Vantage Realized is building a wheelchair attachment that increases mobility and reduces joint damage for manual wheelchair users. Total Interviews: 88
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Vantage Realized is building a wheelchair attachment that increases mobility and reduces joint damage
for manual wheelchair users.
Total Interviews: 88
JJ Tang
● Hustler
● Team Leader
● BS in Finance from ASU
Gordon Freirich
● Product Designer
● BS Mechanical Engineering
from ASU
● Automotive background
Kalan Kircher
● Hustler
● Program Manager at Abbott
Hematology R&D
● BS Biomedical Engineering
from Northwestern
Vrunda Rathod
● Hustler
● MS in Biological Science
Policy from Georgetown
● BS Biomedical Engineering
from USC
Kirt Kirtland
● Awesome Mentor
Active manual
wheelchair users
What we thought
Manual Wheelchair users would
pay for a nonelectric solution
Insurance always pays for
new wheelchair productsOur primary customers
are wheelchair users
Only long-term users are
interested in new products
We could sell through all
channels concurrently
Wheelchair Users
Experiments
Doctors and Therapists
Industry
4 week and 37 total
interviews at pivot
(21)
(10)
(6)
What we learned:
Past/present competitors are failing:
Wijit Nu-drive Rio mobility pivot Magic wheels
Market is difficult to penetrate and there is a lack of reimbursement:
Limited/no customer desire:
“Sounds like a great product, but it’s not for me” “It’s out of my price range”
Active manual
wheelchair users
What we thought
Wheelchair users
concerned about
bumps and cracks.
Wheelchair
Manufacturers
Durable Medical
Equipment
Suppliers
Online Retailers
The Pivot:
Many users cited this as
their biggest challenge.
People want to buy online or
from a trusted store, not
from a salesman.
Vantage Realized has developed a caster wheel to improve safety and
comfort for manual wheelchair users
Caster EcosystemInformation
Physical Goods
Money
CM
Testing
Labs
Online
Retailers
Advocacy
Groups
Vantage
Realized
Wheelchair
Manufacturers
DME
PT’s &
OT’s
User
$6
$45
$75
$75
$150
$150
Production
User
Support
Distribution
Financial/Operations Timeline
2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Cash
Rese
rve
Series A $1 MM
Desig
n M
ilesto
ne
sN
etw
ork
ing/S
ale
s
Proof of
concept
Functional
Prototype
One OEM agreement
Sell Online
Patents
Filed
Manufacturing
Prototype
Reliability Testing
Pitch OEM to manufacturers
Commercial Manufacturing
Two OEM agreements
New Product R&D & Exploring New Markets
Validation Interviews
Lisa Stein, CEO of Spinlife
• Multiple patents necessary
• DME’s are consolidating
significantly over the next year
• Partner with a large
manufacturer
David Lippes, CEO of Ti-Lite
• Manufacturers expect 40%
margins
• Retailers expect 50% margins
• Need a deep product portfolio to
sustain the business
“If you can build something
that does that, people will
buy it”
“There is a lack of
innovation in the market
and I’m still selling
products from 20 years
ago. This product will blow
people away.”
Manufacturing cost
~$6Most likely asset sale vs. licensing
Final Canvas
Strong emphasis
on protective IP
End users don’t rely on
magazines for new product
information.
The wheelchair
manufacturers are the best
way to sell through DME or
online retailers.
Where We Are Now
First product in a viable business
We will be pursuing the product outside of class
Next Steps:
• Engage legal expert and file provisional patents
• This week we are meeting with Ti-Lite’s Outfront (a subsidiary
building new wheelchair products)
• Continuing to build a product portfolio
Investment Readiness Level
Appendix
Market - Casters
Units Amount*
Total Wheelchair market 3300000 $495,000,000
Manual Wheelchair users
(TAM)
1,980,000 $297,000,000
SAM (Active manual
wheelchair users)
1,188,000 $178,200,000
Target Market Year 1 Year 2 Year 3
0.5% 1% 3%
$891,000 $1,782,000 $8,910,000
*Assumes 1 pair purchased every year at $150
Partner Relationship
DMEContract
Manufacturers
Vantage
Realized
Information
Physical Goods
Money
Online
Marketplace
Wheelchair
Manufacturer
Advocacy
Groups
Testing Labs
$10-15k tooling
$6-10/pair
$50,000
samples,
labor
$50,000
samples, travel,
lawyer (not to
manufacturer)
Hypothesis
We thought that... Corresponds to
Canvas...
