Siliconic Home, Inc. an IoT company Headquarters: San Jose, CA February 2016
Apr 13, 2017
Siliconic Home, Inc. an IoT company
Headquarters: San Jose, CAFebruary 2016
Siliconic Home, Inc. believes that Future smart home IoT products will require the use of advanced speech recognition software and hardware.
We will be introducing the most advanced smart IoT products targeted for young children as well as other household members.
Our Vision
Confidential Siliconic Home
Our first product, SmartCreatureTM (SC), is a smart, connected voice-user interface device for children. The SC platform connects to music, stories, educational content, Google Search, IoT devices and other communication devices.
Our Platform and First Product
Confidential Siliconic Home
Who we areTim R. Connelly, CEO/CFO: 25+ years of tech management. Co-founder, Filac and InterFile. CEO, EasyWare Software. CFO, World Procurement. MIT, BSEE; Stanford, MBA with honors.
Maura Sparks, Vice President: 15+ years of tech experience. Co-founder Pop Rocket & Kissappgames. Paracomp (acquired by Macromedia/Adobe). Branding, product strategy, product marketing, events and PR. SF State University & Dominican University.
Onkar Sangha, CTO: 25+ years experience CTO/Architect. Mobility Fusion: Acquired by Philips Semiconductor. VP System Engineering, Infiniti Networks; VP Software Engineering, Ishoni Networks. Partner, ServoBridge. University of British Columbia, BSEE & BS Physics.
Jeff Adams, Advisor/ Chief Science Officer (Acting): 20+ years in speech & language. Led speech scientists for Amazon Echo, Yap, Nuance. Partner at Cobalt Speech. Brigham Young University, BS summa cum laude, University of California at Berkeley, MA.
Alan Toyomura, VP of Business Development: Senior Business Development Manager at Sprint. QOS Engineer at Ford Motor Company. Purdue University, BS in Industrial Management/Physics; University of Michigan, MBA.
SmartCreature Mock-up
Model SC100 (Listening angle: 90-180 Degrees)
Height: 10 inches
Battery powered
Wi-Fi Connected“Always On”
Confidential Siliconic Home
The SmartCreature has voice-user interface (VUI) allowing your child to have their very own smart room; brings your favorite internet features into your home using just your voice
Fits Well in A Child’s Bedroom
Confidential Siliconic Home
Connect to your other IoT devices (Wi-Fi speakers); play your favorite music; all hands-free and start
dancing!
Info searches for definitions, meanings and facts; note taking, diary and other voice-to-text uses
Wake up with a customizable alarm;control your room, turn on the lights
Benefits every child - morning until bedtime
Foreign language audio learning; stream audio books; ideal study helper
SmartCreature Competitive Advantages• Juvenile ASR for children as young as 5
• “Far Field” functionality - up to 15 ft (5 m) range
• Unique H/W and S/W combination for noise reduction (patentable spatial filtering technology and digital signal processing)
• Initial platform releases will utilize device-side ASR (reduces Cloud processing costs over product life; customers are not charged for ASR)
• Portable/battery powered
• Able to have some local function without Internet connectivity
• Open-platform to allow selected 3rd party service and content providers to participate in revenue sharing programs
Confidential Siliconic Home
Front-end Servers & Master S/W Apps
Telephony Servers and
S/W
SH Managed Cloud Servers and Cloud S/W
SH Proprietary ASR Engine and S/W
Google Voice Search
Servers and S/W
3rd PartyService
ProvidersWeb Servers
and S/W
Wi-Fi Router
Other IoTDevices
Internet Cloud
SmartCreature (SC)
Parental control
dashboard
Siliconic Home Platform
Typical Customer Home
Confidential Siliconic Home
Intellectual Property in orange:1) ASR/NLU software 2) Noise Reduction far-field3) Child-centric interactivity M2C4) Cloud ASR operations in background
Competitive Product MatrixConnectivity/Cloud ‘Intelligence’
Standalone/Unconnected
Entertainment
Education and
PersonalAssistant
Blue Frog
Speak ‘n Spell Type
Toys
Traditional Talking
Toys
Hello Barbi
eDino
SC200
SC100
Confidential Siliconic Home
SC Model
Sales Channel
End-userCustomers
SC100Genera
l
OEMSCXXX models
Retailers: Brightstar, Best Buy, electronics, audio and specialty stores, Target, Toys ‘R Us
Direct Sales(eCommerce)
31 million US children* in 5-13 year age rangewith home Internet connectivity (all incomelevels)
OEM Partners/Customers: Major toy, consumer electronic, educational and entertainment companies
Existing and new OEMcustomers
SmartCreature Sales Strategy by Channel
* 21 million householdsConfidential Siliconic Home
US Market● US target- children 5-13 years old
in Wi-Fi households: 31 million (2015)*
● Adoption rate range* for disruptive or major technologies: 5.0% to 7.0% per year
● Annual sales potential of SC100 or SC200 type products: 1.6 to 2.2 million units or $240 to $330 million/year @ $150 ASP, 1 unit/child
*16.4 million children were in households interested in buying a SC100 type ‘system’ within 2 years from product launch
US Market and SH Sales Forecast
1. The Market/Industry Sales and Company sales do not include services revenue
2. SC200 is 2nd generation SmartCreature with all of SC100’s features and more
SC100SC200
Confidential Siliconic Home
Premium Content and ServicesRecurring Revenue Categories
FY2017 FY2018 FY2019$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
$0.10
$4.00
$31.70
Annu
al P
rem
ium
Con
tent
/ Se
rvice
s (Mi
l.)• Native language educational content
• Foreign language educational content
• Entertainment: music, stories & books
• Audio games & jokes
• VoIP (Telephony)
• Other premium content
Premium Content & Services
Confidential Siliconic Home
Financials- Pro Forma Income Statement
FY2016 FY2017 FY2018 FY2019
SC100 Units 5,144 33,750 264,000 504,000SC200 Units 500 60,000 150,000Revenue, Product $742 $5,940 $55,902 $153,839Revenue, Services $109 $4,035 $31.673Revenue, Total $742 $6,049 $59,936 $185,513Gross Profit $279 $2,604 $23,942 $90,908Expenses $2,803 $9,592 $21,642 $36,875Net Profit Before Taxes ($2,524) ($6,987) $2,300 $54,043
Notes:1. Dollars in thousands. 2. FY2016 Uses of cash funds: R&D (66%), Marketing/Sales (18%), G&A
(16%)3. Earliest FY2016 start contingent upon Seed funding 4. Product Revenues include ‘Future Products’ as follows: FY2018: $2.1
million; and FY2019: $45.1 million. 5. Reference Financial Model: fin26
Confidential Siliconic Home
The SmartCreature is a Wi-Fi connected hands-free device that brings your favorite Internet features into your home using just your voice
Selected Target Partners
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Investment Opportunity
Year 0 financing targets:
Seed* $1,950,000 (FY2016/Q1/Q2)
Crowdfunding (Net Cash in) $742,000 (FY2016/Q4)
Series A equity financing: $10.0 million (FY2017/M1)
Series B equity financing: $10.0 million (FY2018/M1)
Liquidity event/exit strategy: acquisition by a major firm (> FY2018)
Confidential Siliconic Home
*Convertible Notes will be used. $50,000 investment to date (1/1/2016).
For more information, please contact:
Tim Connelly, mobile: 408-608-7497office: 408-866-8010
email: [email protected]
Siliconic Home, Inc.Headquarters: San Jose, CA
“Great things in business are never done by one person, they’re done by a team of people.” Steve Jobs
Contact
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