1. Magma
Arnaud Dusser Dan Slotcavage Renato MeloniJerónimo Emiliano
García De Brahi
Week 0:
Our technology allows customers to switch glass
between transparent and opaque states
Week 10:
We offer OEMs a luxury sunroof experience to
differentiate their vehicles
Total Interviews: 117
Market type: New Market
2. Formation of Magma
Magma started with
Dan’s PhD research in
the McGehee Lab...
… and formed around experts in
each potential customer segment.
3. Team Members
Jerónimo Emiliano
García De Brahi
Arnaud Dusser
Dan Slotcavage Renato Meloni
● MSx, Master of Science in
Management for Experienced Leaders
‘17
● More than 15 years of experience
related to the automotive industry
(target market of this project)
● Automotive Expert
● MSx, Master of Science in
Management for Experienced Leaders
‘17
● Experience in funding and venture
projects related to renewable energy
● MS in Sustainable Design and
Construction (Civil Engineering)
● Experience in residential and
commercial development/construction
● PhD in Materials Science and
Engineering
● Technology Expert, based on his PhD
research
● Team mentor
● Cofounder, CSO, Chief Strategist
at LightSail Energy
Danielle Fong
11. Hypothesis: Our product is for buildings.
No More
Blinds
No More
Glare
Energy
Savings
Interviewed 42 building professionals/customers:
Architects, Builders, Developers, Homeowners
12. Hypothesis: Our product is for buildings.
No More
Blinds
No More
Glare
Energy
Savings
Interviewed 42 building professionals/customers:
Architects, Builders, Developers, Homeowners
13. “
If money wasn’t an issue
we would install dynamic
glass in other projects,
but right now it’s simply
too expensive.
Mike Messick,
PM @ DPR Construction.
Current products are too expensive
14. Lengthy building construction channels
offer many opportunities to cut us out!
Owner/ Real
Estate Developer
Engineering
Architecture General
Contractor
Subcontractors
Subcontractors
Completed
Commercial Building
Glazier
subcontractor
IGU
manufacturer
Window
ManufacturerMagma
Magma Magma
15. Owner/ Real
Estate Developer
Engineering
Architecture General
Contractor
Subcontractors
Subcontractors
Completed
Commercial Building
Glazier
subcontractor
IGU
manufacturer
Window
ManufacturerMagma
Magma Magma
Two players to convince
Lengthy building construction channels
offer many opportunities to cut us out!
16. Owner/ Real
Estate Developer
Engineering
Architecture General
Contractor
Subcontractors
Subcontractors
Completed
Commercial Building
Glazier
subcontractor
IGU
manufacturer
Window
ManufacturerMagma
Several actors require
training to build/install
the product properly
Lengthy building construction channels
offer many opportunities to cut us out!
17. Owner/ Real
Estate Developer
Engineering
Architecture General
Contractor
Subcontractors
Subcontractors
Completed
Commercial Building
Glazier
subcontractor
IGU
manufacturer
Window
ManufacturerMagma
Magma Magma
Premium product is easy
to value engineer out at
end of project
4 5 6
1 2
3
Lengthy building construction channels
offer many opportunities to cut us out!
18. Owner/ Real
Estate Developer
Engineering
Architecture General
Contractor
Subcontractors
Subcontractors
Completed
Commercial Building
Glazier
subcontractor
IGU
manufacturer
Window
ManufacturerMagma
Magma Magma
Premium product is easy
to value engineer out at
end of project
4 5 6
1 2
3
Lengthy building construction channels
offer many opportunities to cut us out!
19. We also looked at alternative, niche markets
YACHTS JETS
AR / VR RVs
WEEK 2
20. Hypothesis: Our product is for luxury vehicles
No More
Shades
Elegance
Heat and
Glare
Control
Interviewed 60 automotive experts/customers:
OEMs, Tier-1/2 Suppliers, Dealers, Luxury car owners
21. Less fragmented market
Strong value proposition
Why the Automotive Industry?
Access to knowledge
and resources
1 BMW model
=
1,470 individual homeowners
22. “
Glass is one of the
materials where we would
like to innovate but we
don’t receive proposals
from our suppliers.
Carlos Paredes, Chief
Purchasing Officer @ Magna
Cosma.
No clear leader in automotive glass tech
23. Key Stakeholders
IP
Fundraising
(1st round)
Prototyping
Fundraising
(2nd round)
Facility
OEM/Tier 1
Contracts
Provisional Patent
Lab-scale Prototype
Company
Creation
Funding
Prototype
Optimization
Testing material
production
OEMs VC (or
traditional VC)
Confirm OEMs
interest
Size Confirmation
Build or
Subcontract?
Certification /
Trials
Commercial
Negotiation
Terms and
Conditions
SUPPLY
University
Grant Agencies /
Government
VC arm OEMs
VC and Investors
OEM Partners
Tier 1 Partners
Glass Producer
Partners
Material
Suppliers
$
$
$$
$$$
$$$
$$$
Lab
Technical Expertise
Funding
Funding
Chemists
Lab / Equipment
Materials
Contacts
Funding
Manufacturing
Capacity
Engineers
Manufacturing
Capacity
Engineers
Legal Expertise
Regulatory
Approval
Labor
Regulatory
Approval
Labor
Contacts
Resources
Activities
Tasks
Partners
We found specific
key players
25. • OEMs
• VC arms OEMs
• Glass Producers
• Tier 1
• Tier 2
• Research Labs
• Luxury cars and new
companies in the
Market
• Keep customers cool
and comfortable
• Block glare when
sunny, allow light
when desired
• Cool: Almost no cars
with similar feature
• OEMs, specifically
for luxury, need to
differentiate
• Become a Tier 2,
partnering with OEM
and Glass Producer
The Automotive Approach
26. TAM, SAM and Year 7 Revenues
# Cars manufactured in US/year: 12M cars
% luxury + crossovers luxury vehicles: 20%
BMW, GM (example assumed first adopters): 25%
% of first adopters’ vehicles (BMW X5/6 series/Lincoln): 25%
Smart glass/vehicle: 10 SqFt
Revenue/sqft: $40
Year 7 revenue potential
12M * 20% * 25% * 25% * 10 SqFt * $40/SqFt = $60M
10 SqFt5 SqFt
5 SqFt 5 SqFt
5 SqFtTAM:
$ 7,260 M
SAM:
$ 960 M
Year 7
Revenue:
$ 60 M
28. Research and Development Pilot Certification and Scale
Our path from prototyping to scaling and
productionKEYMILESTONES
29. Research and Development Pilot Certification and Scale
Financial / Operations TimelineKEYMILESTONES
$350k
1ft x1ft. prototype
30. Research and Development Pilot Certification and Scale
Financial / Operations TimelineKEYMILESTONES
$500k
Full 0.6m x 1m
prototype
31. Research and Development Pilot Certification and Scale
Financial / Operations TimelineKEYMILESTONES
$3M
Scale our
production of
prototypes and
develop full pilot
line
32. We may be a “shiny object” to glass
companies
Competitor
Glass company
involved in funding
Amount/Date
$65M
Jan. 2017
$100M
Jan. 2017
Acquired
March 2012
33. What’s next?
Building bigger prototype and patenting IP
using Stanford resources
Working on further interviews w/OEMs to
make a decision about moving forward
Moving on to work in the sustainable
construction industry
Moving on to work in the finance industry
but will continue being involved with the
company as an external advisor
35. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical
Center)
• Glass manufacturers
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Large-scale development of
window production
• File patents
• Acquire funding for prototype
• Develop manufacturing
capability
• Lab / manufacturing
facilities
• Process engineers
• Corporate VCs
(OEMs)
• Manufacturing
specialists
• Less glare: Increased
comfort for occupant of
vehicle
• Decreased solar heat
gain and potential
energy saving from
decreased A/C
• Removal of blinds and
shades: less parts to
produce a car and/or
greater cleaning ease
• Maintain expansive view
• Act as supplier and
provide product support
• Word of mouth
generation
• Trade shows
• Automotive OEMs
and tier 1 and parts
suppliers
• Module sale to
suppliers/tier 1 OEMs
• Labor (assembly line workers, engineers, management)
• Capex (pilot line equipment, full production line, space)
• Materials (supplies for construction of window)
• Smart glass (1 pane) sales to tier 1 OEM
Week 9
39. Projected Revenue: Automotive
# Cars manufactured in US/year: 12M cars
% luxury + crossovers luxury vehicles: 20%
BMW, GM (example assumed first adopters): 25%
% of first adopters’ vehicles (BMW X5/6 series/Lincoln): 25%
Glass/vehicle: 30 sqft
Glass/vehicle that is smart: 30%
Revenue/sqft: $40
Year 7 revenue potential
12M * 20% * 25% * 25% * 10 sqft * $40/sqft = $60M
Luxury
Source: IHS
10 sq ft5 sq ft
5 sq ft 5 sq ft
5 sq ft
Crossover
Midsize car
Small car
Pickup
SUV
Van
Large car
11.1
11.6
12.0 12.3 12.1 12.1
40. Products / Services
• Tunable transparency
sunroofs
• Controls for variable
amounts of transmission
(including automatic
option)
Pain relievers
• Solar heating resolved
• Customers don’t have
to choose just one tint
Gains Creators
• Highly infrared reflective
technology
• Ability to go fully dark
• Neutral coloring
• Less parts needed to
produce a car
Value Proposition: Luxury Automotive Customer Segment: Automotive OEMs and part
producers
Pains
• Sunroofs only exist in static tint
• Heat through windows/sunroof can
be uncomfortable
• Light through windows/sunroof can
be blinding (dangerous)
• Have to sacrifice views for
darkness
• Removal of blinds and shades: less
parts to produce a car or greater
cleaning ease (But potentially
removing good acoustics?)
Gains
• Passengers can choose desired
opacity
• View is preserved at all light
intensities
• More temperature comfort (avoid
heating)
• Aesthetic appeal
• Differentiation
Customer Jobs
• Make automobiles
sleek and sexy
• Make passengers as
comfortable as
possible
• Offer innovation in
aesthetics and
comfort
Value Proposition Canvas Week 8
42. • Automotive companies /
parts suppliers
(specifically we have
connections with main
automotive OEMs,
General Motors
Research and Aisin
Technical Center)
• Large residential /
commercial construction
developers (relationships
with Irvine Company and
Build SF) and architects
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
Week 1
• Understanding of
specific customer
demands for product
• Large-scale
development of
window production
• Lab / manufacturing
facilities
• Process engineers
• Cheaper than existing
electrochromics
• Better and more
Functional aesthetics:
better transparency
without blue hues
• Significant energy
savings (reflect
infrared light,
keeping spaces
cooler)
• Durability (technology
is based in metal
electrodeposition,
and light won’t
degrade the metals)
Our customers expect
us to act as a supplier
• We create value for
any window
application.
Automotive and
aerospace
manufacturers as well
as residential and
commercial
construction all
benefit from our
technology.
Traditional B2B
interactions.
We have already been
approached by
automotive suppliers
• Materials costs (glass, ITO deposition, chemical salts)
Development / construction of manufacturing line
(including space for facility)
• Process engineers
• Technology licensing to automotive / aerospace
manufacturers
• Window sales to construction developers
43. • Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical Center)
• Large residential /
commercial construction
developers (relationships
with Irvine Company and
Build SF) and architects
• Aviation Companies
• Niche consumers: Pilots,
Motorcycle drivers, Bikers
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
Week 2
• Understanding of
specific customer
demands for product
• Large-scale
development of
window production
• Lab / manufacturing
facilities
• Process engineers
• Cheaper than existing
electrochromics
• Better and more
Functional aesthetics:
better transparency
without blue hues
• Significant energy
savings (reflect
infrared light,
keeping spaces
cooler)
• Durability (technology
is based in metal
electrodeposition,
and light won’t
degrade the metals)
• Our customers
expect us to act as a
supplier
• We create value for
any window
application.
