MBA entrepreneurs pitch VCs in NY contest

Entrepreneurship is not dead. And don’t bother to tell aspiring dealmakers enrolled
in M.B.A. programs throughout the U.S. that this is not a good time to raise money
from venture capitalists.

by Katherine Goncharoff TheDeal.com

In fact, a few dozen of them gathered at MBA Jungle 2002 Business Plan
Challenge on April 26, a national business plan contest sponsored by New
York-based MBA Jungle magazine, were decidedly optimistic. That’s despite only
one school-backed startup receiving the $25,000 prize.

All may be considered winners, though, having received air fare, a stayover at New
York’s trendy Tribeca Grand Hotel and the opportunity to pitch their plan to a team
of professional venture capitalists and advisers, including Charles River Ventures,
Draper Fisher Jurvetson, Cardinal Partners and venture capital adviser Fenwick
& West llp.

Jon McBride, one of the founders of MBA Jungle magazine, said this year’s
contest, its second, resulted in 225 submissions versus 100 last year. "We are also
seeing an increase in the number of healthcare and life science-related business
plans this year, which reflects current funding trends," McBride said.

He also noted that Friday’s venture-seeking startups were in better shape than last
year. "We are seeing more companies with customers, the quality of the plans are
noticeably better and they just appear to be farther along with their business,"
McBride said.

Jungle requires that startups have at least one student among its founding
partners. Among the participants Friday was Adaptic Systems Inc., an imaging
and MEMs technology startup out of the Haas School of Business at the University
of California, Berkeley, that aims to sell its product to eye doctors.

Also pitching was Agamatrix, formed by Harvard Business School students, with a
patent-pending software to increase the effectiveness of bio-sensors. Cogelix, out
of the University of Washington Business School, pitched its technology for more
targeted high dose radiation treatment of cancer tumors.

Responding to the hopes of one student-entrepreneur, a venture capitalist noted
that they still have much to learn.

"Any student who thinks they are going to be able to get $120 million from a VC
and give up only 10% of their company is dreaming," said Santo Politi, a partner
with Charles River Ventures of Waltham, Mass.

No word yet on who won.

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