Biomedical Innovation and Venture Creation

Running head: BIOMEDICAL INNOVATION AND VENTURE CREATION
BIOMEDICAL INNOVATION & VENTURE CREATION
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1BIOMEDICAL INNOVATION AND VENTURE CREATION
Executive Summary
The mission of this report is to examine the Biomedical Innovation and Venture
creation of a completely new start-up Biomechanical company named ABC Medicine. The
target market has been chosen as Saudi Arabia. The product for the target market will be the
Diabetic diagnostic systems including cardiac monitoring and medicinal consumables. The
report examines various business strategies that include RAISON D’ETRE including Mission
Passion, Values; Market analysis including TAM, persona; VALUE CREATION including
Product Description, Problem, Quantified Value Proposition and others. Product Unit
Economics has been also analysed using COCA and LTV. The Market analysis has been
conducted, while projecting the financial estimations for next 5 to 10 years as a Biomedical
Manufacturer and seller in the market of Saudi Arabia. The product selection and promotion
strategy has been also discussed in this report.

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Table of Content
1 RAISON D’ETRE...................................................................................................................6
1.1 Mission:............................................................................................................................6
1.2 Passion:............................................................................................................................6
1.3 Values:..............................................................................................................................6
1.4 Initial Assets:....................................................................................................................7
1.5 Initial Idea:.......................................................................................................................7
2 INITIAL MARKET................................................................................................................7
2.1 Beachhead Market............................................................................................................7
2.2 End User Profile...............................................................................................................8
2.3 TAM:................................................................................................................................8
2.4 Persona:............................................................................................................................8
2.5 Ten Customers:................................................................................................................9
3 VALUE CREATION..............................................................................................................9
3.1 Use Case:..........................................................................................................................9
3.2 Product Description:.......................................................................................................10
3.3. Problem.........................................................................................................................10
3.4 Quantified Value Proposition:........................................................................................11
4 COMPETITIVE ADVANTAGE..........................................................................................12
4.1 Moats:.............................................................................................................................12
4.2 Core:...............................................................................................................................13

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4.3 Competitive Positioning:................................................................................................13
5 CUSTOMER ACQUISITIONS............................................................................................13
5.1 Decision Making Units:.................................................................................................13
5.2 Customer Buying Process:.............................................................................................14
5.3 Windows of Opportunity:..............................................................................................15
5.4 Possible Triggers:...........................................................................................................16
5.5 Regulatory Strategy:.......................................................................................................16
5.6 Reimbursement Strategy................................................................................................16
6 PRODUCT UNIT ECONOMICS.........................................................................................17
6.1 Business Model:.............................................................................................................17
6.2 Pricing:...........................................................................................................................17
6.3 Short Term LTV.............................................................................................................18
6.4 Short Term COCA:........................................................................................................18
6. 5 Medium Term LTV.......................................................................................................19
6.6 Medium Term COCA....................................................................................................19
6.7 Long Term LTV.............................................................................................................20
6.8 Long Term COCA..........................................................................................................20
7 SALES...................................................................................................................................21
7.1 Preferred Sales Channel:................................................................................................21
7.2 Sales Funnel:..................................................................................................................21
7.3 Short Term Mix:.............................................................................................................22

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7.4 Medium Term Mix:........................................................................................................22
7.5 Long Term Mix:.............................................................................................................22
8 OVERALL ECONOMICS....................................................................................................23
8.1 Estimated R&D Expenses:.............................................................................................23
8.2 Estimated G&A Expenses:.............................................................................................23
8.3 LTV/ COCA Ratio:........................................................................................................23
9 DESIGN & BUILD...............................................................................................................24
9.1 Key Assumptions:..........................................................................................................24
9.2 Assumptions Tests:........................................................................................................25
9.3 MVBP:...........................................................................................................................25
9.4 Tracking Metrics:...........................................................................................................26
10 SCALING...........................................................................................................................26
10.1 Product Plan for Beachhead Market:...........................................................................26
10.2 Next Market:................................................................................................................27
10.3 Product Plan Beyond Beachhead Market:....................................................................27
10.4 Follow-on TAM:..........................................................................................................27
11 VENTURE FORMATION.............................................................................................28
11.1 Stakeholders:................................................................................................................28
11.2 Define Roles & Responsibilities:.................................................................................28
11.3 Assign Roles & Responsibilities:.................................................................................29
11.4 Engagements:...............................................................................................................30

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11.5 Corporate Filings:.........................................................................................................30
11.6 Formation Agreements:................................................................................................30
12 CAPITALIZATION............................................................................................................31
12.1 Capital Need:................................................................................................................31
12.2 Use of Funds:...............................................................................................................31
12.3 Offering Type:..............................................................................................................32
12.4 Pre-Money Valuation:..................................................................................................32
12.5 Post-Money Valuation:................................................................................................33
12.6 Investor Profile:............................................................................................................33
12.7 Investor Persona:..........................................................................................................33
12.8 Ten Investors:...............................................................................................................34
References:...............................................................................................................................35

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1 RAISON D’ETRE
1.1 Mission:
The ABC Company is a healthcare organization that aimed to offer the consumers
with a good variety of pharmaceutical, diagnosis as well as patient care products across the
world. The mission of the organization is to provide all the required medical equipments as
well as drugs to both the residents of Saudi Arabia along with international consumers. The
current mission of the company is to expand the business is to expand its consumer base as
well as loyalty in Saudi Arabia so that in the recent future they can enjoy an enhancement n
their revenue.
1.2 Passion:
The ABC organization was published in the year 2015 as a pharmaceutical
manufacturing as well as supplier organization. Due to the superior quality of biochemical
products offered by the company at a highly affordable range, the company is gaining
reorganization in the healthcare industry of Saudi Arabia. Considering the fact that the nation
still lacks well equipped healthcare homes as well as technologically advanced biomedical
equipments, the passion of the company is to ensure a steady increment in the healthcare
service of Saudi Arabia.
1.3 Values:
The ABC Company possesses three chief values that are helping the company to
expand its business in Saudi Arabia. These values includes, uplifting consumer satisfaction,
research based development as well as implication of innovative ideas (Acs et al., 2016).
While the incorporation of innovative ideas as well as research based product development
helps the company to ensure high quality and innovative products that provides them with

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competitive advantage, the constant effort of the company to ensure maximum satisfaction of
the consumers helps the same to gain consumer loyalty.
1.4 Initial Assets:
When it comes to the initial assets of the company, it includes its extremely efficient
workforce. The ABC Company has arranged a prolonged process of selection in order to
ensure that only the best candidate is getting selected through the process. Not only this, the
organization has kept its salary scale a little higher than its competitors order to attract skilled
and experienced workers.
1.5 Initial Idea:
The initial idea off the organization is to incorporate innovative idea while developing
bio medical equipments. Off course, the management needs to invest a good amount of
financial capital for manufacturing technologically advanced products. Along with being
innovative, the organization also ensures the superior quality of their product. However, in
order to capture the market, the management of ABC company is keeping the price of their
product a little lower than its competitors.
2 INITIAL MARKET
2.1 Beachhead Market
The term beachhead market can be defined as the market which has its focus on a
narrow market space where a company can initiate its business with higher potential benefits.
In order to enhance their business in the Saudi Arabia, it is highly crucial for the management
of the ABC Company to set their beachhead market in a profitable location where the number
of consumer is high but the number of competitors is low (Shammari et al., 2016). Currently