SlideShare a Scribd company logo
1 of 19
Download to read offline
EM Simulation software and
                     computing infrastructure is
FREeM   simulation
                     beyond the budget of most
                     engineers who need it. FREeM
                     changes the way design
                     automation works.

                     FREeM lets you…
                     GET AWAY FROM
                     THE SIMULATOR
                     AND BACK TO
                     DESIGNING...
FIRST
    An Introduction to FREeM and our Business Model

SECOND
    Residual Risk and its Reduction




                       FREeM : Affordable E.M.
                       Simulation Tool for Enterprise
Re-Cap of the Problem

     Explosive growth in the wireless device market (see report 1).

     Every device has an antenna – but antenna design is
     Expensive!

     A significant factor is the cost of design tools (see
     Report 1).

     Another aspect is the cost of infrastructure ownership and
     obselesence.

     To date there are several work arounds employed that are
     terribly inefficient, inaccurate and expensive (see OAP).
What is FREeM ?

    FREeM is a licence on the fly antenna simulator package


    FREeM runs all simulation on the cloud : no hardware expense


    FREeM simplifies the antenna design process


    FREeM can seemlessly talk to your other CAD packages


    FREeM is powerful, yet affordable: no punitive multi-core cost
How Does it Work ?
     Customer runs a client application that connects to a
     cloud based solver.
Partnerships ?


    Value Chain analysis
    revealed 2 potential types of
    channel partner which satisfy the
    criterion of mutually beneficial
    (revenue generating).

    Three of the first type to be used
    have been contacted and have
    shown interest...

    Also generate value for each other
    but only through FREeM!
Partnerships ?




     FREeM enables a
     technologically unique means
     of adding value for both
     channel type providers



     This technique is protectable IP.
     (hence no disclose here – sorry!)
Partnerships & Alliances

      What our channel partner brings to us?
             ● New customers

             ● Technical expertise

             ● Use of their Sales Channels




      What can we offer to a partner?
             ● Money (Commision)

             ● Better customer satifaction.

             ● Affiliate system.

             ● New customers (less so to begin with).

             ● Strong synergy.
Variable Costs

     Use of the cloud gives rise to a recurring
     overhead for each user depenedent
     upon computing resource.
                                             S to ra g e $ 1 5 .6 2 5                             D a t a T r a n s fe r $ 1 5
                    X fe r F e e s $ 0 . 6




                                                                        C o m p u te $ 1 1 5 .2
Fixed Costs

     We identified the price a typical user was willing to
     pay (during OAP surveys).

     We surveyed to find the typical use case
     (report 2 of OEP).

     We understand our recurring expenses support
     cost and cost of customer aquisition.

     We have estimated our fixed costs (office space,
     salaries, insurance etc)
The Tight Vertical

      Interviews with Channel Partners Suggest
      the following projected Y1 income:

      Estimated incomes for early adopters:
      - France: 50 customers
      - UK: 30 customers
      - US: 20 customers

      Total 100 customers


Restricting to Western Europe in Y1 Only
Break Even

                                                 ?



                                >120 Customers


                  80 Customers = Break Even


                  40 Customers, existing contacts etc


             Y1            Y2            Y3



Assume we meet half of projections...
FIRST
    An Introduction to FREeM and our Business Model

SECOND
        Residual Risk and its Reduction




                         FREeM : Affordable E.M.
                         Simulation Tool for Enterprise
Residual Risk
Funding & Market Risk

      - Proof of concept - own funds
      - Basic demo – own funds

      Investment needed to fund Y1
      - Early adopters, further code & product
            maintenance and customer support
            investments needed (e.g., grant
            support, Angel Investors).
Market Risk




                         Break Even




          Y1     Y2     Y3



Early Adopters will get us to break even
Residual Commercial Risk

     - Similar business model applied by
          competitors
     - Unique selling point of the product is
          copied/engineered around by
          competitors
     - Technical support do not meet
          requirement of customers
Technological Risk

    -   Algorithms failure (low risk for the first
            release of the product)
    -   Finite-difference time-domain FDTD
            method failure (high risk in the future
            product releases)
    -   Expert system for antenna design
    -   New GUI, that discourage users to learn it.
Team Risk

     Areas of expertise from team:
            ● Antenna design

            ● Software design

            ● High speed / low level computing

            ● RF Industry knowledge




     Areas lacking expertise from team:
             ●Sales and marketing

             ●International business acumen




   Channel partners will help reduce this !