Automotive and
aerospace
manufacturers as well
as residential and
commercial
construction all
benefit from our
technology.
• Niche consumers:
Pilots, Motorcycle
drivers, Bikers
• Traditional B2B
interactions.
• We have already
been approached by
automotive suppliers
• Materials costs (glass, ITO deposition, chemical salts)
Development / construction of manufacturing line
(including space for facility)
• Process engineers
• Technology licensing to automotive / aerospace
manufacturers
• Window sales to construction developers
• Sell lense and helmet to niche markets
44. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical Center)
• Large residential /
commercial construction
developers (relationships
with Irvine Company and
Build SF) and architects
• Aviation Companies
• Niche consumers: Pilots,
Motorcycle drivers, Bikers
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Understanding of
specific customer
demands for product
• Large-scale
development of
window production
• Lab / manufacturing
facilities
• Process engineers
• Cheaper than existing
electrochromics
• Better and more Functional
aesthetics: better
transparency without blue
hues
• Significant energy savings
(reflect infrared light,
keeping spaces cooler)
• Durability (technology is
based in metal
electrodeposition, and light
won’t degrade the metals)
• Our customers
expect us to act as a
supplier
• We create value for any
window application.
Automotive and
aerospace
manufacturers as well
as residential and
commercial
construction all benefit
from our technology.
• Niche consumers:
Pilots, Motorcycle
drivers, Bikers
• Traditional B2B
interactions.
• We have already
been approached by
automotive suppliers
• Materials costs (glass, ITO deposition, chemical salts)
Development / construction of manufacturing line
(including space for facility)
• Process engineers
• Technology licensing to automotive / aerospace
manufacturers
• Window sales to construction developers
• Sell lenses and helmet to niche markets
Week 3
45. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical Center)
• Large residential /
commercial construction
developers (relationships
with Irvine Company and
Build SF) and architects
• Aviation Companies
• Niche consumers: Pilots,
Motorcycle drivers, Bikers
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Understanding of
specific customer
demands for product
• Large-scale
development of
window production
• Lab / manufacturing
facilities
• Process engineers
• Less glare: Increased
comfort for occupant of
building or vehicle
• Removal of direct
sunlight allows for an
increase of floor space
usage
• Decreased solar heat
gain and potential energy
saving from decreased
A/C
• Removal of blinds and
shades: less parts to
produce a car and/or
greater cleaning ease
• Maintain expensive view
• Our customers expect us
to act as a supplier
• Act as supplier and
provide product support
• Commercial real
estate buyers
(developers//clients)
• Automotive OEMs
and tier 1 and parts
suppliers
• Niche consumers:
Pilots, Motorcycle
drivers, Cyclists, RVs
and Yachts
• Traditional B2B
interactions.
