Uploaded byIn Search Of A Cofounder
Cutbots Presentation
The document is a proposal for a startup idea involving a new software and hardware solution for paper cutting machines that circumvents expensive cartridge costs through an iTunes-style subscription model. It identifies a significant market opportunity in the hobbyist sector and discusses potential revenue streams while addressing challenges such as customer convenience and competition. The author is seeking a co-founder with relevant experience to help develop and market the product.
Cutbots Presentation
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- 3. Problem Most paper cuEng machines are Fed to expensive physical media. If you want to cut out a new font or clip art you need to spend $89.99 to buy that cartridge. It is like having to buy an album even if you just want a song. No one should have to pay $89.99 to use Comic Sans $499.99 $89.99 Solu?on Create an iTunes style opFon for paper cuEng machines. Turn expensive cuEng cartridges into digital media like iTunes did for music. Introduce ala carte pricing, beOer hardware, broader selecFon, and a superior user interface.
- 4. Opportunity Cutbots can private label a paper cuKer and create soIware that provides more op?ons for less cost with a superior user interface. • Create soPware to drive cuEng machines • Increase choices for customers • Provide customizaFon tools • Introduce pricing flexibility Market Opportunity • Hobby market = $31B market (hOp://bit.ly/ZiMIg) • Scrapbooking is a $2.5B sub‐segment (hOp://bit.ly/3umGnb) • Paper cuOers worth ~$500MM • Hundreds of millions in opportunity in adjacent markets
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- 7. Product Offering Hardware OEM manufacturers will allow us to brand a paper cuOer with the “CutBots” name. With high enough volumes you could also customize the hardware funcFonality. Web Service Provide a web site that can replace paper cuOer funcFonality in easy to use format. Key Features • Provide catalog of 1000’s of designs • Design tools to modify designs • Share designs with friends Pricing Approach – One approach to pricing Fairly simple business model. Large, established customer base willing to pay for data. $89 $25 $1‐2 500 Images 100 Images 1 Images Unlimited Fonts Unlimited Fonts Limited Fonts The price of 1 exisFng cartridge which Typical price of a giP card Reasonable micro transacFon price holds 20‐40 images
- 8. How it Works: Part 1 Requires No Partnerships Website 1. Design on Website 2. Web files converted 4. Data transmiOed to to cuOer files cuOer via SD 4a. Data transmiOed 3. Driver prepares for to cuOer via computer
- 9. How it Works: Part 2 Requires Hardware Partnership Website 1. Design on Website 2. Web files converted 4. Data transmiOed to to cuOer files cuOer via iPhone app 5. Data transmiOed to 3. Driver prepares for cuOer via computer
- 10. Revenue Potential Sell a customer a cuKer for $300 & $89 “data plan”: $59.8MM Net $150/cuKer + $89/data 250,000 $23.9MM Customers 1,00000 $11.95M Customers 50,000 $2.39MM Customers 10,000 $239K Customers 1,000 Customers These numbers assume we are able to capture ~25% of the exis?ng paper cuKer market. Addi?onal revenue could be gained by broadening product offerings, increasing “share of wallet” with exis?ng customers, etc.
- 11. Risks Opportuni?es Partnership with hardware company Develop plaeorm for other devices User experience can be improved/revenue CNC embroidering machines, lasers, CNC mills, generated with no partnership. and other custom manufacturing devices Compe?ng with a major brand Appeal to wider demographics Target customers aren’t super tech savvy, will Appeal to “make:rs” and “craP:ers” with require major markeFng efforts different aestheFc sensibiliFes Market may be saturated Shrink a market ProvoCraP has been expanding poroolio. We’ll be Replacing expensive hardware with efficient locked out from exisFng plaoorm unless we can soPware hack or partner with ProvoCraP. Expand Selec?on May be too complex for customers Can easily add new designs, significantly increase ExisFng products thrive based on plug and play opFons for customers simplicity. Computers/iPods increase flexibility at Capture Greater Margins the price of complexity No manufacturing cost, no split with retailers Create new product categories Paper craP toys, silkscreen preparaFon, etc. Build Design Tools for hobbyists Major gaps exist between pro level Adobe soPware and free tools like SketchUp
- 12. Team Me – Co‐Founder • Product Design and management experience in consumer technology business. • Employee #17 at startup • Full product ownership from concepFon to markeFng • Author of popular blog on mass customizaFon ? You – Co‐Founder • Designed, Engineered, Shipped Consumer facing soPware (& personal projects) • Front end UI development experience • Interest in graphics or aestheFcs • Worked in a startup environment ? You – Co‐Founder • Designed, Engineered, Shipped Consumer facing soPware (& personal projects) • Experience with eCommerce back end systems • Interest in business • Worked in a startup environment