March 9 2017 START Event - Information for Applicants

Welcome to the

2017 START Program

Information Session

AgendaWelcome - Dr. Ken Mahmud, Executive Vice President, Triton Systems

Introduction to START - Jerry Bird, President, MassVentures

START Program Process - John Fitzpatrick, START Program Manager

How to Fail to Win – Robert Weiss, START Program Director

START Winners & Judges/Reviewers: Basics of a successful application

Elaine Trudell, Former President, Metamagnetics

Mark W. Smithers, CTO, Boston Engineering Corporation

Ted Acworth, Founder & CEO, ARTAIC

Q & A session with presenters – moderated by Dr. Mahmud

2

START Program

Presented by Jerry Bird

Winner of the SBA’s2015 Tibbetts Award

• Driving innovation and creating new jobs through the SBIR/STTR Program

• Moving ideas from the lab to the product place

• Adding jobs and advancing our technological potential

4

• Helping our country compete globally

Massachusetts is an SBIR Hub

5

Massachusetts has long been a national leader in SBIR

grants and dollars received

• 2nd in the nation in dollars received

• 1st in dollars received per capita

• $3.8 billion in commercial sales of SBIR technologies

generated to date

0.0%

10.0%

20.0%

2007 2008 2009 2010 2011 2012 2013 2014 2015

Mass SBIR $ as % of U.S.

% of US

Research to Business:

• SBIR / STTR focuses on research

• START focuses on transforming that research into successful products and companies:

– Commercialization process

– Flexibility in use of funds

• Ease of application process

6

START Program Details

7

3 Stages over 3 years

Stage 1: Ten companies receive $100,000 each

Stage 2: Five companies receive $200,000 each

Stage 3: Two companies receive $500,000 investment each

$1 Million$1 Million$1 Million$1 Million

$1 Million $1 Million $1 Million

$1 Million $1 Million

2012 2013 2014 2015

Stage 3

Stage 2

Stage 1

Impact

• The 36 companies employ over 700 in Mass

– Job growth on START funded project :

• Year 1: 99 new employees, 180% increase

• Year 2 – 51 more new employees

– Leverage:

• Companies have raised $138 million in new loans, grants and equity since receiving START funds

– Growth

• The year after START grant revenues in aggregate increased $25 million (37%)

8

START ProgramProcess

Presented by John Fitzpatrick

Selection Process – Stage 1Streamlined and User-friendly process

• A two-page executive summary and Quad Chart

• 80 reviewers evaluate the plans

• Top 15 – 20 present to panel of judges

– 10 Minute presentation, 5 minute Q&A

• 10 are selected for $100k grant subject to due diligence and contract

10

Qualified Reviewers

11

• 110 experts in their fields

• Evenly divided among:

– Scientists

– Engineers

– Managers of technology companies

– Investors

• Each proposal reviewed by minimum of 7 individuals

2017 Key Dates

• Announcement / RFP– Stage I: March 1– Stage II: March 15– Stage III: April 26

• Applications Due:– Stage I: April 3– Stage II: April 19 – Stage III: May 16

• Presentations and tentative decision– Stage I: May 23– Stage II: May 3– Stage III: June 2

12

STAGE I PROPOSAL: HOW TO FAIL TO WIN

Presented by Bob Weiss

14

1. FAIL TO EXPLICITLY

FOLLOW INSTRUCTIONS

2. LEAVE OUT AN

ENTIRE SECTION

WITHOUT EXPLANATION

15

3. DEVOTE MOST OF

THE SPACE TO

TECHNICAL DESCRIPTION

16

4. FAIL TO RECOGNIZE

THE AUDIENCE:

NON-SCIENTISTS

17

5. FAIL TO INCLUDE

SPECIFIC

MARKET DATA

18

6. FAIL TO RECOGNIZE

COMPETITIVE PRODUCTS OR SERVICES

19

7. BE UNREALISTIC

ABOUT % OF

MARKET ACCESSIBLE

20

8. BE UNREALISTIC

ABOUT TIME TO

GET TO MARKET

21

9. FAIL TO DESCRIBE

YOUR PATH TO

THE MARKET

22

10. FAIL TO DESCRIBE

HOW YOU WILL RAISE

THE CAPITAL

23

LASTLY, THINK LIKE A REVIEWER WITH 8

PROPOSALS, LIMITED TIME AND ONLY GENERAL

KNOWLEDGE

24

BEST OF LUCK !

