invention 2 venture: dr. kenji uchino

2.1. Stock vs Loan 2.2 Partnership 2.3 Venture Capital/Angel Money 2.4 Bank

Dekker/CRC (2003)

from CRC Press (2009)

This Book Chapter MBA Course Curriculum Chapter 1 Industrial Evolution Entrepreneurship Chapter 2 Best Selling Devices N/A Chapter 3 Corporation Startup Entrepreneurship Chapter 4 Business Plan Strategic Management; Entrepreneurship Chapter 5 Corporate Capital and Funds Entrepreneurship Chapter 6 Corporate Operation Management Accounting;

Financial Management Managerial Economics; Investment Analysis

Chapter 7 Quantitative Business Analysis Quantitative Business Analysis Chapter 8 Marketing Strategy Marketing Management Chapter 9 Intellectual Properties N/A Chapter 10 Human Resources Human Resource Management Chapter 11 Business Strategy Strategic Management; Policy Analysis Chapter 12 Corporate Ethics Business and Society;

Ethics in Management Chapter 13 Now Your Turn Perspectives on Management;

Managerial Communications

Stock (Equity): •  You do not need to pay back the initial investment amount •  You need to pay the stock dividend with the effective annual return rate around 10-12%, higher than the interest rate of loan. •  The dividend distribution may not start in the first 5 -7 years after the startup. Loan (Debt): •  You must pay back the total amount of the principal and the interest by the end of the loan period. •  The interest rate is usually lower than the stock return rate, typically 5 – 10%. •  A short-term loan (less than one year) has a lower interest rate than a long-term loan (3-5 years).

Eligibility of Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs: Small Business = (1)  with 500 or fewer employees, and (2) with annual revenue under

$5,000,000

SBIR Criteria (Important 5): 1.  500 or fewer employees, 2.  annual revenue under $5,000,000. 3.  Is independently owned and operated, not dominant in

the field of operation in which it is proposing, has a place of businesses in the United States and operates primarily within the United States or makes a significant contribution to the US economy, and is organized for profit.

1.  Cover page, including the submitter's information. 2.  Executive summary, including the most attractive picture or figure

of your proposed product. 3.  Background, including the market trends, how much your company

can expect for the revenue based on this investment. 4.  Literature survey, sub-sectioned into several number of the

previous studies, with a final summary table in terms of merit/demerit of each previous design.

5.  Your proposed design: Explicitly mention your targeted specs, and how your design overcomes the previous problems.

6.  Approach and Milestone: Detailed discussion, including the time and money (related with the budget calculation).

7.  Others, which include patent application, future manufacturing plan 8.  References, Principal Investigator's capability (bio) and facility

introduction 9.  Budget summary 10.  Appendix, including the support letter from the partners.

  CENTRE COUNTY INDUSTRIAL DEVELOPMENT CORPORATION www.centrecountyidc.org

  PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY www.pidc-pa.org/svc-fina-loanprog-h.asp?itemid=1

Eligible Activities

  Acquisition of land & buildings   New construction or rehabilitation   Leasehold Improvements   Machinery & Equipment   Working Capital

  To acquire inventory or wages of new employees

CENTRE COUNTY INDUSTRIAL DEVELOPMENT CORPORATION

CENTRE COUNTY INDUSTRIAL DEVELOPMENT CORPORATION

Revolving Loan Fund

•  Createorretainonenewjobforevery$50,000inloanproceeds.

•  Reten;onprojectsarecompe;;ve– Financialstability– 175%ofminimumwage

Eligibility   Manufacturing   Industrial   Research & Development   Agricultural Processor   Firms establishing a national or regional

headquarters   Computer/clerical operation centers

PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY

PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY

LOW INTEREST FINANCING THROUGH INDUSTRIAL DEVELOPMENT CORPORATIONS FOR LAND AND BUILDING ACQUISITION, CONSTRUCTION, OR RENOVATION RESULTING IN THE CREATION OR RETENTION OF JOBS

•  Landandbuildingacquisi;on•  Buildingconstruc;onandrenova;on•  IndustrialParkDevelopment

•  Mul;‐tenantspecbuildingconstruc;on,acquisi;onandrenova;on

END

Thank you!

invention 2 venture: dr. kenji uchino

Economy & Finance