Patent ConnectBusiness PlanBrian Bigler: CEO Darshan Shah: CTO

Nicole Girsch: CFO Huifeng Zheng: CMO

Mission Statement

"Patent Connect connects intellectual property/patent owners with those that can use the innovation to create profits that both sides can enjoy."

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Hunting for IPMarket LandscapeMarketing IPOur Goal

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Subscriptions

Royalties & Licensing

MARKET ANALYSIS

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Market Segmentation

• TAM• 5.2 billion dollars in 2009 : Intellectual Property

Commercialization

• SAM• Undeveloped patent offices/partially developed patent offices

• 300 million dollars

• Non-Profit research organizations5

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 20080

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40

60

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100

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160MASSACHUSETTS INSTITUTE OF TECHNOLOGY CALIFORNIA INSTITUTE OF TECHNOLOGY UNIVERSITY OF TEXAS STANFORD UNIVERSITY WISCONSIN ALUMNI RESEARCH FOUNDATION JOHNS HOPKINS UNIVERSITY CORNELL RESEARCH FOUNDATION INC. UNIVERSITY OF MICHIGAN UNIVERSITY OF MINNESOTAIOWA STATE UNIVERSITY

Num

ber o

f Pat

ents

Market History

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1985 1990 1995 2000 2005 20100

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

$USD

(M),

top

100

Uni

vers

ities

Market Size

1986 1990 1994 1998 2002 2006 20100

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10

15

20

25

30

Aver

age

Pate

nts p

er U

nive

rsity

, top

100

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Competitive Analysis

• Direct Competitor• Virtual Technology Transfer Office, Inc.• University offices of technology transfer• Especially The University of Texas

• Indirect Competitor• Venture Capitalists

• Emerging Companies8

Market Segment Strategy

• Target four universities which do not have a fully developed University Technology Transfer Office.

• Patent Connect will provide these offices with our network of business contacts

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Brian Bigler, CEOMS-Biomedical Engineering

Nicole Girsch, CFOMENG-Biomedical Engineering

Darshan Shah, CTOMENG-Biomedical Engineering

Huifeng Zheng, CMO MS-Electrical Engineering

Later, with sufficient funds......

Brian Bigler, COOMS-Biomedical Engineering

Chief Legal Adviser

assist in IP processing

STRATEGY AND IMPLEMENTATION

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Competitive Edge

• Will operate as a patent broker.

• Reduced cost structure

• Database Service 12

Sales Strategy

• Selling Points:

• Income from previously dormant patents

• Status and recognition for their research

• A cost effective way to transfer new technologies to the marketplace

• Market research

• Database13

http://www.psxextreme.com/ps3-wallpapers/1110.html

Sales: Future

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Sales Projection

Year 1 Year 2 Year 3 Year 4 Year 5$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$50,000 $150,000 $750,000

$7,500,000

$15,000,000

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4 1235

No. Of Active Licenses

FINANCIAL ANALYSIS

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Projected IncomeSales $50,000 $150,000 $750,000 $7,500,000 $15,000,000Total Cost of Sales $5,000 $15,000 $75,000 $300,000 $600,000

Gross Margin $45,000 $135,000 $675,000 $7,200,000 $14,400,000

Expenses-Payroll $300,000 $300,000 $300,000 $700,000 $756,010Expenses-Others $15,160 $15,843 $16,561 $338,395 $44,990Total Operating Expenses $315,160 $315,843 $316,561 $1,038,395 $800,000

Profit Before Interest and Taxes

-$274,600 -$180,843 $358,439 $6,161,605 $13,600,000

EBITDA -$274,600 -$180,843 $358,439 $6,161,605 $13,600,000Taxes Incurred $0 $0 $107,532 $1,848,482 $4,080,000

Net Profit -$274,600 -$180,843 $250,907 $4,313,123 $9,520,000Net Profit/Sales 0% 0% 37.17% 59.90% 66.11%

--http://www.bplans.com/educational_research_business_plan/executive_summary_fc.php

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Gross Margin $45,000 $135,000 $675,000 $7,200,000 $14,400,000

Net Profit -$274,600 -$180,843 $250,907 $4,313,123 $9,520,000

Break Even Analysis

181 2 3 4 5

($2,000,000)

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Total Operating ExpensesGross MarginNet Profit

Projected Cash Flow

--http://www.bplans.com/educational_research_business_plan/executive_summary_fc.php

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Year 1 Year 2 Year 3 Year 4 Year 5

Cash Received $100,000

Subtotal Cash from Operations $50,000 $150,000 $750,000 $7,500,000$15,000,000New Investment Received $500,000 $500,000 $0 $0 $0

Total $550,000 $650,000 $750,000 $7,500,000$15,000,000

Expenditures from Operations

Cash Spending $300,000 $300,000 $300,000 $700,000 $756,010Bill Payments $15,160 $15,843 $16,561 $338,395 $44,990Subtotal Spent on Operations $315,160 $315,843 $316,561 $1,038,395 $800,000

Net Cash Flow -$165,160 -$165,160 $433,439 $6,461,605$14,200,000Cash Balance $334,840 $668,997 $1,102,436 $7,564,041$21,764,041Cash Balance $334,840 $668,997 $1,102,436 $7,564,041$21,764,041

Summary• Technology Transfer Market is incredibly complex and leaves

useful patents undervalued and overlooked.

• We offer a means to display Universities’ complete patent portfolio to the competitive industrial landscape

• We give value to the researchers

• Patent Connect requires $1 million to kick start the venture

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