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Widget. Version of April 1, 2005. Team: Ben Franklin, bfranklin@seas.upenn.edu Amy Guttman, aguttman@pobox.upenn.edu. CONFIDENTIAL

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  1. Widget Version of April 1, 2005 Team: Ben Franklin, bfranklin@seas.upenn.edu Amy Guttman, aguttman@pobox.upenn.edu CONFIDENTIAL This product idea or invention is confidential and is presented solely for the purpose of evaluation in PennVention. This document may not be reproduced or redistributed in whole or in part. By accepting a copy of this document, the recipient agrees not to reproduce or disclose the contents of this document to third parties without the prior written consent of its authors.

  2. Guidelines for Powerpoint Slides • PennVention slide decks will be read by judges, not projected for an audience. • Use black text on white background, with the possible exception of titles. • Use color for emphasis. • Typeface no larger than 14pt for most text. • Slide decks may not exceed 10 slides. • Make slides dense with graphical, visual information. • If you insert images make sure they are of the appropriate resolution (typically 300-800 pixels on the longest side…don’t insert a 5MB jpg image). • It is each team's responsibility to provide sufficient information to address each of the evaluation criteria in the PennVention 2009 Judging Criteria. Judges will be instructed to evaluate you on each statement in the criteria, even if you have not provided sufficient information to make an evaluation. • The following slides are real examples used with real business plans and were not created just for PennVention. Therefore, they may not be appropriate for your presentation needs. Nevertheless, they give some examples of how innovations are presented in practice. Proprietary and Confidential

  3. Example 1: Xootr Scooter Proprietary and Confidential

  4. Sweet ride. • Gets small quick. • Goes where you go. (Alpha Prototype) Proprietary and Confidential

  5. Benefits: Xootr is Fun + Fastest Way from A to B • Substantially faster than a skateboard because of larger wheel diameter. • Stable at high speeds because of steerer and larger wheels. • More versatile than inline skates • can cruise around, hang out, go in stores, etc. without changing in/out of skates. • Feels really fast because the rider is low to ground. • High potential for trick/extreme stuff. Handlebar plus deck gives trick properties of both a BMX bike and a skateboard. Really easy to jump. Xoot @ 9 mph Save ~7 minutes over walking. • For distances of less than 1.5 miles, the Xootr is the fastest mode of transportation (assuming “set-up” time for a bike or skates). • The Xootr is transparent to public transportation; it goes on the bus/train. • The Xootr can be stored in a locker or can be easily carried; it weighs about as much as a laptop computer. Ride at 12 mph Walk to bike rack Walk from bike rack Unlock Lock Trip of 1/2 mile Skate at 9 mph Put on skates Take off skates Walk @ 3 mph 1 2 3 4 5 6 7 8 9 10 minutes

  6. The Market • Segment 1: Campus transportation • College campuses • 14.4 million students in post-secondary education in U.S. • 500,000+ college students at 20 largest warm-weather campuses • e.g., big schools in California, Texas, Florida, Georgia, Arizona, etc. • 64% of all college students have at least one credit card. Most acquire this card in their fit year of college. (Credit Risk or Credit Worthy?: Colleges Student and Credit Cards, A National Survey, June, 1998. The Education Resources Institute, Boston, MA) • College students have Internet access, need the product, and geographic concentration helps create “buzz.” • Segment 2: Youthful recreation • Youth age 12-19 (32 million in U.S.) • Recreational adult user • ~7 million people age 23-35 with incomes >$40k/year in urban environments. • Segment 3: Commercial/Industrial employee transportation • high-tech campuses, factories, airports, warehouses, film sets Segments 1 and 2 comprise 30-50 million potential customers. Proprietary and Confidential

  7. Customer Profile - College Campus Segment • Male • Sophomore or junior in college (obtained credit card in Freshman year) • Lives within 1 mile of campus • Attends college in California, Southwest, or South • Purchases CDs, books, clothing on internet with a credit card • Moderately athletic: uses rollerblades and/or a bike • Has discretionary income for clothing, sporting equipment, entertainment • Thinks for himself; an early adopter of new products Proprietary and Confidential

  8. Consumer Testing • Alpha prototype tested with approximately 75 potential customers: • Palo Alto young professionals • California kids • Sausalito residents, including bike store owner and yacht owners • Stanford, San Francisco State students • Young adults in Golden Gate Park • Moderately positive response: • “Where can I buy it NOW?” -30 year old male Palo Alto surfer • “I have to carry this in my store.” -Sausalito bike store owner • “Super cool!” - Monica, Stanford undergrad • Predicted purchase rate of 2-5% of those aware of product in target market segments. If awareness/availability reaches 10% of a 30 - 50 MM person market, sales potential is therefore 60,000 - 250,000 units depending on adoption/diffusion rates. • A key result from testing: People want to try before buying! Proprietary and Confidential

