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UTSA CITE Program Boot Camp Feb. 15, 2014 Becky Ariana CEO
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Our CITE Team 4 Mechanical Engineering students – Gary Walters 4 Business Students – Justin Stultz Entire team met weekly for 2-3 hours Additional meetings with Mentor and Business Team Built a working prototype – “Technical Proof of Concept” Developed detailed Business Plan Our Inspiration: Gary is a Wounded Warrior; we saw the need for our product daily
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Why We Won Clearly articulate the problem and our solution to it Detailed Business Plan: “Plan your work; Work your plan” – Situation Analysis Scope and significance of problem Market size, segments, and dynamics of market Competitive environment Regulatory environment – Strategic and Tactical – Comprehensive – “Tied together” – Realistic Financials Worked our tails off!!
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The Problem: HEAT CONFIDENTIAL - Not For Distribution 4 Prosthetic limb provides mobility and sense of independence BUT….heat and sweat build up within the socket of the prosthesis
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The Consequences For the amputee – Discomfort – Disruption of daily activities – Impact on overall quality of life
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The Consequences For the amputee – Discomfort – Disruption of daily activities – Impact on overall quality of life – Serious medical problems: Friction blisters Skin ulcers Infection Need for additional surgery
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Our Solution: The first commercially available prosthesis cooling system Lightweight, battery-powered Activated by the patient Embedded in socket by prosthetist Kit components: – Thermoelectric elements for cooling – Heat dissipation system – Power supply
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Cool It. 1 st generation prototype
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Our Progress Incorporated in September Moved into office at SATC Developed 7 Provisional Patents – Will file 2 Non-Provisional PCT Patents in April Design is frozen FDA docs are prepared Selected our Federal sales channel partner Selected our manufacturing and order fulfillment partner Executive Team in place – 5 of 8 students
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What’s Next? Money is the lifeblood of any new company
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What’s Next? Money is the lifeblood of any new company Currently raising $2.0 Million File patents, secure FDA-clearance, conduct beta test, launch first product, design 2 nd product Next raise: $4.5 million First sale in Q3 2014 Profitability at end of Year 3
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Opportunities – How can they help? Raising $$ – Allow 6-12 months – Investors must be “accredited”
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Opportunities – How can they help? Raising $$ – Allow 6-12 months – Investors must be “accredited” Provide valuable services (regulatory, marketing,…)
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Opportunities – How can they help? Raising $$ – Allow 6-12 months – Investors must be “accredited” Provide valuable services (regulatory, marketing,…) Key introductions – Influence/drive demand for your product – Provide technical expertise – Serve as Business Advisors – Serve as members of your Board of Directors
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Opportunities – How can they help? Raising $$ – Allow 6-12 months – Investors must be “accredited” Provide valuable services (regulatory, marketing,…) Key introductions – Influence/drive demand for your product – Provide technical expertise – Serve as Business Advisors – Serve as members of your Board of Directors Expand your product line
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Opportunities – How can they help? Raising $$ – Allow 6-12 months – Investors must be “accredited” Provide valuable services (regulatory, marketing,…) Key introductions – Influence/drive demand for your product – Provide technical expertise – Serve as Business Advisors – Serve as members of your Board of Directors Expand your product line Expand into new markets
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Opportunities – How do you find them?
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Sources Your Mentor Professors CITE Judges UTSA Public Affairs Potential Investors Family, Friends, Neighbors Research
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Opportunities – How do you find them? Sources Your Mentor Professors CITE Judges UTSA Public Affairs Potential Investors Family, Friends, Neighbors Research You must be fearless!!
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Our Unexpected Opportunities Publicity and increased awareness KC Gonzalez Publicity Interviews Articles Trade journal article Contact from major prosthetics university
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Our Unexpected Opportunities An opportunity to expand our product line CITE Judge Researcher New product for us; new application for his technology
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Our Unexpected Opportunities Support from a Four-Star General Former Deputy Commander of NATO Chairman, Wounded Warrior Games MentorInvestorCTANCTAN MemberGeneral
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The Challenge: Balance Your investors expect you to hit your milestones, on time You need to “Work Your Plan”
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The Challenge: Balance Your investors expect you to hit your milestones, on time You need to “Work Your Plan” Plan Opportunity
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Bottom Line….. You must deliver on your commitments to your investors Assign responsibilities to your team members – hold everyone accountable Communicate often with your BoD, Business Advisors, and Investors Pursue opportunities as you can
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Thank you! Becky Ariana CEO b.ariana@letosol.com 858-705-2243
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