Presentation on theme: "Ideas, Business Plans, and Entrepreneurs Presented to: VU-BME272 Sep 19,2000 by Bob Allen, Calley Hardin & Paul Clayton Nova Bionics, Inc. Nashville, TN."— Presentation transcript:
Ideas, Business Plans, and Entrepreneurs Presented to: VU-BME272 Sep 19,2000 by Bob Allen, Calley Hardin & Paul Clayton Nova Bionics, Inc. Nashville, TN
Discussion Topics Sep 2000 Ideas and where they come from Micro-LIDs™ and Micro-SLAMs™ Business Plans and why we need them Entrepreneur wisdom VU graduate’s perspectives
Idea Overview Sep 2000 Ideas are… The product of mental activity and imagination The basis of creativity The result of reason as opposed to perception A plan of action or a path to follow “Ideas are like rabbits, you get a couple and learn to handle them and pretty soon you have a dozen.” …John Steinbeck
Micro-LIDs™ to Micro-SLAMs™ 1966 LID Semiconductors Very small size and weight Ultra reliability Eliminate custom charges Cost-quantity advantage 1999 Micro-SLAMs ™ Near chip-scale (85%) Reduced height Custom configuration 1992 Micro-LID™ Arrays Multi-chip semiconductors High density-surface mount Biomedical industry need
Micro International, Inc. Nashville, TN USA What are Micro-LIDs? Acronym: LID- Leadless Inverted Device Leadless, ceramic, surface mount semiconductors Very small size and low weight Environmentally rugged - wide temperature range, high shock/vibration, etc. Excellent radio-frequency characteristics
Micro International, Inc. Nashville, TN USA What are Micro-LIDs? Single-chip and multiple-chip format Replaces circuits containing 2-8 individually packaged semiconductors with a single surface- mountable component Originally pioneered by NASA research engineers in the 1960’s (R.V. Allen, S.V. Caruso) Niche markets which have over-riding needs for ultra-reliability, small size, and low weight
Do not check your mail while on vacation or the day before you close on your new house. December 29 1998...
Never give up... Problems only create opportunities Major customer facilitated problems force rapid, widespread, and long- lasting solutions
Micro International, Inc. Nashville, TN USA What are Micro-SLAMs? Acronym: SLAM- Surface Level Active Microcircuit Near chip-scale leadless, ceramic, surface mount semiconductors Ultra small size and low weight Environmentally rugged - wide temperature range, high shock/vibration, etc. Replaces circuits containing 4-16 individually packaged semiconductors with a single surface-mountable component Technology provided as a “merchant” component product line by Micro International and Quadtron
Micro International, Inc. Nashville, TN USA Hex Zener Assembly Micro-SLAM á.080” x.090” x.040” á 7,200 sq mils Micro-LID á.160” x.090” x.055” á 14,400 sq mils Size Reduction 50%
Micro International, Inc. Nashville, TN USA Quad Diode Assembly Micro-SLAM á.055” x.070” x.040” á 3,850 sq mils Micro-LID á.160” x.090” x.055” á 14,400 sq mils Size Reduction 73%
.100 x.120 per diode.040 x.075 per diode.090 x.160.060 x.090 Quad Diode Array Reduction Single Leaded DiodesSingle Micro-LIDsMultiple-chip Micro-LIDMultiple-chip Micro-SLAM Multiple-chip Micro-SLAM assembly reduces component square area by 88.75% over single leaded diodes.
