Immersive Technology Studios Business Plan Rev. 1.3
“Bridging the Gap between the Real & Digital World”
43 Daniel Dr. Barre, VT 05641 IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
p. 802-451-9162
[email protected] https://vrtourpros.com 1
Table of Contents I.
Executive Summary .................................................................................4 Mission Statement Highlights Revenue Goals Business Objectives Keys to Success
II.
Description of Business ...........................................................................7 Legal Entity / Founding Team Products and Services Suppliers Management Timeline
III.
Financial Management ..........................................................................15 Financial Management Phase 2 | Seed Round Funding Phase 3 & 4 |Series A Funding Round
IV.
Marketing ...............................................................................................18 Market Analysis Market Segmentation Competition Competitive Advantage Pricing
V.
Company Culture ...................................................................................23 Commitment to Employees Commitment to the Community Commitment to Faith Commitment to Diversity
VI.
Appendix .................................................................................................25
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Startup Expenses – (Appendix I) Revenue Projections (Appendix II) Milestones (Appendix III) Market analysis (Appendix IV)
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Executive Summary Mission Statement Immersive Technology Studios seeks to bridge the gap between the real and digital world by building realistic, interactive, and immersive virtual reality tools to engage audiences around the world.
Highlights Immersive Technology Studios is seeking to build a world-class virtual reality platform that will “bring education to life” by creating content and tools that will engage students and improve learning retention, as well as provide educators the tools they need to administrate, track, and report on their pupils progress. This ambitious goal has been carefully mapped into four phases of the company’s growth. Stage one, which is already underway, involves ITS providing VR services to outside companies in order to discover the best practices in creating and building content in this emerging technology field. Stage two marks the transition from a service based company into a product based supplier by building an educational VR platform that accomplishes the above goal. Stage Three will focus on creating quality content that will be deployed on the platform. Finally in stage four, estimated to be in Q3 of 2019, the platform will be release to the target market with a revenue goal of $7 million in 2020 growing to $56.25 million by 2025.
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Revenue Goals $56,250,000.00
$40,200,000.00 $29,500,000.00 $20,400,000.00 $12,900,000.00 $7,000,000.00 $2,700,000.00
2019
2020
2021
2022
2023
2024
2025
Business Objectives
Develop scalable virtual reality platforms and content for distribution into select industries.
“Bring Education to Life” by creating quality VR platforms, content, and tools for teachers and students to improve learning and knowledge retention.
Capture 6% ($12.9MM) of market segmentation within 3 years of product release.
Capture 15% ($56.25MM) of market segmentation within 6 years of product release.
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Keys to Success
Realistic – ITS believes that in order to take full advantage of virtual reality technology the content that is experienced must be relatable. To that end we believe in producing highly-realistic VR content that represents an actual lifeexperience someone would have when using our VR products. This includes producing high quality photo-realistic environments, not computer generated model representations.
Interactive – ITS believes that the users should be in-control of their VR experience. While being surrounded by amazing content is great, if users do not have a way to interact with that content then the VR experience is nothing more than a fancy “view-master.” Examples of interaction include moving around the VR environment, as well as selecting and engaging with elements within the experience.
Immersive – ITS believes that the best way to enjoy VR environments is through highly immersive experiences. As a first step this means being an advocate for the use and advancement of VR headsets within the culture. However it also means expanding beyond simple headsets and creating tactile experiences that can take advantage of even more immersive technologies, incorporating both sound and touch elements.
Accessible – ITS believes that VR must be accessible to everyone, regardless of their budget, VR headset choice, or lack of access to VR hardware. In order to address this ITS has worked hard to develop a WebVR platform that is cross-platform compatible and capable of working on all types SBS headsets; ranging from the high-end and expensive luxury units, to basic and affordable mobile VR models. Additionally the ITS platform provides non-VR fallback options to use on mobile devices or computers for when VR is notpractical or possible.
Visionary – ITS believes is bridging the gap between the real and digital world. As part of this mission it means looking ahead toward the future, identifying creative technology solutions to the world problems and developing realistic ways to meet those needs.
