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PowerPoint Presentation - From Invention to Startup - Fall Qtr

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PowerPoint Presentation - From Invention to Startup - Fall Qtr Powered By Docstoc
					Commercialization of
an Acoustic Camera




      Ed Belcher
      Bill Hanot
      Joe Burch

  Sound Metrics Corp.
            DIDSON
Dual-Frequency Identification Sonar




                                      14 Nov 2006
                7.9 ft Shark

A 2.4m (7.9 ft) shark
swims in the
Oceanopolis Aquarium
in Brest, France. The
data were collected with
the DIDSON Diver Held
model held over the top
of the aquarium tank
wall.
Courtesy of Jean-Yves
Cueff, NEOTEK.

                               14 Nov 2006
             Deck of Sunken Ship

Changing the tilt of
DIDSON, captures
the deck or railing of
a sunken ship and
fish above the deck.
Taken with Diver-
Held DIDSON
Diver:
Dave Elliott, NOAA



                                   14 Nov 2006
                       Disclaimer

• This is a discussion on our commercialization process. I am not
  endorsing this process for everyone.




                                                                    14 Nov 2006
                Before the Beginning


• At APL we mostly made systems that satisfied the sponsor but
  did not generate much interest outside the sponsor’s specific
  application.
• We thought our lens-based sonars could be commercialized.
• We tried to license the technology to an existing company.
• Companies were not interested. One, company, said it would
  accept a license only if we first found a buyer for 40 systems.
• After 15 DIDSONs were sold from APL to a variety of users, we
  decided to try to form our own company.
• We had no promise of purchase from anyone. We thought if we
  started small and only sold 3 to 6 sonars, we could at least pay
  off our start-up loans.



                                                                     14 Nov 2006
               The Steps We Took

• Stated our intentions to the APL chain of command
• Learned specific steps from UW Office of Technology
  Licensing.
• Obtained permission to work outside the UW in a area
  of potential conflict of interest. (forms and permissions
  from Department Head, Director, Dean of COFS, and
  a Vice Provost.
• Incorporated Sound Metrics
• Completed negotiations for an exclusive license with
  the UW OTL
• Teamed with Ocean Marine Industries, Chesapeake,
  VA
• Mortgaged equity in our homes and established lines
  of credit


                                                          14 Nov 2006
                The Steps We Took

• Started operations in my basement




                                      14 Nov 2006
             The Steps We Took

• Plowed revenues back into the company to build
  more sonars.
• No SMC salaries were paid in 2003
• Ed retired in Dec 03, Joe resigned May 04, Bill
  resigned Sept 04
• From March 2003 to July 2005, we operated in the
  basement of my house.




                                                     14 Nov 2006
                 The Steps We Took

• In July 2005, we moved to a suite (1,900 sqft) in an
  office building at 15029 Bothell Way NE




                                                         14 Nov 2006
The Steps We Took




                    14 Nov 2006
               The Steps We Took

• DIDSON status through Nov 1, 2006: over 100 shipped and
  7 demo/rental units are in operation
• Our start-up loans are paid off
• We are getting a salary
• Number of Employees: 3 full-time and 2 part-time.




                                                            14 Nov 2006
            Teaming with an Experienced
                     Partner
• Ocean Marine Industries, Chesapeake, VA, is valuable for selling
  our products and as a business consultant
• We value their experience:
   – Obtaining and tracking customers and closing deals
   – Processing Government Contracts, POs
   – Expediting payments
• They are paid by commission




                                                                14 Nov 2006
             Commodity Jurisdiction

• APL asked the Department of State for a commodity jurisdiction
  for DIDSON
• DoS responded and put DIDSON on the U.S. Munitions List
• To ship outside of U.S.A (Canada is an exception) we needed an
  Export License
• Ocean Marine worked hard for over 2.0 years to get us off the
  USML. We are now off, and go through the DoC.
• Try hard to avoid getting your product on the USML.




                                                               14 Nov 2006
              Out-Sourcing, a Type of Leasing

• How do we make sonars with only 3 full-time and 2 part-time
  people? We chose to work with a number of companies with
  needed talent and equipment rather than do all the work in-house.
    –   Machining Parts
    –   Circuit Board Assemblies
    –   Array Fabrication and Potting
    –   Cable Assemblies
    –   Payroll
    –   Books Checked and Taxes Prepared by Certified Public Accountant
    –   Specialists that do needed tasks outside of our expertise
    –   Sales and Contracts with Customers
    –   Rent office and work space
• There is risk in this approach. You cannot easily control the
  schedules and priorities of outside help. So far, we have not been
  severely burned.


                                                                      14 Nov 2006

				
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