SBIR Embedded Entrepreneur Initiative Milestone Examples.docx

Example Milestones for Embedded Entrepreneur Initiative (EEI) Statements of Work, as referred to in Section 2.6

1. Hire EEI lead: Identify a seasoned entrepreneur with experience transitioning early technologies into products within the relevant markets for Performer’s technology and notify DARPA of intent to engage the entrepreneur. If, within fifteen (15) days of such notification DARPA does not object, engage this entrepreneur, who will be responsible for achieving the EEI milestones in the contract.

· Note that in some cases, milestone achievement may require engagement of others with specialized skill sets, for example, regulatory expertise. For such cases, Milestone 1 may include funding for an entrepreneur and an additional individual with appropriate expertise.

2. Identify Target Markets: Assess each potential market of entry, including at the minimum the market for national security applications of the technology. Examine each based on key criteria including, but not limited to, barriers to entry, value propositions, cost points, revenue streams, estimated ROIs, potential business models, channels and time to market, customer acquisition costs, competitors, launch volumes, regulatory requirements, and cost reimbursement models, if applicable. 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 long term vision with practical considerations including resources required and available. Document the decision process.

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 of direct and indirect competitors, as well as pre-emergent competitors, e.g., technical approaches under development in laboratory settings, that target a similar value proposition. Include a summary of key findings for each product, by market segment, as well as an appendix of tabulated data on competing companies and technologies. In a format similar to a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, include features, strategies utilized to enter each market segment, partnerships and business models of potential competitors, estimated margins and market share, as well as marketing and other strategies utilized to attract customers.

5. Techno-Economic Analysis: Validate the following and summarize in writing, preferably with substantiation in the form of robust Microsoft ExcelTM models:

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

ii) A substantial business and financial model including Operating Expenditures (OPEX) and Capital Expenditures (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: Document a plan for manufacturing and scale-up including an informed estimate of required financing, identified supply chain partners (with an emphasis on domestic suppliers), and a realistic timeline.

7. Intellectual Property Strategy: Describe the strategy for protecting the technology investment with intellectual property (IP) protection and verification of freedom to operate. Underlying assessments should consider the following:

i) Patent strategy (domestic and international) and/or trade secret strategy.

ii) Freedom to operate analysis.

iii) Identification of functionally equivalent products that may be manufactured relying solely on technology or approaches in the public domain or that may be licensed for commercial use.

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

v) 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: With consideration of all information derived from participation in the EEI program to date, deliver a robust plan to go to market. Include a clear identification of product or service, 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, and any other elements of the overall plan to introduce product or service to the market.