Vantage Realized is building a wheelchair attachment that increases mobility and reduces joint damage

for manual wheelchair users.

Total Interviews: 88

JJ Tang

● Hustler

● Team Leader

● BS in Finance from ASU

Gordon Freirich

● Product Designer

● BS Mechanical Engineering

from ASU

● Automotive background

Kalan Kircher

● Hustler

● Program Manager at Abbott

Hematology R&D

● BS Biomedical Engineering

from Northwestern

Vrunda Rathod

● Hustler

● MS in Biological Science

Policy from Georgetown

● BS Biomedical Engineering

from USC

Kirt Kirtland

● Awesome Mentor

Active manual

wheelchair users

What we thought

Manual Wheelchair users would

pay for a nonelectric solution

Insurance always pays for

new wheelchair productsOur primary customers

are wheelchair users

Only long-term users are

interested in new products

We could sell through all

channels concurrently

Wheelchair Users

Experiments

Doctors and Therapists

Industry

4 week and 37 total

interviews at pivot

(21)

(10)

(6)

What we learned:

Past/present competitors are failing:

Wijit Nu-drive Rio mobility pivot Magic wheels

Market is difficult to penetrate and there is a lack of reimbursement:

Limited/no customer desire:

“Sounds like a great product, but it’s not for me” “It’s out of my price range”

Active manual

wheelchair users

What we thought

Wheelchair users

concerned about

bumps and cracks.

Wheelchair

Manufacturers

Durable Medical

Equipment

Suppliers

Online Retailers

The Pivot:

Many users cited this as

their biggest challenge.

People want to buy online or

from a trusted store, not

from a salesman.

Vantage Realized has developed a caster wheel to improve safety and

comfort for manual wheelchair users

Caster EcosystemInformation

Physical Goods

Money

CM

Testing

Labs

Online

Retailers

Advocacy

Groups

Vantage

Realized

Wheelchair

Manufacturers

DME

PT’s &

OT’s

User

$6

$45

$75

$75

$150

$150

Production

User

Support

Distribution

Financial/Operations Timeline

2014 2015

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Cash

Rese

rve

Series A $1 MM

Desig

n M

ilesto

ne

sN

etw

ork

ing/S

ale

s

Proof of

concept

Functional

Prototype

One OEM agreement

Sell Online

Patents

Filed

Manufacturing

Prototype

Reliability Testing

Pitch OEM to manufacturers

Commercial Manufacturing

Two OEM agreements

New Product R&D & Exploring New Markets

Validation Interviews

Lisa Stein, CEO of Spinlife

• Multiple patents necessary

• DME’s are consolidating

significantly over the next year

• Partner with a large

manufacturer

David Lippes, CEO of Ti-Lite

• Manufacturers expect 40%

margins

• Retailers expect 50% margins

• Need a deep product portfolio to

sustain the business

“If you can build something

that does that, people will

buy it”

“There is a lack of

innovation in the market

and I’m still selling

products from 20 years

ago. This product will blow

people away.”

Manufacturing cost

~$6Most likely asset sale vs. licensing

Final Canvas

Strong emphasis

on protective IP

End users don’t rely on

magazines for new product

information.

The wheelchair

manufacturers are the best

way to sell through DME or

online retailers.

Where We Are Now

First product in a viable business

We will be pursuing the product outside of class

Next Steps:

• Engage legal expert and file provisional patents

• This week we are meeting with Ti-Lite’s Outfront (a subsidiary

building new wheelchair products)

• Continuing to build a product portfolio

Investment Readiness Level

Appendix

Market - Casters

Units Amount*

Total Wheelchair market 3300000 $495,000,000

Manual Wheelchair users

(TAM)

1,980,000 $297,000,000

SAM (Active manual

wheelchair users)

1,188,000 $178,200,000

Target Market Year 1 Year 2 Year 3

0.5% 1% 3%

$891,000 $1,782,000 $8,910,000

*Assumes 1 pair purchased every year at $150

Partner Relationship

DMEContract

Manufacturers

Vantage

Realized

Information

Physical Goods

Money

Online

Marketplace

Wheelchair

Manufacturer

Advocacy

Groups

Testing Labs

$10-15k tooling

$6-10/pair

$50,000

samples,

labor

$50,000

samples, travel,

lawyer (not to

manufacturer)

Hypothesis

We thought that... Corresponds to

Canvas...