  9. Risk Factors(mitigating actions in parentheses) • Product risk • We have proven that the product works, meets customer needs, and can be produced at reasonable cost. However, there could be unanticipated reliability or performance issues that could hamper sales. (We will seek to minimize this risk by rigorous product testing.) • Market risk • The product may be viewed as too silly for widespread adoption. (We are testing the product with consumers actively and continuously. In California, this issue does not appear prominent. However, in Philadelphia, some potential customers raise the silliness concern.) • Consumers may not be willing to pay over $200 for a scooter. (Initial testing suggests that some consumers view $200 as too high. However, many consumers readily pay $200 for in-line skates, suggesting that at least some segment of the market will accept a $200+ price point. Furthermore, Nova Cruz’s most obvious competition is similarly priced. If Nova Cruz sells directly to consumers, the price can be reduced to about $175 if necessary.) • Demand for product sold directly through the company’s web site may not be strong enough to sustain the company. (We intend to conduct interviews with retailers in June and July to determine their interest level. We plan to test market in September using both the direct and retail channels. If the direct sales channel is unlikely to provide adequate demand, we will be able to pursue the retail channel.) • Competition • Our technology is not revolutionary. Many companies can build a scooter. Many companies have better distribution than we will. (We are focusing on building a strong brand quickly. We are filing patents on our product. We plan to achieve substantial market share and mind share by the end of the first two years of operation. If vigorous competition emerges, we will be positioned to be the market leader.) • Liability risk • We believe that the product does not present unreasonable risks, I.e., it is substantially safer than in-line skates. However, if a lot of people use the product, someone will be injured. Injuries may lead to law suits. (We will seek to minimize this risk through a safe design, through customer education, and through insurance.) • Implementation risk • Nova Cruz is a geographically dispersed team. We have never manufactured a product before. (The team has successfully completed many projects together before. We plan to hire an experienced operations manager in the first few months of operations. We will concentrate operations at Technique.) • Financing risk • If demand for the Xootr product is very strong and/or we decide we must go retail, Nova Cruz will require additional capital. (Once demand for the product is verified and Nova Cruz’s capabilities are demonstrated, we believe that additional equity financing will be readily available.) Proprietary and Confidential

  10. Example 2: GrindAlert Bruxism Treatment Proprietary and Confidential

  11. The Problem: Bruxism and TMJ • Half the population grinds their teeth in some form. For 10% of Americans (29 million), the habit causes discomfort, jaw pain, and damaged teeth. • Each year, over 3 million Americans seek treatment spending up to $1 billion on nightguards that cost about $375 each. • Temporomandibular Joint Disorder results when excessive clenching and grinding cause damage to the jaw. This affects 10 million Americans. • The symptoms can include head, neck and face pain, tenderness when chewing, migraine headaches, tinnitus, and jaw clicking. • Many elect to have surgery to fix the damage. Proprietary and Confidential

  12. Primary Existing Solution: Nightguards • Generally custom fitted from molds taken from teeth. • Most patients find them disgusting and compliance is low. • They can only protect the teeth - do not stop the habit. Not a treatment. • Cost varies from cheap $10 generic shells to $900 custom fit. Average: $375. Mold taken from teeth Formed nightguard or ‘splint’ Proprietary and Confidential

  13. The GrindAlert Solution • GrindAlert is a battery powered, miniature sensing device incorporated into a comfortable and adjustable headband. • Using EMG technology, GrindAlert monitors muscle activity while you sleep and emits an audible tone when clenching occurs, alerting you of your grinding at the moment it happens. • Sensors are placed at the temporalis muscles, which also flex during a clench, instead of the masseter muscles. • Instead of sticky electrodes, conductive rubber pads are used to make contact with the skin. Proprietary and Confidential

  14. Electronic Module • The heart of the GrindAlert is a small electronic module with a front control featuring: • Score - number of times you clench • Time - duration of clenching • Volume - of the tone • Level - EMG threshold level: amount of jaw force necessary to trigger the tone • The back of the device features a piezo tone signal generator, similar to alarms found on digital watches. A confidential tone generator replaces an uncomfortable earpiece. The tone comes in three levels: • FAINT - A faint tone begins immediately upon clenching and continues for 2 seconds, giving you time to stop. • ALERT - If you don't stop, a louder tone sounds. Your SCORE increases one point, and the TIME function starts counting seconds. • ALARM – Starts after 5 seconds, and continues until you stop clenching or grinding. Proprietary and Confidential

