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IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 1
Immersive
Technology Studios Business Plan
Rev. 1.3
“Bridging the Gap between the Real & Digital World”
43 Daniel Dr.
Barre, VT 05641
p. 802-451-9162
https://vrtourpros.com
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 2
Table of Contents
I. Executive Summary ................................................................................. 4
Mission Statement
Highlights
Revenue Goals
Business Objectives
Keys to Success
II. Description of Business ........................................................................... 7
Legal Entity / Founding Team
Products and Services
Suppliers
Management
Timeline
III. Financial Management .......................................................................... 15
Financial Management
Phase 2 | Seed Round Funding
Phase 3 & 4 |Series A Funding Round
IV. Marketing ............................................................................................... 18
Market Analysis
Market Segmentation
Competition
Competitive Advantage
Pricing
V. Company Culture ................................................................................... 23
Commitment to Employees
Commitment to the Community
Commitment to Faith
Commitment to Diversity
VI. Appendix ................................................................................................. 25
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 3
Startup Expenses – (Appendix I)
Revenue Projections (Appendix II)
Milestones (Appendix III)
Market analysis (Appendix IV)
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 4
Executive Summary
Mission Statement
Immersive Technology Studios seeks to bridge the gap between the real and digital
world by building realistic, interactive, and immersive virtual reality tools to engage
audiences around the world.
Highlights
Immersive Technology Studios is seeking to build a world-class virtual reality
platform that will “bring education to life” by creating content and tools that will
engage students and improve learning retention, as well as provide educators the
tools they need to administrate, track, and report on their pupils progress.
This ambitious goal has been carefully mapped into four phases of the company’s
growth. Stage one, which is already underway, involves ITS providing VR services to
outside companies in order to discover the best practices in creating and building
content in this emerging technology field. Stage two marks the transition from a
service based company into a product based supplier by building an educational VR
platform that accomplishes the above goal. Stage Three will focus on creating
quality content that will be deployed on the platform. Finally in stage four,
estimated to be in Q3 of 2019, the platform will be release to the target market with
a revenue goal of $7 million in 2020 growing to $56.25 million by 2025.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 5
Revenue Goals
Business Objectives
Develop scalable virtual reality platforms and content for distribution into
select industries.
“Bring Education to Life” by creating quality VR platforms, content, and tools
for teachers and students to improve learning and knowledge retention.
Capture 6% ($12.9MM) of market segmentation within 3 years of product
release.
Capture 15% ($56.25MM) of market segmentation within 6 years of product
release.
2019 2020 2021 2022 2023 2024 2025
$2,700,000.00$7,000,000.00
$12,900,000.00
$20,400,000.00
$29,500,000.00
$40,200,000.00
$56,250,000.00
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 6
Keys to Success
Realistic – ITS believes that in order to take full advantage of virtual reality
technology the content that is experienced must be relatable. To that end we
believe in producing highly-realistic VR content that represents an actual life-
experience someone would have when using our VR products. This includes
producing high quality photo-realistic environments, not computer
generated model representations.
Interactive – ITS believes that the users should be in-control of their VR
experience. While being surrounded by amazing content is great, if users do
not have a way to interact with that content then the VR experience is
nothing more than a fancy “view-master.” Examples of interaction include
moving around the VR environment, as well as selecting and engaging with
elements within the experience.
Immersive – ITS believes that the best way to enjoy VR environments is
through highly immersive experiences. As a first step this means being an
advocate for the use and advancement of VR headsets within the culture.
However it also means expanding beyond simple headsets and creating
tactile experiences that can take advantage of even more immersive
technologies, incorporating both sound and touch elements.
Accessible – ITS believes that VR must be accessible to everyone, regardless
of their budget, VR headset choice, or lack of access to VR hardware. In order
to address this ITS has worked hard to develop a WebVR platform that is
cross-platform compatible and capable of working on all types SBS headsets;
ranging from the high-end and expensive luxury units, to basic and
affordable mobile VR models. Additionally the ITS platform provides non-VR
fallback options to use on mobile devices or computers for when VR is not-
practical or possible.
