The document outlines 10 lessons learned from David Tester's experience founding Air Semiconductor from 2005 to 2010. It discusses the importance of having a clear vision, including additional launch markets in strategies, building a strong team, getting early adopter customers, accepting long development timelines, spending funds carefully, ensuring reference customers for investors, the myth of stealth mode, learning from founder peers, and accepting the fear and uncertainty of startups. It also provides links to additional information on Air Semiconductor's website and founder blog.
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1. In Need of Air
Lessons from Air Semiconductor, 2005 to 2010
David Tester
Founder, Air
2. In Need of Air
Lessons from Air Semiconductor, 2005 to 2010
Ten Lessons from Air
(âŠwith more lessons Iâm happy to share privately)
Lesson #1 Figure out the âBig Visionâ and then just get started!
#2 Include additional âlaunchâ market in the go-to-market strategy
#3 Take the time to build a strong team ⊠quality people are essential
#4 Get an early adopter âarchitecture licenseâ customer
#5 Just accept it will take 4 years to create initial (system level) product
#6 Spend every $1 as if itâs the last $1 ⊠and get used to that experience
#7 Be sure some early customers can be referenced by investors
#8 âStealth Modeâ is a myth ⊠your investor pitch will go to competitors
#9 Your founder peers will share their experiences with you, so just askâŠ
#10 You will quickly get used to the start-up fear, uncertainty and chaos!
Air Founder Blog âIn Need of Airâ: http://blog.ex-air.co.uk/
Air Website: http://www.ex-air.co.uk/air_website/index.html
Air History: http://www.crunchbase.com/company/air-semiconductor/
Email: david.tester@structured-custom.com Tel: +44 7958 052933
3. Sell Tescoâs car park to Sainsburyâs
Car park
Special offers at
Sainsburyâs today!
Press # for directions
1_.@ 3
DEF
2ABC
Location targeted advertising is only possible with
4GHI 6 MNO
5
7
âAlways-ONâ positioning in mobile phones
PQRS
JKL
9 WXYZ
8TUV
#
* 0+ïĄ
4. âAlways-ONâ GPS
The Key to Proactive Location Based Services
Nokia 6233 Motorola RAZR V3i Samsung E900 SEMC K610im LG KG800 Chocolate BenQ-Siemens SL91
Minimum standby Minimum standby Minimum standby Minimum standby Minimum standby Minimum standby
current: current: current: current: current: current:
2.1 mA 2.4 mA 3.6 mA 2.6 mA 4.0 mA 3.1 mA
Average current*: Average current*: Average current*: Average current*: Average current*: Average current*:
7.3 mA 7.8 mA 8.3 mA 9.4 mA 8.3 mA 9.9 mA
* Current draw based on âaverageâ use assuming battery recharge once every 4 days
How often does phone battery needs to be recharged if GPS active?
GPS must be limited to 1-2mA (or 10% of phone power)
Consumers need almost-instant response; push-to-fix delay of 1 second
Must maintain awareness of location since GPS does not work indoors !
5.
6. Initial Market: Digital Camera Market and Geotagging
GPS enabled DSC's DSC shipments
160 M 164 M
150 M 155 M
146 M
62 M
38 M
22 M
9M
2008 2009 2010 2011 2012
GPS modules developed by DSC partners
7. GPS 101
Receive Power is -130dBm to -160dBm ⊠20dB to 50dB below the Thermal Noise Floor!
