3. This Talk is Based On Business Model Generation Four Steps to the Epiphany The Lean Startup
4. This Talk What’s a Startup? Search versus Execution Entrepreneurship As a Mgmt Science B-Schools = Large company mgmt Incubators = the transition E-School = the conclusion
26. Buyable Startup Search Sell Scalable Startup €3 to e0M Acquisition Goal is to solve for: Internet and Mobile Apps Sell to larger company
27.
28. i.e. Product/Market fit- Repeatable sales model - Managers hired What’s A Startup? Search Execute A Startup is a temporary organization used to search for a repeatable and scalable business model
141. Customer DevelopmentThe Search For the Business Model Company Building CustomerDiscovery CustomerValidation Customer Creation Pivot
142. Customer Discovery CustomerDiscovery CustomerValidation Company Building CustomerCreation Stop selling, start listening Test your hypotheses Continuous Discovery Done by founders
171. The Pivot Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Publishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive A Pivot is the change of one or more Business Model Canvas Components Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
172. How Does This Really Work?Stanford Lean LaunchPad Class
173. How Does This Really Work?Stanford Lean LaunchPad Class 8 Weeks From an Idea to a Business
189. Found weeding in organic crops is HUGE problem; 50 - 75% of costs Crews of 100s-1000 Back-breaking task (Ilegal) labor harder to get 1-5 weedings per year/field $250-3,500 per acre and increasing Food contamination risk
191. Autonomous vehiclesWEEDING Dealers sell, installs and supports customer Co. trains dealers, supports dealers - Innovation - Customer Education - Dealer training - Low density vegetable growers - High density vegetable growers - Thinning operations - Conventional vegetables We reduce operating cost - Labor reduction (100 to 1) - Reduced risk of contamination - Mitigate labor availability concerns - Ag Dealers - Ag Service providers - Research labs - Ag Dealers - Ag Service providers Engineers on Machine Vision Two problems: - Identification - Elimination Asset sale Our revenue stream derives from selling the equipment Dealer discount COGS seek a 50-60% Gross Margin Heavy R&D investment
220. Visit Highlights Above: Organic Carrots, 7wks. Top right: Conventional carrots Bottom Right: Very weedy. Will require multiple passes of hand weeding
221. Visit Highlights Carrot vs. Weeds Due to small root systems, carrots have no chance against weeds
266. World Ag Expo interviews:the need is real and wide spread 10+ interviews at show Everyone confirmed the need Robocrop, UK based, crude competitor sells for $171 K Revenue Stream Mid to small growers prefer a service Large growers prefer to buy, but OK with service until technology is proven Charging for labor cost saved is OK, as we provide other benefits (food safety, labor availability) Confidential
301. MammOptics Business Model Canvas 1 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Hospitals Leading doctors 3rd party manufacturers Distributors Pioneering radiologists in hospitals Radiation-free Earlier detection Non-invasive IP Leading doctors Technical Expertise Direct sales to hospitals Product Development Clinical trials Operating Costs Capital equipment sales and disposable item
302. MammOptics MammOptics Business Model Canvas 1 of 4 Business Model Canvas 1 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Initial guess Initial guess Hospitals Leading doctors 3rd party manufacturers Distributors Pioneering radiologists in hospitals Radiation-free Earlier detection Non-invasive Test: Customer segment Value proposition Initial guess IP Leading doctors Technical Expertise Direct sales to hospitals Product Development Clinical trials Operating Costs Initial guess Capital equipment sales and disposable item
304. MammOptics Excursions into hospitals Debra Ikeda Jason Davies Jafi Alissa Lipson Sunita Pal Leading doctors 6 women >40 8 women <40 Patients Alicia X-ray mammography Technicians Hospital Managers Paul Billings Holly V. Gautier
308. MammOptics Private practice purchasing decision tree Private practice Faster adoption rate Attractive value proposition ✔
309. MammOptics Business Model Canvas 2 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Pioneering Doctors Hospitals OB/GYNs PCPs Direct Sales to doctors IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
310. MammOptics Business Model Canvas 2 of 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Pioneering Doctors Hospitals OB/GYNs PCPs How do we get to our customer? Need sensitivity and specificity Direct Sales to doctors IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
311. Getting to our customer The world of direct sales and medical marketing
