1) The document describes an I-Corps team exploring the development of bio-based chemical intermediates for polymer, bio-surfactants, and bio-lubricants.
2) The value proposition is to provide sustainable, bio-based replacements for non-renewable petroleum-derived feedstocks used in surfactants and lubricants with improved performance features.
3) Interviews with potential customers revealed the largest market opportunity is in surfactants, so the team pivoted their focus to developing drop-in monomers for the $24 billion surfactant market.
Influencing policy (training slides from Fast Track Impact)
Bio-based chemicals for sustainable polymer and surfactant industries
1. Interviews conducted in total – 62+38 = 100 CBiRC, Iowa State University
Bio-based sustainable chemical intermediates for
polymer bio-surfactants, bio-lubricants
I-Corps Team
Shivani Garg
Entrepreneurial Lead
Graduate student, 3.5 yrs in
biochemistry
Bio-based chemical Dr. Basil Nikolau
Principal Investigator
intermediates Professor, 30 yrs in biochemistry
Dr. Peter Keeling
I-Corps Mentor
Entrepreneur, 30 yrs in biotechnology
industry
One minute video - http://www.youtube.com/watch?v=xY9nXzlzEHA&feature=youtube_gd
Two minute video - http://www.youtube.com/watch?v=ZyGr-eoONqo&feature=youtube_g
2. Value proposition
Problem Solution Features of value
proposition
• Non- • Sustainable, bio-based • Bi-functional molecules
renewable, petroleum replacement • Flexibility in chain length
derived feedstock for • Higher performance • Flexibility in branching
surfactant, lubricant • Improved cold
industry temperature tolerance of
detergents, lubricants
5. Business Model Canvas 1.0
•Co-create
•Production, value proposition
yield, quality Problem - Non- • Customer •Existing
•Match renewable goodwill and market Polymer
- Bio-mass
customer‟s feedstock for trust manufacturers,
suppliers
product specs making polymer • Customer Biotech
Solution communities companies,
- Contractual
(Product) – Bio-
scale-up
based and • New market -
sustainable Novel bio-plastic
-Technology • Manufacturing replacement companies?
providers facility Features - Bi- •Physical
•IP functional and product • Multi-sided
-Utility providers • Human customizable •Indirect channel market?
resources, •Wholesale
capital
• Sell bio-based monomers
•Fixed – Capital • Added value pricing based on
Value•Variable – Manufacturing,
prop. hypothesis: Bio-mass Bio-based and sustainable
customization of products
• Licensing?
Customer segment hypothesis: Polymer manufacturers, new markets
Test: Talked to biochemical companies
6. Value Proposition, Customer Segments:
Experiments
Talked to potential customers
Biochemical companies, Market research (15)
Senior Scientist
Vice-President, Technology Development R&D Director Senior Scientist
Senior Business Development Manager Research Scientist Market Research Analyst
7. Value Proposition, Customer Segments:
Results
Surfactants: new market ($24bn)
Monomer Monomer
manufacturer “Have you manufacturer
considered
surfactants
Polymer space?”
formulator Polymer Surfactant
- DSM formulator Formulator
Polymer Polymer Surfactant
user user user
Consumer facing Consumer facing
company company
Consumer Consumer
8. Value Proposition, Customer Segments: Iteration
Business Model Canvas 4.0
Problem - Non-
renewable
•Existing market
feedstock
Polymer
Solution – Bio-
manufacturers, Bi
based, sustainable
otech companies,
replacement
Surfactants,
Features - Bi-
Home &
functional,
Personal Care
customizable
sector
• „Drop-in‟
monomers
• New market -
• Diacids (chain
Novel bio-plastic
length: C10-C16)
companies?
•New
functionalities
• Multi-sided
(cyanide, amine)
market?
Channel hypothesis: Indirect channel of wholesale
Test: Talked to chemical distributors
10. Channels: Results
Pivot: Entry barriers are key
Monomer
manufacturer
Distributor
High entry barriers Polymer Surfactant Low entry barriers
formulator formulator
(Petro-based is (Market pull for green
hard to dislodge.) Distributor products)
Polymer Surfactant
user user
“Petro industry
Consumer facing
wishes that you
company
guys did not
exist!”
- Draths
Consumer
11. Channels: Iteration
Business Model Canvas 5.0
Problem - Non- Existing markets
renewable feedstock •Polymer
manufacturers
Solution – Bio-
based, sustainable •Biotech companies
replacement
•Regional supply of Customer in value
surfactant raw- chain
material Formulator
• Avoidance of single companies
material sourcing
(petro)
• Green Existing market
•Physical product sectors
Features - Bi- •Indirect channel •Surfactants
functional, customiz •Wholesale
able Distributors •Home & Personal
• „Drop-in‟ monomers Care sector
Customer Relationship Hypothesis: Co-create value proposition
Tests: Talked to surfactant/lubricant companies
12. Customer Relationships: Experiments
Here’s what we did…
Surfactants (4) Lubricants (4)
Business Marketing Leader
Research Scientist Technical Director
Senior Scientist
Catalyst Research
Principal Scientist Engineer
Director, R&D Tribology Section Leader
Other bio-based companies (6)
Biobased Chemicals Analyst
President, Personal Care
Program Manager
Vice-President, R&D
Senior Scientist, R&D Global Head, R&D
13. Customer Relationships: Results
Here’s what we found…
Monomer
manufacturer
Distributor
Surfactant users influence
Surfactant surfactant formulator
formulator decisions, so need to
partner with surfactant users
Surfactant first!
user
Decision Green Panel – Focus on
Makers
reducing petroleum based
Consumer facing products
company
Consumer
Market Pull
(Sustainability
agenda)
14. Customer Relationships: Iteration
Business Model Canvas 6.0
Problem - Non- •Co-create value
renewable feedstock proposition
Solution – Bio- • Customer goodwill Customer in value
based, sustainable and trust chain
replacement • Customer Formulator
•Regional supply of communities companies
surfactant raw- •Trade-shows, PR
material •Conferences, surve
• Avoidance of single ys Existing market
material sourcing
sectors
(petro)
•Surfactants
• Green
•High-performance
•Lubricants
Features - Bi-
•Home & Personal
functional,
Care sector
customizable
• „Drop-in‟ monomers
Revenue Model Hypothesis: Value-based pricing, licensing
Tests: 1. Developed a product sheet
2. Talked to 7 surfactant companies
3. Talked to 6 production economics experts
17. Revenue model: Result 2
Scale up is the key
Less than 100 c/lb is achievable
Optimized scale up (~500,000 lb/day)
“You give us
1kg, we can
evaluate.”
Earlyvangelists
18. Revenue Model: Iteration
Business Model Canvas 7.0
•Production,
yield, quality
- Cheapest bio-mass
•Match customer‟s
suppliers
product specs
• Constant
- Contractual scale-
innovation
up
-Technology
providers
-Utility providers
- Surfactant Users
(P&G)
•Sell bio-based monomers
Partners Hypothesis: Bio-mass suppliers, scale-up, technology
• Added value pricing based on customization of
providers, utility providers, surfactant users products
•Create demand by partnering with Surfactant
Tests: Talked to potential partners Users and then sell to Formulators
• Licensing
19. Partners: Hypothesis
Here’s what we hypothesized…
Market Biomass
Research supplier
Partners Monomer
Start-up manufacturers
Incubators
Distributor
Scale-up Surfactant
providers formulator
Surfactant
Technology
Decision user
partners
Makers
Consumer facing
company
Consumer
20. Partners: Experiments
Here’s what we did…
Market Start-up Scale-up Technology
Research (3) Incubators (4) providers (4) partners (3)
21. Partners: Iterate
Business Model Canvas 8.0
-Market Research
Agencies
- Start-up incubators
Cheapest bio-mass
suppliers
- Contractual scale-
up
-Technology
providers
-Utility providers
- Surfactant Users
(P&G)
What’s next?
State funding (i6 grant)
Federal funding (SBIR)
26. Business Model Canvas 1.0
•Co-create
•Production, yi value proposition
eld, quality Problem - Non- • Customer •Existing
•Match renewable goodwill and market Polymer
- Bio-mass
customer‟s feedstock for trust manufacturers,
suppliers
product specs making polymer • Customer Biotech
Solution communities companies,
- Contractual
(Product) – Bio-
scale-up
based and • New market -
sustainable Novel bio-plastic
-Technology • Manufacturing replacement companies?
providers facility Features - Bi- •Physical
•IP functional and product • Multi-sided
-Utility providers • Human customizable •Indirect channel market?
resources, capit •Wholesale
al
• Sell bio-based monomers
•Fixed – Capital • Added value pricing based on
•Variable – Manufacturing, Bio-mass customization of products
• Licensing?
