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Innovation Economy Corporation, a Delaware corporation dba Innovation Economy Crowd (the "Company" or “ieCrowd”), in a private placement memorandum dated July 14, 2014, has commenced a private offering (the “Offering”) of its securities in the amount of $2,000,000. The Company proposes to sell, through a Regulation D, Rule 506(c) offering, a total of $5,000,000 of the Company's Unsecured Convertible Promissory Notes (the “Notes”). The Notes bear interest a rate of eight percent (8%) per annum and are convertible into common stock at $0.34 per share. The Notes are being offered to an unlimited number of Accredited Investors. A minimum purchase of one (1) Note for $25,000 is required from any potential investor.
Citation preview
Investor PresentationJuly 2014
ieCrowdInnovation Economy Corporation
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DisclaimerStatements & Management
This presentation contains forward-looking statements and management may make additional forward-looking statements in response to your questions. Such written and oral disclosures are made pursuant to the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995.
Although we believe our expectations expressed in such forward looking statements are reasonable, we cannot assure you that they will be realized. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the anticipated results, and therefore we refer you to a more detailed discussion of the risks and uncertainties in the Company’s private placement memorandum.
The forward-looking statements contained in this presentation are made only as of today, and Innovation Economy Corporation. and TriPoint Global Equities, LLC are under no obligation to revise or update these forward-looking statements.
Simultaneous with this Offering, the Company is conducting a separate offering pursuant to Regulation S of the Act (the “Regulation S Offering”). Through the Regulation S Offering, the Company is offering up to $2,500,000 convertible notes and may close on a minimum purchase of up to $100,000. Following receipt of the minimum purchase in either the Regulation S Offering or this Offering, the Company may continue either, both or none of such offerings.
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INNOVATION ECONOMY CORPORATION
SummaryWho is ieCrowd?
Innovation Economy Corporation dba ieCrowd
Based in Riverside, CA Founded in 2010 Over $7m equity raised to date
ieCrowd transforms breakthrough life and health discoveries into global solutions
Bridges the innovation gap between promising IP developed at top research institutions and global marketing companies in search of new products
• Target Cost: $1-$3m per discovery• Time frame: 18-36 months to commercialize• Target: 4-6 new discoveries per year
3 innovation platforms in development
• Kite: Repellents and lures for mosquitoes and other blood-seeking insects
• Nuuma: Air quality monitoring and gas detection using nanotechnology sensors
• Ascent: Adaptive regulation of oxygen tanks for COPD, and congestive heart failure patients.
Proposed Transaction
Industry: Life Sciences
Type of Offering Convertible Note
Capital Raise $5.0m
Terms
Conversion: $0.34/share Forced Conversion: 80% of IPO Share Price Coupon: 8%
Recent Equity Valuation
$45m
CapitalizationBasic: 140m shares
Fully Diluted: 185mExpected Closing August 15, 2014
OwnershipMgmt & employees: 58%
Outside investors: 42%Auditor Marcum LLP
Placement Agent TriPoint Global EquitiesPlacement Agent Counsel
Hunter Taubman Weiss
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The CrowdThe Crowd expands ieCrowd’s access to expertise, innovations, networks and resources. The Crowd adds
significant value in key areas of ieCrowd’s business.
Capital
Accredited Investors Angels Institutions Funds Foundations Medical Professionals Fund
Development Partners
Vendors Collaborators Foundations Gov. Agencies Universities
Health and Medical Global Solutions
Distribution Retail Direct
Collaborators Verticals
Life and Health Breakthrough Discoveries University Partners Labs Gov. Agencies Innovators Challenges/Competitions
Consolidated Business Infrastructure
ieCrowd Solutions
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Discover
ProcessDiscovery to Market
Develop
ieCrowd mobilizes a business infrastructure that optimizes the rapid development of these disruptive technologies into solutions or platforms in a target period of 18-36 months
Launch
ieCrowd’s solutions platform is designed to launch products to a global market via a network of market partners in health and medical industries
ieCrowd looks out for innovations everywhere, and then marries them with experienced entrepreneurs with the know-how to build strong, smart and purpose driven companies.
