1. Demolishing the Status Quo in Entrepreneurial Education

2. I Write a Blog www.steveblank.com

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

5. First -What’s A Startup? Six Types of Startups

10. 99.7% of all companies

11. ~ 50% of total U.S. workershttp://www.sba.gov/advo/stats/sbfaq.pdf

12. Scalable Startup Large Company Scalable Startup Search Goal is to solve for: unknown customer and unknown features

14. Total Available Market > €300m

15. Can grow to €50/yearScalable StartupBorn to Be Big

17. Company can grow to $100m/year

18. Business model found

19. Focused on execution and process

21. Typically needs risk capital

23. Professional Mgmt

24. Process

26. Buyable Startup Search Sell Scalable Startup €3 to e0M Acquisition Goal is to solve for: Internet and Mobile Apps Sell to larger company

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

32. Acquire - IP- Talent - Product - Customers - Business

34. Social Enterprise: Profitable

36. Search Versus ExecutionWhy Accountants Don’t Run Startups

38. Repeatable sales model- Managers hired

40. Product/Market fit- Repeatable sales model - Managers hired

42. Cash Flow Statement

44. Viral coefficient

45. Customer Lifetime Value

46. Average Selling Price/Order Size

47. Monthly burn rate

49. Cash Flow Statement

51. Scalable

52. Price List/Data Sheets

54. Pricing/Feature unstable

55. Not yet repeatable

56. “One-off’s”

58. Scalable

59. Price List/Data Sheets

61. Feature Spec’s

62. Competitive Analysis

64. Feature Spec’s

66. Minimum Feature Set

67. Pivots

69. Waterfall Development

70. QA

72. Waterfall Development

73. QA

75. Continuous Learning

76. Self Organizing Teams

77. Minimum Feature Set

79. Known features for line extensions

80. Known customers/markets

82. Unknown feature set

83. Unknown business model

84. Model found by iteration

85. Plan describes “knowns”

86. Known features for line extensions

87. Known customers/markets

89. Entrepreneurship as a Management Science E-School instead of B-School

91. 300 years of companies without MBA credentials

93. Strategy

94. Accounting

95. Products

96. Engineering

97. Management

99. Managing Groups and Teams

100. Financial Accounting

101. Operations

102. Modeling for Optimization

104. Cadre of experienced managers to match

105. Experts on finance and growth (Dupont/GM)B-Schools made the 20th Century the American business century

106. Business School Focus on Large Company StrategiesExecution versus Search

108. Most believe startups are just smaller versions of large companies

111. 1996 IdeaLab

112. 2005 Y-Combinator

114. Goal: create a company and jobs

115. Full-time residential, stipend-based program

117. Startups Are Not Smaller Versions of Large Companies Large Companies Execute Known Business Models

118. Startups Are Not Smaller Versions of Large Companies Startups Search for Unknown Business Models

120. Goal: methodology for startup creation

121. Can be taught anywhere

122. University

123. Incubator

124. Remotely

126. CUSTOMER SEGMENTS which customers and users are you serving? which jobs do they really want to get done?

127. VALUE PROPOSITIONS what are you offering them? what is that getting done for them? do they care?

128. CHANNELS how does each customer segment want to be reached? through which interaction points?

129. CUSTOMER RELATIONSHIPS what relationships are you establishing with each segment? personal? automated? acquisitive? retentive?

130. REVENUE STREAMS what are customers really willing to pay for? how? are you generating transactional or recurring revenues?

131. KEY RESOURCES which resources underpin your business model? which assets are essential?

132. KEY ACTIVITIES which activities do you need to perform well in your business model? what is crucial? 57

133. KEY PARTNERS which partners and suppliers leverage your model? who do you need to rely on?

134. COST STRUCTURE what is the resulting cost structure? which key elements drive your costs?

135. value proposition customer relationships key activities customer segments key partners cost structure revenue streams key resources channels 60 images by JAM

136. sketch out your business model

137. sketch out your business models

138. But,Realize They’re Hypotheses

139. 9 Guesses Guess Guess Guess Guess Guess Guess Guess Guess Guess

140. Customer Development The founders ^ Get Out of the Building

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

144. Market Type

145. CompetitionTurning Hypotheses to Facts

147. Customer

148. User

150. Customer

151. User

153. Market Type

155. (Customer)

158. Customer

159. User

161. Market Type

163. (Customer)