Visionary – ITS believes is bridging the gap between the real and digital
world. As part of this mission it means looking ahead toward the future,
identifying creative technology solutions to the world problems and
developing realistic ways to meet those needs.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 7
Description of Business
Immersive Technology Studios is a premier Virtual Reality (VR) Studio committed to
bridging the gap between the real and digital world by producing high quality VR
content that is realistic, interactive and immersive.
Legal Entity / Founding Team
Immersive Technology Studios is currently a tradename for Glover Ventures, LLC.
With majority ownership (75%) by Andrew Glover, and partial ownership (25%) by
John Parker. During the seed round investment period ITS will be split off into its
own separate entity, current options being considered are an LLC, or B-Corp.
Andrew T. Glover – Founder / CEO
A lifelong entrepreneur, Andrew Glover got his start in the business world in
middle school renting concession equipment and selling food and beverages
at local events. During high school he trained and worked as an AASI certified
snowboard instructor, and then supervisor at a ski-shop in West Dover, VT.
He would later return to manage that ski shop in the winter of 2011/2012.
After attending Liberty University, Andrew started Vermont Media Solutions
(VMS), a full service marketing company providing digital and traditional
marketing services to small businesses and organizations throughout New
England. In addition to providing consulting services through VMS, Andrew
has also worked as Marketing Coordinator at Hibbert & McGee Wholesalers
(5/12-1/14), and Director of Marketing at Moscow Mills, Inc. (1/14-10/15).
Today Andrew is the CEO of Glover Ventures, LLC. which owns and operates
both Vermont Media Solutions and Immersive Technology Studios.
John M. Parker – Co-Founder / CTO
A life-long geek, John found that "being a nerd" paid off in High School.
Representing Keene High School's Cheshire Career Center in SkillsUSA's
Vocational Industrial Clubs of America (or 'VICA' for short) competition, John
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 8
won first place in the state-wide challenge and went on to compete at the
national level in Kansas City, MO (twice). After leaving college at New
Hampshire Technical Institute, John returned to southwestern New
Hampshire to begin working as an Associate Software Engineer for ES3, LLC.
At ES3, he refined skills while developing technical solutions to support ES3's
efforts in becoming a world leader in Automated Warehousing.
Today Joh works as a Programmer Analyst at the world's largest dairy breed
association, Holstein Association USA. His most recent project involved the
development of a comprehensive management tool designed to help dairy
producers optimize investments in Holstein genetics through the use of
genomic testing. “Enlight”, developed in collaboration with Zoetis Services LLC
and Holstein USA, empowers dairy herd owners by providing them with
simple, convenient access to all their genetic information along with analytics
to turn that information into profitable herd management.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 9
Products and Services
Phase One – Service
In the early stages Immersive Technology Studios’ business model will focus on
streamlining the development of VR content. This includes developing the
technology to professionally produce and distribute content ranging from 360°
video, to virtual reality tours, to interactive VR experiences. The time spent in phase
one will provide ITS personnel the technical knowledge, practical experience, and
demonstrated proof-of-concept material needed to move into phase two.
During phase one revenue will be generated primarily through consulting and
production of special projects. This includes working with specific industries to
assist them with adopting the technology, as well as consulting on special one-time
projects.
Phase One Specific Services:
Virtual Reality Tours
360° Video
Interactive WebVR
Experiences
VR Distribution Methods
Monetization Models for
WebVR
General VR Consulting
Specific Examples of Customers:
Realtors
Colleges / Universities
Municipalities
Small Businesses
Tourism Industries (Hotels,
Resorts, B&B’s, Etc.)
Golf Courses
Marketing Agencies
Museums
Phase Two – Product Proof-of-Concept / Research
Immersive Technology Studios believes that in order to grow the company will need
to consolidate the consulting services into a product centered business model. The
company will take the knowledge and expertise gleaned from producing content
for other customers (phase one) and focus it into a unique application of the
technology that will have a disruptive impact in the educational industry.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 10
The anchor product for ITS, “Lyceum” (working project name), will be a consolidated
distribution platform and production company catering the educational industry.
Lyceum will “bring education to life” by providing students immersive virtual reality
experiences of culturally significant sites and events. These experiences,
consolidated and distributed through the Lyceum online platform, will help
teachers impart the true importance of the material they are teaching.
