Biomedical Innovation & Venture Creation

Running head: BIOMEDICAL INNOVATION & VENTURE CREATION
BIOMEDICAL INNOVATION & VENTURE CREATION
Name of the Student
Name of the University
Author note

1BIOMEDICAL INNOVATION & VENTURE CREATION
Executive summary:
The aim of the project is to evaluate a biomedical innovation and venture creation of a startup
biomedical manufacturing company name xyz Medicare. The target has been chosen as Saudi
Arabia. The report examined diverse business strategy include RAISON D’ETRE including
Mission Passion, Values; Market analysis including TAM, persona; VALUE CREATION
including Product Description, Problem, Quantified Value Proposition and others. This report
also examined product unit economics with the help COCA and LTV.

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

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4 COMPETITIVE ADVANTAGE............................................................................................13
4.1 Moats:..................................................................................................................................13
4.2 Core:....................................................................................................................................13
4.3 Competitive Positioning:.....................................................................................................14
5 CUSTOMER ACQUISITION....................................................................................................14
5.1 Decision Making Unit:........................................................................................................14
5.2 Customer Buying Process:...................................................................................................15
5.3 Windows of Opportunity:....................................................................................................16
5.4 Possible Triggers:................................................................................................................16
5.5 Regulatory Strategy:............................................................................................................16
5.6 Reimbursement Strategy:.....................................................................................................17
6 PRODUCT UNIT ECONOMICS...............................................................................................17
6.1 Business Model:................................................................................................................18
6.2 Pricing:.................................................................................................................................18
6.3 Short Term LTV..................................................................................................................18
6.4 Short Term COCA:..............................................................................................................19
6. 5 Medium Term LTV............................................................................................................19
6.6 Medium Term COCA..........................................................................................................20
6.7 Long Term LTV..................................................................................................................20
6.8 Long Term COCA...............................................................................................................20

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7 SALES....................................................................................................................................21
7.1 Preferred Sales Channel:...................................................................................................21
7.2 Sales Funnel:........................................................................................................................21
7.3 Short Term Mix:.................................................................................................................22
7.4 Medium Term Mix:..............................................................................................................22
7.5 Long Term Mix:...............................................................................................................23
8 OVERALL ECONOMICS.........................................................................................................23
8.1 Estimated R&D Expenses:..................................................................................................23
8.2 Estimated G&A Expenses:..................................................................................................23
8.3 LTV/ COCA Ratio:..............................................................................................................24
9 DESIGN & BUILD....................................................................................................................24
9.1 Key Assumptions:................................................................................................................25
9.2 Assumptions Tests:..............................................................................................................25
9.3 MVBP:.................................................................................................................................25
9.4 Tracking Metrics:.................................................................................................................26
10 SCALING..............................................................................................................................27
10.1 Product Plan for Beachhead Market:..............................................................................27
10.2 Next Market:...................................................................................................................27
10.3 Product Plan beyond Beachhead Market:.......................................................................28
10.4 Follow-on TAM:................................................................................................................28

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11 VENTURE FORMATION.......................................................................................................28
11.1 Stakeholders:......................................................................................................................29
11.2 Define Roles & Responsibilities:.......................................................................................29
11.3 Assign Roles & Responsibilities:......................................................................................29
11.4 Engagements:.....................................................................................................................30
11.5 Corporate Filings:..............................................................................................................31
11.6 Formation Agreements:.....................................................................................................31
12 CAPITALIZATION.................................................................................................................31
12.1 Capital Need:.....................................................................................................................31
12.2 Use of Funds:.....................................................................................................................32
12.3 Offering Type:...................................................................................................................33
12.4 Pre-Money Valuation:.......................................................................................................33
12.5 Post-Money Valuation:......................................................................................................33
12.6 Investor Profile:.................................................................................................................34
12.7 Investor Persona:...............................................................................................................34
12.8 Ten Investors:....................................................................................................................35
References......................................................................................................................................36

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RAISON D’ETRE
1.1 Mission:
The mission of this Saudi Arabia based XYZ Medicare is to offer the various diagnosis
and patient care products worldwide. The mission of this company is to provide all necessary
patient medial high-quality equipment such as imaging equipment’s for diagnosis to the local,
national and international market for the growth of the company. The current mission is to
expand as imaging equipment of Diagnosis Company in the global market which can enhance
their productivity significantly.
1.2 Passion:
The idea of established a biomedicine manufacturing and supplier company in Saudi
Arabia emerged in 2017. The main idea is to expand the company in a diverse field of
biomedical such as diagnosis equipment’s, acute care equipment and other health care
equipment’s. Therefore, throughout the journey, the company aim to provide innovative
equipment’s of diagnosis in the international business market.
1.3Values:
The company, XYZ Medicare follows three core values which are contributing to
flourish the business in the global market. These values include research-based development of
equipment’s, uplifting customer satisfaction and empowering internal strength of the company.
The research-based product development enhanced the company to develop an innovative

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product to provide the patient centric care. On the other hand, uplifting customer engagement
would be done through providing excellent product for to gain the revenue of the company.
Lastly, empowering internal strength of the company would be done through building strong
workforce and strengthen the interpersonal skills.
1.4 Initial Assets:
As a new startup company, the initial asset of the XYZ Medicare Company is the capital
and workforce. Therefore, to start up the new market in the global market as a biomedical
company, both expandability and workforce will act as major assets. Apart from that, the highly
innovative products for the diagnosis and high market reputation because of innovation will act
as an asset when competing with the rival company.
1.5 Initial Idea:
The initial idea of the company is to offer an innovative set of products of the diagnosis
to the market where they can gain enough potential market and growth and profitability. Since
the initial idea is to offer high-quality health care imaging diagnosis products to the global
market, the company is required to choose a business market where low biomedical
manufactures are present.
2 INITIAL MARKET