Transcript Business Plan Presentation

Mobius Microsystems Inc.
3430 E. Jefferson Ave. #140
Detroit, MI 48207
614.571.5299
www.mobius-microsystems.com
[email protected]
Business Plan Presentation
MBA Jungle Business Plan Competition
New York, New York
April 25th, 2003
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Overview
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Pain and Solution
Technology and Product
Management Team
Industry and Market
Competition
Marketing and Sales Strategy
Financials
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The Problem: Disparate Systems
Electronic products currently require assembly of many
discrete components
Digital Microprocessor
Mixed-Signal
Circuits
Crystal Oscillator
Memory
Mechanical Sensor
Analog
Circuits
Printed Circuit Board
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The Pain
These systems are:
• Expensive: package costs
• Large: package sizes
• Power-hungry: signal across board requires 10x power
• Limited in functionality: size and power constraints
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The Solution: Mobius Microsystems
Microsystems are intelligent miniaturized systems comprising sensing,
processing, and actuating functions integrated onto a single chip. They are
smaller, cheaper, lower power, simpler, more reliable, and more functional.
Digital Microprocessor
Mixed-Signal
Circuits
Crystal Oscillator
Memory
Mechanical Sensor
Analog
Circuits
PCB
Printed Circuit Board
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The Solution: Mobius Microsystems
The vision for our products:
Enable electronic system developers to produce less
expensive, smaller, more functional, and more reliable
products that consume less power.
The vision for our customers:
Reap orders of magnitude improvements in the products
they build and lead their industries in end-product
performance, functionality, and value.
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The Clock is as Fundamental as Power
fclk
Clock frequency signal drives processor inside
Pocket PC
Every single synchronous semiconductor
produced requires a clock to operate
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State of the Art versus
State
of the Art vs.Monolithic
Mobius “DMC”
Mobius“Digital
Clock”
Existing Clock Solutions
• Crystal-based
• Large off-chip component
• Fixed frequency
• Power-hungry
• Expensive
Mobius DMC
• MEMS-based
• Small on-chip
• Tunable frequency
• Low-power
• Inexpensive
Crystal
Electronics
vs.
4 Mobius
DMCs
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The Mobius DMC in Action…
Using Current Technology
Using Mobius’ Technology
~$1.00
~$0.45
Clock Space Requirements
323mm2 on circuit board
0.09mm2 on semiconductor
Clock Power Requirements
32mW
4mW
Fixed (w/o add. electronics)
62.5MHz to 1GHz
Example: iPAQ PDA
Clock Hardware Costs
Tuning Range
What Mobius can do for Compaq
• Reduce total cost
• Increase functionality
• Increase battery life
• Decrease time to market
• Reduce component inventory
COMPAQ Pocket PC
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Semiconductor Intellectual Property
Semiconductor
Design Blueprint
• Manufacturing handled by
customer
• Low COGS
Mobius’
DMC IP
• Like a software company
Packaged
Semiconductor
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• Successful business model:
ARM, MIPS, Parthus
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Why IP is Used
Samsung is building a cell phone
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Market opportunity and window identified
System specification defined by engineering management
Chip specification defined and handed off
Chip designers need to meet deadline and budgets
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Develop many parts of chip in-house (if capable)
Buy 3rd party IP (Mobius) for some functions
Integrate IP with their design and send to fabrication facility for manufacturing
What Mobius IP offers chip designers
• Functions outside their core competency
• Accelerated time to market
• More profit per chip
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Management Team
Michael S. McCorquodale, CEO and CTO
• Invented technology while electrical engineering Doctoral Fellow, U of Michigan
• Commercial semiconductor experience with Hughes Space and Communications
• Vision of how microsystems technology and Mobius will change the world
Jeffrey G. Wilkins, COO
• MBA 2003, U of Michigan
• Business development and start-up experience, Huntington Bank and Velocys Inc
• The commitment and experience to turn Mobius’ vision into reality
James E. Vincke, CFO
• M.S.E., MBA, U of Michigan
• 23 years in start-up, executive management, Mechanical Dynamics Inc
• Fund raising, acquisitions, international expansion, rapid growth
• The financial acumen and perspective to manage growth from start-up to IPO
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Industry and Market Overview
• Semiconductor industry: $141B (2002)
– CAGR: 8%
– Cyclical, mature
• System-on-chip market: $32B (2002)
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System-on-Chip Explained
SoC’s combine a processing core, memory, and
logic on a single chip
Communications
Analog Front
End
Microprocessor Core
SoC with microprocessor,
memory, and communications
Clock
Clock
Sensor
SoC
Sensor
Other
Subsystems
Other
Subsystems
Memory
PCB
Printed Circuit Board (PCB)
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Analog Front
End
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Why SoC?