167. Iteration without crisis

169. Minimum feature set speeds up cycle time

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

174. Pivot ExampleRobotic Weeding Talked 75 Customers in 8 Weeks

175. Our initial plan Confidential

177. White Farms, Large Peanut farmer in Georgia

178. REFCO Farms, large grower in Salinas Valley

179. Rincon Farms, large grower in Salinas Valley

180. Small Organic Corn/Soy grower in Nebraska

181. Heirloom Organics, small owner/operator, Santa Cruz Mts

182. Two small organic farmers at farmers market

184. Parks: Stanford Grounds Supervisor, head of maintenance and lead operator (has crew of 6)

185. Toro dealer (large mower manufacturer)

186. User of back-yard mowing system

187. Maintenance Services for City of Los Altos

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

190. Decision to make – mowing vs weeding

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

192. 1 Week – 1 CarrotBot Confidential

193. CarrotBot Machine Vision data collection platform Monochrome & Color Cameras Laser-line sweep (depth measurement) Encoders (position/velocity) Onboard data acquisition & power CarrotBot 1.0

195. Demo, demo, and demo!!

196. Proximity is paramount

197. Technology Design

198. Marketing

199. Demo and customer feedback

200. Organic Farmers

201. Weeding Service Providers

202. Conventional Farmers

203. Cost Reduction

204. Remove labor force pains

205. Eliminate bio-waste hazards

206. Research Labs

207. Equipment Manufacturers

208. Distribution Network

209. Service Providers

210. IP – Patents

211. Video Classifier Files

212. Robust Technology

213. Dealers

214. Direct Service

215. Indirect Service

216. … then Dealers

217. Asset Sale

218. Direct Service with equipment rental

219. … then Asset SaleValue-Driven

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

222. Visit Highlights Organic Broccoli, closely cultivated. Weeds close to plants are hand-picked

223. Visit Highlights State of the Art in Weeding Technology for Organic Crops

225. Industrial (10,000s of acres)

226. Large (1,000s of acres)

227. Willing to pay $100k for one unit

228. Smaller growers (100s of acres) usually subcontract the labor services or rent equipment

229. All purchases through local dealers

230. Customer service is essentialPost-Test

232. Local Farm Mgr

233. Cliff Kirkpatrick, visited

234. Director, Ag Technology

236. CFO, CEO (Jeff Dunn)Cliff, Farm Mgr

238. Grower

240. Demo, demo, and demo!!

241. Proximity is paramount

242. Technology Design

243. Marketing

244. Demo and customer feedback

245. Mid/Large Organic Farmers

246. Agricultural corporations

247. Weeding Service Providers

248. Mid/Large Conventional Farmers

249. Cost Reduction

250. Remove labor force pains

251. Eliminate bio-waste hazards

252. Research Labs

253. Equipment Manufacturers

254. Distribution Network

255. Service Providers

256. IP – Patents

257. Video Classifier Files

258. Robust Technology

259. Direct Service

260. Indirect Service

261. … then Dealers

262. Direct Service with equipment rental

263. ($1,500/d; 120d/yr )

264. Low density: $1,500/d

265. High density: $6,000/dValue-Driven

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

268. Demo, demo, and demo!!

269. Proximity is paramount

270. Technology Design

271. Marketing

272. Demo and customer feedback

273. Mid/Large Organic Farmers

274. Agricultural corporations

275. Weeding Service Providers

276. Mid/Large Conventional Farmers

277. Research Labs

278. Equipment Manufacturer

279. Distribution Network

280. Service Providers

281. 2 or 3 Key Farms

282. Cost Reduction

283. Remove labor force pains

284. Eliminate bio-waste hazards

285. IP – Patents

286. Video Classifier Files

287. Robust Technology

288. Direct Service

289. Indirect Service

290. … then Dealers

291. Direct Service with equipment rental

292. Low density: $1,500/d

294. Bill of Materials

295. Training & Service

297. MammOptics Final project presentation for E 245 Winter 2011

299. Non-radiative

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

303. Finding the right customer From radiologists to gynecologists

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

305. MammOptics Hospital purchasing decision tree

306. MammOptics Hospital purchasing decision tree Hospitals Complex purchasing decision tree. Several saboteours

307. MammOptics Private practice purchasing decision tree

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

313. MammOptics Marketing

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

321. Direct feedback from doctors

323. No customer feedback

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

330. MammOptics Customer Workflow Insurance Mammography Radiologist Hospital Administration Technician ACOG ACS Doctor specialty committee

