Transcript Business Proposal - EECS

Mobius Microsystems Inc.
3430 E. Jefferson Ave. #140
Detroit, MI 48207
313.205.3489
www.mobius-microsystems.com
[email protected]
Business Plan Presentation
Spirit of Enterprise Business Plan Competition
Indianapolis, IN
February 22, 2002
This Business Plan presentation is intended solely for informational purposes. The information
contained herein is believed to be reliable, but the management team makes no representations or
warranties with respect to this information. The financial projections that are part of this plan represent
estimates based on extensive research and on assumptions considered reasonable, but they are of
course not guaranteed. The contents of this plan are confidential and are not to be reproduced without
express written consent of Mobius Microsystems Inc.
© February 2002 Confidential Information
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Overview
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Vision Statement
Management Team
Technology
Industry, Market, and Competition
Marketing and Sales
Business System
Financials
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Vision Statement
The world today is a mix of digital and analog
technologies. Every day, system engineers are
forced to assemble discrete components to meet
the requirements of this mixed-signal world.
Mobius’ vision is to profitably deliver cutting edge
mixed-signal technology solutions that enable a
new generation of integrated high-performance,
low-noise, mixed-signal silicon products, while
significantly reducing price, size, and power
consumption.
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Management Team
Richard J. Goldstein, President & Chief Executive Officer
Richard is a veteran technology entrepreneur with twenty-five years of experience that
includes 15 years of Profit & Loss leadership. His most recent position was as Chief Operating
Officer at Synergetic Micro Systems of Downers Grove, IL. Synergetic completed and
launched a three-year system-on-chip development program targeted at embedded
communications. Synergetic was recently sold to a public company in multi-million dollar
merger.
Michael S. McCorquodale, Chief Technology Officer
Michael is a Ph.D. Candidate in Electrical Engineering at The University of Michigan. Michael
also possesses significant industrial microsystems design experience with Hughes Space and
Communications Company as well as experience engaged in collaborative research efforts
with Analog Devices, IBM, and MOSIS.
James Vincke, Chief Financial Officer
Jim is a veteran entrepreneur with twenty years of experience in business development &
technology. Jim was a critical part of the successes at Mechanical Dynamics of Ann Arbor, MI
where he held several positions from manager of accounting and personnel to Chief Financial
Officer.
Jeff Wilkins, Vice President of Business Development
Jeff is currently an MBA student at the University of Michigan Business School, graduating in
2003 with a marketing strategy focus. Prior experience includes consulting, corporate banking,
business development, and entrepreneurship.
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Technology Overview
Physical (Hard) Macro
Intellectual Property (IP)
Semiconductor IP
Semiconductor
Device
Packaged
Semiconductor
Product
Vision
Team
Technology
Industry
• Blocks that are placed into
larger designs
• Variety of delivery formats
• Many applications
• Manufacturing is customer’s
responsibility
• Low technology development
overhead
• Low COGS
• Successful Technology Model:
ARM, MIPS, RAMBUS
Marketing
B. System
Financials
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How IP and Why IP is Used
Motorola is Building a Cell Phone
• Market opportunity and window identified
• System specification defined
• Chip specification defined and handed off
Chip Designers Need to Meet Deadline and Budgets
• Develop majority of chip in-house
• Buy 3rd party IP (Mobius) for some functions
• Integrate IP with their design and send to fabrication facility for
manufacturing
What Mobius Offers System Designers
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Vision
Lower power to meet power budget
Less space so final product can be smaller
Considerable cost savings
Speed to market
Team
Technology
Industry
Marketing
B. System
Financials
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Microsystems Technology
Mixed-Signal
Circuits
MEMS
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Initial Product Opportunities
Clock Generation Technology
So what makes it run at 1GHz?
AMD
Athlon
Processor
(1 GHz)
Vision
Team
Clock Signal
fclk = 1GHz
ALL microprocessors, microcontrollers,
and programmable logic devices
require a clock signal to operate
Technology
Industry
Marketing
B. System
Financials
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Initial Product Opportunities
microprocessor
crystal
electronics
Mobius replaces these crystal
electronics with IP embedded
inside the microprocessor!
Vision
Team
Technology
Part
Cost
• Oscillator
$ 1.88
• 48 MHz Crystal
$ 0.39
• One resistor
$ 0.02
• Two Capacitors
$ 0.16
• Board Space
$ 0.30
Total build cost
$ 2.75
Industry
Marketing
B. System
Financials
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Initial Product Opportunities
microprocessor
crystal
electronics
vs.
