1 Building Commercial Software It has to work 100% of the time.
2 Presenters SPI Software: Jeff Wilder: VP Customer Services Steve Schmidt: CFO Preclara: Jack Karabees: CEO U Innovation Bob Williamson: Entrepreneur In Residence
3 Three Important Concepts 1 Hosting: Cloud versus Server a) Dirty little secret, all this means is where the server is located and who takes care of it. b) Important from your point-of-view. 2 Freemium Model Rules. 3 Trained Frog Rule. a) No one important is interested in HOW it was written. b) Customer s only concern is what does it do for ME???
4 Very Different Companies Very Different Businesses SPI has provided timeshare and vacation club operators the software to manage their businesses since 1978.
5 Systems Products International Developing and supporting software since 1978 Transitioned through multiple development and technology platforms Currently has 20 employees 65 customers Over 2500 users From single to 250 user installations
6 Why Make High Quality Software? A solid foundation to build upon Attract top talent Keep support costs low High customer satisfaction Excellent references
7 Making a quality SaaS product Ongoing customer relationships. Not a one time transaction SaaS Key Features and Expectations Constant Availability Intuitive Interfaces Automatic Upgrades Easy Customization Integration with other SaaS products
8 SaaS Sales Give a free taste Social media / guerrilla marketing Create a customer service culture Happy customers are your best sales resource Avoid the big fish customer with complex requirements
9 SaaS Support Training videos and tutorials Webinars Self service portal Help desk Forums Knowledge base / Wiki Retaining customers is critical to success
10 Teams Needed 1. Software Development Planning Team 2. Research and Development 3. Sales and Marketing 4. Support Team 5. Human Resources 6. Finance / Accounting
11 Develop Easy To Use Software Applications 1. Sales Tool 2. Encourages clients to implement the software 3. Maximizes the efficiency of operations
12 Develop Analytical Reporting Tools 1. Operated on any device, browser, and on the cloud 2. Assists management in quick and efficient analysis 3. Make profitable business decisions in a timely manner
13 User Feedback 1. Value of Software 2. Necessary Improvements 3. Usage tracking 4. Services 5. New Markets 6. New Products
14 Develop Effective Leaders 1. Measurement Tools 2. Methodologies and Processes 3. Applications and Tools 4. Inspiring Employees 5. Team Building 6. Effective compensation packages
15 Emphasize Quality Services 1. Research and Development 2. Implementation 3. Support 4. Business Analysis / Consulting
16 Effective Marketing Strategies 1. Social Media 2. Company Website 3. Press Releases 4. Customer Conference
17 Form Partnerships 1. Revenue partnerships with vendors 2. Beta test partners 3. Consider contracted partnerships for: A. On-site project management B. Software Development C. Software Interfaces D. Software Conversions
18 Effective Finance Models 1. Keep track of sales pipeline to predict new business. 2. Record rate of contract renewals and attrition. 3. Estimate total value of contracts landed. 4. Profit and Loss Forecasting 5. Cash Flow Forecasting
19 Preclara Investor Presentation March, 2015
20 Preclara Headquarters: Coral Gables, Florida Employees: 3 FTE s Structure / Entity: Delaware C Corporation Founded: 2014 Sales & Marketing Launch: Q4, 2015 Platform: Beta- stage Customers: 40 Market Acceptance: 40,000 Reports To- Date
21 Preclara Commercial Applications Diagnosis of Disease Predictive Medicine (Risk Determination) Genotyping of Specific Disease (to Guide Therapies) Pharmacogenomics (Optimize Drug Therapies) Carrier Screening Newborn Screening Forensic Testing Identity Testing
22 Marketing Channels
23 Typical Reimbursement Codes Beckwith- Wiedemann: methylation and copy number analysis Beckwith- Wiedemann: CDKN1C sequencing Beckwith- Wiedemann: prenatal diagnosis 81265, , Beckwith- Wiedemann: familial mutation 81401, Cancer Gene Panel Familial Adenomatous Polyposis FAP: MYH Full Sequencing
24 Genetic & Healthcare Industry Needs Detect Disease at Earlier Stage (easier and less expensive to treat effectively) Stratify Patients into Groups (enables selection of optimal therapy) Reduce Adverse Drug Reactions (early assessment of individual drug responses) Improve Selection of Biochemical Targets (for new drug discovery) Reduce Time, Cost, and Failure Rates (for clinical trials) Shift Emphasis from Reaction to Prevention (disease to wellness)
