Startup Battlefield - Final Round | Disrupt SF (Day 3)
11:30PM Sep 7, 2018
Sher Ali Butt
Well, you have made it. These are the finals of the startup battlefield. Just out of curiosity, Has anyone been here for every single presentation of the startups in the last few days? Raise your hands.
All right. Look at that. That's pretty good. So you have seen 21 startups presenting from those 21 startups. We've chosen five, and there'll be giving six minute presentations. We're going to have a whole new panel of expert judges and we're going to give them 10 minutes so we're going a little bit more in depth during the q&a, then they're going to go backstage and we're going to choose a winner who will be announced in just a couple of hours.
That winner once again will win the battlefield cup and $100,000 and there'll be you know, confetti. It'll be really exciting. You got to stick around for it. That is all you need to know. Let's bring out our judges and get these finals started.
First we have Cyan Banister who kicked off this whole entire disrupt. She's a partner at Founders Fund she invest with a particular interest in augmented reality fertility heavily regulated industries and businesses that help people with basic skills find work.
Next we have Roelof Botha partner at Sequoia capital. Before Sequoia, he led PayPal through its IPO in early 2002, and subsequent acquisition by eBay. Next, we have Jeff Clavier, managing partner at uncork capital which he founded in 2004, to provide active support and capital for companies in the first 18 months of their life.
Next, we have Kirsten Green, who launched Forerunner ventures in 2010, where she serves as Founder and Managing Director. She's invested in more than 50 companies through Forerunner. Next we have Aileen Lee, founder and partner of cowboy ventures, a seed focused fund. Previously she held senior executive roles at Kleiner, Perkins, Caufield and Byers. RMG networks and gap.
And last definitely not least, we have Matthew Panzarino who you know as the editor in chief of TechCrunch but he's also been a retail jockey founded a professional photography business and a news blog covering the apple ecosystem, give it up for our awesome judges.
And here comes our very first startup forethought presenting for forethought are Deon Nicholas and Sami Ghoche. Come on out
today, we can access almost all the knowledge on the internet in an instant by simply googling it.
However, in close knowledge networks, like the workplace, finding information is still a horrible experience.
Instead of focusing on doing what they're actually good at. Employees are forced to sift through generic wikis, clutter, Google drive's and countless messages from teammates to get their questions answered.
knowledge workers waste over 38% of their day trying to access information to do their job. This is a massive number, and it's getting worse over time. If every engineer, marketer, exec or sales rep could get that time back, imagine the cost savings, and the productivity increase
Introducing forethought, information retrieval embedded into employee workflows. Today we're launching Agatha answers an AI agent who delivers answers to your workforce before they even ask.
our first application. Customer Support integrates with your favorite Help Desk platform to supercharge your support team
Agatha indexes any data source within your enterprise and safely hosts it within our secure environment
using a proprietary deep neural network architecture. Agatha truly understands the facts contained in your knowledge sources and immediately helps your support team whenever a customer has a question, let's show you how it works. Move to demo please.
Mix panel is an analytics company that uses Agatha answers with Zendesk. Let's suppose I am a customer support agent and mixed panel. And this is my queue of tickets in Zendesk, I open up a ticket.
The customer asked a complicated question about identity management and anonymous events.
I see that Agatha proactively left a private comment containing a suggested answer.
Her reading comprehension model automatically extracted the few sentences that answered this complex query by mining knowledge from hundreds of thousands of documents and even highlighted the main part of the answer for me,
in this case, the suggested answer was buried in the knowledge base inside in our paragraph from this article,
I can use the answer directly
or I can modify it.
Agatha even shows me information inside the Agatha sidebar.
This can include relevant documents or articles
macros for common questions
and pass tickets with similar responses.
Agatha can even find answers inside videos. This can be very helpful for walkthrough and tutorials like this hour long webinar where the answer was contained in minute 52.
all of this information at my fingertips turned a 20 minute ticket into a two minute one
back to presentation please.
Our SAS product charges up to $150 per seat per month, depending on the size of the enterprise and the features requested. Initially we're targeting the $7 billion market comprised of the over 4 million support agents using modern help desks. As we build out solutions for different job functions, we'll scale Agatha into the $30 billion enterprise productivity market.
Ticket deflection competitors like Salvi and Zendesk answer bot
redirect customers to help articles.
This is easy and automated, but requires very simple questions, decreasing customer satisfaction for most customers who simply want a human template based competitors like digital genius and answer IQ match questions to canned responses. This makes agents more effective but requires manual creation of these templates. They take over six weeks to deploy and can't handle complex or unexpected questions. Agatha automatically extracts answers to complex questions. Her reading comprehension model achieves human accuracy on reading comprehension benchmarks transfers across new customers and deploys in six hours. Not six weeks.
We launched our private beta four months ago. We now have seven paid pilot customers representing over 350 K and deal value, the first of which have already converted to annual contracts. Agatha has index over 10 million documents increased agent productivity by 30% and saved over 20 years of customer wait time.
Our team consists of published machine learning researchers and international award winning engineers from these companies and institutions like Harvard and the University of Waterloo. Our chief Commercial Officer was a 15 year veteran and Enterprise Search previously director of technology at companies that ultimately achieved billion dollar exits
today for thought is launching Agatha answers for customer support. If you want to optimize the workflow for your support agents, and save your customers, decades of wait time sign up for a custom email@example.com slash disrupt. Thank you.
All right, judges.
I'll start with you talk a little bit about the sales cycle. Who do you call on kind of what's the pitch to the customer? And how do you sell in?
Yeah, definitely. So today we're targeting mid to large tech companies privately this on our network, but that can be other non tech companies and we primarily target the director of customer support and we sell directly to them and the sales cycle and the pitches we give a demo of our technology and the ROI we've been able to see is hey, we will help your agents answer questions up to 20 30% more efficiently. And for these agents who are paid, say 60 k annually a year, you can imagine the ROI benefits of that.
How do you keep walk me through defense ability on this? Because if you are very successful at this, I can see people wanting to duplicate what you've done. So what makes you and your team uniquely able to solve this problem?
Yeah, definitely. So I can talk a little bit about defense ability. And so today, we have a technical technology advantage that allows us to have a much higher quality AI and go to market much quicker by deploying faster to many, many companies. And so that gives us a head start over existing competitors today, when it comes to defense ability and how we can be defensible in the long run.
Well, our AI gets better and smarter as we get more data and that's usage data, implicit feedback and, and that sort of thing. So we can actually maintain and extend our advantage over time as we go into more and more companies so that the other competitors won't be able to keep up and then in addition to the actual technology and AI advantage,
we can become very strategic to customers. So we not only will be inside your Salesforce users and us, but we will connect all the data data silos within an organization. And so what that means is for customers, they're, they're becoming more productive. And for the data sources, all of their information is better access by their customers. And so we're actually in a strategic position both in between the customers and all of the product players
can us to Clive Christian questions. One is
your deep learning infrastructure, is that something you've built or using someone else's? And second, can you clarify the second point, which is we're actually connect all those silos and does that mean that you have other products that you will release eventually, which are not support focus, but more knowledge management or things like that.
Yeah, I can take that. So for the first question, we we have a bunch of deep neural networks kind of clustered across our tech stack of their based on public research, as well as a lot of our own research, some of which we've already published, we're able to achieve near human accuracy, as mentioned, actually on par with Google brain for question answering as measured by the industry standard benchmark.
