42629 lecture 8 - oroclean presentation

Tirsdag d. 20/3-2012

42629 - Innovation in Product Development

Lærke Holstebroe Jeanne Lønstrup

Agenda

THE TEAM
ORIGINAL PRESENTATION FROM VENTURE CUP FINAL
BUSINESS PLAN
HOW IT ALL STARTED… (MIT ELEVATOR PITCH)
AND ENDED…
10 LEARNINGS AND QUESTIONS?


The Team

DTU Management
MSc. Stud.


Venture Cup Presentation

Original Slides from Venture Cup Final



OroClean – Change the world with a profitable business
Low tech, proven technology
Miner: 11% Cheaper than mercury
Mercury in small scale mining
30% Higher value of gold
41% Income
Lærke Holstebroe Jeanne Lønstrup Jakob Parslov Trine Duelund
Refiner: 20% Income
Locally Produced, for the expences of: DKK150
Eliminate 30% of the global mercury pollution


BUSINESS MODEL NON REFINED
GOLD

OROCLEAN LEASE REFINER RENT MINER

Expand market
Product to market GREEN
GOLD

Break Even ~ 2. år

1. år 2. år 3. år



15 – 20 milliones miners

Start up expences: DKK 5 mio.

Profit 1st year: DKK 3,5 mio.

OroClean – Doing good by doing well


The Business Plan…


Content - Business Plan

+ Appendices:

• Patent feasibility
• Letter of recommendation
• Income Statement
• Competitor Analysis
• Mapping of Value Chain
• Cash flow
• Budget


Business model


Arguments to back up feasibility

• Geo Center

• Professor Kurt S Anderson


Implementation Strategy

Local
Champion


Current Status


Projected Market Share / Competitor Analysis


Mapping of Value Chain and Cash Flow

Create value for all involved
actors in the value chain

Renting takes place: Rate $10/week*unit  $520/year*unit

Leasing takes place: Rate $90/year*unit

Contract manufacturing takes place: Rate $43/unit


Income Statement for OroClean


Cash flow for OroClean


Problem

How it all started…


USA – Exchange Program

Rensselaer Polytechnic Institute
Troy, New York


Inventor’s Studio

”Think big. You can do it!”
– Burt Swersey


Methods used
Problem
Basic Engineering skills – Learn by doing

• Internet research
• Bottom-of-the-pyramid theory
• Brainstorms, morphology, concept creating
• Actor-network
• Testing & Prototyping
• Calculation of mechanical / fluid dynamic principals
• Roll-the-snow-ball / networking
• Pitching / watch other people pitch
• Participate in workshops / events, ‘in the field’
• Workshops with experts

 An iterative approach


The Problem
Problem

• Find a problem that affects millions of people
• Understand the context of the problem
• “Need to have, not nice to have”
• A treat is the most powerful motivation factor


What’s in it for me?

I want to be able to eat my tuna fish every day!


Tell a touching story
Problem


Inspiration

Bottom-of-the-Pyramid (BOP): IDE – Treadle Pump: Paul Polak - TEDx:

2.5 billion people who live on Inspiration from Founder of non-profit
less than $2.50 per day Franchise business International Development
model Enterprises (IDE)

http://www.youtube.com/watch?feature=playerem
bedded&v=ezVxt7TkyeM


Search for Possibilities

Do you really need a patent?

Other ways to protect your product?


Proof of Concept
Problem

Initial simple tests


Spread the word – Get feedback

Semifinal: 10 selected, 120 entries


MIT Elevatior Pitch Competition

Semi finals: http://www.youtube.com/watch?v=BspJKEMpoUQ&feature=related
First Round: http://www.youtube.com/watch?v=viamkBLPUBw&feature=related


Develop New Competencies Through Events


Workshop with GeoCenter


Understand the context
Problem

Gold Gold

Goldshops The Refiner The Miner

$ $


Fundraising
Augustinus
Det Obelske Familiefond
FUNDS
Direktør Neergaards Fond No money
Familien Hede Nielsen Fond
Spar Nord Fond

Skype presentation from Denmark

Semifinals: 60 selected, 700 entries

Winner of Cleantech
Overall winner of Startup Competition

Winner of Develop Prize, Social Entrepreneurship

Presentation of project to Minister of Climate and
Energy, Lykke Friis


Venture Cup 2010

• Announcement of the final 15 teams, 5 categories

• Online Feedback on Business Plan (Excel Sheet)

• Venture Cup Pitch Training Day

• Jury Panel Pitch – Copenhagen City Hall (2nd of June)
• 4 min pitch
• 8 min Q&A
• 10 min feedback

• Venture Cup Final – Live pitch for audience – Copenhagen City Hall (3rd of June)

• Winner of Cleantech category 50,000kr + final 200,000kr

 Party + Champaign + Happiness


After the Venture Cup Final

Accounting
Advices

Board of
advisers

Innovation
Environments

Student Incubator;
Office space & business
development sparring

Prototyping


Problem

…. And ended


What went wrong?

• Lack of motivation & courage

• A lot of tax

• Not willing to share ownership with Venture Capitalists

• Overlapping competencies in team

• Prioritized university before business

• Spent a lot of time on emails, university rights, practical stuff

• Complexity of market


10 learnings

#1: ”Just do it!” – mentality
#2: Share your idea with other people
#3: Work with something that interests you!
#4: The right team is very essential
#5: Take risks
#6: Network - will open many doors
#7: Talk to the user/experts and understand the context
#8: Be curious and keep learning
#9: Kill your darling & try again
#10: Have fun


Inspiration – The mushroom man Eben Beyer

http://www.youtube.com/watch?v=Di-cvmSAQEQ


Video from Dell Social Innovation Competition

http://www.youtube.com/watch?v=LebCeHnr8R4


Question?

”Its easier to teach a scientist business than to teach a
business man science”

”Scientists are the best entrepreneurs”
– Sharron Ballard


References

Picture - Trevor Snapp/ Bloomberg
http://www.bloomberg.com/news/2010-12-23/shooting-gold-diggers-at-
african-mine-seen-amid-record-prices.html

Picture - IW Science
http://projects.csg.uwaterloo.ca/inweh/display.php?ID=2451

Picture - BOP
http://upload.wikimedia.org/wikipedia/commons/thumb/a/a7/Anti-
capitalism_color.jpg/300px-Anti-capitalism_color.jpg

IDE
http://www.paulpolak.com/html/media_photo.html


42629 lecture 8 - oroclean presentation

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42629 lecture 8 - oroclean presentation