- MeiMei Fox
ieCrowd obtains from top-tier universities the exclusive rights for innovative life and health technologies that can be commercialized rapidly and have an accessible global market greater than $1B
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DiscoverieCrowd Finds the Right Innovations
Licenses in Place
Discover Grant Money Intellectual Property Do good & do well
• Clear path to revenue generation within 18-36 months (targeted)
• Leverages ieCrowd’s expertise and infrastructure
• Positive social impact attracts stakeholders and partners
• Patent Issued/Pending IP
• Orphaned at a top research institution
• Demonstrated proof of concept or prototype
• Prior financial support through research grants
• Value is waiting to be unlocked
• Potential for follow-on grants in-house
• Global accessible market > $1B
• Disruptive approach to improve existing tech
• Platform technology leading to a suite of products
ieCrowd sources life and health focused discoveries by partnering with technology transfer offices at top-tier research institutions.
Innovation Sources
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Develop
ieCrowd’s business infrastructure supports the efficient development of discoveries into market-ready product solutions.
ieCrowd assigns a team of experienced ieCrowd entrepreneurs and subject matter experts to lead commercialization.
Each discovery benefits from ieCrowd’s technology and product development process and business operations platform to move through commercialization efficiently and cost effectively.
Targeted Capital Allocation: $1.5 - 3m per Discovery
• Accounting • Legal • Procurement/Engineering • Marketing
• IT• Facilities & Safety • Human Resources• Development Partners
Support Services
Innovation Company 1Subject Matter Expert
Innovation Company 2Subject Matter Expert
Future Innovation CompaniesSubject Matter Experts
...
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Launch Growing Network of Partners will Enable Products to Launch Globally
ieCrowd is designed to work with global industry market partners to manufacture and distribute future market-ready solutions.
Market partners share the risks and costs and will enable ieCrowd to achieve scale by focusing efforts on commercialization.
Licensing Partners• Product platforms available for exclusive global licenses, specific field of use and/or regional licenses.• Revenue: royalties and license fees
Distribution Partner• Finished products and/or technologies available for distribution to specific verticals or regional markets.• Original Equipment Manufacturer (OEM)• Revenue: Purchase of products directly from ieCrowd
Direct-to Consumer/Retail• Finished products designed, developed, manufactured, and sold directly by ieCrowd• Revenue: Retail sales
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Company Structure
Innovations are placed into a newly formed, majority owned and operated ieCrowd subsidiary focused on commercializing that innovation.
ieCrowd’s proprietary screening model has already yielded 3 disruptive technologies/solutions in development, each with significant future global potential.
• Nano Engineered Applications, Inc.
• Wearable gas nano-sensors
• Olfactor Laboratories, Inc.
• Insect repellents and lures
• Breathing Technologies, Inc.
• Adaptive oxygen delivery device
TM
®
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Product Name Kite Nuuma AscentInnovation Company Olfactor Laboratories, Inc. Nano Engineered Applications, Inc. Breathing Technologies, Inc.Description Developing technologies
capable of making humans virtually invisible to mosquitoes and other host-seeking insects plus lures for surveillance and traps.
Developing wearable, intelligent, Smart-phone enabled products capable of detecting airborne molecules ranging from toxic, disease-causing gases to VOCs to the parts per billion
Developing breakthrough mobile oxygen delivery systems and smart automated adaptive controls for COPD and congestive heart failure patients
Acquisition February, 2010 April, 2010 December, 2013Product Stage Launch Development DiscoveryTime to Revenue Within 12 months Within 12-16 months 12-16 monthsResearch Partner UC Riverside UC Riverside UC San DiegoPatents 4 Pending (3 developed in
house, 1 exclusive license) 2 Issued, 4 Pending; exclusive license
1 Pending, exclusive license
Grant Funding $3m in total Grants-NIH- Bill & Melinda Gates Foundation
$3m in Grants-NIH
$100K+-UC Proof of Concept Program
Sample Design
CURRENTLY IN R & D
InnovationsA Growing Portfolio
®TM
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Olfactor Laboratories, Inc. - OLI ieCrowd Subsidiary developing Kite Product Platform
OLI’s new approach develops products based on chemicals that manipulate the activity of the host seeking insect’s carbon dioxide (CO2) detection pathway• Utilizes its laboratory facility in Riverside, CA to monitor insect behavior and test compounds in a range
of simulated environments• Female mosquitoes are attracted to expelled CO2 because they need blood to feed and lay eggs OLI is developing products that will emphasize safety and efficacy
Host seeking insects• Mosquitoes, Sand flies, Tsetse flies, bed bugs • Nuisance of bites• Vectors of diseases: Malaria, Dengue fever, West Nile virus • Mosquito-borne diseases impact over half the world’s population
Market Size • $3B USA pest control1
• $527m USA insect repellent1
End uses• Repellents: personal and spatial• Lures for home and yard
1. U.S. retail home and
garden pest control market,
includes controls, households,
repellents, and rodenticides.