Instead of reading about the civil war, students will be able to walk around famous
battlefields, tour the national civil war museum, and witness a reenactment of the
surrender of General Lee. Instead of just learning about immigration, students will
have the opportunity to experience what it is like to take the journey that an
immigrant takes. Instead being told what it’s li ke to walk through the catacombs of
Rome they will be able to do it for themselves.
ITS has several goals during phase two, these include:
Producing 1 – 2 VR Cultural Experiences (Modules)
Develop minimum-viable-product (MVP) of Online Distribution Platform
Establish test-cell to both demo the software as well as collect data on results
of educational improvements.
During phase two ITS will be producing little to no revenue.
Phase Three – Content Production
Once Lyceum MVP has been developed and positive results have been
demonstrated in a classroom environment ITS will move into its third phase.
One of the more unique aspects about Lyceum is that all content will be produced
by ITS at no cost to the cultural / heritage site. Instead ITS will partner with each
educational leader to produce content that they can in-turn use free of charge
within their own organization, in exchange for licensing and distribution rights. By
doing this ITS hopes to have greater access to more enriching environments and
places. Phase Three will focus on generating this content.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 11
To accomplish this ITS will work with state and national educators to identify
educational tracts that scholastic users will be able to incorporate into their
educational curriculum. Each module that is produced will consist of:
Interactive Virtual Reality Tours
Interactive VR Story Telling
360 Video Documentaries
Example Module: Civil War
VR Tours: Fort Sumter, Manassas Battlefield, Appomattox Court House,
National Civil War Museum.
Interactive Story Telling: Q&A with Abraham Lincoln, Robert E. Lee, and
Ulysses Grant. Q&A With Civil War Historian.
360 Video: Battle Reenactments, Period Life Overview, VIP Biographies
As an educational tool the primary market for Lyceum is public and private schools
and school systems. Therefore a key component of the system will be the backend
features that Lyceum offers to educators on both the individual teacher level and
school level. During phase three the Lyceum platform developers will be working
on integrating user level tracking and reporting that will be available to teachers to
track the progress and improvements of their students.
The primary goals of phase three are:
Develop content modules
Finalize Lyceum Platform
Beta-release to select markets
Collect User Feedback and Success Stories
Develop Marketing & Sales Material
Phase Four – Publication & Sales
Once the Lyceum platform is ready to go ITS will release the platform to the general
market, and ramp up direct sales efforts (See Marketing / Sales). This includes
working with federal, state, and local educators for adoption within institutional
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 12
organizations, as well as to other educational markets such as home educators,
self-educators, and special interest groups.
Suppliers
ITS is either already working with, or anticipates working with, a variety of software
and hardware suppliers in order to produce our engaging VR content.
Software Suppliers:
PTGUI (Stiching Software)
Kolor (Stiching Software)
Video Stich (Stiching Software)
Adobe Creative Suite (Production
Software)
KR Pano (WebVR Framework)
A-frame IO (WebVR Framework)
Moz VR (Open Source Community /
WebVR Framework)
AWS - Amazon Web Services
(Online Hosting and Cloud
Computing Services)
Hardware Suppliers:
Giroptic 360 (Camera)
Black Magic Design (Camera)
Panono (Still Camera)
Midnite Engineering (Engineering
Manufacturer)
Steerling Technologies
(Manufacture)
Oculus Rift (VR Headset)
Google Cardboard (VR Headset)
HTC Vive (VR Headset)
Leap Motion / Orion (Hand &
Motion Tracking
As the company grows we anticipate utilizing more software and hardware
solutions to efficiently solve challenging problems.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 13
Management
Chief Executive Officer (CEO) – Andrew Glover
The CEO’s role will be to oversee company operations and ensure progress is being
made toward overall company goals. Furthermore CEO will work with department
heads to develop creative solutions to problems. Additionally CEO will be primarily
responsible for forming strategic business partnerships and alliances to set the
tone for future business opportunities.
Chief Technology Officer (CTO) – John Parker
The CTO’s role will be to develop and fine-tune the technical capabilities envisioned
for the company. CTO will work hands on with development team to produce the
webVR platform which will enable ITS to serve its target market(s). Additionally CTO
will work with CCO to ensure that creative works are properly formatted within the
ITS platform.
