1. Pesticide.ID is the Yelp of
food safety
Mentor Engagements
Total: 6
Customer Interviews
Total: 105
Alex Luce Mahara Inglis Jenn Kimbal Anthony
Baldor
An exciting up
and down game
for graduate students!
LAUNCHPADS
2. Our Journey – Table of Contents
Consumers
Retailers
“Manufacturing” and
Distribution
Organic
Certifiers
New Parents
START FINISH
3. Phase I: Consumers
Week: 1-2
Interviews: 30
Target Interviews:
Health conscious
Worried well
Phase summary
Value prop
Customers want peace of
mind regarding food quality
Customer segments
Whole foodies
“Yes- consumers need more transparency and
deserve to know what's in their food”
“Yes.. I’d definitely be interested in
something like that”
Some good….
“No - I’d want the store to do it”
“No, - I trust the labels”
Some bad….
Customers want an
affordable way to test their
food for contaminants
4. • The existing system is good enough:
• Consumers trust grocers
• grocers trust wholesale / regional distribution
• Someone else’s problem
• People want quality, not “purity”
4
Grocer
Farmer’s Market
Regional
Distribution
Produce
Wholesaler
Farm
SMB Food
Business
Consumer
Phase 2: Retailers
Week: 3
Interviews: 14
Destination:
Grocery Stores
Target Interviews:
Produce buyers
Produce section
managers
Phase summary
5. Phase 3: Up the food chain – “Tulare or bust”
Week: 4-6
Interviews: 30+
Destination:
World Ag Expo,
Tulare, CA
Target Interviews:
Farmers
Distributors
Suppliers
Pesticide Mfgrs
Organic Certs
Phase summary
0 500 1000
Existing test costs
New Pesticide ID test
costs
Test Kit
Labor
Cost (USD)
Pesticide ID is significantly cheaper than existing
tests
BUT,
1) small TAM
2) need to replace incumbent technology
3) pesticide mfc’s do their own internal testing
6. USDA
Pesticide Residue Testing Workflow
Sets rules, guidance.
Accredits organizations
to provide certification
CCOP/FSC/OM
RI
Organic Certifier
OMEC
Independent Lab authorized by
USDA to perform tests.
Authorization
Food Sample
+$700
$
$
Organic Farms
Payment for
certification
subject to spot
testing
Key Flows
Food
Money
Information
$
7. Phase 4: Food Safety Market: Select Opportunities
Week: 6
Interviews: 22
Destination:
Santa Cruz
Washington DC
Target Interviews:
International food
processors
Global food
processors (Del
Monte)
Marijuana
Dispensaries
Marijuana testing
companies
Phase summary
Our potential opportunities:
1. International food aggregators
2. Chinese consumers
3. Legal marijuana
4. Allergies
5. Resegment consumer market
Start here with new parents
Go
Bears
!
8. Phase 5: Focus on Parents and Pivot
Week: 8
Interviews: 12
Destination:
None
Target Interviews:
New moms
New Mom networks
etc.
Pediatricians, nurses,
midwives
Doulas
Phase summary
“I don’t want the strips but if I could have the
information on my phone…now that would be great”
– Anna, Expectant Mother
“This is not market ready” – Pesticide ID team
New mothers are highly
connected and get
information from 4 sources
9. The Journey Continues…
tweet us @Pesticide.ID using #pesticides!
• Changes in regulatory environment
Food safety modernization act, rule 6
• Black swan (random) event
• e.g. large scale event highlights foibles of current food safety system
• Other factor that causes mass change in consumer interest in food safety
Test, test, test validate our business model through a series of tests:
• Launch MVP of Pesticide ID website
• Gain traction via social media
• Physically test products to determine actual need for improved food
safety monitoring
What is needed for Pesticide ID to take off ?
Our investment thesis requires:
…but in the meantime we’ll...
LINK!
10. The Journey Continues…
Time
(months)
Today 3 months 6 months 9 months 12 months
Customer
research
Develop
product
Early prototype
development
Refine prototype
Customer interviews on
new business model
Uptake/feedback from
social media
Demand
generation
Create original content on food safety on pesticideID.com
Identify and recruit early evangelists
Identify key food safety advocacy partners
MVP of Pesticide ID website
13. □
Customer Characteristics
Leader of Planned
Parenthood’s Pajaro Valley
Health Action Team in central
California
She is tertiary educated and
highly informed on issues
pertaining to food and safety
Currently works with farmers,
regulators, activists to create
policy to reduce negative
aspects of pesticide exposure
Information Sources
1. Medical professionals –
pediatrician, nutritionist
2. Web – Google,
Wholesome baby food
3. Other mothers – coffee
groups or apps
4. Non-medical - Doulas
13
Crusaders Customer Archetype
Customer Lifecycle (food concerns)
Birth
Pregnancy
No soft cheese, fish,
deli meats, smoking,
alcohol.
