Scott: our supports will be more expensive; we are competing with cheap natural materials which cost little, ours are high tech materials have add considerable value to gain market share. We don’t yet have economies of scale. So we have to compete on quality
Rxns that Pd/C can’t doRxns only purePdnanopart50 °C lower temp Simplify processesDisruptive technology
Varied depending which industry we were talking to.
Our Technol. adds the biggest value to large scale, flow through processesEstablished supplier with credibility
This would be for sales through Distributor to Organic Chemists: assume that 10000 people countrywide doing organic research, assume each uses about 5g Pd/C per year, gives 50 kg of Pd/C year, and that we can get 20% of the market that’s 10 kg/year: we can make this ourselves, but would need some one to bottle and packageSafer has to do with possibly being able to prevent material bursting in flames
Target batch scale processes: these include Pharma, Fragrances, Edible Oils and other small scale chemical production we don’t yet know about. Defining characteristic of this market is small to moderate scale, use batch processing methods. Since they use batch, flow characteristics are not an issue.The larger end of this market expects to get free samples for process development, since payoff comes from larger scale use.Lower Cost is an issue; but longer lifetime is a bigger factorNeeds to be robust under process conditions (stirring)Easier separation of catalyst after use means that the cost of reprocessing spent catalyst will be lower; would probably want a cut from the reprocessor.Safer has to do with possibly being able to make the material less likely to burst into flames
These are the big boys; have a dedicated plant that uses a lot of catalyst: supply of catalyst is critical, so end user will want license and until we have credibility in the market will want to manufacture themselves.
The TeamFranchessa Sayler – Entrepreneurial Lead• Chemistry Graduate Student (Ph.D. August 2012)• Developed technologyMartin Bakker – Principle Investigator• Associate Professor of Physical Chemistry• 30 years research experienceChristopher Melton – I-Corps Mentor• Chairman & CEO of The White Oak Group, Inc.• 30 years of business experience
Catalysts Increase production yield Decrease downtime For chemical companies Catalyst increase chemical process rates 90 % of all manufactured products $900 Billion Better Catalyst = $$$
The Opportunity Global Catalyst Market =Chemical $29.5 BCatalyst Hydrogen Pd/C • Emissions -ation CatalystMarket Catalyst = $1.1 B • Refinery= $7 B = $1.5 B • Chemical
The Competition ThruPore’s Pd/C RawMaterial Product Raw Material Product Problems: Solutions: • Clogging • 6x throughput • Severely reduced activity • Highly active Decreased production Increased production =-$ = + $$
Business Canvas Version 1.0 Key Value Customer CustomerKey Activities Proposition Relations SegmentsPartners • Synthesis and • Provide support & characterization of trouble-shooting to • Chemical catalysts. (test • 25-50 % customers to ensure manufacturers reaction) catalysts perform. • Getting cheaper • Fine chemicals• Template supplier(s). • Optimize and• Turn-key MVP/evaluation • superior upgrade catalysts to • Commodity chemicals manufacturer? samples in hands of performance provide on-going • Biofeed• Distributor? potential customers. • Optimization for • more efficient relationship • Petrofeed (catalysts are individual customer precious metal • Pharmaceuticals consumables not • Oil refining needs. usage capital items) • Emissions control • Quality control. • Validate • higher Channels • Mobile environmental throughput • Stationary Product info. Delivery: • Plastic production requirements • longer • sales calls • Edible oils • Validate IP working • conferences • Electrocatalysts Key lifetime (>1 yr • publications Resources • trade shows or 2x) Product Delivery: • Specialist expertise in • From company design, synthesis and warehouse characterization of Direct licensing catalyst • Space & equipmentCost RevenueStructure • Manufacturing plant. Inventory. Stream • Marketing, production and R&D • Sales direct to customers. • Cost of templates • Licensing and support fees. • Cost of precious metal • Will reprocessing be cost effective? • Legal • Licensing
Testing Our Value Propositions95 CUSTOMER CONTACTS Research Catalysts, Inc. Applied Ceramics, INC.
