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Starting the Company: Doing it Old-Fashioned Way by Ilya Mazo, Ph.D.

Starting the Company: Doing it Old-Fashioned Way by Ilya Mazo, Ph.D. The Company. Founded in 2002 30 years of combined experience in commercial software development Focus on computational biology and literature mining Software products for Research Market. MedScan from Ariadne.

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Starting the Company: Doing it Old-Fashioned Way by Ilya Mazo, Ph.D.

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  1. Starting the Company: Doing it Old-Fashioned Way by Ilya Mazo, Ph.D.

  2. The Company • Founded in 2002 • 30 years of combined experience in commercial software development • Focus on computational biology and literature mining • Software products for Research Market

  3. MedScan from Ariadne • Natural Language Processing Tool • A picture’s worth 1000 words MedScan

  4. Knowledge Discovery System

  5. Knowledge Databases AGI Technology PathwayAssist Natural Language Processing Techniques Pathways Biological Association Networks

  6. 12-2002 10-2003 Where We Are 02-2002 Company Started 3 founders Product Released 1 full time employee 1 part-time 2 sometimes 4 off-shore Profitable 8 full time employees 4 part-time employees 6 offshore

  7. Historical Perspective $10 MLN $2 MLN “High Tech Start Up” by John Nesheim Idea to Plan: 1/1000 Plan to Fundable: 1/17 Funded to IPO: 1/10 Product Release

  8. Why Even Start? • Official version • See new opportunities • Financial independence • Try something new

  9. The list of biotech company names Training Generation of new names Immunogenomatix Zymeta GenotronProteomorphotek Algonomica Orbotek Choosing The Name Statistical Name Generating Algorithm (based on Markov model)

  10. Ariadne: Find Your Way in the Labyrinth of Knowledge

  11. Basic Principle • The law of salary conservation

  12. Are We Going To be Rich? • “High Tech Start Up” by John Nesheim: CEO/VC risk = 6/1 • Being our own investor might be a good idea

  13. Good Things about Bad Times • Labor is inexpensive • Credit card rates are low • Government tends to help • Large companies cannot react fast • Many orphan technologies

  14. Managing a Company • Basic principle doesn’t work for more than 3 people • Need a business strategy

  15. Business Strategy • Software products for research market • Strategy that worked before • Know how to do that • Lucky coincidences?

  16. Information Overload

  17. Markets • Research market for desktop products: ~$80M sequence analysis gene expression pathways ? • System Biology $85M (2001) $6B (2008)

  18. Product Positioning • PathwayAssist: Academia ~ $2K Industry ~ $3-5K • Annual subscription and upgrades ~ 30-40% • On site licenses: technology and/or database

  19. Finding a distributor Distributors and Sales • Crossing a chasm Can sell anything for up to $500K/year

  20. Future: Activation Barrier • That ‘chasm thing’ again • Going from 100 to 1000 customers • Competition is catching up

  21. Gain Some Weight • Acquire another company or technology • Obtain a strategic investment • Study what other did and wait for your chance

  22. Creating a Company: Tips • Focus on a familiar area that looks hopeless to others • Have many friends who lost their jobs • Find someone who would sell your product: any product can be sold to generate $250-500K/year • Get lucky and find an independent source of revenue • Use this money to make something useful and wait for your chance

  23. Contact Us www.ariadnegenomics.com

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