I'm looking for a cofounder for YCombinator Winter 2010. If you are interested email: yc.w10.founder@gmail.com or follow me on Twitter: @YCW10 There are over 1 million paper cutters on desks across America. Unfortunately, the software for these devices is uniformly terrible. This creates a tremendous opportunity for innovation.

1. I’m thinking of applying to YCombinator Winter 2010 and need a cofounder.
Interested? Contact: yc.w10.founder@gmail.com

2. Over 1 million people have customiza?on machines that can cut paper and are capable
of producing a variety of amazing products. They all have terrible soIware.
Typical Uses – The Martha Stewart Aesthe?c
Poten?al Uses – The “Make:” Aesthe?c

3. Problem
Most paper cuEng machines are Fed to expensive physical media.
If you want to cut out a new font or clip art you need to spend $89.99 to buy
that cartridge. It is like having to buy an album even if you just want a song.
No one should have to pay
$89.99 to use
Comic Sans
$499.99 $89.99
Solu?on
Create an iTunes style opFon for paper cuEng machines. Turn
expensive cuEng cartridges into digital media like iTunes did for
music. Introduce ala carte pricing, beOer hardware, broader
selecFon, and a superior user interface.

4. Opportunity
Cutbots can private label a paper cuKer and create soIware that provides
more op?ons for less cost with a superior user interface.
• Create soPware to drive cuEng machines
• Increase choices for customers
• Provide customizaFon tools
• Introduce pricing flexibility
Market Opportunity
• Hobby market = $31B market (hOp://bit.ly/ZiMIg)
• Scrapbooking is a $2.5B sub‐segment (hOp://bit.ly/3umGnb)
• Paper cuOers worth ~$500MM
• Hundreds of millions in opportunity in adjacent markets

5. Pent Up Demand
4500+ visitors have come to my
blog looking for info on “hacking”
the CriCut, based on 2 blog posts.
“Hackers” make up a small part of
the Cricut community which leads
me to believe even more people
would be interested in lower cost,
less restricFve paper cuEng.
Factor in new funcFonality you
could enable and the market
opportunity is huge.

6. Challenge
Convenience is Key – Customers would have to pay $89.99 for one of the
sets of design below. Many do because the system is well designed and easy to use.
New systems would have to be as simple

7. Product Offering
Hardware
OEM manufacturers will allow us to brand
a paper cuOer with the “CutBots” name.
With high enough volumes you could also
customize the hardware funcFonality.
Web Service
Provide a web site that can replace paper
cuOer funcFonality in easy to use format.
Key Features
• Provide catalog of 1000’s of designs
• Design tools to modify designs
• Share designs with friends
Pricing Approach – One approach to pricing
Fairly simple business model. Large, established customer base willing to pay for data.
$89 $25 $1‐2
500 Images 100 Images 1 Images
Unlimited Fonts Unlimited Fonts Limited Fonts
The price of 1 exisFng cartridge which Typical price of a giP card Reasonable micro transacFon price
holds 20‐40 images

8. How it Works: Part 1
Requires No Partnerships
Website
1. Design on Website
2. Web files converted 4. Data transmiOed to
to cuOer files cuOer via SD
4a. Data transmiOed
3. Driver prepares for to cuOer via computer

9. How it Works: Part 2
Requires Hardware Partnership
Website
1. Design on Website
2. Web files converted
4. Data transmiOed to
to cuOer files
cuOer via iPhone app
5. Data transmiOed to
3. Driver prepares for cuOer via computer

10. Revenue Potential
Sell a customer a cuKer for $300 & $89 “data plan”:
$59.8MM
Net $150/cuKer + $89/data
250,000
$23.9MM Customers
1,00000
$11.95M Customers
50,000
$2.39MM Customers
10,000
$239K Customers
1,000
Customers
These numbers assume we are able to capture ~25% of the exis?ng paper cuKer market. Addi?onal revenue
could be gained by broadening product offerings, increasing “share of wallet” with exis?ng customers, etc.

11. Risks Opportuni?es
Partnership with hardware company Develop plaeorm for other devices
User experience can be improved/revenue CNC embroidering machines, lasers, CNC mills,
generated with no partnership. and other custom manufacturing devices
Compe?ng with a major brand Appeal to wider demographics
Target customers aren’t super tech savvy, will Appeal to “make:rs” and “craP:ers” with
require major markeFng efforts different aestheFc sensibiliFes
Market may be saturated Shrink a market
ProvoCraP has been expanding poroolio. We’ll be Replacing expensive hardware with efficient
locked out from exisFng plaoorm unless we can soPware
hack or partner with ProvoCraP. Expand Selec?on
May be too complex for customers Can easily add new designs, significantly increase
ExisFng products thrive based on plug and play opFons for customers
simplicity. Computers/iPods increase flexibility at Capture Greater Margins
the price of complexity
No manufacturing cost, no split with retailers
Create new product categories
Paper craP toys, silkscreen preparaFon, etc.
Build Design Tools for hobbyists
Major gaps exist between pro level Adobe
soPware and free tools like SketchUp

12. Team

Me – Co‐Founder
• Product Design and management experience in consumer technology business.
• Employee #17 at startup
• Full product ownership from concepFon to markeFng
• Author of popular blog on mass customizaFon
?
You – Co‐Founder
• Designed, Engineered, Shipped Consumer facing soPware (& personal projects)
• Front end UI development experience
• Interest in graphics or aestheFcs
• Worked in a startup environment
?
You – Co‐Founder
• Designed, Engineered, Shipped Consumer facing soPware (& personal projects)
• Experience with eCommerce back end systems
• Interest in business
• Worked in a startup environment