24. Tradition – Hire Marketing
Concept/ Product Alpha/Beta Launch/
Seed Round Dev. Test 1st Ship
- Create Marcom - Hire PR Agency - Create Demand
Marketing Materials - Early Buzz - Launch Event
- Create Positioning - “Branding”
25. Tradition – Hire Sales
Concept/ Product Alpha/Beta Launch/
Seed Round Dev. Test 1st Ship
- Create Marcom - Hire PR Agency - Create Demand
Marketing Materials - Early Buzz - Launch Event
- Create Positioning - “Branding”
• Hire Sales VP • Build Sales
Sales • Hire 1st Sales Staff Organization
26. Tradition – Hire Bus Development
Concept Product Alpha/Beta Launch/
Dev. Test 1st Ship
- Create Marcom - Hire PR Agency - Create Demand
Marketing Materials - Early Buzz - Launch Event
- Create Positioning - “Branding”
• Hire Sales VP • Build Sales Channel /
Sales • Pick distribution Distribution
Channel
Business • Hire First • Do deals for FCS
Development Bus Dev
27. Tradition – Hire Engineering
Concept Product Alpha/Beta Launch/
Dev. Test 1st Ship
- Create Marcom - Hire PR Agency - Create Demand
Marketing Materials - Early Buzz - Launch Event
- Create Positioning - “Branding”
• Hire Sales VP • Build Sales Channel /
Sales • Pick distribution Distribution
Channel
Business • Hire First • Do deals for FCS
Development Bus Dev
Engineering • Write MRD • Waterfall • Q/A •Tech Pubs
29. Waterfall / Product Management
Execution on Two “Knowns”
Requirements
Product Features: known
Design
Implementation
Verification
Customer Problem: known Maintenance
Source: Eric Ries
http://startuplessonslearned.blogspot.com
30. Waterfall / Product Management
Execution on Two “Knowns”
Requirements
Product Features: known
Design
Implementation
Verification
Customer Problem: known Maintenance
Source: Eric Ries
http://startuplessonslearned.blogspot.com
34. Search Execution
Strategy Business Model
Operating Plan +
Hypotheses
Financial Model
Process Customer & Product Management
& Waterfall
Agile Development Development
40. Founders run a
Customer Development Team
No sales, marketing and business
development
41. Search Execution
Strategy Business Model
Operating Plan +
Hypotheses
Financial Model
Customer Development, Product Management
Process
Agile Development Agile or Waterfall Development
Customer Functional Organization
Organization
Development Team, by Department
Founder-driven
47. Search Execution
Strategy Business Model
Operating Plan +
Hypotheses
Financial Model
Process Customer Development, Product Management
Agile Development Agile or Waterfall Development
Organization Customer Development Functional Organization
Team, Founder-driven by Department
Education Business Model Design, Organizational Behavior,
Customer Development, HR Mgmt, Accounting,
Startup team building, Modeling, Strategy,
Operations, Leadership,
Entrepreneurial Finance,
Marketing, Manufacturing
Agile Development,
Customer Funnel:
