BleuKi Sean Burke, Frank Dodge, Raffi Isanians Kevin Hung, and Pao Ting Tu
Jan 07, 2016
BleuKiSean Burke, Frank Dodge, Raffi
IsaniansKevin Hung, and Pao Ting Tu
Moving into the Moving into the Digital WorldDigital World
Physical Media is becoming obsolete.Physical Media is becoming obsolete.
BleuKi
Business Description
What does BleuKi What does BleuKi do?do?
Where the Where the problem?problem?
The BleuKi The BleuKi solution...solution...
How does it work?How does it work?
BleuKiBleuKiBleuKi available for 5 different phone BleuKi available for 5 different phone companiescompanies
Bluetooth software linking car & cell phoneBluetooth software linking car & cell phone
Open car doors and trunk and disengaging Open car doors and trunk and disengaging alarm with cell phonealarm with cell phone
Use of ProceedsUse of Proceeds
First Stage:First Stage:
developing software developing software
Seek a senior programmerSeek a senior programmer
Purchase components to test and verificationPurchase components to test and verification
Look into licensing patentsLook into licensing patents
Second Stage:Second Stage:
Find talent in accounting, law, sales and marketingFind talent in accounting, law, sales and marketing
Assuming initial investments of $500,000 dollars.Assuming initial investments of $500,000 dollars.
Use of Proceeds
EmployeesEmployees32%32%
PatentPatent40%40%
OtherOther28%28%
Target Customer: FordTarget Customer: Ford
16.1% (112,149 vehicles) in January 2010
Ford will be selling 1,140,000 Cars annuallyFord will be selling 1,140,000 Cars annually
Offers Bluetooth enabled automobiles.Offers Bluetooth enabled automobiles.
Apple, HTC, Sony Ericsson, Motorola, Palm and GoogleApple, HTC, Sony Ericsson, Motorola, Palm and Google
StrengthsStrengths
Offers convenience and functionality to busy Offers convenience and functionality to busy consumersconsumers
Competitive advantageCompetitive advantage
SoftwareSoftware
Indirect MarketingIndirect Marketing
SWOT AnalysisSWOT Analysis
SWOT AnalysisSWOT Analysis
WeaknessesWeaknesses
Need expertise in sales, accounting and law.Need expertise in sales, accounting and law.
Competitors have released similar products Competitors have released similar products (Apple and Denso). (Apple and Denso).
Use of Bluetooth will jeopardize our ability to Use of Bluetooth will jeopardize our ability to use other wireless transmissions.use other wireless transmissions.
OpportunitiesOpportunities
Affordable solution convenient for smartphone Affordable solution convenient for smartphone users (30 million iPhone users and growing) users (30 million iPhone users and growing)
Bluetooth 3.0 will allow more functionality Bluetooth 3.0 will allow more functionality
Work with Ford to develop BleuKi: they are Work with Ford to develop BleuKi: they are pushing the use of technology in everyday use pushing the use of technology in everyday use with their Ford Work Solutionswith their Ford Work Solutions
SWOT AnalysisSWOT Analysis
ThreatsThreats
Mercedes Benz and Hughes Technologies Mercedes Benz and Hughes Technologies “MBrace” system: incorporates our concept “MBrace” system: incorporates our concept along with other features along with other features
Patent 6,697,638 by Denso Corporation blocks Patent 6,697,638 by Denso Corporation blocks our creation of such a device and requires us our creation of such a device and requires us to license from themto license from them
Viper Technologies: leader in automotive Viper Technologies: leader in automotive security systems and auto-starting systems security systems and auto-starting systems
SWOT AnalysisSWOT Analysis
Competitors Competitors
Viper SmartViper Smart
BlueKey WirelessBlueKey Wireless
Competitive Competitive advantageadvantage
SoftwareSoftware
Indirect Indirect MarketingMarketing
Sales and MarketingSales and MarketingExclusive to Ford Motor Vehicles: Exclusive to Ford Motor Vehicles:
1.2 million yearly sales, most with Bluetooth1.2 million yearly sales, most with Bluetooth
Contract: initial factorsContract: initial factors
5 years5 years
Yearly minimum product sales: 250,000Yearly minimum product sales: 250,000
Individual product cost: $50 or .4% Individual product cost: $50 or .4% retail valueretail value
Included as part of the option package Included as part of the option package with Bluetooth with Bluetooth
Yearly revenue: $12.5 million for each of Yearly revenue: $12.5 million for each of the 5 years of our initial contract the 5 years of our initial contract
Risk FactorsRisk Factors
Ford not accepting the Ford not accepting the contractcontract
Ford finding a Ford finding a competitor who could competitor who could do it for cheaperdo it for cheaper
Competitors Competitors duplicating our duplicating our technology and technology and targeting a competing targeting a competing car companycar company
FinanceFinance
Initial production cost:Initial production cost:
Costs: $300,000Costs: $300,000
includes product and includes product and software development, software development, program program writing, and testing writing, and testing
DistributionDistribution Marketing Marketing OurselvesOurselves
Ford will take care of Ford will take care of any other problems any other problems that aren’t directly that aren’t directly connected to the connected to the softwaresoftware
We will support Ford’s We will support Ford’s customers.customers.
• Preinstalled in Ford vehiclesOnline web page; download from web page using PIN # given with purchase
After ContractAfter Contract
Pursue another Pursue another contract with Ford or contract with Ford or GM or multiple auto-GM or multiple auto-makersmakers
Look into also Look into also developing BleuKi for developing BleuKi for home security home security systems, etc.systems, etc.
Sell the company and Sell the company and the rights to our the rights to our product outrightproduct outright
Expected ValuationExpected Valuation
RF Micro Devices, a $250 million company acquired RF Micro Devices, a $250 million company acquired Silicon Wave for $10.8 million after 7 yearsSilicon Wave for $10.8 million after 7 years
Expected Valuation at $55 Expected Valuation at $55 millionmillion
Exit StrategyExit Strategy
Initial investment: $500,000Initial investment: $500,000
Percent Ownership by Investors: 20%Percent Ownership by Investors: 20%
Return at end of 5 year contract:Return at end of 5 year contract:
20% of what company is sold for 20% of what company is sold for ($11 million of the $55 million) ($11 million of the $55 million)
Management TeamManagement Team
Questions...Questions...Thank You!Thank You!
If the phone dies...If the phone dies...
Ford has keypad code Ford has keypad code access on the outside of all access on the outside of all their vehicles.their vehicles.
Charger in the car.Charger in the car.