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Description of Business Immersive Technology Studios is a premier Virtual Reality (VR) Studio committed to bridging the gap between the real and digital world by producing high quality VR content that is realistic, interactive and immersive.
Legal Entity / Founding Team Immersive Technology Studios is currently a tradename for Glover Ventures, LLC. With majority ownership (75%) by Andrew Glover, and partial ownership (25%) by John Parker. During the seed round investment period ITS will be split off into its own separate entity, current options being considered are an LLC, or B-Corp. Andrew T. Glover – Founder / CEO A lifelong entrepreneur, Andrew Glover got his start in the business world in middle school renting concession equipment and selling food and beverages at local events. During high school he trained and worked as an AASI certified snowboard instructor, and then supervisor at a ski-shop in West Dover, VT. He would later return to manage that ski shop in the winter of 2011/2012. After attending Liberty University, Andrew started Vermont Media Solutions (VMS), a full service marketing company providing digital and traditional marketing services to small businesses and organizations throughout New England. In addition to providing consulting services through VMS, Andrew has also worked as Marketing Coordinator at Hibbert & McGee Wholesalers (5/12-1/14), and Director of Marketing at Moscow Mills, Inc. (1/14-10/15). Today Andrew is the CEO of Glover Ventures, LLC. which owns and operates both Vermont Media Solutions and Immersive Technology Studios. John M. Parker – Co-Founder / CTO A life-long geek, John found that "being a nerd" paid off in High School. Representing Keene High School's Cheshire Career Center in SkillsUSA's Vocational Industrial Clubs of America (or 'VICA' for short) competition, John IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
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won first place in the state-wide challenge and went on to compete at the national level in Kansas City, MO (twice). After leaving college at New Hampshire Technical Institute, John returned to southwestern New Hampshire to begin working as an Associate Software Engineer for ES3, LLC. At ES3, he refined skills while developing technical solutions to support ES3's efforts in becoming a world leader in Automated Warehousing. Today Joh works as a Programmer Analyst at the world's largest dairy breed association, Holstein Association USA. His most recent project involved the development of a comprehensive management tool designed to help dairy producers optimize investments in Holstein genetics through the use of genomic testing. “Enlight”, developed in collaboration with Zoetis Services LLC and Holstein USA, empowers dairy herd owners by providing them with simple, convenient access to all their genetic information along with analytics to turn that information into profitable herd management.
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Products and Services Phase One – Service In the early stages Immersive Technology Studios’ business model will focus on streamlining the development of VR content. This includes developing the technology to professionally produce and distribute content ranging from 360° video, to virtual reality tours, to interactive VR experiences. The time spent in phase one will provide ITS personnel the technical knowledge, practical experience, and demonstrated proof-of-concept material needed to move into phase two. During phase one revenue will be generated primarily through consulting and production of special projects. This includes working with specific industries to assist them with adopting the technology, as well as consulting on special one-time projects. Phase One Specific Services:
Specific Examples of Customers:
Virtual Reality Tours
Realtors
360° Video
Colleges / Universities
Interactive WebVR
Municipalities
Experiences
Small Businesses
VR Distribution Methods
Tourism Industries (Hotels,
Monetization Models for
Resorts, B&B’s, Etc.)
WebVR
Golf Courses
General VR Consulting
Marketing Agencies
Museums
Phase Two – Product Proof-of-Concept / Research Immersive Technology Studios believes that in order to grow the company will need to consolidate the consulting services into a product centered business model. The company will take the knowledge and expertise gleaned from producing content for other customers (phase one) and focus it into a unique application of the technology that will have a disruptive impact in the educational industry. IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
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The anchor product for ITS, “Lyceum” (working project name), will be a consolidated distribution platform and production company catering the educational industry. Lyceum will “bring education to life” by providing students immersive virtual reality experiences of culturally significant sites and events. These experiences, consolidated and distributed through the Lyceum online platform, will help teachers impart the true importance of the material they are teaching. Instead of reading about the civil war, students will be able to walk around famous battlefields, tour the national civil war museum, and witness a reenactment of the surrender of General Lee. Instead of just learning about immigration, students will have the opportunity to experience what it is like to take the journey that an immigrant takes. Instead being told what it’s li ke to walk through the catacombs of Rome they will be able to do it for themselves. ITS has several goals during phase two, these include:
Producing 1 – 2 VR Cultural Experiences (Modules)
Develop minimum-viable-product (MVP) of Online Distribution Platform
Establish test-cell to both demo the software as well as collect data on results of educational improvements. During phase two ITS will be producing little to no revenue.
Phase Three – Content Production Once Lyceum MVP has been developed and positive results have been demonstrated in a classroom environment ITS will move into its third phase. One of the more unique aspects about Lyceum is that all content will be produced by ITS at no cost to the cultural / heritage site. Instead ITS will partner with each educational leader to produce content that they can in-turn use free of charge within their own organization, in exchange for licensing and distribution rights. By doing this ITS hopes to have greater access to more enriching environments and places. Phase Three will focus on generating this content.
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To accomplish this ITS will work with state and national educators to identify educational tracts that scholastic users will be able to incorporate into their educational curriculum. Each module that is produced will consist of:
Interactive Virtual Reality Tours
Interactive VR Story Telling
360 Video Documentaries
Example Module: Civil War
VR Tours: Fort Sumter, Manassas Battlefield, Appomattox Court House, National Civil War Museum.
Interactive Story Telling: Q&A with Abraham Lincoln, Robert E. Lee, and Ulysses Grant. Q&A With Civil War Historian.
360 Video: Battle Reenactments, Period Life Overview, VIP Biographies
As an educational tool the primary market for Lyceum is public and private schools and school systems. Therefore a key component of the system will be the backend features that Lyceum offers to educators on both the individual teacher level and school level. During phase three the Lyceum platform developers will be working on integrating user level tracking and reporting that will be available to teachers to track the progress and improvements of their students. The primary goals of phase three are:
Develop content modules
Finalize Lyceum Platform
Beta-release to select markets
Collect User Feedback and Success Stories
Develop Marketing & Sales Material
Phase Four – Publication & Sales Once the Lyceum platform is ready to go ITS will release the platform to the general market, and ramp up direct sales efforts (See Marketing / Sales). This includes working with federal, state, and local educators for adoption within institutional IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
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organizations, as well as to other educational markets such as home educators, self-educators, and special interest groups.
Suppliers ITS is either already working with, or anticipates working with, a variety of software and hardware suppliers in order to produce our engaging VR content. Software Suppliers:
Hardware Suppliers:
PTGUI (Stiching Software)
Giroptic 360 (Camera)
Kolor (Stiching Software)
Black Magic Design (Camera)
Video Stich (Stiching Software)
Panono (Still Camera)
Adobe Creative Suite (Production
Midnite Engineering (Engineering
Software)
Manufacturer)
KR Pano (WebVR Framework)
A-frame IO (WebVR Framework)
Moz VR (Open Source Community /
Oculus Rift (VR Headset)
WebVR Framework)
Google Cardboard (VR Headset)
AWS - Amazon Web Services
HTC Vive (VR Headset)
(Online Hosting and Cloud
Leap Motion / Orion (Hand &
Computing Services)
Steerling Technologies (Manufacture)
Motion Tracking
As the company grows we anticipate utilizing more software and hardware solutions to efficiently solve challenging problems.
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Management Chief Executive Officer (CEO) – Andrew Glover The CEO’s role will be to oversee company operations and ensure progress is being made toward overall company goals. Furthermore CEO will work with department heads to develop creative solutions to problems. Additionally CEO will be primarily responsible for forming strategic business partnerships and alliances to set the tone for future business opportunities. Chief Technology Officer (CTO) – John Parker The CTO’s role will be to develop and fine-tune the technical capabilities envisioned for the company. CTO will work hands on with development team to produce the webVR platform which will enable ITS to serve its target market(s). Additionally CTO will work with CCO to ensure that creative works are properly formatted within the ITS platform. Consulting Chief Legal Officer (cCLO) – David Sterrett The CLO’s job is to ensure company minimizes legal risks associated with the company’s strategic partners, customers, and government regulations. Additionally, CLO will assist CEO / CFO with investor relations. Currently the CLO position is contracted out to Sterrett Law, PLC as a consulting position. Creative Officer (CCO) – Still Needed* The CCO will be responsible for the creative works produced for ITS. The CCO will work closely with the CEO, CTO, and DEP to develop realistic, interactive and immersive virtual reality content that will be engaging for the target market. Chief Marketing Officer (CMO) – Sill Needed* Chief Marketing Officer will be responsible for working with the CEO to promote the use VR technology and ITS products and services. Additional CMO will be responsible for general business development and initial sales opportunities. This position will not be needed until middle of phase three.
