Leash me final

A V I N A R U M U G A M , J I M F A R R I S , M A R C O G O T T I N I , R A V I G U P T A

LeashMe

LeashMe

Initial Idea

Huge Opportunity 50M NFC handsets in 2011 @ $30/handset = $1.5B 400M NFC handsets in 2013 @ $30/handset = $12B

LeashMe Team Members

Name Background Expertise Role

Avin Arumugam Payments Product/Biz Dev Co-Founder

Jim Farris Real Estate Finance/Strategy Co-Founder

Marco Gottini Consulting Program Mgmt Co-Founder

Ravi Gupta R&D(SW/Biotech)

Agile Product Dev Co-Founder

Business Model Canvas Version 1

Convenience/Usability (Easy to use, never forget)

Manufacturing partner

R&D (Expand with multi-products)Asset sale (Device, app)

Licensing Partner (IP)

Marketing and Sales

COGS (Economies of scale)

Product dev (HW, SW)

Production (Scale, Outsource)

Sales/Mktg (Brand, Prod. awareness)

Financial (Funding)

R&D Resources (Design, Dev, IP)

Support

Cost reduction (Replacement cost,

Time saving)

Self service (Packaged sales)

Mass Market smart phone owners (e.g.,

Keys, Wallets, Passports)

Direct (Web Sales, DTV)

Indirect (Partner Stores/Wholesaler)

Here’s what we did…

Got out of the building

and talked to customers

Interviewed 40 people in person –eyeball to eyeball

(40 people)

Here’s what we found (reality)…

Learned about our customers Stats on people who lose (35% of tot) and misplace (83%

of tot) stuff; 88% would buy

Pets and kids -> different problem; different customer segment

Opportunity in life-saving situations

3 customer segments: Everyday users

Avid users

Irreplaceable stuff

Teaching Team Feedback:Oren: “Did you say Kids/pets? Really! I think it's a different market/model.”


Convenience/Usability (Easy to use, never forget)




Marketing and Sales




Sales/Mktg (Brand, Prod. awareness)

Financial (Funding)


Support

Cost reduction (Replacement cost, Time savingAvoidcost by not losing

items)


Mass Market smart

phone owners (e.g.,

Keys, Wallets,

Passports)



People who lose stuff or are concerned

about losing stuff and would like to prevent

that

People who misplace stuff and need help to

find it

Corporations that enforce a solution to help employee not

lose company items

Personal assistance/automated services (if adopting a subscription model)

Sales force to target corporations

Subscription service ($X/month for basic service; pay $Y/month to add more devices)

Time Saving (Quickly find

misplaced items)

Customer Support

Support SW capabilities for device

and tags AHA!


Created mockups

Interviewed 20 more people in person using mockups and tags

Investigated competition Bought Click ‘n dig Looked at Cobra, FOFA, EZ-FIND, BiKN, ZOMM

Interviewed people in corporate world IT Manager & IT Security

at Life Technologies Planning manager at BP refinery

Investigated sales channels Talked to NFC technology advisors (phones/tags)

Tech Lead for RFID implementation at Life Technologies CEO of VivoTech NFC team at Paypal (lead/astronomer and all other 5 members) VP of biz dev at Inside Contactless

Started development of the app Created two surveys

(38 people)


Customers Avid users

Everyday users

Corporations not early adopters

Channels Mass retailers not for early stage markets

In-person Kiosks at Sport Clubs/Communities

3rd party Website/advertising access

LESSON LEARNED Mockups/wireframes are key for interviews

LONG surveys don’t work

VV

X

X


Convenience/

Usability (Easy to

use, never forget)

Manufacturing

partner


Everyday users: People who lose stuff

or are concerned about losing stuff and would like to prevent

that

Licensing Partner

(IP)

Specialty

Providers of new

high tech sport

equipment

Marketing and Sales


Customer Support

Support SW

capabilities for device

and tags


Production (Scale,

Outsource)

Sales/Mktg (Brand,

Prod. awareness)

Financial (Funding)


Support

Cost reduction

(Avoid cost by not

losing items)

Time Saving

(Quickly find

misplaced items)

Self service (Packaged

sales)

Personal

assistance/automated

services (subscription)

Everyday users: People who misplace stuff and need help to

find it

Avid users: corporate employees; company enforces solution to ensure people have

their equip with them

Avid users: sportmen / travellers / hobbists

Direct (Own Website, DTV)

ONLY WHEN MAINSTREAM Indirect

(Partner Stores/Wholesaler)

•ONLY WHEN MAINSTREAM Sales force

to target corporations

In person or kiosks at-Sport Clubs/

Communities/

Indirect - specialized stores (sport/luggage stores;

travel agencies)

Subscription service ($X/month for basic

service; pay $Y/month to add more devices)

Corporations


Talked to advisors Technology industry experts on prototype functionalities

Technical architect at NXP

Biz dev manager and biz dev director at NXP

Head of Mobility at Software Services

HTC mobile platform expert

Talked to insurance providers

Owner of PVI Insurance

Franchise owner of State Farm

Commercial broker at Farmers

Insurance actuary at Liberty Mutual

Talked to apparel manufacturers

VP of Operations at Aviator Nation

Ex Director of Operations at Prada

Head of merchandising at Nike

(21 people)

Here’s what we did… (cont.) Created Integrated financial statements (5 yrs and 1st yr month-to-month)

BoM

Payment Flows

Pricing Model

Surveys (70 responses)

Developed Prototype (iPhone and Android)

(70 people)

