April 27, 2001
Dot-com ideas lose popularity among would-be entrepreneurs
This year’s University of Washington Business Plan Competition, continuing through May 14, is no longer dominated by Internet company ideas as in years past.
Rather, students are hoping innovative ideas in biotechnology, retail and the service and software industries will launch successful entrepreneurial careers. Ideas entered thus far range from a colon cancer-fighting biotech company to a spa resort. Plans were submitted today to the annual UW Business School competition.
With $90,000 in prize money, the competition awards one of the largest amounts in seed funding of any such program in the country. This year’s first-place winners will receive $35,000 to start their own venture. In addition, three finalists will win $10,000 each. Other cash prizes will be awarded in financial sustainability as well as e-commerce, international, service and technology categories. Teams participating to date are from UW, UW Bothell, Seattle University and Seattle Pacific University. The event is produced by the UW Program in Entrepreneurship and Innovation (PEI).
Nearly half of the plans submitted by students last year were for dot-com companies. Organizers expect only about 20 percent to be entered this year.
“Our competition is a good indicator of what is occurring in the market,” said Connie Bourassa-Shaw, managing director of the entrepreneurship program. “We’re seeing plans that focus on business basics. These are solid plans for real businesses.”
Past competitors and winners include Wonderhorse, providers of real-time voice applications; Cyber Camps, college computer camps for kids; and Arts Patron, publishers of a Seattle arts magazine and an event Web site.
While there are fewer dot-com plans, student teams have entered Rotoradio.com, an Internet radio fantasy sports station and tembler.com, an online trading platform. Other business ideas entered are Smart Energies, a solar energy company; The Glass Foundry at Sand Point, a glass casting studio for artists; Therawraps, producers of an herbal and microwaveable heating pad; Web Your Head, Web site creation consultants; and Happy Peanuts, creators of a new and more comfortable gynecological exam table.
In its fourth year, the competition heats up tomorrow when applications are screened and narrowed down before the investment round is held from 2 to 5 p.m. Tuesday, May 8 in the Husky Union Building’s West Ballroom on the UW campus. Within a trade-show atmosphere, teams pitch their ideas to 90 judges made up of entrepreneurs, investors, lawyers and venture capitalists. Each judge is given $1,000 in PEI dollars to invest in the most viable companies.
“You really have to be passionate about your business,” said UW MBA student and co-chair Andrea Johnson. “The investment round brings out everyone’s creativity.”
Only four teams will make it to the competition’s final round held from 1 to 5 p.m., Monday, May 14 in the HUB Auditorium. Teams are judged on experience, market opportunity, team presentation and the potential for financial sustainability.
Winners use the money to start their own companies. But the money isn’t the only reason students want to win. “It’s the exposure,” said Bourassa-Shaw. “Winners meet and are pursued by venture capitalists and angel investors.”
Sponsors include Gray Cary, the Herbert Jones Foundation, Wells Fargo Bank and WRF Capital.
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For more information contact Bourassa-Shaw at (206) 685-9868 or cbshaw@u.washington.edu; Johnson at (206) 525-6190 or andreaj@u.washington.edu; or Michael Song, Program in Entrepreneurship and Innovation director, at (206) 543-4587 or song@u.washington.edu. Visit http://depts.washington.edu/uwpei/bplan.html.