As far as that data silos, we've actually built, large scale
distributed indexing engine that exposes data source connector UI. So this is a UI that's on our website which allows you once your onboarding to connect all sorts of different data sources like Google drive's, wikis, Dropbox, all sorts of things that do not live inside your help desk, whether it's customer support or something else. And that's just a click of a button. We take care of the rest. But yes, actually, we are moving beyond customer support soon. That was our initial target market. We're happy to talk more about where we're aiming to go soon.
I mean, getting to the go to market part of it is how much of the market Do you cover with Salesforce and as index
Yeah, I can talk about that. So,
Salesforce and Zendesk are pretty big. In the help desk space. We're also thinking about other things like front, which are pretty good tool as well. And so we think between them, we cover maybe 50% of the market. And then there's actually a lot more. So in the very high end of the market, people are still using things like Oracle right now, and stuff like that. And because of our the way that we index and integrate into many different systems, it's actually pretty simple for us to actually go and build out integrations for those two as we go up market.
What about service now
our services? Yeah, I mean, exactly the kind of internal so as, as Jeff had asked before, what are some of the use cases we're going after afterwards. And so cuz
I was talking with service now the company that can be to Zendesk and the ticketing business and doing an integration with them as well.
So right, so one of the ways that we're actually going to be expanding is to internal help and stuff like that. And so we will be doing an integration with service now. And so we start with customer support, other use cases and workflows that are highly valuable. And we think we can drive ROI of sales. And then the third one would be internal question helped and answering those kinds of things in the service. Now use case,
does your system work only with previously structured data? Or can it ingests unstructured data as well?
Yeah, it works with unstructured data. And, as you said, from any data source, text memory, but we're also able to take in video as you saw,
our algorithms actually don't need to be retrained on any new data that we index. That's part of why we're able to deploy very quickly with no additional custom work. The custom work is essentially if there's a data source that's required for the integration that we've somehow for some reason haven't built yet or is not very popular, then we'll build it within a couple of days and then we can reuse it across different customers.
And then are you doing the transcription of video yourself?
Yeah. So it'll work with the most popular ones, like our YouTube videos, the Neo Wisteria. If there's something else, it's mainly about being able to download the videos.
So I love the evolution from systems of record to systems of engagement to systems of intelligence. And you're clearly in that realm. I'm curious about the point you made about learning over time, you know, to the defense ability question, because maybe there are other people with similar technology. But if you can get into a customer and learn and get feedback from how people answer questions and interact with your system. So I'd like to understand better how that works. And can you transfer that across companies? So is there a way for you to not sort of start from scratch every time you sign up a new client
and we do agree because some people will say, well, any learning actually want to keep myself
Yeah, yeah, both great questions. So there's two types of main main types of data that we collect. The first one is the actual text document data that we collect from the customers that is proprietary, very sensitive information, we obviously end up retraining our algorithms daily and getting better based on how the platform is being used for that customer.
And so that ends up allowing us to get better for that customer. And that we do not reuse for other customers. Some, some firms may have privacy concerns. So we don't do that. But our biggest learning actually comes from the other type of data that we collect, which is usage data, basically, the way that the employees are using our product, which buttons are they clicking on which order of the results are they liking we also compute our own similarity metric between the answer that we left and the answer that eventually it gets used by the support agent.
So all of that allows us to learn a lot of things about how to rank our results and that's actually very impactful and that is we used across customer so even if there's a new one that comes along, we're way better than we were when we initially started. And that's not derived from any sensitive data.
How much does it cost?
Yeah. So with regards to pricing, the list price is 1800 per seat per year. And that's derive based on the ROI we bring. So as mentioned, say 30% improvement in agent efficiency at a 60 k annual salary. Let's say that saves you in the limit 18 k per employee. So we take a 10th of that so that we can always have a 10 x ROI and that's kind of the list price and how we drive that
when you bring up a new client if it if you basically learning from disparate systems where if there's a technical question and there may be five different answers sitting in different systems. How do you train it? what the right answer is when you're starting from scratch?
Yep. So starting from scratch, we have a machine reading comprehension model and just based on the question that's asked, and the actual answers contained in these different documents that are coming from different sources, there is something that's more correct. And as humans, we can, we can, we can kind of inherently know what that is. So our model is good at mimicking that. But in addition to that, the
usage data that we collect that allows us to learn a lot of things about which data sources are more appropriate for which types of questions that's on that also
is the support people are basically doing QA for you and in kind of the trial period to kind of tell you which answer they think is the best one because oftentimes, obviously, a lot of this information like you know, how you answer a question might be different than how the four of us would answer it. And they all could be right depending on which office it is or which function it is or who the customer is
so so we try to leave a private comment, have a sidebar and and kind of just not change their habits and not change what they're used to doing so it actually if we if we return an answer from a previous ticket or case, it's clear that that answer was answering the question. There's also the back and forth that you can see what the customer so you can see that they liked it as long as it was a correct answer whether there was another one that was correct.
It ends up just being used to, we actually don't want them to be doing QA for us at all. And once we deploy to them after a little while, once they've gotten used to it, we actually run an A B test, double blind A B test, don't let them know like that were involved in any way. And that's how we measure our increases in performance. And that's power is based on
All right, we're out of time. So let's hear it one more time for forethought.
Our next company is origami labs was any for origami labs, or Kevin Wong and Marcus Leung-Shea.
My dad has been visually impaired since he was 13 years old. He has been an inspiration to me every single day. From the way he has broken through social barriers to how he has dedicated his life to helping others people like him. But despite his capability, it's always been hard for him to use a smartphone because it's a touch based, screen based device.
At origami labs we created already a ring that turns your hand into a smartphone. Now, the design process is a funny thing. What started as a ring for the visually impaired ended up becoming something that benefits a much broader audience
or a is a ring the sense sound as a vibration that passes through your finger directly into your ear. So only you can hear picks up your voice with a microphone or receives voice commands through Siri, google assistant and Alexa with our custom software or we can take and make a call send and read out a test message as well as be a quick action for your voice assistant.
Now what does it like to use Ori? Well, you know what they say hearing is believing. Please go to the demo.
Now, just as a note, because we're using bone conduction audio,
there is no audible sound for others to hear. So the only person that can hear is Marcus the person wearing the ring, but he won't be cheating and looking at the phone. So the first demo will do is to show that we can use a voice assistant privately and only Marcus can hear. So Anthony has prepared to double digit numbers. Sure. 66 and 69. Okay, great.
Marcus. What is 66 times 69? What is 66 times 69?
And as you can see, the answer is populated there. Only the audience can see Marcus What's the answer?
great so good math first mo Good. Now let's say a more practical situation. The second demo Marcus is going to show how he can send a text message without looking at his phone through just a touch of the year so Marcus is just about to meet me all the us to do is just press the ring touches ear and say
send a WhatsApp to Kevin saying I'll be there in five minutes
right now it's transcribing and then all you have to do is respond and say
and now through the power of the internet's my phone on the right will receive it now, right. So that easy now please go back to the slides
now. voice assistant technology it's it's already here. And with Ori you can interact in a private and discreet way at origami labs. We already have a patent applying bone conduction on your finger.
