Play your music, pause the mind - Investor Deck - Webflow
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Play your music, pause the mind Investor Deck June 2020
Our story
We have replaced a 9-to-5 mentality with a 24/7 one
Our vision
We’ve forgotten how to unwind. Burnouts
and stress-related diseases have become
an epic problem of the 21st century.
Where others see modern technology as
part of the problem, we see it as the
solution.
Our mission
We are here to help people relax and
improve their well-being so they feel
better, achieve more and enjoy life.
We want to make the mind a
less complicated world.
June/2020 CONFIDENTIAL
A global problem The World Health Organization calls chronic stress the health epidemic of the 21st century. Every year, more than 110,000,000 people die from stress-related diseases. In 2019, the six most deadly diseases are directly linked to chronic stress, and in the U.S. alone, stress costs $300B every year. Stress is the 21th century health epidemic. People find it increasingly difficult to unwind after a day at work. When we go to bed, our minds are still racing like engines. Mobile devices were meant to free us from the office, but instead, technology has us mentally tethered to our desks 24/7. June/2020 CONFIDENTIAL
Personal pain
We have become an insatiable sponge of
information, news, opinions, decisions,
report feeling
33% extreme
knowledge and social media feeds. We
fight deadlines.
stress
We have developed a fear of
have stress that missing out.
73% impacts their
mental health We have developed a fear of missing out.
We have replaced a 9-to-5 mentality with a
24/7 one.
have stress that
77% affects their
physical health
Yes, it seems we are eager to learn. But we
forgot to learn what matters most: to
pause our minds every now and then.
have trouble
48% sleeping because
of stress
Stress is the
June/2020
#1 health concern of high school students
CONFIDENTIAL
Our solution Play your music, pause the mind AlphaBeats is an application that uses a patented algorithm and real time bio-feedback in music to train the user to relax better, with a lasting effect. June/2020 CONFIDENTIAL
How does it work?
AlphaBeats is an application that uses
an ingenious algorithm to help the user
relax with music.
The AlphaBeats app turns your phone
or wearable into a biosensor that
registers your heartbeat, breathing or
even brainwaves … and our algorithm
uses that biofeedback to tweak the
frequency of whatever music you like
listening to.
And although you probably
can’t hear the difference ...
you will definitely feel it.
This will stimulate your brain to get in the relaxing alpha-mode. Although you probably can’t hear the difference ... you will definitely feel
it. The best part? You can achieve that effortlessly by listening to your own favorite music for just 10-15 minutes a day.
June/2020 CONFIDENTIAL
Why are we unique?
We use your own favorite music and
no “tingle tangle” sounds.
We are hardware-agnostic and even
turn your mobile phone into a
biosensor.
We offer a proven structural solution
for stress via implicit learning.
And the best part is, you can achieve
that effortlessly, by listening to your
own favorite music for just 10-15
minutes a day.
June/2020 CONFIDENTIAL
Proven technology
2.75 times more relaxed*
AlphaBeats is building on eight years of Philips research
on the brain domain and four years of scientific validation
at Tilburg University. Studies show the AlphaBeats solution
is significantly more effective in helping people relax than
listening to music alone. And after four weeks, a person’s
ability to relax is dramatically improved.
Independent research showed:
● Students (n=50) are feeling 2.75* times more
relaxed
● Soldiers (n=21) are feeling 5.86* times more positive
effects
● 67% of top athletes (n=11) felt positive effects and
showed a significant increase in his/her EEG alpha
power after using AlphaBeats for three weeks
*number of participants compared to the ones in control group
June/2020 CONFIDENTIAL
IP position and strategy
Worldwide sole exclusive license of Philips patent
Sole exclusive license
AlphaBeats and Royal Philips We have a sole exclusive worldwide
entered into a license
agreement.
license of the unique Philips patent.
IP
We are building our own IP in addition to
The license provides AlphaBeats
the Philips IP.
with a comprehensive worldwide
sole license to use Philips’ Audio
Biofeedback system technology
and knowledge, enabling a quick
start to develop the first-of-its- We exchange related technology
kind braintech app and
hardware.
expertise with Philips.
June/2020 CONFIDENTIAL
The perfect storm
AlphaBeats’ unique solution connects the
mindfulness, wearable and music domains,
creating a completely new product category.
€14.4b Facilitating the process of implicit learning in
users´ brains, the algorithm:
- turns music into medicine (with
604m users 350m units lasting advantages),
- brings wearables into the brain
Music streaming Wearable domain, and
industry industry - enables a new solution to calm the
mind subconsciously, structurally
and seriously.
We turn music into a medicine,
bring wearables to the brain
€1.0b domain and offer a completely
Mindfulness and new solution to calm the mind.
meditation app
industry
June/2020 CONFIDENTIALCompetition matrix
AlphaBeats operates on the verge of three potentially
synergistic markets. Our competition set includes
companies from all three markets: mindfulness &
meditation apps, music streaming and wearables.
In our case, we only consider companies in shared
markets that have a solution for chronic stress
Solutions to prevent and reduce stress are broad and go from simple to
complex, general to very specific, cheap to expensive and from proven to
experimental.
June/2020 CONFIDENTIALGo to market strategy Unlock the potential of the brain We will start by introducing our own proprietary branded AlphaBeats app. This enables us to improve and personalize our algorithm and thereby optimize the results of our music treatment. After we increased and engaged our use base, the fastest way to grow is to get integrated as the differentiating feature in the service of (a) major music streaming provider(s), mindfulness app(s) or wearable(s) (via a license fee), because they have the clients and they have the distribution channels. We will develop our own hardware to complement our technology and strengthen our market position. Our sensors and algorithm will be integrated directly into headsets of major brands. June/2020 CONFIDENTIAL
Customer validation
Beachhead learn market
Our beachhead learn-market (defined after
€14.4b extensive customer validation: more than 500
live demos, 563 questionnaires and multiple
event(s) consists of highly educated
millennials with very busy and demanding
lives. On average, they are socially active,
have a mortgage, high (dual) incomes, love
music (paid Spotify subscription, for
example), are tech savvy and wish to live a
healthy and happy life.