Get/Keep/Grow Market
55. Business Model Patterns
Replace Cases
Nespresso
club
production
Nespresso
machines
Nespressopo
ds
distribution
channels Nespresso
.com
production
coffee
facilites
B2C 1 x machine
distribution sales
55
56. Search Execution
Strategy Business Model
Operating Plan +
Hypotheses
Financial Model
Process Customer Development, Product Management
Agile Development Agile or Waterfall Development
Organization
Customer Development Functional Organization
Team, Founder-driven by Department
Education Business Model Design, Organizational Behavior,
Customer Development, HR Mgmt, Accounting,
Startup team building, Modeling, Strategy,
Entrepreneurial Finance, Operations, Leadership,
Agile Development, Marketing, Manufacturing
Marketing
Instructional Experiential, constructivist, Case, Lecture, Small
Strategies learner-centered, Group, Mentorship
inquiry-based
57. Search
Strategy Business Model
Hypotheses
Process Customer Development,
Agile Development
OrganizationCustomer Development
Team, Founder-driven This Class
Education Business Model Design,
Customer Development,
Startup team building,
Entrepreneurial Finance,
Agile Development,
Marketing
Instructional Experiential, constructivist,
Strategies learner-centered,
inquiry-based
58. Search Execution
Strategy Business Model
Operating Plan +
Hypotheses
Financial Model
Process Customer Development, Product Management
Agile Development Agile or Waterfall Development
Organization
Customer Development Functional Organization
Team, Founder-driven by Department
Education Business Model Design, Organizational Behavior,
Customer Development, HR Mgmt, Accounting,
Startup team building, Modeling, Strategy,
Entrepreneurial Finance, Operations, Leadership,
Agile Development, Marketing, Manufacturing
Marketing
Instructional Experiential, constructivist, Case, Lecture, Small Group,
Strategies learner-centered, inquiry- Mentorship
based
114. How to Build A Startup
Idea
Business Model
Size Opportunity
Customer Development
115. How to Build A Startup
Business Size of the Customer Customer
Idea Model(s) Opportunity Discovery Validation
116. How to Build A Startup
Size of the
Business Size of the
Business Customer Customer
Idea Opportunity
Model(s) Opportunity
Model(s) Discovery Validation
Theory Practice
117. How to Build A Startup
Size of the
Business Size of the
Business Customer Customer
Idea Opportunity
Model(s) Opportunity
Model(s) Discovery Validation
118. How to Build A Startup
Size of the
Business Size of the
Business Customer Customer
Idea Opportunity
Model(s) Opportunity
Model(s) Discovery Validation
• First test the problem
• Next test the solution
119. How to Build A Startup
Size of the
Business Size of the
Business Customer Customer
Idea Opportunity
Model(s) Opportunity
Model(s) Discovery Validation
121. How Does This Really Work?
NSF Lean LaunchPad Class
10 Weeks From an Idea to a Business
122. Graphene Frontiers
We are a nanotechnology materials
company with a proprietary process for
producing high quality, low cost, large
area graphene films at commercial scale
123. Background: Graphene Applications
“Wonder Material” Graphene
• Nano Material Subject of 2010 Nobel Prize in Physics
• 2D Carbon: Strong, Flexible, Conductive, Transparent
• Enables Next Generation Thin, Flexible Devices
Flexible Transparent Thin, Flexible
Touch Screen, Displays
Electrodes Solar Cells
124. Problem: Lab Scale Not Enough
Graphene Production Must Scale Up to
Commercial Levels before Integration into
Consumer Products Becomes a Reality…
125. Solution: Scalable Production Process
Our Patent-Pending APCVD
Graphene Production Process:
•Operates at ambient pressure,
reducing cost enabling flexible design
•Industrial scale, continuous roll-to-
roll production possible
•Graphene sheet size limited only by
CVD furnace dimensions
•Same or better quality vis-à-vis
LPCVD graphene
•Graphene growth at 900-1000 °C,
lower than other methods
126. Market: Size and Growth
Nascent Graphene Market is Ready to Explode:
Commercial Scale Production will be Catalyst
• Thin, Flexible Displays
• Solar Thin Film
• Touch Screens Thin, Flexible Display
• Thermal Management for Electronics Thermal Management $8.2B
• Basic Materials and Research
$6.4B
• Microscopy (TEM) Sample Supports
GF TAM:
$1.2B
Research/
Market for Thin Film Solar Mat’l/Other
Graphene $4.6B $1.4B
Films/Sheets
$52M
Graphene Frontiers Process & Product Offering
• GF APCVD Process will Accelerate Graphene Adoption Curve
2012 2016
127. Team: Graphene Frontiers
EL:Zhengtang Luo, PhD – Chief Science Officer
10+ years experience in synthesis of carbon
nanomaterials and product development for applications
in the area of materials chemistry, chemical separation
and electronic devices.
Mentor: Mike Patterson – CEO
Experienced entrepreneurial leader, manager, and
trusted adviser to startups and Fortune 500 companies,
providing expertise in growth strategy and international
operations. Patterson is an Executive MBA candidate
(Entrepreneurial Management, April 2012) at the
Wharton School, University of Pennsylvania.
PI: A.T. Charlie Johnson, PhD – Founder, Scientific Advisory Board
Known internationally for his work in graphene electronics and carbon nanotube electronics. IP from his lab on
DNA-carbon nanotube devices for use in an electronic nose system pursued by Nanosense. An author of over
130 peer-reviewed articles, Johnson holds two issued patents, with 18 other patents submitted.
128. Recap
• Graphene technology will change the world...
• …but not until it is available in commercial volumes
• We believe that APCVD is the best path to industrial scale
• Whoever meets this challenge will be first mover in a fast
growing market with multi-billion dollar potential
• We are the right team with the right technology to do it
129. What’s Next: Strategy and Roadmap
1H 2012 2012 2013+
Commercial Roll-to- Application
Phase 4” Scale-Up Roll Design & Prototype Development
Product/ TEM Grids Process Licensing Intellectual Property
Materials Business Thin, Flexible Displays
Revenue
12” x 12” Sheet Roll-to-Roll Mfg. Application R&D
Milestone Production Industrial Scale Team
“World Leader in
Perfect
CVD Graphene
Activity Scale-Up Sheet Size Continuous
Process Innovation”
Increase Area Increase Throughput New Applications
130. What’s Next: Secure Partnerships + Investment
Distribution Active Customer Manufacturing
Partners Conversations Partners
Seed Investment
Needed
131. Enter I-Corps: Beginning Hypotheses
Here’s What We Thought:
– Graphene can be used for just about anything
– All of the big manufacturers are just waiting for our
product
– The market for graphene will explode in 2012
– We will become the world’s largest graphene
manufacturer
132. So Here’s What We Did…
• Research to identify target companies: Build the list
– Web, industry/research reports, personal network,
“Who else should we talk to?”
• Calls to personal/professional/alumni network: “Do you
know anyone…?”
• Intros, warm calls, cold calls, cold calls, more calls
133. So Here’s What We Did…
• Google AdWords Campaign + Survey Monkey
– 3 days, 8,555 Impressions, 34 people clicking through to our site, ZERO
contacts/closes. Retrospect: What were we trying to learn???
• Serendipity: Casual conversation turns to Graphene Frontiers at alumni event:
“That’s terrific! You know, I work at DuPont. Here’s my
card… send me your deck and let me know how I can
help.”
–Tom Connelly, Chief Innovation Officer, DuPont
135. So Here’s What We Learned…
• Atmospheric pressure production is key value-add
– Not “high-quality”, not single-layer
• Many big companies are on the sidelines doing limited
product dev, waiting for a proven production method
• We need to focus on scaling up (bigger & faster)
• We need a partner to break into consumer electronics
• Cost matters, but not as much as we thought
136. So Here’s What We Learned…
• TEM grids are viable, near term but small market
– Will rely on distribution partner
• Displays will be next big thing
– Focus on flexible/foldable thin displays
– May require partnership with OEMs or sub-contractors
• Extensive product characterization is next step
– Transparency, haze, sheet resistance for displays (3M, Dow, DuPont)
– Minimize layers and contamination for TEM (SPI, Halcyon)
137. • R&D • Warranty
• Earlyvangelists • Defense
• Scale up system design • Service/Maint.
• (Customer/Partner) • MEMS
• Graphene production Material Agree
• Equipment Mfg • Chem/Bio Detect.