2013, Spectrum Brands;
makers of Cutter & Repel
The Kite logo is a registered trademark of Olfactor Laboratories, Inc.
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Kite PatchIntroduction
artistic rendering
Small patch applied to clothing for personal Mosquito control Being developed to release active ingredients from the patch• Designed to create a zone around the individual• Blocks the mosquito’s ability to detect CO2 and thus limits their ability to efficiently
find the individual wearing the patch• Active ingredients are non-DEET fragrance and flavor compounds addressing
concerns about the safety of DEET Lure study with Walter Reed Army Institute of Research in Peru and Thailand conducted April and May 2014
Preparing for international testing in Uganda Signed license agreement with first market partner in South Korea, Malaysia, and Indonesia
Next steps • Complete product development and field testing• Sign additional market partners• Spatial Repellents: room, home, yard• Professional product development: lures and traps• Introduce repellent and lure for Bed Bugs• Apply for EPA regulatory approval
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Kite PatchCredibility & Traction
Indiegogo• $557,254 raised from 11,254 funders over 45 days• #1 most popular campaign for four weeks of the six-week campaign• Top funded Indiegogo campaign in “small business” category
Global media • Coverage from over 400 publications • $30m in estimated earned global media
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Nano Engineered Applications, Inc. - NEA ieCrowd Subsidiary developing Nuuma Product Platform
NEA is developing a suite of products that use an “Electronic Nose” based on sensors made from carbon nanotubes• Low power sensors detect airborne molecules • Gases, and volatile organic compounds (VOCs) down to the parts per billion (PPB)
Market size• US indoor air quality equipment: $3.7B1
• Global gas sensors: $1.7B2
• Global wearable products: $1.6B3
• Wearable fitness devices: $330m in US4
End uses• Wearable, intelligent, highly portable sensors
• Air quality monitoring• Indoor and outdoor; consumer, commercial, and military
NEA Sensor
1. BCC Research, 2012
2. Grandview Research
3. BIS, 2013
4. NPD Research
artistic rendering
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NuumaIntroduction
Wearable smartphone enabled nano-sensor under development • Detects unhealthy disease-causing gases and VOCs around the user• Forms a distributed network of air quality monitors• Monitors hyper-local air quality just like weather or traffic
Signed license agreement with first market partners• South Korea• Malaysia • Indonesia
Next Steps• Complete product development for application in consumer health
and wellness space• Launch first solution and increase market awareness• Sign additional market partners
Air map artistic rendering
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Breathing Technologies, Inc. - BTIieCrowd Subsidiary developing Ascent Product Platform
Developing a new class of products based on intelligent adaptive oxygen controls• On-demand, measured oxygen driven by lightweight microprocessors• First major changes to oxygen therapy technology
Prototype in use by the inventor • COPD patient with 30-40% lung capacity regularly uses prototype while doing
physical activity, ranch work, golfing
Market size• COPD is the third leading cause of death in America1
• 14.8m diagnosed COPD patients and another 12m un-diagnosed2
• Oxygen therapy in the US: $440m3
End Uses:• Oxygen therapy for patients with COPD• Oxygen therapy for patients with Congestive Heart Failure
1. Center for Disease Control and Prevention2. NIH, 20123. Millennium Research Group, 2010
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AscentIntroduction
New COPD-targeted oxygen therapy device for patients using supplemental oxygen in tanks• Delivers more oxygen when you need it the most• Monitors blood oxygen level• Collects valuable medical data• Lower cost and higher efficiencies than oxygen conservers• Designed to enable full mobility, in and outdoors
Signed license agreement with first market partner
Clinical trial is underway at the Pulmonary Rehabilitation Clinic at UCSD Medical Center • Funded by public proof of concept grant
Next steps• Complete successful trial and publish findings• Complete product development• File for FDA approval• Sign additional market partners
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Solutionsfrom ieCrowd
Within 12 months
Within 24 months
Within 28 months
TBD
TBD
Within 12 to 16 months
