Holographic Projector For Smart Cities

Chestnut Cohort ‘Team 5’

Dennis Abraham, Oday Abu Shehab, Mojdeh Ghanbari Chinedu Kama, Qin Xie

STEEPLE

Political: More transparency

Environment: Less CO2 Emissions, safer, energy saving, population increase

Social: Info sharing, more compatible, education, free usage

Technological: Innovative, advanced, interactive

Legal: Lax privacy policies

Economical: Cheaper, easy application

Choice Carousel

Challenges:

*Investments from VC for LBO to profitably play in Beijing

Objectives: *Cover 15% of the city subways, public schools in the first year.

Opportunities: *Blue Ocean

*Build strong partnerships with the GOV

*Build a strong brand image

Advantages: *Low cost

*Energy-saving  

*High quality

Activities: *Test the technology Beijing state to

*Use VC capital for implementation

*Win-win situation cause it’s a 2 sided market

The Product

•  LBO world's leading projection systems

•  Magnifies and focuses images

•  Large image at long distance •  Highly tolerant to pixel failure

•  Patented

Application

Corporations

Subways Airports Public Universities

Museums

Market Funnel Total market of laser projectors

Potential market

Accessible market

Realistic share of accessible market

•  Approx. 100 smart cities worldwide

by 2023 •  Asia Pacific and

Europe 25% •  Estimated

industry revenue $10 B by 2023

•  Estimated industry growth of 16% in 2023

•  Estimated

investments from smart cities:

•  Reach $63 B by 2023

•  Approx. $ 630 M per city

•  By 2023 cover 10% of smart cities worldwide

•  10% of each participative smart city’s investment

2 Sided Market

Advertisers The Public

Customer Pays for Ads $$$

Consumer Free Usage

Platform Information/Ads

Opportunities External:

�  Blue Ocean: Collaboration with GOVs and public sectors to make smart cities more efficient.

�  Partnerships: Venture Capitalists

�  Deals: Advertisers

Internal: �  Organizational decentralization �  Trend Spotting:

�  Data gathering through consumer behavior �  Data will be analyzed and sold

Value Chain

• Algorithms/  Holographic  (HUDs)  

• Reduced  laser  speckle  

• Have  avg  pixel  intensi>es  of      10%  to  25%  respec>vely  

• Features  

• Adver>sing    

• Integra>on  Strategy    

• Strategic  Partnership  

• Marke>ng  &  Logis>cs  

• Applica>ons      • Devices  

• Offer  second  line  support  

Research  &  Development    

 Enabling  Technology    

Connec9vity  &  Collabora9on       User  Interface     Service    

Porter’s 5 Forces: Market attractiveness is HIGH

Rivalry

Low

Threat of new

entrants Moderate

Bargaining power of buyers

High

Threat of Substitutes

High

Bargaining power of suppliers

Low

Diversified customer base as sales are expected to grow by 4.4% over the next 5 years.

Product variation due to customization

Venture Capital

�  Already had 4 series of funding for 25% ownership �  $ 57.5 m

�  5th Funding:

�  5% ownership à $ 10 m

�  Enterprise Value at $ 225 m

�  In total 30% will be owned by VC

�  Benefits:

�  $810,900 profit from 3rd year

Activities: Proposition �  Test the technology in Beijing State

�  They get 25% of profits

�  1st year test phase:

�  First 8 months:

�  Install devices in 33 subway stations

�  $45,000 per display = $5.94 m

�  Final 4 months:

�  Install in 10 Universities = $2.25 m

�  Installation costs:

�  Approximately $ 3000

Mayor of Beijing Mr. Wang Anshun

�  Safety for cars �  Smartphones

Plan B & Product Line Extension

Thank You! Q&A?

‘Be Part of Change’ ‘Unique Investment Opportunity’

‘Win-Win Situation’ ‘Invest Now’

Appendix 1: Benefits � 2nd year breakeven � 3rd year start making profit: Subway;

33 x 4 x $132,000 = $17,424,000 � Universities; 10 x 5 x $84,000 =

$4,200,000

Appendix 2: SWOT Relative Strengths

•  Robust design, High-resolution,

wide throw angle, focus-free Holographic laser

•  Strategic Partnership

•  Integration Strategy

•  Patent

•  High R&D investment

Relative Weaknesses

•  Scarce Financial Resources

•  Marketing: Reach, Distribution, & Awareness

Opportunities

•  Economies of scale

•  Systems integration

•  Market and Business Development

Threats

•  Accelerated expectations vs.

capacity