Consulting Chief Legal Officer (cCLO) – David Sterrett
The CLO’s job is to ensure company minimizes legal risks associated with the
company’s strategic partners, customers, and government regulations. Additionally,
CLO will assist CEO / CFO with investor relations. Currently the CLO position is
contracted out to Sterrett Law, PLC as a consulting position.
Creative Officer (CCO) – Still Needed*
The CCO will be responsible for the creative works produced for ITS. The CCO will
work closely with the CEO, CTO, and DEP to develop realistic, interactive and
immersive virtual reality content that will be engaging for the target market.
Chief Marketing Officer (CMO) – Sill Needed*
Chief Marketing Officer will be responsible for working with the CEO to promote the
use VR technology and ITS products and services. Additional CMO will be
responsible for general business development and initial sales opportunities. This
position will not be needed until middle of phase three.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 14
Director of Educational Programs (DEP) – Still Needed
The Director of Educational Programs will be responsible for developing
educational modules and will work with CCO to develop engaging educational
content.
*Indicates that several candidates have already been vetted, or identified.
Timeline
Apr-16 Oct-16 May-17 Nov-17 Jun-18 Dec-18 Jul-19 Jan-20 Aug-20 Mar-21 Sep-21
Phase One
Seed Round Funding
Phase Two
Series A Funding Round
Phase Three
Phase Four
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 15
Financial Management
Financial Management
Day-to-Day financial management, including book keeping, payroll and taxes will be
outsourced to a local Vermont accounting firm. Strategic financial planning will be
performed in a collaborative effort between the senior leadership team, and the
controller.
The services provided by the controller include:
Record all downloadable bank
and credit card transactions.
Bookkeeping
Standard financial statements
Semi-Annual Reviews
Accounts payable management
Payroll
Invoicing
Inventory management
Accrual-based accounting
Answers to complex accounting
questions.
Customized financial
statements.
Quarterly Reviews
Coaching
Participate in company
meetings
Other Controller services.
Phase 2 | Seed Round Funding
Immersive Technology Studios will seek to raise $1.75 Million Dollars in an initial
seed round funding period. The money raised for this round will be used to cover
phase 2 operations. Included in this raise amount is the hiring of six full-time
employees. The procurement of necessary startup capital equipment. As well as the
necessary operating expenses associated with running a business. In total the
funds will cover 100% of the expenses for a two year period. See Appendix I for
more information.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 16
The seed round funding will be raised by ITS in collaboration with the
WeFunder.com equity crowdsourcing platform, and it is anticipated that $1MM will
be raised through Title III CF, and $750K through traditional regulation D funding..
In addition to the funds received in the seed round ITS also has plans to apply for
several grant opportunities, such as the Department of Education’s SBIR Grant.
While not necessary, these grants have the opportunity to bring in additional
funding (Up to $1,050,000) that can be used to expedite and improve the ITS
platform.
Payroll, Benefits & Taxes $1,277,054.04
Capital Equipment $94,210.00
Operating Expenses $219,068.00
TOTAL ANTICIPATED
STARTUP EXPENSES
$1,590,332.04
Seed Round Funding Goal: $1,750,000
Phase 3 & 4 |Series A Funding Round
The primary goal of phase 2 is to build a MVP of the ITS platform, as well as use the
content and platform in test cells to collect data and feedback from users. Once
these goals are completed ITS will move forward into phase three using funding
from a second round of funding (Series A funding round). Specific funding for this
round has not been finalized but is estimated to be between $30-$50MM. This is in
line with other Series A funding amounts from similar VR firms including Jaunt,
Magic Leap, MideMaze, and others.
Series A funding will be used to fund phase 3 and the start of phase 4. This includes
hiring as many as 40 employees ranging from programmers to content producers,
and researchers to sales teams. Additionally funds in this round will be used to
procure a permanent facility, purchase capital equipment, produce content, and
pay for marketing expenses.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 17
Exit Strategy
Exit for Seed Round Investors
ITS anticipates either an acquisition or IPO to happen in 2025 or earlier.
Leadership / Founder Exit
The founders of Immersive Technology Studios are committed to the success and
growth of the company. As a part of this commitment the founders will remain
material participants in the company for a minimum period of 5 years, with
additional tenure depending on company acquisition and later funding rounds.
Ideally the founders will remain as advisors, or chair-members, even after their
material participation period has ended.
