20180515 axonvct pitch deck v33 - thought launch€¦ · our origins are in human ehealth $11.1...
TRANSCRIPT
VetCare Technologies Corp.
Innovative Communication
May 2018 © AXON VetCare Technologies Proprietary & Confidential 1
When your pet needs emergency treatment, where is the medical history to guide the care team?
:::
at the regular vet clinic in Toronto …and not the emergency clinic in
Barrie!
2May 2018 © AXON VetCare Technologies Proprietary & Confidential
Human healthcare invests billions in medical record sharing… …because it saves lives, saves time, and saves cost
Animal healthcare wants and needs the same
AI, Robotics, Personalize Medicine
Paper, Film, Fax
Electronic RecordsDigital Images
Email, CD
Cloud, SaaS, Internet, Mobility
1980’s
2010’s
1990’s
2000’s
3May 2018 © AXON VetCare Technologies Proprietary & Confidential
Our Origins are in Human eHealth$11.1 million investment in technology
200 person years 1.3 million lines of code
Focus on technology to empower access to health information
Deployed in over 400 hospitals in
China
Cloud solution for record sharing across 40 luminary hospitals
(USA)
2D and 3D Medical Imaging GRID Computing and Storage Visual Patient
Patents in US, Canada, Australia(pending India & Brazil)
Communication and CollaborationViewing Server
Collaboration Server
Storage Node
Storage Node
Device Registry
User Registry
PIX Manager
Audit Repository
Storage Node
Storage Node
XDS Repository
Document Archive XDS Registry
GRID Manager
4May 2018 © AXON VetCare Technologies Proprietary & Confidential
Our MarketThe Equine and Companion Animal Market is shockinglylarge
USA Market for 2017 $69.36 billionØ Food $29.69 billionØ Vet Care $16.62 billionØ Supplies/OTC Medicine $14.93 billionØ Live animal purchases $2.01 billionØ Other Services $6.11 billion
Big playersØ Mars Petcare $17BØ Henry Schein $12BØ VCA $2.1BØ IDEXX $1.8BØ Banfield $780M
5May 2018 © AXON VetCare Technologies Proprietary & Confidential
Targeting Animal eHealthLimited regulatory constraints
Private medicine
Lagging human eHealth adoption trajectory
Deliver an accessible and affordable health service in the hands of every animal owner
Immediately addressable
Highly monetizable
Pent up demand for eHealth solutions
VetCare Technologies Corp.
6May 2018 © AXON VetCare Technologies Proprietary & Confidential
Experienced TeamPeter Bak, Ph.D. Chief Executive OfficerEntrepreneur with 25+ years of business and technology experience in medical imaging, electronic patient records, eHealth interoperability, and hospital IT. Founder of AxonVCT.
Ken Ono Chief Technology OfficerEntrepreneurial executive with deep knowledge at the intersection of machine learning, cloud and software development.
Nick Hoffman VP Sales and Business DevelopmentSeasoned executive with over 35 years experience in medical imaging device and software sales & marketing.
Craig Roberts DVM VP Product Management and InnovationReferral level equine veterinarian with 25+ years experience in practice and professional organizations
7May 2018 © AXON VetCare Technologies Proprietary & Confidential
Problem
Veterinarians are stuck in the 1990’s
Poor Communication and Limited Collaboration
8May 2018 © AXON VetCare Technologies Proprietary & Confidential
Solution Option #1Medical Grade Social Network
where veterinarians can aggregate patient records and share with trusted people
9May 2018 © AXON VetCare Technologies Proprietary & Confidential
Equine – Early Adopter Market / Easy to Penetrate
10.8 million horses / 16,490 vets in NA and EuropeØ Many players in the information sharing cycleØ Extremely fragmented systems and processes
Ø Very mobile practiceØ A lot of multi-media content
Desperate for a cohesive and simple solution
Care Team
Ø 12 VetsØ 20 FarriersØ 5 TechniciansØ 4 AssistantsØ Many trainersØ 2 x Equine hospitals
Horses
Ø 2350 sport horsesØ 2000 race horses
Records
Ø 25,000 diagnostic imagesØ 2,500 cases
Early Adopters
10May 2018 © AXON VetCare Technologies Proprietary & Confidential
Equine - Creating a Land Rush
An aggregated medical record is very Sticky!Everything in one place. Everything instantly accessible anytime, any device
Living life on our Medical Grade Social Network Global communication; connecting the team
Collaboration with the right context
End the day sooner: On-line Schedules, Invoices, Payment
No charge to the care teamRecords stored at no charge Medical grade apps all includes
Rush to adopt all care teams!11May 2018 © AXON VetCare Technologies Proprietary & Confidential
Equine – Go-to-Market
Monetize the horse $60/year
SaaS Metric Apprehensive Confident Target
ARPC (Annual) $60 $60 $60CAC $11.05 $7.42 $5.32LTV (5 years) $300 $300 $300 LTV CAC Ratio 27 40 56
Rapid market awareness through programs Ø AdvocacyØ InfluencerØ SponsorshipØ Social networking
Small team at all of the congregation points:
Ø Sport Horse Competitions
Ø Race Horse Competitions
Ø Auctions
Driving Adoption – B2B market with tightly connected customer group
12May 2018 © AXON VetCare Technologies Proprietary & Confidential
Companion Animal Market
