berkeley, berkeley class, business model, business model canvas, customer development, engineering, lean launchpad, lean startup, startup, steve blank

1. MedAid
106 Interviews
A health monitoring device for quick
and simple blood analysis and
performance indication.
Target customer segment:
Chronic disease patients, health
conscious individuals, athletes
A fast-results blood testing device as
an alternative to a lab, for use in
developing regions.
Target customer segment:
Doctors
Where we started Where we ended up

2. The Team
Elmer Villanueva
MBA
Jie Ma
M.Eng, Bioengineering
Prajanya Kendrekar
M.Eng, Mechanical Engineering
Laura Sverchek
M.Eng, Mechanical Engineering
Jim Patterson
CPO, Earnest
Hustler Inventor PickerDesigner Mentor

3. Microfluidics → Nano-luminescence
Is it possible to accomplish what
Theranos claimed to do?

4. First hypothesis: Athletes and fitness enthusiasts
want to monitor their health on-the-go

5. Chronic disease
patients would be
happier if they had
an at-home health
monitoring device

6. Health-conscious
consumers
Preventative care
patients
Chronic disease
patients
Nutritionists
Professional athletes
Athletic trainers
Doctors
Dialysis centers and
clinics
Internet sales
Pharmacies
Retail outlets
Doctor’s offices
Device sales
Sales of companion technologies (e.g. apps, trackers)
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK1
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Health stores/ pharmacies
Hospitals
Life insurance companies
Chronic disease patient
support groups
Intellectual property
Device design
Manufacturing facilities
People
Seamless, easy to use,
trusted home health
monitor
Quick blood analysis
Health suggestions
Avoids trips to the
doctor/lab
Portable equipment
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities
Broad value
proposition:
Seamless,
portable, quick
Broad customer
segment focus:
Chronic patients,
athletes, doctors

7. Initial MVP - Phone accessory

8. What we learned (I)
Customers don’t feel strongly about monitoring their blood work
themselves
“ I don't know how often I need to get my blood tested. I trust [the dialysis
center] to take my samples often enough to keep me healthy.“
- Bob Buonocore, patient with chronic kidney disease
“If you just gave me my blood work... I wouldn’t know what it meant or what
was optimal for me “ - Margarita Krivitski, endurance athlete
“All the tests you mention for athletes, fitness enthusiasts or chronic
[disease] patients are not needed immediately. One day delay in test
results does not affect anything’’ - Dr. Anjali Damania, Pathologist

9. New hypothesis:
Doctors could
treat patients
more effectively if
they have faster
results and the
ability to test in
office

10. Preventative care
patients
Chronic disease
patients
Nutritionists
Doctors
Dialysis centers and
clinics
General physicians
w/private practices
Cardiologists
Endocrinologists
Internet sales
Pharmacies
Retail outlets
Doctor’s offices
Direct sales
Device sales
Sales of companion technologies (e.g. apps, trackers)
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK3
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Health stores/ pharmacies
Hospitals
Life insurance companies
Chronic disease patient
support groups
Intellectual property
Device design
Manufacturing facilities
People
FEATURE: Blood work
results in less than 30
minutes
PR: Avoids trips to the
doctor/lab
FEATURE: Portable
equipment
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and
processing time
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities
Shift in focus:
from patients to
private practitioners
and critical disease
doctors
Refined value
prop: defined
features and
gains

11. Second MVP - MVP is the data, not the device

12. What we learned (II)
Doctors in the US are comfortable with what they have in place
“I deal with diseases that can wait for [blood test]
results. If it’s something that needs immediate
attention, I send to the ER room in Alta-Bates. ”
- Dr. Michiyo Kawachi, General Physician
“Lab turnaround is not a big problem in the ER.”
- Dr. James Sverchek, Emergency Room
“Getting results immediately might help give patients
peace of mind, but wouldn’t affect the way I practice.
I’m used to what we have. Anything new would take
some getting used to. “
- Dr. Scott Peerenboom, Internal Medicine

13. So we explored the need overseas...

14. Indian Healthcare System (I)
Lack of diagnostic infrastructure in Tier 2 cities and below
Unacceptably long waiting
time for 830 million people
Unmet need for a fast and
low-cost blood testing system

15. Indian Healthcare System (II)
Lack of public & insured healthcare in Tier 2 cities and below
Almost no medical insurance:
doctors have the freedom to
decide which devices to use
Prevalence of private
healthcare providers: flexibility
in decision-making by owners