25

START Winners & Judges/Reviewers: Basics of a successful application

– Elaine Trudell, Former President, Metamagnetics

– Mark W. Smithers, CTO, Boston Engineering Corporation

– Ted Acworth, Founder & CEO, ARTAIC

Elaine Trudell, former President of Metamagnetics

Was awarded multiple grants: two Stage I, two Stage II, and one Stage III award

• Used the funding to:

– hire critically-needed sales and technical staff

– purchase market reports

– develop improved website and sales/marketing materials

– contract a CFO

• Advice for your pitch:

– Don’t focus on the technical aspects of your product

– Don’t have very many slides

– Make sure you have all the required content

27

Mark SmithersCTO (Co-Founder)781-314-0714msmithers@boston-engineering.com

Prepared for:

START Program

March 9, 2017

Company Confidential© 2014 Boston Engineering Corporation 29

Perspective from a Recipient, a Reviewer, and a Judge

What you should consider

Important Considerations and Goals

When you apply …

© 2015 Boston Engineering Corporation Company Confidential 30

When you present …

Treat the template as a prescriptive structure for response

Technology is important … The business case is imperative

Ensure lead person is a good business presenter

Practice, practice, practice … then practice again with timer

When you execute …

Use the majority of the money to know your customer

Sales & Marketing is good … Fact-to-face demos are better

Use your funding to get more grant funding ... more on this

Quality is both the content and the “packaging”

Company Confidential© 2014 Boston Engineering Corporation 31

Support from the Commonwealth of Massachusetts

Grant Support in the Commonwealth (Services)

50% match ($12k)

for training from

MassMEP

resource

© 2015 Boston Engineering Corporation Company Confidential 32

ISO 13485

and 9001

Certified by 3rd

party agency

2012 2013 2016

Workforce Training

(WFT) Grant

Comprehensive

$156k training

initiative with

50% match by

company

Medical Device

Development

Services

Segment

Grows

The Leaders of the

Commonwealth want you to

grow a healthy business

Commonwealth STEP (State Trade and Export Promotion) Grant

Towed Maritime Depressors (V-WingTM)V-Wing

Towed

Antenna

BIOSSwimmerTM

© 2015 Boston Engineering Corporation Company Confidential 33

$8,500 Grant to Support Exporting

With 25% to 40% Match Requirement

Boston Engineering attended Oceanology in the UK in March 2016

http://www.mass.gov/export/step/

Company Confidential© 2014 Boston Engineering Corporation 34

Applying Grants

Boston Engineering Selected as a Manufacturing Innovation Center

(MIC) to Help other Small Companies

Manufacturing Innovation Center Example

© 2015 Boston Engineering

CorporationCOMPANY CONFIDENTIAL

35

Transforming a wiring “mess” to a professional, high quality, highly

reliable product design

Impact Expected:

1. 80% reduction in assembly time

2. 20% reduction on material cost

3. Significant increase in quality

4. Significant increase in reliability

Other Projects to Date

Optimizing assembly process for Mosaic panels

© 2015 Boston Engineering Corporation Company Confidential 36

DFM and Value Engineering (Lower

Cost)

Latest Defense Specific Grant from OEA

(Federal)

Cost reduction of a medical disposable (5X less achieved)

DFM/Intrinsic safety improvements for methane recovery

DFM for hand help optical imaging ($25k scope in proposal)

Similar Support from Boston Engineering

© 2015 Boston Engineering Corporation Company Confidential 37

Since 2008 – Design for Manufacturing (DFM) and Value Engineering Supplier

Recent Achievement – Completed FDA 510(k) Approval for Medical Device and six patents

Since 2015 – Design for Manufacturing (DFM), Value Engineering and Commercialization Assistance Supplier

Coming Soon … Discretionary Technical Assistance (DTA) … Helping SBIR-Funded Companies with DFM

Company Confidential© 2014 Boston Engineering Corporation 38

Leveraging Grants

(Combining State and Federal Interests)

START Program … Grant progression

© 2015 Boston Engineering Corporation Company Confidential 39

ONR

SBIR

2008

GhostSwimmer

BIOSwimmer

DHS

SBIR

2009

Phase

I

2013

Phase II

Phase II

2014

Manufacturing

Matching Funding

$100k $200k

20152014Phase

II

Phase

III

$500k

$150k$15k

2016

$10kDefense Diversification

Matching Funding

50%

Match

Significant Business

Progress .. Demos!!!

Commercialization and

Manufacturing Setup

Assistance

2016

$15k

$612kSeaport Economic

Council

2017MORE

State and

Federal

First pass (year 1) not

selected. Engineers

wrote the application

with heavy dose of

technology

Boston Engineering Corporation: 300 Bear Hill Road, Waltham, MA 02451www.boston-engineering.com

Thank You.

Mark Smithers, CTO 781-314-0714 msmithers@boston-engineering.com

Ted AcworthFounder & CEO

42

Design/ Rendering

43

Robotic Manufacturing - Made in USA- Lead time 2-4 weeks

44

Installed Image

Clinic

Patient

Pharmacy