Furthermore, non-founding C-level leadership and phase 2 employees will be
provided stock option with vesting periods of 5 years. This will encourage
employees to remain at the company and dedicate their work toward the long-term
financial success of the organization.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 18
Marketing
Market Analysis
According to Goldman Sachs, the combined VR market will be generating a
combined $80 Billion dollars in revenue by the year 20251. Other reports, such as
the TrendForce VR market report, estimate that the market adoption may be as fast
as $70 Billion by 20202. Furthermore, Goldman Sachs estimate the revenue within
the educational market to be $300 million in 2020 and $700 million by 2025, with a
total user base of 15 million users.
Market Segmentation
The Lyceum primary market will be secondary public and private schools, of which
there are 37,000 in the U.S. alone. Furthermore we anticipate additional market
opportunity within the primary schools (grade 5-8), of which there are 98,000 in the
U.S.; as well as colleges and universities (4,100 total schools). This leads to a grand
total of 139,240 schools serving over 48 million students. Additionally, there are
~150 million students in other developed countries.
US Target market (Total # Schools)
1 http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtual-
and-augmented-reality/report.pdf 2 http://press.trendforce.com/press/20151204-2210.html
5 - 8 Grade (Public)98,000
9 - 12 Grade
(Public & Private)37,100
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 19
Competition
As of this moment there are no public projects that have a similar business model.
That being said, there are several competitors that could encroach on ITS’s targeted
market segmentation.
Google Expeditions
The biggest competitor that has the closest business approach to Lyceum is
the Google “expedition” program (GEP). This micro-venture from Google is
currently “invite only” and provides hands-on demos inside select classroom
environments. Google is leveraging their street-view database and other VR
platforms to provide teachers a way to provide student’s access to heritage
sites that otherwise wouldn’t be accessible. However these “experiences” are
only available when GEP schedules a school visit, and it’s not clear how or if
Google is generating revenue.
The biggest difference between Google Expedition Program and ITS is that
the GEP is a one-time experience, where as ITS is looking to incorporate our
VR content into school curriculum and teaching methods. Additionally ITS is
looking to incorporate more than just tours of heritages site, but also
interactive learning experiences as mentioned above.
Incidentally Google Ventures / Alphabet, would be a potential buyer /
Investor in Lyceum during Series A or later funding rounds.
Heritage Site Specific Products
Another competitor will be the individual heritage sites themselves, where
they will be producing, distributing, and controlling their own VR content. An
example of this is the virtual tour (not VR compatible) of the Smithsonian
National Museum of Natural History available on their website.
By providing VR services free-of-charge to these heritage sites ITS hopes to
entice individual museums to use ITS for their VR exhibits in exchange for
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 20
licensing and distribution rights. Additionally ITS will, in general, be able to
produce higher quality experiences compared to a museum taking on the
project on their own.
Other VR Production Firms
Truth be told, this is an emerging industry, where the technology is being
openly shared and collaborated on, but the individual applications of the
technology are being kept secret. It is likely that other startup VR firms are
exploring applications within the educational market, and specifically within
the virtual experiences market.
However from research that we have been doing most of the models rely on
charging heritage sites for VR services, and not creating a consolidated
database of VR content for educational use. This is the difference between
charging the heritage sites and charging the end-users.
The primary advantage that ITS has against other startups is that we are
hoping to create a consolidated database and platform with quality VR
content by creating that content free of charge for the heritage sites, and
providing educators the tools they need to make teaching the content more
engaging.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 21
Competitive Advantage
As alluded to above ITS has several competitive advantages:
Providing heritage sites free VR services in exchange for licensing, distribution
rights and data intelligence.
Creating a consolidated platform where users don’t need to search for their
content across the internet.
Providing teacher and educator tools to track student engagements.
Low cost subscription based pricing.
Other potential advantages include:
Because ITS is providing free VR services to heritage sites we hope to have
better access to the environments, providing content that would otherwise
not be possible.
As a planned B-Corp, our social mission status can hopefully be leveraged for
outside grants and open additional doors that may otherwise be closed to
traditional for-profit ventures.
By working with WebVR content the VR experiences can be used immediately
without high startup costs within the educational institutes. (i.e. school
systems do not need to invest in expensive VR headsets and computers).
