1. Delivering research-grade movement analysis
to health professionals and their patients
Team:
Nick Jennings
Ayesha Mascarenhas
Mark Sena
Total # of Interviews: 101

2. The Team
Mark Sena Ayesha Nick Jennings
Mascarenhas
- - MBA, UC Berkeley - MBA, UC Berkeley
PhD, Bioengineering, - BS, Chemical
UC Berkeley/ - MS, Computer
Science Engineering
UCSF
- Product - Finance, marketing
- BS, Bioengineering and business
management and
- Deep knowledge of business development
knee biomechanics development experience
- Invented core experience
technology and
established proof of
concept

3. ?

4. Business model canvas 1 of 4 Legend: Clinical
Non-clinical
• Building the • Sales and post sales
• Research centers sales, support and support team
(UCSF / UC distribution channels For healthcare/fitness • Co-development Clinical Professionals
Berkeley) • Validation, managem professionals who need with professionals • Physical therapists
ent, and analysis of to monitor their • End user network • Orthopedists/Qualifie
• Depth camera application data patient’s/client’s • Patient-provider- d medical evaluators
vendors (e.g. • Tech R&D musculoskeletal payer health triangle
Microsoft, Primesen health/fitness, we offer a Fitness Professionals
se) computer application for • Fitness gyms
the Microsoft Kinect (and • Athletic trainers
• Wearables vendor similar devices) that… • Personal fitness
reliably assesses a trainers
• Hospitals and person’s joint function.
• IP • Sales team to identify
patient networks …Unlike visual or End users
• Biomech expertise and reach customers (2nd level target)
(e.g. Kaiser) manual assessment
• Software dev • All-in-one: • Patients
methods, our application
• Hardware PC/camera/software • Athletes
• Sports performance is
/fitness
/wearables
quantitative, objective, a • Downloadable: • Fitness clients
• Sales and Biz Dev Kinect web-store
organizations (e.g. nd accessible in a wide
• Secure data cloud • Microsoft: Xbox or
Nike) range of settings.
• Finance to fund Kinect-for-Windows
FDA approval
• Hardware and wearables • Sale/lease of software/computer package
• Software development • Usage fee per patient/client (with possible
• Software hosting/maintenance reimbursement from insurance)
• Sales and Support Consultants • For professionals, monthly subscription for product
• Validation and user testing (UCSF) and support
• Marketing • For end users, freemium subscription for data/user
• FDA approval, network

5. Business model canvas 1 of 4 Legend: Clinical
Non-clinical
• Building the • Sales and post sales
• Research centers sales, support and support team
(UCSF / UC distribution channels For healthcare/fitness • Co-development Clinical Professionals
Berkeley) • Validation, managem professionals who need with professionals • Physical therapists
ent, and analysis of to monitor their • End user network • Orthopedists/Qualifie
• Depth camera application data patient’s/client’s • Patient-provider- d medical evaluators
vendors (e.g. • Tech R&D musculoskeletal payer health triangle
Microsoft, Primesen health/fitness, we offer a Fitness Professionals
se) computer application for • Fitness gyms
the Microsoft Kinect (and • Athletic trainers
• Wearables vendor similar devices) that… • Personal fitness
reliably assesses a trainers
• Hospitals and person’s joint function.
• IP • Sales team to identify
patient networks …Unlike visual or End users
• Biomech expertise and reach customers (2nd level target)
(e.g. Kaiser) manual assessment
• Software dev • All-in-one: • Patients
methods, our application
• Hardware PC/camera/software • Athletes
• Sports performance is
/fitness
/wearables
quantitative, objective, a • Downloadable: • Fitness clients
• Sales and Biz Dev Kinect web-store
organizations (e.g. nd accessible in a wide
• Secure data cloud • Microsoft: Xbox or
Nike) range of settings.
• Finance to fund Kinect-for-Windows
FDA approval
• Hardware and wearables • Sale/lease of software/computer package
• Software development • Usage fee per patient/client (with possible
• Software hosting/maintenance reimbursement from insurance)
• Sales and Support Consultants • For professionals, monthly subscription for product
• Validation and user testing (UCSF) and support
• Marketing • For end users, freemium subscription for data/user
• FDA approval, network

6. Testing:
Product Market Fit

7. We talked to…
Fitness Professionals Clinical Professionals
Consumers (Athletes/ Patients)

8. We learnt…
• Mostly concerned with “big
Fitness picture” – weight loss, strength
training, endurance…

9. We learnt…
• Mostly concerned with “big
Fitness picture” – weight loss, strength
training, endurance…
• PTs do care about accuracy…but in
different ways…actually 2 segments
Clinical • Insurance-dependent PT clinics
• Self-pay PT clinics

