day 5 successful entrepreneurship for microsystems entrepreneurship for microsystems rakesh kumar,...
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1 ©2014 TCX Inc
Successful Entrepreneurship
for Microsystems
Rakesh Kumar, Ph.D., Life Fellow IEEE
May 5, 2015
858.945.3758
Teaching assistant – Sneha Venkatesh Yelimeli (“Sneha VY”) [email protected]
Tutor – Ashwin Raman [email protected]
Course presented at UCSD CSE 190, Spring Quarter 2015
Day 5-3
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Your Company
Customer Customer Customer
Problem / Need
Problem / Need
Problem / Need
Towards a Successful Startup …“Plan A” – an iterative process
Top Line Bottom Line
Investors, $
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Presentation Key Elements
What is the Market Size?
How will you Market it? Channels?
What is the Business Model?
How will you make Revenue? Profit?
MA
RK
ET
B
IZ M
OD
EL
P
RO
DU
CT
What is your offering – a “Tag” line? ...basis for 60second “elevator pitch”
What is the problem you are solving?
What is your solution?
How you do it?
CU
ST
OM
ER
D
IFF
ER
EN
TIA
TIO
N
Who will buy it? …Market Research, GET OUT and TALK to Customers
How much will they pay?
Who is your competition?
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“HUG”
A mobile app that
makes efficient your social media experience
Or adds efficiency to your social media experience
Or organizes and adds efficiency to your social media experience
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Current situation
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The Hug way
Selected Friends News
Interests ..
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Hug – how we do it
A proprietary AI algorithm that is an “Aggregator”
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Hug – Who is the Competition?
What is your UVP / Differentiation?
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Target Market
Initial Customer feedback
x/20 potential customers say they are very interested to Hug it !
College students and young adults Alpha – selected 10 students at UCSD, and 10 ‘friends of friends
Beta – sample of 100 UCSD students, and 100 other young adults
iStore and Google Play store
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Market Analysis
Size of market in terms of numbers.
E.g., the number of 20-year olds, if that's your target demographic.
Size of market in terms of dollar value.
E.g., based on sales of similar products or other metrics.
How much of the market will you capture?
Competition: who are the other players in the field?
Other relevant details.
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Business Considerations
Revenue from iStore/PlayStore
Revenue from Google Adsense ads
<20 employees
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Income Statement
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Exit Stratgey
License
Get acquired
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Business Model Canvas
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Team
CEO
CTO
CMO
COO
Customer Rep
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“DigiBag”
A “Smart” bag that synchs electronic devices,
and sets an alert for missing devices
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Current situation – the Problem
We all carry a plethora of electronic devices in our backpacks,
briefcases, purses
How often have you missed having the right power charger, head-set,…?
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DigiBag’s solution!
Laptop Charger
iPad Charger
Phone Charger Head-set
…
DigiBag Smart Electronics
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DigiBag – how we do it
Smart Electronics unit built from off-the-shelf component initially allows devices to be connected via NFC
Follow on devices will be built using FPGA’s, and a custom designed Integrated Circuit
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Product Roadmap
Phase 1
Smart Electronics built using off-the-shelf components
Bags procured from overseas
Final assembly in San Diego
Marketed thru online sales – Amazon, eBay etc.
Phase 2
Smart Electronics built using an FPGA
Bags procured from overseas
Final assembly in San Diego
Marketed thru online sales – Amazon, eBay etc.
Will seek to license to name brand backpack and briefcase manufacturers – Samsonite, Swiss,..
Phase 3
Smart Electronics built using an FPGA
Bags procured from overseas
Final assembly in San Diego
Marketed thru online sales – Amazon, eBay etc.
Will seek to license to name brand backpack and briefcase manufacturers – Samsonite, Swiss,..
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Target Market
Initial Customer feedback
x/20 potential customers say they are very interested in DigiBag
College students and young professional Alpha – selected 10 students at UCSD, and 10 ‘friends of friends
Beta – sample of 100 UCSD students, and 100 other young adults
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Market Analysis
Size of market in terms of numbers.
E.g., the number of 20-year olds, if that's your target demographic.
Size of market in terms of dollar value.
E.g., based on sales of similar products or other metrics.
How much of the market will you capture?
Competition: who are the other players in the field?
Other relevant details.
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Income Statement
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Exit Stratgey
License
Get acquired
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Business Model Canvas
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Team
CEO
CTO
CMO
COO
Customer Rep
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In-class Quiz 6-1
1. Each individual to please list the 5 essential parts of a company presentation
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Success elements – product positioning
EXISTING
Standard, market, customer base
NEW
Standard, market, customer base
Super-Integration
Problem solutions
Evolutionary enhancements
e.g. Cost reduction
Emerging standard
New features/capabilities
New interfaces
“Revolutionary” enhancements
Will Impact Schedule, Technology Selection, Design Methodology,….
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Conceptual timeline
Key: early engagement with customer to evaluate and validate the new chip.