Mobius’
On-Chip
Clock Macro
4mW
0.09 mm2
100MHz – 1GHz
$0.39
Vision
Team
Technology
POWER
SIZE
TUNING
COST
Industry
100mW
0.5 in2
Fixed
$2.75
Marketing
B. System
Financials
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Technology Roadmap
On-Chip Clock: 1st Product
• Patent Applications Submitted
• Prototype Manufacturing in Process: IBM and TSMC
Analog Front End: Follow-on Product
• Analog and Mixed-Signal Blocks for Sensing
• Patent Applications Submitted
• Prototype Manufacturing Complete: TSMC
Mixed-Signal System-on-Chip Library
• Complete Mixed-Signal IP Library for System-on-Chip Design
• Library will be Completed throughout Commercialization Effort
of Initial Products
Vision
Team
Technology
Industry
Marketing
B. System
Financials
Industry, Market, and
Competition
Industry Overview
• Semiconductor Industry (2001): $150 Billion
– CAGR: 8%
– Microprocessors, Microcontrollers, and
Programmable Logic Devices Represent 1/3 of
This Market
• System-on-Chip (2001): $40 Billion
– CAGR: 35%
• Semiconductor IP (2001): $1 Billion
– CAGR: 55%
Largest growth in system-on-chip segment, afforded by
faster time to market through 3rd party semiconductor IP
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Industry, Market, and
Competition
Addressable Market
• Currently no Semiconductor IP has Very Broad
Application
• Mobius On-Chip Clock Addresses 1/3 of the Entire
Semiconductor Market
• 11.85 Billion Units ($47.5 Billion)
• Mobius Intends to Capture 1% of this Market in
Two Years
Mobius’ revenue potential is larger than the entire existing
IP market due to the broad application of the on-chip clock
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Industry, Market, and
Competition
Competitive Landscape
• Indirect Competitors
– Discrete Component Clock Generation: Epson
• Potential Direct Competitors
– Companies with Microsystems “know-how”
Motorola and Analog Devices
Greatest challenge is displacement of entrenched technology
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Industry, Market, and
Competition
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Mobius’ Sustainable Competitive Advantage
• Patent-protected defensible Intellectual Property
• Design cycle lead and Microsystems development
trade secrets
• Industrial membership and “first-look” rights to IP
from The University of Michigan Center for Wireless
Integrated Microsystems
• IP business model hindsight is 20/20
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Marketing and Sales Strategy
Marketing Push Strategy
• By leveraging established relationships, Mobius can
create a strong market presence with low dollar
expenditures in a short time
• Taiwan Semiconductor, IBM, National Semiconductor,
and Atmel account for $10 Billion of semiconductor
sales
• Manufacturing licenses with these companies will push
the Mobius product down to their large customer base
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Marketing and Sales Strategy
Marketing Pull Strategy
• Leverage established relationships
• Sell design licenses to chip designers
• Their demand forces manufacturers to
purchase a fabrication license
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Business System
Revenue Model
• Design or Manufacturing-only Licenses: $350,000
• Design and Manufacturing License: $600,000
• Royalties: $0.10 per unit
Business Location and Infrastructure
• Corporate Offices and R&D: Detroit, MI
• Sales Force: Silicon Valley, CA
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Financials
Financial Highlights
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First Customer Contract and Revenue in 2002
Cash Flow Positive and Profitable in 2003
Small Initial Capital Offers Large ROI
Only Commercialization Effort Required for Initial
Product
• Future R&D Funded by Cash Flow from
Operations
• Expecting to Offer Investors Equity Exit 2006
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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Investment Oportunities
• Seeking $1.5 Million in Angel Capital (2002)
– Uses: CAD Hardware; Software Infrastructure On-Line;
Office Space and Personnel
– Milestone: Delivery of First Product: On-Chip Clock; Secure
1st Customer Contract
• Seeking $5 Million in Institutional Capital (2003)
– Uses: Expansion of Infrastructure and Personnel
– Milestone: Delivery of Analog Front End Product and Second
Generation of On-Chip Clock
Vision
Team
Technology
Industry
Marketing
B. System
Financials
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The Mobius Strip
The Challenges
Disparate Digital and Analog Technologies
Discrete Components
Need for Size, Power, Price Reductions
The Solution
Convergence of Parts into One Whole
Mobius’ Mixed-Signal IP
Mobius’ Value Proposition
Mobius will continually transform challenges into
solutions while changing the world as we know it...
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Closing
We welcome any questions