Ideas, Business Plans,

and Entrepreneurs

Presented to: VU-BME272 Sep 19,2000Presented to: VU-BME272 Sep 19,2000

by

Bob Allen,

Calley Hardin & Paul Clayton

Nova Bionics, Inc. Nashville, TN

Discussion Topics

Sep 2000

•Ideas and where they come from

•Micro-LIDs™ and Micro-SLAMs™

•Business Plans and why we need them

•Entrepreneur wisdom

•VU graduate’s perspectives

Idea Overview

Sep 2000

Ideas are…

•The product of mental activity and imagination

•The basis of creativity

•The result of reason as opposed to perception

•A plan of action or a path to follow

“Ideas are like rabbits, you get a couple and learn to handle them and pretty soon you have a dozen.”

…John Steinbeck

Micro-LIDs™ to Micro-SLAMs™

1966 LID Semiconductors

•Very small size and weight

•Ultra reliability

•Eliminate custom charges

•Cost-quantity advantage

1999 Micro-SLAMs ™

•Near chip-scale (85%)

•Reduced height

•Custom configuration

1992 Micro-LID™ Arrays

•Multi-chip semiconductors

•High density-surface mount

•Biomedical industry need

Micro International, Inc. Nashville, TN USA

What are Micro-LIDs?

• Acronym: LID- Leadless Inverted Device

• Leadless, ceramic, surface mount semiconductors

• Very small size and low weight

• Environmentally rugged - wide temperature range, high shock/vibration, etc.

• Excellent radio-frequency characteristics

Micro International, Inc. Nashville, TN USA

What are Micro-LIDs?

• Single-chip and multiple-chip format

• Replaces circuits containing 2-8 individually packaged semiconductors with a single surface- mountable component

• Originally pioneered by NASA research engineers in the 1960’s (R.V. Allen, S.V. Caruso)

• Niche markets which have over-riding needs for ultra-reliability, small size, and low weight

Do not check your mail Do not check your mail while on vacation or the while on vacation or the day before you close on day before you close on your new house.your new house.

December 29 1998...December 29 1998...

Never give up... Problems only Never give up... Problems only create opportunitiescreate opportunities

Major customer facilitated problems Major customer facilitated problems force rapid, widespread, and long-force rapid, widespread, and long-lasting solutionslasting solutions

Micro International, Inc. Nashville, TN USA

What are Micro-SLAMs?

• Acronym: SLAM- Surface Level Active Microcircuit• Near chip-scale leadless, ceramic, surface mount

semiconductors• Ultra small size and low weight• Environmentally rugged - wide temperature range, high

shock/vibration, etc.• Replaces circuits containing 4-16 individually packaged

semiconductors with a single surface-mountable component• Technology provided as a “merchant” component product

line by Micro International and Quadtron

Micro International, Inc. Nashville, TN USA

Hex Zener Assembly

.020

.005.005

.080

TOP VIEW

.040

SIDE VIEW

.080

END VIEW

SUBSTRATE / CIRCUIT BOARD

.090

.090

.020

TOP VIEW - DIE PATTERN

.015

.010

.010

.015

.010

Micro-SLAM .080” x .090” x .040”

7,200 sq mils

Micro-LID .160” x .090” x .055”

14,400 sq mils

Size Reduction 50%

Micro International, Inc. Nashville, TN USA

Quad Diode Assembly

.005

TOP VIEW

.040

SIDE VIEW

.055

END VIEW

SUBSTRATE / CIRCUIT BOARD

.070

.055

.070

.070

.055

.015.010.015

.010

.010.015

.015

TOP VIEW - DIE PATTERN Micro-SLAM

.055” x .070” x .040”

3,850 sq mils

Micro-LID

.160” x .090” x .055”

14,400 sq mils

Size Reduction

73%

.100 x .120 per diode .040 x .075 per diode .090 x .160 .060 x .090

Quad Diode Array ReductionSingle Leaded Diodes Single Micro-LIDs Multiple-chip Micro-LID Multiple-chip Micro-SLAM

Multiple-chip Micro-SLAM assembly reduces component square area by 88.75% over

single leaded diodes.

Multiple-chip Micro-SLAM assembly reduces component square area by 88.75% over

single leaded diodes.

Know whether you are Know whether you are going up or down the going up or down the entrepreneur hill and be entrepreneur hill and be prepared to give up prepared to give up TOTALTOTAL control to expand control to expand your resourcesyour resources

Avoid passion driven Avoid passion driven pleasures in uncharted pleasures in uncharted waters and isolated islandswaters and isolated islands

Micro International, Inc. Nashville, TN USA

To provide higher value-added micro-components and assemblies for biotelemetry products

Natural high reliability application of micro-components

Opportunity to modernize factories and relocate them to Nashville

Broadens recognition among customer base and the technical community

To become intimately involved with new VU facilitated biomedical initiatives (VU Office of Enterprise Development)

Direction & DecisionDirection & Decision

Philosophy

Sep 2000

• Deal Model– Build on existing ideas– Catalyze new ideas

• Participate in “Vision” Creation– Strategy– Structure

• Involve Student Interns– Due Diligence– Deal Evolution

Investment Parameters

Sep 2000

PRE-SEED CAPITAL• Up to $300,000 per project• No matching funds required• Use:

– Due Diligence– Business Plan– Recruit Management– Reduction to practice– Proof of principle– Alpha Demo

Investment Parameters

Sep 2000

SEED CAPITAL• Up to $2M per project• At least a 50% match from third-parties• Use:

– Establish Business Infrastructure– Refine Technology and Product– Initiate Regulatory Approval– Marketing & Sales– Working Capital