More Related Content

Similar to Venture Lab FREeM: OEP Final Report - partnerships and risk

Venture Lab FREeM: Market Maturity and Customer Use Case
Venture Lab FREeM: Market Maturity and Customer Use CaseVenture Lab FREeM: Market Maturity and Customer Use Case
Venture Lab FREeM: Market Maturity and Customer Use Case
freemteam
 
Fr ee m1_06'12_public
Fr ee m1_06'12_publicFr ee m1_06'12_public
Fr ee m1_06'12_public
freemteam
 
Isv cloud business readiness assessment
Isv cloud business readiness assessmentIsv cloud business readiness assessment
Isv cloud business readiness assessment
MIS
 
Facility ab cacc15-homework_7.5
Facility ab cacc15-homework_7.5Facility ab cacc15-homework_7.5
Facility ab cacc15-homework_7.5
aljaz86
 

Similar to Venture Lab FREeM: OEP Final Report - partnerships and risk (20)

IBM Cost Optimization Seminar 4th November 2015
IBM Cost Optimization Seminar 4th November 2015IBM Cost Optimization Seminar 4th November 2015
IBM Cost Optimization Seminar 4th November 2015
 
What is different about the ibm mainframe
What is different about the ibm mainframeWhat is different about the ibm mainframe
What is different about the ibm mainframe
 
Venture Lab FREeM: Market Maturity and Customer Use Case
Venture Lab FREeM: Market Maturity and Customer Use CaseVenture Lab FREeM: Market Maturity and Customer Use Case
Venture Lab FREeM: Market Maturity and Customer Use Case
 
Citihub IDC Event 2009 Cloud Mark Ellis
Citihub IDC Event 2009 Cloud Mark EllisCitihub IDC Event 2009 Cloud Mark Ellis
Citihub IDC Event 2009 Cloud Mark Ellis
 
Fr ee m1_06'12_public
Fr ee m1_06'12_publicFr ee m1_06'12_public
Fr ee m1_06'12_public
 
2009 Marketing Machine Vision (Inbound and Content Marketing) for Unica Internal
2009 Marketing Machine Vision (Inbound and Content Marketing) for Unica Internal2009 Marketing Machine Vision (Inbound and Content Marketing) for Unica Internal
2009 Marketing Machine Vision (Inbound and Content Marketing) for Unica Internal
 
A unified model for custom software price determination in contracts robert...
A unified model for custom software price determination in contracts   robert...A unified model for custom software price determination in contracts   robert...
A unified model for custom software price determination in contracts robert...
 
Unit of Value: A Framework for Scaling
Unit of Value: A Framework for ScalingUnit of Value: A Framework for Scaling
Unit of Value: A Framework for Scaling
 
Isv cloud business readiness assessment
Isv cloud business readiness assessmentIsv cloud business readiness assessment
Isv cloud business readiness assessment
 
Dell Presentation
Dell PresentationDell Presentation
Dell Presentation
 
Go to Market Assessment Services
Go to Market Assessment ServicesGo to Market Assessment Services
Go to Market Assessment Services
 
Cloud Solutions - what do we mean by Solution in the Cloud Era?
Cloud Solutions - what do we mean by Solution in the Cloud Era?Cloud Solutions - what do we mean by Solution in the Cloud Era?
Cloud Solutions - what do we mean by Solution in the Cloud Era?
 
IBM z/OS V2R2 Performance and Availability Topics
IBM z/OS V2R2 Performance and Availability TopicsIBM z/OS V2R2 Performance and Availability Topics
IBM z/OS V2R2 Performance and Availability Topics
 
Hardware and Software for AI 2018 – Consumer focus
Hardware and Software for AI 2018 – Consumer focusHardware and Software for AI 2018 – Consumer focus
Hardware and Software for AI 2018 – Consumer focus
 
Why all software teams move towards zero innovation speed - And what to do ab...
Why all software teams move towards zero innovation speed - And what to do ab...Why all software teams move towards zero innovation speed - And what to do ab...
Why all software teams move towards zero innovation speed - And what to do ab...
 
Facility ab cacc15-homework_7.5
Facility ab cacc15-homework_7.5Facility ab cacc15-homework_7.5
Facility ab cacc15-homework_7.5
 
Price to Win: No longer a Black Art
Price to Win: No longer a Black ArtPrice to Win: No longer a Black Art
Price to Win: No longer a Black Art
 
Manufacturing Saas
Manufacturing SaasManufacturing Saas
Manufacturing Saas
 
Understanding the TCO and ROI of Apache Kafka & Confluent
Understanding the TCO and ROI of Apache Kafka & ConfluentUnderstanding the TCO and ROI of Apache Kafka & Confluent
Understanding the TCO and ROI of Apache Kafka & Confluent
 
How to compete with Banks in 32 countries
How to compete with Banks in 32 countriesHow to compete with Banks in 32 countries
How to compete with Banks in 32 countries
 

Recently uploaded

Why Teams call analytics are critical to your entire business
Why Teams call analytics are critical to your entire businessWhy Teams call analytics are critical to your entire business
Why Teams call analytics are critical to your entire business
panagenda
 
Architecting Cloud Native Applications
Architecting Cloud Native ApplicationsArchitecting Cloud Native Applications
Architecting Cloud Native Applications
WSO2
 

Recently uploaded (20)

Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...
Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...
Web Form Automation for Bonterra Impact Management (fka Social Solutions Apri...
 