• IP creation/licensing • Thermal Conduct. • Joint Marketing
• Universities • Researchers
• Internal application • Elect. Conduct • Branding
• Downstream • Optoelectronics
development • Strength
fabrication • Transparent
companies • “Semiconductor” Conduct. (Touch)
• Suppliers • IP* (Patent/License) • Flexible • Solar Cell Electrodes
• Team/Expertise • Transparent • Thermal Mgmt
• Credibility/Rep • Distributor • Supercapacitor
Process
• CVD Equipment • Direct Sales • Battery
• Low Cost
• Inputs (gas/foil) • Online • TEM support
• Higher Quality
• Lab space • License • Polymer/Composite
• Large Area
• Website • Partner/JV • CVD Equip Mfg
• “Industrializable”
• Design/Engineering • Bundle
• Flexible Mfg
• Team • Material Sales • Add’l IP
• Lab space • License/Royalty • Applications
• Capital equipment • Equipment Sales • SBIR
• Consulting • Angel
• Maintenance • VC
• Design • Ben Franklin
138. The Business Model Canvas
• Lead Customer
• R&D • Warranty
• Equipment Mfg Material
• Scale up system • Service/Maint.
• Universities • Thermal Conduct. • Defense
design Agree
• Downstream • Elect. Conduct • MEMS
• Graphene product. • Joint Marketing
fabrication • Strength • Chem/Bio Sensor
• IP creation/ • Branding
companies • “Semiconductor” • Researchers
licensing • Education
• Suppliers • Flexible • Optoelectronics
• Internal app. dev. • Transparent • Transparent
Conduct. (Touch)
Process • Solar Cell
• Low Cost Electrodes
• Higher Quality • Thermal Mgmt
• IP* (Patent/License) • Large Area • Supercapacitor
• Distributor
• Team/Expertise • “Industrializable” • Battery
• Direct Sales
• Credibility/Rep • Flexible Mfg • TEM support
• Online
• CVD Equipment • Polymer/Compos.
• License
• Inputs (gas/foil) • CVD Equip Mfg
• Partner/JV
• Lab space • Bundle
• Website
• Design/Engineering
• Team
• Lab space • Material Sales • Maintenance
• Capital equipment • License/Royalty • Design
• Direct Sales/Travel • Equipment Sales • Add’l IP
• Consulting • Applications
139. The Business Model Canvas
Equipment Mfg Scale up Low Cost Education Thermal Mgmt
Solutions
Universities Customization
Higher Quality Service/Maint.
Transparent
Production Conduct.
Downstream Large Area (Touch)
fabrication
companies
Chem/Bio
“Industrializable”
IP License Sensor
CVD Equipment Direct Sales
Facilities/Lab
License/Royalty
Capital equipment Personnel
Material Sales
Direct Sales/Travel Lab space
140. The Business Model Canvas
Equipment Mfg Scale up Low Cost Education Thermal Mgmt
Solutions
Universities Customization
Higher Quality Service/Maint.
Transparent
Production Conduct.
Downstream Large Area (Touch)
fabrication
companies
Chem/Bio
“Industrializable”
IP License Sensor
CVD Equipment Direct Sales
Facilities/Lab
License/Royalty
Capital equipment Personnel
Material Sales
Direct Sales/Travel Lab space
141. The Business Model Canvas
Equipment Mfg Scale up Low Cost Education Thermal Mgmt
Solutions
Universities Customization
Higher Quality Service/Maint.
Transparent
Production Conduct.
Downstream Large Area (Touch)
fabrication
companies
Chem/Bio
“Industrializable”
IP License Sensor
CVD Equipment Direct Sales
Facilities/Lab
License/Royalty
Capital equipment Personnel Intermediate
product
Material Sales
Direct Sales/Travel Lab space
142. Graphene Frontiers Business Model Canvas – PRIOR VERSION (10.18)
Scale up
Equipment Mfg Low Cost Education Thermal Mgmt
Solutions
Customization
Service/Maint.
Universities Higher Quality Transparent
Collaborative R Conduct.
Production &D (Touch)
Downstream Large Area
fabrication Membrane
companies switches
“Industrializable”
IP License Replace ITO
CVD Equipment Direct Sales
Facilities/Lab Chem/Bio
Sensor
License/Royalty
Capital equipment Personnel Intermediate
product
Material Sales
Direct Sales/Travel Lab space
144. Graphene Frontiers Business Model Canvas “A”
Research Transfer Process Academic Papers
Groups Optimization Atomically Thin
and Robust Electron
Trade Shows Microscopists
TEM
Equipment Higher Quality
Mfg.
“Clean”
IP
CVD Equipment
Facilities/Lab
“Free” Revenue Sharing
(Selling Byproduct) w/Distributor
145. Graphene Frontiers Business Model Canvas “B”
Scale up
Equipment Foldable / Education Flexible
Mfg Bendable Transparent
Customization
Service/Maint. Conductor
Universities Higher Quality Collaborative
R&D
Downstream Large Area
Fabrication
Companies
“Industrializable”
IP License
Low Cost
CVD Equipment
Facilities/Lab
Intermediate License/Royalty
Capital Equipment Personnel product
Direct Sales/Travel Lab space
146. Graphene Frontiers Business Model Canvas “B”
Scale up
Equipment Foldable / Education Flexible
Mfg Bendable Transparent
Customization
Service/Maint. Conductor
Universities Higher Quality Collaborative
R&D
Downstream Large Area
Fabrication
Companies
“Industrializable”