331. MammOptics Customer Workflow Insurance Mammography Radiologist Insurance ACOG/ACS Same cost as mammography ($140) Reduced number of biopsies ($1000) Improved healthcare (mammography weak technique) Hospital Administration Technician ACOG ACS Doctor specialty committee

332. MammOptics Customer Workflow Insurance Mammography Radiologist Hospital Administration Technician ACOG ACS Doctor specialty committee

333. MammOptics Customer Workflow Insurance PCP OB/GYN Mammography Patient Radiologist Hospital Administration Technician MammOptics Doctor specialty committee ACOG ACS

334. MammOptics Customer Workflow Insurance PCP OB/GYN PCP OB/GYN Mammography Mammography Patient Patient Radiologist Radiologist PCP OB/GYNs Patient MammOptics Increased revenue More complete patient care Improved healthcare Comfort Revenue Hospital Administration Technician Hospital Administration Technician MammOptics MammOptics Doctor specialty committee ACOG ACS

335. MammOptics Customer Workflow Insurance PCP OB/GYN Mammography Patient Radiologist Hospital Administration Technician MammOptics 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

338. Building the company The backstage of a medical device company

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

340. MammOptics Partners Manufacturing Choose manufacturing facility close to home

341. MammOptics MammOptics Partners Partners Manufacturing Reimbursement Manufacturing Difficult to get coverage for new product.

342. MammOptics Reimbursement Partners Insurances CPT Codes $75-$150

343. MammOptics Partners Manufacturing Reimbursement 510K vs. PMA Largest cost Biggest financial risk FDA Clinical Trials

344. MammOptics Clinical Trials Stage 1 Pilot trials Feasibility Comparison with mammography 50 patients $600K 6 months 12/4/2009

345. MammOptics Clinical Trials Stage 2 Interim trials Prove superior safety-efficacy & sensitivity Stage 1 Pilot trials 500 patients $7.2M 6 months 15 months 12/4/2009

346. MammOptics Clinical Trials Stage 2 Interim trials Stage 3 FDA pivotal trials Stage 1 Pilot trials FDA class II, 510(K) w/ trials Focus on superiority & economic end-points 1500 patients $20.5M 6 months 15 months 24 months 12/4/2009

347. MammOptics Clinical Trials Stage 4 Post-market studies Stage 2 Interim trials 2000 patients $26.8M Stage 3 FDA pivotal trials Stage 1 Pilot trials Specific Cat III CPT/ACP Codes Market traction 6 months 15 months 24 months 24 months 12/4/2009

348. MammOptics Clinical Trials Stage 4 Post-market studies Stage 2 Interim trials $26.8M Stage 3 FDA pivotal trials Stage 1 Pilot trials $7.2M $600K $20.5M 6 months 15 months 24 months 24 months 12/4/2009

349. MammOptics Clinical Trials 12/4/2009

350. MammOptics MammOptics Partners Partners Manufacturing Reimbursement Financial timeline Funding FDA Clinical Trials

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

352. 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 $15M $10M $5M Initialize Proof of Concept Design Milestones Clinical Milestones Provisional Patent Regulatory/ IP Milestones Technology Licensing 152 12/4/2009

353. 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 $15M Series A $3.5 MM $10M $5M System Initialize Proof of Concept Beta Prototype Design Milestones Beta-Version Testing Laboratory Prototype Pilot Studies Clinical Milestones Provisional Patent Regulatory/ IP Milestones Technology Licensing 153 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

370. Blog Your Progress

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

372. We Made Students Blog Their Progress It Changed Everything

373. Interview

374. Photos Videos

375. Surveys

376. Interview & Photos

377. Competitive Analysis

378. Key Findings

379. A/B Test Results

380. Key Question

381. Strategy

382. Business Model Canvas as the Scorecard

384. Business Model design

385. Customer Development

386. Agile Development

387. Metrics

388. Venture Finance

389. Design Thinking

390. Execution

391. Accounting

392. Products

393. Engineering

394. Management

396. Customer/Agile Development

397. Business Model Design

398. Entrepreneurial Management

399. Creativity and Innovation

400. Entrepreneurial Finance

402. Managing Groups and Teams

403. Financial Accounting

404. Operations

405. Modeling for Optimization

407. Customer/Agile Development

408. Business Model Design

409. Entrepreneurial Management

410. Creativity and Innovation

411. Entrepreneurial Finance

413. East coast manufacturing-centric

414. East coast B-School-centric

415. 21st century focus on virtual and physical goods and channels

417. Adopted by the U.S. Government

418. Thanks www.steveblank.com