What We Learned about Our Value Propositions 25-50 % CheaperLess Precious Metal - Pharma Higher Throughput Working Lifetime Superior Performance! + Not Flammable
- Business Canvas Version 2.0 Key Value Customer CustomerKey Activities Proposition Relations SegmentsPartners • Synthesis and • Provide support & • Chemical characterization of 25-50 % trouble-shooting to catalysts. (test customers to ensure manufacturers reaction) cheaper catalysts perform. • Fine• Template • Getting • Optimize and chemicals supplier(s). MVP/evaluation superior upgrade catalysts to• Contract samples in hands of provide on-going • Commodity manufacturer? potential customers. performance relationship chemicals• Distributor? • Optimization for (catalysts are • Bio individual customer more efficient consumables not needs. capital items) • Petro • Quality control. precious metal • Pharmaceuticals Channels • Validate usage • Oil refining? environmental requirements Product info. Delivery: • Emissions higher • sales calls • Validate IP • conferences control throughput • publications • Mobile Key Resources • trade shows • Stationary • Specialist expertise in longer working Product Delivery: • From company • Plastic design, synthesis and lifetime (>1 yr characterization of warehouse production catalyst or 2x) Direct licensing • Edible oils • Space and equipment 5 • ElectrocatalystsCost • Manufacturing plant. Inventory. RevenueStructure • Marketing, production and R&D Stream • Sales direct to customers. • Cost of templates • Licensing and support fees. • Cost of precious metal • Legal • Will reprocessing be cost effective? • Licensing
Catalyst Distribution Food ChainCatalyst Catalyst Company Retailer Researcher Process Engineer
- Business Canvas Version 4.0 -> SPLIT Key Value Customer Customer Key Activities Proposition Relations Segments Partners • Synthesis and • Provide support• Template characterization of Our supported catalyst & trouble- Need Early catalysts (test will be: supplier(s) reaction) • 25-50 % cheaper shooting. Adopters! • Getting • Higher throughput • Upgrade catalysts • Chemical• Contract • Longer working MVP/evaluation to provide on- manufacturers manufacturer samples in hands of lifetime (>1 yr. or 2x) going relationship • Commodity• Distributor potential customers • Superior (catalysts are chemicals • Optimization for performance • Biofeed• Catalyst • Easier to work with consumables not individual customer • Petrofee company needs (pellets and not capital items) d • Quality control flammable) • Fine chemicals • Less precious metal Channels • Validate • Pharmaceuticals environmental usage (less metal in Product Info. • Refineries requirements product & fewer Delivery: • Crude oil • Validate IP synthesis steps) • sales calls • Biomass • Crush test • More efficient flow (less crushing) • conferences refining Key Resources Superior • publications • Emissions control • Specialist expertise in • trade shows • Mobile design, synthesis and Performance – Product Delivery: • Stationary More active and • Plastic production characterization of • company • Edible oils catalyst more selective • distributor 5 • Electrocatalysts • Space and equipmentCost RevenueStructure • Manufacturing plant. Inventory Stream • Sales directly to customers • Marketing, production and R&D • Legal • Licensing and technical support fees • Licensing • Reprocessing • Lab space (UA = $20/ft2/yr.) • Sales through distributor/catalog? • Contract manufacturing
- Business Canvas for the Research MarketKey Key Value Customer CustomerPartners Activities Proposition Relations SegmentsTemplate MVP/evaluation Superior Provide Researcherssupplier(s) samples in Performance technical hands of support Fine potential chemicalsContract customers Easy to Use researchmanufacturer Email new Pharma Address larger products research Safer markets Contract Key manufacturer Channels Resources research Product Space Delivery: Distributors Equipment Retailers 5Cost Revenue Sales throughStructure Production Stream distributor/retailer Licensing IP or buy templates Lab space (UA = $20/ft2/yr.) Establish own brand
Revenue Model Small Volume Medium Volume Large Volume Retailer Direct Licensing Sales Agreements and RoyaltiesCost to customer: $18/g Cost to customer: $10/g Cost to Customer: TBDOur revenue: 30-50% Our revenue: 70-80% Our revenue: $/license + royalties
Key Key Value Customer CustomerPartners Activities Proposition Relations Segments • Build Contract credibility Tech. Support manufacturer • Optimization Superior Fine Chemicals for individual Performance Catalyst Template customer Pharmaceuticals Upgrade supplier(s) • Quality Longer control Fragrances Lifetime • Crush test Channels • License IP Edible Oils Easier Product Delivery: Key Resources Separation Company Space Contract Equipment manufacturer 5Cost RevenueStructure Stream Sales directly to customers • Marketing and R&D staff • Legal • IP Licensing Reprocessing Fee • Lab space (UA = $20/ft2/yr.) • Contract manufacturing Leasing Agreement?
Key Key Value Customer CustomerPartners Activities Proposition Relations Segments • Build Contract Tech. Support credibility Superior Commodity manufacturer • Optimization Performance Catalyst chemicals for individual Catalyst Upgrade company customer • Quality More Active control Refineries • Crush test Higher Channels Throughput Product Delivery: Key Resources Company Space Contract Equipment manufacturer 5Cost RevenueStructure Stream • Marketing and R&D staff • Legal • Licensing and technical support fees • Licensing • Sales directly to customers • Lab space (UA = $20/ft2/yr.) • Reprocessing fees or leasing • Contract manufacturer agreement
ThruPore Partners:Technologies Hypothesis and Experiments Catalyst Companies Research Catalysts, Inc. Contract Manufacturers Distributors
ThruPore Partners:Technologies Results • Catalyst companies o Be careful! • Contract manufacturers o A lot of contacts with companies needing catalyst technology o Use catalyst for chemical production for their customers o Mutually beneficial • Distributors o Most “distributors” have their own catalyst product lines – be cautious
ThruPoreTechnologies What’s Next • Find more possible partners • Talk to more contract manufacturers • Prototype for VC’s • Establish catalytic properties • Continue to refine cost estimates • Pursue IP license T 3
ThruPore What is a Catalyst?Technologies … “a catalyst is a substance that changes the rate of a chemical reaction without itself appearing into the products.”
ThruPore How a Catalyst WorksTechnologies H2 O• Reactive H- H- Surface Area H O=O H O=O H- Very H Important• We have a Football Field in a Teaspoon Raw Product Material
ThruPore Competitive LandscapeTechnologies Catalyst Suppliers Sales Umicore $12.6 B Johnson Matthey $12.5 B BASF Catalysts $6.5 B W. R. Grace $1.9 B