1. ModViz, Inc.
The new leader in industrial visualization.
Dr. Robert Jacobson, CEO
Mr. Thomas Ruge, CTO
Ms. Shing Pan, VP Marketing
And Business Development
+1-650-670-9082
bjacobson@modviz.com
2. What ModViz Does
• We serve industry’s need for affordable
visualization of complex computer data
used for critical business processes.
• Our software products turn simple PCs
into powerhouse visualization systems.
• Visualization systems built with our software
products are robust, portable, highly
scalable, and inexpensive.
• With our business partner HP, we’re going
to market now.
2
3. Our Mission
To become the leading vendor of software
for affordable high-performance, real-time,
industrial visualization.
3
4. Who We Are: Core Management
Dr. Robert • Entrepreneur, Researcher, Virtual Reality Pioneer
Jacobson • Worldesign Inc., HIT Lab, SRI Consulting
Co-Founder • Ph.D., Urban Design UCLA; MA, Comm Industry Mgmt. USC
CEO • 25 years experience, online communications and virtual reality
Thomas • Inventor of Renderizer software, patent co-author
Ruge • Co-founder, Siemens Visualization Software Division
Co-Founder • Siemens Virtual Reality Competence Center
CTO • MS, BS, Physics, Technical University in Munich
•20 years of technology, product development experience
Yixin (Shing) • Senior Marketing Manager, SGI: “Intrapreneur” responsible
Pan for PC-cluster business; strategist responsible for corporate
Co-Founder manufacturing market strategy
VP, Marketing & • MBA, Cornell ; MS, Mech.Eng., Northern Illinois
BusinessDev. •14 years product marketing, business development experience
Brian Blau • Software Development Manager, Discreet/AutoDesk
VP Engineering • Co-Founder, VP Platform Technology, Intervista/Platinum
• Founder of VRML Society, SIGGRAPH Events Organizer
• MS, BS, Computer Science, Central Florida
• 17 years software development and virtual reality experience
4
5. Converging Trends Create
an Historic Business Opportunity
Open systems’
maturity
Visualization’s
PC technology
widespread use
improvements
within industry
The
ModViz
Opportunity
IT users Display
increasingly technology
are direct buyers improvements
Utility and
grid computing
developments
5
6. Visualization is Enterprise-wide
Product Manufacturing Marketing Sales Distribution
Development & Support
Conceptual Modeling, Digital Training
Assembly Review Digital Sales & Simulation
Styling, Industry Design
& Marketing
Functional Design Review,
Ergonomics Factory Planning, After-Sales Service
Simulation, & Maintainability
Performance Robotics, AEC,
QA Studies
Evaluation
CAE Motion Simulation, 6
Visualization Kinematics
7. The Problem We Solve: We Make
Industrial Visualization Affordable
The conventional solution: The Viz Cluster
$500,000-$2,500,000+.
Proprietary. Hard-wired. Centralized. Alternative:
Tough to upgrade. $30,000-$100,000+.
For most would-be users: Open. Scalable. Portable.
Unaffordable and inaccessible.
Easy to upgrade.
Better performance.
High-end visualization
everywhere it’s needed.
7
8. The Addressable Market
For Cluster-Based Visualization
Military & Government R&D
HIGH-END Fortune 500 Companies Target Industrial
10%
10% $500K-$50M+ Markets
ed
$2.2B per system
derserv (in order of priority*)
Un
Mid-Range Companies
1.Oil & Gas
MID-RANGE Educational Institutions
ModViz’s Local Public Agencies 2.Manufacturing
44%
44%
$9.8B $5B+ $50K-$500K per system 3.Life Sciences
Market rved 4.Entertainment
Unse
Opportunity 5.AEC (Architecture/
Small Businesses
Professional Offices Engineering/
CONSUMER
Individual Users Construction)
46% $2K-$50K
$10.3B
rved • Based on
Unse importance of
Total Visualization Market: visualization to
$22B+*
Replacement industry and
Expansion industry’s current
Universal ability to buy.