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 22
Pricing
Revenue will primarily be derived from subscription based access to the tools and
platforms for educators and consumers.
Standard Annual School Subscription: $25 per enrolled student / ~$10,000 per
school
Includes:
Access to all VR Content
Student Level Reporting
Development of “tracts” for teachers to use inside classroom (teachers can
set-up drip feed to student assignment areas).
Standard Homeschool Subscription: $25 per month per household (up to 6
students)
Includes:
Access to all VR Content
Student Level Reporting
Standard Consumer Subscription: $9.99 per month / $5 Day Pass / $2 Single
Module Day Pass
Includes:
Access to all (or select) VR Content
Other Revenue Generating Activities
Creation of Special Interest Modules
Creation of Custom Made Tracts for State or Regional School Systems
Sponsorships
Advertisements
Sale of Hardware
Royalties / Residuals / Licensing
White Label Platform
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 23
Company Culture
Commitment to Employees
A founding principle for ITS is that employees are the most important asset the
company has, and that each employee is irreplaceable. This is especially true in a
startup venture operating with emerging technology. As such it is important for ITS
to ensure that their health, financial wellbeing, education and family are taken care
of. In addition to providing a highly competitive salary, each employee’s benefit
package will include:
75% of Health Insurance Covered for Family
3% Matching 401K
15 Days of No-Questions Asked Paid Time Off | Up to 25 Days after 5 Years
6% of Salary Toward Continuing Education Opportunities (CEC)
o First 3% toward student debt reduction (or if no student debt, amount
is added to CEC).
The time and care that we provide for our employees will allow them to be
dedicated to the company and produce high quality work without having to be
encumbered by circumstances that it are within ITS’s ability to influence.
Furthermore each phase 2 employee will be provided company stock options with a
vesting period of 5 years. Phase 3 & 4 Employs will be provided some type of
performance-based profit sharing bonuses.
Commitment to the Community
In addition to Immersive Technology Studios’ commitment to employees, we are
equally committed to the communities that host the company and our workforce.
Employees will be encouraged to participate in paid volunteer time.
ITS will sponsor student tech organizations and events
ITS will provide specific funding toward events and initiatives that align with
our statement of faith.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 24
Commitment to Faith
Immersive Technology Studios is founded on, and will be managed by, Christian
principals. These principles include commitments to trust and honesty,
dependability and dedication, integrity and quality, understanding and love. Our
goal is to foster an environment and mission that our customers and investors can
believe in.
While we don’t expect every one of our employees to have the same beliefs or
lifestyles as our own, we do expect that they will hold the above values as worth
being known by.
Commitment to Diversity
The unfortunate reality of the technology industry is that there is a major lack of
diversity in the community. This is even truer for Vermont, which is considered one
of the least diverse states in the country. ITS is committed to ensuring that every
candidate interviewed is considered regardless of their race, age, religion, nation-
of-origin or sexual orientation. Every effort will be made during the hiring process
to eliminate questions that could reveal any of the above socio-economic statuses
in the hiring process. Additionally ITS will institute a strict anti-discrimination policy
on day one to ensure that everyone is treated with respect and appreciation.
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 25
Appendix
Startup Expenses – (Appendix I)
The below startup expenses are to cover the phase two startup period, which
marks the transition between service oriented and product oriented business
model, and the development of the Lyceum platform. These line-items will cover
a period of two years, at which point Series A funding round will be used to cover
phase three and four expenses.