IP License
Low Cost
CVD Equipment
Facilities/Lab
Intermediate License/Royalty
Capital Equipment Personnel product
Direct Sales/Travel Lab space
147. How Does This Really Work?
NSF Lean LaunchPad Class
10 Weeks From an Idea to a Business
148. PHOTOCATALYSTS for WATER
REMEDIATION
(nanocatalysts)
• Commercialize visible light activated nanocatalysts (Nanogrids™)
• Nanotechnology removes hydrocarbons from polluted water
• Turns wastewater from fracking operations into drinkable water
• New product in a niche (multibillion $) market
• Talked to 70 people- dealers, distributors, customers)
• Surveyed another 30 customers
(c) copyright 2011
149. Initial Idea & Market Opportunity Estimate
Total available market
• Our invented nanogrids™(c) for environmental
technology offers inexpensive, nanotechnologies
extremely fast and efficient
2010: $6.1b
hydrocarbon decomposition
2014: $21.8b (projected)
• It has potential uses in oil
decomposition/ environmental Served Available Market
remediation environmental remediation
40% of total market
• Focus on Gulf Oil Spill clean-
up efforts Target Market
$8b
Ref: F. Boehm, Nanotechnology in Environmental Applications, BCC Research,
2006; NOAA, Gulf Spill Restoration, 2011
(c) copyright 2011
150. Team Members
PI: PerenaGouma, tenured Associate Professor, Dept of Materials
Science & Engineering, SUNY Stony Brook; Director of Center for
Nanomaterials& Sensor Development; Fulbright Scholar and NSF
grantee since 2002. Has published over 100 research articles on
ceramic nanomaterials and their functional applications; she holds 4 US
patents
Lead: Jusang Lee, doctoral candidate in the PI’s research group; he
has published research-based and review papers; he is a co-inventor
along with the PI of the nanogrids™ technology
Mentor: Clive Clayton, founder Director of the SPIR program at SUNY;
Leading Professor in Materials Science & Engineering, SUNY Stony
Brook; Fellow of the Electrochemical Society; serving on advisory board
of BASF’s Rensselaer NY Ecology Center
152. So, Here’s What We Did
TESTED THE CUSTOMER SEGMENTS HYPOTHESIS
Company Contact Person Lessons Learned
Dow Chemical Ventures Steve Hahn To focus on water cleaning systems;
efficiency of catalyst is the key feature
Oceanside Water Pollution AlexandreMiot To focus on petroleum-based contamination;
Control Plant, SF, CA) skimming
Eastern Environmental Deb Engelhardt, Current practices: spill tech pads; Regen Ox
Solutions, Inc (LI, NY) Louis Bascelli, (oxidizer)
Joseph Napoli
Miller Environmental (LI, NY) Dave Reardon Got suggestions for pilot studies; projects
cost vary a lot
DEC (region 1, NY) Karen Gomez State environmental regulations; contractors
Eco-Test Babylon (LI, NY) Thomas Powell Water quality testing procedures and EPA
standards
GES Edward Savarese Current practice: pump and treat; geologists
org. contact
David Tonjes DT&S-SBU; Customer is the Env. Engineer
consultant
WRS environmental; Environtrac Front desk Talked to their R&D people
(LI, NY) personnel
154. Here’s What We Found
Target Market: Petroleum-Oil Polluted Water Remediation
• Industry is excited about innovative products/solutions
• Problems are diverse; Common pollutants: gasoline, fuels
• Makes no sense to directly sell and ship our products
• Need to identify distributors and partner with them
• No Leasing
• Our competitive advantage could be that we offer fast remediation solutions
156. So, Here’s What We Did
ASSESSED THE MARKET TYPE
Talked to Dealers of Environmental Remediation
Products ECS
Environmental
Approached Key Distributors Compliance (MA)
Talked to Remediation Specialists in Numerous AECOM (MA)
Remediation Companies
We Went on a Field Study to Eyewitness the Kerfoot
Challenges Associated with Remediating Technologies, Inc
Underground Oil Spills (MA)
EnviroTrac (LI, NY)
BKW
Environmental
(TX/PA)
Advanced
Environmental
Solutions (MA)
157. So, Here’s What We Found
NewProduct for Niche Segment of Existing Market
• Remediation treatments of petroleum-oil contaminated water almost leave
residual hydrocarbon contamination levels that prevent the disposal of the
remediated water to the environment
• Our nanocatalystscan be used to fully remediate hydrocarbonsand to provide
clean water
• However, is there a sizeable market for our technology?
• What is it?
• Does the size of the opportunity make it worth pursuing it further?
159. So, Here’s What We Did
Packaging Options & Cost of Manufacturing
•Came up with differentPackaging Options for our product
• Contacted 30 Potential Customers about our product
• Tried to Recruit Members for IAB
• Calculated the Cost of In-House Manufacturing
• Produced a Revenue Model for Our Company
Packaging options
•Rolls of fabric-like material
• Blankets
• Pads /mats
160. So, Here’s What We Found
Industry likes our product and pricing
Our Product* Estimated Cost ExistingProductinMarket
Rolls of fabric-like material (Sold $10 U***
per square foot) Oil Absorbent
$ 20
Blankets (3x2 .5 feet) $50 P***Oil-Only Weighted Absorbent Blanket
$ 112
Pads mat for small spill (15" x $30 B*** INDUSTRIES Buff Oil Absorb Pads
18“) $ 51
* Our product description:
• new nanotechnology that collects & decomposes oil in water, in-situ
• It can hold oil up to 20 times its weight, floats in water, and uses sunlight to
break down hydrocarbons into eco friendly products
161. Industry Expert/Customer Testimonials
“I feel your purchase prices are too high for the mass of the remediation
market. For a massive spill of 100,000 gallons or more, the cost would
compare unfavorable with skimming and transporting for reclamation.
For small spills your product is in competition with the cost of conventional
absorbents plus landfill disposal. In this case, your $10 per sq. foot compares
with $10-16 per ton landfill disposal.”
Dan Gray, Hepaco Inc., Tucker, GA.
“I think that the pricing is right on, I think it shouldn’t be very difficult to sell the
fabric, especially since its eco-friendly.
Would these then, in theory, be able to be thrown in the trash along with MSW?
Here on LI most of our garbage is burned, what type of off gasses are
produced when these are incinerated?
Also, would this product work on water/ocean/river spills?”
James Cressy, Project Manager, Impact Environmental
163. So, Here’s What We Found
Produced Water Added Key Customer Segment
“Produced water”:
Discharged in off-shore oil-producing areas
Fracking creates large amounts of wastewater
Current energy exploration and extraction in US creates
15-20 billion barrels of produced water / year
Worldwide, estimates top 50 billion barrels
Energy companies pay between $3 – $12 to dispose of
each barrel of produced water
WHAT IS BTEX?
