ENPH259Investorpitch– startingNov16!Structure

• Companydescription/mission(hook?)• Team• Marketopportunity(customerpain)• ProposedSolution• Advantage/Differentiation• Risks• Market• (Ask?,Impliedoutcome?)10minutes,teamsof4– eachpersonmustpresent.

1 |borealgenomics.com

Dr.AndreMarziali,Ph.D.,P.Eng.

Oct31,2017[Thisisafictionalpitchforinstructionalpurposes]

Pasta-2-goHighthroughput,highmargin,hotfoodvending

Collegelunch– thestudentperspectiveCrowded,expensive,andlowquality

§ 50min.lunchhour,30min.lineup=littletimetoeatorstudy

§ Typicalmealcost~$7-15

§ Often:

§ unhealthy(Fries)

§ lowquality(Sushi)

§ unpleasant(Salads)

Students’bestoptionistobringfoodfromhome

Thistakestimetoprepareandforethought

About2/3ofUBCstudentsdothiseachday

Approximatefinances• Lease=$160/day:Staff=$720/day• Mealssoldperday=400• COGS=$1,600• Revenue=$2,800:Profit=$320/day• Margin=11%

Collegelunch– thevendorperspectiveLowmargin,lowefficiency,largeunpenetratedmarket

§ 800sq.ft.– mostlykitchen

§ ~180sales/hr

§ Open8hrs/day

§ ~2hrspeakrush

§ 6staffrequiredduringpeak

Lowmargin

Seasonalfluctuation

Lostmarketopportunity

Background

Education:1989B.A.Sc.EngineeringPhysics,UBC1994Ph.D.Physics,Stanford

Employment:1998- Director,UBCEngineeringPhysics2007- President/CSO,BorealGenomics

Experience:§ 25yearsinautomationandengineeringdesign

§Molecularbiology,processdesign

§ Cookingandfoodscience

Team:§ Highlyskilled,testedteam

§ Engineering

§Molecularbiology

§ Productdevelopment

§MarketingandBD

AndreMarziali,Ph.D.,P.Eng.

Ourproposedsolution:Pasta-2-goFreshlymade,highqualitypastain10seconds

§Vendingmachineformat§ Lowfootprint

§ Easytoreplenish

§ Plumbedintowater/drainorstandalone

§Singleproductpermachine§ Allowssimpleandrapidoperation

§ Changeproductdaytoday

§Multiplemachinesallowcustomerchoice

§Appcontrolledscheduling§ Customerordersfoodfromapp

§ Foodpickupdonebybarcodeonphone

§ Paymentthroughapp

Pasta-2-go

Water Drypasta

Sauce(hot) Dispense

Boilingwaterloop

Timemeteredcookingregion

Mixing

§10mintotalprocesstime

§5-10seconddispensing

§ 5minstorageforunclaimedmeals

§Requireswater,drain,and2fills§Water

§ Pasta

§ Sauce(Varieddaily)

§ Drain(includingwastedisposal)

Highcostefficiency

60%Margin,$3perfreshmeal,Noline-ups

§ COGS(permeal)§Water $0

§ 100gpasta $0.20

§ 100gmeatsauce $1.00

§Revenueandmargin§ Pricepermeal $3

§ Revenue: $1,500/day

§ COGS: $600/day

§ Laborandlease: $25/day

§ Profit: $875/day

§Laborandlease§ 1hr /daytofill $20/day

§ Lease(25sq ft) $5/day

§Throughputandvolume§ Upto360meals/hr

§ 500mealsperday(50kgpasta)

Marketsizeandevolution(10%penetration)

UBC

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Q317 Q417 Q118 Q218 Q318 Q418

Revenue/qt

MealsSold/day

OthercollegesinBC

ExpansionoutsideofcollegesandtorestofCanada

NorthAmericanmarketestimatedtobe~$400M/yr

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Q317 Q417 Q118 Q218 Q318 Q418 Q119 Q219 Q319 Q419 Q120 Q220 Q320 Q420

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MealsSold/day

Risks

Risksaremainlymarketandoperational

§ UBCpermitsandbusinesspartnering§WillAMSFoodServicesbeamenabletoexploringthismodel?

§ CurrentlackofclarityaroundUBCfoodconstacts needstoberesolved

§ Technical§ Virtuallynotechnicalrisk– nomajorbreakthroughsrequired

§Marketrisks§Willstudentsuseit?

§ Willtherebeenoughstudentuptaketoprofitablysupportmachinerefillingandmaintenance?

Neartermgoals

§ De-riskUBC/AMSinteractionandpermits§ GeneratedraftcontractwithUBC,andgetestimateofplacementcost

§ MarketResearch§ Interview100undergraduates

§Prototypedevelopment§ Buildabreadboardprototypetotestbasicfunctionality

Raiseseedroundandgrantfundingfor: