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28 October 2010 Moscow School of Management
SKOLKOVO
1
mHealth
Irina Linnik
Dmitry Yurchenko
Sergey Pavlovskiy
Alexander Khomenko
Personal Emergency Response System
Do you know that?!
29.01.2015 Moscow School of Management SKOLKOVO 2
Could Live
Do you know that?!
>18 mln Russian are over 65 years old
40% will fall this year
Fall is #1 cause of death
29.01.2015 Moscow School of Management SKOLKOVO 3
Do you know that?!
29.01.2015 Moscow School of Management SKOLKOVO 4
1-st four hours are the most critical
Immediate assistance reduces
hospitalization by 26%
death by 80%
29.01.2015 Moscow School of Management SKOLKOVO 5
Keeping your family safe
wherever you are
PERS - Personal Emergency
Response System
29.01.2015 Moscow School of Management SKOLKOVO 6
Old family
member
WeYou
Monthly payment
“Selling the Guilt”
SOS
Check
call
Call
Visit
Call to neighbor
Web-Camera
Emergency call
Nurses
Care
agreement
fee per visit
Call
Visit, emergency call
Cash flows & Breakeven
You We
Gadget sale, 1 Unit
$200
Monthly fee, 1 client
$30 * 12 = $360
Maintain costs
$8 * 12 = $96
Annual Revenue
$560, per client
Annual variable costs
$280, per client
Annual profit per client $280
Fixed costs $200k * 12 = $2400K / $280 ≈ 8500 clients
Market size estimation
29.01.2015 Moscow School of Management SKOLKOVO 8
680K potential clients
$250 mln potential market size
0
10
20
30
40
50
60
70
2010 2025
Russia
USA
0
500
1000
1500
2000
2010 2013
Quantity of Seniors over 65 yo, mln Annual revenue, $mln
3.75%
Seniors
9.5%
Seniors
3.75%
Seniors
Is your car
safe?
29.01.2015 Moscow School of Management SKOLKOVO 9
Key players
Current users
Value
proposed
What about your
parents?
>10 companies in 10 years
0.5M in Moscow
10% growth per year
Distribution
channels
Auto dealers
Insurance companies
No
NO, with >1M potentiality
Price $0.5–3K unit price
$30-100K monthly
$0.1–3K unit price
$20-50K monthly
Doctors, Senior care comp,
Insurance companies
Alarm, GPS + call
center
Alarm, GPS + call
center
Competitors or Partners?
29.01.2015 Moscow School of Management SKOLKOVO 10
Features Philips Car security REDKLEVER
Auto Fall Detector ✔ from 03/2010 - ✔
Panic button ✔ ✔ ✔
Voice-to-Voice ✔ - ✔
Fix line/mobile Fixed ONLY Mobile ONLY Fixed & Mobile
Geo-location - ✔ ✔
Additional services - - ✔
Installation required - - ✔
Battery duration 14-18 months > 2 years 1-2 days
Quantity of Clients
& Annual Revenue
(#1) ≈750’000 &
Est. ≈$370 mln
>500’000 &
>$700 mln
150’000 &
$60 mln
29.01.2015 11
Potential partners
Infrastructure Sales ChannelsProduct
Technological partner Skolkovo team
The Team
12/10/10 Moscow School of Management SKOLKOVO 12
Dmitry
Yurchenko
Sergey
Pavlovskiy
Irina
Linnik
Alexander
Khomenko
- Marketing professional
- 6 years in banking retail
- 5 years in Investment Banking
- Co-founder of AdOffer Company
- Finance professional
- Serial entrepreneur: AdOffer, Mayka
- Strategic management proff.
- Start-ups experience
Partner with Tech
infrastructure, IP, CTO
Go-to-Market strategy
29.01.2015 Moscow School of Management SKOLKOVO 13
Jun 2011
Dec 2011
Dec 2012
Dec 2014
Partnering
Product
Packaging
Certification
$3M Invested
$0.5 revenue
500 clients
$1.2M Profit
$7M revenue
10’000 clients
First Sales
(insurance co,
doctors, direct)
Moscow
High segment
Partnering with
mobile operator
St. Petersburg
Mid segment
$12.5M Profit
$30M revenue
40’000 clients
Expansion &
Scaling
Remote health
monitoring
Health Life-Style
Financial Estimations
29.01.2015 Moscow School of Management SKOLKOVO 14
-10,000
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2011 2012 2013 2014 2015
Sales, units
Revenue, $000
Net profit, $000
Call for action
Now: Team, Initial product, Partners’ network
Need: $3M of venture capital
For: Marketing & Sales, Product Development
2015: $100M company value
Exit: Sales to strategic investor (Phillips, …) / MBO
29.01.2015 Moscow School of Management SKOLKOVO 15
Customer segmentation
29.01.2015 Moscow School of Management SKOLKOVO 16
- Economizing
- Optimizing
- Buying the best120K 350K
100K 290K
30K 90K
65-70 Over 70
0.85–22–5>5
Relativessalary,$000permonth
Senior’s age
37%30%9%
Number of potential PERS users in Moscow
29.01.2015 Moscow School of Management SKOLKOVO 17
Product packages
Base Alarm System:
- Panic button
- Fall detector
- Voice-to-Voice
- 24/7 call-center
Advanced functions:
- GPS tracking
- Vital signs sensors
- Fire, gas sensors
VIP services:
- VIP emergency
- Web camera
- Smart phone app
Gadgets are available We tested products and going to submit patent

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M health 2.1

