Business Model Canvas Venture Studio Entrepreneurs Bootcamp Von Allmen Center for Entrepreneurship September 15, 2016

A novel therapeutic approach to disorders of the central nervous system

Novoron Bioscience, Inc. Founded in 2013 Spin-out from UC San Diego Develop first regenerative therapy for spinal cord injury Raised >$1.25 MM in non-dilutive grants from NIH Selected to participate in the inaugural ICorps @ NIH

Business Model Method or process by which one receives appropriate compensation for providing value to a customer.

Business Model Method or process by which one receives appropriate compensation for providing value to a customer

Front of the House

Back of the House Front of the House

Light Flexible Framework

Heavy Rigid Wrong

A startup is not a large company in miniature.

“Everybody has a plan until they get punched in the face “Everybody has a plan until they get punched in the face.” – Mike Tyson

Entrepreneur Product Manager

Technical Failure Market Failure

Value Proposition NOT your product NOT your product’s features Your product/idea has NO intrinsic value Cultural concept

Value Proposition Better Faster Cheaper Culture

Molecule capable of antagonizing LRP1 and reducing RhoA activation in neuronal cell types after a traumatic injury to the spinal cord

Drug-like molecule Neuroregeneration

Drug-like molecule Neuroregeneration

Drug-like molecule Neuroregeneration Ability to walk Sphincter/bladder control Sensation

Drug-like molecule Neuroregeneration Ability to walk Sphincter/bladder control Sensation

Drug-like molecule Neuroregeneration Ability to walk Sphincter/bladder control Sensation BETTER Recovery CHEAPER Healthcare costs

Customer Segments Who is paying you for your value? Customers are human beings Three roles of a customer Decide Pay Use Be as specific as possible

BETTER Recovery Spinal cord injury patients CHEAPER Healthcare costs

BETTER Recovery Spinal cord injury patients Doctors CHEAPER Healthcare costs

BETTER Recovery Spinal cord injury patients Doctors CHEAPER Healthcare costs Insurance Co.

Get out of the building!

BETTER Recovery Spinal cord injury patients Doctors CHEAPER Healthcare costs Insurance Co.

BETTER Recovery Spinal cord injury patients Doctors CHEAPER Healthcare costs Insurance Co.

Channels

Channels Direct Indirect Farmer’s market Trade expo Cold call Indirect Wholesale/Retail Own store Internet Affiliates/Partners Multi-sided market (local newspaper, Facebook)

BETTER Recovery Patients Doctors Insurance Co. CHEAPER Healthcare costs Advertising Direct

Customer Relationships How do we interact with our customers to provide value (i.e. receive revenue)? Examples Transactional (automated?) Add-on Community Personal assistance

BETTER Recovery Personal Patients Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Advertising Direct

Key Activities What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Categories Production Creation Problem Solving

FDA approval BETTER Recovery Personal Patients Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Advertising Direct

FDA approval BETTER Recovery Personal Patients Phase 3 Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Advertising Direct

FDA approval BETTER Recovery Personal Patients Phase 3 Phase 2 Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Advertising Direct

FDA approval BETTER Recovery Personal Patients Phase 3 Phase 2 Doctors SCI Community Phase 1 Insurance Co. CHEAPER Healthcare costs Advertising Direct

FDA approval BETTER Recovery Personal Patients Phase 3 Phase 2 Doctors SCI Community Phase 1 Insurance Co. IND CHEAPER Healthcare costs Advertising Direct

FDA approval BETTER Recovery Personal Patients Phase 3 Phase 2 Doctors SCI Community Phase 1 Insurance Co. IND Toxicology CHEAPER Healthcare costs Manufacturing Advertising Direct

Key Resources What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Categories Physical Intellectual (brand, patents, data) Human Financial

FDA approval BETTER Recovery Personal Patients Clinical Trial IND Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Lab Space Advertising Direct

FDA approval BETTER Recovery Personal Patients Clinical Trial IND Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Lab Space Advertising ClinDev Team Direct Pre-Clin Team

FDA approval BETTER Recovery Personal Patients Clinical Trial IND Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Lab Space Advertising ClinDev Team Direct Pre-Clin Team Money

FDA approval BETTER Recovery Personal Patients Clinical Trial IND Doctors SCI Community Insurance Co. CHEAPER Healthcare costs Lab Space Advertising ClinDev Team Direct Pre-Clin Team Money Patents Data

Key Partners Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform?

FDA approval Patent Law BETTER Recovery Personal Patients Clinical Trial Consultants IND Doctors CRO SCI Community Insurance Co. CMO FIPCO CHEAPER Healthcare costs Lab Space Advertising Team Direct Money IP

FDA approval Patent Law BETTER Recovery Personal Patients Clinical Trial Consultants IND Doctors CRO SCI Community Insurance Co. CMO FIPCO CHEAPER Healthcare costs Lab Space Advertising Team Direct Money IP

FDA approval Patent Law BETTER Recovery Personal Patients Clinical Trial Consultants IND Doctors CRO SCI Community Insurance Co. CMO FIPCO CHEAPER Healthcare costs Lab Space Advertising Team Direct Money IP

FDA approval Patent Law BETTER Recovery Personal Patients Clinical Trial Consultants IND Doctors CRO SCI Community Insurance Co. CMO FIPCO CHEAPER Healthcare costs Lab Space Advertising Team Direct Money IP

BETTER Recovery FIPCO CHEAPER Healthcare costs

BETTER Recovery FIPCO Biogen Sanofi AbbVie CHEAPER Healthcare costs GSK

BETTER Drug Candidate FIPCO Biogen Sanofi AbbVie GSK

BETTER Drug Candidate Personal FIPCO Biogen Sanofi AbbVie GSK Direct

IND BETTER Drug Candidate Personal FIPCO Toxicology Biogen Manufacturing Sanofi PK/PD AbbVie GSK Lab Space Direct Team Money IP

Patent Law IND BETTER Drug Candidate Personal FIPCO Consultants Toxicology Biogen CRO Manufacturing Sanofi CMO PK/PD AbbVie GSK Lab Space Direct Team Money IP

Cost Structure Value Driven (or Cost-Based Pricing) 1970’s GM Cost Driven (or Price-Based Costing) 1970’s Toyota Easier to identify than revenue Industry specific metrics Cost per user Cost per unit Cost per per available room

Patent Law IND BETTER Drug Candidate Personal FIPCO Consultants Toxicology Biogen CRO Manufacturing Sanofi CMO PK/PD AbbVie GSK Lab Space Direct Team Money IP Pay for activities and resources

Revenue Streams

Patent Law IND BETTER Drug Candidate Personal FIPCO Consultants Toxicology Biogen CRO Manufacturing Sanofi CMO PK/PD AbbVie GSK Lab Space Direct Team Money IP Licensing Fees Up front Milestone Royalty Pay for activities and resources

BMC – Next Steps Put together a draft of your BMC Talk to your first customer Talk to your next 5 customers Edit your draft BMC Talk to 10 more “customers” Present your draft BMC next week Confidence intervals

“If everything seems under control, you're not going fast enough.” - Mario Andretti

“… [N]o plan of operations extends with any certainty beyond the first contact with the main hostile force.” - Helmuth von moltke

“… [N]o plan of operations extends with any certainty beyond the first contact with the main hostile force.” - Helmuth von moltke

“… [N]o plan of operations extends with any certainty beyond the first contact with the main hostile force.” - Helmuth von moltke customers