Frontier Technology for Healthcare

©

Frontier Technology for Healthcare

Bringing next-gen intelligent, connected, streamlined bizops & healthtech visions into

reality.

Contents Executive Summary ...................................................................................................................................... 1

Company Description .................................................................................................................................... 3

Service and Product Summary ..................................................................................................................... 5

Market Analysis ............................................................................................................................................. 8

Marketing and Sales ................................................................................................................................... 10

Funding Plan ............................................................................................................................................... 11

Financial and Operating Projections ........................................................................................................... 11

Appendix ..................................................................................................................................................... 12

AvatarMEDIC’s mission is to improve healthcare quality and accessibility by validating

and coordinating research, design, and integration of frontier technologies. We are a

team that thrives on solving technology, design and business challenges. Our managed

ecosystem connects needs to resources, and possibilities to opportunities, to enable

and facilitate innovation.

Our current services include technology & strategy consulting, partner & ecosystem

management, and frontier technology design / R&D. We identify the right goals, and

illuminate the pathways to those destinations, and provide support for ongoing projects

or needs.

AvatarMEDIC, Inc. ©2021 Page 2 of 15

A Porter’s Five Forces analysis reveals significant market opportunity as there are few

substitutes, rivals are either in early stage or larger slow moving and focused on existing

solutions, and barriers to entry are significant. SWOT analysis reveals that we can make

use of opportunities through existing strengths and effectively minimize/mitigate

potential weaknesses.

Initial go to market strategies include partnerships with research labs, alliances with

existing frontier technology companies, and leading innovation ecosystem

engagements. We will gain traction by leveraging professional network and team clout.

Marketing plan includes online presence, social media, eminence in the market through

speaking engagements and professional networks, technology matchmaking networks,

and word of mouth as the community is closely knit. With several clients in the pipeline

we plan to generate revenue organically in Q1 2021.

AvatarMEDIC is currently self-funded and seeking seed funding through private

investment and government grants. Initial funds will be used for customer acquisition

and grant applications to accelerate scaling of our services including consulting, product

design and development, partnership development, ad hoc support, and research

coordination.

With current resources, our team can deliver services with minimal overhead, and

projected expenses are also minimal. With proper funding, we project that our operation

will be cashflow positive within 12 months. Without funding profitability will be delayed

by a factor of 2 to 2.5x.

Financial Highlights

AvatarMEDIC has a strong revenue potential from high value clients and achieves

profitability immediately using ad hoc contracting on a per project basis.


AvatarMEDIC’s mission is to improve healthcare quality and accessibility by validating

and coordinating research, design, and integration of frontier technologies (IoFT). We

are a team that thrives on solving technology, design and business challenges. Our

managed ecosystem connects needs to resources and possibilities to opportunities -

enabling innovation.

There are many opportunities at the intersection of healthcare and technology which

require an experienced, multi-talented and cross-functional team to recognize, innovate,

and address.

Our current services include strategic advisory, frontier technology R&D, and partner &

ecosystem management. We identify the right goals, and illuminate the pathways to

those destinations, and provide support for ongoing projects or needs.

AvatarMEDIC’s vision for the future includes developing our own unique products to

improve healthcare access and quality under the AvatarMEDIC or owned brand.

Company Ownership/Legal Entity

AvatarMEDIC, Inc. is a C Corporation registered in Delaware doing business in

California. We provide consulting, product design & development, partnership

development, niche technical support and research coordination, along with working

toward our own unique product offerings using frontier technology for the medical

space.

Location

With physical offices in California, we are a network with global presence.

Management

John Hanacek, MA is the CEO and co-founder. He has a BA in Political Science,

International Relations from UC San Diego and a MA in Communication, Culture &

Technology from Georgetown University. A background in entrepreneurship, UX design,

strategic foresight, futures analysis, spatial computing and first response as a former CA

State Parks ocean Lifeguard. He is a founding board member of the Global Co Lab,

providing opportunities for adults and teens to work together on solving the UN SDGs.


