Business Plan Presentation Mobius Microsystems Inc. 3430 E. Jefferson Ave. #140 Detroit, MI 48207...

Business Plan Presentation

Mobius Microsystems Inc.

3430 E. Jefferson Ave. #140

Detroit, MI 48207

614.571.5299

www.mobius-microsystems.com

[email protected]

MBA Jungle Business Plan Competition

New York, New York

April 25th, 2003

2 2

Overview

• Pain and Solution

• Technology and Product

• Management Team

• Industry and Market

• Competition

• Marketing and Sales Strategy

• FinancialsFINANCIALSMANAGEMENT MARKET COMPETITION STRATEGYTECHNOLOGYPAIN&SOLUTION

3 3

The Problem: Disparate Systems

Electronic products currently require assembly of many discrete components

Printed Circuit Board

Digital Microprocessor

Memory

Mixed-SignalCircuits

Mechanical Sensor

Crystal Oscillator

AnalogCircuits

FINANCIALSMANAGEMENT MARKET COMPETITION STRATEGYTECHNOLOGYPAIN&SOLUTION

4 4

The Pain

These systems are:• Expensive: package costs• Large: package sizes• Power-hungry: signal across board requires 10x power• Limited in functionality: size and power constraints


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PCB

The Solution: Mobius Microsystems

Microsystems are intelligent miniaturized systems comprising sensing, processing, and actuating functions integrated onto a single chip. They are smaller, cheaper, lower power, simpler, more reliable, and more functional.

Printed Circuit Board

Digital Microprocessor

Memory

Mixed-SignalCircuits

Mechanical Sensor

Crystal Oscillator

AnalogCircuits


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The Solution: Mobius Microsystems

The vision for our products:Enable electronic system developers to produce less expensive, smaller, more functional, and more reliable products that consume less power.

The vision for our customers:Reap orders of magnitude improvements in the products they build and lead their industries in end-product performance, functionality, and value.


7 7

The Clock is as Fundamental as Power

Every single synchronous semiconductor produced requires a clock to operate

Clock frequency signal drives processor inside

fclk

Pocket PC


8 8

State of the Art vs. Mobius “DMC”Mobius“Digital Monolithic Clock”Existing Clock Solutions• Crystal-based• Large off-chip component• Fixed frequency• Power-hungry• Expensive

Mobius DMC• MEMS-based• Small on-chip• Tunable frequency• Low-power• Inexpensive

vs.

CrystalElectronics

4 MobiusDMCs

State of the Art versus


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The Mobius DMC in Action…

Example: iPAQ PDA Using Current Technology Using Mobius’ Technology

Clock Hardware Costs ~$1.00 ~$0.45

Clock Space Requirements 323mm2 on circuit board 0.09mm2 on semiconductor

Clock Power Requirements 32mW 4mW

Tuning Range Fixed (w/o add. electronics) 62.5MHz to 1GHz

What Mobius can do for Compaq• Reduce total cost• Increase functionality• Increase battery life• Decrease time to market• Reduce component inventory

COMPAQ Pocket PC


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PackagedSemiconductor

SemiconductorDesign Blueprint

Semiconductor Intellectual Property

• Manufacturing handled by customer

• Low COGS

• Like a software company

• Successful business model: ARM, MIPS, Parthus

Mobius’ DMC IP


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Why IP is Used

What Mobius IP offers chip designers• Functions outside their core competency• Accelerated time to market• More profit per chip

Samsung is building a cell phone• Market opportunity and window identified• System specification defined by engineering management• Chip specification defined and handed off


Chip designers need to meet deadline and budgets• Develop many parts of chip in-house (if capable)• Buy 3rd party IP (Mobius) for some functions• Integrate IP with their design and send to fabrication facility for manufacturing

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Management Team

Michael S. McCorquodale, CEO and CTO• Invented technology while electrical engineering Doctoral Fellow, U of Michigan• Commercial semiconductor experience with Hughes Space and Communications• Vision of how microsystems technology and Mobius will change the world

Jeffrey G. Wilkins, COO• MBA 2003, U of Michigan• Business development and start-up experience, Huntington Bank and Velocys Inc• The commitment and experience to turn Mobius’ vision into reality

James E. Vincke, CFO• M.S.E., MBA, U of Michigan• 23 years in start-up, executive management, Mechanical Dynamics Inc• Fund raising, acquisitions, international expansion, rapid growth• The financial acumen and perspective to manage growth from start-up to IPO


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Industry and Market Overview

• Semiconductor industry: $141B (2002)– CAGR: 8% – Cyclical, mature

• System-on-chip market: $32B (2002)


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System-on-Chip Explained

SoC’s combine a processing core, memory, and

logic on a single chip

SoC

SoC with microprocessor, memory, and communications

Clock

Sensor

Analog FrontEnd

OtherSubsystems

PCB

Microprocessor Core

Communications

Clock

Sensor

Analog FrontEnd

Memory

OtherSubsystems

Printed Circuit Board (PCB)


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Why SoC?