10. Physical Therapy Clinic Profiles
Insurance-Dependent Clinics Self-Pay Clinics
Name
Size 12 Physical Therapists 6 Physical Therapists
Jobs • See patients at home or in-clinic • See patients at home or in-clinic
• Initial and follow-up evaluations • Initial and follow-up evaluations
• Spend 30 mins 1:1 w/ patient (aids) • Spend 1 hour session 1:1 w/ patient
Patient needs • Functional issue improvement • Functional issue improvement
• Sport improvement (e.g. Bike fit)
How do patients • Co-pay + Insurance reimbursement • Pay full cost upfront, and get
pay reimbursed later (out of network) OR
fully out of pocket
Session Price • Initial $150; Follow-up $75 • $165 for 1 hr session
Channels to • Conferences • Conferences
discover new • Journals • Journals
tools
• Continuing Medical Education • Direct Sales

11. Insurance-Dependent Clinic Workflow
Physical Therapy Initial evaluation
• Collect patient history
• Evaluate diagnosed issue
• Collect initial measurements (ROM, flexibility)
• Formulate treatment plan (goals, # of visits, duration)
• Submit Insurance billing information
• If Medicare, must satisfy new G-code requirements
Pain: Spending way too
much time filing/ re-filing
reports for reimbursement
Physical Therapy follow-up evaluation
• 1:1 exercise evaluation with patient
• Collect measurements
• SOAP note documentation
• Submit Insurance billing information

12. Self-Pay Clinic Workflow
Physical Therapy Initial evaluation
• Collect patient history
• Evaluate diagnosed issue
• Use Video Analysis Tool to collect measurements
• Apply markers
• Record motion (running, biking)
• Post process and analyze video
• Formulate treatment plan (goals, # of
visits, duration)
Pain: Spending too much
time doing post processing
of video analysis
Physical Therapy follow-up evaluatio
• 1:1 exercise time with patient
• Video Analysis measurement
• SOAP note documentation

13. We learnt…
• Mostly concerned with “big
Fitness picture” – weight loss, strength
training, endurance…
• PTs do care about accuracy…but in
different ways…actually 2 segments
Clinical • Insurance-dependent PT clinics
• Self-pay PT clinics
• Frequent visits are burdensome
Consumers
(Athletes/
• Often quit before full program is
completed
Patients)
• At home exercises often don’t get done

14. Regulatory & Insurance Related Findings
In Clinic Product: Existing CPT Codes:
97001 Physical Therapy Evaluation
No FDA Approval Needed 97002 Physical Therapy Re-Evaluation
Self-care/home management training (ie.
97535
ADL's, safety procedures, instructions)
97116 Gait training
Physical performance test or measurement
97750
(*not evaluation)
Consumer/ In Home Product:
Class Description
1 Low risk – simpler in design
 510k exempt
2 Moderate risk – typically non-invasive ~ 2 years to
 Subject to 510k submission, cleared by FDA FDA 510k
clearance
3 High risk – used to support life or prevent harmful
medical conditions
 Subject to full premarket approval by FDA

15. We learnt…
• Jobs: big picture – mostly
Fitness weight loss, strength
training, endurance
• Jobs: PTs do care about accuracy…but
in different ways…actually 2 segments
Clinical • Insurance-dependent PT clinics
• Self-pay PT clinics
Consumers • Frequent visits are burdensome
(Athletes/ • Often quit before full care complete
Patients) • At home exercises often don’t get done

16. validated Accuracy
motion
capture Z Z
system
Near Term – In Clinic
objective
Long Term – Home PT
Dartfish
PT Accessibility
evaluation
subjective
Reflexion
Health
Nike+Kinect
Training
Welfare
Denmark
fitness
motivating
assessment
Jintronix Lumoback
laboratory clinic / gym home-download mobile

17. Testing:
How to Get, Keep, Grow
Customers
Revenues and Costs

18. Business model canvas 2 of 4

19. Business model canvas 2 of 4

20. We talked to…
PT Conference Organizers PT Networks and Journals
Medical Sales Outsourcing Other Medical Software
Companies Companies