SoC’s Market Dynamics and Needs
• Broad range of end products and markets
• Medium to high volume
• Fast design cycles to meet product windows
• Every SoC uses some IP
• Comfort with IP and IP companies
• Fabrication facilities (TSMC, IBM)
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Industry and Market Overview
• Semiconductor industry: $141B (2002)
– CAGR: 8%
– Cyclical, mature
• SoC Market: $32B (2002)
– Growing 25% to 30%
– Players: Texas Instruments, Motorola, Intel, Sony
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First Addressable Market
• Clock generation for SoC
– SoC: $32 Billion or (@ $20/unit) 1.6 Billion units/yr
– Each unit now requires at least $1 for clock generation
– Mobius’ DMC average selling price of $0.45/unit
• 1.6 Billion units x $0.45 per DMC =
First addressable market size:
$720 Million In Revenue
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SoC End Markets
Digital Cellular Handsets
Modem/Remote Access
Video Games
Disk Drives
Digital Set-Top Box/DTV
Personal Computers
DVD Video Player
2004
2000
Wireless Infrastructure
LAN/WAN
Transportation
0
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Source: Gartner Dataquest
Source: Gartner Dataquest
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Billions of Dollars
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Competition
Competitive landscape: 3 kinds of competitors
• Discrete Crystal Clock Generation
– Epson
• Integrated Clock Manufacturers
– Motorola
• Hybrid Clock Manufacturers
– Epson + Texas Instruments
Currently there is no solution on the market for clock generation
that is able to meet all of the needs of the market.
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Mobius’ Competitive Advantage
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Patent-protected intellectual property portfolio
Design cycle lead
Microsystems development trade secrets
Industrial membership and “first-look” rights
from “WIMS”: Microsystems Research Center
• “Product Hopping” strategy
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Marketing and Sales Strategy
Goal: De-facto standard in clock generation for SoC
Step 1: Create awareness and “buzz”
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Existing relationships
Conferences, tradeshows, competitions
Step 2: Direct sales effort
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Founders and technical sales representative
Specific existing relationships: Motorola, National
Semiconductor, TSMC, Cadence, IBM
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Marketing and Sales Tactics
Direct Sales Effort
For Design Win
IP Partnership
Effort
Intel
Packaged SoC
Packaged SoC
With Mobius DMC
Compaq
Pocket PC
End Customer
To Compaq:
Mobius = Less expensive, smaller,
and more functional products
Influence
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To Intel:
Mobius = More revenue per chip
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Electronic System Design Cycle
Concept
Evaluation
Production
• No re-design cost
Design
Prototype
Influence
• No customer risk:
• System functional independent of Mobius IP at prototype phase
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Initial Target Customer Profile
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SoC cost ≤ $10-20
Volume per design: ~ 1M units/year
Total electronic system COGS ≤ $50
2 or more crystals per system
Cell phones, DVDs, PDAs, microcontrollers, disk
drives, WLAN
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Existing Target Customer Relationships
• Cell phones
– Motorola, Samsung
• PDAs
– ARM, Intel
• Microcontrollers
– National Semiconductor, IBM
• WLAN
– Infineon (WLAN security chipsets)
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Business System
Revenue Model
• Design License
– Tiered $100,000 to $300,000 (low to high volume)
• Royalty
– Tiered $0.50 to $0.15 per unit (low to high volume)
• Annual Support & Maintenance Contract
– 15% of initial license annually
• Services
– Design services for customers
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Financials
Revenue, Net Income, and Cash Flow from Operations
Net Income
2,500
Dollars (000's)
25,000
Cash Flow from Operations
Revenue
20,000
2,000
15,000
1,500
10,000
1,000
5,000
500
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(500)
Dollars (000's)
3,000
2003
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MANAGEMENT
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MARKET
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2007
COMPETITION
(5,000)
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Investment Opportunities
Self-Fund Operations Until First Sale Is Made
$110K Founders Investment (Q3 2003)
After First Sale (Q3 2003):
Seeking $500K 1st Round Investment
Uses:
Hire Marketing and Sales Director
Hire Additional Engineering Expertise
Enable Additional Manufacturing Processes
Establish IP Partnerships
Milestone: 5 Reference Customer Relationships
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Investment Opportunities
$500K 2nd Round Investment (Q1 2004)
Uses:
Hire Sales Person in Munich, Germany
Continue to Develop Engineering Team
Milestone: 3 International Reference Customers
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Why Invest?
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$720 million first addressable market
Truly compelling, protected IP
Committed and experienced management team
Small investment required for high return potential