27. Business Model Canvas 2.0
Problem - Non- •Co-create
•Production, yi value proposition •Existing
renewable
eld, quality • Customer market Polymer
feedstock for
•Match goodwill and manufacturers,
- Bio-mass making polymer
customer‟s trust Biotech
suppliers Solution
• Customer companies,
product specs (Product) – Bio-
communities Surfactant
- Contractual based and
manufacturers
scale-up sustainable
• Manufacturing replacement
• New market -
-Technology facility Features - Bi-
Novel bio-plastic
providers •IP functional and •Physical companies?
• Human customizable product
-Utility providers resources, • ‘Drop-in’ •Indirect channel • Multi-sided
capital monomers •Wholesale market?
•SRI (Market • Diacids
Info)
• Sell bio-based monomers
•Fixed – Capital • Added value pricing based on
•Variable – Manufacturing, Bio-mass customization of products
• Licensing?
28. Business Model Canvas 3.0
Problem - Non-
renewable •Co-create
•Production, feedstock value proposition •Existing
yield, quality Solution – Bio- • Customer market Polymer
- Bio-mass •Match based, sustainable goodwill and manufacturers,
suppliers customer‟s replacement trust Biotech
product specs Features - Bi- • Customer companies,
- Contractual functional, customi communities Surfactant
scale-up zable manufacturers
• Manufacturing • „Drop-in‟
-Technology facility monomers • New market -
providers •IP • Diacids (chain •Physical Novel bio-plastic
• Human length: C10-C16) product companies?
-Utility providers resources, •New •Indirect channel
capital functionalities •Wholesale • Multi-sided
•SRI (Market (cyanide, amine) market?
Info)
•State funding, SBIR funding
•Sell bio-based monomers
•Fixed – Capital
• Added value pricing based on
•Variable – Manufacturing, Bio-mass
customization of products
• Licensing
29. Business Model Canvas 4.0
Problem - Non-
renewable •Co-create •Existing market
•Production, feedstock value proposition Polymer
yield, quality Solution – Bio- • Customer manufacturers,
- Bio-mass •Match based, sustainable goodwill and Biotech
suppliers customer‟s replacement trust companies,
product specs Features - Bi- • Customer Surfactants,
- Contractual functional, communities Home &
scale-up customizable Personal Care
• Manufacturing • „Drop-in‟ sector
-Technology facility monomers
providers •IP • Diacids (chain •Physical • New market -
• Human length: C10-C16) product Novel bio-plastic
-Utility providers resources, capit •New •Indirect channel companies?
al functionalities •Wholesale
•SRI IHS (cyanide, amine) • Multi-sided
(Market Info) market?
•State funding, SBIR funding
•Sell bio-based monomers
•Fixed – Capital
• Added value pricing based on
•Variable – Manufacturing, Bio-mass
customization of products
• Licensing
30. Business Model Canvas 4.3
Problem - Non- Existing markets
renewable feedstock •Polymer
•Co-create value
manufacturers
•Production, yiel proposition
Solution – Bio-
d, quality • Customer
based, sustainable •Biotech companies
•Match customer‟s goodwill and trust
- Bio-mass suppliers replacement
product specs • Customer
•Local supply of Customer in value
communities
- Contractual scale- surfactant raw- chain
up material Formulator
• Avoidance of single companies
-Technology material sourcing
providers (petro)
• Manufacturing • Green Existing market
-Utility providers facility •Physical product sectors
•IP Features - Bi- •Indirect channel •Surfactants
• Human functional, •Wholesale
resources, capital customizable Distributors •Home & Personal
•IHS (Market Info) • „Drop-in‟ monomers Care sector
•Sell bio-based monomers
•Fixed – Capital • Added value pricing based on customization of
•Variable – Manufacturing, Bio-mass products
• Licensing
31. Business Model Canvas 5.0
Problem - Non- Existing markets
renewable feedstock •Polymer
•Co-create value
manufacturers
•Production, proposition
Solution – Bio-
yield, quality • Customer
based, sustainable •Biotech companies
•Match customer‟s goodwill and trust
- Bio-mass suppliers replacement
product specs • Customer
•Regional supply of Customer in value
communities
- Contractual scale- surfactant raw- chain
up material Formulator
• Avoidance of single companies
-Technology material sourcing