Revenue and cost model

Financial projections and valuation


Insurance providers – not viable channel

Apparel Manufacturers – Alternate channel possibility

LESSON LEARNED Surveys require lots of design time and iterations to be

effective

X

Result of surveys

00.20.40.60.8

1

Lo

cate

Fea

ture

s

Tra

ck

Ch

eck

list

Features

-0.2

-0.1

0

0.1

0.2

Online live

Phone Live in shop

FAQ

Support

-0.8

-0.6

-0.4

-0.2

0

3 tags 5 tags 10 tags

# of tags

0

0.5

1

1.5

2

Price


Convenience/

Usability (Easy to

use, never forget)

Manufacturing

partner

R&D (Expand with multi-products) Asset sale (Application & Tags)



that



Licensing Partner

(IP)

Specialty

Providers of new

high tech sport

equipment

Marketing and Sales


Customer Support

Support SW


and tags


Production

(Scale, Outsource)

Sales/Mktg

(Brand, Prod.

awareness)

Financial (Funding)


Support

Cost reduction

(Avoid cost by not

losing items)

Time Saving

(Quickly find

misplaced items)


sales)

Personal




find it




Direct (Own Website, DTV)Indirect (3rd Party

Retailers)


(Partner Stores/ Wholesaler)


In person or kiosks at-Sport Clubs/Communities


travel agencies)

Application Sales (Item Vendor pays for the tag;

eg wallet, bag, shades, watch)

Apparel Manufacturers

Possible pivot (Monetization of LeashMe Technology)

Replacement of lost items being the first notified party of lost item of importance through

LeashMe technology

Register items with LeashMe including picture of the item

Prevent item loss thanks to LeashMe

If item is lost facilitate replacement items of same/similar/better quality at lowest possible price via Amazon, eBay, etc

Monetize by revenue share if item is purchased

Back of the envelope calculation

1,000,000 items (tags)

20% items lost/year

$50/item

TOT value: $10,000,000

2% replacement commission

TOT revenue: $200,000

10,000,000 items (tags)

30% items lost/year

$100/item

TOT value: $300,000,000

3% replacement commission

TOT revenue: $9,000,000

50,000,000 items (tags)

35% items lost/year

$150/item

TOT value: $2,625,000,000

3.5% replacement commission

TOT revenue: $91,875,000

Financial analysis

Possible pivot Cont. (Promotion/Distribution of LeashMe Tags)

Partnership with CC companies to help keep track of high value items

Discussed with PM @ AMEX and Cap One about complementing insurance program with LeashMe

Won’t work for all top claim items (needs tag re-engineering)

Need a collaborative financial analysis to prove feasibility

AMEX moving into mobile apps with SERVE so possible good timing

Evolution of LeashMe Business Model Canvas


Convenience/Usability (Easy to

use, never forget)




Marketing and Sales




Sales/Mktg(Brand, Prod.

awareness)

Financial (Funding)


Support

Cost reduction (Replacement

cost, Time saving)


Mass Market smart phone owners

(e.g., Keys, Wallets, Passports)




Convenience/Usability (Easy to

use, never forget)




Marketing and Sales




Sales/Mktg(Brand, Prod.

awareness)

Financial (Funding)


Support

Cost reduction (Replacement

cost, Time savingAvoid cost by

not losing items)


Mass Market smart

phone owners

(e.g., Keys, Wallets,

Passports)



People who lose stuff or are concerned

about losing stuff and would like to prevent

that

People who misplace stuff and need help to

find it

Corporations that enforce a solution to help employee not

lose company items

Personal assistance/automated services (if adopting a subscription model)


Subscription service ($X/month for basic service; pay $Y/month to add more devices)

Time Saving (Quickly find

misplaced items)

Customer Support

Support SW capabilities for device

and tags


Convenience/

Usability (Easy to

use, never forget)

Manufacturing

partner




that

Licensing Partner

(IP)

Specialty

Providers of new

high tech sport

equipment

Marketing and Sales


Customer Support

Support SW


and tags


Production

(Scale, Outsource)

Sales/Mktg

(Brand, Prod.

awareness)

Financial (Funding)


Support

Cost reduction

(Avoid cost by not

losing items)

Time Saving

(Quickly find

misplaced items)


sales)

Personal




find it




Direct (Own Website, DTV)


(Partner Stores/Wholesaler)

•ONLY WHEN MAINSTREAM Sales force

to target corporations

In person or kiosks at-Sport Clubs/

Communities/


travel agencies)



Corporations


Convenience/

Usability (Easy to

use, never forget)

Manufacturing

partner

R&D (Expand with multi-products) Asset sale (Application & Tags)



that



Licensing Partner

(IP)

Specialty

Providers of new

high tech sport

equipment

Marketing and Sales


Customer Support

Support SW


and tags


Production

(Scale, Outsource)

Sales/Mktg

(Brand, Prod.

awareness)

Financial (Funding)


Support

Cost reduction

(Avoid cost by not

losing items)

Time Saving

(Quickly find

misplaced items)


sales)

Personal




find it




Direct (Own Website, DTV)Indirect (3rd Party

Retailers)


(Partner Stores/ Wholesaler)


In person or kiosks at-Sport Clubs/Communities


travel agencies)

Application Sales (Item Vendor pays for the tag;

eg wallet, bag, shades, watch)

Apparel Manufacturers

LeashMe

Thank you to the teaching team, mentors, TA, and all the advisors who helped us

during our journey!

Leash me final

Education

Transcript of Leash me final