Portfolio – Seed Deals

Sep 2000

• MXISystems, Inc.– Monochromic X-Rays– Imaging (Medical, Industrial, Proteomics)

• WebEBM.com– “Evidence Based Medicine”– University Consortium– Multiple Revenue Model

• Cardiovascular Services of America, Inc.– Outpatient Cardio Diagnostic & Treatment Facilities– EBCT Imaging– Disease Management/Wellness

Portfolio – Pre-Seed Deals

Sep 2000

• IS², Inc.– Medical IT Software Product Line– Consulting & Integration Services– ASP Applications

• Nova Bionics, Inc.– Electronic Medical Devices– University Middleman for Devices– Telemetry Products, 1st Domain

• iTEACH.com– Vertical portal for the K-12 Teachers-Student-Parents

Market– University Consortium– Revenues linked to Proven Results

Pre-Seed Deals (con’t)

Sep 2000

• American Graduate School of Management– Interactive, multimedia-based learning solutions– Global Executive Business Education– Customer – International Corporations

• MicroArrays, Inc.– DNA chips – study thousands of genes simultaneously– Existing product line; e-commerce strategy

• PharmaVU, Inc.– Vehicle for developing new drug candidates– Unique product acquisition strategy– Unique CRO Component

• CET, Inc.– Bridge to SBIR/STTR Funding Resources

Consistently reviewing additional projects

Dreams of a Pre-Seed

Sep 2000

I want to be a sapling and growup to be a big oak

tree!

Baby Nova Little Nova Papa Nova

You can’t have a dream You can’t have a dream come true until you have a come true until you have a dreamdream

Company Description

Nova Bionics , Inc……was formed within the Vanderbilt Office of Enterprise Development to effectively commercialize biomedical device research, inventions, disclosures, and intellectual property developed internally or acquired from research universities, government laboratories, and individual inventors.

TDR-2/08-30-00

…is an incubator and idea processor for medical devices from concept to application.

Mission & Vision

Mission StatementMission Statement

To discover, develop, and commercialize biomedical devices with the potential to foster understanding of life processes, prolong life, or to improve the quality of life.

Vision StatementVision Statement

To become a recognized leader in taking biomedical technology from concept to application.

TDR-2/08-30-00

Nova Bionics Technical OperationsTECHNICAL OPERATIONS

R. Allen, CTO

Purchasing& Subcontracts

T. Hazlewood, Mgr

• Component Suppliers

• Contract Manufacturers

EmergingTechnologies

R. Allen

• Bio-Sensors

• Micro-Technologies (MCM/SOC)

• Surgical Instruments

• Engineering Documentation

• Tech Support

• Supplier Development

Project Engineer

C. Hardin, Engr

Quality Assurance

J. Jones, Mgr

• Quality Control

• Inventory Management

• Shipping/Receiving

Technical Advisory Board

Product Design

P. Clayton, Engr

• Advanced Concepts

• Circuit Design

• Software Interface

Adm Asst (New)

Management commits to Management commits to providing the environment providing the environment for success and employees for success and employees commit to having fun in commit to having fun in their successtheir success

www.novabionics.com

Home Page Internet

www.novabionics.com

Administration Intranet

Log ideas

Assign Domains

Assign evaluators

Evaluator Intranet

Review ideas

Rate by category

Submit questionnaire Auto E-Mail Reminders

Evaluator Bulletin Board and Chat

TDR-2/08-30-00

Alzheimer’s Memory Walk

TDR-2/08-30-00

NOVAFIND™

* Provisional patent and trademark under review.

CaregiverPeace of Mind

Long Range Tracking and Locating

Alzheimer’s Patient Location

Domestic Pet Protection

Home Confinement

Child Safety

0-9 Months 1-2 Years 2-3 Years

TDR-2/08-30-00

Long-Range Systems (Product Development)

Size: 12 mm x 12 mm x 4 mm

Range: 3-5 km

Micro-size, inconspicuous transmitter and pocket-size receiver

Defined zone alarm and location capability outside zone

Packaging / Configuration: per current projects by VU MT330 and BME272 students

Design Performance:

TDR-2/08-30-00

Business Plans and why we need them

Sep 2000

Professional Services Bank Line of Credit Insurance Ratings

Road-map to keep focused Avoid being opportunistic

Investment Needs Angel Investors Venture Capitalists

Explain what we do to the technically challenged!

One idiot can ask more One idiot can ask more questions than ten wise men questions than ten wise men can answercan answer

Business Plan Content

Sep 2000

Executive Summary Organization and focus Market opportunity Competition Management

Industry and Business Model Market segments Approach to market Market strategies

Business Plan (con’t)

Sep 2000

Product, Technology and Capabilities Product background Development status Prototyping and Manufacturing Quality documentation Risk factors

Financials Pro-forma Income Statement Pro-forma Balance Sheet Management and personal projection Uses of capital

are better starters than sustainersare better starters than sustainers

thrive on taking risks and living on thrive on taking risks and living on the edgethe edge

always enjoy a good chasealways enjoy a good chase

are revitalized by recognitionare revitalized by recognition

don’t mind making severe don’t mind making severe sacrifices for future rewards sacrifices for future rewards

Why work for a start-up company?

Sense of ownership: You are a key player in every success

and failure of the company.

Sep 2000

Hands-on experience: You will gain experience in every facet of the

business. No task too big or too small, you do it all!!

Responsible for your own success: Job description is shaped as your talents are

recognized. It is up to you to optimize your strengths and

admit your weaknesses.

Graduate School First?

More money $ $ (when you get out)

More focused learning in your specific engineering field of interest

Sep 2000

Advantages:

Disadvantages:

Longer wait for real income

More focused means its harder to find your specific field

Miss out on real world things