Prototype Productions, Inc.
JHU/APL Patents & Pizza
Prototyping for Commercialization
September 6, 2007
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Commercialization
•Commercialization for APL
means selecting and working
with a commercial partner,
often through licensing.
•A successful prototyping
effort will improve the value
of the license and speed time
to market.
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Risk Reduction
•Licensing implies reduction in
risk for the licensee and
allows them to allocate their
in-house resources to other
projects or technologies.
•In order to commercialize and
bring technology out of the
lab, it must be made readily
accessible to the licensee.
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Best License Value
•Best license value:
– Most risk reduction
– Most direct fit for
commercial partner
•License value can be
negotiated based on maturity
of technology and risks that
have been addressed prior to
licensing.
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Experimentation
•Risk reduction requires
experimentation in the most
challenging areas of the
design.
•Effective prototyping is
critical to effective
experimentation.
•Successful experimental
results strengthen the license.
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Cost of Prototyping
•Prototyping can be costly:
– low volume
– no ability to amortize NRE
– High setup costs with
traditional methods
•Prioritize prototyping efforts:
– Does it further the core
technology?
– Does it improve value of
license?
– Functional or Cosmetic?
– Valuable experimentation?
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
So, In Summary…
•Prototype experimentally on
the riskiest aspects of design
first, to make best use of
funds.
•Keep the commercial partner
in mind when deciding what
needs to be prototyped.
• Carefully consider the
manufacturing methods used
in their existing products
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Mechanical Prototyping Methods in Detail
•Traditional metalworking
methods are well developed
and understood.
•Rapid prototyping has
recently become mature and
widely accepted. The methods
are well understood.
•Both methods have their
place and are often used in
combination.
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Traditional Metalworking Methods
Sheet Metal
Pros
•Accuracy
•Widespread Use
•Well Understood
•Durable
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Machining
&
Cons
•Cost Related to Complexity
•Lead Time in Weeks/Months
•Resource Constraints
•Limited Part Geometries
Recommendation
•Alternative: Design for manufacture from
plastic where possible, and utilize one of
three primary Rapid Prototyping methods
shown on the following pages.
•Plastic is widely used for manufacture of
fully commercialized (cost- reduced)
product, and demonstrates sophistication,
evolution of a design, and shows that cost
was considered during initial development.
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
RP with Stereolithography (SLA)
•Liquid Resin
•Photocured with Laser
Pros
•Lead time days, not weeks
•Most widely used
•Highly developed
•Lowest cost
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
&
Cons
•Limited material properties
•Brittle, non-functional parts
•Poor chemical compatibility
•Requires support structures
RP with Fused Deposition Modeling (FDM)
•Continuous melting, extruded plastic filament
Pros
•Lead time days, not weeks
•ABS, PC, PPS Materials
•Office-friendly equipment
•Lowest equipment cost
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
&
Cons
•Rough surface finish
•Speed related to complexity
•Poor chemical compatibility
•Requires support structures
RP with Selective Laser Sintering (SLS)
•Powdered material, fused together with a laser
…This is what we use…
Pros
&
•Lead time days, not weeks
•Rugged, functional parts
•Very good accuracy
•Nylon, Titanium, Stainless Steel
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Cons
•Needs paint for best finish
•Most expensive equipment
•Needs coating for watertight
•Industrial equipment install
Who is PPI?
• In the last 10 years, PPI has completed 66 products in various industries including:
• 13 Commercial and Medical – Immersion’s robotic surgical simulation training systems, including
I.V. Catheterization, Pacemaker Implantation, and Endoscopy. PPI and Immersion Medical were the
first commercially viable manufacturer of surgical simulators.
• 11 Industrial and Consumer - Airak’s fiber-optic sensing systems for utility and shipboard
applications, Privaris’ handheld biometric identification device, PowerGrid Fitness’ virtual reality
exercise equipment, Wireless Ventures’ Set-top-box, and Keynetik’s ruggedized PDA.
• 12 Biotech - Edge Biosystems’ automated preparation systems for PCR, JHU/APL’s intelligent
sample processing systems for biological agent detection, Frito-Lay’s visual inspection systems for
FDA food processing environments, and Bausch & Lomb’s contact lens manufacturing center.
• 30 Aerospace and Defense - SureScan solid-state CT-based baggage inspection system,
ruggedized machine vision system for United Defense mobile Howitzer artillery platform, US Army
ARL autonomous package delivery system, Special Forces remote monitoring and sensing platform.
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
A Diverse Product Development Company
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
Prototype Productions Ventures, LLC
(PPIV)
Investment and Commercialization
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
PPI + PPIV
PPIV views PPI as IP/startup filtration engine
PPIV commercializes filtered projects
PPIV primary screening criteria:
Potential for VC-like return on investment
PPIV owns a minimum of 50% upon investment
Device-base companies, web-based software but
PPIV will be opportunistic (e.g. food tech)
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
PPI/PPIV Model
I. Internal (PPI )IP
PPI
• SBIRs
• Design
• Spot Opportunities
• Prototyping
• Manufacturing
CONCEPT TO
COMMERCIALIZATION
II. Third-Party IP
•Universities, Gov’t labs
•Joint Ventures (Food Tech)
•M&A (NPI)
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved
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Seed Financing
Business Plans
Valuation
Business Development
Capital raising
M&A
PPIV
•Liquidity
events
•Licensing
Revenue
•Dividends
Contact Information
Ben Feldman
Vice President, Product Development
703.858.0011 x304
[email protected]
Prototype Productions, Inc.
21641 Beaumeade Circle
Suite 301
Ashburn, VA 20147
703.858.0011
www.protoprod.com
© Copyright 2007, Prototype Productions, Incorporated. All rights reserved