anu thubagere breadagami_fri
TRANSCRIPT
Anu ThubagereGraduate StudentBioengineering
Fadl SaadiGraduate StudentMaterials Science
Andrew HoffGraduate StudentMaterials Science
Matt GethersGraduate StudentBioengineering
BreadagamiRevolutionize Membrane Protein Crystallography
Day 1: 16Day 2: 10Day 3: 11Day 4: 6 Total Interviews: 42
What we thought on Day 1
Initial thoughts:• Target market would be Academics and
pharmaceutical companies who wished to do in-vitro studies
• Spatial Control main selling point
Novel Technology: Ability to tether biomolecules such as DNA/RNA/Proteins on a wafer
We can provide a scaffold onto which small molecules and biologics can be templated to allow for experiments with high spatial control.
Academics and pharmaceutical companies who want to test interactions between small molecules and biologics with high spatial control.
We provide the chip and the DNA Scaffold. The customer provides the oligo “staples” that are conjugated to the molecules of interest.
Advertising in journals. Could market services through larger supplier like Invitrogen, Sigma.
Either direct sale to customers or payment from suppliers when each chip is bought.
Must make chips. Make “master mix” that is added to oligo staples. Must maintain advertising in journals and other venues.
Access to E-beam lithography. Making master mix. Must cultivate relationships with oligo companies. Relationships with suppliers?
Oligo manufacturers. Perhaps strike agreement making chemistry conjugating molecule of interest to oligo standard part of repertoire. Perhaps they could have a pool of oligos that are used specifically for our devices.
Also need an agreement with facility that has electron beam lithography capability.
Must buy chips, constituents of master mix. Need storage facility. Need access to or need to own SEM.
Business Canvas V1
What we learned on Day 1
• Found three potential markets for our technology– Stem Cell Researchers– Cancer Pharmaceutical Companies– Protein Crystallography
• No silver bullet yet, many suggestions are for fields outside of experts’ own
We can provide a scaffold onto which small molecules and biologics can be templated to allow for experiments with high spatial control.
Academics and pharmaceutical companies who want to test interactions between small molecules and biologics with high spatial control.
We provide the chip and the DNA Scaffold. The customer provides the oligo “staples” that are conjugated to the molecules of interest.
Advertising in journals. Could market services through larger supplier like
Invitrogen, Sigma.
Direct sales
Must make chips. Make “master mix” that is added to oligo staples. Must maintain advertising in journals and other venues.
Access to E-beam lithography. Making master mix. Must cultivate relationships with oligo companies. Relationships with suppliers?
Oligo manufacturers. Perhaps strike agreement making chemistry conjugating molecule of interest to oligo standard part of repertoire. Perhaps they could have a pool of oligos that are used specifically for our devices.
Also need an agreement with facility that has electron beam lithography capability.
Must buy chips, constituents of master mix. Need storage facility. Kavli Nanoscience Institute partnership.
Eliminate uncertainty in quantity of stimulants
Simplify control of molecular orientation
Stem cell researchers
Crystallographers
Cancer pharmaceutical companies
Trade shows, Conferences, Publications, Internet
Shipping
Personal Assistance
Automated Service
Word of mouth
Yearly subscription model
Kavli Nanoscience Institute (Caltech)
Silicon Wafer Supplier
Integrated DNA Technologies
Glen Research
Product development
Shipping
Customer Service
Technical expertise
Fabrication Facilities
Business Canvas V2
What we learned on Day 2
• Interviewed 4 Protein Crystallographers– 3 of them said they were ‘not interested in our product at all’– 1 said it was very interesting for Membrane Protein
Crystallography• One third of all proteins• Very difficult to obtain crystal structure
• Started winnowing interesting fields and focusing on those where technology could have maximum impact– Removed cancer research– Ceased searching for new fields
• Started resorting to cold calls
Must buy chips, constituents of master mix. Need storage facility. Kavli Nanoscience Institute partnership.