16. Market Size
$3.65 Billion
$7.42 Billion
$912 Million
TAM (USD): Doctors in India who
could potentially own the device
(cost of device: USD 8k)
SAM (USD): Doctors serving tier 2
and below populations
Target Market (USD): 25% of SAM

17. General physicians
w/private practices
Cardiologists
Endocrinologists
Pediatricians
Phlebotomists at blood
testing labs
OPD Doctors in Tier-2
Indian cities and lower
Internet sales
Direct sales
Distributor network
Medical network
Lab network
Device sales
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK5
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Hospitals
Intellectual property
Device design
Manufacturing facilities
People
FEATURE: Blood work
results in less than 30
minutes
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and processing
time
GAIN: Save lives
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities
Revised
geographical
focus
Ultimate value
prop: Save
lives!

18. What we learned (III)
Doctors in India want our device!
“Give me test results in 15 mins and I will save the
life of every Pancreatitis patient that I treat.”
- Dr. Prasad, General Physician
“Rural areas have little or no access to diagnostics. Sometimes it takes 18
hours to get results in an emergency condition that are needed in 15
mins.”
- Dr. Khatri, Private pathology lab
“Many conditions go undiagnosed in rural areas. Doctors try and treat
based on symptoms alone. We really need a device that reduces our
guesswork while treating critical diseases.”
- Dr. Shirkant Kulkarni, Doctor, Govt. of Maharashtra

19. What we learned about Partners
● More than 1000 languages + Fragmented market = We need regional distributors
● Cost is an important factor in the market = local manufacturers can help us keep
costs low
● Initial investment is high for rural areas = Local financiers

20. Payment Flow Diagram
Local financiers
Pre-pay $8000
/ device
$0.75 / cartridge
$ 1000 / device
Patients Doctors
MedAid
$4 / test
Manufacturers
$2.75 / test$5 / test
$6400 / device
$2.2 / test
Distributors
$ 5400 / device
$ 1.45/ test * 38,325 test/ lifetime
+
$ 61k lifetime profit/ device

21. Where we are now
Product market fit in the Indian market
Local investors are willing to finance the equipment
Minimum 5 years to product launch
Substantial funding required to further develop the technology & complete trials
Difficult to enforce IP protection
Fierce price competition in India

22. And More

23. Business Model Canvas Progression

24. Health-conscious
consumers
Preventative care
patients
Chronic disease patients
Nutritionists
Professional athletes
Athletic trainers
Doctors
Dialysis centers and
clinics
Internet sales
Pharmacies
Retail outlets
Doctor’s offices
Device sales
Sales of companion technologies (e.g. apps, trackers)
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK1
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Health stores/ pharmacies
Hospitals
Life insurance companies
Chronic disease patient
support groups
Intellectual property
Device design
Manufacturing facilities
People
Seamless, easy to use,
trusted home health
monitor
Quick blood analysis
Health suggestions
Avoids trips to the
doctor/lab
Portable equipment
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities

25. Health-conscious
consumers
Preventative care
patients
Chronic disease patients
Nutritionists
Professional athletes
Athletic trainers
Doctors
Dialysis centers and
clinics
Internet sales
Pharmacies
Retail outlets
Doctor’s offices
Device sales
Sales of companion technologies (e.g. apps, trackers)
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK2
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Health stores/ pharmacies
Hospitals
Life insurance companies
Chronic disease patient
support groups
Intellectual property
Device design
Manufacturing facilities
People
Seamless, easy to use,
trusted home health monitor
Quick blood analysis
Health suggestions
FEATURE: Blood work
results in less than 30
minutes
PR: Avoids trips to the
doctor/lab
FEATURE: Portable
equipment
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and processing
time
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities

26. Preventative care
patients
Chronic disease patients
Nutritionists
Doctors
Dialysis centers and
clinics
General physicians
w/private practices
Cardiologists
Endocrinologists
Internet sales
Pharmacies
Retail outlets
Doctor’s offices
Direct sales
Device sales
Sales of companion technologies (e.g. apps, trackers)
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK3
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Health stores/ pharmacies
Hospitals
Life insurance companies
Chronic disease patient
support groups
Intellectual property
Device design
Manufacturing facilities
People
FEATURE: Blood work
results in less than 30
minutes
PR: Avoids trips to the
doctor/lab
FEATURE: Portable
equipment
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and processing
time
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities

27. General physicians
w/private practices
Cardiologists
Endocrinologists
Pediatricians
Allergists and
immunologists
Internet sales
Direct sales
Distributor network
Medical network
Lab network
Device sales
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK4
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Hospitals
Life insurance companies
Intellectual property
Device design
Manufacturing facilities
People
FEATURE: Blood work
results in less than 30
minutes
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and processing
time
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities

28. General physicians
w/private practices
Cardiologists
Endocrinologists
Pediatricians
Phlebotomists at blood
testing labs
OPD Doctors in Tier-2
Indian cities and lower
Internet sales
Direct sales
Distributor network
Medical network
Lab network
Device sales
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
WEEK5
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Hospitals
Intellectual property
Device design
Manufacturing facilities
People
FEATURE: Blood work
results in less than 30
minutes
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and processing
time
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value
added at-office health
monitoring solution
Device design and
capabilities

29. OPD Doctors in Tier-2
Indian cities and lower
Internet sales
Direct sales
Distributor network
Medical network
Lab network
Device sales
Service/support
Supplementary sales (e.g. test strips)
Partnerships with health device companies and
stakeholders
Spare parts
WEEK6
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Hospitals
Regional distributor
networks
Intellectual property
Device design
Manufacturing facilities
People
FEATURE: Blood work
results in less than 30
minutes
FEATURE: Conduct blood
test in office/clinic
GAIN: Early intervention
possible
GAIN: Reduces
transportation and processing
time
GAIN: Save lives
GAIN: Reduce costs
Sales
Marketing
R&D
Manufacturing
Distribution
Brand identity
Convenience and value added at-office
health monitoring solution
Device design and capabilities
GET & GROW: Word of mouth
GROW: IMA (India Medical Association)
endorsement
GET: Pilot programs with regionally
influential doctors
GET: Local conferences
KEEP: Customer Service
KEEP AND GROW: Introducing additional
markers & tests

30. OPD Doctors in Tier-2
Indian cities and lower
Distributor network
Medical network
Device sales
Supplementary sales (e.g. test strips)
Spare parts
WEEK7
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Insurance providers
Hospitals
Regional distributor
networks
Manufacturers
Lawyers (Int’l law, IP)
Intellectual property
Device design
Manufacturing facilities
People - Engineers
People - Marketing
Funding
Office Space - India
FEATURE: Blood work
results in less than 30
minutes
GAIN: Save lives
GAIN: Reduce costs
Sales
Marketing
R&D
Manufacturing
Distribution
Early stage promotion at conferences
& medical journals
Design and iteration of device &
diagnostic technology
Contract with manufacturers
Build relationships with distributors
Obtaining patents
Obtaining regulatory approval
GET & GROW: Word of mouth
GROW: IMA (India Medical
Association) endorsement
GET: Pilot programs with
regionally influential doctors
GET: Local conferences
KEEP: Customer Service
KEEP AND GROW: Introducing
additional markers & tests

31. OPD Doctors in Tier-2
Indian cities and lower
Distributor network
Medical network
Device sales
Supplementary sales (e.g. test strips)
Spare parts
WEEK8
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Regional distributor
networks
Manufacturers
Lawyers (Int’l law, IP)
Global health NGOs
Local financiers
Government
Intellectual property
People - Engineers
People - Marketing
Funding
Office Space - India
FEATURE: Blood work
results in less than 30
minutes
GAIN: Save lives
GAIN: Reduce costs
Early stage promotion at
conferences & medical journals
Design and iteration of device &
diagnostic technology
Contract with manufacturers
Build relationships with
distributors
Obtaining patents
Obtaining regulatory approval
GET & GROW: Word of mouth
GROW: IMA (India Medical
Association) endorsement
GET: Pilot programs with
regionally influential doctors
GET: Local conferences
KEEP: Customer Service
KEEP AND GROW: Introducing
additional markers & tests

32. OPD Doctors in Tier-2
Indian cities and lower
Distributor network
Medical network
Device sales
Supplementary sales (e.g. test strips)
Spare parts
Finalcanvas
Manufacturing
Marketing
Research and development
Distribution
Healthcare providers
Regional distributor
networks
Manufacturers
Lawyers (Int’l law, IP)
Global health NGOs
Local financiers
Government
Intellectual property
People - Engineers
People - Marketing
Funding
Office Space - India
FEATURE: Blood work
results in less than 30
minutes
GAIN: Save lives
GAIN: Reduce costs
Early stage promotion at
conferences & medical journals
Design and iteration of device &
diagnostic technology
Contract with manufacturers
Build relationships with
distributors
Obtaining patents
Obtaining regulatory approval
GET & GROW: Word of mouth
GROW: IMA (India Medical
Association) endorsement
GET: Pilot programs with
regionally influential doctors
GET: Local conferences
KEEP: Customer Service
KEEP AND GROW: Introducing
additional markers & tests