keoke king ceo, co-founder
TRANSCRIPT
Keoke King ceo, [email protected]
Affordable Devices for Inclusion
USALow & Middle
Income Country Market
Market size $14 M + $12 M, growing fast
Year 3 market share 6% 15%
New cash payer segment + $1 M
Year 3 market share 20%
Largest Minority Group2017 2050
People with Disabilities ~1 billion 2 billion
% of Population 10% 20%
Wheelchair Users 77 million 200 million
Wheelchair Users Served Only 10%
Social Impact Business
Opportunity
• Participant is on a mission to democratize quality assistive products so that none are left behind.
• Uniques: cross-subsidy marketing, user centered design, exceptionally experienced founder team, strong industry tailwind, 3D printing and local production, B-Corp
Challenge• 80% of assistive products are made
for for 1/5 of the people in need.
Solution• Create affordable variants of proven
products• 10 products in the first 5 years
(design, OEM, or license)• First, use conventional
manufacturing. Design for localization with 3D printing and other tech.
Assistive products are a “bridge” to participation in education, work, & social life.
200 million wheelchair users in 2050
Big Market Big Impact
77 million wheelchair users in 2017
Level 1
Level 2
Level 3
Level 4
* see Income Level from Factfulness by Hans Groningen
Income Level
Market Urgency• USA & Canada -150,000
possible users
• Medicare pays for only one wheelchair. Transportable, outdoor alternatives are very expensive. Poor satisfaction.
• Lower Income Countries - fewer hospital births ==> higher incidence
TAM# SAM# TargetUS LIC* US LIC US LIC
Pediatric WC 100 69 80 35 40 9
Cushion 77 53 6 27 3 14Adult WC 533 369 96 185 48 46
# TAM - Total Available Market# SAM - Serviceable Market* LIC - Lower Income Countries** figures are in millions USD
• Lower Income Country market growth 10x in next 5 yrs. CAGR 3.7% due to UNCRPD*.
• WHO Priority Assistive Products List is focusing demand.
• ATScale2030.org - market shaping is pushing government procurement.
Strong Tailwind
* UN Convention on Rights of People with Disabilities
Product1 Features*
Benefits• Participation & health• USA: travel, quick trips,
outdoor play• Lower Income Countries: First
and only
• Tilt and standard postural support features
• Ruggedized• Jog stroller or wheelchair• Foldable and light• Removable seat module
usable as highchair• Grows with child• Walker and gait trainer
modules
Jog stroller, small rear wheels
Wheelchair, large rear wheels
Patent pending
Envisioned Solution
Mo
re a
ffo
rdab
le
Liberty $320
More customizable
Eio $600
Product1 $650
Cruiser $2300
MotiGo $373
>$4500
US Market
LMIC Market
Eio Cruiser Liberty MotiGo Product1Wheelchair or stroller
Jog strollerFoldable
Dynamic TiltCanopy
HighchairColor
optionsTray
Grows w/ child
Widths (in.)Weight (lbs.)
Price
8-1414 6-1910-18
Eio Cruiser>$4500 US Product, ex. Quickie Iris
Liberty
Product1 $290
3561483022
$600 $2300 $320 $363 $650/290
7-13
Secret Sauce
• Manufacturing - Initially, conventional manufacturing and limited value added - make consumable parts and partial assembly. Later, full local production with 3D printing - a factory in a box. Governments love this.
• Partnership with Nissin Japan for R&D and manufacturing
• Cross-subsidy - one base model for the USA and lower income countries. Low unit cost and sustainable margin.
• Product delivery and support streamlining
Competitors• Giant, slow, organized for Medicare prices (Sunrise, Invacare)• Or, very low quality design and price• Participant takes middle “value
positioning”
Business Model
Product1
High Income Country Market
(HIC)
Middle Income Country Market
(MIC)
Low Income Country Market
(LIC)Parents of children
with disabilities Distributor NGO
Price (to Amazon, Distributor, or NGO) $660 $450 $290
Manufacturing Cost $219* $209 $190
Shipping & Handling $42 ExWorks ExWorks
Amazon’s Markup (+15%) $99
Customer Price $759 $450 $290
Gross Profit $ and % $399 | 61% $241 | 54% $100 | 34%
* upscale model
Go To MarketUSA• Indiegogo pre-sales• Support groups• Webinars• Direct by e-commerce and
remote support (disruptive)
LMIC• Field trial LOI PO Contract• Conferences• Supply depots (UNICEF, CLASP)• Sales agents (Kenya, Colombia,
India)
User feedback
Indiegogo pre-sales in the USA
eCommerce & ExWorks sales to NGOs
Working prototype
Field trials Mass production February ‘20
FoundedMarch ‘18
Indiegogo (rewards)
Design freeze
Today
TeamKeoke King, MBA, CEO, BoD, 35% owner
• Sold 30,000+ wc in this market• Founded the CLASP supply chain solution
Dave Calver, OT, Chief Clinical Officer, BoD, 32% owner• Provided clinical service for thousands people in over 10 LMIC countries• Recognized global expert, wheelchair user, our evangelist.
Wayne Hanson, Product Developer, BoD, paid by royalty• Inventor, numerous innovative and top selling chairs. •Serial entrepreneur, founder of Kid Kart, founder of this industry. Three
successful M&A exits.Ghost, Chief of Design and Innovation, 34% owner
• Designed 100’s of wheelchairs, currently holds a CEO position• Joining at close of seed round
Advisory Board Expertise: Regulatory; CPA; Physical Therapist; Digital Marketing; Wheelchair Sales
Mass Pro (MP) P11st Proto Product1 (P1)
Traction• 3 successful crowdfunding efforts ($5k SSG, $10k IG, $10k Kiva)• 2 field trials done; 19 on plan (Kenya, Colombia, Canada, etc)• Letters of Intent for 3,000 units/yr., 70% of 1st year sales target.• Feedback from 200 experts
MP P3-6
Revenue Loan
MP P9-10MP P2 MP P7-8
March 2018
Indiegogo Pre-Sales P1
Thomas from Marin
• “We have been searching for years … Product1 is a real solution for a family like ours.” • ‘…impressive, unprecedented quality…borders on unfair to competitors’
• Seriously Interested NGOs and Distributors:USA, New Zealand, Canada, Indonesia, Philippines, Cambodia, Vietnam, Thailand, Samoa, Tanzania, Somalia, Kenya, Ukraine, Turkey, Kuwait, India, Togo, Romania, Peru, Russia, Colombia, Argentina, Georgia, Uganda, Mexico, Afghanistan, Tajikistan, Myanmar,
Equity A-RoundRevenue Loan
Today
• $440,000 revenue loan; paid from 5% of sales revenue; payback is 1.5 times invested amount; includes a 15% discount on future A-Round equity
• To date, two checks totaling $200k; $100k committed; minimum of $150k needed; cash on hand: $165k
• Pays for: 10 Prototypes, field trials for Product1 & 2, marketing, testing, FDA fees, and manufacturing tooling (a valuable asset)
• Fuels growth until Product1 is on sale and Product2 is in trials.• Then, $400,000 revenue loan in August ’20; $500k equity round late 2021