20150617 doe deck_living_ink

What is the most expensive liquid we buy?

4,200 gallons of gasoline

2,900 gallons of milk

Conventional Ink Composition: Pigments

20%

Black pigment is incomplete combustion of heavy petroleum

2500 B.C.

Cancer causing

Conventional Ink Composition: Pigments

Conventional Ink Composition:

80%

Conventional Ink Composition: Oil

1. Expensive

2. Human Health Hazards

3. Environmental Issues

Problem with Petroleum-based Ink

The Solution

1. Cheaper

2. Healthy for Humans

3. Renewable

Value Proposition for Algae-Based Ink

Promotional Products

Decorative

Commercial

Packaging

Greeting Cards

Household

Verticals

Algae Ink

Industrial Ink : $15 Billion

24%

19%

10%9%

9%

7%

22%

Others

22%

15%

13%

9%

41%

Non-Industrial Inkjet Ink: $70 B

Others

Ink Technology #2

Upon Opening

Upon Opening

100X

100X

DIY Greeting Card

Algae Pen Paper

Day 1

Day 1 Day 3

Greeting Card Value Proposition:

Interesting, unique ink that provides sticky messaging for engaging greeting cards

Go-to-Market: Licensing Partnership

Marketing

Distributi

on

Sales

Research and

Development

Intellectual Property

Produce and Sell Algae

Ink

Greeting Card Market: $8 B

Target Market = $425M

Other

“We wanted to get credit for doing something buzzworthy. We want the consumer to say, ‘Wow. This is different”

Jack Moore, Hallmark Gold Crown

president

83.2%

I am willing to pay $10 or more for a card.

81.3%

I like the card because it is unique and can be personalized.

Scott Fulbright

Steve Albers

Team

Strategic Advisory Board

Seeking additional advisors

Business Support

Accelerator Programs

Biotech Incubator Programs

Business Coaching

2nd place business plan competition

1St Place in Cleantech Competition

1St Place in business competition

Barriers to Competition

IP Lab and Personnel

Barriers to Competition

RoyaltiesDIY Greeting CardPrinted Greeting

CardPrinting Inks

Revenue Model

Algae Ink SalesDIY Greeting CardPrinted Greeting CardPrinting Inks

Sources Income Milestones

Founder Investment

CSU NEVA Award

$2K

$4KAlgal strains

Lighting SystemIncorporation

Lab spacePrototype DeliveryWebsite and Logo Development

Product Consumables

Blue Ocean Enterprise Challenge

3-D Cell Printer DevelopmentResearch and Development PrototypeNon-provisional Patent Application

$10K

Company Insurance

Energy Department Pitch Competition

$50KLegal Fees Associated With Licensing

Execute KickstarterResearch and Develop Greeting Card Ink

KickstarterProduct DevelopmentCustomer Validation and Feedback

Improve Printing Technology of Living Ink

License Technology

$75K+

CU-Denver BPC $10K Lab Equipment

Energy Department Pitch Competition

Finals

$50K

Research and Develop Printing Inks

Product Delivery

Obtain Additional Colored Algae Strains

Laboratory Equipment for Commercialization

Living Algae Company Acquisition

BioPop raised $170K

on Kickstarter and

acquired at $3M

valuation

Ink and Greeting Card Acquisitions

$355M

Phase I

Phase II

Phase III

Exit

License DIY Product

License Printed Greeting Card

License Printer Ink

• Acquisition by Ink/Greeting Card Company

2016

2017

2018

2019

Revenue• DIY- 100K units

R&D• Additional Toy

Products• Greeting Cards

Develop

Revenues• DIY- 1M units• Greeting Cards- 10K

units

R&D• Greeting Card

Production• Commercial Ink

Prototyping

Revenues• DIY- 5M units• Greeting Cards- 50K

units

R&D• Commercial Ink

Production Streamlining

Commercialize

Exit

Scott Fulbright Steve Albers

www.livinginktechnologies.com

We Grow and Sell the Algae Ink to Licensees

Cost to Produce: $0.10

Sell: $0.50

The Algae is Renewable

Phase I

Phase II

Phase III

Exit

License DIY product

Release and license for Greeting Card Product

Release Commercial ink product

Acquisition by Ink/Greeting Card company

2016

2017

2018-2019

2020

• 100K units• Revenue $150K• Profit $5K • Operating margin: 3%

• Product royalty 10%• Per unit cost for ink

$0.50

• 1M units• Revenue $1.5M • Profit $0.25M • Operating margin 16%

• Product royalty 10%• Per unit cost for ink

$0.50• Greeting Cards- 10K

units

• R and D for Commercial Inks and Greeting Cards

• 5M units• Revenue $7.5 M• Profit $2.5 M• Operating margin 33%

• Product royalty 10%• Per unit cost for ink

$0.50

• Release Greeting Card Product

• Greeting Cards- 50K units

Commercialize

Exit

Worldwide Sales and Distribution

Marketing

Public Relations

Product design

Packaging

Licensing DIY greeting card with WABA

Royalty Rate: 10%Retail Price: $19.99Wholesale Price: $9.99COGs: $4

Sell Greeting Cards on Website in 2017

Identify Company for Licensing in 2018

Online sales and Licensing Greeting Card

Retail Price: $11.99

COGs: $3.0

Royalty rate: 6%

Greeting Card Value Proposition:

Interesting, unique ink that provides sticky messaging for engaging greeting cards

2014 Blue Ocean Enterprise ChallengeSecond Place

Renewable Algae Ink : Entire cells

Annual World Market Revenue = $85B

1% 3% 3%3%

9%

17%

20%27%

17%

Target Market= $144M

Toy Market Revenue Share in U.S.

Living Algae Ink

Greeting Cards STEM Toys Packaging Ink

PrintingAlgae Ink

Algae Ink

Commercial Ink

“I was really excited....to see what was going to happen on my algae card”

-Spencer Wein

“We will continue to strive to exceed market expectations through the introduction of even more exciting innovations.”

-American Greetings Annual Report

$50per/ barrel

Oil Ink

$400,000 per/ barrel

Renewable Algae Ink: Oil

HP revenue on “Printing Supplies” was nearly

$16 billion

66% of printing business revenue