Meeting the Challenges by Grabbing the Opportunities

1. Meeting the Challenges by Grabbing the Opportunities Can Scientists be an Entrepreneur? Photo Credit:Bill BransonMedical Arts and Photography BranchOffice of Research ServicesNational Institutes of Health

2. Address • Yiqing Liang • Clever Sys. Inc. • 11425 Isaac Newton Square, Suite 202 • Reston, VA 20190 • Tel: 703-787-6946 Fax: 703-757-7467 • yqliang@cleversysinc.com

3. The Company • Clever Sys. Inc. (CSI), located in the Washington DC area, specializes in digital video technologies and their applications • Started in 1999, with no capital funding, and one person, in a basement

4. The Company (Cont’) • Current Staff – 6, 3 PhDs in Computer Science, and one PhD in Physiology. • 15 products in automated tools for Lab Animal Behavior analysis • Annual revenue over $1.3 million • Over 50 High Profile Customers like: • Academia: MIT Whitehead Institute; Salk Institute; Johns Hopkins University; Emory University; The Jackson Lab • Industry: Pfizer; Eli Lilly; GSK; Merck; Wyeth;

5. How to Grow from Zero • Capital • Conventional Financing • VC Investment, • Bank Loans • Knowledge is Power • Other Resources • Business Directions – Where are you going to make money? • Hard work and Persistence

6. Business Direction • What is Needed – Niche Market • What you can do • What Others cannot do yet

7. Grabbing Opportunity • Opportunity Escapes • Two Contracts from DARPA on digital video analysis • Nothing Happens • Digital Video Analysis Technology is an Opportunity • Where is the Specific Opportunity?

8. Business Directions – The Opportunity • Mission: Supporting the Scientific Community Through Next Generation's Technology for Behavior Analysis • Behavior Analysis in Life Science • Lab Animal Behavior Analysis • Patient Disease Diagnosis, such as Seizure/Epilepsy in Children and Newborn Baby • Patient Rehabilitation

9. Behaviors in Other Areas • Extended Applications: Security and Homeland Security, Store Customer Survey, Athletes’ Performance Analysis, Dance Performance

10. How to Develop Capital • We Scientists have our own Capital: • Knowledge • Experiences • Novel Ideas • Can We Materialize the Capital • Opportunity • Seeding Money

11. How to Develop Technologies • Initial Technology Direction • Follow-up Technologies • Non-Stop Development Efforts • Others will Compete – no Safe Heaven

12. SBIR as Seed Money • Small Business Innovation Research Program -- 2% of Federal Research Funding • Ownership is yours • Risks • You have to be working for the company as your principal employment • Follow on funding is your responsibility

13. Can We Be an CEO? • When talking to VCs or Business People, one often heard statement: “You need an CEO!” • Can Scientists be CEO? • Yes! We should be confident! • We are not less than MBA in doing business

14. Should Scientists be Salesman? • Salesman determines the cash flow and brings in the capital • Scientists may be the best salesman • Customers respect the people who have common language and understand them • Scientists get to know the market – what the customer needs • Gaining New Knowledge

15. Can Technology be Decisive Factor in Building a Company? • Business people: • Capital is the key • Technology is also the key, Especially today, with software development going to India and Manufacturing going to China

16. Issues • Market Size for Investment? • Recurring Revenue • Life-Style: • SBIR Life Style • Software Development Life Style

17. Behavior Analysis Technologies of Next Generation • We are not video tracking, and we are doing video behavior recognition! • Video tracking reduces animal to a point in space -- the center of mass, losing a lot of information about animal • We are doing behavior recognition, using all the information of animal full body (shape) and identified animal body parts (head, tail, forelimbs, hind limbs, abdomen, upper/lower back, ear, etc.)

18. CSI Products- Making Use of Information from Full Body and Body Parts CSI Approach Current Approach CSI Approach

19. CSI Products- Making Use of Information from Full Body and Body Parts (Cont’d) Others’ Approach Frame 527 Frame 528 Global Difference CSI Approach Identify and use Body Parts and their activities

20. Reducing animal to a point Using full body information CSI Products- Making Use of Information from Full Body and Body Parts (Cont’d)

21. Standing Out from the Crowd • Capturing and utilizing information of animal’s full body, body parts, and temporal relations to capture semantic meaning of mouse complex behaviors, rather than monitoring a point in space. • Supporting new paradigms and parameters • CSI products achieve more revealing capability that was not possible before, saving significant labor cost, and meeting the demand for high throughput scanning in real time while obtaining more accurate and objective results.

22. Standing Out from the Crowd (cont’d) • All CSI products and systems work for both mice and rats • All systems are functional with any type of device • All types of home cages • All types of Mazes (radial arm, EP, T, Y, Zero, etc.) • All systems function in overnight , red light or IR environments • All systems feature “Virtual Grid” analysis tools and free calibration

23. Behavior Analysis - Our core competency (cont’d) • Current Company Focus on Lab Animal Behavior Analysis • The opportunities in Post Genomic Era • Building upon existing technologies • Building Our Technology • Six (6) Phase I grants from NIH • Two Phase II grants • Our interest is in covering all animals (ex. Primate, fruit flies, zebra fish) and all paradigms of animal behavior analysis

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