Cutbots - Presentation

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I'm looking for a cofounder for YCombinator Winter 2010. If you are interested email: yc.w10.founder@gmail.com or follow me on Twitter: @YCW10

There are over 1 million paper cutters on desks across America. Unfortunately, the software for these devices is uniformly terrible. This creates a tremendous opportunity for innovation.

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Cutbots - Presentation

  1. 1. I’m
thinking
of
applying
to
YCombinator
Winter
2010
and
need
a
cofounder.
 Interested?
Contact:

yc.w10.founder@gmail.com

  2. 2. Over
1
million
people
have
customiza?on
machines
that
can
cut
paper
and
are
capable
 of
producing
a
variety
of
amazing
products.
They
all
have
terrible
soIware.
 Typical
Uses
–
The
Martha
Stewart
Aesthe?c
 Poten?al
Uses
–
The
“Make:”
Aesthe?c

  3. 3. Problem
 Most
paper
cuEng
machines
are
Fed
to
expensive
physical
media.

 If
you
want
to
cut
out
a
new
font
or
clip
art
you
need
to
spend
$89.99
to
buy
 that
cartridge.
It
is
like
having
to
buy
an
album
even
if
you
just
want
a
song.
 No
one
should
have
to
pay
 $89.99
to
use

 Comic Sans 
$499.99
 $89.99
 Solu?on
 Create
an
iTunes
style
opFon
for
paper
cuEng
machines.
Turn
 expensive
cuEng
cartridges
into
digital
media
like
iTunes
did
for
 music.
Introduce
ala
carte
pricing,
beOer
hardware,
broader
 selecFon,
and
a
superior
user
interface.


  4. 4. Opportunity
 Cutbots
can
private
label
a
paper
cuKer
and
create
soIware
that
provides
 more
op?ons
for
less
cost
with
a
superior
user
interface.
 •  Create
soPware
to
drive
cuEng
machines
 •  Increase
choices
for
customers
 •  Provide
customizaFon
tools
 •  Introduce
pricing
flexibility
 Market
Opportunity
 • Hobby
market
=
$31B
market
(hOp://bit.ly/ZiMIg)

 
 • Scrapbooking
is
a
$2.5B
sub‐segment
(hOp://bit.ly/3umGnb)
 
 • Paper
cuOers
worth
~$500MM
 
 • Hundreds
of
millions
in
opportunity
in
adjacent
markets

 

  5. 5. Pent
Up
Demand
 4500+
visitors
have
come
to
my
 blog
looking
for
info
on
“hacking”
 the
CriCut,
based
on
2
blog
posts.
 “Hackers”
make
up
a
small
part
of
 the
Cricut
community
which
leads
 me
to
believe
even
more
people
 would
be
interested
in
lower
cost,
 less
restricFve
paper
cuEng.

 Factor
in
new
funcFonality
you
 could
enable
and
the
market
 opportunity
is
huge.

  6. 6. Challenge
 Convenience
is
Key
–
Customers
would
have
to
pay
$89.99
for
one
of
the
 sets
of
design
below.
Many
do
because
the
system
is
well
designed
and
easy
to
use.
 New
systems
would
have
to
be
as
simple

  7. 7. Product
Offering
 Hardware
 OEM
manufacturers
will
allow
us
to
brand
 a
paper
cuOer
with
the
“CutBots”
name.
 With
high
enough
volumes
you
could
also
 customize
the
hardware
funcFonality.

 Web
Service
 Provide
a
web
site
that
can
replace
paper
 cuOer
funcFonality
in
easy
to
use
format.

 Key
Features
 • Provide
catalog
of
1000’s
of
designs
 
 • Design
tools
to
modify
designs
 
 • Share
designs
with
friends
 
 Pricing
Approach
–
One
approach
to
pricing

 Fairly
simple
business
model.
Large,
established
customer
base
willing
to
pay
for
data.