BTEX is the abbreviation used Produced water is usually treated to remove most free oil
for four compounds found in
petroleum products.
The compounds are benzene, Need to treat the remaining amount of soluble and
toluene, ethylbenzene, and volatile petroleum hydrocarbons
xylenes. BTEX average concentration remaining about 5mg/L
Allowable limit of BTEX in drinking water 5mg/L
165. What is the Problem We Solve?
• Our product can contain the volatile petroleum hydrocarbons (e.g.
benzene) and subsequently decompose them either in-situ or off-site
• It can be used as the final remediation step in the “produced water” clean
up
• It can, in principle, turn “produced water” from wastewater to drinkable
water while treating on-site
• New legislation expected to cancel the Energy Industry’s exception from
the Clean Water Act, thus favoring “new, self-contained, on-site water
treatment”
• The current market for treating produced water is estimated to exceed
$4.3 billionfor next 5 years
169. Revenue model diagram
First year revenues:
20 SME of $100,000 sales/year= $2M
2 LC of $1M /year =$2M 60
first year revenues : $4M
Second year revenues:
75% retention of SME
50
15 SME of $150,000 sales/year= $2.25M
2 LC: $5M sales/year
second year revenues $7,25M 40
($M)
Third year revenues:
maintain the domestic levels with existing
customers but expand international sales 30
to $3.5M
This will set us over $10M
20
Fourth year revenues:
Add new line of products for existing
market; expand into adjacent markets
(off-site remediation; water purification; 10
etc)
Revenues to reach $50M
0
Year 1 Year 2 Year 3 Year 4
170. What’s Next
The PI and Lead are forming a company (C-corp)
The mentor will maintain advisory role
Ongoing negotiations for exclusive licensing of IP in progress
Seek seed funding from investors, VCs, SBIR, SUNY’s economic
development office, NYSERDA
Explore interactions with Pall and Siemens Water Technologies on
developing integrated solutions/licensing IP
Explore opportunities for women-owned businesses
Disseminate core principles learned into the University’s incubator program
through mentor’s efforts
171. Stony Brook University
Office of Technology Licensing and Industry Relations
The Office of Technology Licensing and Industry Relations (OTLIR) is an
entity of the Research Foundation for State University of New York, which
manages the intellectual property for esteemed SUNY faculty members and
acts a liaison for academic-industry interactions.
Exclusive License General Terms:
Clearly defined field of use
Diligence milestones for compliance and assurance of commercialization
Up-front payment
Patent cost reimbursement
Financial milestone payments based on product sales and commercial
milestones
Sublicensing and Assignment terms
Limitations on liability including insurance and indemnification
172. How Does This Really Work?
NSF Lean LaunchPad Class
10 Weeks From an Idea to a Business
174. Initial Business Concept
Global lighting industry - $100B
LED lighting - $6B, CAGR>40%
Enhanced cooling allows
LED Replacement
• Higher lumen output
Lamps
• Higher light quality
~500 million sockets
• Better reliability
* $15/lamp =
~$750M
RIT NSF ICORPS Dec 14 2011 174
175. Principal Investigator Mentor
Dr. Satish Kandlikar Dr. Suresh Sunderrajan
Gleason Professor President, NNCrystal Corp.
Mech. Engg., RIT
Entrepreneurial co-Lead Entrepreneurial co-Lead
AnkitKalani KirthanaKripash
MS Engineering (Candidate) RIT MBA (Candidate), RIT
Kandlikar and RIT Team – NSF I-Corps
177. Customers Channels Key Partners
“We are willing to
wait 5 to 7 years
for the price to fall “If you bring us a
before we adopt modular thermal
this technology on system that provides
a wide scale. ” better cooling at lower
cost, we would
definitely want to
explore this technology.
Kandlikar and RIT Team – NSF I-Corps
178. Other
Components Arka provides
replacement lamps
Arka Lights
•LED
array, Lamp
components
Luminaire
•LED
luminaires Manufacturers
and Fixtures
Distributor
Contractor
Project/Owner
179. Customers Distribution and Supply
: The customer is • We lack in
unwilling to buy the product Lamp/Luminaire production
atcurrent prices
: The final consumer • OEMs were interested in
is highly dependent on incorporating our enhanced
Gatekeepers (suppliers) for thermal module in their
guidance in product choice product
We had to pivot! Kandlikar and RIT Team – NSF I-Corps
180.
181. Arka Lights Arka provides
Thermal Modules
OEMs
• LED luminaires and
Fixtures
Other Distributor
Components
Contractor
Project/Owner
• Institutions, Home
Owners, Distributors
182. Customers Environment Key Partners
We would like
to enter into a
partnership to
Heat Exchanger develop heat
Manufacturer pipe based
products.
183. • Our competencies lay primarily in the heat
pipe industry
• The most encouragement came from a heat
exchanger manufacturer who is looking to
expand his product line.
• Our Business Model iterated; we will now
focus on heat pipe based solutions in diverse
applications.
Kandlikar and RIT Team – NSF I-Corps
184. Commercial PAR 38 Arka Prototype
52 °C (max)
37 °C (max)
• Arka prototype runs 15 C cooler, allowing more LED placement per
lamp
• Prototype delivers 100 % more lumens for the same form factor
• ~30% lower cost/unit for similar lumen output
• The weight of Par38 is 65 percent lower, and the manufacturing
cost is $4.50 (current module costs about $2.20)
RIT NSF ICORPS Dec 14 2011 184
185.
186. Design Arka
Sources and Heat Exchanger
Technical Lights Manufacturer
Experts
Division?
Partnership?
Market
Market
…
187. • Negotiations with Heat Exchanger Manufacturer
(HEM) ongoing.
