- The document describes notes from interviews over 5 days exploring a potential probiotic supplement business model. - Initially focusing on a single market approach, the discussions evolved to consider multiple potential customer segments including consumers, food/beverage companies, and research organizations. - Key challenges identified included high costs for product development, clinical trials and regulatory compliance needed before partnerships or sales.

1. Total interviews: 45
Probiotic Weight Management Supplement
Demi Ajayi Rahim Bamba Samer Choumar Mona Jaber

2. Here’s what we thought…
Day 1
Concept Patentable technology using genetically-enhanced probiotics (“good bacteria”)
Genesis to aid in burning calories stored in fats in your diet
1 Probiotics are generally appealing to food & beverage manufacturers and the health
conscious end user
2 We are on to something…
• Currently no probiotic product exists under weight loss or weight management
• Wide array of probiotic products are marketed under “aiding healthy digestion”
3 The initial idea was that we could generate revenue from royalty and licensing fees
• Food & beverage manufacturing companies would be interested in partnering
with us in order to access our proprietary technology
• When and if we get our technology patented, we are off for an easy ride!
4 Since the product is being developed out of a low-budget launch pad, costs should
not be a major roadblock
2

3. The Business Model Canvas: figuring out who our customers are…
Day 1
• Dairy companies • Establish IP • “Good” bacteria • Co-creation • Niche market
Infrastructure
• Research institutes • No chemicals • Personal assistance
• Marketing
• Animal research labs • Body probiotic
• R&D booster
• University research
labs • Consulting • Calorie burner vs
appetite suppressant
• Patent • Licensing
• R&D grants/funding • Sales force
• Technical / scientific
expertise
• Marketing • R&D • Licensing fees • Consulting fees
• IP procurement / patent • Employees • Share of profit margin
3

4. The Business Model Canvas: toward a multi-market approach…
Day 2
• Dairy companies • Establish IP End user (B2C) End users (B2C) • Niche market
Infrastructure
• Cold beverages & • “Good” bacteria • Personal assistance End users (B2C)
drinks companies • Marketing
• No chemicals • Educational outreach • Adults 25-50 yrs old
• Research institutes • R&D
• Body probiotic booster • Self-service • Middle class and up
• Animal research labs • Consulting
• Calorie burner vs F&B companies (B2B) • Health conscious &
• University research appetite suppressant actively managing
• Co-creation
labs weight
F&B companies (B2B)
• Bio-tech research F&B companies (B2B)
• Expanded product line
institutes
in untapped market • Cold beverages &
drinks
• Access to proprietary End users (B2C)
• Patent technology • Dairy products
• Direct sales
• R&D grants / funding
F&B companies (B2B)
• Technical / scientific
expertise • Licensing
• Sales force
• Marketing • Employees F&B companies (B2B) • Consulting fees
• IP procurement / patent • Outsourcing /manufacturing • Licensing fees End users (B2C)
costs
• R&D • Royalty • Wholesale/retail
4

5. The Business Model Canvas: significant additions…
Day 3
• Dairy companies • Establish IP End user (B2C) End users (B2C) • Niche market
Infrastructure
• Cold beverages & • “Good” bacteria • Personal assistance End users (B2C)
drinks companies • Marketing
• No chemicals • Educational outreach • Adults 25-50 yrs old
• Protein bars • R&D
• Body probiotic booster • Self-service • Middle class and up
companies
• Consulting
• Calorie burner vs F&B companies (B2B) • Health conscious &
• Research institutes
appetite suppressant actively managing
• Co-creation
• Animal research labs weight
• Probiotics for weight
• University research management as F&B companies (B2B)
labs opposed to “aiding
• Cold beverages &
digestion”
• Bio-tech research drinks
End users (B2C)
institutes • Patent F&B companies (B2B)
• Dairy products
• Direct sales
• Established clinical • R&D grants / funding • Expanded product line
• Protein / energy bars
test labs in untapped market F&B companies (B2B)
• Technical / scientific • Refrigerated food
• Recognized retailers expertise • Access to proprietary • Licensing
(eg. GNC) technology • Sales force
• Marketing • Employees F&B companies (B2B) End users (B2C)
• IP procurement / patent • Outsourcing / manufacturing costs • Licensing / royalty fees • Wholesale / retail
• R&D • Clinical / lab tests • Consulting fees
5