312. MammOptics Interviews Breast Cancer Advocacy Groups Be Bright Pink Jennifer Glover Dr. Cindy Woo Dr. Jags Powers Dr. Aaron Shuvkan OB/GYNs Katrina Bell Tanay Dudhela Jed Hwang Medical Sales FDA/Clinical Trials Phyllis Whitely Carl Simpson
314. MammOptics Marketing Strong influence on doctors via ACOG Standard of Care Strongly influenced by KOLs Access to ACOG by former member
315. MammOptics Marketing Researchers with strong peer recommendations Researchers conducting important clinical trials Outsourced survey research Researchers with numerous publications
316. MammOptics Marketing Focus on prominent journals Need two big publications Choose KOL as Principal Investigators (PI)
317. MammOptics Marketing Effective method for educating doctors Workshop must be approved by ACOG Doctors required to attend workshops Taught by objective medical experts
318. MammOptics Marketing ACOG Annual Clinical Meeting Opportunity for feedback from doctors Miami Breast Cancer Conference
319. MammOptics Marketing Trusted information source for patients Access to media outlets Critical opinion leader for technology adoption
325. MammOptics Pricing Strategy Equipment Lease model Per-use model Consumable Cost of the device $50,000 $5,000 $5,000 $25,000 Service per year $3,000 $10,000 0 0 Per-use fee 0 0 $50 0 Consumable 0 0 0 $20
326. MammOptics Pricing Strategy Approved by customers and investors Equipment Lease model Per-use model Consumable Cost of the device $50,000 $5,000 $5,000 $25,000 Service per year $3,000 $10,000 0 0 Per-use fee 0 0 $50 0 Consumable 0 0 0 $20
327. MammOptics Customer Workflow Current market Insurance Mammography Radiologist Hospital Administration Technician ACOG ACS Doctor specialty committee
328. MammOptics Customer Workflow Current market But what would happen if we replace mammography? Insurance Mammography Radiologist Hospital Administration Technician ACOG ACS Doctor specialty committee
329. MammOptics Customer Workflow Insurance Mammography Radiologist Breast Radiologists Hospitals Technicians Loss of jobs Eliminates loss leader Puts emphasis on biopsies Loss of jobs Hospital Administration Technician ACOG ACS Doctor specialty committee
336. MammOptics Business Model Canvas 3 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Publishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
337. MammOptics Business Model Canvas 3 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA ReimbursementPublishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Learned how to reach the customer How do we build a company based on this? Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
339. MammOptics Interviews Stanford StatisticsSteve Axelrod Marga Ortigas-Wedekind FDA Clinical Trials Nick Mourlas Don Archambault Manufacturing Shannon Bergstedt Ali Habib Reimbursement Venture Capitalists Dana Mead Bill Starling Doctors/Sales Dr. Aron Shuftan Jed Hwang Michael J. Nohr
351. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 M&A / IPO $50 MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M Series C $30.5 MM $30M $20M Cash Reserve Series B $9 MM $15M Series A $3.5 MM $10M $5M Financial timeline System Initialize Launch Regulatory / Clinical Marketable Product Proof of Concept Second Release Beta Prototype Design Milestones 1st Release Test 2nd Release Test Beta-Version Testing Laboratory Prototype Publication Publication Clinical Results Post-Market Clinical Studies Pilot Studies US Pivotal Clinical Trials Clinical Milestones US Interim Trials Non-Specific Codes Provisional Patent IRB / IDE Specific Codes (Cat. I CPT / APC) Cat III CPT FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Application and System Patents Initial Product Launch IC and Processing Patents Technology Licensing 151 12/4/2009
354. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 $40M $30M $20M Cash Reserve Series B $9 MM $15M Series A $3.5 MM $10M $5M System Regulatory / Clinical Marketable Product Beta Prototype Design Milestones Beta-Version Testing Laboratory Prototype Pilot Studies Clinical Milestones IRB / IDE Regulatory/ IP Milestones Application and System Patents IC and Processing Patents 154 12/4/2009
355. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 $40M Series C $30.5 MM $30M $20M Cash Reserve Series B $9 MM $15M $10M $5M System Regulatory / Clinical Second Release Design Milestones 1st Release Test Publication Pilot Studies US Pivotal Clinical Trials Clinical Milestones US Interim Trials IRB / IDE Cat III CPT Regulatory/ IP Milestones Application and System Patents IC and Processing Patents 155
356. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M Series C $30.5 MM $30M $20M Cash Reserve $15M $10M $5M Launch Regulatory / Clinical Second Release Design Milestones 2nd Release Test Publication Publication Clinical Results US Pivotal Clinical Trials Clinical Milestones US Interim Trials Non-Specific Codes FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Initial Product Launch 156 12/4/2009
357. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 M&A / IPO $50 MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M $30M $20M Cash Reserve $15M $10M $5M Launch Regulatory / Clinical Design Milestones Publication Post-Market Clinical Studies Clinical Results Clinical Milestones Non-Specific Codes Specific Codes (Cat. I CPT / APC) FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Initial Product Launch 12/4/2009
358. MammOptics MammOptics Financial / Operations Timeline 2016 2012 2013 2014 2015 2017 2018 M&A / IPO $50 MM Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q3 Series D $35 MM $40M Series C $30.5 MM $30M $20M Cash Reserve Series B $9 MM $15M Series A $3.5 MM $10M $5M System Initialize Launch Regulatory / Clinical Marketable Product Proof of Concept Second Release Beta Prototype Design Milestones 1st Release Test Beta-Version Testing 2nd Release Test Laboratory Prototype Publication Publication Post-Market Clinical Studies Clinical Results Pilot Studies US Pivotal Clinical Trials Clinical Milestones US Interim Trials Non-Specific Codes Provisional Patent IRB / IDE Specific Codes (Cat. I CPT / APC) Cat III CPT FDA – Class II – 510 (k) with Clinical Trials Regulatory/ IP Milestones Application and System Patents Initial Product Launch IC and Processing Patents Technology Licensing 158 12/4/2009
359. MammOptics Business Model Canvas 4 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor Online IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
360. MammOptics Business Model Canvas 4 of 4 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing KOLs 3rd party manufacturers Breast Cancer Foundations ACOGACS Clinical trial designer Earlier detection Non invasive Price Accuracy Immediate Results OB/GYNs PCPs Final iteration of our business model But… need to think about the big picture… Direct Sales to hospitals Distributor Online IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
361. MammOptics Business Model Canvas 1 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Hospitals Leading doctors 3rd party manufacturers Distributors Radiation-free Earlier detection Non invasive Pioneering Doctors Hospitals Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
362. MammOptics Business Model Canvas 2 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Hospitals Leading doctors 3rd party manufacturers Distributors Research Hospitals Radiation-free Earlier detection Non invasive Pioneering Doctors Hospitals Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
363. MammOptics Business Model Canvas 3 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Pioneering Doctors Hospitals Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
364. MammOptics Business Model Canvas 4 Strong clinical data Training Maintenance Product Development IP Clinical trials FDA Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive Hospitals (Capital Spending Committee) Leading doctors 3rd party manufacturers Distributors Research Hospitals Breast Cancer Foundations Pioneering Doctors Hospitals OB/GYNs PCPs Direct Sales to hospitals IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Capital Equipment Sales and disposable item
365. MammOptics Business Model Canvas 5 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA ReimbursementPublishing Doctors: Earlier detection Price Accuracy Patients: Radiation Free Non-Invasive Leading doctors Key Opinion Leaders 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item
366. MammOptics Business Model Canvas 6 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Capital Equipment Sales and disposable item Per use fees
367. MammOptics Business Model Canvas 7 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers Distributors Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
368. MammOptics Business Model Canvas 8 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers (local) Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
369. MammOptics Business Model Canvas 9 Strong clinical data Training Maintenance Conferences CME courses Product Development IP Clinical trials FDA Reimbursement Publishing Doctors: Earlier detection Price Accuracy Immediate Results Patients: Radiation Free Non-Invasive KOLs 3rd party manufacturers (local) Breast Cancer Foundations ACOGACS Clinical trial designer OB/GYNs PCPs Direct Sales to hospitals Distributor IP Leading doctors Technical Expertise Product Development Clinical trials Operating Costs Marketing Costs Per use fees
371. How? Customer Development The Process Narrative Interviews Surveys Videos Prototypes Business Model Canvas Scorekeeping Real-time Feedback Physical Reality Checks Skype Face-to-face