Pesticide.ID is the Yelp of food safety

Mentor Engagements

Total: 6

Customer Interviews

Total: 105

Alex Luce Mahara Inglis Jenn Kimbal Anthony Baldor

An exciting up and down game

for graduate students!

LAUNCHPADS

Our Journey – Table of Contents

Consumers

Retailers

“Manufacturing” and Distribution

OrganicCertifiers

New Parents

START FINISH

Phase I: Consumers

Week: 1-2 Interviews: 30 Target Interviews:

Health conscious Worried well

Phase summary

Value propCustomers want peace of mind regarding food quality

Customer segmentsWhole foodies

“Yes- consumers need more transparency and deserve to know what's in their food”

“Yes.. I’d definitely be interested in something like that”

Some good….

“No - I’d want the store to do it”

“No, - I trust the labels”

Some bad….Customers want an affordable way to test their food for contaminants

• The existing system is good enough:• Consumers trust grocers• grocers trust wholesale / regional distribution

• Someone else’s problem• People want quality, not “purity”

4

Grocer

Farmer’s Market

Regional Distribution

Produce Wholesaler

Farm

SMB Food Business

Consumer

Phase 2: Retailers

Week: 3 Interviews: 14 Destination:

Grocery Stores Target Interviews:

Produce buyers Produce section

managers

Phase summary

Phase 3: Up the food chain – “Tulare or bust”

Week: 4-6 Interviews: 30+ Destination:

World Ag Expo, Tulare, CA

Target Interviews: Farmers Distributors Suppliers Pesticide Mfgrs Organic Certs

Phase summary

Existing test costs

New Pesticide ID test costs

0 200 400 600 800

Test KitLabor

Cost (USD)

Pesticide ID is significantly cheaper than existing testsPesticide ID is significantly cheaper than existing tests

BUT,1) small TAM 2) need to replace incumbent technology3) pesticide mfc’s do their own internal testing

BUT,1) small TAM 2) need to replace incumbent technology3) pesticide mfc’s do their own internal testing

USDA

Pesticide Residue Testing Workflow

Sets rules, guidance. Accredits organizations to provide certification

CCOP/FSC/OMRI

Organic Certifier

OMEC

Independent Lab authorized by USDA to perform tests.

Authorization

Food Sample +$700

$

$

Organic Farms

Payment for certification

subject to spot testing

Key FlowsFoodMoneyInformation

$

Phase 4: Food Safety Market: Select Opportunities

Week: 6 Interviews: 22 Destination:

Santa Cruz Washington DC

Target Interviews: International food

processors Global food

processors (Del Monte)

Marijuana Dispensaries

Marijuana testing companies

Phase summaryOur potential opportunities:

1. International food aggregators

2. Chinese consumers

3. Legal marijuana

4. Allergies

5. Resegment consumer market Start here with new parents

Go Bears!

Phase 5: Focus on Parents and Pivot

Week: 8 Interviews: 12 Destination:

None Target Interviews:

New moms New Mom networks

etc. Pediatricians, nurses,

midwives Doulas

Phase summary

“I don’t want the strips but if I could have the information on my phone…now that would be great” – Anna, Expectant Mother

“I don’t want the strips but if I could have the information on my phone…now that would be great” – Anna, Expectant Mother

“This is not market ready” – Pesticide ID team“This is not market ready” – Pesticide ID team

New mothers are highly connected and get information from 4 sources

New mothers are highly connected and get information from 4 sources

The Journey Continues…

tweet us @Pesticide.ID using #pesticides!

• Changes in regulatory environment Food safety modernization act, rule 6

• Black swan (random) event • e.g. large scale event highlights foibles of current food safety system

• Other factor that causes mass change in consumer interest in food safety

Test, test, test validate our business model through a series of tests:• Launch MVP of Pesticide ID website• Gain traction via social media • Physically test products to determine actual need for improved food

safety monitoring

What is needed for Pesticide ID to take off ?

Our investment thesis requires:

…but in the meantime we’ll...

LINK!

The Journey Continues…

Time

(months)Today 3 months 6 months 9 months 12 months

Customer research

Develop product

Early prototype development

Refine prototype

Customer interviews on new business model

Uptake/feedback from social media

Demand generation

Create original content on food safety on pesticideID.com

Identify and recruit early evangelists

Identify key food safety advocacy partners

MVP of Pesticide ID website

Appendix

12

Pre-class Phase 1 Phase 2 Phase 3 Phase 4 Phase 50

1

2

3

4

5

6

7

8

9

10

Level of market understanding

Belief in market readiness

Understanding vs market readiness

□

Customer Characteristics

Leader of Planned Parenthood’s Pajaro Valley Health Action Team in central California

She is tertiary educated and highly informed on issues pertaining to food and safety

Currently works with farmers, regulators, activists to create policy to reduce negative aspects of pesticide exposure

Information Sources

1. Medical professionals – pediatrician, nutritionist

2. Web – Google, Wholesome baby food

3. Other mothers – coffee groups or apps

4. Non-medical - Doulas

13

Crusaders Customer ArchetypeCustomer Lifecycle (food concerns)

BirthPregnancy

No soft cheese, fish, deli meats, smoking, alcohol.

Concerns: heavy metals, pesticides.

Breastfeeding

Concerns: heavy metals, pesticides in mother’s diet.

Early Eating

Concerns: contaminants, heavy metals, pesticides in child’s diet.