• Arka provides::IP, heat transfer expertise, design
• HEM provides: Manufacturing, distribution and
sales channels
• Arka will be proactivein exploring other market
opportunities.
– Additional revenue/cost models will be explored using
the methodology of this class
Kandlikar and RIT Team – NSF I-Corps
188. • The Process:
– Iterations occur organicallywhen you respond to
market and consumer needs.
– Explore unconventional opportunities, be OPEN, and
be aware that potential partners may be sitting next
to you in a plane. I probably met my future
prototyping partner on my way to Stanford.
• The Market:
– Understand your customers, channels and partners
– It’s about money – customer’s, partner’s and yours –
respect that without forgetting your core values.
Kandlikar and RIT Team – NSF I-Corps
189.
190.
191. • Most Valuable Game Changers – Your Students!
– Recognize the innovative potential of your student
– Guide them to pursue commercialization: from their mom’s
gardening business to successful technological products
– Motivate your students – Be ENABLERS. You can shine on your
own, but you can “nucleate” many more stars.
• Most Valuable Assets – Your Ideas and Your Drive
– Dream of Possibilities
– And then make them HAPPEN – you will know how by simply
GETTING STARTED
Kandlikar and RIT Team – NSF I-Corps
192.
193.
194. – Show innovativeness
– Integration of Student education on commercialization
– Hope to get NSF implementation grant for RIT curriculum
– Hope to be NSF face on commercialization initiative
– Create a start-up and be successful (really start a heat pipe
company)
195. • What I hoped to learn.
– To be involved in a grant based project from start to finish
– Understanding the needs and requirement of product
development ( from research lab to an actual product)
• What I learnt.
– What entrepreneurship really means
– How to talk and listen to ‘actual’ customers
– Understanding requirements for a start-up not just product
development
– Presentation improvement skills
– Planning and working to meet deadlines
– Being flexible and responsive to feedback
196. • What I hoped to learn:
– How to understand and facilitate the technology commercialization
process
– How to work with technical teams
– Student and University based technology commercialization and
resources
– If academic training in entrepreneurship translates in the real world.
• What I learnt:
– Working with a idea at the nascent stage while incorporating customer
feedback allows room for easier growth and modification
– Concepts and Theories do not convert easily to product features.
Prototyping from paper to product takes time, effort and an ability to
improvise.
208. Market/Opportunity Analysis
How Big is It?: Market/Opportunity Analysis
– Identify a Customer and Market Need
– Size the Market
– Competitors
– Growth Potential
209. How Big is the Pie?
Total Available Market
• How many people would want/need
the product?
• How large is the market be
(in $’s) if they all bought?
Total Available Market • How many units would that be?
How Do I Find Out?
• Industry Analysts – Gartner, Forrester
• Wall Street Analysts – Goldman, Morgan
210. How Big is My Slice?
Served Available Market
• How many people need/can use product?
• How many people have the money to
buy the product
Total • How large would the market be (in $’s)
Available Served if they all bought?
Market
Available • How many units would that be?
Market
How Do I Find Out?
• Talk to potential customers
211. How Much Can I Eat?
Target Market
• Who am I going to sell to in year 1, 2 & 3?
• How many customers is that?
• How large is the market be
(in $’s) if they all bought?
Total Served
• How many units would that be?
Available Available
Market Market
Target
Market How Do I Find Out?
• Talk to potential customers
• Identify and talk to channel partners
• Identify and talk to competitors
212. Market Size: Summary
• Market Size Questions:
– How big can this market be?
– How much of it can we get?
– Market growth rate
– Market structure (Mature or in flux?)
• Most important: Talk to Customers and Sales Channel
• Next important: Market size by competitive approximation
– Wall Street analyst reports are great
• And : Market research firms Like Forester, Gartner
214. The Opportunity
Global Catalyst
Market =
Chemical $29.5 B
Catalyst
Hydrogen- Pd/C • Emissions
ation Catalyst
Market Catalyst = $1.1 B
• Refinery
= $7 B = $1.5 B • Chemical
215.
216.
217. MARKET SIZE
A m e r i c a n s L o v e t o Ea t M e a t a n d S n a c k
Giant Markets
> Meat: $160B / Snacks: $70B 2009 US Snack Food
> Meat Snacks: $4B Retail Sales
Varying Growth Rates Salty
> Meat: + 5% $30B
> Snacks: + 15%
>Jerky: + 5%
Mega Consumer Trends Converging Sweet
>Healthy, More Flavorful, Higher Quality $35B
Snacks Driven by Innovation / News
Meat
Meat Snacks / Jerky Generally Sleepy
> Limited Innovation $4B
> “Gut Stuffer” Image Source: US Package Facts
Change Underway Driven by New Entrants
>All-Natural
> 10% Growth Latest 52 Weeks Nielsen F/D/M
218. $50 Billion Dollar
Protein Therapeutic Market
$1.4 Billion Dollar
Cell Line Sales Market
$140 Million
Dollar Target
221. Market size - Landlords & Rental Units
Units by Landlord Portfolio Size in % of Units, by Landlord Portfolio
USA (millions) Size, Owned by a Single Individual
100% 92%
90%
77%
0.06 80%
0.46
70%
Small: 1 to 4
60%
50%
Medium: 5 to 49 40% 32%
2.20 30%
Large: 50 or More 20%
10%
50% of the “Small” landlords own just one unit. 0%
Small: 1 to 4 Medium: 5 to Large: 50 or
49 More
Rental Real Estate is the Largest “Mom and Pop” business in America: The vast majority of properties are
owned by a single individual that owns only one property.
Source: US census data
222. The market size for metastatic cancer diagnostics in the
U.S. is estimated to be $805M p.a.