And that allows the most private and the most clear audio via vibration. We also have an additional three provisional patents
now our compatriots. They have pushed a smart speaker adoption to an astounding 19.7%. But they are stuck stuck in a speaker on your kitchen table on the dashboard of your car, or on a phone that's in your pocket or your bag
with Ori this ring. We've built a comfortable always on new private communication platform that's just one touch of the year away
now always sits comfortably between two promising markets, wireless audio as well as smart speakers. And conservatively just in the US and China market alone. We're looking at a $1 billion opportunity
and we've already gotten started in just a couple of months. We have 3752 early adopters across 60 countries. And we have pilot programs with four seasons peninsula hotel who are using Ori as a private team communication device and a quick voice customer search tool
and we're ready to go global with confirmed partnerships with SoftBank T Mobile amongst others, crossovers with Burberry, Chanel. we're well on our way to our first hundred thousand units sold by the end of 2019.
there is a secret feature built into Ori that until today, no one knows about,
think about how gestures are part of everyday communication. How slight gesture is actually a form of discrete communication. And unbeknownst to our customers. We've actually built in a six axis accelerometer and gyroscope into the ring. And by activating it, we will be able to enable a simple yet accurate gesture control. So previously, when Mark has had to send a message he had to say, send it now with ori gesture ori has to do is
and it sent
now Ori is priced at 199 US dollars for consumers 50 US dollars for businesses on a monthly basis. And we will then custom integrate with our software of choice. That's the future for orange deeper integration with software you can imagine with accurate gestures, a private voice assistance and a form factor that has worn all day or is really a paintbrush with which developers can paint new interactions with their users. I used to be so afraid of the word platform.
But now I know that it's not a platform that makes a good product. It's a good product that builds a powerful platform and today is the start of a new hardware platform.
Our team has experience all the way from marketing to research and development, but it always goes back to our inspiration or technical advisor my dad
My dad is a visually impaired software architect, the founder of the accessibility team at Microsoft and the inventor of the world's first talking computer with Bill Gates in the early 90s, he has inspired us to rethink Ori that is more than a ring that helps the visually impaired but in fact is a device that inspires us to use our devices in new discreet and private ways. So help us launch or globally spread the word join the screen for a revolution because one day with already YouTube will find your voice
I imagine at least one judging wants to try this out any volunteers
great. So I'm Marcus is just going to start on awkwardly put, oh
So it's fine. Doesn't need to go all the way down.
Yes. So now Marcus is going to run it.
Quick audio demo for you. So just to show you the audio quality, about 3.8 K through prints In response,
the cover your ear. Yeah, generally. There you go.
And then now you're here a sound pass through your fingers directly into your ear that only you can hear. When you speak. There's a dual microphone that picks up your voice. Yeah,
so very simple. But we spend a long time developing it. Oh, the audio quality is amazingly clear.
Yes, thank you.
Does it sound bony?
sound or when did you hear words? What did you hear
it speak out. Everybody could hear the words but they're very clear down. I just slide it down. It's much clearer than anticipated.
Yeah, so the main reason is because we have a very small actuator here and I'm so most of the time with vibration based actuators, you have a very difficult time doing treble sounds. So the high range sounds, so think of it as like a big base speaker. But because we've shrunk the size that allows us to get better fidelity at higher range,
rotational or linear,
it's linear listener. Yeah, electromagnetic
luxury name. So what resize stops and starts
So I have a question. Which of the features do you think is the most differentiated because the gesture reminded me of watching Minority Report?
And I was I was wondering whether that is even more differentiated than the audio because with with Bluetooth headphones like don't I get a lot of this value proposition already.
So bluetooth headphones are not necessarily a wearable product. So the great for taking making calls a very powerful product but specifically because as a wearable you're on the user all the time, you have a way of interacting with the customer in different ways. So push notifications basically incoming information is much easier to interact with the customer so in another way I think we think of the ring as the master of the 10 second interaction you know as a wearable you're not meant to replace other devices you meant to think about how you live within the ecosystem.
So do you have yet sorry but I mean,
once you Get a headphone sorry once you get a headphone that's like the movie her that is so discreet that you can wear it the whole time. I just wonder whether that takes the audio use case, whereas the gesture use case just seems more unique.
Sure. Sorry. Yeah. So for example, one of our, let's say want to take one of our pilot use cases. So we've learned a lot I think from our hotels so with peninsula and four seasons they don't like using in your solutions because you actually can't wear a headphone very long as you have humidity built up inside your ear so there's a high level of discomfort there so so the ring yes it's not necessarily it's not meant to be a hands free device right but it's meant to be a quick communicator
so you're cramming love components into that form factor and you have to have the battery as well so was the battery life what's the bomb and and where does this goes? Because this reminds me of the early Fitbit on your finger.
Yes, yeah. So right now the bomb cost is about four times so we get four times to our retail cost and we have some ways of scaling additional 30 to 40%. And then your first question was,
that's real life.
The battery life is a minute and 30 seconds to
hour and a half
hour day. Yes, sorry. Yes. an hour and a half to wreck playback and 48 hours standby. And we're doing a lot of refinement via LTE. So over the air update and that should be able to improve over time
and imagine them better life is significantly instant because you're transmitting sound via the the linear accelerator versus like a speaker, right?
Correct. Yeah, so if you play the linear etc The linear motor the entire time it runs an hour and a half and depending on the file we can actually get even longer usage yeah
Have you thought about selling to so that you can swap them and have them work that way because I can imagine I can't live without my phone Yeah, so my devices charging every hour Yeah, so that's something we might experiment within the future. I know the hope for the hotel use case right now. It comes in a big package with four rings in one box. So there's a charging case for all four rings.
Are there any potential side effects of the bone conducting technology? bone conduction technology is not new. It's been around for about 20 years, primarily using cochlear implants before we've just taken sort of like a medical grade technology and applied it in a more commercial setting. So there's been a lot of extensive research done on it a lot in Japan, actually, in the early 90s, there are no at least no known long term effects might help circulation.
So talk a little bit about how many people have used them in a commercial setting, like in a hotel setting, and what have you learned about what works and what doesn't work in that in that use case?
Yeah, sure. So, so far, we've deployed in several properties. So around 20 have tried it so far. So what we've learned is
staff are constantly moving between one to one to one too many and that's sort of one of the drawbacks of the existing solutions that generally one to a few and it's very different, very difficult to customize. So what we found is that people are really trying to give more nuance and how they communicate across service teams. So as VIP walks in, they need to notify the third floor that they've arrived and prepare the team for the room. And with a walkie talkie solution, it's really impossible to do that.
Yeah. And the second thing we've learned is also in the enterprise solution, we also have to build a very robust app as well, because they work on a hub and spoke spoke model. So you're not just doing ring to ring communication, but oftentimes they have a command center the back and they want to be able to send messages to individual people. I mean, that's very easily done with a screen based interface and the back end
you mentioned the sales price of 100, and then then books that are consumer, is there additional services that you can charge or is the software solution only for enterprise? Yeah, so that's what we were hinting at as sort of building out a hardware platform. I think it starts with some of the enterprise software use cases we have now we're now in discussions with companies like a line and WhatsApp to build individual versions of those app on upgraded ring that has upgraded processing and memory. So we'll be able to do that on board. Eventually, you might be able to build a marketplace but that doesn't start from day one. It's It's It's hard to say, I think when that will kick in,
you imagine always needing to be tethered to a device and phone
I imagine that you need to be that nowadays we are all connected regardless in this how intrusive that information is coming in. I think audio is something that is less intrusive than other ways it's a more human way of interacting with our devices and I think why part of a big reason why sort of like you know, her or you know, all these like Cortana and these type of things are part of pop culture is because it's in some ways almost trying to solve a problem of loneliness if you thinking about like the Maslow's hierarchy, right it's it's actually serving a very high level need in addition to all the functions that it does
there's been a lot of really cool devices that have come out at night. I have an Apple Watch. And you notice I'm not wearing it. That was supposed to be the 10 second, yeah. device. What gives you the conviction that you think people will wear this and continue to wear it, rather than to the novelty that they try for a period of time and then stop using?