Susan Ip-Jewell, MD is the Chief Innovation Officer (CIO) and co-founder. Background

in research and clinical medicine, and space medicine. Veteran analog astronaut with

experience deploying to remote and isolated environments. Early telemedicine pioneer.

Entrepreneurship and exponential technology expertise.

Atul Kaushal, MD MBA is the Director of Strategy & Business Development. Atul has

20+ years of broad experience in healthcare, health tech, and management consulting.

Physician MBA with background in building and managing business relationships &

engagements.

Shafi Ahmed, MD is a multi award winning cancer surgeon and digital healthcare

innovator. He is a member of the NHS assembly advising the government on the NHS

Long Term Plan and was awarded the Future NHS Award by members of Parliament in

2018. He is an advisor to the Abu Dhabi government for digital transformation of health

and innovation. He has set up surgical education programmes in over 20 countries

including conflict zones. He has streamed live operations using Google Glass, Virtual

Reality, social media and on national television. He is one of the top 20 global

influencers in digital health and innovation and is a HIMSS Future50 clinical leader

2019.

Rafael Grossmann, MD FACS He was one of the earliest GoogleGlass Explorers in the

world and was the FIRST Doctor to ever use Google Glass during live surgery. This

event catapulted him into digital medicine leadership, as a disrupter of established

medical paradigms and traditional ways of practicing. He’s advisor and consultant to

several entities, including Magic Leap, and many startup enterprises in the technology

landscape. He’s lectured at MIT Media Lab, Stanford, Google, Deloitte, and many other

pivotal digital-health industry players.


(1) Strategic Advisory (weeks)

(2) Product Design and R&D (months)

(3) Partner & Ecosystem Management (ongoing)

Heathtech Startups & Frontier Tech Companies

● Mission & Vision Workshops

● Brand Consulting

● Business Plan Development

● Product Strategy ● Comms &

Marketing ● GTM Strategy

● Innovation Ambition Workshops & Consulting

● Product Design ● Virtual

Principal Investigator (vPI)

● Facilitation with Partner Research Labs

● Introduction to Corporate Partner(s)

● Introduction to HC Providers

● Project Management

Healthcare Providers

● Digital Transformation Assessment

● Telehealth Assessment

● Next-Gen Digital Transformation

● Next-Gen Telehealth

● Innovation Ambition Workshops & Consulting

● Product Design ● Facilitation with

Partner Research Labs

● Introduction to Corporate Partner(s)

● Introduction to Healthtech Startups

● Project Management

Intersections n/a ● Intersection Exploration

● Next-Step Planning

● Partnership Facilitation

● Engagement Management

● Ecosystem Management

Newsletter Level 1

• High level trends

• Public blogs from team members

• Project updates

• Sales funnel entrance

Level 2

• Level 1 +

• Detailed trends

• Exclusive blog posts from team members

Level 3

• Access to exclusive team webinars

• Project calls for participation


Clients can enter at any ‘stage’, yet the stages serve as a funnel toward the highest

value, sustained partnership activities.

Stage 1 - Strategic Advisory - is the least

intensive and most affordable service

offering, and serves as the top of our funnel

Stage 2 - Product Design and R&D -

organically follows for clients completing

Stage 1, and we also admit clients directly

to Stage 2 if appropriate

Stage 3 - Partner & Ecosystem

Management - is where we aim to create

the most value by facilitating and managing

innovation partnerships. Profits in Stage 3

are maximized by working between large

organizations seeking innovation and

smaller innovative companies.

Current Unmet Need

The world is at an inflection point where the confluence of several technologies will

change the way we live and work, much as the internet and personal computing did in

the 1990’s. Building atop the information and computing revolutions, we are integrating

frontier capabilities, such as Artificial Intelligence (AI), robotics, brain computer

interface, and wireless communications (5G, 6G) to name a few, to make entirely new

innovations possible.

