Week 4 of UGA’s Fall 2020 I-Corps cohort covered expense reimbursements, revenue models and streams, cost structures, and presentation pitches.
I-Corps teams are awarded up to $3,000 in funding to support their customer discovery efforts, which typically include traveling to conferences or to conduct interviews with potential customers. Because of COVID-19 travel restrictions, those reimbursable expenses have expanded to include videoconferencing equipment and other technological tools.
Other financial topics and subjects were addressed too. Revenue streams refer to sources of revenue, while revenue models are the strategies a company uses to make money from their customer segments. Cost structure refers to the costs a business incurs while operating a business.
To help teams prepare for the I-Corps Showcase on Oct. 26, the remainder of the week focused on best practices for successfully pitching to investors. I-Corps pitches should include seven basic elements:
3. Value proposition
4. Market size
5. Customer discovery
6. Team members
The pitch should address the problem a company is attempting to solve and provide a clear description of its solution to the problem. The value proposition is the business thesis explaining why a customer will purchase such a solution, and the market size should identify the total addressable market, served available market and target market.
Presentations should also incorporate the significance of the customer discovery process, particularly any assumptions that were either confirmed or contradicted. It is important to conclude the pitch by summarizing future plans and the resources a company will need to succeed.