Key Insights

Each group of new mothers has 1-2 crusaders who are passionate and highly concerned about everything related to their baby

Traci Townsend

□

Customer Characteristics

Sarah is an educated, upper middle class, 31 year old new mother.

She has a 3 month old daughter she is breastfeeding and is concerned about any contaminants in her food that may be passed onto her child.

Information Sources

1. Medical professionals – pediatrician, nutritionist

2. Web – Google, Wholesome baby food

3. Other mothers – coffee groups or apps

4. Non-medical - Doulas

14

New Parents Customer ArchetypeCustomer Lifecycle (food concerns)

BirthPregnancy

No soft cheese, fish, deli meats, smoking, alcohol.

Concerns: heavy metals, pesticides.

Breastfeeding

Concerns: heavy metals, pesticides in mother’s diet.

Early Eating

Concerns: contaminants, heavy metals, pesticides in child’s diet.

Key Insights

Not all mothers are as concerned as one another. Some are fairly trusting of the

current food labelling Many begin buying organic

to be ‘healthier’ but would like to stop if it offers no benefit.

There can be significant pressure between mothers

Diagram of Payment Flows

Strip Manufacturers Customer

UC Davis

Freemium

Paid

40% conversion

Premium Product - Subscription price per month $4.95

Churn rate 10%

Base to Premium Upsell rate 40%

Customer LTV $17.82

license fees

16

Value Proposition Canvas

Provision of information

Easy access

App for information

Strips for testing

Easier access to information

Peace of mind about food

Improves well-being of children

Fast access to data

Expensive testing

Simplicity

Not appearing to care for child

Takes too long

Raise a healthy child

Balance multiple priorities

17

Channel Complexity

SOLUTION COMPLEXITY

MA

RK

ETIN

G

CO

MPLE

XIT

Y

Organic food

Existing test kits

18

Partners, diagram, money flowN

ew T

estin

g Te

chno

logi

es

Regulation

Phase Design Research

Academic

Information/

Food Safety

Awareness

Establish long-term legitimacy• SBIR/STTR with UC Davis• Publication in scientific literature

Internal validation testing of UC Davis technology: • Screen local produce• Get coverage in local newspaper,

tech blogs

2015

• Contract Manufacturing Run• 1000 units

Costs

20142013

Patent filing

Pesticide Detection: Methyl Iodide, BromideTech ID: 23321 / UC Case 2013-757-0

• Exclusive License

• Additional Enabling Tech License

Resources and development timeline

Establish legitimacy: • Start food safety blog to

educate young mothers• Start objective marketing and

distribution effort based on reviews/consumer reports

Revenue: ANP Marketing/Distribution Blog advertising revenue

Blogger Manufacturing Testing

Viral blog &

FB coverage

• Large Manufacturing Run

STTR grant with UC Davis Blog/marketing

Academic acceptance

and support of KOLs

LeanLaunchpadEnds

Big sales and distribution push • Subsidize evangelists• Roll out database subscription

product• Partnership distribution with baby

boxes• FB/Google Adwords campaigns• Baby storefront sales reps

Steve Blank-leads Seed Round

Strategic exit to perinatal

consumer products

conglomerate

2016 2017

Strip giveaways Advertising/Sales reps

App subscriptions Product sales

Grant writing Manufacturing II

Phase 2: Retailers

• The existing system is good enough• Someone else’s problem• People want quality, not “purity”• One week of interviews?

21.Consumers• Whole Foodies• New Parents1.Grocer• Yasai Produce• Monterey Mkt4.Food Entrps and SMB owners• Amy’s• Annie’s• 18 Rabbits5.Distributors• Veritable

vegetables

Childbirth Educators

• Doulas• Lactation

Educators

Hospital system

•Pediatricians•Pediatric

NPs

Community• Other new

parents•Mom networks•Baby Stores

Internet•Facebook•New parent blogs•Mom networks (virtual)

It Takes a Village to Raise a Child

21

Strategic Partners

✗

✔

✔

✔

$

(and SBIR)

$(and

earned)

$$$ (details in forthcoming channel slides) PRODUCT

SBIR Opportunities

NIH FDA

USDA Food Science and Nutrition

food-borne pathogens

Food preservation

Nutrition awareness/ obesity prevention

Affordable food to combat obesity

HHS (Health and Human Services)

National Institute on Allergies and Infectious Disease

Center for Food Safety and Applied Nutrition (CFSAN)

Support FDA Regulation

Reduce foodborne illness, toxins, etc.

detection, prevention, and control of contamination

Center for Global Health (CGH)

Colorimetric assay to measure insecticides

National Science

Foundation

ET1- Environmental Monitoring and Mitigation

Sensors/methods to reduce use of pesticides

EI – Electronics, Informatics, and Communication

Technologies, environmentalSensors

SBIR LandscapePhase 1

up to $150k for 6 mo.

Phase 2

up to $2M for 2 years

Phase 3

lab->market

STTRUp to $200k for 9 mo.

need academic research partner

Childbirth Educators

• Doulas• Lactation

Educators

Hospital system

•Pediatricians•Pediatric

NPs

Community• Other new

parents•Mom networks•Baby Stores

Internet•Facebook•New parent blogs•Mom networks (virtual)

It Takes a Village to Raise a Child

23

Strategic Partners

✗

✔

✔

✔

$

(and SBIR)

$(and

earned)

$$$ (details in forthcoming channel slides) PRODUCT

24