Earth radius 86 k
m
35,7
6,378 km
km Geo-stationary
100
19, Regional geo-stationary
augmentation satellites
0 km
20,20 WAAS
Wide Area Augmentation System â USA
EGNOS
23,222 km European Geostationary Navigation Overlay
System â Europe
GPS
6 orbital planes; 55° to equator Galileo
Moon
Galileo Approx. 400,000 km
3 orbital planes; 56° to equator
GLONASS
GPS
3 orbital planes; 65° to equator Orbit 11 hours 58 minutes
13,900 km/h
GLONASS
8. The Air Team
David Tester Hugh Thomas
Founder & CTO CEO
Steve Graham Andy Heaton Hank Izumi
Co-Founder & VP Marketing VP Operations VP Sales Asia
RFIC Design System Design ASIC Design Software Design
Staff Staff Staff Staff
Employee #1 (20 years experience) Employee #3 (20 years experience) Employee #4 (10 years experience) Employee #7 (20 years experience)
Employee #2 (20 years experience) Employee #1 (20 years experience) Employee #5 (15 years experience) Employee #8 (15 years experience)
Employee #6 (15 years experience)
Contract Contract Contract
Contract #1 (15 years experience) Contract #3 (20 years experience) Contract #8 (20 years experience)
Contract #2 (15 years experience) Contract #4 (20 years experience) Contract #9 (15 years experience)
Contract #5 (20 years experience)
2x Synopsys IC layout contractors
Board of Directors Support Staff
Hugh Thomas CEO ex-CEO TapRoot 1x General Admin
David Tester CTO 1x Finance Manager
ex-CEO Andromedia (acquired Macromedia â99)
Kent Godfrey Pond Ventures
ex-CEO Frictionless Commerce (acquired SAP â06)
Michael Gera Pond Ventures
ex-CEO PortalPlayer (NASDAQ: PLAY)
Gary Johnson Independent ex-CEO S3 (NASDAQ: SIII)
9. Initial Idea (in 2005) to Prototype Silicon (in 2009)
Dual-Mode GPS
system design
SPECIFICATION
Dual-Mode GPS COMPLIANT
software design GPS RECEIVER
Acquisition DSP $1M Bridge Finance
Tracking DSP Architecture September â08
Architecture $1M Bridge Finance
Tracking DSP June â09
Tracking DSP Implementation
Implementation $1M Bridge Finance
Acquisition DSP February â09
Implementation
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F
Radio IC Radio IC A1250
A1250 silicon evaluation
Implementation Implementation IC design
Tracking DSP Air tracks GPS satellites with RFIC
Architecture March â08
PVT & RFIC + FGPA platform
First VC Meeting⊠Kalman Filter May â08
February â06
Air tracks GPS satellites with RFIC + FPGA
A1225 RFIC (v1) June â08
$1.25M Series-A1 Termsheet April â07 Air first PVT, confirms lab in Swindon
September â06 June â08
A1225 RFIC (v2)
A1250 single die GPS receiver
February â08
January â09
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F
2006 2007 2008 2009
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F
Electra Start-Up of the Year 2008
November â08
Gary Johnson joins Board of Directors
2x NASDAQ CEO (PortalPlayer & S3) IET Start-Up of the Year 2008
May â07 November '08
Prof Izzet Kale joins Technical Advisory Board
October â08
Engage with TSMC for silicon
Sept â06
Demonstrate GPS technology
July â08
Development starts!
June â06
Recruit external CEO Sell Air Patent Portfolio to u-blox
May â08 February â10
Air Inc + Ltd incorporated
May â06 Red Herring 100 Europe 2008
April â08
$1.75M Series-A Termsheet $3.8M Series-A2 Termsheet
April â06 November â07 Exit stealth mode
Announce 1st product
January â08
18. Customer Status: 174 Active Customer Leads
Markets:
Camera, Cellphone, Laptop PC, Netbook, Digital Watch, Asset Tracking
37 active leads generated proactively by Air
Including: Ability; Apple; Canon; Casio; DoCoMo; Foxconn; Fujifilm; LG; NEC; Nikon;
Nokia; Olympus; Panasonic; Pentax; Ricoh; Samsung Electronics; Samsung Techwin;
Sanyo Digital Imaging; Sony Ericsson; Softbank; Sony
20 active leads from VC introductions
Including: Google; Motorola; O2; Spreadtrum; Swatch; Vodafone
117 unsolicited enquiries resulting from PR activity
Including: Mediatek; Microsoft; RIM; Altek; Fujitsu; Hitachi; HTC; Mitac; Compal
Proactive
VC Introductions
Unsolicited enquiries
19. CSR / SiRF follow Air Semiconductor âAlways-ONâ
20.
21. In Need of Air
Lessons from Air Semiconductor, 2005 to 2010
Ten Lessons from Air
(âŠwith more lessons Iâm happy to share privately)
Lesson #1 Figure out the âBig Visionâ and then just get started!
#2 Include additional âlaunchâ market in the go-to-market strategy
#3 Take the time to build a strong team ⊠quality people are essential
#4 Get an early adopter âarchitecture licenseâ customer
#5 Just accept it will take 4 years to create initial (system level) product
#6 Spend every $1 as if itâs the last $1 ⊠and get used to that experience
#7 Be sure some early customers can be referenced by investors
#8 âStealth Modeâ is a myth ⊠your investor pitch will go to competitors
#9 Your founder peers will share their experiences with you, so just askâŠ
#10 You will quickly get used to the start-up fear, uncertainty and chaos!
Air Founder Blog âIn Need of Airâ: http://blog.ex-air.co.uk/
Air Website: http://www.ex-air.co.uk/air_website/index.html
Air History: http://www.crunchbase.com/company/air-semiconductor/
Email: david.tester@structured-custom.com Tel: +44 7958 052933