A Look at June's Meeting

12th Annual Business Plan

Design Medical and Nimbit Services Split

By Brian Dingman, Esq.,
Program Committee Member

Bill Gasko looks through business plan contest entries.

V isitors at the June meeting witnessed the final stage of the 12th Annual Business Plan Contest, developed to spotlight and reward New England-based established and start-up technology companies that provide innovative products and services. After much discussion and deliberation, the companies behind a new heart pump and an online suite of tools for musicians split this year's $20,000 prize.

Semi-finalist judges screen entrants (from left) Vic Marcus and Susan Black.

Through earlier rounds of judging, four finalist companies had been selected to compete for the prize worth $20,000, half in cash and half in services from the contest sponsors. Each of the finalists presented a 15- minute overview of their plan to the meeting attendees and the three finalist judges. The judges were Will Cowen, Managing Partner of Worcester Capital Partners/Long River Ventures; Elliot Katzman, General Partner of Kodiak Venture Partners; and Steve Wardell of CPP Advisors and the Z-Cube Fund. The judges considered both the written business plans, which they had read earlier, and the presentations made at the meeting.

The contest finalists were:

  • Advanced Radiation Therapy Corp., which has developed a novel treatment device for breast cancer;
  • Design Medical, Inc., which has developed a blood pump that mimics the heart, used in bypass surgery;
  • Enginivity, Inc., which has developed an intravenous fluid warming technology;
  • Nimbit Services, which has developed a vertically-integrated web-based series of tools that assists independent musicians in conducting business.

On a break, semi-finalist judges (from left) Jim Fee '65, Brian Dingman and Michael Gondek.

After each presentation, the judging panel critiqued each of the four presenting teams, including the positive aspects and challenges with the plans, the presentations, and the investment opportunity presented by the company. The judges offered helpful comments on steps the companies might take to make themselves more attractive investment candidates.

The overarching message from these investor judges: professional investors seek companies with seasoned management teams with a record of success in the same market space in the past, and a readiness to succeed again. Investors also look at the opportunity presented by the company and the product/technology/intellectual property issues, to decide whether or not to take the next step in considering a possible investment in a company.

After deliberation, the judges announced a tie between Design Medical and Nimbit Services, designating the two companies as co-winners of the contest. The judges were excited about the opportunity presented by both of these companies and felt that they both deserved the recognition and reward of winning the business plan contest.

Contest Produces Two Winners: $20,000 PRIZE

Design Medical Mimics Human Heart

Winners and judges from the 12th annual Business Plan Contest gather (top row, from left) Will Cowen, Elliot Katzman, Steve Wardell; (bottom row, from left) Nimbit Services Team: Scott Cohen, Philip Antoniades, Patrick Faucher; Brian Dingman (holding check) and Design Medical Team: Brian Key and Doug Vincent.

Design Medical of Pelham, NH, has developed and is patenting a heart pump technology that mimics the human heart. The product is expected to provide greatly improved clinical outcomes in heart surgery patients. The natural heart-like blood waveform as produced by the Design Medical product has been determined by leading scientists to provide superior blood flow to vital organs as compared to that of today's state-of-the-art heart pumps. The company expects that clinical trials will confirm that its product will result in fewer post-operative complications, thus resulting in an average per patient savings of over $2,700. With the product cost set at $1,600, the company believes that there is a compelling economic justification for the product, above and beyond the obvious patient benefits.

The judges commented that the presentation was "outstanding." The team had both experience and credibility in the field. The company could have done a better job presenting its plan for proprietary protection of its technology, and the manner in which it will best the competition in the marketplace, the judges said.

Semi-finalist judges at work (from left) Jay Agrawal, Jenifer Haeckl and Carl Stutz.

Nimbit Gets Musicians Online

Nimbit Services, located in Framingham, MA, captured the judges' attention with its traction in the marketplace, and the possibilities of expanding its products and services to a broader potential client base. The company has thousands of subscription-based customers for its web-based suite of tools that allows musicians to produce, manage, promote and sell their music and merchandise.

The judges commented that Nimbit was a spectacular company with a proven revenuegeneration model going after an underserved niche. The presentation was "great." Some concerns were expressed on barriers to entry. Overall, the judges found Nimbit an exciting opportunity and saw some synergy with complementary service providers, leading to a solid acquisition one day. Congratulations to both winners, and a hearty "thank you!" from the WPI Venture Forum to all of the contest participants, the early round and final round judges, and the contest sponsors!

Brian Dingman, WPI Venture Forum Board Member, is chair of the Intellectual Property Practice Group at Mirick O'Connell, a law firm with offices in Westborough, Worcester and Boston.