Two factors create the perfect storm for AvatarMEDIC to launch as a consultancy, R&D

team, and dot-connector.

Many healthcare providers are struggling to understand how to catch this paradigm-

shifting wave of innovation. At the same time, the healthcare market is ripe for

disruption, which analysts agree has been accelerated by the COVID 19 pandemic.

AvatarMEDIC is creating an ecosystem of innovators, research labs, and commercial

clients. Our end-to-end, fully integrated service offering portfolio creates a uniquely

qualified and accessible one-stop-shop. Integration of Frontier Technologies (IoFT) as a

Service is our solution.

Clients may go through the process from beginning to end, or enter the pathway at any

point. Our continuum of services includes:


● Strategic Advisory. Our team is well-equipped to advise early-stage companies,

and those that are trying to embrace frontier technologies. We will support

clients with early-stage business services, digital transformation & telehealth

strategy, and as a Virtual IP for companies needing guidance.

● Frontier & Exponential Technology Design and R&D. Our deep background

in design and R&D allows us to keep this vital component of innovation in-house

and under control.

● Partner and Ecosystem Management. Leveraging our professional and

corporate network, we are uniquely positioned to broker partnerships between

small innovative companies, and more established organizations that are

pursuing innovation. Our close relationship with globally recognized research

labs and health systems affords our clients an opportunity for testing products

and services in a controlled environment.

Differentiation

AvatarMEDIC is positioned in the market as an agile, affordable, approachable,

innovative and collaborative end-to-end professional service provider in the frontier

healthtech space. We are focused on adjacent and transformational innovation.

By integrating services across the continuum of startup advisory, design and R&D, and

ecosystem management, AvatarMEDIC differentiates from competitors in the market.

In today’s market, there are many companies that can benefit from these services but

do not have funds or resources to engage larger players in the space (e.g., Big 4 or

MBB consultancies). We do not plan to compete with larger established consultancies.

Suppliers

“Suppliers” include the SME network from personal and professional contacts (career

and clout of core team). We have the knowledge within our team and existing network,

and the market has plenty of ‘person power’ to support our virtual headquarters.

External vendors and offshore suppliers are available on demand.

Service and Support

We offer a controlled pathway for frontier (transformational) innovation and can engage

clients at any stage of their business and or level of ambition. Frontier technology focus

areas include: spatial computing, AI, haptics, robotics, 5G edge networking, remote

sensing and logistics, space tech


Manufacturing/Service Processes

We will dynamically adjust resource levels as needed. If a project requires

manufacturing we work with external vendors and partners to manage and implement.

Our framework relies on maintaining a lean core team through the process that ensures

continuity and manages resources as needed.

The digital health market is expected to increase nearly six times in size by 2026 to nearly

640 billion U.S. dollars, with an expected CAGR of 28.5 percent from 2020 to 2026. This

statistic shows the digital health market size forecast worldwide in 2019 and a projection for

2026. - STATISTA: Global digital health market forecast 2019 and 2026

Customer Definition

AvatarMEDIC engages with several types of organizations, at an affordable price point,

to create value for its customers and stakeholders by leveraging the experience of the

core team and the network of companies in its ecosystem.

● Strategic Advisory. We provide professional business services, including

business plan evaluation and GTM strategy consulting to early-stage companies.

For more established companies, we advise on digital transformation and

telehealth strategy. For startups needing R&D funding, we act as a “Virtual

Principal Investigator” in order to secure grants and other funding.

● Partner and Ecosystem Management. From small start-ups to larger medical

devices and/or technology companies, we leverage our ecosystem to pair

problems with solutions. We add value by managing partnerships and resulting

engagements.

● Frontier Technology Design and R&D. Through our partnerships with health

systems and research labs, we leverage our in-house design and R&D talent to

offer large and small clients a sandbox for research, design, and testing of

innovative products and services.

