Ideas, Business Plans,

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Presented to VU-BME272 Sep 19,2000
Ideas, Business Plans, and Entrepreneurs
by Bob Allen, Calley Hardin Paul Clayton
Nova Bionics, Inc. Nashville, TN
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or...
Perils, Pitfalls, and Pleasures of the
Entrepreneur
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Discussion Topics

• Ideas and where they come from
• Micro-LIDs and Micro-SLAMs
• Business Plans and why we need them
• Entrepreneur wisdom
• VU graduates perspectives

Sep 2000
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Idea Overview

• 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
Sep 2000
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Micro-LIDs to Micro-SLAMs

• 1966 LID Semiconductors
• Very small size and weight
• Ultra reliability
• Eliminate custom charges
• Cost-quantity advantage

• 1992 Micro-LID Arrays
• Multi-chip semiconductors
• High density-surface mount
• Biomedical industry need

• 1999 Micro-SLAMs
• Near chip-scale (85)
• Reduced height
• Custom configuration

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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

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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 1960s (R.V. Allen, S.V. Caruso)
• Niche markets which have over-riding needs for
  ultra-reliability, small size, and low weight

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Entrepreneur Wisdom Says...
Do not check your mail while on vacation or the
day before you close on your new house.
December 29 1998...
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Entrepreneur Wisdom Says...
Never give up... Problems only create
opportunities
Major customer facilitated problems force rapid,
widespread, and long-lasting solutions
..... Always Maintain the Chase
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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

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Micro International, Inc. Nashville, TN USA
Hex Zener Assembly

• 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
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Micro International, Inc. Nashville, TN USA
Quad Diode Assembly

• 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
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Quad Diode Array Reduction
Single 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.
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Entrepreneur Wisdom Says...
Know whether you are going up or down the
entrepreneur hill and be prepared to give up
TOTAL control to expand your resources
Teamwork Limits Myopia...
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Entrepreneur Wisdom Says...
Avoid passion driven pleasures in uncharted
waters and isolated islands
Carefully Verify New Markets...
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Micro International, Inc. Nashville, TN USA
Direction Decision

• 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)

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Philosophy

• Deal Model
• Build on existing ideas
• Catalyze new ideas
• Participate in Vision Creation
• Strategy
• Structure
• Involve Student Interns
• Due Diligence
• Deal Evolution

Sep 2000
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Investment Parameters

• 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

Sep 2000
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Investment Parameters

• 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

Sep 2000
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Portfolio Seed Deals

• 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

Sep 2000
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Portfolio Pre-Seed Deals

• 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-Pare
  nts Market
• University Consortium
• Revenues linked to Proven Results

Sep 2000
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Pre-Seed Deals (cont)

• 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

Sep 2000
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Dreams of a Pre-Seed
Sep 2000
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Entrepreneur Wisdom Says...
You cant have a dream come true until you have a
dream
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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.
is an incubator and idea processor for medical
devices from concept to application.
TDR-2/08-30-00
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Mission Vision
Mission 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 Statement
To become a recognized leader in taking
biomedical technology from concept to application.
TDR-2/08-30-00
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Nova Bionics Technical Operations
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Entrepreneur Wisdom Says...
Management commits to providing the environment
for success and employees commit to having fun in
their success
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www.novabionics.com

• Home Page Internet
• www.novabionics.com

• Evaluator Intranet
• Review ideas
• Rate by category
• Submit questionnaire

• Administration Intranet
• Log ideas
• Assign Domains
• Assign evaluators

• Auto E-Mail Reminders
• Evaluator Bulletin Board and Chat

TDR-2/08-30-00
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Alzheimers Memory Walk
NOVAFIND
Caregiver Peace of Mind
Provisional patent and trademark under review.
TDR-2/08-30-00
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Long Range Tracking and Locating
Alzheimers Patient Location
Domestic Pet Protection
Home Confinement
Child Safety
0-9 Months
1-2 Years
2-3 Years
TDR-2/08-30-00
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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

TDR-2/08-30-00
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Business Plans and why we need them

• Avoid being opportunistic

• Bank Line of Credit
• Insurance Ratings

Sep 2000
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Entrepreneur Wisdom Says...
One idiot can ask more questions than ten wise
men can answer
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Business Plan Content

• Organization and focus
• Market opportunity
• Competition
• Management

Sep 2000
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Business Plan (cont)

• Product background
• Development status
• Prototyping and Manufacturing
• Quality documentation
• Risk factors

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

Sep 2000
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Entrepreneurs...
are better starters than sustainers thrive on
taking risks and living on the edge always enjoy
a good chase are revitalized by recognition dont
mind making severe sacrifices for future rewards
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Why work for a start-up company?
Sep 2000
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Graduate School First?
Advantages

• More money ? (when you get out)
• More focused learning in your specific
  engineering field of interest

Disadvantages

• Longer wait for real income
• More focused means its harder to find your
  specific field
• Miss out on real world things

Sep 2000