Vantage Realized has developed a new caster wheel to improve safety and comfort for manual wheelchair users. They interviewed 88 people including wheelchair users, doctors, therapists, and industry professionals. They learned that while a product to increase mobility seemed desirable, users were concerned about price and lack of insurance reimbursement. Competitors in this market have struggled. Vantage Realized has pivoted to focus on developing a durable caster wheel that addresses users' primary concern of navigating bumps and cracks. They plan to partner with wheelchair manufacturers and medical equipment suppliers to bring the product to market.

1. Total Interviews: 88
Vantage Realized is building a wheelchair attachment that increases mobility and reduces joint damage
for manual wheelchair users.

2. JJ Tang
● Hustler
● Team Leader
● BS in Finance from ASU
Gordon Freirich
● Product Designer
● BS Mechanical Engineering
from ASU
● Automotive background
Kirt Kirtland
● Awesome Mentor
Kalan Kircher
● Hustler
● Program Manager at Abbott
Hematology R&D
● BS Biomedical Engineering
from Northwestern
Vrunda Rathod
● Hustler
● MS in Biological Science
Policy from Georgetown
● BS Biomedical Engineering
from USC

3. What we thought
Active manual
wheelchair users
Insurance always pays for
new wheelchair products
Our primary customers
are wheelchair users
Manual Wheelchair users would
pay for a nonelectric solution
Only long-term users are
interested in new products
We could sell through all
channels concurrently

4. 4 week and 37 total
interviews at pivot
Experiments
Industry
(6)
Doctors and Therapists
(10)
Wheelchair Users
(21)

5. What we learned:
Limited/no customer desire:
“Sounds like a great product, but it’s not for me”
“It’s out of my price range”
Market is difficult to penetrate and there is a lack of reimbursement:
Past/present competitors are failing:
Wijit
Nu-drive
Rio mobility pivot
Magic wheels

6. What we thought
Active manual
wheelchair users

7. The Pivot:
Wheelchair users
concerned about
bumps and cracks.
Wheelchair
Manufacturers
Durable Medical
Equipment
Suppliers
Online Retailers
Many users cited this as
their biggest challenge.
People want to buy online or
from a trusted store, not
from a salesman.

8. Vantage Realized has developed a caster wheel to improve safety and
comfort for manual wheelchair users

9. Caster Ecosystem
Information
Physical Goods
Money
$150
User
Production
Online
Retailers
User
Support
$75
Wheelchair
Manufacturers
Distribution
$45
CM
$6
Testing
Labs
$75
Vantage
Realized
PT’s &
OT’s
$150
DME
Advocacy
Groups

10. Financial/Operations Timeline
2014
Q2
Q3
Networking/Sales
Design Milestones
Cash Reserve
Q1
2015
Q4
Q1
Q2
Q3
Q4
Series A $1 MM
Proof of
concept
Patents
Filed
Functional
Prototype
Manufacturing
Prototype
Reliability Testing
Commercial Manufacturing
New Product R&D & Exploring New Markets
Sell Online
Pitch OEM to manufacturers
One OEM agreement
Two OEM agreements

11. Validation Interviews
Lisa Stein, CEO of Spinlife
• Multiple patents necessary
• DME’s are consolidating
“There is a lack of
significantly over the next year
innovation in the market
• Partner with a large
and I’m still selling
manufacturer
products from 20 years
ago. This product will blow
people away.”
David Lippes, CEO of Ti-Lite
•
Manufacturers expect 40%
margins
• Retailers expect 50% margins
“If you can build something
• does deep people will
thatNeed a that, product portfolio to
buysustain the business
it”

12. Final Canvas
End users don’t rely on
magazines for new product
information.
The wheelchair
manufacturers are the best
way to sell through DME or
online retailers.
Strong emphasis
on protective IP
Manufacturing cost
~$6
Most likely asset sale vs. licensing

13. Where We Are Now
First product in a viable business
We will be pursuing the product outside of class
Next Steps:
•
•
•
Engage legal expert and file provisional patents
This week we are meeting with Ti-Lite’s Outfront (a subsidiary
building new wheelchair products)
Continuing to build a product portfolio

14. Investment Readiness Level

15. Appendix

16. Market - Casters
Units
Amount*
Total Wheelchair market
3300000
$495,000,000
Manual Wheelchair users
(TAM)
1,980,000
$297,000,000
SAM (Active manual
wheelchair users)
1,188,000
$178,200,000
*Assumes 1 pair purchased every year at $150
Target Market
Year 1
Year 2
Year 3
0.5%
1%
3%
$891,000
$1,782,000
$8,910,000

17. Partner Relationship
Information
Wheelchair
Manufacturer
Physical Goods
Money
Contract
Manufacturers
$50,000
samples, travel,
lawyer (not to
manufacturer)
$10-15k tooling
$6-10/pair
Testing Labs
DME
Vantage
Realized
$50,000
samples,
labor
Advocacy
Groups
Online
Marketplace

18. Hypothesis
We thought that...
Corresponds to
Canvas...
Manual wheelchair users would jump at the chance to move more
easily without electricity
Value Proposition
We could sell through all possible channels concurrently
Channels
We would cater exclusively to long-term users
Customer Segments
Our main customers were wheelchair users
Customer Segments
Insurance would cover products that provided benefit in all cases
Not covered on canvas,
reference in customer
segments?