Ø Hierarchical information sharing flowØ Clear value in record sharing among vetsØ Limited penetration of medical record systems
Ø Extremely large client baseØ $25bn annual spend in emerging
markets with 4.5% CAGR
387 million pets / 195,565 vets in NA and Europe
Communication and Collaboration a Burning Issue
Pyramid ModelPets flow up and down the pyramidØ ~15% of pets flow to
Speciality clinics
Ø ~5% of pets flow to Emergency clinics
Market Clarity
Value to OwnersFlowing records minimizes
duplicate testingØ X-ray $300Ø Blood work $250Ø Time $500/hr
Value to VetsØ Save timeØ Reduce costØ Make more money
13May 2018 © AXON VetCare Technologies Proprietary & Confidential
Companion Animal – Market Dominance
An aggregated medical record is very Sticky!Everything in one place. Shareable anytime, anybody, anywhere
Empower the owner with a Medical Grade “Market” Network
No charge to the care teamRecords stored at no charge Medical grade apps all included
Rush to grab all pet owners
On-line virtual visits (transaction velocity and satisfaction) –Ø Take control of cost and timeØ Expand opportunity for clinics
Expand professional services: boarding, grooming, walking,
genomics, nutrition, etc.AI Virtual Health Service – expand reach into the emerging markets
14May 2018 © AXON VetCare Technologies Proprietary & Confidential
Companion Animal – Go-to-Market
Monetize the pet $60/year
SaaS Metric Apprehensive Confident Target
ARPC (Annual) $60 $60 $60CAC $1.39 $0.63 $0.41LTV (5 years) $300 $300 $300 LTV CAC Ratio 215 476 731
Leverage the relationship between vets and clients as an awareness and conversion driver
Leverage pet insurance as a channel to the pet owner: create value to the partner through analytics on the medical record
Leverage specialty/emergency clinics to drive adoption among local
vet clinicsLeverage marketing science to
achieve rapid dominance
Launch broadly and aggressively
Driving Adoption - B2C Market with High Emotional Quotient
Launch strategyØ Prospect targetingØ Brand identityØ EventsØ Social influencer programs
-> SEO, Google Ads, Facebook, Instagram-> Develop brand for DTC sales-> Tradeshows and Competitions-> KoL, Societies
15May 2018 © AXON VetCare Technologies Proprietary & Confidential
Revenue – Combined 2018-2021
SaaS Metrics (Forecast)
Market Penetration
Apprehensive Confident Target
Total Revenue $834,719,000 $1,618,566,000 $2,909,645,800Gross Profit $794,031,000 95% $1,539,868,000 95% $2,776,834,000 95%Net Profit $753,883,000 90% $1,499,720,000 92% $2,736,686,000 94%
Apprehensive Confident Target
Vets 7.56% 14.77% 15.53%Pets 2.13% 4.26% 6.80%Horses 7.42% 11.90% 20.22%
Apprehensive Confident Target
ARPC $60 / year $60 / year $60 / year
CAC $1.19 $0.60 $0.45LTV (5 years) $300 $300 $300 CAC Ratio 252 500 666
16May 2018 © AXON VetCare Technologies Proprietary & Confidential
Net Profit – Combined Markets Cash Burn
17
$(6,000,000)
$(5,000,000)
$(4,000,000)
$(3,000,000)
$(2,000,000)
$(1,000,000)
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
$11,000,000
$12,000,000
$13,000,000
$14,000,000
$15,000,000
AprilMay
JuneJuly
August
Septem
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October
November
December
January
February
March
AprilMay
JuneJuly
August
Septem
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October
"Combined" Markets Cumulative Operating Profit Forecast
Target Confident Apprehensive Baseline
2018 2019
May 2018 © AXON VetCare Technologies Proprietary & Confidential
InvestmentNeed: $5 mm - $8 mmApproach: Go public on TSX-v through RTOAsk: $500,000 seed round +
$1.5 mm pre-RTO
Use: Working capital in preparation for RTO
Activities:Ø Roll-out equine sales (NA/EU)
Ø Secure companion animal early adopters in Canada/USØ Execute 1st phase of companion animal marketing: Plan &
Reach Ø Achieve cash flow positive by FYQ4 2018
18May 2018 © AXON VetCare Technologies Proprietary & Confidential
Exit Dynamics
Market has big players who can afford $1b acquisitionsØ MARS
Ø VCAØ Henry Schein
Ø IDEXXØ Companion First Pet Hospitals
19May 2018 © AXON VetCare Technologies Proprietary & Confidential
Competitive PositioningM
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Enterprise CollaborationInnovative Communication
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Cornerstone
AxISS is the only solution on the market that facilitates sharing of records Ø Across clinic systemsØ Across clinicsØ Among trusted parties
20May 2018© AXON VetCare Technologies Proprietary & Confidential
Cloud
Competitive Advantage & Defensibility
Frictionless Adoption
Extremely Simple to Use1st to Market
The only patient record solution in the Cloud that supports multimedia, record
sharing to constellation of care members, and collaboration tools
Ability to create and control the sharing of multi-media patient records without complex interfaces between
systems
Sign up and go
Pricing is less than a cup of coffee a day
Works on PC/smartphone over ISP and 4G
No IT support required
Intuitive User Experience following social networking paradigms
A medical grade social networking platform
21May 2018 © AXON VetCare Technologies Proprietary & Confidential