* Sources: Peddie & Associates 2001
Frost & Sullivan, 2001,IDC 2001, Giga 2002
(includes hardware, software, and displays) 8
9. Immediate Target Markets:
Oil & Gas, Manufacturing = $2.7B
Geo-Analysis, Interpretation, Concept Design
And Well Location CAD/CAE
Reservoir Management Virtual Prototyping
Facilities Planning Sharing Information
and Management With Suppliers
10. Our Technology and IP Strategy
Our technology, the result of three years of
labor and $3M investment, is protected…
------------------------------------------------------------------------------------------- …And four provisional patents
United States Patent Application 20020002587
Kind Code A1
Kecik , Yalin Ahmet ; Ruge, Thomas; et al. January 3, 2002
in process will further protect
our unique technology:
-------------------------------------------------------------------------------------------
Method and Arrangement for Determining Current Projection Data for a Projection of a
Spatially Variable Area
Abstract
In a method and the arrangement for determining projection data for a projection of a
Patent 1: Distribution of Scene
spatially variable area, change data are determined in a first computing unit, where the
change data describe a change in the spatially variable area from a starting state to an Graph Among Multiple Rendering
end state. The change data are transmitted to a second computing unit and to a third
computing unit, which are each connected to the first computing unit. First current
projection data for a first projection of the spatially variable area are determined in the
Processors
second computing unit using the change data and first previously stored projection data.
Second current projection data for a second projection of the spatially variable area are
determined in the third computing unit using the change data and second previously
stored projection data.
------------------------------------------------------------------------------------------------------------
Patent 2: Dynamic Load
Inventors: Kecik , Yalin Ahmet; ( Muenchen, DE) ; Ruge , Thomas; ( Muenchen,
DE) ; Wiedemann , Claus Peter; ( Ottobrunn, DE) Balancing Among Multiple
Correspondence Name and Address:
Schiff Hardin & Waite
Rendering Processors
Mark Bergner
6600 Sears Tower
Patent 3: Dynamic Reallocation
Chicago
Illinois
60606
US
mbergner@schiffhardin.com
of Multiple Processors for
(312)258-5779
(312)258-5700 Rendering
Assignee Name and Address: Siemens Aktiengesellschaft
Wittelsbacherplatz 2
Muenchen
80333 Patent 4: Weighted Allocation of
Serial No.: 652671
Series Code: 09
Filed: August 31, 2000
Computational Tasks Among
Multiple Processors
10
11. Our Technology
Synchronization of 3D data across a cluster in real-time
Proprietary network protocol (patent pending in Europe, America and
Asia)
Seamless migration of existing applications
Integration of existing 3D-API's (OpenGL Performer, Open Inventor) and
support of OpenGL
Support of high-performance display systems
Support of high-resolution single-screens, curved screens, CAVE's, and
displays with edge-blending systems. Display configuration
independent of application by ASCII file
Unlimited Linear Scalability
Image compositor enables huge datasets (>2 GB)
11
12. ModViz-Managed
Visualization Cluster
Master PC
User interacts
with application here.
Desktop/Team Room
…
1 2 3 N
Nodes in Viz Cluster
(w/ or w/o Image Compositor)
13. Our Product: Renderizer™
Software, Version 3.0
• Turns common PCs into powerful visualization
clusters, harnessing the power of multiple PCs
and graphics processors
• Generates real-time graphics that equal or
exceed anything available today -- at a fraction
of the cost
• Synchronizes and optimizes multiple PCs’
rendering processes, in real-time, for an
exceptional visual experience
• Is highly scalable and enables fail-safe operation
• Can transition to a grid-computing environment
13
14. We Make It Easy for Industrial
Applications to Run on Viz Clusters
14
15. Our Product Roadmap
Utility and grid
Ubiquity visualization
Combined computation
and visualization cluster
Universal product
for use with any
visualization
application
Scalable PC-based
visualization
For single-screen
displays
Scalable PC-based
visualization
for multi-channel
displays
2003 2004 2005 2006 2007 15
17. Channel Sales Strategy
Product Flow
Revenue Stream
Sequence
1 PC
Hardware
Manufacturers
M Value-
3
O Added
D Resellers End
V Users
I
Z
2 Independent
Software
Vendors
4 Grid
Computing
Utility
17
18. Partners and Customers
Partners
Hewlett-Packard
MechDyne/Fakespace
TGS
Pilot Customers
EADS (Eurocopter)
Siemens Medical
Siemens Transportation
3d Pixel
Prospective Customers
(Shing Pan)
18
19. Current Pre-Sale Projects, 1
Joint Proposals in O&G ISVs Testing
Process Renderizer
• Shell • Shell (in-house
• Chevron/Texaco application)
• BP • Schlumberger
• University of Utah • Paradigm Geophysical
• Seismic Micro-Technology
• Staag Imaging
19
21. Testimonials
Leading ISV, Oil & Gas Industry: “ModViz’s Renderizer software
offers a lower cost solution for intensive graphics applications.