And it does not stop: 5.8 Billion
people experience stress that TAM SAM SOM
affects their mental and Total high edu Stress influencing Interested in new tech
physical health.
Millennials their life to handle stress
NL 1,743K 1.045K 909K
It does not stop: 75% of all the people in the
world experience stress. EU 42,687K 25,612K 22,282K
Our beachhead will help us learn how to US 24,403K 14,641K 12,738K
solve this problem for the rest of the world.
June/2020 CONFIDENTIALRoadmap
The product market strategy
is based on the desired use
cases which have been
identified. Actual
implementation depends on
first market results and
financing.
The basis will be a
growing SW solution
platform.
This scalable SW platform
performs tasks like admin,
data collection, algorithm
optimisation, AI &
personalisation.
This roadmap will enable
flexibility in usage as well
as in scaling. This enables
different scenarios and
funding schemes.
June/2020 CONFIDENTIALFunding scenarios
Survival scenario
Slow organic growth, no hardware development.
Urgent funding: €80K in Q3 2020, €60K in Q2 2021:
● Pilot and soft launch BtC Breath App release Q4 2020.
● Subsequent (HRV) releases by own revenues.
Main risks: too slow to establish market position in 2022, to convince third-party Users
wearable suppliers and failure to comply with Philips license contract.
Mitigate by speeding up funding and scaling faster. Hardware
Preferred scenario
Hardware
Funding required: €300K in Q3 2020, €300K in Q2 2021.
● Pilot Q3 2020, commercial release Q4 2020 (BtC Breath App).
● Early agreements with third-party wearable suppliers (HRV, EEG).
● Subsequent (HRV) releases asap after Breath App.
● Expand team in R&D engineers, M&S.
HRV
● Co-develop own bio-sensing hardware (HRV/EEG hearable). EEG
Main risk: may have insufficient market presence in 2021 to convince third-party
HRV
wearable providers to get interest of Spotify in 2021 to license B2B in 2022. compatible EEG
3rd Pty compatible EEG?
Mitigate by boosting market presence in 2021 and team up with larger players. wearables 3rd Pty
wearables
HRV
compatible
Accelerate scenario 3rd Pty
wearables
Funding required: €500K in Q3 2020, €500K in Q2 2021.
● On top of original scenario boost digital marketing & sales
activities (M&S, communities, partnering) to increase and
engage own user base.
● Obtain 60K paying subscribers in Q2 2021.
● This will enable early talks with Spotify to license B2B service.. 80K 60K
● This will also convince third-party wearable suppliers earlier,
urging a FOMO (Fear Of Missing Out). 300K 300K Funding needs
June/2020 500K 500K CONFIDENTIALPreferred scenario
Revenue Subs paid / units sold (end of year)
2020 2021 2022 2023
B2C 113 76K 210K 194K
(subs own app )
B2B 0 0 1.1M 9.9M
(license subs)
Hardware 0 0 1.8K 24K
Expenses
300K 300K
€ 600K Funding needs
CONFIDENTIALTeam
Han Dirkx Johan Kortas Jur Vellema Bert-Jan Woertman Ad Denissen Sjaak Meulen
Chief Executive Officer Chief Technical Officer Chief Medical Officer Chief Marketing Officer Chief Scientific Officer Senior Developer
MSc Strategic MSc Electrical MD, orthopaedic Msc Organizational MSc Electrical M Eng Computer
Management Engineering, Master surgeon, MBA, Psychology, Social Engineering, Principal Science, Full stack
(Economy), creative Business Marketing entrepreneur. 20 years Innovator with 20-year Architect, Sr Scientific software engineer, 8
innovator, more than 20 (MBM), all-round of experience as a background in social Engineer with 34 years’ years’ experience with
years of experience in Tech-to-Business, 34 medical doctor in dynamics, ecosystem experience in applied 5 years at Philips with
turning ideas into years of hospitals and clinics, development and research and more than more than 60 projects
business, the last 12 international and researcher in (scientific) innovation. In 2018, Bert- 25 granted patents and ranging from big data
years as a serial senior management studies and experience Jan was named one of publications. Inventor of systems to apps and
entrepreneur in at Philips, imec , EIT in founding and 50 “Future Makers” who several innovations at AR applications.
different startups. Digital & Health, managing startups that shape the Dutch Philips Research, Previously worked in a
corporate venturing have impact on QoL. startup and innovation including the audio startup in Singapore
and as (co-)founder ecosystem. feedback patent. Active in building a BPM system
in startups. several projects to automate company
investigating short- and workflows.
long-term effects of neuro
/ bio feedback.
June/2020 CONFIDENTIALAdvisors & partners
Advisory Board Technology Accelerators
Guus Frericks Geert van Boxtel
MBA, serial entrepreneur Drs PhD Psychology. Associate
and founder of several deep- professor at Tilburg University.
tech startups, 24 years of More than 30 years of
international and senior experience in academic
business management research and education at
experience at Philips and various universities in
NXP. neuropsychology and even as
commercial manager.
June/2020 CONFIDENTIALPlay your music, pause the mind High Tech Campus 27 5656 AE Eindhoven The Netherlands www.listenalphabeats.com Contact Han Dirkx +31 6 45790013 han@listenalphabeats.com
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