2. Team
in
a
graphic
format
CEO
General
Partner
VP Sales
CTO
Venture
CFO
Partner
Roger
Rabbit
Fred
Flintstone
Homer
Simpson
Betty
Boop
CAS
ICCP Ventures
WOODSIDE
FUND
SFU
OKC Innovation Center
BSEE UC Irvine
MBA Stanford
BA & MBA
Northwestern
Kellogg
BA Holy Cross,
MBA Wharton
BA Principia
College, MBA
NYU-Stern
Startup Capital Ventures!
2
3. Agenda
Solution
Market
Technology & IP
Roadmap
Financials & Financing
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4. 50,000
Foot
View
• Mantra: The Promise Of Framastat Delivered
• Pain: Location Systems are expensive &
•
•
•
•
•
•
•
perform poorly
Painkiller: low power, low cost, long range,
high accuracy solution
Initial Market: $XB inventory, shrinkage &
asset tracking markets
Technology: Magic Pixie Dust (MPD)…
Key IP: MPD is patented!
Team: Rock star pixies
Invested: $X.X from Intel, SCV
Startup Capital Ventures!
Seeking: $6M
5. Status
Market Development: $11M in signed trials with $180M rollout value
◦
◦
◦
Giant Retailer
Boeing
Monsanto
Product
◦
Complete demonstrable system incorporating all elements: active &
passive tags, reader / digital antennas, master readers, real-time
software
Capabilities:
◦
◦
Extremely low power RF-CMOS based Location System & Framastat
Software
Six employees
Founded 2006
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6. Pain:
Location
System
Too
Slow,
Costly
&
Not
Accurate
Enough
To
Solve
Real-‐World
Problems
• Retail shrinkage management requires low cost,
•
•
•
high accuracy & real time not possible today
Inventory management requires low cost & high
accuracy not possible today
Asset tracking requires real time & high accuracy
not possible today
Other Application
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7. Painkiller:
Company
Makes
Location
System
Practical
&
Affordable
• 100X greater accuracy than other locational
•
•
•
•
systems (2 cm / 1 inch)*
Real time system
100X lower tag cost (we will not price 100X
lower!)
3X greater range (up to 30m / 100 feet)
10X lower tag power consumption
◦
5X greater battery life in active systems
• 10X lower system cost
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8. Company
Is
100x
More
Accurate
Than
Other
Location
Systems
Them
1
Them
2
US!
Them
3
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9. Company
Has
Lowest
Deployment
&
Ownership
Cost
Deployment Cost
100x
Them 1
Them 2
10x
1x
Them 3
US!
$1
$50
$100
Recurring Cost
(Tag Cost)
Lowest cost of ownership at the highest
performance
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10. Company
Vs.
Competitors
Features
&
Costs
Company
Tag
Competitor 1
$
$
yrs.
yrs.
Packaged tag cost
$
$
Tag cost / year
$
$
Reader / D.A.
$
$
Master Reader
$
$
Software
$
$
1,000 tag system cost
$
Competitor 2
$
Tag battery life
Locational accuracy
Range
Real Time
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11. Agenda
Solution
Market
Technology & IP
Roadmap
Financials & Financing
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12. Our Industry Ecosystem
Our Customers
.
Representative Vendors
Chips
2012
TAM
PA Salsa
Systems
Nacho Makers
Restaurants
COMPANY
$450M
$4-6B
RF Subsystems
$36B
$450B
Sources: iSuppli 06, IDC March 12
12
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13. Our
Market
Is
Growing
Fast
• Exponential growth rate based on current (2G) products
• Introduction of Company’s low cost / high performance
products will expand the market for Location System.