SoC’s Market Dynamics and Needs

• Broad range of end products and markets

• Medium to high volume

• Fast design cycles to meet product windows

• Every SoC uses some IP

• Comfort with IP and IP companies

• Fabrication facilities (TSMC, IBM)


16 16

Industry and Market Overview

• Semiconductor industry: $141B (2002)– CAGR: 8% – Cyclical, mature

• SoC Market: $32B (2002)– Growing 25% to 30%

– Players: Texas Instruments, Motorola, Intel, Sony


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First Addressable Market

• Clock generation for SoC– SoC: $32 Billion or (@ $20/unit) 1.6 Billion units/yr– Each unit now requires at least $1 for clock generation

– Mobius’ DMC average selling price of $0.45/unit• 1.6 Billion units x $0.45 per DMC =

First addressable market size:

$720 Million In Revenue


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0 5 10 15 20 25

Billions of Dollars

Transportation

LAN/WAN

Wireless Infrastructure

DVD Video Player

Personal Computers

Digital Set-Top Box/DTV

Disk Drives

Video Games

Modem/Remote Access

Digital Cellular Handsets

2004

2000

SoC End Markets


Source: Gartner DataquestSource: Gartner Dataquest

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Competition

Competitive landscape: 3 kinds of competitors• Discrete Crystal Clock Generation

– Epson

• Integrated Clock Manufacturers – Motorola

• Hybrid Clock Manufacturers – Epson + Texas Instruments

Currently there is no solution on the market for clock generation that is able to meet all of the needs of the market.


20 20

Mobius’ Competitive Advantage

• Patent-protected intellectual property portfolio

• Design cycle lead

• Microsystems development trade secrets

• Industrial membership and “first-look” rights from “WIMS”: Microsystems Research Center

• “Product Hopping” strategy


21 21

Marketing and Sales Strategy

Goal: De-facto standard in clock generation for SoC

Step 1: Create awareness and “buzz”– Existing relationships– Conferences, tradeshows, competitions

Step 2: Direct sales effort– Founders and technical sales representative– Specific existing relationships: Motorola, National

Semiconductor, TSMC, Cadence, IBM


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Marketing and Sales Tactics

Compaq Pocket PC End CustomerIntel Packaged SoC

Influence

To Compaq:Mobius = Less expensive, smaller, and more functional products

To Intel:Mobius = More revenue per chip


IP PartnershipEffort

Direct Sales EffortFor Design Win

Packaged SoCWith Mobius DMC

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Electronic System Design Cycle

Influence


Concept

Design

Evaluation

Prototype

Production • No re-design cost

• No customer risk: • System functional independent of Mobius IP at prototype phase

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Initial Target Customer Profile

• SoC cost ≤ $10-20+ Volume per design: ~ 1M units/year+ Total electronic system COGS ≤ $50+ 2 or more crystals per system= Cell phones, DVDs, PDAs, microcontrollers, disk

drives, WLAN


26 26

Existing Target Customer Relationships

• Cell phones– Motorola, Samsung

• PDAs– ARM, Intel

• Microcontrollers– National Semiconductor, IBM

• WLAN– Infineon (WLAN security chipsets)


27 27

Business System

Revenue Model• Design License

– Tiered $100,000 to $300,000 (low to high volume)• Royalty

– Tiered $0.50 to $0.15 per unit (low to high volume)• Annual Support & Maintenance Contract

– 15% of initial license annually• Services

– Design services for customers


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(500)

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500

1,000

1,500

2,000

2,500

3,000

2003 2004 2005 2006 2007

Dol

lars

(00

0's)

(5,000)

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5,000

10,000

15,000

20,000

25,000

Dol

lars

(00

0's)

Net Income

Cash Flow from Operations

Revenue

Financials

Revenue, Net Income, and Cash Flow from Operations


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Investment Opportunities

Self-Fund Operations Until First Sale Is Made$110K Founders Investment (Q3 2003)

After First Sale (Q3 2003):Seeking $500K 1st Round InvestmentUses: Hire Marketing and Sales Director

Hire Additional Engineering ExpertiseEnable Additional Manufacturing ProcessesEstablish IP Partnerships

Milestone: 5 Reference Customer Relationships


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Investment Opportunities

$500K 2nd Round Investment (Q1 2004)

Uses: Hire Sales Person in Munich, Germany

Continue to Develop Engineering Team

Milestone: 3 International Reference Customers


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Why Invest?

• $720 million first addressable market

• Truly compelling, protected IP

• Committed and experienced management team

• Small investment required for high return potential

Business Plan Presentation Mobius Microsystems Inc. 3430 E. Jefferson Ave. #140 Detroit, MI 48207...

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Transcript of Business Plan Presentation Mobius Microsystems Inc. 3430 E. Jefferson Ave. #140 Detroit, MI 48207...