  15. Competition: EMG and Biofeedback Devices • EMG Biofeedback devices are wired to the jaw with electrodes. They are usually loaned to the patient. AT53: $1,300 Myotrac2: $1,500 Cycura: $195 The worst of all worlds Proprietary and Confidential

  16. Proprietary Position • 2 U.S. Patents granted with significantly broad claims. • High barrier to knock-offs due to sophistication of circuitry. Proprietary and Confidential

  17. Manufacturing and Cost Manual Report Card Screwdriver Batteries Jewel Case Box Electronics Module Headband • GrindAlert build price of $XX. Sell for $XXX • Volume discounts down to $XXX/6 units. • Disposable headband sales: Make for $XX, sell for $XX ea. in 6-packs. • Batteries, extra score cards, other peripheral support. Proprietary and Confidential

  18. Example 3: Voloci Motorbike Proprietary and Confidential

  19. Market • 50cc-class motorbikes • existing $3+ billion market • 2.5 million units sold per year in Europe, US, Australia, Taiwan, Japan • Dominant product technology • 2-stroke air-cooled internal combustion engine • Two basic configurations: “scooter” and “moped” • Many different applications: fun, commuting, youth mobility, postal service, tourist transportation • Aggressive incentives in Europe for electric vehicles • up to $1000 direct-to-consumer rebates (in some municipalities in Italy) Honda Supercub c1958. The Supercub is the best selling vehicle in the world (30 million units to date). Current State of the Art: Aprilia Scarabeo 50cc motorbike $2399.00, 156 lbs, 2-stroke air cooled gas engine Proprietary and Confidential

  20. Target Segments • Urban Transport • Jonathan, 31 - Copy Writer, New York City: He uses it as his primary vehicle • Recreation • The Ayers, 40’s – Rochester, New York: They use it for recreation and fun at their vacation home! • Suburban Fun/Utility • Nancy, 40 – Professor, Philadelphia: She uses it for commuting, recreation and keeping up with kids • Off-Road • Scott, 35 – Software Engineer, California: He uses it for general transportation and off-road riding. • Seniors • Art, 65 – Retiree, Florida: He uses it to get around his community and the local beachfront in style! Proprietary and Confidential

  21. US Market • 50cc-class motor scooters • 100,000 units/year • 67% annual growth rate for last three years • Investments by Piaggio (Vespa), Aprilia, Yamaha, Malaguti • Electric “stand-on” scooter market • 75,000 units in 2000 • estimated 100,000+ units (>$400) in 2001 • Electric bicycle market • 35,000 units in 2000 • Efforts by Ford/Th!ink, Mercedes, Giant, Currie to establish market. • Currently still somewhat “geeky” European Market • 50cc-class motor scooter market is 1.4 mm units/year in Europe. • 1 mm units are sold in Italy and Spain. • Substantial government incentives in Italy. • By January 2002, mandatory yearly inspection of gasoline powered motorcycles in Italy (“Bollino Blu”) – 30% of the scooters on the road are expected to fail the new European Emissions Standard (“Euro 2”) Proprietary and Confidential

  22. Voloci nX30 Electric Motorcycle • Specs and Features: • Proprietary brushless motor and controller • Integral motor housing and frame • Fast charger (3 hour charge) • 30 mph/50 kph top speed • Climbs 25% grade • 60 lbs/27 kg vehicle weight • 24 mi/40 km range • Front/rear disc brakes • Front triple-clamp suspension • Rear proprietary rising-rate suspension • Modular/swappable 16lb/7kg battery pack • Full DOT compliance (“motor driven cycle”) MSRP $1995 – $2495 (depends on volume/investment) Note: Industrial design of seat, seat frame, fenders, and fairing is still under development. Proprietary and Confidential

  23. What is Unique and Proprietary about the Voloci? • Brushless motor (85+% efficiency) • proprietary, custom design in collaboration with low-cost producer of brushless motors. • Brushless motor controller • microprocessor-based controller • timing advance, current/speed limits, temperature sensing • System electronics • smart battery management • accessory power management • Rear suspension • highly compact rising-rate design • economical • Frame/battery system • modular battery “brick” Anyone can put a motor on a bike. It’s really hard to build an electric motorcycle that goes 30 mph, weighs 60 lbs, and that can be built for $900. Proprietary and Confidential

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