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Director of Educational Programs (DEP) – Still Needed The Director of Educational Programs will be responsible for developing educational modules and will work with CCO to develop engaging educational content. *Indicates that several candidates have already been vetted, or identified.
Timeline Apr-16 Oct-16 May-17 Nov-17 Jun-18 Dec-18 Jul-19 Jan-20 Aug-20 Mar-21 Sep-21 Phase One Seed Round Funding
Phase Two Series A Funding Round Phase Three Phase Four
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Financial Management Financial Management Day-to-Day financial management, including book keeping, payroll and taxes will be outsourced to a local Vermont accounting firm. Strategic financial planning will be performed in a collaborative effort between the senior leadership team, and the controller. The services provided by the controller include:
Record all downloadable bank
and credit card transactions.
Answers to complex accounting questions.
Bookkeeping
Standard financial statements
Semi-Annual Reviews
Quarterly Reviews
Accounts payable management
Coaching
Payroll
Participate in company
Invoicing
Inventory management
Accrual-based accounting
Customized financial statements.
meetings
Other Controller services.
Phase 2 | Seed Round Funding Immersive Technology Studios will seek to raise $1.75 Million Dollars in an initial seed round funding period. The money raised for this round will be used to cover phase 2 operations. Included in this raise amount is the hiring of six full-time employees. The procurement of necessary startup capital equipment. As well as the necessary operating expenses associated with running a business. In total the funds will cover 100% of the expenses for a two year period. See Appendix I for more information.
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The seed round funding will be raised by ITS in collaboration with the WeFunder.com equity crowdsourcing platform, and it is anticipated that $1MM will be raised through Title III CF, and $750K through traditional regulation D funding.. In addition to the funds received in the seed round ITS also has plans to apply for several grant opportunities, such as the Department of Education’s SBIR Grant. While not necessary, these grants have the opportunity to bring in additional funding (Up to $1,050,000) that can be used to expedite and improve the ITS platform. Payroll, Benefits & Taxes
$1,277,054.04
Capital Equipment
$94,210.00
Operating Expenses
$219,068.00
TOTAL ANTICIPATED STARTUP EXPENSES
$1,590,332.04
Seed Round Funding Goal: $1,750,000
Phase 3 & 4 |Series A Funding Round The primary goal of phase 2 is to build a MVP of the ITS platform, as well as use the content and platform in test cells to collect data and feedback from users. Once these goals are completed ITS will move forward into phase three using funding from a second round of funding (Series A funding round). Specific funding for this round has not been finalized but is estimated to be between $30-$50MM. This is in line with other Series A funding amounts from similar VR firms including Jaunt, Magic Leap, MideMaze, and others. Series A funding will be used to fund phase 3 and the start of phase 4. This includes hiring as many as 40 employees ranging from programmers to content producers, and researchers to sales teams. Additionally funds in this round will be used to procure a permanent facility, purchase capital equipment, produce content, and pay for marketing expenses. IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
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Exit Strategy Exit for Seed Round Investors ITS anticipates either an acquisition or IPO to happen in 2025 or earlier. Leadership / Founder Exit The founders of Immersive Technology Studios are committed to the success and growth of the company. As a part of this commitment the founders will remain material participants in the company for a minimum period of 5 years, with additional tenure depending on company acquisition and later funding rounds. Ideally the founders will remain as advisors, or chair-members, even after their material participation period has ended. Furthermore, non-founding C-level leadership and phase 2 employees will be provided stock option with vesting periods of 5 years. This will encourage employees to remain at the company and dedicate their work toward the long-term financial success of the organization.