Yeah, so ultimately, we use what we call extremophiles development. So developing for very specific group of people we think gives us knowledge about how to benefit a larger group. I understand people compelled to wear it, yes,
because they have to, because of their job. But right, like if I as a consumer, I'm trying to figure out why go to the consumer route, you know, like because and what do you think that consumers really will adopt it and wear it all the time?
Yeah, so one really interesting thing with so we have units are alive. You know, out in the market right now, already, people are using them a daily one of the really interesting things that we've learned is first is that a lot of our users actually because of the ring, it compels them to use voice assistance even more. This is something that we hypothesized at first but now actually with rings on the market. It actually does do this. And I think the second thing is that we have this, we call it the screen for revolution, right, which is sort of like this screen free movement. And I think ultimately there is a difference between a wearable that is based on an audio user interface versus a device but a sort of a mini phone on your wrist.
All right, give it up for origami labs
and bring out our next startup unbound. Presenting for unbound are Polly Rodriguez and Julia Lopez.
Let's start by addressing the elephant in the room. Sex is hard to talk about at 21. I found myself with a Velcro Whoa.
At 21. I found myself with the Velcro fanny pack full of chemotherapy drugs standing in a CD sex shop next to the highway in St. Louis, Missouri. my ovaries were nuked from radiation treatment following a stage three colon cancer diagnosis. My doctors told me that I would never have children but failed to mention that I was also going through menopause.
So I googled my symptoms to find out that I was facing a lifelong struggle with arousal and sexual discomfort. I took it upon myself to buy a vibrator and some lubricant and I can so vividly remember awkwardly meandering through the rubber penis. I'll have that CD sex shop wondering what in the hell am I doing here?
This is not an experience that is unique to a young woman battling cancer. Buying sexual wellness products as a woman is the worst. Most products are designed by men from the male perspective of what they think a woman wants. There's also a remarkable void and educational content when it comes to female sexual pleasure.
In fact most people learn about sex through porn. This impacts not only the product design, but also the shopping experience. If you go in store, you feel intimidated and overwhelmed. It's hard to know what product is right for you. And it's embarrassing to talk about your sexual needs with the random sales associate.
Conversely, you can brave the online search of sex toy. But you're still faced with the hyper sexualization of women and most likely a website that looks like it was designed in 1994. Despite the terrible shopping experience, the industry is booming. Turns out female sexual wellness is just an overlooked market because women are still shamed for enjoying sex.
To put this in perspective, the vibrator market the United States alone is more than twice the size of the condom market at a billion dollars annually. And yet, there's still no brand name that's really owning this space
until now. Meet unbound the rebellious brand bringing sexual wellness mainstream by designing next generation products at half of the price. We've designed and launched over 50, vibrators, lubricants and accessories. And we've written more than 300 educational articles with more than 12 million page views.
today. We are so excited to share a product that we've been working on for over two years. Introducing Palma a wearable fashion forward vibrating ring. This ring is reframing how we think about female sexuality. It's discreet yet beautiful design allows women to wear her sexuality without the feeling of shame. Let's show you how it works. Move to demo, please.
You see 40% of women report chronic difficulty achieving orgasm which makes sense because 70% of women require clitoral stimulation in order to climax that doesn't happen during regular penetrative sex. This ring is closing that orgasm gap.
As you can see here Julia cycling through the three intensity settings but what makes Palma truly special is the force setting which allows the user to customize the vibration patterns simply by tapping the surface of the ring
back to presentation please
Palma is the first product to market with this built in patent pending accelerometer feature which is what allows for the customer to personalize their experience with the ring.
When we take a step back and look at the company behind this product. unbounded revenues accelerated from 550,000 to 2.4 million last year and this year we're on track to do 4 million in sales. All of that growth has been organic with a customer acquisition costs below $3, more than 75,000 email subscribers and more than 51,000 followers on Instagram not one of which was bought
when looking at the competition unbound stands out in several key ways. Competitors such as Amazon, and Adam and Eve sell 10s of thousands of products in this category, but the majority of them contain carcinogens. Because vibrators are not regulated by the FDA,
smaller shops such such as Good Vibrations not only don't sell their own products, but also offer an outdated e commerce shopping experience. Lastly, vertically integrated brands like Lilo, sell these products but at twice the price unbound is the only affordable online destination that offers educational content to guide a woman to the right body safe product for her
and bounds. direct to consumer business model not only allows a woman to shop from the comfort of her home, but it also cuts out distributors as middlemen who take 40% of the margin. Today unbound primarily acquires customers through content and SEO followed closely by partnerships PR an opportunistic wholesale, such as goop and Urban Outfitters where our products are sold today,
but what truly differentiates. unbound is the world class talent of the team. These eight badass women are an anomaly to the adult industry. They come from some of the top universities, startups, media companies and corporations in the world unbound is also the first sexual wellness company for women that has been able to garner the backing of top tier VCs and advisors.
female sexuality should be just as accepted as male sexuality. But in order for that to happen, we must elevate the products education and the conversation Palma is the catalyst to that conversation and unbound is the revolution Thank you.
Did you guys want to take a look at the ring?
Yeah, we have lots of products to show you.
What product Have you been selling so far?
Which product? Yeah, we sell 50. different products that we make in house today, and our vibrators, our best sellers specifically we make five different vibrators at different price points with different features are best seller is squish which we have here today. It has haptic technology built into it. So the harder you squeeze it the harder it vibrates. It retails for $99 and because it was our best seller we took that insight and applied it to Palma which is a prototype here today. So be gentle with it.
Can you talk about the ring form factor? Like is it my ring? Do you expect women to wear it out where to meetings like what's the
yeah well we also have a fashion forward line of jewelry and our best seller in that are bangle bracelets that are also handcuffs. And what we found is our target customers, millennial women and especially a single women for the first time ever out number married women in United States and in the age of Donald Trump. Women want to wear their values on their sleeve and so the jewelry did overwhelmingly well.
And we found that it's kind of a wink and a nod for our customers. So people who know about it, you know, can can share that insight in that sisterhood. And those that don't are none the wiser, because it passes as beautiful jewelry on its own
and the bangle seems like it's a form of communication. Maybe with a partner, you're on date night you wear it and
in all seriousness, we found in the first three years of running unbound from customer feedback, that communication is one of the biggest barriers when it comes to sexual exploration. And so design forward thinking and really trying to be empathetic and how we're building these products, allows our customers to explore that part of their life without feeling embarrassed.
So So one of the questions I had, do you primarily sell and target women or do you target couples?
