Oroclean presentation

1. Tirsdag d. 20/3-2012
42629 - Innovation in Product Development
Lærke Holstebroe Jeanne Lønstrup

2. Agenda
THE TEAM
ORIGINAL PRESENTATION FROM VENTURE CUP FINAL
BUSINESS PLAN
HOW IT ALL STARTED… (MIT ELEVATOR PITCH)
AND ENDED…
10 LEARNINGS AND QUESTIONS?
Lærke Holstebroe Jeanne Lønstrup

3. The Team
DTU Management
MSc. Stud.
Lærke Holstebroe Jeanne Lønstrup

4. Venture Cup Presentation
Original Slides from Venture Cup Final
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5. Venture Cup Presentation
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
Lærke Holstebroe Jeanne Lønstrup

6. Venture Cup Presentation
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
Lærke Holstebroe Jeanne Lønstrup

7. Venture Cup Presentation
15 – 20 milliones miners
Start up expences: DKK 5 mio.
Profit 1st year: DKK 3,5 mio.
OroClean – Doing good by doing well
Lærke Holstebroe Jeanne Lønstrup

8. The Business Plan…
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9. Content - Business Plan
+ Appendices:
• Patent feasibility
• Letter of recommendation
• Income Statement
• Competitor Analysis
• Mapping of Value Chain
• Cash flow
• Budget
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10. Business model
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11. Arguments to back up feasibility
• Geo Center
• Professor Kurt S Anderson
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12. Implementation Strategy
Local
Champion
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13. Current Status
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14. Projected Market Share / Competitor Analysis
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15. 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
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16. Income Statement for OroClean
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17. Cash flow for OroClean
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18. Problem
How it all started…
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19. USA – Exchange Program
Rensselaer Polytechnic Institute
Troy, New York
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20. Inventor’s Studio
”Think big. You can do it!”
– Burt Swersey
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21. 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
Lærke Holstebroe Jeanne Lønstrup

22. 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
Lærke Holstebroe Jeanne Lønstrup

23. What’s in it for me?
I want to be able to eat my tuna fish every day!
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24. Tell a touching story
Problem
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25. 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
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26. Search for Possibilities
Do you really need a patent?
Other ways to protect your product?
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27. Proof of Concept
Problem
Initial simple tests
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28. Spread the word – Get feedback
Semifinal: 10 selected, 120 entries
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29. 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
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30. Develop New Competencies Through Events
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31. Workshop with GeoCenter
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32. Understand the context
Problem
Gold Gold
Goldshops The Refiner The Miner
$ $
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33. 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
Lærke Holstebroe Jeanne Lønstrup

34. 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
Lærke Holstebroe Jeanne Lønstrup

35. After the Venture Cup Final
Accounting
Advices
Board of
advisers
Innovation
Environments
Student Incubator;
Office space & business
development sparring
Prototyping
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36. Problem
…. And ended
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37. 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
Lærke Holstebroe Jeanne Lønstrup

38. 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
Lærke Holstebroe Jeanne Lønstrup

39. Inspiration – The mushroom man Eben Beyer
http://www.youtube.com/watch?v=Di-cvmSAQEQ
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40. Video from Dell Social Innovation Competition
http://www.youtube.com/watch?v=LebCeHnr8R4
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41. Question?
”Its easier to teach a scientist business than to teach a
business man science”
”Scientists are the best entrepreneurs”
– Sharron Ballard
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42. 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
Lærke Holstebroe Jeanne Lønstrup