Judging Criteria

1. Innovation & Value Proposition

Innovation can be in technology, in how a technology is applied, in how a product/service is marketed, in how revenue will be generated, etc.

• Has the team demonstrated innovation in their product/service idea, business model, etc.?

• If so, what problem are they solving for the customer?

• Is their product a must-have or a nice-to-have?

2. Market Potential & Marketing Strategy

Market potential refers to the revenue potential of the business if the company is successful in executing its plan. This is dependent on the size of the market that the company plays in. However, this criterion should be assessed from the ability of the company to capture market share and thus generate profit from that market. For example, even though the PC microprocessor market is huge, a start-up with limited resources and talent is unlikely to grab any market share. Also, gaining market share without making money is useless.
Do they have a well-thought-out marketing executive plan? What are their positioning and differentiation strategies?

• Marketing strategy is how the company plans to address their target market.

• Differentiation refers to the company’s ability to offer something unique that is valuable to the customers. It couldbe product technology/features, delivery system, marketing approach, etc.

• Positioning refers to market selection plus differentiation.

3. Competitive Advantage & Intellectual Property Strategy

Competitive advantage is what allows the company to compete successfully in the market place. It can be cost (not price) or differentiation; and the sources of competitive advantage can be management, technology, sales & marketing, manufacturing, value chain, innovation, use of technology, process or intellectual assets etc. The identification of the company’s IP assets and protecting them can be crucial to the success and sustainability of the business. Therefore, it is important to safeguard any innovation, knowledge, processes or creative expressions that the business may have from inadvertent disclosure or unauthorized use by competitors in order to retain that competitive advantage. IP protection could include any one or more of the following; patents, trademarks, registered designs, copyright, or trade secrets. What is the team’s IP strategy? Have they checked that their product/ design is novel vis- à-vis their competitors by conducting a prior art search? By searching patent, trade mark or registered design databases, the team will be able to assess how they can leverage on their own IP to stand out from the competition or leverage on other people’s IP through partnerships. IP strategy should make use of all relevant IP protection methods, including patents, trademarks, copyrights and trade secrets.

4. Team Make-Up & Strength

Does the team consist of people who will be able to execute the business plan at least for the first 1 year of the business? (Assumption is that they will be able to hire the right peopleto carry the business beyond that.) For example:

• If the business calls for heavy technology development in the beginning, a group of talented engineers may be the right team.

• If the business involves substantial marketing and sales effort right from the start, are the people able to come up with marketing and sales forecast plans?

• If the team has a gap in terms of talent and experience, have they recognized that and do they have a plan to recruit suitable candidates to join them?

5. Business Model

Business model refers to the ways that the business will generate revenue and profit. It includes:

• Revenue model – pricing plans and strategies ; for example: a one-time licensing fee versus subscription fee, providing free services while generating revenue through advertisement, discounts and instalment plans available, etc.

• Sources of revenue – the business model should identify their potential customers such as the local mass market, international market, niche target market etc.

• Channel strategy – direct sales, channel partnership, ODM/OEM model, etc.

• Growth strategy – the company’s plan and strategy to grow from 0 to $1 million, $10 million in sales using capital investment, equity-debt financing, profit margin forecast etc.

6. Financial Soundness

Financial soundness refers to the ability of the team to understand the financial nature of the business and to manage its financials in an appropriate way. Is the financial projection realistic?

• Possible heavy capital investment at the beginning

• How much revenue needs to be generated in order to sustain the operations of
the company?

7. Investability

This requires the judges to consider the likelihood of the business attracting investors. The judges will have their own criteria regarding whether they will invest their own money (or their fund’s money) in the business. Many investors recognize the value of IP as a business asset that can greatly contribute to the success of the company.

8. Quality of Writing & Presentation

This requires the judges to access the business plan based on its presentation and whether it conveys the business proposition accurately and succinctly.