It's a great question. So we target primarily women because we feel they're not spoken to very often and when I say women I mean femme, non binary and traditional cis women. So we are inclusive of all femme identifying individuals. But an interesting insight is that 30% of our customers today are men. And so we actually believe that in the next year will develop a product that's focused more specifically on couples and then eventually on men as well because there's a huge opportunity to upsell and cross sell there.
So there were in the past a couple of VC backed companies that tried to get into this the sector and so would you think they fail to build a brand and something that actually succeed
for us, it's all about community I think that timing is everything and we got very lucky in a way in the sense that
the feminist movement is undeniable. We have 150,000 women that are part of our community day today across customers, email subscribers and social media followers. And what we're seeing organically happen is they're wanting to talk to each other and I think
The unbound team also represents the women. I mean, we are the customer. And so I think we're able to build brand in an authentic way that previous companies have not been able to do.
So there's no technology like why now it's just like the community and the environment is not a good picture of the buyer or
the why now, I think is the fact that we have a president who was caught on camera bragging about sexually assaulting women. And I think women are angry and want to wear their values on their sleeve, want to take back their bodies and want to use products that give them a self as give them a sense of autonomy and power.
When you think about your product portfolio, your pricing strategy over time and your goals to reach lots of customers. How do you also think about your distribution strategy, all those working together?
So we found through the data that the ideal price point is between 35 and $100, which is where we've priced the majority of our products. Sorry, what was the second part of the question?
Just thinking about like, okay, the product, how do you have a go to market product? It's a vibrator, you're getting traction there, you're starting a conversation there. Over time, you're expanding into other products, as you think about what the right place to expand is, how, like, what is your structure, your thought process around there? How do you think about like, maybe over time, other agencies to go to and then also similarly on a growth trajectory like distribution, or do you do it all on your own site? Do you imagine like reaching consumers and other ways?
Absolutely. So we really focused on today millennial women, but there are very specific needs that women have throughout their life. I personally found menopause to be one that a lot of people companies don't talk to him and going through menopause. So be it childbirth or menopause, or your wedding bachelorette parties. There are these very specific life moments that we want to target in talking to women and then we see wholesale is opportunistic 85% of our sales today are direct to consumer with margins around 65 to 70%
Wholesale we see as a customer acquisition channels. So we either only have consumable products through those channels such as lubricants, condoms, accessories, and we still keep all the vibrators as the dominant channel which is direct to consumer on our.
So you already have those other adjacent categories to
Yes. We sell a group in urban outfitters, and Selfridges and a couple but very select skew set. What does your team look like our team is eight women today, all varied backgrounds split between creative content and marketing, engineering and design. And then obviously Julia is our head of product and then customer service operations and fulfillment. So we're leaving but we work really hard
one of the risks for consumer hardware is often frequency right where you do you make you go to all this effort to build a beautiful product people buy at once and if it's a good product, and it's a high quality product they often dont need to buy another whenever or maybe not for a couple of years until in terms of the effort, and it sounds like you're not spending much money to acquire them. But in terms of how much money you can make per customer, it can be limited in hardware and also obviously sometimes not defensible. Where if you do well, you get competitors. So how do you think about how you build value over many years with your customers?
Yeah, that's a great question. So we actually see a lifetime value of $185 within the first 12 to 14 months, we're profitable on the first purchase. And we also see that there are repeat purchases on average, 52% of our customers have already shopped with us more than once, and they shop on average three times a year.
So I think it's about offering that varied products that so that, yes, you buy the Palmer ring as a piece of jewelry in the same way you'd buy multiple pieces of jewelry, but then you also buy lubricant and vibrator use at home and maybe you're curious about King so you buy some products in that category as well.
So why don't you running faster
Why aren't we running faster?
Oh it's seems like an uncharted will come into new growing your revenue very nicely. But you have eight people, you're not spending money and marketing. Why not? Why not be more aggressive?
Well, we are trying to tear down hundreds of years of shame and stigma, which is he and we are
but you need to and I think it's an important
but is it worth amplifying your message to help overcome exactly what you described?
Absolutely. And Facebook and Instagram currently prohibit us from advertising on their platforms, despite the fact that biography brands and the knockoff generics are allowed. So there are very much institutional barriers stripe we can't use as a payment processor insurance companies will shut us down. And so there are very big barriers but we've always found a way to overcome those time and time again, because this is a mission that must be achieved for not just for us, but for all women everywhere.
What are some of the special things that you've done or you plan to do to build community
content has by far been the biggest customer acquisition channel for us, 89% of millennials, Google their sexual health and wellness questions. And so we focus on long tail SEO, how do we capture those questions that these women are searching and then convert them into customers? So whether it's our Instagram channel or email, we've really high engagement. And I think that there will always be a place especially in an age in which sex ed porn has become the de facto sex ed. And so
there is a very big need for a brand to emerge that is fact driven based in science and, you know, really supporting women as they're trying to just find this information
to think about tying those themes and that information to your product portfolio and what are the ways in which it can show up in your products?
Well, we definitely use customer data to inform everything that we do. We sold over 1000 different products for three years before we went to market with our own and we just believe that unbounded, the foundational product set and should be a household brand name in the same way Trojan or you know any health or beauty brand would be so I don't know if that answers the question but
well, it's just thinking. So if like part of what people are interested I mean part of people are health and wellness. How are these products good for me? Do you put them in that kind of a context or people concerned about the materials that are being used and the products How can you incorporate that in like, what are the things that are really important that like, you can create conversations around or you're engaging conversations around that the products can then also support
absolutely quickly. Okay, absolutely FEM tech, we've seen this trend across the board. We do a lot of content that's focused on medical grade silicone medical grade product quality with both our vibrators and our lubricants and really trying to educate the consumer tampons lead the way and I think we're following in right behind.
All right, give it up for unbound
Our next startup is wheeling a large device onto the stage. Let's wait until this on stage and I'll introduce them
building mystery. Right? Good
All right, let's.
Alright, so the next startup is CB therapeutics presenting for CB therapeutics, or Sher Ali Butt and Jacob Vogan.
Bud Mary Jane weed chronic negative terms associated with crime and degeneracy, all slang for cannabis
THC CBD cannabinoids you may be less familiar with these terms that described the individual compounds found in cannabis shown to have positive medical benefits.
Hospitals at UCLA and UCSF have demonstrated that cannabinoids mimic compounds already found in the human body.
Today we're experiencing a shift in public opinion regarding cannabis. Why? Well aside from recreational uses cannabinoids have been shown to be beneficial for a suite of medical ailments.
The rise of legalization globally means reduce crime, greater medical applications and tax benefits for social programs.
Can I buy products already exist in the market today. However, they're riddled with quality and supply chain issues such as contamination, inconsistent batches, and long production times. Aside from CBD and THC there exists 120 other rare cannabinoids in the plant that are less than 1% in concentration
therefore these rare cannabinoids are hundreds of thousands of dollars per kilogram
introduce a CB therapeutics, a biotech company that produces pure cannabinoids in a bio synthetic contaminant free and easily scalable process. Our proprietary process extracts the genes from cannabis and expresses them in yeast. And once the yeast ferments similar to a process of brewing beer, we're able to harvest pure cannabinoids from it. Let me show you how this works. Move to the demo please.