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Marketing Market Analysis According to Goldman Sachs, the combined VR market will be generating a combined $80 Billion dollars in revenue by the year 20251. Other reports, such as the TrendForce VR market report, estimate that the market adoption may be as fast as $70 Billion by 20202. Furthermore, Goldman Sachs estimate the revenue within the educational market to be $300 million in 2020 and $700 million by 2025, with a total user base of 15 million users.
Market Segmentation The Lyceum primary market will be secondary public and private schools, of which there are 37,000 in the U.S. alone. Furthermore we anticipate additional market opportunity within the primary schools (grade 5-8), of which there are 98,000 in the U.S.; as well as colleges and universities (4,100 total schools). This leads to a grand total of 139,240 schools serving over 48 million students. Additionally, there are ~150 million students in other developed countries. US Target market (Total # Schools)
9 - 12 Grade (Public & Private) 37,100 5 - 8 Grade (Public) 98,000
http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtualand-augmented-reality/report.pdf 2 http://press.trendforce.com/press/20151204-2210.html 1
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Competition As of this moment there are no public projects that have a similar business model. That being said, there are several competitors that could encroach on ITS’s targeted market segmentation. Google Expeditions The biggest competitor that has the closest business approach to Lyceum is the Google “expedition” program (GEP). This micro-venture from Google is currently “invite only” and provides hands-on demos inside select classroom environments. Google is leveraging their street-view database and other VR platforms to provide teachers a way to provide student’s access to heritage sites that otherwise wouldn’t be accessible. However these “experiences” are only available when GEP schedules a school visit, and it’s not clear how or if Google is generating revenue. The biggest difference between Google Expedition Program and ITS is that the GEP is a one-time experience, where as ITS is looking to incorporate our VR content into school curriculum and teaching methods. Additionally ITS is looking to incorporate more than just tours of heritages site, but also interactive learning experiences as mentioned above. Incidentally Google Ventures / Alphabet, would be a potential buyer / Investor in Lyceum during Series A or later funding rounds. Heritage Site Specific Products Another competitor will be the individual heritage sites themselves, where they will be producing, distributing, and controlling their own VR content. An example of this is the virtual tour (not VR compatible) of the Smithsonian National Museum of Natural History available on their website. By providing VR services free-of-charge to these heritage sites ITS hopes to entice individual museums to use ITS for their VR exhibits in exchange for IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
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licensing and distribution rights. Additionally ITS will, in general, be able to produce higher quality experiences compared to a museum taking on the project on their own. Other VR Production Firms Truth be told, this is an emerging industry, where the technology is being openly shared and collaborated on, but the individual applications of the technology are being kept secret. It is likely that other startup VR firms are exploring applications within the educational market, and specifically within the virtual experiences market. However from research that we have been doing most of the models rely on charging heritage sites for VR services, and not creating a consolidated database of VR content for educational use. This is the difference between charging the heritage sites and charging the end-users. The primary advantage that ITS has against other startups is that we are hoping to create a consolidated database and platform with quality VR content by creating that content free of charge for the heritage sites, and providing educators the tools they need to make teaching the content more engaging.
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Competitive Advantage As alluded to above ITS has several competitive advantages:
Providing heritage sites free VR services in exchange for licensing, distribution rights and data intelligence.
Creating a consolidated platform where users don’t need to search for their content across the internet.
Providing teacher and educator tools to track student engagements.
Low cost subscription based pricing.
Other potential advantages include:
Because ITS is providing free VR services to heritage sites we hope to have better access to the environments, providing content that would otherwise not be possible.
As a planned B-Corp, our social mission status can hopefully be leveraged for outside grants and open additional doors that may otherwise be closed to traditional for-profit ventures.
By working with WebVR content the VR experiences can be used immediately without high startup costs within the educational institutes. (i.e. school systems do not need to invest in expensive VR headsets and computers).
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Pricing Revenue will primarily be derived from subscription based access to the tools and platforms for educators and consumers. Standard Annual School Subscription: $25 per enrolled student / ~$10,000 per school Includes:
Access to all VR Content
Student Level Reporting
Development of “tracts” for teachers to use inside classroom (teachers can set-up drip feed to student assignment areas).