J. Fiebiger (Board Directors Actel, Mentor, QLogic):
“The fabless company must identify the first potential customer early. It is important to have customer’s input in shaping the product requirements… Investors and suppliers will get a favorable story when they perform due diligence with the customer about the viability of the product and potential volume.”
Chip Development Market
Accept Ramp Hi Volume
Existing markets:
Chip Development 1st Customer Slow Ramp Hi Volume
Alliance / New Standard Accept
New markets:
~5 quarters
For existing markets, getting the product to market and increasing market share is important!
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IC Design
Global Planning
IC Production
Lifecycle of a Fabless IC development – the 4 phases
IC Prototyping
Series A
Series B
30 – 50% of TT$
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IC Design
Global Planning
IC Production
Lifecycle of a Fabless IC development – activity highlites
“System” Architecture / Design / Simulation / Verification
Reference Boards
Customer Evaluation “Proof of Concept”
Customer Samples
Reference Design
FPGA Implementation
Customer Evaluation Design Acceptance
IC Prototyping
High Level Design
Floor Planning
Chip Design
RTL NL
Physical Des
NL GDSII F A T
Prod. Ramp
IC Qualification
Hi volume Debug
Analog IP Design
Series A
Series B
30 – 50% of TT$
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Typical ASIC Development Cycle
ASIC DESIGN Proto Prod Ramp Hi Volume
Year 0 Year 1 Year 2
Software α
Software β
Software Prod.
Initial Silicon
Initial Silicon Ramp
Initial Product Ramp
Volume Production
Start Design Tapeout ESProd
HW/SW LaunchQS
FPGA
Ref Board
SW
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a. At the System company:
Concept HW/SW Dev Demo Qual Trial Mkt Build Hi Volume
Year 0 Year 1 Year 2
b. At the Fabless IC company:
ASIC DESIGN Proto Prod Ramp Hi Volume
Year 0 Year 1 Year 2
Software α
Software β
Software Prod.
Initial Silicon
Initial Silicon Ramp
Initial Product Ramp
Volume Production
Launch
Start Product
Design
Volume Orders
Start Design Tapeout ESProd
HW/SW LaunchQS
FPGA
Ref Board
SW
System vs. IC Development Cycle
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Success elements – market positioning
Customer, customer’s customer (value chain)
Competition – the “big boys”?
Market segment, TAM/SAM
Features –existing or new standard? Customer base?
a. Chip Development Market Accept Ramp Hi Volume
b. Chip Development 1st Customer Slow Ramp Hi Volume
Alliance / New Standard Accept
Understand customer expectations!
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Success elements – funding
Business plan
A good executive summary is a must
Strength of the idea, the need, the market
Schedule
Revenue plan
Select the right VC, matched to your segment and need
Team’s credibility
Presentation
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Success elements – technology selection
Avoid using the newest technology (process, design, packaging, …)
If that is the only way you can meet the specifications…..
Use the newest technology you can afford, and the oldest technology that lets you
meet the specifications
Complexity
Performance
Development Cost
Risk
Leading EdgeMainstreamMature
% D
esig
ns
Process Node Maturity
Mature Mainstream Leading Edge
500 350 250 180 130 90 65 45 nm
Complexity
Performance
Development Cost
Risk
Complexity
Performance
Development Cost
Risk
Leading EdgeMainstreamMature
% D
esig
ns
Leading EdgeMainstreamMature
% D
esig
ns
Process Node Maturity
Mature Mainstream Leading Edge
500 350 250 180 130 90 65 45 nm
Process Node Maturity
Mature Mainstream Leading Edge
500 350 250 180 130 90 65 45 nm
Complexity
Performance
Development Cost
Risk
0
5
10
15
20
25
30
35
40
<= 90 130 180/150 250 350 >= 500
Process Node, nm Source: FSA
% Revenue
2004
2005
2006
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Success elements – supply chain selection
Technical due diligence
Business due diligence
Will they accept your business?
Confidentiality documents
Quotes
Firm up the commitments
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Success elements – cost management
Unit cost optimization
Development cost optimization
0.01
0.1
1
0.001 0.01 0.1 1 10 100 1000
M Gates/Chip
ce
nts
/ K
Ga
tes
180 nm
130 nm
90 nm
65 nm
45 nm
0
5
10
15
20
25
30
35
40
45
50
180 nm 130 nm 90 nm 65 nm 45 nm
NR
E, $
M
TSMC Info
nV/Alt/SIA/IBS
Des/Ver
SW
TPE
Masks Si
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Success elements – other considerations
Sourcing methodology – FPGA, ASIC, COT,..
Operations best practices – legal, financial, production control, customer support,…
Quality and reliability – Quality Manual, build in quality from the start,…
Schedule development and management
Program management
Internal development
Management of the distributed supply chain
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Exit Strategies
Stay private
scale up company at least for some years, especially if profitable
IPO (Initial Public Offering) - go public
M&A (Merger and Acquisition) – merge with or get acquired by a larger company