Methodology: Value: Explanation: Source:
U.S. population size 313M Total U.S. population in 2012 U.S. Census
x Bureau estimate
U.S. incidence of all cancers 0.512% Treatment is typically given in ACS Cancer Facts
the first year following diagnosis & Figures 2011
=
Total U.S. cancer incidence 1.6 M
x
% diagnosed with regional Cancers that spread to local or NCI SEER 2011
39.4%
or distant cancers distant lymph nodes or organs data
=
Patients w/ regional or
628,420
distant cancers
x
Cost of diagnosis and Weighted avg. patient cost p.a. JAMA. 2010;
$1,285
monitoring (annually) for imaging procedures (2008) 303(16):1625-1631
=
Market size for metastatic
$805M
cancer Dx / monitoring
228. • Hypotheses to test
Hypothesis Test
There is strong Interest in facilitating Interviews (landlord and providers), web
rental maintenance support ad conversion
Service providers are willing to pay for Interviews (need to determine
lead generation through our site consensus willingness to pay)
There will be a higher response rate Interviews (tenant and landlord), survey
amongst tenants and landlords for an (tenant), web ad conversion of different
“exclusive” community messages
Tenants are willing to pay a nominal fee Interviews (tenant), survey (tenant),
($1-2) for convenient rent/utility online web ad conversion.
payment service (Need at least 0.08% CPM conversion to
be profitable)
Real Estate agents are willing to help Interviews
push this offering to their customers
228
229.
230.
231.
232.
233. Week 1 Week 3
Hypothesis Test Results
• Existing prepaid cards add value Interviewed supermarket User acquisition is critical
to a subset of the population executives, payment user engagement is everything
– Underpenetrated processors, private label card
opportunity manufacturers, prepaid Underpenetrated opportunity
– We can find a better program managers, loyalty because people:
channel to reach this consultants, and data analytic Don’t understand the value
customer segment and firms of the card
convert them Don’t know about the card
Haven’t bought one yet
• Existing prepaid cards are flawed
and can be improved Potential customers are aware of
– We can do something clever and understand prepaid, but:
to shake up the fee Hate the fees
structure and/or build in a Haven’t bought one yet
new feature (e.g., rewards)
• Solution = prepaid + loyalty card
– Distributed at retail POS
234. Week 3 Week 4
Hypothesis Test Results
• Existing prepaid cards add value Interviewed end users at End Users see value:
to a subset of the population Walmart, food banks, bus More likely to sign up for
– Underpenetrated prepaid via assisted POS sale
stops, payday lenders, their Active vs. passive sale
opportunity homes, and supermarkets hypothesis validated
– We can find a better More likely to keep and reload
channel to reach this Interviewed execs at Green cards with ongoing cash
customer segment and Dot, Rush Card, and NetSpend rewards
Higher retention via loyalty
convert them hypothesis validated
• Existing prepaid cards are flawed Retailers see value:
and can be improved
New revenue opportunity is
compelling
– We can do something clever Access to purchasing data
to shake up the fee outside the store is compelling
structure and/or build in a
new feature (e.g., rewards) Industry Trends
Loyalty + prepaid programs
are the future
• Solution = prepaid + loyalty card
Industry execs like this idea a
– Distributed at retail POS lot and are actively exploring it
235. Week 4 Week 5
Hypothesis Test Results
• Customer awareness and $5 for 5 minutes campaign 20 preliminary signups
education are key obstacles to Speak to as many potential
customer acquisition and customers as possible ask for Built empathy around customer
retention an actual commitment prepaid needs
Immediacy
• Channel: Assisted sale at POS Security fears
trumps current passive j-hook Fees
sale Channels
– Active sale enhances Discovered other needs
awareness & education Job-seeking
Saving for kids’ education
Understood observed behaviors
• Product: Combining prepaid + High churn
loyalty Lack of reloading
– Cash rebates improve Lack of regular usage
retention and incentive to
reload Loyalty component not required
if you can service the true pain
points
236. Team Deliverable by Tomorrow
• Hypotheses for each part of business model
• Test for each of the hypotheses
– What constitutes a pass/fail signal for the test (e.g. at
what point would you say your hypotheses
wasn’t even close to correct?
• Plan to get out of the building to test the hypotheses
• Summarized in a 5 Minute PowerPoint Presentation
– Business Model Canvas
– Market Size
– Getting out of the building plan
Don’t Over Think Your Hypotheses
237.
238. Backup
Idea
Business Model
Size Opportunity
Customer Development
Editor's Notes
The Background: Graphene is an amazing material that will improve and disrupt entire industries, including electronics and clean energy
Problem statement: None of these things will happen unless and until graphene can be produced in large quantities – Commercial Scale
Solution: We can do this. Our technology offers the best path forward to enable commercial scale production of graphene films at low cost.
Market Opportunity: We believe that there is significant demand for graphene, but the market will not develop and companies will not design products that incorporate graphene until a reliable source is identified
Rock Stars.
We may have been overconfident.
So here’s the plan.
We’re now ready to raise money to scale up and develop our continuous manufacturing prototype, and we have several heavy hitters who are waiting to see us succeed…
We may have been overconfident.
We:--Made a target list--asked for introductions and referrals--worked our networks--made a BUNCH of calls
The Payoff:--What we thought was important wasn’t important to our potential customers and partners--The market *will not grow* until someone can prove that they can supply graphene--The source must be reliable, and the cost must be within reason**WE NEED TO DEMONSTRATE SCALE**
We can make money TODAY with TEM Grids and material sales… distributors are clamoring for our stuffWe have work to do to meet display requirementsBig companies are willing to help us get there
Version 1: Crazy, right?? We realized that we had work to do, so we completely revamped our slide before we presented it to our classmates by…
…using a cleaner template and underlining a few words. We settled on this as Graphene Frontiers Canvas #1 and thought that we would WOW the audience with how much detail we had and how broad our scope and opportunity was.We projected this on the screen and were promptly booed off the stage. Sooo….. v2 was born:
Lesson #1: Focus.We narrowed our scope to the three applications we believed were most promising and set out to test our assumptions
We were a bit too hesitant to fail fast and close doors, but we did recognize early on that we were probably not going to become “the Alcoa of nanocarbon”
We also heard from customers that we would need to integrate into existing production lines… high volume manufacturers may be reluctant to buy vast quantities of material… they probably want to license and make their own.We also learned that ITO and silver nanowires were the competition for touch screen and displays, but we were beginning to quantify the differentiators
We heard that collaborative R&D would be a necessity—we will need to help companies use our material in their product development.Membrane switches—a new opportunity we evaluated, was quickly ruled out.