Source: Frost and Sullivan (2012)
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14. Market
Forecast
by
Product
• With Company’s introduction of low cost tags and readers, we
expect the Hardware segment to shrink while the Tags segment
grows due to more deployments
Source: Frost and Sullivan (2012)
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15. Large
Application
Markets
Will
Be
Energized
By
Lower
Cost
Solution
• Asset tracking: $
• Inventory management: $
• Shrinkage management: $
• Other 1: $
• Other 2: $
Sources:
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16. Competition
Is
Fragmented
(AeroScout
Values
Industry
at
$3.6B)
Source: Frost and Sullivan (2012)
•
•
•
•
•
No dominant player / technology in the market
AeroScout was acquired in 2012 by Stanley Black & Decker for more than $200 million
Most players are focused on a specific vertical
Company’s products apply to all segments/verticals
Company’s dramatically lower cost + higher performance solution could produce a dominant crosssegment player
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17. Current
Customer
Status
–
NOTE
LOIs
where
present
Retail: Betacustomer Systems
◦ Five year LOI: $30 million (in US alone) by year 3 with growth planned to
◦
◦
◦
nearly 500M tags / year in five years
Theft prevention, merchandizing, compliance
Initial rollout in 2013
Addressable market > $10 B
U.S. Government: Osterhout Design Group
◦ 3 years revenue : $20 million with exponential growth for both active and
◦
◦
◦
passive tags
Osterhout Design Group
Warehouse inventory management and goods tracking
Addressable market > $1 B
Manufacturing: Boeing & Monsanto
◦ 3 year revenue: $5 million with exponential growth for both active and
◦
◦
passive tags
Tools and parts tracking
Addressable market > $1 B
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18. Agenda
Solution
Market
Technology & IP
Roadmap
Financials & Financing
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19. System
Overview
Framastat
Components
Tags (passive or active)
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20. Advantages
of
Company’s
Solution
Low Cost &
Small Form Factor
•
•
Readers are 100 times less costly and 20 times smaller than Gen2
Lowest cost of ownership
Long Range &
Low Power
•
•
Increased read distance (50-100 meters)
Power : any source, any frequency
Precise Location
of Many Tags
•
•
Achieve resolutions of 2-3 inches
1000s of reads per second per reader
Multipath Fading
Immunity
•
•
Robust tag detection and location determination
Signal propagates to reader through openings and cracks
Low Power
& Long Life
•
•
Tag chip consumes average of 2µW (including memory)
Enables alternative power options: micro solar cell, MEMS harvesters, etc.
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21. Operation
Of
Framastat
System
1
Narrowband signal powers tag,
initiates query session
2
UHF
Beacon
Narrowband
Transmitter
Receiver harvests RF
power and wakes up
UHF
Passive UWB Tag
NB Receiver +
Power Harvester
4W EIRP: 10m range
Digital Antenna
UWB Receiver
Single Chip/ Very Low Cost
3
UWB
UWB
6dBm: 50-100m range
Memory + Logic
UWB Impulse
Transmitter
Tag transmits UWB
impulses
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22. Current
State
Of
Development
Passive Tag:
§
§
§
§
Chip:180 nm CMOS, 1x1 mm
Tag substrate: 4 cm x 8 cm
Sensitivity: -15 dBm (915 MHz) @2uA load
Impulse strength: 6dBm
UWB Antenna
Narrowband Antenna
Active Tag:
§
§
§
§
Chip:180 nm CMOS, 0.5x0.5 mm
Tag substrate: 2.5 cm x 2.5 cm
Range: more than 100 meters
Current: <1uA (cell life X yrs.)
Digital Antenna (DA) Reader Chip:
§
§
180 nm CMOS, 2.5x2.5 mm
Sensitivity: ~ 60 dBm
Reader Antenna:
§
§
§
Wide angle circularly polarized 2”x2”
High gain circularly polarized 2”x4”
High gain linearly polarized 4”x4”
Software:
§
Software for identification and location
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23. Strong
Patent
Protection
•
Issued: Asymmetric Dual Mode Communications
◦ US Patent # 7,180,421; filings include PCT as well as individual countries Japan,
◦
◦
China, and European Union
Radio frequency tag and reader with asymmetric communication bandwidth
Integration of ultra wideband and narrowband (continuous wave)
•
Allowed: Low Power Modulation and Massive Medium Access
Control
◦ US Patent Application # 20090051496 is being granted; PCT is filed
•
Allowed: Inductive Antenna Coupling
◦ US Patent Application # 20090264067
•
+ 6 other pending/provisional patents filed
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24. Agenda
Solution
Market
Technology & IP
Roadmap
Financials & Financing
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25. Achievements So Far…
Today
Technology & IP
Product platform completed
3G η=30% BW=100 MHZ •
• Engaged at&t,
Alcatel-Lucent, ADC,
Cisco/Navini, etc.
Filed 12th patent application •
3G & 4G Alpha Prototypes Demos •
“B” rev completed •
• Acquired SeRon Technologies
Hired VP of Engineering •
Townsend and Townsend
issued IP “freedom to operate” •
• Engaged Chinese prospective customers
“A” rev completed •
& partners Linkwave, Huawei, ZTE, &
Mobi Antenna
1st full time engineering
employees •
• Beijing subsidiary
1st
predistortion
architecture
patent issued •
25
Business Development
• Sunnyvale office
• Closed $1M FFF Convertible Notes
• Incorporated in Cayman Islands and Delaware
Startup Capital Ventures!
