CEMS-­‐ESA

 Block  Seminar  2010  

"Turning  Technology  into  Business”  

José  Alfredo  CRUZ  

Marta  NARDIN  
Sebas8an  SCHAEFER  
Szilveszter  BUKOVSKY  
Vanessa  KIKKO  
August  27,  2010  
 Table  of  Content  

1.  Product  Idea  

2.  Management  Team  
3.  MarkeDng  
4.  Business  System  
5.  Finance  
6.  Risks  
1.  Product  Idea  
Surgery  Trainer  

The  Problems.   The  Solu8on.  

-­‐  Imprecise  Simula8on  Tools   Advantages  of  the  exoskeleton:  

-­‐  Malprac8ce  cases  
-­‐  Lawsuit  costs   -­‐  Force  Feedback  
-­‐  Preciseness  
-­‐  Same  hardware,  different  soZware  
-­‐  Adaptability  
-­‐  Different  scenarios  
2.  Management  Team  
-­‐   Management  Team  with  different  backgrounds  

-­‐ Different  tasks  and  func8ons  

-­‐  Hire  three  engineers  (soZware,  hardware  produc8on,  management)  

Jose  Cruz   CEO  

Marta  Nardin   Director  of  HR  
Vanessa  Kikko   COO  
Szilveszter  Bukovszky     CFO  
Sebas8an  Schaefer   Chairman  
3.  MarkeDng  
Market  &  Compe99on  

-­‐ Health  care  is  a  mul8  billion  dollar  industry.  

Top  5  Medical  Equipment  Manufacturers:  

-­‐ Cardinal  Health,  Johnson  &  Johnson,  St.  Jude  Medical,  Boston  

Scien8fic  Corpora8on  and  Medtronic.  

Companies  producing  Medical  Simula8on:  

-­‐  CAE,  MSR  and  Simulab  

3.  MarkeDng  
Target  Market  

Best  medical  schools  in  the  world.    

Why?  

-­‐   Interested  in  high  tech  educa8on  

-­‐   Resources  (budget)  
-­‐   Opportunity  of  Collabora8on  (Research/Feedback)  
-­‐   “Opinion  Leaders”  

Poten8al  Market  Growth:  

-­‐ All  other  medical  schools  in  the  world  

-­‐   Other  sectors  (eg.bomb  detona8ons)  
3.  MarkeDng  
Marke9ng  Strategy  
Price  
•   Hardware:  small  profit  
Product  
•   SoZware:  high  margins  
•   Guarantee  the  Exclusive  Licensee   •   11  first  consumers:  Free  SoZware    
•   Apply  for  the  soZware  patent  
•   US  and  EU  Offices    

Place  
•   Top  Medical  Schools  
Promo9on   •   Harvard  University    
•   University  of  Pennsylvania  
•   Specialized  Magazines/Fairs   •   Cambridge  University  
•   Direct  Channel  
•   11  first  consumers  
4.  Business  System  
Milestone  

2010:  
•  Win  CEMS  business  plan  compe88on  
•  Licensing  agreement  with  André  Schiele’s  
•  Acceptance  to  ESA  incubator  

2011:  
•  First  version  of  virtual  reality  heart  soZware  
•  Partnership  with  top  medical  school  
•  First  round  of  financing  (university  partnership  and  government  grants)  
•  Adapta8on  of  exoskeleton  for  medical  training  purposes  
•  Patent  soZware  in  the  USA  
4.  Business  System  
Milestone  
2012:  
•  Small  series  produc8on  with  assembly  contractor  
•  First  sales  of  exoskeleton  
•  Commercializa8on  of  first  organ  heart  soZware  
•  Second  round  of  financing  (Open  Sky  Fund,  subsidized  loans)  
•  Start  development  of  kidney  soZware  
•  Open  sales  office  in  the  USA  and  Asia  

2013:  
•  First  posi8ve  cash  flow  
•  Produce  second  series  of  exoskeletons  (40  pieces)  
•  Break-­‐even  point  