6. The Business Model Canvas: more changes…
Day 4
• Dairy companies • Establish IP End user (B2C) End users (B2C) • Niche market
Infrastructure
• Cold beverages & • “Good” bacteria • Personal assistance End users (B2C)
drinks companies • Marketing
• No chemicals • Educational outreach • Adults 25-50 yrs old
• Protein bars • R&D
• Body probiotic booster • Self-service • Middle class and up
companies
• Consulting F&B companies (B2B)
• Calorie burner vs • Health conscious &
• Research institutes
• Establishing partner appetite suppressant • Co-creation actively managing
• Animal research labs relationships weight
• Probiotics for weight • White labeling
• University research management as F&B companies (B2B)
labs opposed to “aiding
• Cold beverages &
digestion”
• Bio-tech research drinks
End users (B2C)
institutes • Patent F&B companies (B2B)
• Dairy products
• Direct sales
• Recognized retailers • R&D grants / funding • Expanded product line
• Protein / energy bars
(eg. GNC) in untapped market F&B companies (B2B)
• Technical / scientific • Refrigerated food
expertise • Access to proprietary • Licensing
technology • Sales force
• Marketing • Employees F&B companies (B2B) End users (B2C)
• IP procurement / patent • Sales force • Licensing / royalty fees • Wholesale / retail
• R&D • Outsourcing / manufacturing costs • Consulting fees
6

7. Here’s what we learned…
Days 1-4
1 Probiotics are indeed very popular at the moment
• Probiotics are being consumed as dietary supplement capsules
• The probiotic industry experienced double digit growth over the past few years
2 Inline with what we originally thought, there exists an opportunity to generate revenue from
licensing and royalty fees
• There are no relevant patents surrounding our designer probiotics technology (no known
patents for keyword: "designer probiotics weight loss“)
• Several players in the F&B industry expressed interest in using our technology subject to
meeting rigorous clinical tests from established labs, however…
3 Contrary to what we initially thought, we were not off for an easy ride: costs are a major obstacle
for a small-startup with limited resources operating in this space
• Depending on intended use (drug vs dietary supplement), regulatory requirements differ
greatly. For dietary supplements, premarketing demonstration of safety and efficacy and
approval by the FDA are not required; only premarket notification is required
• Product development and clinical trials are necessary stages before product makes it to our
partners’ consideration set and manufacturers ask that we meet Global Standards for
Evaluation of Probiotics1
1. This includes the following tests: 1) Testing to ID strain of bacteria (~$100 outsourced), 2) Shelf-life stability ($2k-4k outsourced), 3) In vitro testing to delineate mechanism
of probiotic affect, 4) Human trials 7