Overview
Payroll, Benefits & Taxes $1,277,054.04
Capital Equipment $94,210.00
Operating Expenses $219,068.00
TOTAL ANTICIPATED
STARTUP EXPENSES
$1,590,332.04
Seed Round Funding Goal of $1,750,000
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 26
Payroll
Position Annual Salary 401 K (Matching)
Healthcare Continuing Education
FICA VT UI Total Compensation Package
CEO $75,000.00 $2,250.00 $16,606.17 $4,125.00 $5,737.50 $750.00 $104,468.67
CTO & Senior Programmer
$85,000.00 $2,550.00 $16,606.17 $4,675.00 $6,502.50 $850.00 $116,183.67
Creative Director $75,000.00 $2,250.00 $16,606.17 $4,125.00 $5,737.50 $750.00 $104,468.67
Director of Educational Programs
$75,000.00 $2,250.00 $16,606.17 $4,125.00 $5,737.50 $750.00 $104,468.67
Senior Programmer $85,000.00 $2,550.00 $16,606.17 $4,675.00 $6,502.50 $850.00 $116,183.67
Jr Programmer $65,000.00 $1,950.00 $16,606.17 $3,575.00 $4,972.50 $650.00 $92,753.67
Annual Payroll $460,000.00 $13,800.00 $99,637.02 $25,300.00 $35,190.00 $4,600.00 $638,527.02
Total Phase 2 Payroll $920,000.00 $27,600.00 $199,274.04 $50,600.00 $70,380.00 $9,200.00 $1,277,054.04
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 27
Capital Equipment
Price Units Total
Hardware
Still Cameras (Panono) $2,000.00 1 $2,000.00
DSLR Cameras & Lens $9,000.00 1 $9,000.00
Omni Camera System $6,000.00 1 $6,000.00
Black Magic Camera System $14,000.00 1 $14,000.00
Computers, Monitors, & Peripherals $3,400.00 6 $20,400.00
Internal Server $12,000.00 1 $12,000.00
Data Storage & External Drives $300.00 6 $1,800.00
Other Hardware $13,040.00 1 $13,040.00
Subtotal $78,240.00
VR Headsets
Oculus Rifts $600.00 2 $1,200.00
HTC Vive $800.00 2 $1,600.00
Mobile Phones (Android, IPhone, Etc.) $700.00 3 $2,100.00
Subtotal $4,900.00
Lifetime Software License / Purchase
Kolor - AVP 2 $700.00 2 $1,400.00
Kolor - PTP 2.5 Bundle $700.00 2 $1,400.00
PTGUI - Corporate License $406.00 2 $812.00
VideoStitch Studio 2 $745.00 2 $1,490.00
KRPano $457.00 4 $1,828.00
360 HeroCam Man $225.00 2 $450.00
Other Software $3,690.00 1 $3,690.00
Subtotal $11,070.00
Total Capital Equipment Needs $94,210.00
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 28
Operating Expenses
Monthly Annually Phase Two
General Business Exp.
Office Space $2,500.00 $30,000.00 $60,000.00
Legal Services $1,000.00 $12,000.00 $24,000.00
Controller Services / Bookeeping $1,000.00 $12,000.00 $24,000.00
Office / Admin $900.00 $10,800.00 $21,600.00
BOP Insurance $416.67 $5,000.00 $10,000.00
Travel $1,423.50 $17,082.00 $34,164.00
Cell Phones $440.00 $5,280.00 $10,560.00
Subtotal $7,680.17 $92,162.00 $184,324.00
Server & Hosting Expenses
AWS - S3 $29.00 $348.00 $696.00
AWS - EC2 $48.00 $576.00 $1,152.00
AWS - EBS $50.00 $600.00 $1,200.00
Subtotal $127.00 $1,524.00 $3,048.00
Monthly Software Licenses
Adobe CC $414.00 $4,968.00 $9,936.00
Microsoft Office $75.00 $900.00 $1,800.00
TeamWork - Projects $149.00 $1,788.00 $3,576.00
TeamWork - Desks $120.00 $1,440.00 $2,880.00
GitHub $34.00 $408.00 $816.00
Slack - Standard $42.00 $504.00 $1,008.00
Zapier - Business $20.00 $240.00 $480.00
Other Subscriptions $416.67 $5,000.00 $10,000.00
GrassHopper $50.00 $600.00 $1,200.00
Subtotal $1,320.67 $15,848.00 $31,696.00
Total Operating Expenses $9,127.83 $109,534.00 $219,068.00
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 29
Revenue Projections (Appendix II)
Based on Goldman Sachs market analysis report, and goal of 25% Market
Segment Penetration in 3 Years, 65% in 6 Years.
