Key Terms
Drafting process
1. State how your organization would function in a dream scenario 2.
Value proposition
Summary of what an organization does that people will pay for.
Pitch
Formal presentation in which you ask for something; usually delivered to potential investors.
Individual investors
Want to know about team, product, value proposition, and return on investment.
Angel investors
Individuals who invest their own money in companies they're interested in.
Venture capitalists
Investors who pool money from others to invest in companies.
Friends and family
50-70% of US startups self-fund through savings, credit cards, or friends and family. Pitch less formally; emphasize tan
Elevator pitch
Abbreviated memorized pitch designed to open the door to a full presentation.
Must cover
Problem-solution, value proposition, product-market fit, and team. Nothing else.
Six elements of an effective elevator pitch
1. Targeted — sounds like you want this specific opportunity, not any opportunity 2.
Patent
A license granting exclusive rights to manufacture and sell a specific product. Patents encourage entrepreneurship by gi
When to file
For manufactured goods, when the product is finalized. For intellectual property and software, build first and seek pate
Nondisclosure agreement (NDA)
A contract that carries financial penalties if a party discloses proprietary information. Can be time- limited or open-e
Noncompete agreement
Prevents an employee from working for a competitor for a specified period after employment ends.
Work-for-hire agreement
Contract assigning ownership of innovations to the company, not the individual contributor.