The document summarizes a roundtable discussion on high tech startups in wearable computing and augmented reality. Key points from the discussion include: 1) Wearable and augmented reality technologies are becoming increasingly important, driven by factors like the quantified self trend and advances in sensors, chips, and wireless connectivity. 2) Promising areas for startups include healthcare, manufacturing, government, and entertainment where wearables and AR can add real value by solving problems. 3) Consortia between industry, government, and tech communities will be important to develop supporting ecosystems. 4) Startups should focus on using these technologies to meaningfully change people's lives by solving fundamental problems.

1. HIGH TECH STARTUPS IN WEARABLE COMPUTING AND
AUGMENTED REALITY
Prof. Steven K. Feiner (PhD, Brown), Professor of CSc at Columbia University
Ekaterina Goissa, Consulting Engineer Manager at Cisco
Dmitry Gorilovsky, Founder of WoodenShark LLC, LightPack and TapTap
Valery Komissarova, Business Development Director at Grishin Robotics
Sergey Matveyev, Founder & CEO at Eligo Vision
Vadim Sukhomlinov, Strategic Business Development Director at Intel
Moderator: Vasily Ryzhonkov, Head of More than Moore Foresight at IT Cluster Skolkovo

3. WEARABLES & AR IS NO MORE A GIMMICK, BUT A REALITY.
These technologies open a window of opportunities for corporations and
startups… and can make our life better!
4 facts why WC and AR startups are important :
Fact #1. Obviously, 2014 is the year of wearables (from CES in Las Vegas till
Mobile World Congress in Barcelona, # of crowdfunding projects and products
by Samsung, Apple, Sony and others.
Fact#2. Internet of things is already transforming industries. The size of
market could be between 14 and 36 trln US dollars (Cisco, McKinsey)
Fact#3. AR is no more a gimmik
Fact#4. $1,6b have been invested by VCs in IoT & WC startups in 2013
(CBInsights, 2013)

4. HIGH-TECH STARTUPS IN WEARABLE COMPUTING (WC)
AND AUGMENTED REALITY (AR)
In the roundtable we will speak about:
• Technological and business trends in AR & WC
• Corporations’ views on these industries
• Startup’s cases and their stories
Main questions for the discussion are:
• What are the most promising areas for high tech startups in b2c and b2b
markets?
• Who will lead the WC and AR industries in tech and business aspects:
corporations or startups?

5. WEARABLE AND AR TECH – WHAT IS IT?
Augmented reality
“Live direct or indirect view of a physical, real-
world environment whose elements
are augmented (or supplemented) by computer-
generated sensory input such as sound, video,
graphics or GPS data. As a result, the technology
functions by enhancing one’s current perception of
reality.”
Wearable Computing VC in
2013
• $570M Raised 30+ startups
• The Internet of Things –
$752M Invested Across 112
Deals
Market potential - $12B+
industry by 2018 (Business
Insider)
AR Tech
Market Potential - $5+ industry
by 2016 (ABI Research)
Wearable computing
“Computer-powered devices or equipment that
can be worn by a user, and have the ability to
connect and communicate to a network, either
through embedded connectivity or via another
device (tablet, smartphone) using Wi-Fi,
Bluetooth or another technology, including
clothing, watches, glasses, shoes and similar
items.”

6. DISCUSSION
• What are the most promising areas for high tech startups in b2c and b2b
markets? Russia and World?
• Who will lead the WC and AR industries in tech and business aspects:
corporations or startups?

7. Internet of Things +
Mobile Computing
32B+
Units?*
This will be more than
just phones & tablets,
but also wearables and
every connectable thing
in the world
* - Source: IDC, ABI research; 2020 prediction
250+ mln units
of wearables in
fitness

8. FORCES DRIVING THE ADOPTION OF WEARABLE COMPUTING AND
AUGMENTED REALITY
• Quantified self and ubiquitous computing trend – we want to be connected 24x7 and desire more
information to help make decisions
• The proliferation of smartphones that have become out hub for information and provide alerts
about our daily activities.
• The potential of hands free computing can mean increased employee productivity
• Low cost, small, smarter sensors, chips and mobile capability is emerging that can be embedded
in small wearable devices and fabrics
• Advanced wireless networks and M2M communications (such as mobile networks for devices,
BT4, NFC)
• Rising healthcare and infrastructure costs that drive companies to fund wearables and IoT
solutions.
• New types of wireless enabled sensors that offer increased monitoring and performance feedback
of information we never thought we could track digitally

9. MAIN OUTCOMES FROM DISCUSSION
For Business
• Create consortiums between leading industry players, government institutions, tech communities –
ecosystem is a Key Success Factor
• Focus efforts on concepts/projects where real value could be added via WC and AR tech: healthcare,
industrial and advanced manufacturing, government, entertainment, urbanization, etc
• Adoption will be faster in industries where the pain is the most evident and the barriers are the lowest:
• Increasing healthcare costs are forcing companies to change paradigm towards predictive medicine. WC and AR
can take significant share here.
• Industrial companies constantly search ways for increasing productivity. Implementation in logistics, assembly, etc
are already in place. Last year example is partnership between Vuzix and SAP.
• Improvement of the life quality is the main trend leading towards adoption of millions of WC devices (fitness
trackers)
• Gaming industry and smartphone industries have developed ecosystem which can be used for new WC and AR
applications.

10. MAIN OUTCOMES FROM DISCUSSION
For Government and Government Innovation Agencies
• Define programs and problems on the governmental level that can be solved with the latest technologies
• Create special entrepreneurship support programs for WC and AR (hackathons, contests, conferences, working
groups, еtс.)
• Change regulations in order to lower barriers for wearable & AR tech adoption (healthcare, advanced
manufacturing, )
• Launch VC funds targeting specifically the WC and AR markets - new billion dollar opportunities in 5 – 10 years.
For Startups
• Aim to change a human life !
• Look for perspective niches and business models
• Capitalize on enabling technologies and aim to solve fundamental problems

11. HIGH TECH STARTUPS IN WEARABLE COMPUTING AND
AUGMENTED REALITY
Prof. Steven K. Feiner
Ekaterina Goissa
Dmitry Gorilovsky
Valery Komissarova
Sergey Matveyev
Vadim Sukhomlinov
IT cluster Skolkovo
http://it.sk.ru
Vasily Ryzhonkov
Head of More than Moore Foresight
Phone: +7 (916) 004 03 15
Email: vryzhonkov@sk.ru
For any further questions or additional material from the
round table contact Vasily Ryzhonkov.