Know whether you are going up or down the entrepreneur hill and be prepared to give up TOTAL control to expand your resources
Avoid passion driven pleasures in uncharted waters and isolated islands
Micro International, Inc. Nashville, TN USA M To provide higher value-added micro-components and assemblies for biotelemetry products M Natural high reliability application of micro-components M Opportunity to modernize factories and relocate them to Nashville M Broadens recognition among customer base and the technical community M To become intimately involved with new VU facilitated biomedical initiatives (VU Office of Enterprise Development) Direction & Decision
Philosophy Sep 2000 Deal Model –Build on existing ideas –Catalyze new ideas Participate in “Vision” Creation –Strategy –Structure Involve Student Interns –Due Diligence –Deal Evolution
Investment Parameters Sep 2000 PRE-SEED CAPITAL Up to $300,000 per project No matching funds required Use: –Due Diligence –Business Plan –Recruit Management –Reduction to practice –Proof of principle –Alpha Demo
Investment Parameters Sep 2000 SEED CAPITAL Up to $2M per project At least a 50% match from third-parties Use: –Establish Business Infrastructure –Refine Technology and Product –Initiate Regulatory Approval –Marketing & Sales –Working Capital
Portfolio – Seed Deals Sep 2000 MXISystems, Inc. –Monochromic X-Rays –Imaging (Medical, Industrial, Proteomics) WebEBM.com –“Evidence Based Medicine” –University Consortium –Multiple Revenue Model Cardiovascular Services of America, Inc. –Outpatient Cardio Diagnostic & Treatment Facilities –EBCT Imaging –Disease Management/Wellness
Portfolio – Pre-Seed Deals Sep 2000 IS², Inc. –Medical IT Software Product Line –Consulting & Integration Services –ASP Applications Nova Bionics, Inc. –Electronic Medical Devices –University Middleman for Devices –Telemetry Products, 1 st Domain iTEACH.com –Vertical portal for the K-12 Teachers-Student-Parents Market –University Consortium –Revenues linked to Proven Results
Pre-Seed Deals (con’t) Sep 2000 American Graduate School of Management –Interactive, multimedia-based learning solutions –Global Executive Business Education –Customer – International Corporations MicroArrays, Inc. –DNA chips – study thousands of genes simultaneously –Existing product line; e-commerce strategy PharmaVU, Inc. –Vehicle for developing new drug candidates –Unique product acquisition strategy –Unique CRO Component CET, Inc. –Bridge to SBIR/STTR Funding Resources Consistently reviewing additional projects
Dreams of a Pre-Seed Sep 2000 I want to be a sapling and grow up to be a big oak tree! Baby Nova Little Nova Papa Nova
You can’t have a dream come true until you have a dream
Company Description Nova Bionics, Inc… …was formed within the Vanderbilt Office of Enterprise Development to effectively commercialize biomedical device research, inventions, disclosures, and intellectual property developed internally or acquired from research universities, government laboratories, and individual inventors. TDR-2/08-30-00 …is an incubator and idea processor for medical devices from concept to application.
Mission & Vision Mission Statement To discover, develop, and commercialize biomedical devices with the potential to foster understanding of life processes, prolong life, or to improve the quality of life. Vision Statement To become a recognized leader in taking biomedical technology from concept to application. TDR-2/08-30-00
Nova Bionics Technical Operations TECHNICAL OPERATIONS R. Allen, CTO Purchasing & Subcontracts T. Hazlewood, Mgr Component Suppliers Contract Manufacturers Emerging Technologies R. Allen Bio-Sensors Micro- Technologies (MCM/SOC) Surgical Instruments Engineering Documentation Tech Support Supplier Development Project Engineer C. Hardin, Engr Quality Assurance J. Jones, Mgr Quality Control Inventory Management Shipping/Receiving Technical Advisory Board Product Design P. Clayton, Engr Advanced Concepts Circuit Design Software Interface Adm Asst (New)
Management commits to providing the environment for success and employees commit to having fun in their success
Alzheimer’s Memory Walk TDR-2/08-30-00 N OVA F IN D™ * Provisional patent and trademark under review. Caregiver Peace of Mind
Long Range Tracking and Locating Alzheimer’s Patient Location Domestic Pet Protection Home Confinement Child Safety 0-9 Months1-2 Years2-3 Years TDR-2/08-30-00
Long-Range Systems (Product Development) ÙSize: 12 mm x 12 mm x 4 mm ÙRange: 3-5 km ÙMicro-size, inconspicuous transmitter and pocket-size receiver ÙDefined zone alarm and location capability outside zone ÙPackaging / Configuration:per current projects by VU MT330 and BME272 students Design Performance: TDR-2/08-30-00
Business Plans and why we need them Sep 2000 Professional Services ÙBank Line of Credit ÙInsurance Ratings Road-map to keep focused ÙAvoid being opportunistic Investment Needs ÙAngel Investors ÙVenture Capitalists Explain what we do to the technically challenged!
One idiot can ask more questions than ten wise men can answer
Business Plan Content Sep 2000 Executive Summary ÙOrganization and focus ÙMarket opportunity ÙCompetition ÙManagement Industry and Business Model ÙMarket segments ÙApproach to market ÙMarket strategies
Business Plan (con’t) Sep 2000 Product, Technology and Capabilities ÙProduct background ÙDevelopment status ÙPrototyping and Manufacturing ÙQuality documentation ÙRisk factors Financials ÙPro-forma Income Statement ÙPro-forma Balance Sheet ÙManagement and personal projection ÙUses of capital
are better starters than sustainers thrive on taking risks and living on the edge always enjoy a good chase are revitalized by recognition don’t mind making severe sacrifices for future rewards
Why work for a start-up company? Sense of ownership: ÙYou are a key player in every success and failure of the company. Sep 2000 Hands-on experience: ÙYou will gain experience in every facet of the business. ÙNo task too big or too small, you do it all!! Responsible for your own success: ÙJob description is shaped as your talents are recognized. ÙIt is up to you to optimize your strengths and admit your weaknesses.
Graduate School First? sMore money $ $ (when you get out) sMore focused learning in your specific engineering field of interest Sep 2000 Advantages: Disadvantages: sLonger wait for real income sMore focused means its harder to find your specific field sMiss out on real world things