So here we have the first stage of production where we have yeast and sugar mixed into a bioreactor. The bioreactor optimizes for yeast growth and after five days, now we're ready to harvest our use crop extraction of the cannabinoids is done with a simple non volatile technique followed by high performance liquid chromatography purification resulting in pure cannabinoids moved to the PowerPoint please
a groundbreaking process allows us to unlock unique rare cannabinoids with unique properties reduce the cost of production by 10 x reduce the production time to only five days, all while delivering a pure product.
At CB therapeutics. We're unlocking new therapies for pain, anxiety, cancer, and more eliminating the need for dangerous drugs such as opiates, which killed over 35,000 people in the US alone last year.
We have indirect competitors. Companies that still harvest plants that have a high price points for their products usually riddled with contaminants. And they're limited to only two or three different types of cannabinoids we have some direct competitors companies that use some form of biosynthesis that have moderate price points and pure products. However, the us away from scaling up and manufacturing here in the California market, cb therapeutics produces a pure product at competitive prices. And we're going to be the first ones does manufacturing scale up here for California,
the US cannabinoids market was $8.2 billion last year. And California alone was 45% of it
in the future. We're looking to commercialize new products for the pain and anxiety markets, which have a market value combined of over $73 billion.
We filed a patent in 2016 and we're waiting decision in the next two months. We've also verified production of 15 different cannabinoids and I used at the Scripps Institute and other third party testing labs. And actually six weeks ago we acquired all the assets and production facility for a former yeast bioengineering company near San Diego, allowing us to be the first ones again to scale up and manufacturer can add nodes for the California market.
This is our product pure cabinet isolates. And in the short term we have already obtained lol over 250 million dollars for different types of isolates for customers in North America and the US that make different types of cannabis products. In the long run. We're looking to partner with different institutions like the UC system that want to do clinical trials on these rare cannabinoids, thereby allowing FDA approval on some of these compounds.
Our team has deep domain expertise in synthetic biology and cannabis science. I was lab director at steep hill, the largest cannabis testing lab in the world and also worked at Novartis commercializing drugs with the FDA Jacob as a PhD in bioengineering from UC Berkeley and has over 16 published papers on the space
We have a team of experts in bioengineering in analytical chemistry, and bioinformatics on our team.
cb therapeutics is changing the face of the cannabis industry providing rare cannabinoids for the innovation of new healthcare, pharmaceutical products and affordability for consumers. Join firstname.lastname@example.org Thank you.
So you're making a number of claims in terms of safety and usage, what sort of regulatory environment that you guys are subject to.
So in terms of the regulatory environment we need a license from the state of California to be able to manufacture and sell this in terms of the safety profile what we make is not a synthetic drug so typically when you have something like Marinol that's a synthetic drug which is the example is you have your left hand and you have your right hand although they're similar. It is technically different. What we make is biosynthetic. We use the exact enzymes that the plant actually uses inside its own machinery to give you the exact same product. So they're virtually identical 100%
so you're not considered a drug per se.
We are I mean, in terms of the broad answer to the question is it is a drug but in California, you are allowed to sell cannabinoid products as long as you have approval from the state and you don't need FDA approval for that.
Are you worried about any sort of federal overreach or implications about your business
we're not really worried too much about any federal issues. The first reason being that California has its own system that's separate from the feds. The second reason being that technically if you have a product that's derived not from plants it's technically not a schedule one product in that way so there's the way that the DEA it looks at it is slightly different case in point. Marinol which is synthetic THC, which was FDA approved in 1985 is scheduled three however, the plant derived THC schedule one so we think that there's a big precedent for that
as far as your business model you first and foremost and ingredient technology.
Yeah so initially we are basically providing the raw materials we're not making any claims on the product we're not saying hey, it's going to cure cancer I think the idea is to sell it to other companies that already have a distribution and pipeline where you know, we sell them the raw material they infuse it into their products and then they distribute it
what are the next few years look like for you in terms of milestones in terms of like what do you need to do to be able to get it into the hands of the people who've given you lol eyes and then for for them to prove that the product works that you can actually after the pilot sales keep selling to them, what do you have to demonstrate and how much money is that going to take you so so right now in the next six months are very critical for us. We just acquired the facility six weeks ago and now we have the ability to actually start manufacturing before we do the manufacturing however we need to scale up the tech in that facility, secondly, in parallel, we're going to be applying for the California cannabis license.
So unless we actually have that license legally, we can't manufacture anything. So in the next six months, we hope to obtain the license the scale up. And that's when we're going to start manufacturing and then selling the product to these consumers
And so sorry, manufacturers who are technically our customers
so your customers are the people who make you know, chocolates that are infused with subsidy or things that your ultimate market
absolutely and then also pharmaceutical companies We've had a few phone calls by like different UC campuses that wanted to actually use our materials in their clinical trials so we're trying to figure out the legal hurdles where you know if they have funding from the government they have to get it from certain sources so we're trying to figure that out but different applications
so is legalization good or bad for you like if it became acceptable at a federal level there's actually attract more people producing think it's obvious to me that it's a good thing for you.
I think it's a good thing for society if it
has the separately
from a business standpoint, yeah, I think it would create more competitors for us the fact that it is federally illegal and not too many know about the fact that, you know, if you don't use plants, you actually have
better the way in terms of like the scheduling of the drugs and how the DEA and the government treats the product. So from that perspective, yes, it's it's a better thing for us as a business.
So what's the unique IP here is did the process you guys come up with sexual regenerate the drug or is it sort of the devices is it
so we've basically domesticated that cannabis enzymes and made them work very well in yeast. So our secret sauce is how we engineer the enzymes and how we express them in the east and our extraction process from the yeast in the director that was just here
let's manufacturing know how do you cook because you can't patent
for the we have a proprietary extraction protocol for the cannabinoids from the cyst to protect our method as we go forward.
So the IP just to make it clear is on different sequences of enzymes. It's on actual other things that we've done to the yeast. So. So typically, if you look at it in the sense of we're trying to optimize the flow through of all the sugar that we put in. So we're cutting off other pathways that are non essential. All those things actually are patentable and patent pending.
We can't actually patent the compounds themselves, but we can patent the process to make them and then post processing as well. We can patent
what keeps you up at night. What worries you the most about your business?
Well, up until recently, it was a, you know, funding was was one of the big things that we were thinking about. And also, you know, biotech is a very expensive, you know, r&d play. So, we realized that it's more expensive than versus, you know, an IT company where you have a laptop to phones and you raise your role,
I think now moving forward. The the thing that worries me is you know, we, we think scale up is gonna go find we have people that have done scaling up of these types of processes before we're helping us out. We have the facility, but there may be unknown unknowns that pop up in anything when you do something with science. So we're we're sort of bracing for Whatever may happen in the future. But we definitely think that we'll be able to get it done the next six to seven months
or launch drug companies are going to try and copy you or work with you,
I think we would be a good target acquisition target, potentially,
we they may have actually tried to do it themselves. But again, I see it in the way of you know, it's about one is the IP and the science part of it. The other side is the business side of it. So California is a very important market for us. Why because it's 45% of the US market. Secondly, I have almost 10 years of experience here. I used to test product for all the big brands. So we have those relationships, we can capture that easier than, for example, some other company that's not in California.