19. Metrics that Matter
•
How many units do we sell:
o
o
•
o
Cost
o
o
o
o
•
DME sales
Web
Manufacturer
o
Tooling
Unit cost
Burn rate/ G&A
Customer Acquisition/Marketing
Customer Lifetime Value
Sales

21. IP Plan
● Avoid automotive patents
● Aim for personal mobility-specific
● Include aesthetics as patent criteria
○
Current standard is focusing on geometric patterns
best suited to buckling

22. Next Steps: Upcoming Meetings
•
•
•
Marilyn Hamilton, Founder of Quickie
Wheelchair Company
Bob Hamilton, Wheelchair dealership owner
Carl Mulberry, President of Columbus
Medical Equipment

23. Next Steps: Other Markets
● Strollers: 6.64 million units total
○
○
○
Total Market: $332.2 million a year
Assuming $200 average cost of a stroller, 1.66
million strollers were sold
Average of 4 wheels
● Hospital Beds: 6.92 million units total
○
○
○
$3b market a year
Averaging cost of 10 hospital beds, average bed is
$1735
Approximately 1.73 million beds sold last year, 4
wheels

24. Resources
Year 1
Physical
Intellectual
Financial
Human Resources
Contracted
Year 2
Year 3
Office
$25,000
Prototyping Lab
$25,000
Testing Lab
(cost under activities)
Website
$3000/year
Patents
$15,000
Trademark
$300
Contract Manufacturer
$10k + $6 * production qty
Quality Contractor
(cost under activities)
Capital/Investors
Equity
Billing System
$1,000
Advisors
Equity
Customer Service Rep
$30,000
Sales Rep
$125,000
Supply Chain Specialist
$100,000
Marketing/ Brand Specialist
$100,000

25. Activities
Year 1
Develop 3 new caster designs $30,000
Year 2
Year 3
Expand casters beyond
wheelchair market - $30,000
Receive patent on 1 caster
design- $10,000
Begin pitching to Manufacturers $50,000
Have 1 licensing agreement $50,000
Have 3 licensing agreements $50,000
Casters being sold in 10% of
DME’s in California and Arizona $50,000
Casters being sold in 20% of
DME’s in California and Arizona $50,000
Casters being sold in 30% of
DME’s in California and Arizona $50,000
Selling casters on 3 medical
equipment websites - $3,000
Selling casters on 10 medical
equipment websites - $5,000
Selling casters on 25 medical
equipment websites - $8,000
Supplier quality audits - $10,000
Supplier quality audits - $10,000
Sign agreement, build molds with
one contract manufacturer $10,000
Test prototype samples for
reliability and strength - $15,000

26. Sales and Expenses
Year 1
Unit
s
Dollars
Year 2
Total
Gross Sales
Units Dollars
$660,000
DME Sales
Licensing
Online Marketplace
Expenses
Year 3
Total
Units Dollars
$1,140,000
3000
$100
$300,000
7000
$100
0
$80,000
$0
1
$80,000
$80,000
3000
$120
$360,000
3000
$120
$360,000
Total
$1,680,000
$700,000 10000
$100
$1,000,000
4
$80,000
$320,000
3000
$120
$360,000
$275,300
$764,000
$1,187,000
$4,000
$204,000
$454,000
$56,000
$200,000
$218,000
$155,000
$255,000
$410,000
Research/Protoyping
$50,000
$75,000
$75,000
Intellectual Property
$10,300
$30,000
$30,000
$384,700
$376,000
$493,000
G&A
Materials and
Manufacturing
Marketing
Net Revenue

27. Initial Investment Needed
Year 1
Year 2
Year 3
$4,000
$204,000
$454,000
$56,000
$200,000
$218,000
$155,000
$255,000
$410,000
Research/Prototyping
$50,000
$75,000
$75,000
Intellectual Property
$10,300
$30,000
$30,000
$275,300
$764,000
$1,187,000
G&A
Materials and
Manufacturing
Marketing
Expenses
We need $1 million in startup investment