21. Direct Sales are crucial…but expensive
Direct Sales Distributor/Partner Kinect App Store
Details • Hire sales reps • Hire sales team • Clinics download app
• Reps visit clinics outsourcing firm from Kinect App Store
• Demo Product and • Pay them a % of
educate customers sales
• They build our
pipeline of leads and
also close some sales
Cost $100K+ per sales rep $100K Fixed retainer + TBD – Kinect for
+ travel costs margin (15%) Windows App store not
launched yet.
Why Direct Sales?
 It’s what our target segment is used to
 Other players are using it
 Build awareness and familiarity with the whole package

22. Low cost ‘Get’ activities across a tightly knit
community
Creative Partnerships
• EMRs • Co-sell into common customers
• Continuing Education • Free training in continuing ed spaces
PT Publication Ads
• PT IN Motion magazine • “Contact me” request
• PT Journal • Calls/E-mail requests for info
Major PT Conferences and Communities
• APTA Conference • Demos TechnicalSales Team
• California PTA • Webinars
• Follow-up visits/calls scheduled Follow-up with high potential leads
• Florida PTA
• Calls/ E-mail requests for info • In Clinic visit
• Presentation
Direct Sales Team • Proposal
• 1-week free trial
• Lease experienced reps • Identify and contact high quality leads
• Schedule web or on-site demos
Lead Generation Sales Close

23. Low monthly pricing gets us a foot in the door
Nike Video Value to
Fitness Analysis customer
$30 Tools $3000-
$2000 $7000
Software sale Monthly subscription
Price $2000 $100/mo
LTV $2000 $3336

24. Marketing and Sales are our highest cost
• Conference
• Software • Ads in mags
Development • Management • Direct/Outsourc • Customer LTV -
• Bio Mech R&D • Support ed sales team Cost
• Sales margin
Cost of Marketing
product Administration & Sales Profit
$400 $188 $1022 $1726
Price
$3336
Key Metrics:
Cost of Acquisition = $1022
Customer LTV = $3336

25. Testing:
Partnerships, Resources and Activities

26. Business model canvas 3 of 4

27. Business model canvas 3 of 4

28. We talked to…
Research Centers Electronic Medical Record
Companies
Key Opinion Leaders Camera Vendors
Dr. Paul Langer Rick Gawenda, PT

29. Partner Map
Depth
Research
camera
Centers
Thought / vendors Electronic
Opinion Medical
leaders Record
data ecosystem
Content/ differentiation
CME
opportunities
validation pre-releases
visibility
API integration
+ Key Activity:
Produce relevant
content/
CME courses

30. Business model canvas 4 of 4

31. What’s next…
 Focus on user interface –
develop beta version for clinics
 Get it out to early adopters
 Refresh, Launch, and…
…Keep Talking to Customers!

32. Appendix

33. Canvas Week by Week

34. Week 1 Legend: Clinical
Non-clinical
• Building the • Sales and post sales
• Research centers sales, support and support team
(UCSF / UC distribution channels For healthcare/fitness • Co-development Clinical Professionals
Berkeley) • Validation, managem professionals who need with professionals • Physical therapists
ent, and analysis of to monitor their • End user network • Orthopedists/Qualifie
• Depth camera application data patient’s/client’s • Patient-provider- d medical evaluators
vendors (e.g. • Tech R&D musculoskeletal payer health triangle
Microsoft, health/fitness, we offer a Fitness Professionals
Primesense) computer application for • Fitness gyms
the Microsoft Kinect (and • Athletic trainers
• Wearables vendor similar devices) that… • Personal fitness
reliably assesses a trainers
• Hospitals and person’s joint function.
• IP • Sales team to identify
patient networks …Unlike visual or End users
• Biomech expertise and reach customers (2nd level target)
(e.g. Kaiser) manual assessment
• Software dev • All-in-one: • Patients
methods, our application
• Hardware PC/camera/software • Athletes
• Sports performance is
/fitness
/wearables
quantitative, objective, a • Downloadable: • Fitness clients
• Sales and Biz Dev Kinect web-store
organizations (e.g. nd accessible in a wide
• Secure data cloud • Microsoft: Xbox or
Nike) range of settings.
• Finance to fund Kinect-for-Windows
FDA approval
• Hardware and wearables • Sale/lease of software/computer package
• Software development • Usage fee per patient/client (with possible
• Software hosting/maintenance reimbursement from insurance)
• Sales and Support Consultants • For professionals, monthly subscription for product
• Validation and user testing (UCSF) and support
• Marketing • For end users, freemium subscription for data/user
• FDA approval, network

35. Week 2

36. Week 3

37. Week 4

38. Week 5

39. Week 6

40. Week 7

41. Week 8

42. Week 9

43. Week 10

44. Week 11