Competitions and Presentations

Raising money from business plan competitions

Happy Thursday, 👋

Two weeks ago Rice University hosted the world’s largest Business Plan Competition where 42 university startups competed for $3.4 million in prize money. Nine companies received over $100,000 in funding and the top company was awarded almost $1 million from the three-day event.

We also participated in three other business plan competitions during the past few weeks, allowing us to see over 50 companies present in a short timeframe. Each company did an impressive job of presenting and highlighted several recurring themes to discuss.

Our focus this week is to provide teams with insights and suggestions on presentation strategies and discuss what judges typically consider during a competition. Several of these points are incorporated into our reference list for the companies we advise and mentor.

Team Feedback and Perspectives

Business plan competitions, unlike investor pitches, involve multiple companies presenting back-to-back. The format allows judges to more easily compare companies and gather real-time feedback from others in the room. Here are a few observations we made from the various competitions:

⛰ Long Term Vision:  Including a slide outlining the company’s long-term strategy and key goals can be a powerful tool to help investors understand the broader vision. Provide investors with an outline of what the company may look like in five or more years.

🌉 Discussing Challenges:  Sharing a compelling story about how the company overcame initial hurdles not only demonstrates team resilience, but also makes the presentation more memorable and reinforces the team’s capabilities.

🔉 Language Usage:  The way a statement is phrased can significantly influence investor confidence. Instead of saying “we hope to reach profitability…”, consider using “we plan to become profitable…” or “we will reach profitability…”. Small changes in wording can have a substantial impact on how a presentation is received.

🙋‍♂️ Ask For Help:  Besides capital, what else does the team need? Perhaps it’s someone with a specific technical background or an advisor with a unique skill set. Including these requests along with the investment leads to more engagement with the company post-presentation.

What Judges Might Be Thinking

When judging a business plan competition, we often observe how others in the room react to the presentation. Are the judges engaged, taking notes, or are they checking their phones? Sometimes the company or its idea may not be exciting, or perhaps it’s just been a long day of presentations and the judges are fatigued.

If you are presenting and notice those in the audience losing interest, stop talking. A few seconds of silence can effectively reengage an audience. Take a sip of water, walk to the other side of the room, or simply pause after making a key point. Those few seconds will seem like an eternity but by nature when someone stops talking, we tend to look at the presenter. The brief pause can quickly refocus a room’s attention.

We also pay attention to how judges and audience members discuss a company post-presentation. Is there a consensus? Are people actively discussing the presentation, or is the room silent as we wait for the next company? If the competition is open to the public, consider having one of your advisors attend the presentation and listen to the discussions after your company exits the room.

After The Competition

Prize money is typically contingent on due diligence, so teams should anticipate a one to two month period of further engagement with investors before funding is finalized. Most major competitions also issue a press release or public announcement naming the winning teams, so it’s crucial to have a plan in place to manage an increased interest in the company.

Final Thoughts

Business plan competitions offer an alternative option for raising capital and networking with investors. The challenge lies in making the company presentation stand out among several others on the same day. We are always open to advise companies during the capital raising process, so let us know how we can be helpful.

We also continue to engage with potential investors for our fund. If you are interested in joining us, please click here to fill out an initial form and we will reach out to set up a conversation.

Wishing everyone a great weekend,

-The Caymont Ventures Team.