Total Customers

Contacted: 86 1RIT NSF ICORPS Dec 14 2011

Initial Business Concept

RIT NSF ICORPS Dec 14 2011 2

Global lighting industry - $100B

LED lighting - $6B, CAGR>40%

Enhanced cooling allows• Higher lumen output• Higher light quality• Better reliability

LED Replacement Lamps

~500 million sockets * $15/lamp =

~$750M

Entrepreneurial co-Lead

Kirthana KripashMBA (Candidate), RIT

Entrepreneurial co-Lead

Ankit KalaniMS Engineering (Candidate) RIT

Principal Investigator

Dr. Satish KandlikarGleason Professor

Mech. Engg., RIT

Mentor

Dr. Suresh SunderrajanPresident, NNCrystal Corp.

Kandlikar and RIT Team – NSF I-Corps

Kandlikar and RIT Team – NSF I-Corps

Customers Key PartnersChannels

Kandlikar and RIT Team – NSF I-Corps

“We are willing to wait 5 to 7 years

for the price to fall before we adopt

this technology on a wide scale. ”

“If you bring us a modular thermal system that provides better cooling at lower cost, we would definitely want to explore this technology.

Arka Lights•LED array,

Lamp components

Luminaire Manufacturers•LED

luminaires and Fixtures

Distributor

Contractor

Project/Owner

Other Components Arka provides

replacement lamps

Customers

: The customer is unwilling to buy the product at current prices

: The final consumer is highly dependent on Gatekeepers (suppliers) for guidance in product choice

Distribution and Supply

• We lack in Lamp/Luminaire production

• OEMs were interested in incorporating our enhanced thermal module in their product

We had to pivot! Kandlikar and RIT Team – NSF I-Corps

Arka Lights

OEMs

•LED luminaires

and Fixtures

Distributor

Contractor

Project/Owner•Institutions, Home

Owners, Distributors

Other Components

Arka provides Thermal Modules

Customers Key PartnersEnvironment

We would like to enter into a partnership to develop heat pipe based products.

Heat Exchanger

Manufacturer

• Our competencies lay primarily in the heat pipe industry

• The most encouragement came from a heat exchanger manufacturer who is looking to expand his product line.

• Our Business Model iterated; we will now focus on heat pipe based solutions in diverse applications.

Kandlikar and RIT Team – NSF I-Corps

• Arka prototype runs 15 C cooler, allowing more LED placement per lamp

• Prototype delivers 100 % more lumens for the same form factor

• ~30% lower cost/unit for similar lumen output

• The weight of Par38 is 65 percent lower, and the manufacturing cost is $4.50 (current module costs about $2.20)

Commercial PAR 38 Arka Prototype

52 °C (max)37 °C (max)

12RIT NSF ICORPS Dec 14 2011

ArkaLights

Division?

Partnership?

Market

Market

…

Heat Exchanger Manufacturer

Design Sources and

Technical Experts

• Negotiations with Heat Exchanger Manufacturer (HEM) ongoing.

• Arka provides::IP, heat transfer expertise, design

• HEM provides: Manufacturing, distribution and sales channels

• Arka will be proactive in exploring other market opportunities.

– Additional revenue/cost models will be explored using the methodology of this class

Kandlikar and RIT Team – NSF I-Corps

• The Process:

– Iterations occur organically when you respond tomarket and consumer needs.

– Explore unconventional opportunities, be OPEN, andbe aware that potential partners may be sitting nextto you in a plane. I probably met my futureprototyping partner on my way to Stanford.

• The Market:

– Understand your customers, channels and partners

– It’s about money – customer’s, partner’s and yours –respect that without forgetting your core values.

Kandlikar and RIT Team – NSF I-Corps

• Most Valuable Game Changers – Your Students!– Recognize the innovative potential of your student– Guide them to pursue commercialization: from their mom’s

gardening business to successful technological products– Motivate your students – Be ENABLERS. You can shine on your

own, but you can “nucleate” many more stars.

• Most Valuable Assets – Your Ideas and Your Drive

– Dream of Possibilities

– And then make them HAPPEN – you will know how by simplyGETTING STARTED

Kandlikar and RIT Team – NSF I-Corps

Joint Venture

Firm

– Show innovativeness

– Integration of Student education on commercialization

– Hope to get NSF implementation grant for RIT curriculum

– Hope to be NSF face on commercialization initiative

– Create a start-up and be successful (really start a heat pipe company)

• What I hoped to learn.

– To be involved in a grant based project from start to finish

– Understanding the needs and requirement of product development ( from research lab to an actual product)

• What I learnt.

– What entrepreneurship really means

– How to talk and listen to ‘actual’ customers

– Understanding requirements for a start-up not just product development

– Presentation improvement skills

– Planning and working to meet deadlines

– Being flexible and responsive to feedback

• What I hoped to learn:

– How to understand and facilitate the technology commercialization process

– How to work with technical teams

– Student and University based technology commercialization and resources

– If academic training in entrepreneurship translates in the real world.

• What I learnt:

– Working with a idea at the nascent stage while incorporating customer feedback allows room for easier growth and modification

– Concepts and Theories do not convert easily to product features. Prototyping from paper to product takes time, effort and an ability to improvise.

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