air SemiconductorNew Enterprise Success Story for Swindon

(and impact of the 2008 / 2009 venture investment crisis)

David TesterFounder & CTO

New Enterprise Success Story for Swindon… and impact of the 2008 / 2009 venture investment crisis …

- The Market Opportunity

- Why Swindon?

- UK semiconductor technology clusters

- Swindon Innovation Centre & Silicon South West

- The M4

- Air Semiconductor

- Founders, Investors and the Air Team

- Journey from initial idea to prototype and customers

- GPS 2.0 and the digital camera market

- Follow-on markets for proactive GPS

- Development Costs and Investment

- Impact of the 2008 / 2009 semiconductor venture investment crisis

- Summary and Q&A

The Average (Good) Working Day in a High-Tech Start-Up

The Average (Bad) Working Day in a High-Tech Start-Up

Sell Tesco’s car park to Sainsbury’s

1_.@ DEF32ABC

4GHI MNO65JKL

7PQRS WXYZ98TUV

#0+*

Special offers at

Sainsbury’s today!

Press # for directions

Car park

Location targeted advertising is only possible with‘Always-ON’ positioning in mobile phones

Minimum standbycurrent:

2.1 mA

Average current*:

7.3 mA

Nokia 6233

Minimum standbycurrent:

2.4 mA

Average current*:

7.8 mA

Motorola RAZR V3i

Minimum standbycurrent:

3.6 mA

Average current*:

8.3 mA

Samsung E900

Minimum standbycurrent:

2.6 mA

Average current*:

9.4 mA

SEMC K610im

Minimum standbycurrent:

4.0 mA

Average current*:

8.3 mA

LG KG800 Chocolate

Minimum standbycurrent:

3.1 mA

Average current*:

9.9 mA

BenQ-Siemens SL91

* Current draw based on “average” use assuming battery recharge once every 4 days

‘Always-ON’ GPSThe Key to Proactive Location Based Services

How often does phone battery needs to be recharged if GPS active?GPS must be limited to 1-2mA (or 10% of phone power)

GPS 101Receive Power is -130dBm to -160dBm … 20dB to 50dB below the Thermal Noise Floor!

Regional geo-stationary

augmentation satellites

WAASWide Area Augmentation System – USA

EGNOSEuropean Geostationary Navigation Overlay

System – Europe

Earth radius

6,378 km

19,100 km

20,200 km

23,222 km

Galileo

GPSOrbit 11 hours 58 minutes

13,900 km/h

GLONASS

MoonApprox. 400,000 km

35,786 km

Geo-stationary

GPS6 orbital planes; 55° to equator

Galileo3 orbital planes; 56° to equator

GLONASS3 orbital planes; 65° to equator

Air Invents Continuous Adaptive GPS … offers both Low-Power & Position Accuracy

Competitor

Air

Low-Power

Ac

cu

rac

y

Summary of UK Semiconductor ‘Hot Spots’

Silicon Glen Silicon FenSilicon Alley

Sources: NMI Design Survey Report 2006NMI Members Map: http://www.nmi.org.uk/about-us/members/members-map

UK Semiconductor Locations Semiconductor Locations around the M4

US 12/039,865 and US 99/999,999Tracking Loops for Always-ON GPS Receiver

Location, Location, Location: Swindon and the M4

Silicon South West and Swindon Innovation Centre

Overview of Air SemiconductorInvestors, Awards and Founders

Steve GrahamCo-Founder & VP Marketing

Staff

Employee #1 (20 years experience)

Employee #2 (20 years experience)

Contract

Contract #1 (15 years experience)

Contract #2 (15 years experience)

Staff

Employee #3 (20 years experience)

Employee #1 (20 years experience)

Staff

Employee #4 (10 years experience)

Employee #5 (15 years experience)

Employee #6 (15 years experience)

Contract

Contract #3 (20 years experience)

Contract #4 (20 years experience)

Contract #5 (20 years experience)

2x Synopsys IC layout contractors

Staff

Employee #7 (20 years experience)

Employee #8 (15 years experience)

Contract

Contract #8 (20 years experience)

Contract #9 (15 years experience)

RFIC Design System Design ASIC Design Software Design

ex-CEO Andromedia (acquired Macromedia ‘99)

ex-CEO Frictionless Commerce (acquired SAP ‘06)

Hank IzumiVP Sales Asia

ex-CEO PortalPlayer (NASDAQ: PLAY)

ex-CEO S3 (NASDAQ: SIII)

