20150617 doe deck_living_ink
TRANSCRIPT
What is the most expensive liquid we buy?
4,200 gallons of gasoline
2,900 gallons of milk
Conventional Ink Composition: Pigments
20%
Black pigment is incomplete combustion of heavy petroleum
2500 B.C.
Cancer causing
Conventional Ink Composition: Pigments
Conventional Ink Composition:
80%
Conventional Ink Composition: Oil
1. Expensive
2. Human Health Hazards
3. Environmental Issues
Problem with Petroleum-based Ink
The Solution
1. Cheaper
2. Healthy for Humans
3. Renewable
Value Proposition for Algae-Based Ink
Promotional Products
Decorative
Commercial
Packaging
Greeting Cards
Household
Verticals
Algae Ink
Industrial Ink : $15 Billion
24%
19%
10%9%
9%
7%
22%
Others
22%
15%
13%
9%
41%
Non-Industrial Inkjet Ink: $70 B
Others
Ink Technology #2
Upon Opening
Upon Opening
100X
100X
DIY Greeting Card
Algae Pen Paper
Day 1
Day 1 Day 3
Greeting Card Value Proposition:
Interesting, unique ink that provides sticky messaging for engaging greeting cards
Go-to-Market: Licensing Partnership
Marketing
Distributi
on
Sales
Research and
Development
Intellectual Property
Produce and Sell Algae
Ink
Greeting Card Market: $8 B
Target Market = $425M
Other
“We wanted to get credit for doing something buzzworthy. We want the consumer to say, ‘Wow. This is different”
Jack Moore, Hallmark Gold Crown
president
83.2%
I am willing to pay $10 or more for a card.
81.3%
I like the card because it is unique and can be personalized.
Scott Fulbright
Steve Albers
Team
Strategic Advisory Board
Seeking additional advisors
Business Support
Accelerator Programs
Biotech Incubator Programs
Business Coaching
2nd place business plan competition
1St Place in Cleantech Competition
1St Place in business competition
Barriers to Competition
IP Lab and Personnel
Barriers to Competition
RoyaltiesDIY Greeting CardPrinted Greeting
CardPrinting Inks
Revenue Model
Algae Ink SalesDIY Greeting CardPrinted Greeting CardPrinting Inks
Sources Income Milestones
Founder Investment
CSU NEVA Award
$2K
$4KAlgal strains
Lighting SystemIncorporation
Lab spacePrototype DeliveryWebsite and Logo Development
Product Consumables
Blue Ocean Enterprise Challenge
3-D Cell Printer DevelopmentResearch and Development PrototypeNon-provisional Patent Application
$10K
Company Insurance
Energy Department Pitch Competition
$50KLegal Fees Associated With Licensing
Execute KickstarterResearch and Develop Greeting Card Ink
KickstarterProduct DevelopmentCustomer Validation and Feedback
Improve Printing Technology of Living Ink
License Technology
$75K+
CU-Denver BPC $10K Lab Equipment
Energy Department Pitch Competition
Finals
$50K
Research and Develop Printing Inks
Product Delivery
Obtain Additional Colored Algae Strains
Laboratory Equipment for Commercialization
Living Algae Company Acquisition
BioPop raised $170K
on Kickstarter and
acquired at $3M
valuation
Ink and Greeting Card Acquisitions
$355M
Phase I
Phase II
Phase III
Exit
License DIY Product
License Printed Greeting Card
License Printer Ink
• Acquisition by Ink/Greeting Card Company
2016
2017
2018
2019
Revenue• DIY- 100K units
R&D• Additional Toy
Products• Greeting Cards
Develop
Revenues• DIY- 1M units• Greeting Cards- 10K
units
R&D• Greeting Card
Production• Commercial Ink
Prototyping
Revenues• DIY- 5M units• Greeting Cards- 50K
units
R&D• Commercial Ink
Production Streamlining
Commercialize
Exit
Scott Fulbright Steve Albers
www.livinginktechnologies.com
We Grow and Sell the Algae Ink to Licensees
Cost to Produce: $0.10
Sell: $0.50
The Algae is Renewable
Phase I
Phase II
Phase III
Exit
License DIY product
Release and license for Greeting Card Product
Release Commercial ink product
Acquisition by Ink/Greeting Card company
2016
2017
2018-2019
2020
• 100K units• Revenue $150K• Profit $5K • Operating margin: 3%
• Product royalty 10%• Per unit cost for ink
$0.50
• 1M units• Revenue $1.5M • Profit $0.25M • Operating margin 16%
• Product royalty 10%• Per unit cost for ink
$0.50• Greeting Cards- 10K
units
• R and D for Commercial Inks and Greeting Cards
• 5M units• Revenue $7.5 M• Profit $2.5 M• Operating margin 33%
• Product royalty 10%• Per unit cost for ink
$0.50
• Release Greeting Card Product
• Greeting Cards- 50K units
Commercialize
Exit
Worldwide Sales and Distribution
Marketing
Public Relations
Product design
Packaging
Licensing DIY greeting card with WABA
Royalty Rate: 10%Retail Price: $19.99Wholesale Price: $9.99COGs: $4
Sell Greeting Cards on Website in 2017
Identify Company for Licensing in 2018
Online sales and Licensing Greeting Card
Retail Price: $11.99
COGs: $3.0
Royalty rate: 6%
Greeting Card Value Proposition:
Interesting, unique ink that provides sticky messaging for engaging greeting cards
2014 Blue Ocean Enterprise ChallengeSecond Place
Renewable Algae Ink : Entire cells
Annual World Market Revenue = $85B
1% 3% 3%3%
9%
17%
20%27%
17%
Target Market= $144M
Toy Market Revenue Share in U.S.
Living Algae Ink
Greeting Cards STEM Toys Packaging Ink
PrintingAlgae Ink
Algae Ink
Commercial Ink
“I was really excited....to see what was going to happen on my algae card”
-Spencer Wein
“We will continue to strive to exceed market expectations through the introduction of even more exciting innovations.”
-American Greetings Annual Report
$50per/ barrel
Oil Ink
$400,000 per/ barrel
Renewable Algae Ink: Oil
HP revenue on “Printing Supplies” was nearly
$16 billion
66% of printing business revenue