Manual wheelchair users would jump at the chance to move more
easily without electricity
Value Proposition
We could sell through all possible channels concurrently Channels
We would cater exclusively to long-term users Customer Segments
Our main customers were wheelchair users Customer Segments
Insurance would cover products that provided benefit in all cases Not covered on canvas,
reference in customer
segments?
Metrics that Matter
• How many units do we sell:o DME sales
o Web
o Manufacturer
• Cost
o Tooling
o Unit cost
o Burn rate/ G&A
o Customer Acquisition/Marketing
o Customer Lifetime Value
• Sales
o DME/consignment
IP Plan
● Avoid automotive patents
● Aim for personal mobility-specific
● Include aesthetics as patent criteria○ Current standard is focusing on geometric patterns
best suited to buckling
Next Steps: Upcoming Meetings
• Marilyn Hamilton, Founder of Quickie
Wheelchair Company
• Bob Hamilton, Wheelchair dealership owner
• Carl Mulberry, President of Columbus
Medical Equipment
Next Steps: Other Markets
● Strollers: 6.64 million units total
○ Total Market: $332.2 million a year
○ Assuming $200 average cost of a stroller, 1.66
million strollers were sold
○ Average of 4 wheels
● Hospital Beds: 6.92 million units total○ $3b market a year
○ Averaging cost of 10 hospital beds, average bed is
$1735
○ Approximately 1.73 million beds sold last year, 4
wheels
Year 1 Year 2 Year 3
Office $25,000
Prototyping Lab $25,000
Testing Lab (cost under activities)
Website $3000/year
Patents $15,000
Trademark $300
Contract Manufacturer $10k + $6 * production qty
Quality Contractor (cost under activities)
Capital/Investors Equity
Billing System $1,000
Advisors Equity
Customer Service Rep $30,000
Sales Rep $125,000
Supply Chain Specialist $100,000
Marketing/ Brand Specialist $100,000
Physical Intellectual Financial Human Resources Contracted
Resources
Year 1 Year 2 Year 3
Develop 3 new caster designs -
$30,000
Expand casters beyond
wheelchair market - $30,000
Receive patent on 1 caster
design- $10,000
Begin pitching to Manufacturers -
$50,000
Have 1 licensing agreement -
$50,000
Have 3 licensing agreements -
$50,000
Casters being sold in 10% of
DME’s in California and Arizona -
$50,000
Casters being sold in 20% of
DME’s in California and Arizona -
$50,000
Casters being sold in 30% of
DME’s in California and Arizona -
$50,000
Selling casters on 3 medical
equipment websites - $3,000
Selling casters on 10 medical
equipment websites - $5,000
Selling casters on 25 medical
equipment websites - $8,000
Sign agreement, build molds with
one contract manufacturer -
$10,000
Test prototype samples for
reliability and strength - $15,000
Supplier quality audits - $10,000 Supplier quality audits - $10,000
Activities
Sales and ExpensesYear 1 Year 2 Year 3
Unit
s Dollars Total Units Dollars Total Units Dollars Total
Gross Sales $660,000 $1,140,000 $1,680,000
DME Sales 3000 $100 $300,000 7000 $100 $700,000 10000 $100 $1,000,000
Licensing 0 $80,000 $0 1 $80,000 $80,000 4 $80,000 $320,000
Online Marketplace 3000 $120 $360,000 3000 $120 $360,000 3000 $120 $360,000
Expenses $275,300 $764,000 $1,187,000
G&A $4,000 $204,000 $454,000
Materials and
Manufacturing $56,000 $200,000 $218,000
Marketing $155,000 $255,000 $410,000
Research/Protoyping $50,000 $75,000 $75,000
Intellectual Property $10,300 $30,000 $30,000
Net Revenue $384,700 $376,000 $493,000
Initial Investment Needed
Year 1 Year 2 Year 3
G&A $4,000 $204,000 $454,000
Materials and
Manufacturing $56,000 $200,000 $218,000
Marketing $155,000 $255,000 $410,000
Research/Prototyping $50,000 $75,000 $75,000
Intellectual Property $10,300 $30,000 $30,000
Expenses $275,300 $764,000 $1,187,000
We need $1 million in startup investment
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