This technology is extremely important to our clients. It
maximizes our applications’ potential in an industry where ROI
is crucial.”
Chief Engineer, Automotive Manufacturer: “We are
encouraged with the potential of Renderizer to eliminate
several steps in our current process that require multiple
iteration of fiberglass and clay models. We have developed a
request for a supplemental funding to acquire Renderizer.”
Emerging Technology Director, Hewlett-Packard: “Renderizer
is a cornerstone of our cluster management products.”
Fakespace CEO: ”The partnership between ModViz and
Fakespace takes immersive visualization one step further. It
enables both companies to offer highest quality turn-key
solutions."
21
22. Go-to-Market Strategy
1. Build Brand Recognition as…
• The de facto software platform for low-cost,
scalable, real-time, high-performance visualization.
• The leader in distributed visualization software.
2. Execute Push-Pull Strategy with channel and
technology partners, and via programs and promotions
directed at end-users.
3. Create Market Awareness and Demand with our own
and our partners’ coordinated marketing programs.
23. Sales Strategy
1. Partner with software and hardware vendors (ISVs
and IHVs), integrators, and value-added resellers
(VARs) to quickly penetrate key markets.
2. Integrate our products with our channel partners’
software and hardware products and system
solutions, to sell into the verticals they command.
3. Our partners are our customers. Their customers
are our end-users.
4. Evangelize among end-users and with application
developers.
5. Become a resource for end-users seeking advice.
24. Revenue Model
Service
1%
1
Support
& Main
15%
SW Apps
HW SW HW Sepia
Partners Partners Support/Main
25% 59% Services
Margins
Software 86-89%
Support 50%
24
25. Pricing
Starting 2003 Starting 2003 Starting 2004 Starting 2005 Starting 2006
Manufacturing Oil&Gas Medical&Science Entertainment Construction
Vertical Application Market Size $1.75 Billion $1.6 Billion $1 Billion $3 Billion $500 Million
ASP of Applications $12,500 $40,000 $35,000 $4,500 $10,000
Total Addressable # of Seats 140,000 40,000 28,571 666,667 50,000
ModViz % of Install Seats 5% in 5 years 5% in 5 years 5% in 5 years 5% in 5 years 5% in 5 years
Average ModViz Royalty per Application Seat $4,500 $9,000 $4,500 $900 $1,800
ASP of ModViz SDK $25,000 $50,000 $35,000 $15,000 $10,000
Support & Maintenance 15% 15% 15% 15% 15%
Royalty = 15-25% of Application Offering Price
26. 18-Month Sales Projection
Bottom Up Sales Projection for 18 months 2003 2004
Manufacturing
SDK @$25K 0 4
Parallelation Service @$120K/Unit 1 2
# of Install Seats 0 96
ModViz Royalty Per Seat $4,500 $4,500
Support & Maintenance @15% $0 $64,969
Sub-Total $120,000 $838,094
Oil & Gas
SDK @$50K 0 4
Parallelation Service @ $120K/Unit 1 2
# of Install Seats 10 150
ModViz Royalty Per Seat $9,000 $9,000
Support & Maintenance @15% $13,500 $202,500
Sub-Total $223,500 $1,992,500
Hardware
# of nodes 24 928
Price Per Node $3,000 $3,000
Equivalent # of customers @ 8 node cluster 3 116
Support & Maintenance @15% $10,800 $417,600
Sub-Total $82,800 $3,201,600
Total $426,300 $6,032,194
27. Revenue Expectations
by Product Line
120
100
80
$Millions
Support and Maintenance
60
OEM (with Hardware Partners)
Application Per-Seat Royalties
40
20
-
2003 2004 2005 2006 2007
Year
27
28. Revenue and Income Statement,
2003-2007
2003E 2004E 2005E 2006E 2007E
Revenues
Hardware Partners 82,800 3,201,600 14,262,300 24,950,400 31,160,400
Software Partners 343,500 3,163,004 17,298,313 43,651,045 75,960,089