Concerns: heavy
metals, pesticides.
Breastfeeding
Concerns: heavy
metals, pesticides
in mother’s diet.
Early Eating
Concerns:
contaminants,
heavy metals,
pesticides in
child’s diet.
Key Insights
Each group of new
mothers has 1-2 crusaders
who are passionate and
highly concerned about
everything related to their
baby
Traci Townsend
14. □
Customer Characteristics
Sarah is an educated,
upper middle class, 31 year
old new mother.
She has a 3 month old
daughter she is
breastfeeding and is
concerned about any
contaminants in her food
that may be passed onto
her child.
Information Sources
1. Medical professionals –
pediatrician, nutritionist
2. Web – Google,
Wholesome baby food
3. Other mothers – coffee
groups or apps
4. Non-medical - Doulas
14
New Parents Customer Archetype
Customer Lifecycle (food concerns)
Birth
Pregnancy
No soft cheese, fish,
deli meats, smoking,
alcohol.
Concerns: heavy
metals, pesticides.
Breastfeeding
Concerns: heavy
metals, pesticides
in mother’s diet.
Early Eating
Concerns:
contaminants,
heavy metals,
pesticides in
child’s diet.
Key Insights
Not all mothers are as
concerned as one another.
Some are fairly trusting of the
current food labelling
Many begin buying organic
to be ‘healthier’ but would
like to stop if it offers no
benefit.
There can be significant
pressure between mothers
15. Diagram of Payment Flows
Strip Manufacturers Customer
UC Davis
Freemium
Paid
40% conversion
Premium Product - Subscription price per month $4.95
Churn rate 10%
Base to Premium Upsell rate 40%
Customer LTV $17.82
license fees
16. 16
Value Proposition Canvas
Provision of
information
Easy access
App for
information
Strips for
testing
Easier access
to information
Peace of mind
about food
Improves well-
being of
children
Fast access to
data
Expensive
testing
Simplicity
Not appearing
to care for child
Takes too long
Raise a
healthy child
Balance
multiple
priorities
19. Establish long-term legitimacy
• SBIR/STTR with UC Davis
• Publication in scientific literature
Internal validation testing of UC
Davis technology:
• Screen local produce
• Get coverage in local newspaper,
tech blogs
2015
• Contract Manufacturing Run
• 1000 units
Costs
20142013
Patent filing
Pesticide
Detection:
Methyl
Iodide,
Bromide
Tech ID:
23321 / UC
Case 2013-
757-0
• Exclusive
License
• Additional
Enabling Tech
License
Resources and development timeline
Establish legitimacy:
• Start food safety blog to
educate young mothers
• Start objective marketing and
distribution effort based on
reviews/consumer reports
Revenue:
ANP Marketing/Distribution
Blog advertising revenue
Blogger
Manufacturing
Testing
Viral blog &
FB coverage
• Large Manufacturing Run
STTR grant with UC Davis
Blog/marketing
Academic
acceptance
and support of
KOLs
Lean
Launchpad
Ends
Big sales and distribution push
• Subsidize evangelists
• Roll out database subscription
product
• Partnership distribution with baby
boxes
• FB/Google Adwords campaigns
• Baby storefront sales reps
Steve Blank-
leads Seed
Round
Strategic exit to
perinatal
consumer
products
conglomerate
2016 2017
Strip giveaways
Advertising/Sales reps
App subscriptions
Product sales
Grant writing
Manufacturing II
20. Phase 2: Retailers
• The existing system is good enough
• Someone else’s problem
• People want quality, not “purity”
• One week of interviews?
1.Consumers
• Whole Foodies
• New Parents
1.Grocer
• Yasai Produce
• Monterey Mkt
4.Food Entrps and
SMB owners
• Amy’s
• Annie’s
• 18 Rabbits
5.Distributors
• Veritable
vegetables
22. SBIR
Opportunities
NIH FDA
USDA Food Science and Nutrition
food-borne pathogens
Food preservation
Nutrition awareness/ obesity
prevention
Affordable food to combat
obesity
HHS (Health and
Human Services)
National Institute on Allergies
and Infectious Disease
Center for Food Safety and
Applied Nutrition (CFSAN)
Support FDA Regulation
Reduce foodborne illness,
toxins, etc.
detection, prevention, and
control of contamination
Center for Global Health
(CGH)
Colorimetric assay to measure
insecticides
National
Science
Foundation
ET1- Environmental
Monitoring and Mitigation
Sensors/methods to reduce
use of pesticides
EI – Electronics, Informatics,
and Communication
Technologies, environmental
Sensors
SBIR Landscape
Phase 1
up to $150k for 6 mo.
Phase 2
up to $2M for 2 years
Phase 3
lab->market
STTR
Up to $200k for 9 mo.
need academic research
partner