8. Evolution and devolution of a business model
Days 1-5
Day 1
The Business Model Canvas: figuring out who our customers are…
Day 1
From a single 1 2 3 • Dairy companies • Establish IP • “Good” bacteria • Co-creation • Niche market
Infrastructure
• Research institutes • No chemicals • Personal assistance
market
• Marketing
Incorporate Secure License
• Animal research labs • Body probiotic
• R&D booster
• University research
labs • Consulting • Calorie burner vs
appetite suppressant
approach… company patent technology • Patent
• R&D grants/funding
• Technical / scientific
• Licensing
• Sales force
expertise
• Marketing • R&D • Licensing fees • Consulting fees
• IP procurement / patent • Employees • Share of profit margin
3
Days 2-4 The Business Model Canvas: toward a multi-market approach…
Day 2
• Dairy companies • Establish IP End user (B2C) End users (B2C) • Niche market
Infrastructure
• Cold beverages & • “Good” bacteria • Personal assistance End users (B2C)
drinks companies • Marketing
• No chemicals • Educational outreach • Adults 25-50 yrs old
• Research institutes • R&D
• Body probiotic booster • Self-service • Middle class and up
• Animal research labs • Consulting
• Calorie burner vs F&B companies (B2B) • Health conscious &
• University research appetite suppressant actively managing
• Co-creation
labs weight
F&B companies (B2B)
n
• Bio-tech research F&B companies (B2B)
• Expanded product line
institutes
in untapped market • Cold beverages &
drinks
• Access to proprietary End users (B2C)
• Patent technology • Dairy products
• Direct sales
• R&D grants / funding
4
F&B companies (B2B)
• Technical / scientific
1 2 3
expertise • Licensing
Sales & Real estate The Business Model Canvas: more changes…
Day 4
• Sales force
Product • Marketing • Employees F&B companies (B2B) • Consulting fees
costs
• IP procurement / patent • Outsourcing /manufacturing • Licensing fees End users (B2C)
costs
Text
• R&D • Royalty • Wholesale/retail
• Dairy companies • Establish IP • Niche market
marketing
End user (B2C) End users (B2C)
Infrastructure
• Cold beverages & • “Good” bacteria • Personal assistance 4 End users (B2C)
development
drinks companies • Marketing
• No chemicals • Educational outreach • Adults 25-50 yrs old
• Protein bars • R&D
• Body probiotic booster • Self-service • Middle class and up
companies
• Consulting F&B companies (B2B)
• Calorie burner vs • Health conscious &
Incorporate
• Research institutes
• Establishing partner appetite suppressant • Co-creation actively managing
• Animal research labs relationships weight
• Probiotics for weight • White labeling
• University research management as F&B companies (B2B)
Secure patent Operating costs
labs opposed to “aiding
• Cold beverages &
digestion”
• Bio-tech research drinks
End users (B2C)
institutes
Manufacturing
• Patent F&B companies (B2B)
• Dairy products
company
• Direct sales
• Recognized retailers • R&D grants / funding • Expanded product line
• Protein / energy bars
(eg. GNC) in untapped market F&B companies (B2B)
• Technical / scientific • Refrigerated food
expertise • Access to proprietary • Licensing
License
technology
The Business Model Canvas: significant additions…
• Sales force
Day 3
• Marketing • Employees F&B companies (B2B) End users (B2C)
technology Distribution Management • IP procurement / patent
• R&D
• Sales force
• Outsourcing / manufacturing costs
• Dairy companies
• Cold beverages &
drinks companies
• Establish IP
Infrastructure
• Marketing
• Licensing / royalty fees
• Consulting fees
End user (B2C)
• “Good” bacteria
• No chemicals
• Wholesale / retail
End users (B2C)
• Personal assistance 6
• Educational outreach
• Niche market
End users (B2C)
• Adults 25-50 yrs old
overhead
• Protein bars • R&D
• Body probiotic booster • Self-service • Middle class and up
companies
• Consulting
• Calorie burner vs F&B companies (B2B) • Health conscious &
• Research institutes
appetite suppressant actively managing
• Co-creation
• Animal research labs weight
• Probiotics for weight
• University research management as F&B companies (B2B)
labs opposed to “aiding
• Cold beverages &
digestion”
… to a multi-
• Bio-tech research drinks
End users (B2C)
institutes • Patent F&B companies (B2B)
• Dairy products
• Direct sales
• Established clinical • R&D grants / funding • Expanded product line
• Protein / energy bars
test labs in untapped market F&B companies (B2B)
• Technical / scientific • Refrigerated food
• Recognized retailers expertise • Access to proprietary • Licensing
(eg. GNC) technology • Sales force
market approach • Marketing
• IP procurement / patent
• Employees
• Outsourcing / manufacturing costs
F&B companies (B2B)
• Licensing / royalty fees
End users (B2C)
• Wholesale / retail
• R&D • Clinical / lab tests • Consulting fees
5
Day 5
The Business Model Canvas: Here’s were we ended (back to square one?)…
And back to a 1 2 3 4 Day 5
• Dairy companies • Establish IP F&B companies (B2B) End users (B2C) • Niche market
single market Incorporate Secure Establish lab License
Infrastructure
• Cold beverages & • Expanded product line • Personal assistance End users (B2C)
drinks companies • Marketing in untapped market
• Educational outreach • Adults 25-50 yrs old
• Protein bars companies • R&D • Access to proprietary
• Self-service • Middle class and up
technology
• Research institutes • Consulting F&B companies (B2B) • Health conscious &
• Calorie burner as
• Animal research labs • Establishing partner • Co-creation actively managing
opposed to existing
relationships weight
approach.
• University research labs appetite suppressant / • White labeling
• Bio-tech research digestive aid F&B companies (B2B)
company patent tests technology
institutes • MVP: Patented • Beverages & drinks
• Recognized retailers • Patent Probiotic meeting • Dairy products
End users (B2C)
(eg. GNC) Manufacture
• R&D grants / funding • Direct sales • Protein / energy bars
Requirements
• Established clinical test • Technical / scientific • Refrigerated food
labs expertise F&B companies (B2B)
• Customer Archetype:
• GenSpace • Licensing
• Univeristies/Research Manufacturers with
Collaborator: BioFortis • Steve Blank! • Sales force probiotics products
• Sales & Marketing • Employees F&B companies (B2B) End users (B2C)
• IP procurement / patent • Outsourcing / manufacturing costs • Licensing / royalty fees • Wholesale / retail
• R&D • Clinical test labs costs • Consulting fees
9
8