So even if it was a very big pharma company, they would first have to establish a pharmaceutical manufacturing plant locally because you cannot import cannabinoids into the state anymore. Even hemp based CBD has been bad since the last month. So from that perspective, I think anybody was going to do it, they're not going to be able to beat us, and we have the headstart here,
you talk a little bit about and you refer to this, the capital clients to kind of scale up the manufacturing. But then for you to really to make real money, one of your partners has to probably have a hit product, right? And so and how far out we think that's going to be and how do you make the cash cycles work in terms of how much you have to raise to be able to supply all these different potential partners and wait for someone to have a hit product.
So, you know, the lie is that we have are from some very big companies. One of them, for example, is on to stock exchanges in Canada, they're in eight different countries. They made about 30 million in revenue last year there they're going to more than double the amount of revenue that they're going to have this year. That's one
we have another company that just raised $40 million and they're about to introduce a line of cosmetics with CBD in Europe and North America. So from that perspective, I think it's easier for us as a company not to go directly to market where we have to brand. Now we have to worry about distribution, all these other things they come in, we give them the product as is and then they take care of that. But absolutely, I think in the future, we want to develop our own products as things move forward, which we would need a big around for.
So do you get your own branding on their products?
No, it would just be their their brand.
So there's no Intel Inside equivalent or you know Splenda inside a Diet Coke or whatever that you can get, so that you can establish some brand of your own
we haven't had that conversation yet. And we might actually go back and see if that would be a possibility. These these companies actually they were they're looking more into potentially acquiring us as well. So there's a lot of unknowns here until we get the product and their hands
so can you clarify what the yellow eyes are for? Is it like for five years of production of a given you know, what word would do that? Wouldn't those are represent
Sure. So the yellow is is just for one year, it's almost 300 billion and otherwise the idea behind the other why was for us to just show that there's huge demand for this product. You know, for companies that make cannabinoids on such a big scale, but 3040 million in revenue, they have to go to 40 or 50 different farms to scale, you know, to get all the materials they need for their products. It's a big headache for them. So income somebody like us who can make it cheaper, higher quality, and we're a one stop shop where they don't have to go to 30 other farms, it makes their life a lot easier as well.
What does your operation look like to be able to deliver on that order.
So we will be able to deliver on the 300 million order especially, I mean, that's just too big for us with the facility that we have, we're looking at roughly $30 million of that 300 million that will actually be able to deliver Okay, we will we are thinking of raising around in a bit and like maybe six months left to start manufacturing get the first revenue in just to expand the facility and or, you know, have another second facility up
and I'm just to kind of put some context in it to deliver on 30. What is the facility look like, and what is it
those are the facility is 6000 square feet of a biopharmaceutical manufacturing pilot plant it's probably one of the company that we got it from actually in liquidation. They went bankrupt they had raised $85 million previously so they actually put you know it's almost you know seven to $10 million into that facility that we got for very cheap it's basically a bunch of bio reactors that look like for mentors for lack of a better word and there's other sides to it which have you know testing equipment things like that in terms of what we actually make its that Islip product 30 million is roughly about 4000 kilograms of this product. So that's how you can divide into how much we're going to be making in that one year,
you know, is brew beer if that doesn't work.
And then the you mentioned that you have 15 separate cannabinoids that you can extract via this method to get the isolates rather than plant direct. Yes. Have you been able to assign a value to all of those yet
so that's a great question. And the reason being that these astronauts are different prices so CBD and THC for example, wholesale for $10,000 a kilogram in the market these rare isolates are doing anywhere from 75,000 to 250 k per kilogram for us we're able to produce all of these compounds for the same price which is amazing
all right let's hear it one more time for CB therapeutic
we have one more finalist present that finalist is Mira presenting for Mira or Sylvia Kang and Zheng Yang Come on out
women's health is complicated well of six couples cc fertility issue was free pregnant we worry about miscarriage at menopause hormone imbalances cause extreme discomfort
all these complications are heavily rooted in hormone levels but tracking hormone is hard.
Introducing mirror the first FDA See registered comprehensive women's health monitoring platform mirror track cycles measures ovarian reserve predicts ovulation measures fetal health tracks your menopause progress and hormone imbalances at home
with the palm size. The device mirror has reached 99% of accuracy in 400 patient clinical trials plus automatic data interpretation, personalized AI learning and the Thomas
let's switch to demo.
Simply pee on this test what just as usual,
didn't reverse the cap of this year in practice test want so there is no contamination.
Insert the want into the mirror analyzer. The analyzer is reading the hormone concentration and the number and the data is transferred to the mirror app wirelessly
if a woman is trying to conceive so app charts her cycle Patreon she can share her house status with her doctor or partner
so I learned nurse her personal variability in the lifestyle and tells her exactly when to try for a baby
the mirror blog as you kiss her own fertility and health related behaviors
and then she consults with a doctor receives in seeking answers randomly online
if a woman is already pregnant mirror pregnancy test what tells her fetal status such as sign the Miss courage
and the mirror ovarian reserve the test one tells her when to plan for baby or monitors her menopause progress.
So as you can see as a mirror analyzer screen right now, mira measures her actual hormone concentration instead of a positive or negative estimation.
Back to the presentation. Please.
With 18 IPS, mira has high accuracy, but low cost. We're smart with the AI at decision making easy to use and portable. When compared with traditional lab equipments.
Mirra uses email versus technology which is the golden standard use in the hospital so it's just like shrinking the map equipment into a pumps st wise into the comfort of your home.
So competition is limited for fertility. So our relation prediction kids failed to adapt to your personal variability leading to Mr. Fertility peaks
and the for pregnancy, there is no commercially available first trimester fetal monitor to be used at home
and the for ovarian reserve and the menopause. We will have to go through lab testing that is inconvenient, expensive, and it doesn't give you continuous data. So mirror is the only home diagnostic testing platform that covers every stage of women's health.
So women's health and the Chronicle disease monitoring market is $24 billion
in the past three years. We have achieved the FDA FTC registration we build our own 11,000 square feet of manufacturing facility which is ISO certified
and in the past 45 days, we have acquired more than 2500s of sign up users with larger than 300% of bus over mass gross rate.
We're shipping mirror study October in the US and a launching in China and the Europe by early 2019
mirror is going directly to consumer as a price of $199 with the app subscription and the telemedicine service. We're working with medical community on research, edit distribution, we will be on insurance and the retail and as a big data we collected will have huge value for targeted as research and insurance industry's
mirrors. Future product lines include Chronicle disease testing, such as Cyrus hormone monitoring, and the kidney house monitoring as well as general waters such as weight loss monitoring at home by the same analyzer, but different has to want
so my name is Sylvia. I have MBA from Cornell, and a master's in biomedical engineering from Columbia University. I served as a business director in the fortune 500 life science company running in $100 million of global p&l.
Our investors include the co founder of Alibaba Group, and our advisors include the director of ob gyn in from a Kaiser Permanente.
So understand that your hormones and the reserve mirror today at a miracle. com with our special promotion. Thank you.
Can you clarify what goes into the package $499 it's the device and then the number of tests and what's the margin that you have on those?
Sure. So the $199 is the price for the device and we're currently running a promotion right now which is can get they can get 10 test plans for free. And as those tests ones will be about two and a half dollars each. And if they're testing fertility, they only need 10 once per month, because we have a smart algorithm to tell them exactly what they need to test it. So they wouldn't be wasting money. And the in terms of margin, we have really, really healthy margin on both as a device in the test was, and especially task was because we manufacture of ourselves.
