Solfice Research Pitch Deck

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Information about Solfice Research Pitch Deck
Business & Mgmt

Published on March 7, 2014

Author: SravanPuttagunta1

Source: slideshare.net

Description

Solfice Research, Inc. is a Berkeley-based big data analytics and computer vision company in the market segments of transportation and physical infrastructure. We have instrumented locomotives with hardware to extrapolate strategic sensor and location information enabling reduction in fuel consumption, collision avoidance, network flow optimization, and other SaaS products.

Inc. Internet of Things for Freight Trains 1741 8th St., Berkeley, CA 94710 newbiz@solfice.com | 916 316-8314 | Solfice.com

Confidential Company Overview ● Berkeley, CA based ● Team of 5 with office ● Developing on-board environment sensing and communication system ● Internet of Things on freight trains ● Initial addressable market of $1.5b in U.S. ● Raising $500k seed round with current investor interest for $250k

Confidential Testimonials & Awards 500 Startups Conference Presenter - Aug. 2013 500 Startups Acceptee - Sept. 2013 SF Pitchfest 1st Place - Dec. 2013 Sofice, a Verizon Innovation Program Company “Solfice has a novel approach to implementing... train control. This is of interest to Norfolk Southern” - Principal Member of the Interoperable Train Control Committee, N.S. “BNSF is actively pursuing technologies to help us manage our transportation system more safely and economically. I believe the Solfice technology could help us meet this objective” - General Director - Technical Research and Development, BNSF

Confidential The Problem: Train Accidents Due to Human Error

Confidential Metrolink Collision, Chatsworth, CA 2008 >$200 million in settlements, >$12 million in damages, 25 deaths, 135 injuries PHONE HIS CELL USING DRIVER D LIGHT RAN RE

Confidential 2,129 Collisions

Confidential MTA Derailment in NYC, 2013 4 deaths, 73 injuries, potentially >$100 million in settlements ASLEEP VER FELL DRI PH ZONE IN 30 M 82 MPH

Confidential 7,278 Derailments

Confidential The Problems: Human Error and Long Stopping Distance Obstruction Detection Range Obstruction Train Train Stopping Range Collision Patent Pending

Confidential The Future: Solfice Robotic Train Escort Obstruction Detection Range Wireless Communication Robotic Scout Obstruction Train Train Stopping Range Scout Stopping Range Patent Pending

Confidential Product Evolution Plan Surveying and Mapping Dataset auditing, track inspection Vision based Train Control Robotic Train Escort Outdoor loco mounted vision apparatus Onboard Electronics Data processing Train Vision Cabin dashboard mounted vision apparatus 2-3 months to commercialize 4-5 months to commercialize 1.5 years to commercialize 2.5 years to commercialize

Confidential CURRENT PRODUCT: SOLFICE SMART DRIVER ASSISTANT Patent Pending

Confidential Four Key Elements for Train Control Track level positioning Remote braking interface Speed restrictions Monitoring track fatigue

Confidential Traditional Approach to Train Control Wayside Interface Units $50,000 X 3,000 ft Radio Antennas $100,000 X miles Onboard Sensors $100,000 X locomotive Total in USA $13,200,000,000

Confidential THE PRODUCT: SOLFICE TRAIN CONTROL Machine vision for track positioning & signal state, and dataset auditing Satellite and Cellular communication for speed restrictions and remote braking Patent Pending

Confidential

THE PRODUCT: SOLFICE MACHINE VISION Confidential Solfice tech allows computer to see the environment and make decisions Patent Pending

Confidential

Confidential Core Engineering Team Sravan Puttagunta CEO & Co-Founder Fabien Chraim CTO & Co-Founder Computer Vision and Marketing Specialist for railroad industry Wireless Sensor Network Researcher, Internet of Things Specialist M.S. in EECS @ UC Berkeley B.S. in Computer Engineering @ CSU Chico Ph.D. in EECS @ UC Berkeley M.S. in Civil Systems @ UC Berkeley B.S. in ECE @ American University of Beirut Raised $8m from August Capital, Mark Cuban, Richard Yoo

Confidential Core Business Team Jason Creadore COO & Co-Founder Anuj Gupta M.D. India Finance & Business Development Professional for multinationals and governments Industrialist Entrepreneur and Marketing Specialist for railroad industry B.S. in Finance @ Lehigh University BS & MS in Industrial Chemistry @ IIT Kharagpur KVPY scholar & research experience @UC Berkeley, IISC & GE. Raised $8m from August Capital, Mark Cuban, Richard Yoo