2019 2020 2021 2022 2023 2024 2025
$2,700,000.00$7,000,000.00
$12,900,000.00
$20,400,000.00
$29,500,000.00
$40,200,000.00
$56,250,000.00
Year Revenue Expectations Notes
2016 Seed Funding Round
2017 Start of Phase 2 – Jan 2017 (or earlier)
2018 Series A Funding Round Start – Jan 2018
Start of Phase 3 – June 2018 Lyceum Alpha Release – June 2018
2019 $2,700,000
Lyceum Beta Release – January 2019 Start of Phase 4 – June 2019
Lyceum Public Launch – June 2019
2020 $7,000,000 First Full Year of Lyceum on Market
2021 $12,900,000
2022 $20,400,000 8% of Market Goal Reached
2023 $29,500,000
2024 $40,200,000
2025 $56,250,000 15% of Market Goal Reached
$168,950,000.00 10 Year Revenue Projections
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 30
Milestones (Appendix III)
Seed Funding Round Completed
Phase Two Start
o ITS Team Finalized / Personnel Hired
o Collect Working Content Created For Dev. Use.
Use Content From Phase One
Generate Missing Content
o Apply for SBIR Grant (Dec. 2016)
Lyceum LMS Core Features Completed
o Basic Content Database Structuring Completed
o User Relationship Structure Completed
o Basic Tracking Completed
o Basic Reporting Completed
o Develop Basic User Interface
First Content Module Completed
o 3-4 VR Tours
o 3-4 360° Videos
o 1-2 Interactive VR Experiences
o Integration of Outside Content
o First Content Module Integrated Into Lyceum LMS
Test Cell Established
o Identify 2-3 Classroom Environments with different demographics
o Segment Classrooms into user groups
o Provide & Assist Teachers in administrating assignments
o Administer Assignments
o Receive & Analyze results
o Collect User Feedback
o Write 1st Academic Research Paper
Combine Results into Actionable funding Package for Series A Funding Round
Complete Series A funding Round
Start Phase 3
Build Team
o Build Team As Needed
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 31
Start Content Creation
o Develop 9 – 12 Module Tracts
o 4 Content Teams Developing 2 – 3 Modules Each
o Have 9-12 Full Modules Ready for Launch of Phase 4
Refine LMS Platform
o Increase User Tracking and Reporting Functions
o Develop Intuitive UI
o Migrate from Development Servers to Production Ready Environment
Build Mobile App
NEED MORE INFO
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 32
Market analysis (Appendix IV)
U.S. Market Value Table
Based on $25 Annual Student Subscription
U.S. Segmentations
Student Population
Size
Schools In US
Avg. School
Size
Average Annual Cost Per School
Total Market Value
5 - 8 Grade (Public)
14,841,000
98,000
151 $3,785.97 $371,025,000.00
9 - 12 Grade (Public & Private)
16,067,000
37,100
433 $10,826.82 $401,675,000.00
College / University
17,487,475
4,140
4,224 $105,600.69 $437,186,875.00
Total Potential Market Size
48,395,475
139,240
$1,209,886,875.00
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016 33
Market Segmentation Table
Based on Extrapolation of Goldman Sachs Market Segmentation Estimates.
Year GS User Market Adopters Estimate
% of US Student Population
GS User Market Revenue
Per User Total Spend
ITS User % Target Based on GS Estimates
ITS User Target ITS Annual Revenue Targets
Based on $25 Subscription.
2016 600,000.00 1.2% $3,000,000.00 $5.00 0 - $0.00
2017 2,200,000.00 4.4% $37,714,285.71 $17.14 0 - $0.00
2018 3,800,000.00 7.6% $97,714,285.71 $25.71 0 - $0.00
2019 5,400,000.00 10.8% $185,142,857.14 $34.29 2% 108,000.00 $2,700,000.00
2020 7,000,000.00 14.0% $300,000,000.00 $42.86 4% 280,000.00 $7,000,000.00
2021 8,600,000.00 17.2% $375,123,809.52 $43.62 6% 516,000.00 $12,900,000.00
2022 10,200,000.00 20.4% $452,685,714.29 $44.38 8% 816,000.00 $20,400,000.00
2023 11,800,000.00 23.6% $532,685,714.29 $45.14 10% 1,180,000.00 $29,500,000.00
2024 13,400,000.00 26.8% $615,123,809.52 $45.90 12% 1,608,000.00 $40,200,000.00
2025 15,000,000.00 30.0% $700,000,000.00 $46.67 15% 2,250,000.00 $56,250,000.00
Red Values provided by Goldman Sachs 2016 VR Market Report on Education Sector.
http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtual-and-augmented-reality/report.pdf