Make crystallization faster & simpler
Stem cell researchers
Membrane Protein Crystallographers
Cancer pharmaceutical companies
Trade shows, Conferences, Publications, Internet
Automated Service
Word of mouth
Yearly subscription model
Kavli Nanoscience Institute (Caltech)
Silicon Wafer Supplier
Integrated DNA Technologies
Glen Research
Product development
Shipping
Customer Service
Technical expertise
Fabrication Facilities
Differentiate cells with much higher yield and greater reliability
Direct Sales Force
Eliminate uncertainty in quantity of stimulants
Simplify control of molecular orientation
VWR International
Direct sales
IP
Business Canvas V3
Vendor
What we Learned on Day 3
• Membrane Protein Crystallographers are good early adopters – Many have resorted to in house technology to
resolve situation– Focus of Membrane Protein Crystallography
• Specialized market limited need for Vendors• Trade shows and conferences are extremely
important in this field
Must buy chips, constituents of master mix. Need storage facility. Kavli Nanoscience Institute partnership.
Make crystallization faster & simpler
Stem cell researchers
Membrane Protein Crystallographers
Trade shows
Get: Word of mouth & Publications & Conferences
Yearly subscription model
Kavli Nanoscience Institute (Caltech)
Silicon Wafer Supplier
Integrated DNA Technologies
Glen Research
Product development
Shipping
Customer Service
Technical expertise
Fabrication Facilities
Direct Sales Force
Direct sales
IP
Keep: Customer Service
TEM Manufacturers
Grow: Cross Selling
VWR International
Problem: Crystallizing Membrane Proteins “It’s voodoo”Best case: couple monthsOften: Never
Solution:-Easy to use kit-Works for all-One tenth of the time required
Vendor
SBIR/STTR
Business Canvas V4
What we learned on Day 4
• Numbers– Time scale– Cost– Yield
“[If you can do this], it would be revolutionary…the world would be at your door”James BowieProfessor and Vice-Chair; Department of Chemistry and Biochemistry, UCLA-DOE Institute for Genomics and Proteomics and Molecular Biology Institute
Get: Word of mouth Publications Conferences
Kavli Nanoscience Institute (Caltech)
Silicon Wafer Supplier
Integrated DNA Technologies
Glen Research
Shipping
Customer Service
Fabrication Facilities
Keep: Customer Service
Grow: Cross Selling
SBIR/STTR/Angel
Current Business Canvas
Personnel
Conference Travel
Product development Problem: Crystallizing Membrane Proteins “It’s voodoo”Best case: couple monthsOften: Never
Solution:-Easy to use kit-Works consistently-One tenth of the time required
Trade shows
Direct Sales Force
Technical expertise
IP
Direct sales
Membrane Protein Crystallographers -Grad Student-Postdoctoral Scholar-Staff Scientist
Storage and Work Facility
Kavli Nanoscience Institute partnership
Consumables (wafers, oligos etc.)
We can provide a scaffold onto which small molecules and biologics can be templated to allow for experiments with high spatial control.
Academics and pharmaceutical companies who want to test interactions between small molecules and biologics with high spatial control.
We provide the chip and the DNA Scaffold. The customer provides the oligo “staples” that are conjugated to the molecules of interest.
Advertising in journals. Could market services through larger supplier like Invitrogen, Sigma.
Either direct sale to customers or payment from suppliers when each chip is bought.
Must make chips. Make “master mix” that is added to oligo staples. Must maintain advertising in journals and other venues.
Access to E-beam lithography. Making master mix. Must cultivate relationships with oligo companies. Relationships with suppliers?
Oligo manufacturers. Perhaps strike agreement making chemistry conjugating molecule of interest to oligo standard part of repertoire. Perhaps they could have a pool of oligos that are used specifically for our devices.
Also need an agreement with facility that has electron beam lithography capability.
Must buy chips, constituents of master mix. Need storage facility. Need access to or need to own SEM.
Business Canvas V1
Workflow for creating Membrane Protein Crystals
Cloning
Heterologous expression
Membrane preparation
Screening for detergents
Solubilization
IMAC purification
Gel filtration
Ion exchange Protein characterization
Crystal screening
Crystal optimization
X-ray diffraction
Our Target
Newby, Z, Nature Protocols 4, 619 (2009)
Day in the Life Diagram
Micelle + Protein + Detergent + 10 Plate Crystal Analyze StructureRobot National Lab
2 days 1-3 Months 10% Structural Information
90%
Micelle + Protein + Detergent + 10 Breadagami Crystal Analyze StructureRobot Local
equipment
2 days Days 90% Structural Information
After
Before
FailPass
Fail
Pass
10%
Total Cost: $200,000
Total Cost: $100,000
• User• Some discretionary funds• Early adopter
Grad Students and Techs
• User• More discretionary funds• Early adopter
Post-Doc
• User• More discretionary funds• Early adopter
Staff Scientist
PI• Influencer• Economic Decider• Possible Saboteur
Journal Reviewer
• Influencer• Saboteur
Funding Agencies
• Influencer•Economic Decider
Department Head
• Influencer
• ProviderReagent/Equipment Suppliers
Archetype/Ecosystem
Minimum Viable Product
Patterned chip Breadagami
BuffersOther Vendors
• Easy to use• Works with off the shelf consumables• One size fits all
2-D protein crystals
Value PropositionValue proposition: • Remove uncertainty• Order of magnitude decrease of time spent to obtain structural
information of membrane proteins• Higher research throughput • Less consumablesValue added to customer:• Old Process: Cost of obtaining structural information of a membrane
protein: $200,000 “Likely an underestimate”*
• New Process: Target cost of obtaining structural information of a membrane protein: ~$100,000 – Graduate student cost: 9 months $37,500– Consumables: $12,500– Breadagami: $50,000 (@$5,000/chip)
*Prof. James Bowie
Addressable MarketTotal Addressable Market (TAM): ~300 researchers worldwide
Served Addressable Market (SAM): ~150 researchers in USA
Current Target Market: 75% of SAM @ $60k/year/researcherEstimated sales of ~$7 million/year
Future trends: • Large increase in number of researchers & funds• New customer segments develop (pharma)
Customer Relationships
Get: Outreach with Trade Shows Conferences WorkshopsPartnering with prominent researchers
Keep: Automated, simple system for reordering Email updates on new uses of technology
Grow: Cross selling products (buffers, etc.)
Revenue Model
BreadagamiGrad Student/Tech
Post-Doc/Senior scientists
Principal Investigator
• Revenue stream: Direct Sales, • Pricing: Fixed, value, volume pricing, $5000/chip• ~10 chips for 1 crystal ie $50,000• Possible cut off limit for Grad Students & Tech
• Revenue Streams: Direct Sales• Pricing: Fixed, value, volume
Next Steps
• Talk to more Membrane Protein Crystallographers to refine value proposition
• Create prototype• Patent• Publish
What we Really Learned
• You don’t know everything from Day 1• Go and talk to potential customers• Don’t be discouraged when you get bad news• Situation is always more complex than
previously thought• Being an Entrepreneur is tough!
Acknowledgments
• Interviewees• Classmates• Charles House • Andy Sack • Ken Pickar• Jon Feiber• Steve Blank
Channel
Breadagami
Local (University) Marketplace
Customer
• Typical vendors would be Sigma, VWR, Invitrogen
• Eager early adopters• Small community
Vendor
Revenue Model
Year 1 (of sales)• Cost:
– Raw material ~$300/wafer – Lab space ~$13,000/year (1
person space)– Kavli Nanoscience Institute
~$30,000/year– Cost of personnel ~$50,000/year
• Goal: sell 100 kits in year 1 @ $5000/kit– Revenue: $50,000– Cost: $80,000– Profit: -$30,000
Year 2• Cost:
– Raw material ~$300/wafer – Lab space ~$26,000/year (2 person
space)– Kavli Nanoscience Institute
~$60,000/year– Cost of living ~$200,000/year
• Goal: sell 1000 kits in year 2 @ $5000/kit– Revenue: $5 million– Cost: $586,000– Profit: $4.4 million