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 !