CNIC Information System with Pakdata Cf In Pakistan
CNIC Information System with Pakdata Cf In PakistanCNIC Information System with Pakdata Cf In Pakistan
CNIC Information System with Pakdata Cf In Pakistan
 
AXA XL - Insurer Innovation Award Americas 2024
AXA XL - Insurer Innovation Award Americas 2024AXA XL - Insurer Innovation Award Americas 2024
AXA XL - Insurer Innovation Award Americas 2024
 
Polkadot JAM Slides - Token2049 - By Dr. Gavin Wood
Polkadot JAM Slides - Token2049 - By Dr. Gavin WoodPolkadot JAM Slides - Token2049 - By Dr. Gavin Wood
Polkadot JAM Slides - Token2049 - By Dr. Gavin Wood
 
Manulife - Insurer Transformation Award 2024
Manulife - Insurer Transformation Award 2024Manulife - Insurer Transformation Award 2024
Manulife - Insurer Transformation Award 2024
 
Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving
Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost SavingRepurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving
Repurposing LNG terminals for Hydrogen Ammonia: Feasibility and Cost Saving
 
Apidays New York 2024 - The Good, the Bad and the Governed by David O'Neill, ...
Apidays New York 2024 - The Good, the Bad and the Governed by David O'Neill, ...Apidays New York 2024 - The Good, the Bad and the Governed by David O'Neill, ...
Apidays New York 2024 - The Good, the Bad and the Governed by David O'Neill, ...
 
Boost Fertility New Invention Ups Success Rates.pdf
Boost Fertility New Invention Ups Success Rates.pdfBoost Fertility New Invention Ups Success Rates.pdf
Boost Fertility New Invention Ups Success Rates.pdf
 
DBX First Quarter 2024 Investor Presentation
DBX First Quarter 2024 Investor PresentationDBX First Quarter 2024 Investor Presentation
DBX First Quarter 2024 Investor Presentation
 
Apidays New York 2024 - Scaling API-first by Ian Reasor and Radu Cotescu, Adobe
Apidays New York 2024 - Scaling API-first by Ian Reasor and Radu Cotescu, AdobeApidays New York 2024 - Scaling API-first by Ian Reasor and Radu Cotescu, Adobe
Apidays New York 2024 - Scaling API-first by Ian Reasor and Radu Cotescu, Adobe
 
Why Teams call analytics are critical to your entire business
Why Teams call analytics are critical to your entire businessWhy Teams call analytics are critical to your entire business
Why Teams call analytics are critical to your entire business
 
Apidays New York 2024 - Passkeys: Developing APIs to enable passwordless auth...
Apidays New York 2024 - Passkeys: Developing APIs to enable passwordless auth...Apidays New York 2024 - Passkeys: Developing APIs to enable passwordless auth...
Apidays New York 2024 - Passkeys: Developing APIs to enable passwordless auth...
 
Architecting Cloud Native Applications
Architecting Cloud Native ApplicationsArchitecting Cloud Native Applications
Architecting Cloud Native Applications
 
Artificial Intelligence Chap.5 : Uncertainty
Artificial Intelligence Chap.5 : UncertaintyArtificial Intelligence Chap.5 : Uncertainty
Artificial Intelligence Chap.5 : Uncertainty
 
Rising Above_ Dubai Floods and the Fortitude of Dubai International Airport.pdf
Rising Above_ Dubai Floods and the Fortitude of Dubai International Airport.pdfRising Above_ Dubai Floods and the Fortitude of Dubai International Airport.pdf
Rising Above_ Dubai Floods and the Fortitude of Dubai International Airport.pdf
 
Connector Corner: Accelerate revenue generation using UiPath API-centric busi...
Connector Corner: Accelerate revenue generation using UiPath API-centric busi...Connector Corner: Accelerate revenue generation using UiPath API-centric busi...
Connector Corner: Accelerate revenue generation using UiPath API-centric busi...
 