Manual wheelchair users would jump at the chance to move more

easily without electricity

Value Proposition

We could sell through all possible channels concurrently Channels

We would cater exclusively to long-term users Customer Segments

Our main customers were wheelchair users Customer Segments

Insurance would cover products that provided benefit in all cases Not covered on canvas,

reference in customer

segments?

Metrics that Matter

• How many units do we sell:o DME sales

o Web

o Manufacturer

• Cost

o Tooling

o Unit cost

o Burn rate/ G&A

o Customer Acquisition/Marketing

o Customer Lifetime Value

• Sales

o DME/consignment

IP Plan

● Avoid automotive patents

● Aim for personal mobility-specific

● Include aesthetics as patent criteria○ Current standard is focusing on geometric patterns

best suited to buckling

Next Steps: Upcoming Meetings

• Marilyn Hamilton, Founder of Quickie

Wheelchair Company

• Bob Hamilton, Wheelchair dealership owner

• Carl Mulberry, President of Columbus

Medical Equipment

Next Steps: Other Markets

● Strollers: 6.64 million units total

○ Total Market: $332.2 million a year

○ Assuming $200 average cost of a stroller, 1.66

million strollers were sold

○ Average of 4 wheels

● Hospital Beds: 6.92 million units total○ $3b market a year

○ Averaging cost of 10 hospital beds, average bed is

$1735

○ Approximately 1.73 million beds sold last year, 4

wheels

Year 1 Year 2 Year 3

Office $25,000

Prototyping Lab $25,000

Testing Lab (cost under activities)

Website $3000/year

Patents $15,000

Trademark $300

Contract Manufacturer $10k + $6 * production qty

Quality Contractor (cost under activities)

Capital/Investors Equity

Billing System $1,000

Advisors Equity

Customer Service Rep $30,000

Sales Rep $125,000

Supply Chain Specialist $100,000

Marketing/ Brand Specialist $100,000

Physical Intellectual Financial Human Resources Contracted

Resources

Year 1 Year 2 Year 3

Develop 3 new caster designs -

$30,000

Expand casters beyond

wheelchair market - $30,000

Receive patent on 1 caster

design- $10,000

Begin pitching to Manufacturers -

$50,000

Have 1 licensing agreement -

$50,000

Have 3 licensing agreements -

$50,000

Casters being sold in 10% of

DME’s in California and Arizona -

$50,000

Casters being sold in 20% of

DME’s in California and Arizona -

$50,000

Casters being sold in 30% of

DME’s in California and Arizona -

$50,000

Selling casters on 3 medical

equipment websites - $3,000

Selling casters on 10 medical

equipment websites - $5,000

Selling casters on 25 medical

equipment websites - $8,000

Sign agreement, build molds with

one contract manufacturer -

$10,000

Test prototype samples for

reliability and strength - $15,000

Supplier quality audits - $10,000 Supplier quality audits - $10,000

Activities

Sales and ExpensesYear 1 Year 2 Year 3

Unit

s Dollars Total Units Dollars Total Units Dollars Total

Gross Sales $660,000 $1,140,000 $1,680,000

DME Sales 3000 $100 $300,000 7000 $100 $700,000 10000 $100 $1,000,000

Licensing 0 $80,000 $0 1 $80,000 $80,000 4 $80,000 $320,000

Online Marketplace 3000 $120 $360,000 3000 $120 $360,000 3000 $120 $360,000

Expenses $275,300 $764,000 $1,187,000

G&A $4,000 $204,000 $454,000

Materials and

Manufacturing $56,000 $200,000 $218,000

Marketing $155,000 $255,000 $410,000

Research/Protoyping $50,000 $75,000 $75,000

Intellectual Property $10,300 $30,000 $30,000

Net Revenue $384,700 $376,000 $493,000

Initial Investment Needed

Year 1 Year 2 Year 3

G&A $4,000 $204,000 $454,000

Materials and

Manufacturing $56,000 $200,000 $218,000

Marketing $155,000 $255,000 $410,000

Research/Prototyping $50,000 $75,000 $75,000

Intellectual Property $10,300 $30,000 $30,000

Expenses $275,300 $764,000 $1,187,000

We need $1 million in startup investment