• We have already been
approached by
automotive suppliers
• Module sale to
suppliers/tier 1 OEMs
• Sales to commercial
developers
• Materials costs (glass, ITO deposition, chemical salts)
Development / construction of manufacturing line
(including space for facility)
• Process engineers
• Technology licensing to automotive / aerospace manufacturers
• Sunroof sales to automotive manufacturers (tier 1, OEMs)
• Window sales to construction developers
• Sell lenses and helmet to niche markets
Week 4
46. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical
Center)
• Large residential /
commercial construction
developers (relationships
with Irvine Company and
Build SF) and architects
• Aviation Companies
• Niche consumers: Pilots,
Motorcycle drivers, Bikers,
RV or Yacht owners
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Understanding of
specific customer
demands for product
• Large-scale
development of
window production
• Lab / manufacturing
facilities
• Process engineers
• Less glare: Increased
comfort for occupant of
building or vehicle
• Removal of direct
sunlight allows for an
increase of floor space
usage
• Decreased solar heat
gain and potential
energy saving from
decreased A/C
• Removal of blinds and
shades: less parts to
produce a car and/or
greater cleaning ease
• Maintain expansive view
• Act as supplier and
provide product support
• Word of mouth
generation
• Trade shows
• Commercial real
estate buyers
(developers//clients)
• Automotive OEMs
and tier 1 and parts
suppliers
• Niche consumers:
Motorcycle drivers,
RV and Yachts (as
starting point)
• Module sale to
suppliers/tier 1 OEMs
• Sales to commercial
developers
• Materials costs (glass, ITO deposition, chemical salts)
Development / construction of manufacturing line
(including space for facility)
• Process engineers
• Sunroof sales to automotive manufacturers (tier 1, OEMs)
• Window sales to construction developers
Week 5
47. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical
Center)
• RV or Yacht owners
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Understanding of
specific customer
demands for product
• Large-scale
development of
window production
• Lab / manufacturing
facilities
• Process engineers
• Less glare: Increased
comfort for occupant of
vehicle
• Decreased solar heat
gain and potential
energy saving from
decreased A/C
• Removal of blinds and
shades: less parts to
produce a car and/or
greater cleaning ease
• Maintain expansive view
• Act as supplier and
provide product support
• Word of mouth
generation
• Trade shows
• Automotive OEMs
and tier 1 and parts
suppliers
• Niche consumers:
Motorcycle drivers,
RV and Yachts (as
starting point)
• Module sale to
suppliers/tier 1 OEMs
• Materials costs (glass, ITO deposition, chemical salts)
Development / construction of manufacturing line
(including space for facility)
• Process engineers
• Sunroof sales to automotive manufacturers (tier 1, OEMs)
Week 6
48. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical
Center)
• RV or Yacht owners
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Understanding of specific
customer demands for product
• Large-scale development of
window production
• File patents
• Acquire funding for prototype
• Develop manufacturing
capability
• Lab / manufacturing
facilities
• Process engineers
• Corporate VCs
(OEMs)
• Manufacturing
specialists
• Less glare: Increased
comfort for occupant of
vehicle
• Decreased solar heat
gain and potential
energy saving from
decreased A/C
• Removal of blinds and
shades: less parts to
produce a car and/or
greater cleaning ease
• Maintain expansive view
• Act as supplier and
provide product support
• Word of mouth
generation
• Trade shows
• Automotive OEMs
and tier 1 and parts
suppliers
• Niche consumers:
Motorcycle drivers,
RV and Yachts (as
starting point)
• Module sale to
suppliers/tier 1 OEMs
• Process engineers
• Materials costs (glass, ITO deposition, chemical salts)
• Development / construction of manufacturing line
(including space for facility)
• Sunroof sales to automotive manufacturers (tier 1, OEMs)
Week 7
49. Business Model Canvas
• Automotive companies /
parts suppliers (specifically
we have connections with
main automotive OEMs,
General Motors Research
and Aisin Technical
Center)
• Glass manufacturers
• RV or Yacht owners
Key Suppliers:
• Glass manufacturers
• Material suppliers
• Deposition tool suppliers
• Large-scale development of
window production
• File patents
• Acquire funding for prototype
• Develop manufacturing
capability
• Lab / manufacturing
facilities
• Process engineers
• Corporate VCs
(OEMs)
• Manufacturing
specialists
• Less glare: Increased
comfort for occupant of
vehicle
• Decreased solar heat
gain and potential
energy saving from
decreased A/C
• Removal of blinds and
shades: less parts to
produce a car and/or
greater cleaning ease
• Maintain expansive view
• Act as supplier and
provide product support
• Word of mouth
generation
• Trade shows
• Automotive OEMs
and tier 1 and parts
suppliers
• Niche consumers:
Motorcycle drivers,
RV and Yachts (as
starting point)
• Module sale to
suppliers/tier 1 OEMs
• Labor (assembly line workers, engineers, management)
• Capex (pilot line equipment, full production line, space)
• Materials (supplies for construction of window)
• Sunroof sales to automotive manufacturers (tier 1, OEMs)
• Smart glass (1 pane) sales to tier 1 OEM
Week 8