The big week:Near term opportunity: TEM GridsMedium term opportunity: Thin, flexible displays
Canvas A: TEM GridsWe’re partnering with SPI, a microscopy supply distributor, and have developed a Minimum Viable Product that is undergoing beta testing and evaluation.We will provide them with graphene on copper foil (a byproduct of our work to scale up production), and they will transfer to the grids, QC, package, market, sell, etc. and we have agree in principle on a revenue sharing deal
Canvas “B”: Flexible transparent conductors for Displays
We learned that we needed to partner with manufacturers to incorporate graphene into product development, and *SCALE UP IS CRITICAL*Cost is not as important as we thought earlier,: We don’t need to beat ITO, we need to do what it can’t do (flexible, impervious to oxygen, etc.)
Tell them where we are now.
This market is very lucrative. The size of the market is large, few barriers, large incentives, a market that is set to grow, multiple brands, the presence of smaller brands and manufacturers duking it out with larger names, no industry standards as yet…. Why didn’t this work, you ask?Because the market is large, there are multiple brands, small and large manufacturers are duking it out, there are no industry standards, there is resistance to change and other factors.
Because we were adjacent to and serving the consumer market (Commercial consumers of LED PAR38 lamps), a large part of our customer interaction was with facilities managers and other consumer gatekeepers like architects and distributors. Most of our customers were very aware of advances in the LED lamp space. They kept up to date with brands, prices and incentives for these products. Many indicated awareness that LED lamps need better thermal management and expressed interest in adopting this technology across multiple properties. Most of our interviewed customers had experimented with LED lamps and were very pleased with the performance of these lamps. Advantages included reduced energy consumption and cost, reduced maintenance and inventory cost and the longevity of the lamp. However, they communicated that they were unable to use these lamps on a wide-scale because of the price of these lamps. At current prices, $40 -50, these lamps could not be adopted across commercial properties. Commercial Customers indicated that the desired price range lay in the $15 – 20 bracket. They were willing to wait for up to 5 years for the price to fall prior to wide scale usage of these lamps. Other disadvantages included the directional nature of the beam (requiring more lamps for illuminations), the weight of the lamp and the chance of theft.Commercial customers were aware of NYSERDA and NYPA incentives and do utilize those grants to purchase LED lamps. Many utilize these incentives to buy lamps that were used in properties that were aiming to achieve and maintain LEED certifications. Customers were also highly influenced by gatekeepers. The range was diverse and ranged from contractors, architects and distributors to trade publications in their professional field. The influence of each of these gatekeepers was dependent on the type of commercial customer and the nature of the occupation of each interviewee. Many indicated that they were not very likely to consider changing brands of lamps.
SCRIPTArka Thermal Solutions would work in the LED light space. But instead of producing LED lamps, ATS would produce the thermal component – our core technology. Arka would design and produce thermal management components that would then be fitted into LED lamps. We had moved one step upstream; joining, what was earlier, our supplier side to become a component manufacturer for LED lamps. This would allow us to:Focus on our core competencyNot have to enter a market that was complex and supplier drivenReduce initial capital investmentHave shorter lead timesExplore greater scope in product linesReduce the number of customers, but increase our rapport with them. OEMs said “we are very interested….”
This market was ideal for a startup with Arka’s genetics. But the business plan had to iterate again. Why?Arkafaced certain inherent barriers. The first questions was the flow of design and product. Would we manufacture the product? Manufacture and brand it as Arka? Or outsource manufacturing and brand it Arka? Not brand at all, but court a LED manufacturer, pitch a solution and then work with partner suppliers? Which was the most viable for Arka, why would a partner supplier choose to work with us? And why would a customer choose to work with a partner supplier at all? And so, how could we protect our design? How would we enforce design non-disclosure and protect our core assets?These questions were hard to answer. Each model that it’s advantages and disadvantages. Arka is a very young startup and loss of a vital asset like it’s heat pipe IP would be a devastating setback. We had to come up with a business model that, at this point, would best reflect and capitalize on the core competencies of the founding members.
This slide represents pass/fail parameters that we outlined in October 2011 when we disclosed and created our initial business model. As of December 2011, these pass/fail parameters have been put to use. The Value Proposition, outlined in green, indicates that our value proposition (while modified) is the vital component around which our business model has pivoted twice. At the core of Arka remains the novel heat pipe technology that can offer significant gains in thermal transfer while reducing the energy consumption and improving efficiency of the product. At this point of time, Arka seeks to capitalize on this novel heat pipe technology as an asset that serves to differentiate Arka from other heat pipe manufacturer and designers. The parameters highlighted in blue are those that were modified. These parameters did not fail due to the lack of positive feedback, but because of other considerations in the first two iterations. Long lead times and Break Even Point Goal, the lack of expertise in manufacturing, the presence of gatekeepers and strong customer attitudes are a few of the reasons while these parameters caused iterations in the first two models. Feedback while positive in these areas, did not translate to a strong defensible business model. The parameters outlined in red are those that were true. For example, with our proposed customer segments in the first business model, this parameter was validated because customers indicated that switching to LED lamps was not a high priority at this point of time, and they were willing to wait for prices to fall before adopting the technology. We also faced challenges with the execution of the project. The long lead times and lack of expertise in manufacturing were some of the challenges.
How has your method of instruction changed? In class and in the lab? Problem solving and student guidance?How will it make you change the curriculum? New additions within your class (besides large scale changes in course structure and otherwise?