9. The Business Model Canvas: Here’s were we ended (back to square one?)…
Day 5
• Dairy companies • Establish IP F&B companies (B2B) End users (B2C) • Niche market
Infrastructure
• Cold beverages & • Expanded product line • Personal assistance End users (B2C)
drinks companies • Marketing in untapped market
• Educational outreach • Adults 25-50 yrs old
• Protein bars companies • R&D • Access to proprietary
• Self-service • Middle class and up
technology
• Research institutes • Consulting F&B companies (B2B) • Health conscious &
• Calorie burner as
• Animal research labs • Establishing partner • Co-creation actively managing
opposed to existing
relationships weight
• University research labs appetite suppressant / • White labeling
• Bio-tech research digestive aid F&B companies (B2B)
institutes • MVP: Patented • Beverages & drinks
• Recognized retailers • Patent Probiotic meeting • Dairy products
End users (B2C)
(eg. GNC) Manufacture
• R&D grants / funding • Direct sales • Protein / energy bars
Requirements
• Established clinical test • Technical / scientific • Refrigerated food
labs expertise F&B companies (B2B)
• Customer Archetype:
• GenSpace • Licensing
• Univeristies/Research Manufacturers with
Collaborator: BioFortis • Steve Blank! • Sales force probiotics products
• Sales & Marketing • Employees F&B companies (B2B) End users (B2C)
• IP procurement / patent • Outsourcing / manufacturing costs • Licensing / royalty fees • Wholesale / retail
• R&D • Clinical test labs costs • Consulting fees
9

10. Here’s what we are going to do next…
Days 6 onward
1 Continue with technology development and establishing IP infrastructure
• This will require seed financing ~$50K
• Hence a subset of this activity will involve raising capital for legal fees etc
2 Establish relationships with key strategic customers
• Identify and establish contacts with partners of interest
• Gauge interest for technology and seek continued input on process and product enhancement
3 Seek recognition in thought leadership space (health magazines, medicine journals, tec)
• This has been cited as one critical success driver for bumping up royalty and licensing fees
• The more a particular brand is recognized, the more royalty $’s it can charge it licensed partners
(from as low as 1-4% to as high as 10%)
4 Continue with hypothesis testing
• Seek more interviews with industry experts (arranging these require significant lead time)
• Continue with market research activities to better understand the end users, their needs, and
their preferences
10