Standard Homeschool Subscription: $25 per month per household (up to 6 students) Includes:
Access to all VR Content
Student Level Reporting
Standard Consumer Subscription: $9.99 per month / $5 Day Pass / $2 Single Module Day Pass Includes:
Access to all (or select) VR Content
Other Revenue Generating Activities
Creation of Special Interest Modules
Creation of Custom Made Tracts for State or Regional School Systems
Sponsorships
Advertisements
Sale of Hardware
Royalties / Residuals / Licensing
White Label Platform
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Company Culture Commitment to Employees A founding principle for ITS is that employees are the most important asset the company has, and that each employee is irreplaceable. This is especially true in a startup venture operating with emerging technology. As such it is important for ITS to ensure that their health, financial wellbeing, education and family are taken care of. In addition to providing a highly competitive salary, each employee’s benefit package will include:
75% of Health Insurance Covered for Family
3% Matching 401K
15 Days of No-Questions Asked Paid Time Off | Up to 25 Days after 5 Years
6% of Salary Toward Continuing Education Opportunities (CEC) o First 3% toward student debt reduction (or if no student debt, amount is added to CEC).
The time and care that we provide for our employees will allow them to be dedicated to the company and produce high quality work without having to be encumbered by circumstances that it are within ITS’s ability to influence. Furthermore each phase 2 employee will be provided company stock options with a vesting period of 5 years. Phase 3 & 4 Employs will be provided some type of performance-based profit sharing bonuses.
Commitment to the Community In addition to Immersive Technology Studios’ commitment to employees, we are equally committed to the communities that host the company and our workforce.
Employees will be encouraged to participate in paid volunteer time.
ITS will sponsor student tech organizations and events
ITS will provide specific funding toward events and initiatives that align with our statement of faith.
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Commitment to Faith Immersive Technology Studios is founded on, and will be managed by, Christian principals. These principles include commitments to trust and honesty, dependability and dedication, integrity and quality, understanding and love. Our goal is to foster an environment and mission that our customers and investors can believe in. While we don’t expect every one of our employees to have the same beliefs or lifestyles as our own, we do expect that they will hold the above values as worth being known by.
Commitment to Diversity The unfortunate reality of the technology industry is that there is a major lack of diversity in the community. This is even truer for Vermont, which is considered one of the least diverse states in the country. ITS is committed to ensuring that every candidate interviewed is considered regardless of their race, age, religion, nationof-origin or sexual orientation. Every effort will be made during the hiring process to eliminate questions that could reveal any of the above socio-economic statuses in the hiring process. Additionally ITS will institute a strict anti-discrimination policy on day one to ensure that everyone is treated with respect and appreciation.
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Appendix Startup Expenses – (Appendix I) The below startup expenses are to cover the phase two startup period, which marks the transition between service oriented and product oriented business model, and the development of the Lyceum platform. These line-items will cover a period of two years, at which point Series A funding round will be used to cover phase three and four expenses. Overview Payroll, Benefits & Taxes
$1,277,054.04
Capital Equipment
$94,210.00
Operating Expenses
$219,068.00
TOTAL ANTICIPATED STARTUP EXPENSES
$1,590,332.04
Seed Round Funding Goal of $1,750,000
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Payroll Position
Annual Salary
Healthcare
$75,000.00 $85,000.00