2014:  
•  Produce  third  series  of  exoskeletons  (100  pieces)  
•  Start  soZware  development  of  lung,  liver  and  teeth  
•  Start  repaying  debt  
4.  Business  System  
Research  &  Development   Produc9on  
-­‐   R&D  is  needed  in  two  areas:  soZware   -­‐   During  Startup  Phase:  only  Prototypes  
development  &  engineering   and  soZware  development  needed  
-­‐   CTO  needs  to  be  hired  an  will  directly   -­‐   First  prototype  produced  according  to  
report  to  CEO   the  requirements  of  the  first  customer  
-­‐   R&D  in  coopera8on  with  our  first   -­‐   From  year  3  on:  outsourced  serial  
customer   produc8on  
Marke9ng  &  Sales  
-­‐   Success  of  venture  heavily  depends  on  
coopera8on  with  one  of  the  best  med  
schools  
-­‐   CEO  Cruz  and  COO  Kikko  handle  
Marke8ng  and  Sales  during  Startup-­‐
Phase  
-­‐   From  year  3  on:  sales  offices  will  be  
opened  in  different  regions  
 4.  Business  System  
Distribu9on   Service  
-­‐   Distribu8on  and  logis8cs  not  at  the   -­‐   Business  model  depends  heavily  on  
core  of  business  model   coopera8on  with  medical  schools  
-­‐ Hardware  can  be  shipped  with  any   -­‐   Therefore  service  is  at  the  core  of  our  
reliable  logis8cs  company   business  
-­‐   When  produc8on  is  outsourced  the   -­‐   Any  customer  feedback  will  be  
contractor  handles  the  shipping  as  well   immediately  dealt  with    
-­‐   Exoskeleton  will  always  be  installed  of   -­‐   As  venture  expands  and  sales  offices  
a  Hands  On  mechatronic   open  service  technicians  will  be  
employed  in  the  different  regions  
Corporate  Culture  
-­‐ Ini8al  management  team  has  similar  
educa8onal  background  
-­‐ Different  personal  backgrounds  
complement  each  other  
-­‐   Strong  believe  in  project  is  needed  
-­‐   Commitment  and  reciprocal  
interdependency  will  lead  to  
collec8vis8c  environment    
5.  Finance  
Sources  of  Fundraising  
Government  loan  
2,500,000  

2,000,000   Venture  capital  

1,500,000  
University  R&D  soZ  loan  
Euros  

1,000,000  
University  R&D  investment  

500,000  
Goverment  subsidy  
0  
Year  1   Year  2  
Equity  

-  Company valuation of 48.8 Million € in 5 years

-  93% annual ROI for VC capital injection

- 43% annual ROI for Univesity R&D partnership

5.  Finance  
Distribu9on  of  revenues  and  costs  

30,000,000   30,000,000  

25,000,000   25,000,000  
Salaries  
20,000,000   20,000,000  
Licensing  
15,000,000   15,000,000  
R&D  
10,000,000   10,000,000  

5,000,000   5,000,000   Produc8on  

costs  
0   0  
SoZware  
Revenue   Profit   Costs  
Exoskeleton  
 6.  Risks  
Business  Risk   Impact   Likelihood   Risk  Mgmt.  Strategy   Level  of  
and  Monitoring   prepara9on  
A  similar   Medical  Schools   High   A  compe8tor   High  
product  already   not  eager  to   analysis  and  a  good  
exist   change     marke8ng  strategy  
Patent  already   No  more  changes   Medium   Use  everything   High  
granted   included  in  all  
possible  ways  
A  lot  of  money   No  liquidity  at  all   Medium   A  very  well  done   Medium  
invested  and   and  loss  of  money   budget  
insufficient  cash   and  8me  
flow  
Slow  soZware   Company  not  able   High   Specific  aoen8on  to   Low  
development   to  produce  it  all   R&D  department    
on  8me  
 6.  Risks  

Scenario-­‐dependent  profits  
25,000,000  

20,000,000  

15,000,000  
Op8mis8c  
Euros  

10,000,000   Realis8c  

Pessimis8c  
5,000,000  

0  
Year  1   Year  2   Year  3   Year  4   Year  5  
-­‐5,000,000  
THANK  YOU  FOR  YOUR  ATTENTION