Vantage realizedfinal

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  • 1. Total Interviews: 88 Vantage Realized is building a wheelchair attachment that increases mobility and reduces joint damage for manual wheelchair users.
  • 2. JJ Tang ● Hustler ● Team Leader ● BS in Finance from ASU Gordon Freirich ● Product Designer ● BS Mechanical Engineering from ASU ● Automotive background Kirt Kirtland ● Awesome Mentor Kalan Kircher ● Hustler ● Program Manager at Abbott Hematology R&D ● BS Biomedical Engineering from Northwestern Vrunda Rathod ● Hustler ● MS in Biological Science Policy from Georgetown ● BS Biomedical Engineering from USC
  • 3. What we thought Active manual wheelchair users Insurance always pays for new wheelchair products Our primary customers are wheelchair users Manual Wheelchair users would pay for a nonelectric solution Only long-term users are interested in new products We could sell through all channels concurrently
  • 4. 4 week and 37 total interviews at pivot Experiments Industry (6) Doctors and Therapists (10) Wheelchair Users (21)
  • 5. What we learned: Limited/no customer desire: “Sounds like a great product, but it’s not for me” “It’s out of my price range” Market is difficult to penetrate and there is a lack of reimbursement: Past/present competitors are failing: Wijit Nu-drive Rio mobility pivot Magic wheels
  • 6. What we thought Active manual wheelchair users
  • 7. The Pivot: Wheelchair users concerned about bumps and cracks. Wheelchair Manufacturers Durable Medical Equipment Suppliers Online Retailers Many users cited this as their biggest challenge. People want to buy online or from a trusted store, not from a salesman.
  • 8. Vantage Realized has developed a caster wheel to improve safety and comfort for manual wheelchair users
  • 9. Caster Ecosystem Information Physical Goods Money $150 User Production Online Retailers User Support $75 Wheelchair Manufacturers Distribution $45 CM $6 Testing Labs $75 Vantage Realized PT’s & OT’s $150 DME Advocacy Groups
  • 10. Financial/Operations Timeline 2014 Q2 Q3 Networking/Sales Design Milestones Cash Reserve Q1 2015 Q4 Q1 Q2 Q3 Q4 Series A $1 MM Proof of concept Patents Filed Functional Prototype Manufacturing Prototype Reliability Testing Commercial Manufacturing New Product R&D & Exploring New Markets Sell Online Pitch OEM to manufacturers One OEM agreement Two OEM agreements
  • 11. Validation Interviews Lisa Stein, CEO of Spinlife • Multiple patents necessary • DME’s are consolidating “There is a lack of significantly over the next year innovation in the market • Partner with a large and I’m still selling manufacturer products from 20 years ago. This product will blow people away.” David Lippes, CEO of Ti-Lite • Manufacturers expect 40% margins • Retailers expect 50% margins “If you can build something • does deep people will thatNeed a that, product portfolio to buysustain the business it”
  • 12. Final Canvas End users don’t rely on magazines for new product information. The wheelchair manufacturers are the best way to sell through DME or online retailers. Strong emphasis on protective IP Manufacturing cost ~$6 Most likely asset sale vs. licensing
  • 13. Where We Are Now First product in a viable business We will be pursuing the product outside of class Next Steps: • • • Engage legal expert and file provisional patents This week we are meeting with Ti-Lite’s Outfront (a subsidiary building new wheelchair products) Continuing to build a product portfolio
  • 14. Investment Readiness Level
  • 15. Appendix
  • 16. Market - Casters Units Amount* Total Wheelchair market 3300000 $495,000,000 Manual Wheelchair users (TAM) 1,980,000 $297,000,000 SAM (Active manual wheelchair users) 1,188,000 $178,200,000 *Assumes 1 pair purchased every year at $150 Target Market Year 1 Year 2 Year 3 0.5% 1% 3% $891,000 $1,782,000 $8,910,000
  • 17. Partner Relationship Information Wheelchair Manufacturer Physical Goods Money Contract Manufacturers $50,000 samples, travel, lawyer (not to manufacturer) $10-15k tooling $6-10/pair Testing Labs DME Vantage Realized $50,000 samples, labor Advocacy Groups Online Marketplace
  • 18. Hypothesis We thought that... Corresponds to Canvas... Manual wheelchair users would jump at the chance to move more easily without electricity Value Proposition We could sell through all possible channels concurrently Channels We would cater exclusively to long-term users Customer Segments Our main customers were wheelchair users Customer Segments Insurance would cover products that provided benefit in all cases Not covered on canvas, reference in customer segments?