Kent Godfrey

Michael Gera

David Tester

Board of Directors

Gary Johnson

Pond Ventures

Independent

Pond Ventures

ex-CEO TapRootHugh Thomas

Hugh ThomasCEO

Support Staff

1x General Admin

1x Finance ManagerCTO

CEO

Andy HeatonVP Operations

David TesterFounder & CTO

The Air Team

Initial Idea (in 2005) to Prototype Silicon (in 2009)

Red Herring 100 Europe 2008

April ‘08

Series-A Termsheet

April ‘06

Prof Izzet Kale joins Technical Advisory Board

October ‘08

Demonstrate GPS technology

July ‘08

Recruit external CEO

May ‘08

Exit stealth mode

Announce 1st

product

January ‘08

Gary Johnson joins Board of Directors

2x NASDAQ CEO (PortalPlayer & S3)

May ‘07

A1225 RFIC (v1)

April ‘07

A1250 single die GPS receiver

January ‘09

A1225 RFIC (v2)

February ‘08

J F M A M J J A S O N D

J F M A M J J A S O N D

J F M A M J J A S O N D

J F M A M J J A S O N D

2006 2007

J F M A M J J A S O N D

J F M A M J J A S O N D

J F M A M J J A S O N D

J F M A M J J A S O N D

2008 2009

Air Inc + Ltd incorporated

May ‘06

Development starts!

June ‘06

Engage with TSMC for silicon

Sept ‘06

IET Start-Up of the Year 2008

November '08

Electra Start-Up of the Year 2008

November ‘08

RFIC + FGPA platform

May ‘08

Air tracks GPS satellites with RFIC

March ‘08

Air tracks GPS satellites with RFIC + FPGA

June ‘08

Tracking DSP

Architecture

Acquisition DSP

Architecture

Air first PVT, confirms lab in Swindon

June ‘08

Acquisition DSP

Implementation

Tracking DSP

ArchitectureTracking DSP

Implementation

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

Radio IC

Implementation

PVT &

Kalman Filter

Tracking DSP

Implementation

Radio IC

ImplementationA1250

IC design

Dual-Mode GPS

system design

Dual-Mode GPS

software design

A1250 silicon evaluation

airwave1 system development platformand prototype sample silicon module

Unfiltered CEP50 position accuracy is 2.8 metres

Prototype Product Performance

Push-to-Fix TTF @ -130dBm: 2.5sPush-to-Fix TTF @ -150dBm: 2.5s(Future push-to-fix TTF will be <1s)

Unaided cold start: -140dBmUnaided hot start -150dBm(Future hot start sensitivity -154dBm)

Tracking sensitivity: -152dBm(Future tracking sensitivity -160dBm)

Plot shows 20m (x axis) by 20m (z axis)

Positions grouped into 20cm x 20cm bins

Stationary receiver over 12 hour period

Air Technical Demonstration Platform … in Japan

Air Technical Demonstration Platform … in USA

GPS with airwave1 silicon

Initial Market: Digital Camera Market and Geotagging

9 M22 M

38 M

62 M

146 M 150 M 155 M 160 M 164 M

2008 2009 2010 2011 2012

GPS enabled DSC's DSC shipments

GPS modules developed by DSC partners

Proactive

VC Introductions

Unsolicited enquiries

Customer Status: 174 Active Customer LeadsMarkets:Camera, Cellphone, Laptop PC, Netbook, Digital Watch, Asset Tracking

37 active leads generated proactively by AirIncluding: Ability; Apple; Canon; Casio; DoCoMo; Foxconn; Fujifilm; LG; NEC; Nikon;Nokia; Olympus; Panasonic; Pentax; Ricoh; Samsung Electronics; Samsung Techwin; Sanyo Digital Imaging; Sony Ericsson; Softbank; Sony

20 active leads from VC introductionsIncluding: Google; Motorola; O2; Spreadtrum; Swatch; Vodafone

117 unsolicited enquiries resulting from PR activityIncluding: Mediatek; Microsoft; RIM; Altek; Fujitsu; Hitachi; HTC; Mitac; Compal

CSR / SiRF follow Air Semiconductor Always-ON

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Monthly Burn $K Total Burn $M

Development Cost and Investment ProfileM

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($

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2006 20082007 2009

Success = Vision + Market + Money + Timing + Execution + Luck