One-page teaser template (Please fill in information on shaded areas)
Name of Company: ABC Company Limited
Product / Business Overview (with product / service name and brief product description)
ABC Co. Ltd. was established in 2006 as a fabless IC design company, specializing in Micro-Electro-Mechanical-System (MEMS) microphone and pressure sensor technology.
The product, PSM-1, a full-featured single chip design for MEMS pressure sensor microphone, offers the smallest foot-print, consumes least power, and at 60% of the cost of current competitors.
Market / Technology Differentiation
Market environment, current market offerings, market gap and potential
- miniaturization in consumer electronics market requires smaller/more feature laden microphones
- current product offerings in market are power-hunger, big in foot-print, and without background noise reduction.
- manufacturers looking for economical single chip pressure sensor for electronic products
- Annual worldwide IC sales: USD300m by 2010 for MEMS microphone; USD500m now for MEMS Pressure Sensor
Technology / product solution, highlight of technology niche to fill market gap:
MEMS Technology from ABC Company Ltd.
- MEMS microphone/pressure sensor technology that can handle up to 35°C assembly temperature, and can be applied in both analog and digital electronics, consumes 30% power of current products, at 50% of current foot-print and reduces 95% of background acoustic noise.
- US Patent Application Number: 12/774,842 (method to control amplifier bias and noise)
Target customers (who buy and pay the bill)
- OBM, ODM and brand name earphone manufacturers
Business Model
- Sale of chips
- N.R.E. for selected brand names
Major Milestones and where are they standing today
- IC development completed in 2008. Acquisition of major clients and generation of revenue in 2009. IPO in 2015
Funding needed and use of proceeds
- USD400k for R&D, new market development and sales operations, representing 20% equity
- Cash flow positive after this round of funding
- Paid up capital up to date: USD1m
Key Personnel with brief background
CEO -Dr. Alex Li, / CTO -Dr Benjamin XingPh.D. (E.E.) -UC Berkeley, USA, 1995 / Ph.D. (Information technology) – MIT, 2002
B.Sc (Electro-Mechanical Engineering) – Technology University, Bonn, Germany, 1989 / B.Sc (Computer Engineering) – HKUST, 1990
CEO: Innovative System Corporation, PRC, 2005– 2008, a start-up company merged with Cisco in 2008 / Head of IT Division – IBM Hong Kong, 2003 -08
Financial projection
kUSD / Year / 2009 / 2010 / 2011 / 2012Sales revenue / 1300* / 3200 / 8000 / 20,000
COGS / 845 / 2080 / 5200 / 12,000
Gross Profit / 455 / 1120 / 2800 / 8,000
Gross Margin / 35% / 35% / 35% / 40%
Other Operational Expenses / 260 / 300 / 510 / 700
Net Profit / 195 / 820 / 2290 / 7300
Net Margin / 15% / 26% / 29% / 36.5%
* 2009 revenue includes USD300k up to May and project on hand worth USD1m