Spring Boot vs Quarkus the ultimate battle - DevoxxUK
Spring Boot vs Quarkus the ultimate battle - DevoxxUKSpring Boot vs Quarkus the ultimate battle - DevoxxUK
Spring Boot vs Quarkus the ultimate battle - DevoxxUK
 
Corporate and higher education May webinar.pptx
Corporate and higher education May webinar.pptxCorporate and higher education May webinar.pptx
Corporate and higher education May webinar.pptx
 
"I see eyes in my soup": How Delivery Hero implemented the safety system for ...
"I see eyes in my soup": How Delivery Hero implemented the safety system for ..."I see eyes in my soup": How Delivery Hero implemented the safety system for ...
"I see eyes in my soup": How Delivery Hero implemented the safety system for ...
 
[BuildWithAI] Introduction to Gemini.pdf
[BuildWithAI] Introduction to Gemini.pdf[BuildWithAI] Introduction to Gemini.pdf
[BuildWithAI] Introduction to Gemini.pdf
 

Venture Lab FREeM: OEP Final Report - partnerships and risk

  • 1. EM Simulation software and computing infrastructure is FREeM simulation beyond the budget of most engineers who need it. FREeM changes the way design automation works. FREeM lets you… GET AWAY FROM THE SIMULATOR AND BACK TO DESIGNING...
  • 2. FIRST An Introduction to FREeM and our Business Model SECOND Residual Risk and its Reduction FREeM : Affordable E.M. Simulation Tool for Enterprise
  • 3. Re-Cap of the Problem Explosive growth in the wireless device market (see report 1). Every device has an antenna – but antenna design is Expensive! A significant factor is the cost of design tools (see Report 1). Another aspect is the cost of infrastructure ownership and obselesence. To date there are several work arounds employed that are terribly inefficient, inaccurate and expensive (see OAP).
  • 4. What is FREeM ? FREeM is a licence on the fly antenna simulator package FREeM runs all simulation on the cloud : no hardware expense FREeM simplifies the antenna design process FREeM can seemlessly talk to your other CAD packages FREeM is powerful, yet affordable: no punitive multi-core cost
  • 5. How Does it Work ? Customer runs a client application that connects to a cloud based solver.
  • 6. Partnerships ? Value Chain analysis revealed 2 potential types of channel partner which satisfy the criterion of mutually beneficial (revenue generating). Three of the first type to be used have been contacted and have shown interest... Also generate value for each other but only through FREeM!
  • 7. Partnerships ? FREeM enables a technologically unique means of adding value for both channel type providers This technique is protectable IP. (hence no disclose here – sorry!)
  • 8. Partnerships & Alliances What our channel partner brings to us? ● New customers ● Technical expertise ● Use of their Sales Channels What can we offer to a partner? ● Money (Commision) ● Better customer satifaction. ● Affiliate system. ● New customers (less so to begin with). ● Strong synergy.
  • 9. Variable Costs Use of the cloud gives rise to a recurring overhead for each user depenedent upon computing resource. S to ra g e $ 1 5 .6 2 5 D a t a T r a n s fe r $ 1 5 X fe r F e e s $ 0 . 6 C o m p u te $ 1 1 5 .2
  • 10. Fixed Costs We identified the price a typical user was willing to pay (during OAP surveys). We surveyed to find the typical use case (report 2 of OEP). We understand our recurring expenses support cost and cost of customer aquisition. We have estimated our fixed costs (office space, salaries, insurance etc)
  • 11. The Tight Vertical Interviews with Channel Partners Suggest the following projected Y1 income: Estimated incomes for early adopters: - France: 50 customers - UK: 30 customers - US: 20 customers Total 100 customers Restricting to Western Europe in Y1 Only
  • 12. Break Even ? >120 Customers 80 Customers = Break Even 40 Customers, existing contacts etc Y1 Y2 Y3 Assume we meet half of projections...
  • 13. FIRST An Introduction to FREeM and our Business Model SECOND Residual Risk and its Reduction FREeM : Affordable E.M. Simulation Tool for Enterprise
  • 15. Funding & Market Risk - Proof of concept - own funds - Basic demo – own funds Investment needed to fund Y1 - Early adopters, further code & product maintenance and customer support investments needed (e.g., grant support, Angel Investors).
  • 16. Market Risk Break Even Y1 Y2 Y3 Early Adopters will get us to break even
  • 17. Residual Commercial Risk - Similar business model applied by competitors - Unique selling point of the product is copied/engineered around by competitors - Technical support do not meet requirement of customers
  • 18. Technological Risk - Algorithms failure (low risk for the first release of the product) - Finite-difference time-domain FDTD method failure (high risk in the future product releases) - Expert system for antenna design - New GUI, that discourage users to learn it.
  • 19. Team Risk Areas of expertise from team: ● Antenna design ● Software design ● High speed / low level computing ● RF Industry knowledge Areas lacking expertise from team: ●Sales and marketing ●International business acumen Channel partners will help reduce this !