Market Segmentation

Two main customer segments are:

1. Healthcare providers (professionals) looking to innovate their practice

2. Healthtech startups and/or frontier tech companies that are looking to enter the

market, communicate/brand, scale up, and validate their innovations

https://www.statista.com/statistics/1092869/global-digital-health-market-size-forecast/


As AvatarMEDIC grows, a re-segmentation of the market is warranted (e.g., by client

company type, company size (price point), geography (regional focus of our network),

and virtual PI clients outside the United States.

Five Forces Analysis

A 5-Forces analysis of AvatarMEDIC’s viability in the market highlights potential

challenges faced by the company. A detailed explanation can be found in Appendix “A”.

SWOT

Detailed version in Appendix “B”


Marketing Plan

Utilizing several channels:

● SEO optimization for frontier/exponential technology in healthcare. We have already seen proven interest from cold outreach in next-gen technology for clinical practice

● Industry eminence - author content to send to major publications ● Accessing networks like NIST smart cities, MedVR, Founder Institute (alumni

company FI 2020) ● Soliciting ‘problems’ from hospital and clinical clients for matchmaking database. ● Speaking engagements ● Give ‘10%’ away as sample resources, inviting customers to sign up and get

more ● Newsletters - phase 1, 2 and 3 (also shared on LinkedIn)

○ Level 1 (free) pushes level 2 ($) pushes level 3 ($$) ○ Mix of value and sales for us, and info gathering ○ ‘Interview with X’ create list of questions to send out

Pricing

Mixture of competitive pricing based on other consultancies in the healthcare industry

while also positioning our prices as in a higher tier to reflect the unique value proposition

via our team’s specialized knowledge.

For clients, we utilize a mixture of an hourly rate card approach for ‘a la carte pricing’,

and packages which bundle services and make safe assumptions about time to

delivery. See Appendix C for example rate card and services menu.

Channel Strategy / Go to Market

Overarching strategy: Will utilize word of mouth in network and eminence of speaking

engagements and participation in industry events. We sell directly to potential clients

whenever possible. Utilizing our team’s eminence and network strength we have a

robust field of potential clients in healthcare and frontier technology to explore directly

before needing to dip into more specialized marketing campaigns.

Sales Process

In early stage sales team will be lead by CEO and will pursue and follow up on leads as

part of regular startup activity. The newsletters and marketing materials are focused on

being valuable to the audience and serving as marketing. As the budget allows we plan

to expand the team build in more automated systems. The sales funnel is built into our

natural progression from level 1 to 2 to 3 offerings.


Valuation at $5M

Current investment (founder capital): $40,000

Seeking: $200,000 Angel round

Use of Funds

Building out the deal flow (filling the funnel) and ensuring instant start time, while

mitigating any potential billing cashflow delays.

Marketing focusing on starting regular newsletter content, SEO optimization, strategic

LinkedIn connections, and supporting team members with materials for upcoming

speaking engagements.

Bringing in personnel to manage marketing/newsletter and starting the CEO on a salary

as primary sales lead and partnership developer.

Mixture of direct client work, newsletter subscriptions for exclusive insight content,

revenue sharing agreements with select clients, and eventually IP licensing from R&D

project outputs. With expenses tied to revenue generating activity as needed any

revenue growth is reflected in profitability due to dynamically responsive overhead.

Because of the frontier nature of our activities it will take a few years to gain traction,

then when trends catch up to us we will begin 2x and 3x growth.


A Expanded Five Forces

Suppliers

Launching as a consultancy and dot-connector gives AvatarMEDIC an advantage of not

experiencing pressure from suppliers. As the company grows and expands into product

development, suppliers will become more relevant. As the frontier-tech and robotics

industries are relatively small communities, working as consultants and dot-connectors,

AvatarMEDIC can develop relationships with potential suppliers to mitigate future

strategic concerns.