Breakthrough Life & Health Solutions
Health &Wellness
Disease Prevention
Disease Management
Time to Revenue
Kite Solutions – Breakthrough technology in the fight against mosquito borne diseases
Kite Consumer Products - Breakthrough disease prevention for everyone
Kite Public Health Products - New weapons in war against mosquito-borne diseases
Kite Active Ingredients Licensing - Repellents, lures
Nuuma Solutions - Solutions for health & wellness and disease prevention
Nuuma Life (Consumer) - “Know air, know your health”—disease prevention devices
Ascent Solutions - Next generation of smart oxygen devices
Ascent I - Smart, adaptive and networked oxygen devices
Ascent II - Emergency oxygen devices (sea, air, land)
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ProjectionsRevenue & Income
(USD Millions) 2015E 2016E 2017E 2018E
REVENUE 6.8 30.3 65.6 158.7
GROSS PROFIT 3.3 15.1 32.7 78.7
OPERATING EXPENSES (11.3) (17.0) (22.7) (45.6)
NET INCOME (8.0) (1.9) 10.0 33.1
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TeamLeadership
ieCrowd’s executive team is comprised of experienced entrepreneurs and senior leaders, collectively responsible for multiple IPOs, M&As, exits, multiple high-growth startups, and generating stakeholder value.
Amro AlbannaCEO
Dale HutchinsPresident
David KayattaCapital
Al CervantesCFO
Michelle BrownScience
Grey FrandsenSolutions
Larry EasonMarketing
Molly SchmidLife and Health
Sundip DoshiTechnology
Steve AbbottDiscovery
Rowena Albanna Operations
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Leadership and Entrepreneurship• Experience building successful global brands and launching products• Experience with high-growth first-to-market technologies • Deep experience working with technology transfer• Operational leadership of $100m+ companies
Past Exits• Timely Technology Corp. - internet transaction security – Acquired• Digital Angel Corporation - GPS/Wireless – Went public• University of California, Riverside (UCR) Research Park - Real Estate - Acquired• Qmotions/Actiga – Video game controller – Went public
Life and Health Technology• Leadership in commercializing breakthrough scientific discoveries and product
adoption• Experience with regulated and unregulated life and health products, public health,
disease, and wellness markets• Expertise to create solutions at the interface of data and personal health
Past Projects• Microcide Pharmaceuticals- Antibiotic Drugs – IPO• Genencor Inc – Industrial Biotech –IPO• Affinium Pharmaceuticals – Antibiotics – Big Pharma Partnerships
TeamBackground
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Use of Proceeds
Item Amount
Project development and commercialization $2,200,000
General, administrative and marketing 1,287,500
Legal, accounting & consultants 500,000
Working Capital 612,500
Placement Agent Fee 400,000
Total Proceeds $5,000,000
Project Development• Increase investments to fast track Kite, Nuuma and Ascent
to market• Advance research, development and regulatory approval
process• Acquire additional life and health discoveries
Marketing• Broaden brand awareness• Expand access to world-class partners• Raise profile to attract world-class talent & gain awareness• Expand relationships with universities and tech transfer
agents
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Clearly defined commercialization model • Costly, risk-laden early-stage research is left to innovators on campuses and completed
prior to discovery acquisition by ieCrowd• Secures the rights to an innovation and places into rapid development• Strict acquisition criteria and deals that are structured for oversight • Go to market with global partners
Scalable investment method• $1.5m – 3m over 18-36 months• Results in globally salable technology
• Company targets 10x ROI on the commercialization of each innovation
Build a community of partners invested in success• Doing good and doing well• Involve the crowd in early market validation and product launches
Efficient allocators of capital• $7m+ in capital raised to date through ieCrowd common equity• Approximately $6m in non-dilutive public and private grants directly into research
(prior to ieCrowd licensing the discovery) • Approximately $1m in non-dilutive public grants directly and indirectly into ieCrowd’s
projects post-licensing.
Investment Highlights
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ContactTriPoint Global Equities, LLC
Mark Elenowitz, CEO
130 West 42 St, 10th Fl
New York, NY, 10036
P: 917-512-0822
F: 212-202-6380
TriPoint Global Equities, LLC
For full offering details and documentation please go to Banq.co