1. Method for Analysis of
Single Molecules in
Bio-Medical Research
Nesher Technologies Inc.
nanobiotech for smarter diagnostics
and cutting-edge biomedical research
Team 14
Size of Opportunity:
TAM (high-end microscopes): ~$20-40M/y
SAM (ALEX analyzers) ~100 over 5 years, Avg. ~$3M/y
Initial Idea:
Turn-key instrument of laser-based single molecule
detection technology for academic labs
Total interviews: 103
Avg/wk: 10.3

2. Business Model CanvasWeek 1

3. *
Hypothesis: Research customers in academia want standardized turnkey instruments Experiments: Interviews with academic researchers and lab directors
•Dr. Nils Walter (Prof. of Chemistry, Univ.of Michigan)
•Dr. Fareed Aboul-ela (Prof. Zewail City of Science and Technology, Egypt)
•Dr. Lori Goldner (Prof. Univ. of Massachusetts Amherst)
•Dr. Laurent Bentolila (Scientific Director of the Advanced Light Microscopy/ Spectroscopy Lab, California NanoSystems Institute
•Dr. Piotr Marszalek (Professor ofMechanical Engineering, Duke Univ.)
•Dr. David Lilly (Prof. of MolecularBiology, Director of the CancerResearch UK Nucleic Acid StructureResearch Group, Univ. of Dundee) Week 3, 30 total

4. Research Customer Archetype
•Expertise in biophysics/biochemistry
•Interested in the dynamic behavior of biomolecules
•Has published in life sciences journals
•Expertise in labeled fluorescence measurements
Dr. Nils Walter
(Professor of Chemistry,
Director, Single Molecule Analysis in Real-Time (SMART) Center, Univ. of Michigan)

5. Research
Scientist
(PI)
High end
MicroscopeCore FacilityEnd User(Graduate StudentsPostdocstechnicians) Core DirectorPurchasingAgentEnd User(Graduate StudentsPostdocstechnicians) ResearchScientist(PI) Core ManagerDepartmentHeadInfluence
Money
Academic Market Ecosystem
$100k???
we don’t have that kinda money right now!!!

6. *
Few “must have” responses
Customers need to “see” the product
Purchases may need to be funded through grants
Competitors include Leica, Picoquant, home brew systems
Customer validation required pre-purchase

7. It’s time toDecision Made

8. Business Model CanvasWeek 4

9. *29 new
Hypothesis:
•Microscope companies would want our technology as an add-on module
•Biotech/ Pharma may want special assays to augment drug discovery Experiments:
•Interviewed science/ business/ leadership people in industry
•Interviewed contract manufacturerWhat we learned:
•Have not found any needs within mainstream R&D in pharma/ biotech
•Current pharma drug discovery suppliers offer compete solutions: instruments-assays-reagents
•These methods are not yet known in R&D
•No immediate response from big microscope companies (Olympus, Leica, Zeiss, Nikon) as well as smaller ones (Picoquant, ISS, Becker-Hickl)
•Contract manufacturers not affordable now (Dr. Gary Gust (Source Scientific), David Hagebush (Lathrop Engineering) Week 5, total 59

10. It’s time to
Realization from previous interviews:
consistent need for software support
Software

11. Business Model CanvasWeek 6

12. *related to software
•Academic researchers usually build their own optical setupsSoftware is difficult to develop, willing to pay for software at ~$5K(Dr. Lori Goldner)
•Many academic customers can’t/won’t buy capitalequipment from startups, especially over $50K Willing to pay for software at ~$5K (Dr. Laurent Bentolila, Dr. Piotr Marszalek)
•Singulex (Our competitor, Single molecule detection platform)
Their main revenue is from providing SERVICES (Steve Blakely, Director of Marketing at Singulex) Week 7, 83 total

13. COGSDistribution Channels-Lessons Learned - ALEX Analyzer(OEMs: GE Healthcare, Life Technologies; Zeiss, Leica, Nikon, Olympus; for IVD: Roche Diagnostics, Siemens Healthcare)
Software
Microscope add-on (ALEX module)
(McBainMicroscopy)
Reagents/ Consumables/ Assays
(drop-ship directly from OEMs)
(SigmaAldrich, AnaSpec, Qiagen, BiosearchTechnologies) Hardware, Reagents(Thermo Fisher, VWR, Sigma) COGS R&D (20%): $1000SG&A (20%): $1000E-Commerce Costs: Payment Gateway(3%): $150AdWords Campaigns(5%): $250Discount(10%): $500Profit (42%): $2150
ALEX Software: $5000/download
30-40%
of sales

14. CAC: $3K per customer
1% adoption rate times $30K for reaching out to 1000 customers
Conferences, trade shows, webinars, publications, blogging,
3rdparty e-mail
User groups;
online tech
support
Up-sell
(2-color: $5K,
3-color: $7.5K,
4-color: $10K)
Cross-sell Services
($2K/Yr)
LTV: >$15K per customer(after 5 years)
$5K (2c-ALEX) + $2K (reagent)/year x 5 years
Get/Keep/Grow Customer Relationshipsrelated to softwareKeepViral loop
customers publish their studies and present on conferences
GetGrow

15. development
releasesFinal Business Model Canvas
Revenue Stream
Week 894 total

16. Diagram of Payment FlowsContract R&D/ Lab ServicesSW LicenseNTIAcademic/GovCustomerSub-Segment

17. Next Steps
•Continue to explore customer needs for software and services;
•Continue to upgrade software
•Continue to develop advanced cancer diagnostics(Evaluate competition; look at other forms of cancer with microRNA markers, combination of traditional biomarkers with microRNA to develop more accurate panels resulting in high clinical sensitivity AND specificity; show evidence with clinical studies)

18. *
•GE Healthcare
Noninvasive serum based lung cancer screening will be a huge opportunity (Joe Camaratta).
•USC Center for Advanced Lung Disease
Currently performing a clinical trial detecting miRNA using microarray (Dr. Alex Balekian)

19. First Pass Canvas
Low Fidelity MVP
Product/Market Fit
Left-side of the Canvas
Market Opportunity
High Fidelity MVP
Metrics That Matter
Right-side of the Canvas
Problem/Solution validation
Investment Readiness Level
• Continue to explore customer needs for
software and services;
• Continue to upgrade software
• Continue to develop advanced cancer
diagnostics
(Evaluate competition; look at other forms of
cancer with microRNA markers, combination
of traditional biomarkers with microRNA to
develop more accurate panels resulting in
high clinical sensitivity AND specificity; show
evidence with clinical studies)
Research
No-Go
(Not ready yet
for Phase II)
IRL2
IRL6
Youtube: http://youtu.be/OrWKGOwCnnY