401 K (Matching) $2,250.00 $2,550.00
FICA
VT UI
$16,606.17 $16,606.17
Continuing Education $4,125.00 $4,675.00
$5,737.50 $6,502.50
$750.00 $850.00
Total Compensation Package $104,468.67 $116,183.67
CEO CTO & Senior Programmer Creative Director Director of Educational Programs Senior Programmer Jr Programmer Annual Payroll
$75,000.00 $75,000.00
$2,250.00 $2,250.00
$16,606.17 $16,606.17
$4,125.00 $4,125.00
$5,737.50 $5,737.50
$750.00 $750.00
$104,468.67 $104,468.67
$85,000.00 $65,000.00 $460,000.00
$2,550.00 $1,950.00 $13,800.00
$16,606.17 $16,606.17 $99,637.02
$4,675.00 $3,575.00 $25,300.00
$6,502.50 $4,972.50 $35,190.00
$850.00 $650.00 $4,600.00
$116,183.67 $92,753.67 $638,527.02
Total Phase 2 Payroll
$920,000.00
$27,600.00
$199,274.04
$50,600.00
$70,380.00
$9,200.00
$1,277,054.04
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Capital Equipment Price Hardware Still Cameras (Panono) DSLR Cameras & Lens Omni Camera System Black Magic Camera System Computers, Monitors, & Peripherals Internal Server Data Storage & External Drives Other Hardware Subtotal
Units
Total
$2,000.00 $9,000.00 $6,000.00 $14,000.00 $3,400.00 $12,000.00 $300.00 $13,040.00
1 1 1 1 6 1 6 1
$2,000.00 $9,000.00 $6,000.00 $14,000.00 $20,400.00 $12,000.00 $1,800.00 $13,040.00 $78,240.00
VR Headsets Oculus Rifts HTC Vive Mobile Phones (Android, IPhone, Etc.) Subtotal
$600.00 $800.00 $700.00
2 2 3
$1,200.00 $1,600.00 $2,100.00 $4,900.00
Lifetime Software License / Purchase Kolor - AVP 2 Kolor - PTP 2.5 Bundle PTGUI - Corporate License VideoStitch Studio 2 KRPano 360 HeroCam Man Other Software Subtotal
$700.00 $700.00 $406.00 $745.00 $457.00 $225.00 $3,690.00
2 2 2 2 4 2 1
$1,400.00 $1,400.00 $812.00 $1,490.00 $1,828.00 $450.00 $3,690.00 $11,070.00
Total Capital Equipment Needs
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$94,210.00
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Operating Expenses Monthly General Business Exp. Office Space Legal Services Controller Services / Bookeeping Office / Admin BOP Insurance Travel Cell Phones Subtotal
Annually
Phase Two
$2,500.00 $1,000.00 $1,000.00 $900.00 $416.67 $1,423.50 $440.00 $7,680.17
$30,000.00 $12,000.00 $12,000.00 $10,800.00 $5,000.00 $17,082.00 $5,280.00 $92,162.00
$60,000.00 $24,000.00 $24,000.00 $21,600.00 $10,000.00 $34,164.00 $10,560.00 $184,324.00
Server & Hosting Expenses AWS - S3 AWS - EC2 AWS - EBS Subtotal
$29.00 $48.00 $50.00 $127.00
$348.00 $576.00 $600.00 $1,524.00
$696.00 $1,152.00 $1,200.00 $3,048.00
Monthly Software Licenses Adobe CC Microsoft Office TeamWork - Projects TeamWork - Desks GitHub Slack - Standard Zapier - Business Other Subscriptions GrassHopper Subtotal
$414.00 $75.00 $149.00 $120.00 $34.00 $42.00 $20.00 $416.67 $50.00 $1,320.67
$4,968.00 $900.00 $1,788.00 $1,440.00 $408.00 $504.00 $240.00 $5,000.00 $600.00 $15,848.00
$9,936.00 $1,800.00 $3,576.00 $2,880.00 $816.00 $1,008.00 $480.00 $10,000.00 $1,200.00 $31,696.00
Total Operating Expenses
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
$9,127.83 $109,534.00 $219,068.00
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Revenue Projections (Appendix II) Based on Goldman Sachs market analysis report, and goal of 25% Market Segment Penetration in 3 Years, 65% in 6 Years.
Year Revenue Expectations 2016 2017 2018
2019
$2,700,000
2020 2021 2022 2023 2024 2025
$7,000,000 $12,900,000 $20,400,000 $29,500,000 $40,200,000 $56,250,000 $168,950,000.00
Notes Seed Funding Round Start of Phase 2 – Jan 2017 (or earlier) Series A Funding Round Start – Jan 2018 Start of Phase 3 – June 2018 Lyceum Alpha Release – June 2018 Lyceum Beta Release – January 2019 Start of Phase 4 – June 2019 Lyceum Public Launch – June 2019 First Full Year of Lyceum on Market 8% of Market Goal Reached
15% of Market Goal Reached 10 Year Revenue Projections
$56,250,000.00
$40,200,000.00 $29,500,000.00 $20,400,000.00 $12,900,000.00 $7,000,000.00 $2,700,000.00
2019
2020
2021
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2022
2023
2024
2025
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Milestones (Appendix III)
Seed Funding Round Completed
Phase Two Start o ITS Team Finalized / Personnel Hired o Collect Working Content Created For Dev. Use.