We talk about all the other applications. Yes, yeah. Where are you in the process of kind of having those ready for market and when I do one of those tests, does it do you imagine giving insight and information on kind of what are my options to address those conditions as well?
Sure. So we're we're in the progress of developed actually go into the regulation for the pregnancy test. Okay, so that will be our next one. So the pregnancy is not only confirming pregnancy but tells you your fetal status. So like if you have any sign of his courage, so you should go to see a doctor. so on. So we plan to launch that in early 2019. So we're going through FDA right now. And we also plan to launch the menopause, which is ovarian reserve CMC really soon, because basically, you know, all our fundamental setups, ready devices, riding manufacturing plant ride, a team is ready or when you do it's just, you know, keep our end. So future task was innocent for regulation. So we plan to launch about one test every nine months in the future
on the fetal health monitoring. Can you do that with urine alone? Don't you need blood?
Yes. So there is a correlation between the hormone concentration or they may in blood and washes Yuri and the hormone will be measuring accuracy eg and they have a metabolism product in the urine. So that's actually pretty standard practice right now.
How much better is that than a non invasive prenatal testing that's available today
so Rama comments about the correlation since there's the biomarkers HTTP Mr. Hurts is a high correlation in urine and the implied in the we also using another biomarkers internal reference to improve the correlation. So
it's a it's it should be
equivalent to using the lab pastor in the hospital but certainly we can share the data and the doctors can make the final decision there
It seems like at some point you plan to maybe even potentially sell to men because if you go into these other areas, then it would work for a male
and I think if you have a man is detected with the hormone that's pregnant for women you can also detect testicular cancer Have you looked into that
yes so that's actually in our you know future product night so what we're really think its like, we start from, you know, women's house. And eventually we'll be expanding to the family house platform. So since like a, you know, really regularly occurring for men just like this information and also, you know, the couple others I was mentioning a slice like a chronicle disease like people unit facing like a side road very, very common right now for people you know, older than 40 years old and the kidney function as well. So we will, our goal is eventually building a family testing platform. So the only by one day was fairly will be pine
tree. My next question is it multi user?
Exactly. Yeah, we will be able to handle that
so easy to handle itself toward multi users.
So if you're not using the product to try and get pregnant or when you're pregnant, what sort of frequency or use age do you think about is it like once a month is it like once a quarter that you would test you know your urine?
Sure. So for fertility is he only need to test about 10 times per month and this is there's a smart algorithm to tell them when to test so that's more frequent was you're closer to Revelation last frequently are far away from Revelation. So that's different than many, you know, oscillation prediction case, you can buy over the counter. So they're like kind of wasting money. You know, you're testing every day. And for pregnancy, we tracked the first trimester miscarriage. So the hormone is to be doubled every 48 hours. So we recommend you to test the once every other days or three days. And the app will pop your curve to save your following the standard curve or you have any problem you should see a doctor early
about the middle post test or the general sort of wellness, this
Sure. So the menopause class will be a little bit less often because the ovarian reserve function is only related to the baseline of the hormone called FSH. So usually you will need to test your baseline which will be about like, you know, four or five times per month. But since people are you know, they're in their special stage, like, you know, menopause, you know, things are changing so you want to test for multiple months. So it's more like a scenes a trend over the month rather than, you know, seeing the trend, you know, for today or tomorrow? Or Silla.
How do you imagine the dressing what I imagine being my want after this, so I do the test, I get a result back, whether it's a test of menopause, or some general health, and I get the results that then what do I do? Do I need to run to my doctor? Are you going to help me understand these results and start to take action?
That's a really good question. That's exactly we're building our business model is actually going so what we will do our mostly Tuesdays. So number one is we have an AI and we're building a lot of contents right now. So we will be able to tell the user you know, what those data mean and what we should be, could be doing, how do they understand about that? And from there, it's actually going to form a very conversational, you know, community re engage the conversation and at the same time in our community, we're separating them in into different life stage because we're the only ones that can measure you know, from tracking psycho to menopause
and it is will be very targeted, pushing them the you know, the different services. So, for example, there will be people really try so hard and cannot get pregnant there definitely will be information about IBM, you know, given to them and if they have, you know, hormone imbalances during menopause, what kind of, you know, dietary pattern or accesses pattern where hormone treatment should be looking at and at which he should be thinking about freezing ache so everyone slightly different but since we are able to tell exactly is a fundamental hormone level from them so we are able to, you know, giving them this really focusing targeted inflammation and a service So, that's how we actually going to not only just the hardware company or hardware starting companies are actually going into the more I think engage the community like a platform.
Do you think the bigger market here is getting pregnant fertility or pregnancy of wins?
I think actually Bowser
pretty Pardon? Yeah, those are from the planning.
Yeah, yeah, those are pretty big the fertility stuff a huge concern. So
right now you know there are so many people trying to get pregnant especially like you know, like friends like my friends who had at West education just like my background and they tend to delete your pregnancy because they don't have any education no information so I don't know if I'm should try for babies is here or I can focus on this company for tumor years in later.
So when we realize it is so late, so we just suddenly went from avoid pregnancy become infertility. So I think the fertility market staffing huge if you can give the user really, really meaningful data and help them to understand what they could do with this data. And also the pregnancy mark is probably the second huge market because people you know, finally got pregnant they don't want to lose the baby. This is such a painful experience, you know, but in the first trimester that's where the highest occurring miscarriage rate is right now. And there's no way you can track they have to go to a hospital draw the blood because it cannot do that every day. So you really found all these two ladies. So I think those two markets are probably the biggest thing women's house.
Now in the past decade, there have been a lot of free apps and fertility tracking things on your phone that don't come with hardware. And so obviously the benefit is it's really cheap, it may not be as accurate but do you feel it what's the risk that this is going to be you're going to build this fantastic product but it's actually going to be hard to change consumer behavior to get them to buy it and so what do you what are you thinking about in terms of how you build the brand and how you get adoption when people have aren't using it yet
sure. So we're thinking about from you know multiple approaches so the first one is we are doing a lot of content influencer marketing so we're really, really close to our users in the consumers. And we said before we're not only just you know, position our brand as always we sell your house where we don't really know your we care about you, we provide all the service for you. It's like a complete solution. So we're building our brand around, you know, we're building a community and the lifestyle around this brand. That's one thing. And the second thing is we're using a lot of, you know, kale our right now because our product is the closest technology to the hospital testing.
So by this technology itself, it is much easier for the doctor to adopt and to, you know, seek about application to collaborate with us. So, currently, our telemedicine platform already has the, you know, doctor in the back end So, there you know, entering our customers questions and also where, you know, working with the since like the, you know, center like IBM and try to build this into your workflow because in lot of procedures, so, you will have to know the, you know, how the cycle pattern looks like and such as, you know, putting the fertilized egg back into the body, you need to know where the cycle statuses at. So,
this kind of device rebuilding how
And in terms of the app, so I i think that it's more like a complimentary positioning then, you know, we're copying for the, for the, you know, for same user base. So these apps has a great community. So we're actually very open for collaboration or talking in collaboration with some top fertility apps here. So we, you know, the apps are looking for some hardware as well so we can share the user base but you know, the end is there's a lot of, you know, synergies we can we can do together.
All right, give it up for Mira.
That means it is now time for our judges to follow me backstage and to choose a winner. But before we do that, let's have one final round of applause for our judges.