Substitutes

Substitutes for the initial service offerings include accelerators, Small Business

Association (SBA) orgs, research labs, and networking groups. Although accelerators

are a substitute to our consultancy service, these programs are not readily accessible

and may require equity or control in the startup in exchange for services. SBA orgs

often have limited resources and arms-length involvement with startups which limits

their value. Research labs can do R&D for startups, but this comes with significant

investment in time, paperwork, and possibly funding. While networking groups and

events are a good way to meet potential partners, AvatarMEDIC leverages its curated

list of affiliates to reduce time and guesswork from the process, and facilitate

introductions between the most appropriate teams.

When looking at the long-term ambition of this company, it is clear that there are very

few substitutes for real-time remote healthcare delivery, surgical robots aside, as it is an

industry in its infancy. Whether in austere environments or in underserved rural areas,

remote medicine is an industry poised for rapid growth, with the supporting technology

(e.g., 5G and IoT) developing in parallel.

Rivals

Although there are competitors for each of the three initial offerings (i.e. consultancy,

R&D, dot-connecting), there is no company that does all three services as a one-stop-

shop. There are several consultancies focusing on startups (e.g., GTM strategy

consultants) however these consultancies do not have the R&D or dot-connecting

functions in-house. Likewise with R&D companies and “tech-matchmaking” services,


there are few, if any, that can oversee and manage projects with the perspective of a

consulting lens.

Barriers to Competition

The biggest barrier to competition in the early stage is value. In the near-term,

AvatarMEDIC aims to play in a specific niche defined by the talents of its founders and

core team. Specifically, it is the intersection of strategy consulting, R&D support &

oversight, and healthcare/healthtech matchmaking. Although there are companies that

cover all three offerings, these are typically larger consultancies with expensive fee

structures that may be out of reach for startups, research labs, and moon-shot teams of

larger organizations.

In the longer-term, AvatarMEDIC will enter the remote medical care space with

innovative products and services. The barriers to entry in this space are, primarily, that

the type of talent required to play in the space is hard to find and expensive to hire,

creating a higher cost. As a lean startup with this talent already in-house, AvatarMEDIC

can play in this space at a lower cost and thus offer lower pricing to customers,

mitigating competitive rivalry.

Customers

In the initial stage, buyers may exert pricing power over AvatarMEDIC as we do not

have a track-record or table of ‘wins’ to demonstrate. However once we overcome

these weaknesses through successful completion of our first few engagements, for the

reasons discussed above (e.g., one-stop-shop for services and sparsely populated

frontier health tech product space), AvataMEDIC will be a unique boutique service

provider for both startups looking to grow, and for established healthcare companies

that would like to embrace the future, but do not know how.


B Expanded SWOT analysis

Strengths

An analysis of strengths in the company

reveals a talented and well-networked

core team with innovative ideas and a

unique sandbox for testing software,

hardware, and human performance in

various field conditions. As a frontier-tech

consultancy and partnership facilitator,

AvatarMEDIC has the ability to access

untapped value in the current market.

Weaknesses

Weaknesses & Threats: Opportunities for

improvement include some gaps in talent

(e.g. marketing), current lack of funding,

not having a product in the market, and a

not-fully-developed offering portfolio. Still

need to deliver a collection of ‘wins’ to

prove the brand and team.

Opportunity

Plethora of health tech startups needing

affordable, experienced, and well-

connected consultancies to begin or

accelerate their efforts. Other customer

segments include university research labs,

the military, and aerospace industries.

Research labs are seeking to translate

their research into the market, while

military, aerospace (e.g., NASA) and

private interest groups are ready to

sponsor and cooperate on innovation

projects. Significantly, a major opportunity

is the public’s acceptance of, and even

demand for, healthtech and especially

virtual health remote care, which has been

accelerated by the pandemic.

Threats

Legal complexities of partnerships could

create issues down the line when IP is

developed within the efforts. Anti-

competitive practices by larger

organizations could shrink the market size

for our offerings. Poaching of our talent

pool by larger organizations.


C Pricing examples

Frontier Technology for Healthcare

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