Use Content From Phase One
Generate Missing Content
o Apply for SBIR Grant (Dec. 2016)
Lyceum LMS Core Features Completed o Basic Content Database Structuring Completed o User Relationship Structure Completed o Basic Tracking Completed o Basic Reporting Completed o Develop Basic User Interface
First Content Module Completed o 3-4 VR Tours o 3-4 360° Videos o 1-2 Interactive VR Experiences o Integration of Outside Content o First Content Module Integrated Into Lyceum LMS
Test Cell Established o Identify 2-3 Classroom Environments with different demographics o Segment Classrooms into user groups o Provide & Assist Teachers in administrating assignments o Administer Assignments o Receive & Analyze results o Collect User Feedback o Write 1st Academic Research Paper
Combine Results into Actionable funding Package for Series A Funding Round
Complete Series A funding Round
Start Phase 3
Build Team o Build Team As Needed
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Start Content Creation o Develop 9 – 12 Module Tracts o 4 Content Teams Developing 2 – 3 Modules Each o Have 9-12 Full Modules Ready for Launch of Phase 4
Refine LMS Platform o Increase User Tracking and Reporting Functions o Develop Intuitive UI o Migrate from Development Servers to Production Ready Environment
Build Mobile App
NEED MORE INFO
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Market analysis (Appendix IV) U.S. Market Value Table Based on $25 Annual Student Subscription Student Population Size
Schools In US
5 - 8 Grade (Public)
14,841,000
98,000
151
$3,785.97
$371,025,000.00
9 - 12 Grade (Public & Private)
16,067,000
37,100
433
$10,826.82
$401,675,000.00
College / University
17,487,475
4,140
4,224
$105,600.69
$437,186,875.00
Total Potential Market Size
48,395,475
139,240
U.S. Segmentations
IMMERSIVE TECHNOLOGY STUDIOS - JUNE 2016
Avg. School Size
Average Annual Cost Per School
Total Market Value
$1,209,886,875.00
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Market Segmentation Table Based on Extrapolation of Goldman Sachs Market Segmentation Estimates. Year
GS User Market Adopters Estimate
% of US Student Population 1.2%
GS User Market Revenue
Per User Total Spend
$3,000,000.00
$5.00
ITS User % Target Based on GS Estimates 0
2016
600,000.00
2017
2,200,000.00
4.4%
$37,714,285.71
$17.14
2018
3,800,000.00
7.6%
$97,714,285.71
2019
5,400,000.00
10.8%
2020
7,000,000.00
2021
ITS User Target
ITS Annual Revenue Targets Based on $25 Subscription.
-
$0.00
0
-
$0.00
$25.71
0
-
$0.00
$185,142,857.14
$34.29
2%
108,000.00
$2,700,000.00
14.0%
$300,000,000.00
$42.86
4%
280,000.00
$7,000,000.00
8,600,000.00
17.2%
$375,123,809.52
$43.62
6%
516,000.00
$12,900,000.00
2022
10,200,000.00
20.4%
$452,685,714.29
$44.38
8%
816,000.00
$20,400,000.00
2023
11,800,000.00
23.6%
$532,685,714.29
$45.14
10%
1,180,000.00
$29,500,000.00
2024
13,400,000.00
26.8%
$615,123,809.52
$45.90
12%
1,608,000.00
$40,200,000.00
2025
15,000,000.00
30.0%
$700,000,000.00
$46.67
15%
2,250,000.00
$56,250,000.00
Red Values provided by Goldman Sachs 2016 VR Market Report on Education Sector. http://www.goldmansachs.com/our-thinking/pages/technology-driving-innovation-folder/virtual-and-augmented-reality/report.pdf
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