  • 1. 28 October 2010 Moscow School of Management SKOLKOVO 1 mHealth Irina Linnik Dmitry Yurchenko Sergey Pavlovskiy Alexander Khomenko Personal Emergency Response System
  • 2. Do you know that?! 29.01.2015 Moscow School of Management SKOLKOVO 2 Could Live
  • 3. Do you know that?! >18 mln Russian are over 65 years old 40% will fall this year Fall is #1 cause of death 29.01.2015 Moscow School of Management SKOLKOVO 3
  • 4. Do you know that?! 29.01.2015 Moscow School of Management SKOLKOVO 4 1-st four hours are the most critical Immediate assistance reduces hospitalization by 26% death by 80%
  • 5. 29.01.2015 Moscow School of Management SKOLKOVO 5 Keeping your family safe wherever you are
  • 6. PERS - Personal Emergency Response System 29.01.2015 Moscow School of Management SKOLKOVO 6 Old family member WeYou Monthly payment “Selling the Guilt” SOS Check call Call Visit Call to neighbor Web-Camera Emergency call Nurses Care agreement fee per visit Call Visit, emergency call
  • 7. Cash flows & Breakeven You We Gadget sale, 1 Unit $200 Monthly fee, 1 client $30 * 12 = $360 Maintain costs $8 * 12 = $96 Annual Revenue $560, per client Annual variable costs $280, per client Annual profit per client $280 Fixed costs $200k * 12 = $2400K / $280 ≈ 8500 clients
  • 8. Market size estimation 29.01.2015 Moscow School of Management SKOLKOVO 8 680K potential clients $250 mln potential market size 0 10 20 30 40 50 60 70 2010 2025 Russia USA 0 500 1000 1500 2000 2010 2013 Quantity of Seniors over 65 yo, mln Annual revenue, $mln 3.75% Seniors 9.5% Seniors 3.75% Seniors
  • 9. Is your car safe? 29.01.2015 Moscow School of Management SKOLKOVO 9 Key players Current users Value proposed What about your parents? >10 companies in 10 years 0.5M in Moscow 10% growth per year Distribution channels Auto dealers Insurance companies No NO, with >1M potentiality Price $0.5–3K unit price $30-100K monthly $0.1–3K unit price $20-50K monthly Doctors, Senior care comp, Insurance companies Alarm, GPS + call center Alarm, GPS + call center
  • 10. Competitors or Partners? 29.01.2015 Moscow School of Management SKOLKOVO 10 Features Philips Car security REDKLEVER Auto Fall Detector ✔ from 03/2010 - ✔ Panic button ✔ ✔ ✔ Voice-to-Voice ✔ - ✔ Fix line/mobile Fixed ONLY Mobile ONLY Fixed & Mobile Geo-location - ✔ ✔ Additional services - - ✔ Installation required - - ✔ Battery duration 14-18 months > 2 years 1-2 days Quantity of Clients & Annual Revenue (#1) ≈750’000 & Est. ≈$370 mln >500’000 & >$700 mln 150’000 & $60 mln
  • 11. 29.01.2015 11 Potential partners Infrastructure Sales ChannelsProduct Technological partner Skolkovo team
  • 12. The Team 12/10/10 Moscow School of Management SKOLKOVO 12 Dmitry Yurchenko Sergey Pavlovskiy Irina Linnik Alexander Khomenko - Marketing professional - 6 years in banking retail - 5 years in Investment Banking - Co-founder of AdOffer Company - Finance professional - Serial entrepreneur: AdOffer, Mayka - Strategic management proff. - Start-ups experience Partner with Tech infrastructure, IP, CTO
  • 13. Go-to-Market strategy 29.01.2015 Moscow School of Management SKOLKOVO 13 Jun 2011 Dec 2011 Dec 2012 Dec 2014 Partnering Product Packaging Certification $3M Invested $0.5 revenue 500 clients $1.2M Profit $7M revenue 10’000 clients First Sales (insurance co, doctors, direct) Moscow High segment Partnering with mobile operator St. Petersburg Mid segment $12.5M Profit $30M revenue 40’000 clients Expansion & Scaling Remote health monitoring Health Life-Style
  • 14. Financial Estimations 29.01.2015 Moscow School of Management SKOLKOVO 14 -10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2011 2012 2013 2014 2015 Sales, units Revenue, $000 Net profit, $000
  • 15. Call for action Now: Team, Initial product, Partners’ network Need: $3M of venture capital For: Marketing & Sales, Product Development 2015: $100M company value Exit: Sales to strategic investor (Phillips, …) / MBO 29.01.2015 Moscow School of Management SKOLKOVO 15
  • 16. Customer segmentation 29.01.2015 Moscow School of Management SKOLKOVO 16 - Economizing - Optimizing - Buying the best120K 350K 100K 290K 30K 90K 65-70 Over 70 0.85–22–5>5 Relativessalary,$000permonth Senior’s age 37%30%9% Number of potential PERS users in Moscow
  • 17. 29.01.2015 Moscow School of Management SKOLKOVO 17 Product packages Base Alarm System: - Panic button - Fall detector - Voice-to-Voice - 24/7 call-center Advanced functions: - GPS tracking - Vital signs sensors - Fire, gas sensors VIP services: - VIP emergency - Web camera - Smart phone app Gadgets are available We tested products and going to submit patent