targets a group that typically suffers from social isolation and because it gives back to this community by donating some of its profits to research. Moreover, this social responsibility can also help attract a different kind of investor that may be helpful in launching the product.

Peter is undoubtedly comfortable in his delivery and confident in his product which radiates during the entire presentation. Venture capitalists invest in not just a product or a business idea, but also the people involved. Even with all this in mind, I do have some questions and comments. How do you integrate this new breathing technology into the current games? Is the breathing regulator the same for every game? Can you just plug and play? Creating a new market space – more risky or profitable? A brief explanation of how the product works would be helpful. Also, a real world example of how this integrates into a specific game could enhance the understanding of the product. Revenue seems conservative enough, but I anticipate higher costs, not only for initial research and development, but also for continuous growth. Are you looking for investment dollars, or just a business-minded person to help? If so, with fairly low growth projections, BronchoBats may attract a socially conscious investor. Can the market expand beyond the current customer base and into just a consumer culture? This really could expand growth numbers.

II. CSLMATERIALS – CHRIS SINTON

I’m naturally inclined to like relatively mundane products with strong prospects, hence I’m very intrigued by this product. Despite my limited knowledge of the chemistry of concrete, the tetrajack technology appears to be revolutionary and have major implications in the construction industry. A 30% increase in the strength of concrete can not only reduce the total amount of concrete used, but it can also improve architectural designs. I’ve worked on building houses for three years and am by no means an engineer, but CSLmaterials will have a significant impact on many aspects of both residential and commercial building. The increased strength is where CSLmaterials adds the most value and therefore must be leveraged to the fullest extent. When looking at the financials, if a builder needs 30% less material, won’t the cost of the other ingredients of concrete be reduced? If so, this concept needs to be flushed out further as it will cut costs on a major scale.

And some general questions/comments: Who is currently supply rock aggregate to the high strength concrete industry? Is there one company that has monopolized the rock reserves so that the supply line is limited? 30% increase in concrete strength has enormous benefits for the construction industry - what types of construction will this most impact? How do you get your product out there so that the architects and engineers will be fully aware of this new material? Do you have an engineer on your team that can be a catalyst for this process? Cost equivalent per ton is an effective way to compare costs. Cost curve are for intermediate micro text books and not necessarily a real world phenomenon. Therefore, this slide does not add much value. For a bridge that we all know, can you mention a ton estimate for concrete use so we can get a better idea of how much concrete really is used? Where are you producing these tetrajacks and how will you distribute the product in a cost-effective manner? Is this high strength concrete best applied to urban construction, or does it also have applications in rural areas? What ways can you change the business model so that you can achieve growth at an investable rate? Are there some applications where you simply can’t use less concrete? In this scenario, how do you add value and save cost? Will this affect building codes?

III. MOPEDLITE – MARK WOOD
The first company to have a mantra: “control your destination.” In general, I think bullets are better than centered text on power point presentations. This is an interesting product, but I don’t think the design is particularly sleek or appealing. With something like this, the aesthetics are almost as important as the practicality of the product. I have some thoughts about your targeted customer. Competition is a variety of transportation methods – moped, bike, motorized bike, public transportation – must find specific niche. Also, the camp ground thing seems like a good idea in theory, but why would a camp ground prefer this product over a standard moped made by Yamaha, Vespa, or another company? These trusted mopeds are not that much more expensive and they are certifiably reliable and more comfortable and practical. I agree that exposure through campgrounds is highly desirable and would lead to renters becoming buyers, but I’m not sure why a campground would be interested in this foldable version. Don’t they have enough space as is? Targeting RV dealers seems like a more viable option as this type of customer seems likely to be interested in accessorizing. But, how big of a market are we talking about?

Some questions/comments: Have you thought about alternative power for your moped? What kind of gas-mileage does it get? What happens to the gas tank when you want to store the moped? Three distribution channels: RV Dealers, RV Parks and Campgrounds, and website. 4 Penetration Tactics: ARVC/RVDA, Trade Shows, Trade Magazines, Community of Believers (this reminds me of the Mac vs. PC idea. Growth potential in other segments such as university students, private plane owners, boat owners, etc. Are the sales at RV dealers reasonable to obtain? Will varying state regulations restrict interstate use, i.e. will a traveling RV-er be interested in buying something that can’t be used in every state?

IV. VENUE CZAR
The problem and solution are clearly identified and well presented, although the red and blue fonts have to go – they are distracting and sloppy. Centralizing process of booking bands seems like a great idea. I never realized how expensive (copying and sending out the demo tape) and how much of a hassle (many lines of communication, logistical nightmare, etc) it was to book performances. This is a huge cost. The calendar function on the website is very valuable and would help for performers looking to do shows in multiple parts of the country. I worry that not all music regions are created equal. For example, is the Burlington scene anything like one in New York or a Chicago suburb? It seems that the environments would be drastically different and therefore pose a problem for making this business idea work for all these different types of region. It is clear the founders of Venue Czar understand Burlington and have lots of local knowledge. The challenge will be to apply this to other markets. Is there are way to have a regional “coordinator” that helps to specialize each segment? This system relies on bands buying into this new process and supplying the labor, in effect. Is this something that will happen? How might you attract them to use your service? Viral marketing is important, but only to a certain extent. MySpace and Yahoo are serious threats. They have the ability to do this very easily at relatively no cost. Essentially, they already have that brand and are recognized around the world. They could leverage this very easily to create a product similar to Venue Czar. What benefit does the local media have for being apart of this online community. 11 million hits - how is this possible? This seems like a classic example of Guy Kawasaki arguing that sometimes the business heads are so stuck in their own idea that they become unreasonable about growth expectations. How is it possible to get 11 million hits? Ken Merrit looks to finally be happy that a business has an exit strategy! Selling to a social networking player like MySpace or Yahoo seems like a good option so long as you can grow Venue Czar on your own.

V. WORKSHOP
Ken Merritt – Historical perspective on Vermont entrepreneurial history. Vermont Venture capital fund was just getting off the ground in the mid 1990s, Fresh Tracks came on the scene in 2000. The landscape has changed dramatically since the early VC. Angel capital market is particularly active in Vermont partially because of the values of the state and its social responsibility (like the philanthropreneur idea). Less vibrant venture capital culture because it’s harder to interest a venture fund in Cambridge about a startup in Vermont. Another problem about startups in Vermont is scalability. It’s very difficult to get off the ground and grow quickly due to the nature of the state.

Richard Munkelwitz – Program Director, Vermont Small Business Development Center. One way to start a company is by having a technological breakthrough. Also, there are a lot of people with low expectations in Vermont who are passionate about what they want to do but even more passionate about where they want to be. Therefore, the returns to investment are fairly modest. This class is willing to sacrifice oil and blood. The last group is one that has the ability to grow but is tough to get off the ground. One of Richard’s personal goals is to create jobs in Vermont.

Kerry Swift – Technology Licensing Officer, UVM Office of Technology Transfer. She is at the conception stage of product and business development. Works with new ideas and asks the question – is this a business, is there a product, who is going to take it? She also works with companies to get patent protection. Most of her clients are scientists who won’t leave their job for a while to get something going. She is a matchmaker who sparks initial business discussion with inventors, and supports and helps pay for the patent process. There is still a gap between university research and business models and strategy. Kerry and her team is still working on making this process work better – hoping to sign on more business oriented people in order to attract better money and more interesting businesses.

Janice St. Onge – Director, Vermont Business Center, UVM. VC invests in PEOPLE
Top 5 challenges – PP
Building the team
1. Growing pains
• company culture
• informal to formal
• resistance to change…but that’s the way we’ve always done things
• planning – what’s that?!
2. Financial literacy
3. Relationships and customers
• get out more
• follow through
• network – return the favor
• win – win approach
• approach everything from the customers’ perspective
4. Leadership and learning
• #1 reason for employee disengagement = management/leadership
• importance of job satisfaction
• Darwin’s theory and learning
• Best Places to work in Vermont
• role as a leader
Vermont Business Center - PP
• VT family business initiative
• Management development seminars
• Professional certificates in leadership and coaching
• Custom traning programs
• Franklin covey
• Business savvy
• Business outreach
“experience is something you get just after you need it”

QUESTION AND ANSWER
Q: primary takeaway is that VT is a tough place to start a business…
A: Tough to get investors and simultaneously maintain the Vermont values and social responsibility.
Q: New models, outsourcing?
A: There is hope, however. Innovation can occur on the business models as well as scientific models. With creativity, these things can be achieved. King Arthur Four as a model for success in Vermont. They have created a brand and have a perceived quality above many of the national companies.
Q: is Vermont unique, or is social responsibility a more widespread issue?
A: VT is definitely up there, but not necessarily the only one. Many examples of Vermont businesses that can’t exist without outsourcing. That is, the world is flat. There are ways to raise money. Also, there is nothing wrong with a lifestyle business, that is one of the gems of Vermont – doing something you really enjoy in a place you enjoy without needing extra capital. The network in Vermont of people genuinely interested in helping people out while trying to start businesses – this phenomenon is a great asset to the state.