providers (petro)
• Manufacturing • Green Existing market
-Utility providers facility •Physical product sectors
•IP Features - Bi- •Indirect channel •Surfactants
• Human functional, customiz •Wholesale
resources, capital able Distributors •Home & Personal
•IHS (Market Info) • „Drop-in‟ monomers Care sector
•Sell bio-based monomers
•Fixed – Capital • Added value pricing based on customization of
•Variable – Manufacturing, Bio-mass products
• Licensing
32. Business Model Canvas 6.0
Problem - Non- •Co-create value
renewable feedstock proposition
Solution – Bio- • Customer goodwill
•Production, yiel Customer in value
based, sustainable and trust
d, quality chain
replacement • Customer
•Match customer‟s Formulator
- Bio-mass suppliers •Regional supply of communities
product specs companies
surfactant raw- •Trade-shows, PR
- Contractual scale- material •Conferences,
up • Avoidance of single surveys Existing market
material sourcing
sectors
-Technology (petro)
•Surfactants
providers • Green
• Manufacturing •High-performance
facility •Physical product •Lubricants
-Utility providers
•IP Features - Bi- •Indirect channel
• Human •Wholesale •Home & Personal
functional, customiz
resources, capital Distributors Care sector
able
•IHS (Market Info) • „Drop-in‟ monomers
•Sell bio-based monomers
•Fixed – Capital • Added value pricing based on customization of
•Variable – Manufacturing, Bio-mass products
• Licensing
33. Business Model Canvas 7.0
Problem - Non- •Co-create value
renewable feedstock proposition
•Production, yiel
Solution – Bio- • Customer goodwill
d, quality Customer in value
- Cheapest bio-mass based, sustainable and trust
•Match customer‟s chain
suppliers replacement • Customer
product specs Formulator
•Regional supply of communities
• Constant companies
- Contractual scale- surfactant raw- •Trade-shows, PR
innovation
up material •Conferences,
• Avoidance of single surveys Existing market
-Technology material sourcing
sectors
providers (petro)
•Surfactants
• Green
-Utility providers • Manufacturing •High-performance
facility •Physical product •Lubricants
- Surfactant Users •IP Features - Bi- •Indirect channel
• Human •Wholesale •Home & Personal
(P&G) functional, customiz
resources, capital Distributors Care sector
able
•IHS (Market Info) • „Drop-in‟ monomers
•Sell bio-based monomers
• Added value pricing based on customization of
•Fixed – Capital products
•Variable – Manufacturing, Bio-mass •Create demand by partnering with Surfactant
Users and then sell to Formulators
• Licensing
34. Business Model Canvas 8.0
Problem - Non- •Co-create value
-Market Research
renewable feedstock proposition
Agencies •Production, yiel
Solution – Bio- • Customer goodwill
d, quality Customer in value
based, sustainable and trust
- Start-up incubators •Match customer‟s chain
replacement • Customer
product specs Formulator
•Regional supply of communities
Cheapest bio-mass • Constant companies
surfactant raw- •Trade-shows, PR
suppliers innovation
material •Conferences, surve
• Avoidance of single ys
- Contractual scale- Existing market
material sourcing
up sectors
(petro)
•Surfactants
• Green
-Technology • Manufacturing •High-performance
providers facility •Physical product •Lubricants
•IP Features - Bi- •Indirect channel
-Utility providers • Human •Wholesale •Home & Personal
functional,
resources, capital Distributors Care sector
customizable
- Surfactant Users •IHS (Market Info) • „Drop-in‟ monomers
(P&G)
•Sell bio-based monomers
•Fixed – Capital •Create demand by partnering with Surfactant
•Variable – Manufacturing, Bio-mass Users and then sell to Formulators
• Licensing
Editor's Notes
Then I will say that until now, we had been focusing on Tech Development and Integrated Bio/Chem companies like DSM, Elevance, Solazyme. After talking to some of these companies, we realized that we need to shift our focus!
CS - We hope to determine that if our product/value proposition matches their needs.
This week’s changes are highlighted in dark blue (IHS instead of SRI, and home and personal care sector also added).
Main entry barriersCostPerformance as compared to existing surfactantsScout new technology viaInternet searchingNetworkingTrade magazines