 $89
 $25
 $1‐2
 500
Images
 100
Images
 1
Images
 Unlimited
Fonts
 Unlimited
Fonts
 Limited
Fonts
 The
price
of
1
exisFng
cartridge
which
 Typical
price
of
a
giP
card
 Reasonable
micro
transacFon
price
 holds
20‐40
images

  8. 8. How
it
Works:
Part
1
 Requires
No
Partnerships
 Website
 1.
Design
on
Website
 2.
Web
files
converted
 4.
Data
transmiOed
to
 to
cuOer
files
 cuOer
via
SD
 4a.
Data
transmiOed
 3.
Driver
prepares
for

 to
cuOer
via
computer

  9. 9. How
it
Works:
Part
2
 Requires
Hardware
Partnership
 Website
 1.
Design
on
Website
 2.
Web
files
converted
 4.
Data
transmiOed
to
 to
cuOer
files
 cuOer
via
iPhone
app
 5.
Data
transmiOed
to
 3.
Driver
prepares
for

 cuOer
via
computer

  10. 10. Revenue Potential
 Sell
a
customer
a
cuKer
for
$300
&
$89
“data
plan”:

 $59.8MM Net
$150/cuKer
+
$89/data
 250,000
 $23.9MM Customers
 1,00000
 $11.95M Customers
 50,000
 $2.39MM Customers
 10,000
 $239K Customers
 1,000
 Customers
 These
numbers
assume
we
are
able
to
capture
~25%
of
the
exis?ng
paper
cuKer
market.
Addi?onal
revenue
 could
be
gained
by
broadening
product
offerings,
increasing
“share
of
wallet”
with
exis?ng
customers,
etc.


  11. 11. Risks
 Opportuni?es
 Partnership
with
hardware
company
 Develop
plaeorm
for
other
devices
 User
experience
can
be
improved/revenue
 CNC
embroidering
machines,
lasers,
CNC
mills,
 generated
with
no
partnership.
 and
other
custom
manufacturing
devices
 Compe?ng
with
a
major
brand
 Appeal
to
wider
demographics
 Target
customers
aren’t
super
tech
savvy,
will
 Appeal
to
“make:rs”
and
“craP:ers”
with
 require
major
markeFng
efforts
 different
aestheFc
sensibiliFes
 Market
may
be
saturated
 Shrink
a
market
 ProvoCraP
has
been
expanding
poroolio.
We’ll
be
 Replacing
expensive
hardware
with
efficient
 locked
out
from
exisFng
plaoorm
unless
we
can
 soPware
 hack
or
partner
with
ProvoCraP.
 Expand
Selec?on
 May
be
too
complex
for
customers
 Can
easily
add
new
designs,
significantly
increase
 ExisFng
products
thrive
based
on
plug
and
play
 opFons
for
customers
 simplicity.
Computers/iPods
increase
flexibility
at
 Capture
Greater
Margins
 the
price
of
complexity
 No
manufacturing
cost,
no
split
with
retailers
 Create
new
product
categories
 Paper
craP
toys,
silkscreen
preparaFon,
etc.
 Build
Design
Tools
for
hobbyists
 Major
gaps
exist
between
pro
level
Adobe
 soPware
and
free
tools
like
SketchUp

  12. 12. Team
  Me
–
Co‐Founder
 • Product
Design
and
management
experience
in
consumer
technology
business.
 
 • Employee
#17
at
startup
 
 • Full
product
ownership
from
concepFon
to
markeFng
 
 • Author
of
popular
blog
on
mass
customizaFon
 
 ?
 You
–
Co‐Founder
 • Designed,
Engineered,
Shipped
Consumer
facing
soPware
(&
personal
projects)
 
 • Front
end
UI
development
experience
 
 • Interest
in
graphics
or
aestheFcs
 
 • Worked
in
a
startup
environment
 
 ?
 You
–
Co‐Founder
 
 • Designed,
Engineered,
Shipped
Consumer
facing
soPware
(&
personal
projects)
 • Experience
with
eCommerce
back
end
systems
 
 • Interest
in
business
 
 • Worked
in
a
startup
environment
 


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