EEI_Suggested_Milestones_30Dec2019.docx

DARPA Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR)

Suggested Milestones for Embedded Entrepreneur Initiative (EEI) Participants These suggested milestones apply to the Defense Advanced Research Projects Agency (DARPA) Small Business Innovation Research/Small Business Technology Transfer (SBIR/STTR) Direct to Phase II Opportunities announced under BAA HR001120S0019. For more detail on proposing for the Embedded Entrepreneur Initiative, please refer to section 2.6 of HR001120S0019.

If the proposal varies from these suggested milestones, please explain why alternative proposed milestones are more suitable/better matched for advancing commercial readiness. Milestones can be spread across one year or two years, whatever is deemed most valuable by the proposing company.

The determination for participation in EEI will be made independently following selection for an SBIR/STTR award. Selection for award does not imply selection for participation in EEI.

1. Hire EEI lead: Find and engage a seasoned entrepreneur, with experience transitioning early technologies into products within the relevant markets of interest. This individual will execute on the below milestones. DARPA will provide a “non-object” to engaging this person. In some cases, different skill sets may need to be engaged. For example, a portion of the funding could be utilized to hire a seasoned entrepreneur and another portion could be utilized to hire a regulatory expert.

2. Identify Target Markets: Often there are multiple, distinct market segments that an early technology can target for transition. Different market segments have different barriers to entry, value propositions, cost points, revenue streams, estimated ROIs, potential business models, channels to market, customer acquisition costs, competitors, launch volumes, etc. Assess each potential market of entry based on key criterion (such as those listed above). Conduct interviews with key stakeholders in each potential market. Down select to a single market of first entry or a viable subset of target markets that balances your vision with the reality of logistically entering multiple markets as well as needed financing to execute. Describe the decision process. At least one market analyzed must be for national security applications.

3. Market Analysis and Value Chain Mapping: For the identified first market of entry, map the key players throughout the value chain; their current partnerships, business models, price points and margins.

4. Competitive Analysis: Complete a robust competitive analysis including indirect competitors as well as emerging competitors, still in the lab today, that target a similar value proposition. Include a summary of key findings for each product, by market segment, and with an appendix of tabulated data on competing companies and technologies. In a format similar to a SWOT analysis, include features, strategies utilized to enter their market segments, partnerships and business models of potential competitors, estimated margins and market share, and strategies utilized to attract customers.

5. Techno-Economic Analysis: Produce a written document and/or a robust Excel doc to capture and validate the following:

i) A basic Bill of Materials cost model for your potential product.

ii) A substantial business, financial model including OPEX and CAPEX.

iii) A sensitivity analysis on overall cost structure with key variables such as market penetration assumptions, necessary cost points, and volume pricing of components.

6. Manufacturing and Scale-up Plan: Plan to include estimated financing required, identified supply chain partners with an emphasis on domestic suppliers, and timeline.

7. IP Strategy: Produce a written document outlining strategy for protecting the technology investment. Assessment should consider the following:

i) Patent strategy (domestic and international), trade secret strategy.

ii) Freedom to operate analysis.

iii) Exploration of the value of novelty destroying publications, creative patenting approaches (Markush lists, claims, etc.).

iv) How these strategies affect the approach towards broader markets, higher prices and drive market share, as well as how this DARPA-funded effort would maintain a domestic technological advantage.

8. Dual-Use (commercial and defense) Go-to-Market Strategy: Based on learnings from the above milestones, deliver a robust plan to go to market. Include proposed business model, target market of entry, value proposition, estimated product cost structure, financing mechanisms, customer acquisition strategy, manufacturing and scale-up plan, required partnerships, timeline, IP strategy, regulatory milestones, etc.