26. Where We’re Going…
Technology & IP
2nd Generation RRH/DAS •
Interference Cancellation System Repeater
3G PA η=45%
4G η=28% BW=Ultrahigh •
Reconfigurable PA
3G η=42%
4G η=25% BW=200 MHz •
• Q2: TD-LTE
• Q3: 1st Qualifications, China Production Starts
Linear Repeaters & RRH/DAS Beta Testing
• Q2: 1st Certification & Production Release
3G η=40% BW=100 MHz
4G η=23% BW=100 MHZ •
• Q1: First Customer Samples for Field Trials
Full Characterization, Quals Begin
Sales & Marketing Team In Place
• Q4: Series A Closing
Business Development
• Q4: Pre-Production Units for Lab Trials
Today
26
26
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27. Agenda
Solution
Market
Technology & IP
Roadmap
Financials & Financing
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28. Financial Summary: Breakeven
In 2010 With $12M Financing
2008
Revenues ($K)
Gross Margin ($K)
Gross Margin (%)
Expenses ($K)
Net Income BT ($K)
Investment ($K)
Headcount
2009
140
68
49%
5,101
(5,116)
10,000
43
2010
2011
2012
2013
1,655
515
31%
7,809
(7,318)
12,000
70
26,625
14,480
54%
12,863
1,612
92
95,326
55,343
58%
20,677
34,666
116
157,440
94,959
60%
29,424
65,535
160
252,805
152,348
60%
41,555
110,792
223
105
35
140
745
350
560
1,655
9,825
9,200
7,600
26,625
37,940
28,136
29,250
95,326
41,500
48,440
67,500
157,440
26,125
52,680
174,000
252,805
30
10
40
210
100
28
338
2,950
2,810
380
6,140
12,650
8,960
1,800
23,410
15,700
16,800
4,860
37,360
11,350
20,400
14,550
46,300
Revenue by Product
3G PA
4G PA
Repeater / RRH / DAS
Total ($K)
Units by Product
3G PA
4G PA
Repeater / RRH / DAS
Total
FCS Field First
Trial Order
28
Volume Ramp
Startup Capital Ventures!
29. Milestones
&
Budget
• Funding need: $6M in two $3M tranches
◦ First tranche has greater liquidity preference
• Deliverable milestones
◦ $2.5MM revenue in 2014
◦ Profitable in 2015
Tranche 1: $3.0MM
Tranche 2: $3MM
Beta Tag, DA,
& Master Reader
For
Betacustomer
Q2
Q4
Product Support
Tag & Reader
Tag, DA,
Commercial
Master Reader
V1
& Provisioning
Production Tag,
DA & Master
Reader
2013
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2014
Q4
Startup Capital Ventures!
30. Financing Plan
• Angel Round:
◦
◦
◦
◦
$2.4M in convertible notes (2011)
Developed 3G & 4G Pre-production units
Initial customer validations
Acquired Alternatives Technologies Inc.
Secured broad IP portfolio
• Seeking $6M Series A
◦
◦
◦
◦
◦
Two $3M tranches – first tranche with 1.5x LPF
Initial revenues
Build team
Execute on three field trials
Develop production tags & readers
• $12M Series B in Q3 2014
◦
◦
◦
Profitability
Volume production
Cash flow positive
Startup Capital Ventures!
31. Use of Proceeds
• Complete paid trials & scale-up for subsequent
roll-outs
• Engineer small form-factor “brick” & efficiency
enhancements
• Develop remote PA control software
• Deliver 3G & 4G PAs FCS by Q1 2009
• Establish Asia, North America & European sales &
marketing organizations & channel partners
.
31
31
Startup Capital Ventures!
32. Exit Comparables
Company
Symbol
Market Segment
Market
Cap
2007
Revenue
Last 12
mos Rev
Last 12
mos P/R
Last 12
mos P/E
Powerwave Technologies
PWAV
Wireless Systems
652M
780M
903M
0.7x
N/A
Clearwire Corporation
CLWR
WiMax Systems
1.6B
151M
197M
8.1x
N/A
Alvarion
ALVR
WiMax Systems
435M
237M
264M
1.6x
38.8x
Airvana
AIRV
Mobile Broadband
328M
306M
216M
1.5x
4.2x
Acquisitions
Market Segment
Acquirer
Acquirer Market
Price
Date
Allen Telecom
RF Systems
Andrew
RF Systems
$500M
7/2003
Flarion Technologies
Flash-OFDM
Qualcomm
CDMA
$805M
8/2005
Navini Networks
Mobile WiMAX
Cisco
IP Systems
$330M
10/2007
Andrew Corporation
RF Systems
CommScope
Cable, DSL, FTTN
$2.65B
12/2007
as of September 2, 2008
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