Explosives Detection Final NSF I-Corps Presentation
 

Explosives Detection Final NSF I-Corps Presentation

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  • (Total Area km2 X $ / km2)
  • The worldwide landmine problem is one of astounding proportions. While it is difficult to determine the exact number of mines deployed worldwide, it is estimated that 60 to 70 million mines are deployed in approximately 70 countries. It has been estimated by the International Committee of the Red Cross that 26 000 people are involved in landmine incidents each year. Of this number, approximately 40% are children. Based on these statistics, a person is maimed or killed by a mine every 20 min [1]. In addition to the physical and mental trauma inflicted by landmines, the effect on the economy of mined areas is devastating.

Explosives Detection Final NSF I-Corps Presentation Explosives Detection Final NSF I-Corps Presentation Presentation Transcript

  • Explosive Detection NSF / I-Corps Program
    • Technology:
      • Identifies buried explosives
    • For:
      • Landmine mapping
    • Realistic Market Size:
      • $500M
    • Customers:
    • Over 40
    $500M $18B $9B
  • Team Members
    • Yu Lei (PI)
    Mike Wisniewski (Mentor) Associate Professor at UConn BS Chem. Eng., Sichuan U, China MS Chem. Eng., Sichuan U., China PhD Chem. & Env. Eng., UCRS Research concentrates on the development of novel, simple, and universal sensors for real application Manager, Springboard Program, UConn Bachelor, Law and Society, UConn MBA, Venture Consulting, UConn Business consultant assisting in commercializing innovations across campus, and helping faculty start their own businesses Ying Wang (Lead) BS Chem. Eng., Xiamen U., China MS Biochem. Eng., Xiamen U., China PhD Chem. Eng., UConn (Candidate) PhD research in developing sensory materials for toxic gases and explosive vapors
  • NSF / I-Corps Video
  • Considering Proposing: Landmine mapping Demo for Buried Explosives Sensing Films
    • 60 ~ 70 million landmines ~ 70 countries
    • 26 000 incidents / year, ~ 40% are children
    $500M $18B $9B
  • Cheap Demo IP Manufacture of machine Production Sensing materials Direct sales Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Business Canvas #1
  • What We Did (Met With/Talked To)
    • United Nations
      • Mr. Justin Brady (Acting Director) United Nations Mine Action Service (UNMAS)
      • All budget have been gone through mine action program
    • Major organizations who may use our tech
      • Flir (Fido): Mr. Mark Fisher (Senior Research Scientist)
      • CEIA (a metal detector company in Italy)
      • UXB International, Inc.: Mr. Karin Clark (Director) Marketing & PR
      • The Development Initiative Ltd: Mr. Steve Saffin (Operations Manager) in Sudan and Zimbabwe
  • What We Found
    • Through primary research:
    • As a result, we:
    • Government entities have a long cycle time
    • Included too many variables (environmental, deployment)
    • Pivoted : Explosive detection for transportation hubs
    • Be fast, agile, and opportunistic: we formulated a new model
    Customer Discovery Customer Validation Pivot
  • Airports Cheap Demo Partner’s distribution channels IP Manufacture of machine Production Sensing materials Wider spectrum Direct sales Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Existing companies: Smiths Detection 12/14/11 Business Canvas #2
  • What We Did (Met With/Talked To)
    • Security in train stations and bus terminals :
    • A DHS officer in CT: Douglas J. Pesce
    • (Protective Security Advisor of the New Haven District)
    • Surveyed over 13 high profiled officers
    • (TSA, US custom, Homeland Security…)
    • They do not have such need
    • Only airports may have interest for explosive detection, however:
    • Solid range of explosives detected
    • Real time detection (immediate results)
    • Zero false alarm
  • What We Found
    • Not practical for application in airports:
    • Landmine mapping is still a better idea:
    • TSA approval is necessary
    • Explosive detection in airport already has too many techniques (this market is very competitive / flooded)
    • Zero-tolerance for missing the target
    • Profit demining companies showed high interests in our tech
    • The decision cycles of non-profit demining companies may be as quick as profit companies
  • Airports Cheap Demo Partner’s distribution channels IP Manufacture of machine Production Sensing materials Wider spectrum Direct sales Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Existing companies: Smiths Detection Field Test Profit explosives detection/cleanup organizations Non-profit organizations Flir Development Initiative Limited 12/14/11 Business Canvas #3
  • Profit explosives detection/cleanup organizations Non-profit organizations
    • Hugh Morris , Operations Director of “The Development Initiative Limited ( TDI )”
    • The HALO Trust:
    Business Canvas #3 Airports UN Other Gov. US Army
  • 12/14/11 Cheap Demo Partner’s distribution channels Wider spectrum Direct sales Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Field Test
    • Metal detector: Price ~ $3,000 /unit; speed 30 m2/worker/day
    • Trained dogs: Price ~$12,000 / 6 yrs  (feeding cost not included); speed 1000 m2/dog/day
    • MEDDS: Price ~$200/km road; speed 14 km/team/day
    • Value Proposition:
    • Potential customers show high interests in our value proposition
    • Substitutes:
    • Necessary
    • Dale Spencer, Manager, New Business Tech. Kaman Precision Products
    Business Canvas #3
  • 12/14/11 Manufacture of machine Existing companies: Smiths Detection Flir Development Initiative Limited
    • Electrosprayer companies ( Graco , Wagner )
    • Suppliers of raw materials ( Fishersci )
    • Explosive detector manufactures
    • ( Flir Systems , Smiths Detection )
    • Quality raw chemicals
    • Bulk rate
    • Reputation
    • Existing customers
    • Mature field experience
    • Mass-production line
    • Custom-made for field application
    • Take the responsibility for machine maintenance and repairing
    Business Canvas #3
  • Here’s Where We Ended Up 1 Primary Research Techniques Technology Landscape Agency Cycle Times Funding/Budget Sources Business Model Awareness Competitive Edge 2 3 4 5 6 SCENE We think this is a viable business and want to continue to pursue it What We Are Doing Next
    • Follow up with customers & partners
    • Field test in Sudan, Africa
    • Work on NDAs
    • Foresight: 3rd party tech eval. underway
    • Start the company & looking for additional support like SBIR
  • Business Canvas #1 Cheap Demo IP Manufacture of machine Production Sensing materials Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals
  • Airports Cheap Demo Partner’s distribution channels IP Manufacture of machine Production Sensing materials Wider spectrum Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Existing companies: Smiths Detection Business Canvas #2
  • Airports Cheap Demo Partner’s distribution channels IP Manufacture of machine Production Sensing materials Wider spectrum Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Existing companies: Smiths Detection Field Test Profit explosives detection/cleanup organizations Non-profit organizations Flir Development Initiative Limited Business Canvas #3
  • Airports Cheap Demo Partner’s distribution channels IP Production Sensing materials Wider spectrum Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Existing companies: Smiths Detection Field Test Profit explosives detection/cleanup organizations Non-profit organizations Flir Development Initiative Limited HALO Smith Detection Business Canvas #4 Manufacture of machine
  • Airports Cheap Demo Partner’s distribution channels IP Production Sensing materials Wider spectrum Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Field Test Profit explosives detection/cleanup organizations Non-profit organizations Flir Smith Detection Business Canvas #5 Manufacture of machine
  • Airports Cheap Demo Partner’s distribution channels IP Production Sensing materials Wider spectrum Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Field Test Profit explosives detection/cleanup organizations Non-profit organizations Flir Smith Detection Business Canvas #6 Manufacture of machine
  • Airports Cheap Demo Partner’s distribution channels IP Manufacture of machine Production Sensing materials Wider spectrum Direct sales. Distribution 1  Machine sales Production UN Other Gov. US Army Training Dedicated personal assistance Large scale Reliable Easy to use Rapid Distribution Facilities Chemicals Field Test Profit explosives detection/cleanup organizations Non-profit organizations Flir Smith Detection Business Canvas #7 Key suppliers: chemicals
  • Thank You!
  •  
  • Customer Lifetime Value (LTV) with High Efficiency http://www.dbmarketing.com/articles/Art251a.htm Acquisition Year Second Year Third Year Customers 6 4 3 Retention Rate 65% 75% 80% Orders / Year 1 2 2 Avg Order Size 1 sq km2 5 sq km2 10 sq km2 Total Revenue $ 24 M $ 160 M $ 240 M Costs 70% 65% 65% Cost of Sales $ 16.8 M $ 104 M $ 156 M Acquisition / Person $ 5,000 $ 2,000 $ 2,000 Marketing Costs $ 30,000 $ 8,000 $ 8,000 Total Costs $ 16,830,000 $ 104,008,000 $ 156,008,000 Gross Profit $ 7,170,000 $ 55,992,000 $ 83,992,000 Cumulative Profit $ 7,170,000 $ 63,162,000 $ 147,154,000 Customer LTV $ 1.12 M $ 10 M $ 24 M
  • Payment Flow Construction Companies Mine Sniffer Oil/gas Companies Field Test Based Proposal Demand Creation CUSTOMER Successful field test More reliable Attract customers United Nations Commercial Landmine Clearance Companies (NGOs) Charitable Trust/ Foundations New claims More reliable New costs Lower price New costs
  • Key Assumptions
    • Target market
      • Commercial ~ 20 companies
      • NGOs ~ 30 organizations
    • Package
      • Reusable wrist watch
      • Disposable sensors
      • Access to patients data
    • Product development
      • 4 people in the beginning
      • $0.5 million
      • 1 year to develop
    • Sales
      • Start with commercial landmine companies end of year 1
      • Start with NGOs end of year 2
    • Personnel
      • Average salary $80,000
      • Headcount from 4 to 50 in year 3
    • Financing
      • UConn R&D: $50,000
      • Small Business Innovation Research (SBIR)$70,000
      • Looking for others
    Price per unit: $ 4 /m 2 Raw material Profit Fabrication and shipping $ 0.7/m 2 $3.3 /m 2
  • Income Statement Total Revenues 24,000,000 Expenses   1 Advertising 30,000 2 Cost of goods sold 16,800 3 Furniture and equipment 5,000  4 Insurance 20,000 5 Salaries and wages 320,000 6 Other 10,000 Total Expenses 401,800 Net Income Before Taxes 23,598,200 Income tax expense 9,439,280 Income from Continuing Operations 14,158,920