25 Challenges in Genomic Testing Vast Volumes of Data, Computationally Intensive Require Specialized Knowledge & Staff Current Methods for Analysis Require Dedicated Staff Often Results Format Do Not Support Specific Clinical Decisions Scenario Creation & Modeling are Very Sophisticated
26 Preclara Genomic Diagnostics Provides: Robust Computational Infrastructure Genetic and Genomic Diagnostics to Support Clinical Care Detailed Analysis of Sequence Information (DNA, RNA) Higher- Level & Complex Clinical Laboratory Diagnostic Tests Ability to Maintain Pace with Innovations in Scientific Knowledge
27 Bioinformatics Market: $13 Billion*(2018) 2014: $8.3B+ 2015: $9.3B+ 2016: $10.4B+ 2017: $11.6B+ 2018: $13 Billion+ *Molecular Diagnostics, UnitedHealth / Booz Allen
28 PreClara Competitive Advantages Pure Computational Solution Lab Technology Neutral Unlimited Genetic Test Field Interactive & Specific Online Genetic Reporting
29 Competition CAPABILITIES Trans Neo Preclara LabCorp Genomics. Genomics Foundation Pure Computational Solution Yes No No No No Support Unlimited Genetic Tests Yes No No No No Lab Technology Neutral Yes No No No No Genetic Online Reporting Yes No No No Yes Genetic Interactive Reporting Yes No No No Yes Comprehensive Newborn Screens Yes No No No No Clinically Actionable Reporting Yes Yes Yes Yes Yes Single Specific Genetic Tests Yes Yes Yes Yes Yes Whole Genome Set Testing Yes No No No No
30 Preclara Projected Operations * Total Revenue $1,034,409 $2,542,280 $7,342,192 $15,824,191 $34,782,951 Gross Profit $672,365 $1,652,482 $4,772,424 $10,282,724 $22,608,918 EBITDA ($720,709) ($2,813,584) ($4,517,608) $(727,468) $9,391,396 Number of Customers (Blended) Number of Tests 5,000 15,090 49,030 99, ,600. * 16 Month Deployment of Funds (to Cash- Flow Positive)** ** Series- B Funding Estimated to be $10 Million
31 Preclara Executive Team Management Summary CEO Jack Karabees Chief Science Officer Dr. Nick Tsinoremas 20+ years executing high-growth plans for healthcare technology and service companies CEO Consult-A-Doctor, Start-up through Acqusition by Kleiner Perkins-backed Teladoc EVP elabor, VC-backed (Lehman, Redpoint), Start-up through Acquisition by ADP. SVP - Enterprise Project, VC-backed (Microsoft, Brentwood), Start-up to Acq. by Microsoft. 20 years+ Scientific Genomics and Bioinformatics Research and Development Founding Director and Professor, Medicine, University of Miami Senior Director of Computational Genomics, Merck and Co Senior Director of Informatics, The Scripps Research Institute VP of Genomics Products, DoubleTwist CTO Chris Mader 20+ years Software Architecture & Design in Genomics & Bioinformatics Applications Director of Software Engineering, University of Miami Center for Computational Science Head of Software Engineering, Scripps Florida Architect, Agent Search Platform, DoubleTwist Chief Medical Officer Klaas Wiirenga, MD 10+ clinician and genetic counselor Professor of Pediatric, Oklahoma University Health Science Center Clinical Director, Speciality Clinic, Oklahoma University Medical Director, Gentics Program, Oklahoma University Health Science Center Professor of Medical Genetics, Miller School of Medicine, University of Miami
32 Series- AA Funding Request: $500,000 Engagement of SalesForce (CRM) Engagement of Data.com (Prospect Data Provision) Acquisition of Active Industry Lists Engagement of HubSpot / Constant Contact ( Campaign Management & Reporting) Establishment of New Web Site & Digital Branding Short Explainer Video for Web Site and campaign SEO and 3 rd Party Lead Generation - Keyword Analysis Research & Report for Pay- per- Click (PPC) - A- B Testing: A- B Split- testing for Google AdWords - Traditional and Digital Advertising - Account Maintenance & Reporting of Preclara s ad campaigns and performance Genetic & Healthcare Industry & Channel Network Contact Attend Vertical Genetic & Healthcare Channel Trade Shows Proactive Preclara Outbound TeleSales and Marketing
33 Series- A Funding Request: $3 Million* Use Of Funds: 55% Sales & Distribution Expansion 10% Hire Key Management / Personnel 35% Ongoing Platform & Services Development *16 Month Deployment of Funds (to Cash- Flow Positive)** ** Series- B Funding Estimated to be $10 Million
35 Very Different Companies Very Different Businesses Preclara s analytical software provides genetic guidance to medical professionals based on standard blood tests. It has just commenced operations.
36 Questions For the audience: Can you tell me what language the presenters software is written in? How it works?
37 Take Aways You must be completely customer oriented. There are hundreds of details requiring a diverse and skilled staff.