  • 19. Metrics that Matter • How many units do we sell: o o • o Cost o o o o • DME sales Web Manufacturer o Tooling Unit cost Burn rate/ G&A Customer Acquisition/Marketing Customer Lifetime Value Sales
  • 20. IP Plan ● Avoid automotive patents ● Aim for personal mobility-specific ● Include aesthetics as patent criteria ○ Current standard is focusing on geometric patterns best suited to buckling
  • 21. Next Steps: Upcoming Meetings • • • Marilyn Hamilton, Founder of Quickie Wheelchair Company Bob Hamilton, Wheelchair dealership owner Carl Mulberry, President of Columbus Medical Equipment
  • 22. Next Steps: Other Markets ● Strollers: 6.64 million units total ○ ○ ○ Total Market: $332.2 million a year Assuming $200 average cost of a stroller, 1.66 million strollers were sold Average of 4 wheels ● Hospital Beds: 6.92 million units total ○ ○ ○ $3b market a year Averaging cost of 10 hospital beds, average bed is $1735 Approximately 1.73 million beds sold last year, 4 wheels
  • 23. Resources Year 1 Physical Intellectual Financial Human Resources Contracted Year 2 Year 3 Office $25,000 Prototyping Lab $25,000 Testing Lab (cost under activities) Website $3000/year Patents $15,000 Trademark $300 Contract Manufacturer $10k + $6 * production qty Quality Contractor (cost under activities) Capital/Investors Equity Billing System $1,000 Advisors Equity Customer Service Rep $30,000 Sales Rep $125,000 Supply Chain Specialist $100,000 Marketing/ Brand Specialist $100,000
  • 24. Activities Year 1 Develop 3 new caster designs $30,000 Year 2 Year 3 Expand casters beyond wheelchair market - $30,000 Receive patent on 1 caster design- $10,000 Begin pitching to Manufacturers $50,000 Have 1 licensing agreement $50,000 Have 3 licensing agreements $50,000 Casters being sold in 10% of DME’s in California and Arizona $50,000 Casters being sold in 20% of DME’s in California and Arizona $50,000 Casters being sold in 30% of DME’s in California and Arizona $50,000 Selling casters on 3 medical equipment websites - $3,000 Selling casters on 10 medical equipment websites - $5,000 Selling casters on 25 medical equipment websites - $8,000 Supplier quality audits - $10,000 Supplier quality audits - $10,000 Sign agreement, build molds with one contract manufacturer $10,000 Test prototype samples for reliability and strength - $15,000
  • 25. Sales and Expenses Year 1 Unit s Dollars Year 2 Total Gross Sales Units Dollars $660,000 DME Sales Licensing Online Marketplace Expenses Year 3 Total Units Dollars $1,140,000 3000 $100 $300,000 7000 $100 0 $80,000 $0 1 $80,000 $80,000 3000 $120 $360,000 3000 $120 $360,000 Total $1,680,000 $700,000 10000 $100 $1,000,000 4 $80,000 $320,000 3000 $120 $360,000 $275,300 $764,000 $1,187,000 $4,000 $204,000 $454,000 $56,000 $200,000 $218,000 $155,000 $255,000 $410,000 Research/Protoyping $50,000 $75,000 $75,000 Intellectual Property $10,300 $30,000 $30,000 $384,700 $376,000 $493,000 G&A Materials and Manufacturing Marketing Net Revenue
  • 26. Initial Investment Needed Year 1 Year 2 Year 3 $4,000 $204,000 $454,000 $56,000 $200,000 $218,000 $155,000 $255,000 $410,000 Research/Prototyping $50,000 $75,000 $75,000 Intellectual Property $10,300 $30,000 $30,000 $275,300 $764,000 $1,187,000 G&A Materials and Manufacturing Marketing Expenses We need $1 million in startup investment