Total Revenue 426,300 6,364,604 31,560,613 68,601,445 107,120,489
Cost of Revs 48,030 748,269 3,969,886 9,018,634 14,532,228
Gross Margin 378,270 5,616,335 27,590,726 59,582,811 92,588,262
% of revenue 89% 88% 87% 87% 86%
Operating Expenses
G&A 610,731 945,403 1,835,445 2,509,094 3,256,593
% of revenue 143% 15% 6% 4% 3%
S&M 815,183 3,241,021 5,984,792 10,758,880 15,922,267
% of revenue 191% 51% 19% 16% 15%
R&D 1,314,454 3,076,689 5,068,330 7,240,609 11,018,463
% of revenue 308% 48% 16% 11% 10%
Total Op Exp 2,740,369 7,263,113 12,888,567 20,508,582 30,197,324
Operating Income (2,362,099) (1,646,777) 14,702,160 39,074,229 62,390,938
Interest - - - - -
Net income before taxes (2,362,099) (1,646,777) 14,702,160 39,074,229 62,390,938
Taxes 40% - - (5,880,864) (15,629,691) (24,956,375)
Net income (2,362,099) (1,646,777) 8,821,296 23,444,537 37,434,563
% of revenue -554% -26% 28% 34% 35%
28
29. Projected Revenues and Net Income
Annual Projections
120.00
100.00
80.00
60.00
$Millions
Revenues
Net Income
40.00
20.00
-
2003 2004 2005 2006 2007
(20.00)
Year
30. Wildcard Revenue Accelerators
• Popularity of high-end
holography
• Pace of utility and grid
computing environments
• Improvements in displays
• Greater visual literacy
among industrial
computer users across
the board
31. ModViz’s First Year
Company Product & Market Product & Market
Formation Development, Phase 1 Development, Phase 2
Fundraising Company
Building
Houston Oil Seismic
Industry Houston Oil HP Tests Micro-Tech Other ISV
Demos I & II Industry Demo III HP Sales Channel Deal Deals
Legacy Siemens’ Renderizer for Renderizer for Begin OpenGl
Customers Open Inventor Performer-Plus Universal Product
HP Sepia Renderizer IA-64 File New O&G Application
Prototype for Windows Ports IP Apps Integrations
Hire Developer,
Co-founders/ Hire Senior Hire VP Recruit & Hire
Systems Engineer,
Executives Developer Engineering First-Year Staff
Biz Dev Director
Funding/IP Transfer Seed Round Institutional
from Siemens Investment Funding
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
31
2002 2003
32. ModViz: A Short History of
Remarkable Accomplishment
1. ModViz incorporated in October 7. New products ready for release
2002 in April and May 2003 including
Windows version of Renderizer
2. Headquarters located in San
Mateo, CA 8. IP formally transferred from
Siemens to ModViz, received
3. Currently, a team of nine investment from Siemens
4. Several existing customers, with 9. New IP (four provisional patents)
more pending in process
5. Patent-protected product, 10. Projects in the pipeline with
Renderizer, is in Version 3.0 prospective customers
6. Renderizer demonstrated at 11. Key partnerships with IT industry
Daratech CAD Summit, SIGGRAPH, leaders (including HP)
SEG, Supercomputing, I/ITSEC,
and Digital Energy conferences; 12. Receiving revenues from HP and
more events scheduled for 2003 customers
32
33. Hiring Projections
100
90
12
80 12
General & Administrative
70 Research & Development
Sales and Marketing
11
60 40
$Millions
50 37
8
30
40
30 23
6
20 34 39
17 29
10 21
7
-
2003 2004 2005 2006 2007
Year
33
34. VC Interest is High
Azure Capital
Battery Ventures
Ignition (Seattle)
Kleiner Perkins
Mobius Venture
Sofinnova
HP Investments
Shell Technology Ventures
Siemens Ventures
35. Our Funding Requirements
and Exit Strategy
• Angel Forum capital takes us through
institutional financing in Q3-4 2003
• $2-3M in institutional financing powers
company to profitability in Q4 2004
• M&A in three to five years with one of
our channel partners
• Consistent value gains for our company
generate wealth for our shareholders