Confidential Advisors Dennis Morgart: General Director - Technical Research and Development, BNSF Tom Schnautz: AVP Research and Advanced Technology, Norfolk Southern Alan Polivka: Assistant Vice President Communications & Train Control, TTCI William Spurr: Retired President of Bombardier Transportation N.A. Purshottam Das Gupta: Retired Controller of Stores from Chittaranjan Locomotive Works (CLW) Pravin Pradhan: Head of Electrical at Research Designs & Standards Organisation (RDSO) Charlie Silver: Serial entreprenuer: 15 years developing, commercializing and marketing advanced instrumentation at Agilent Technologies and others

Confidential Ecosystem & Strategic Partnerships Standards & Regulatory Bodies Industrial Manufacturers Railroad Operators Telecom Providers

Confidential Market Opportunity By law, railroad operators must implement train control by 2016 Positive Train Control Market ● Large: U.S. railroad operators to spend $13.2b on PTC implementations and $0.88b per year for maintenance ● Growing: railroad hardware sales are growing at 7% yoy and emerging markets like India taking early steps to implement PTC ● Under-Penetrated: The majority railroad operators do not have a PTC system in place

Confidential Financials 2013 2014E 2015E 2016E 80,000 564,000 5,542,500 52,615,000 Cost of Goods Sold - 199,500 1,340,000 11,020,000 Operating Expense 80,000 551,000 2,342,750 17,179,438 - -185,000 1,849,750 17,179,438 Sales Operating Income (pretax)

Go To Market Strategy: Uniform Across All Products Solfice R&D expenses revenue Customer Demos Confidential

Confidential Capital Raise ● Invested $20k between co-founders ● Seeking $500k in convertible notes to build 5 train vision prototypes ● Soft circle investors totaling $250k ● 20% discount, $10m cap ● Current Funding Pipeline ○ ○ ○ Prepaid Purchase Orders from Class I Railroads ($50k - $150k) National Science Foundation SBIR Phase I Proposal ($150k) IIT Research Fund for Indian Railways ($150k+ $1 million in orders) ● Use of Funds ■ ■ ■ $300k towards 5 train vision systems $100k towards sales and marketing $100k towards software development and infrastructure

Confidential Future Raise Seed Round $500k Series A $10m Q4 2014 Exit 1 Cash Flow Positive (Q3 2014) Series B $20m Q1 2016 Exit 2 Exit 3 Series C $40m Q1 2017 Exit 4 Exit 5: Potential Acquirers

Confidential Inc. Internet of Things for Freight Trains ● Learn more about Solfice: ● Website: http://solfice.com ● AngelList: http://angel.co/solfice ● Twitter: http://twitter.com/SolficeCorp ● Address: 1741 8th St., Berkeley, CA 94710 ● Main Contact: Sravan Puttagunta, CEO ● Main Contact Phone: (916) 316-8314 1741 8th St., Berkeley, CA 94710 | newbiz@solfice.com | 916 316-8314 | Solfice.com

Confidential Appendix

Confidential Comparable Exits Company / Seller Revenue Multiple 5.0x EBITDA Multiple N.A Valuation/ Mkt. Cap. at IPO $500mm est. IPO by Lytx CEO on $100mm revenue1 3.9x 17.3x on $150mm2 15.7x on $127mm revenues Provider of software for fleet management and related control systems $493mm IPO Provider of software for fleet management and related control systems $772MM IPO Provider of smart grid networking infrastructure and services $3,200mm Manufacturer of remote control systems for consumer products on $31.4mm 1 Stub period 3.9x 96x on $197mm revenues on $2.4mm revenues 11.6x N.A. on $275mm est. revenue 1) For 2012; 2) Stub period Provider of truck driver risk management solutions $585mm IPO on $33.9mm 3.9x Company Description purchase by Google

Confidential Go to Market Freight Sales Channels Sales Channels Solfice Sales Team 3rd Party Sales Solfice Research, Inc Systems Integrators FRA Contracts Operators

Confidential Solfice Competitive Advantages ● Remote sensing equipment moves with the train ● Cost effective way to analyze track network ● Computation & CPU cycles are cheap, hardware is expensive ● Safer and more reliable since trains arrives for maintenance ● Trains are made intelligent, human fatigue is addressed

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