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An Example Investor Presentation from Ziya’s Students

Ziya G. Boyacigiller

This presentation was created and given by Ziya Boyacigiller who was leading Angel Investor and a loved mentor to many young entrepreneurs in Turkey. We have shared it on the web for everyone’s benefit. It is free to use but please cite Ziya Boyacigiller as the source when you use any part of this presentation. For more about Ziya Boyacigiller’s contributions to the start-up Ecosystem of Turkey, please go to www.ziyaboyacigiller.com

Example Presentation to Investors

Ziya G. BoyacigillerSabanci University

BA, MBA and EXEC MBA2004 through 2013

THE NEXT GENERATION OF INTEGRATED POSITIONING SOLUTIONS

Mustafa [email protected]

Mahmut [email protected]

Mehmet [email protected]

+90 216 555 0000

SILICON GYROS

MEMS+ GYROSCOPES

+ MEMS = Micro-Electro-Mechnanical-System

SiGyrosTHE NEXT GENERATION OF INTEGRATED POSITIONING SOLUTIONS (proprietary and confidential) 4

Overview• All positioning electronics rely on gyroscopes, creating a $10B

market in 2010

• Fabless semiconductor company designing and marketing integrated MEMS+CMOS silicon components for communication, navigation, storage, and consumer markets

• Silicon Gyros (SG) integrated positioning solutions solve critical power, cost, space, performance & reliability constraints


$10B Market Opportunity

$0.3

$1.6

$0.9

$0.3

$1.7

$1.1

$0.3

$1.9

$1.3

$0.3

$2.1

$1.5

$0.3

$2.3

$1.7

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

$4.0

$4.5

2004 2005 2006 2007 2008

Worldwide Gyro Market ($B)

$2.8

$3.1

$3.5

$3.9

$4.3 10% AGR

Source: WTC Consulting, JPMorgan, IDC, iSupply, Reed Electronics, World Information Technologies, Gartner, In-Stat, ARC

•Mechanical

•NO GROWTH

•2 chip

•9% AGR

Single chip / IPS

13% AGR


Separate Component─Requires board space (>10mm2)─Major source of board field failures

Complex System Design─One gyro per axis─Multiple components required

Limited Performance─Inefficient, wastes power─Limited range of sensitivity

High System Costs ─Direct: component and assembly─Indirect: long design cycles, procurement

Pain: Off-chip Gyro Limits Integration


Solution: Integrated Positioning Solutions (IPS)

MEMS Gyroscope back-end CMOS compatible

wafer level encapsulation

bare-die or plastic packaging

System Integration IPS = CMOS circuitry+MEMS gyro

•

SiGe MEMS Gyro

Advanced CMOSCircuitry

IntegratedElectronics

(Gyro + Circuitry)• •

• • • • • • •

Si


Value-Add Capabilities

Size

Resonant Frequency

Temperature Range

Accuracy/Stability

Sensitivity

Packaging

Reference Frequencies

On-Chip Integration

Synchronization

0.8 x 0.7 mm

32 kHz – 2 GHz

-40°C to 120°C

+/- 1ppm

+/- 1ppm

Plastic (or bare-die)

Multiple

Yes

Yes

2.0 x 3.0 mm

32 kHz – 160 MHz

-30°C to 80°C

+/- 1ppm

+/- 10ppm

Ceramic

1

No

No

IPSQuartz


Benefits to End Customer

Per

form

ance

Consolidation

Reliability

Single-chip design

Ultra-Low noise

Lower power

Less board space• Smaller plastic packages• Bare-die for MCM

High stability (1ppm)

Single-chip design • Lower mfg cost

Consolidate components• Reduce assembly cost• Reduce supplier costs

Consolidate SKUs• Increase design flexibility• Shorten design cycles

Integration minimizes number of components

Simplified system design

Standard semiconductor packaging and assembly


Silicon Gyros

CMOS + MEMS

Competition

Standard CMOS Integration

Stability

QUARTZ-based•NDK, Epson, Vectron, Saronix

•IDT/ICS, Cypress, Silego•Multiple ‘leaders’ each with fortes in certain niches

GyroX• Polysilicon MEMS• Targeting low-end

applications• $12M VC in April 2004

PolySi• Polysilicon MEMS + CMOS

• $12M VC in December 2004


Product / Go-to-Market Strategy

2006 2007 2008

2-Chip(CMOS & MEMS)

MEMS GyroLow Noise (*)

IntegratedLower-Performance(Consumer Quality)

(CMOS + MEMS)

IntegratedHigh-Performance

(Navigation Quality)(CMOS + MEMS)

•Market MEMS Gyros during MEMS technology transfer/development

•Establish 1st customer relationships (storage)

•Vehicle for fully integrated MEMS/Gyro•Early revenue generation

% of TAM

•Exploit advantages of MEMS and CMOS

•Pursue multiple range opportunities•Expand market to consumer,

storage and communication

MEMS Technology As Key Value Differentiator

* This product is already developed


Sustainable Advantage (Intellectual Property / IP)

• World’s First fully integrated gyro+electronics using standard CMOS foundry processing ( low cost & high volume)

• MEMS Process— Enables integration of MEMS and CMOS

• Temperature Compensation (array of gyros)— Low-power and low-cost design enables high stability

• Temperature Sensor— Low-cost, on-chip, temperature sensor enables high stability

• Standard Manufacturing— Low-cost, robust manufacturing-proprietary layout of gyro design

• Low-Noise Gyro— Gyros optimized for high volume applications

• License from UC Berkeley for MEMS IP— Exclusive, world-wide rights — All inventors are members of Silicon Gyros— Fully characterized gyro cores (for commercial applications)


Customer Engagements

Inertial Systems

Hitachi / Maxtor

Infineon

CommentsCompany

• Evaluating MEMS core Gyro for their next system

• Evaluating MEMS core Gyro for H-M 55 tape drive

• Interest in MEMS core Gyro for enterprise HDD

• List of 500 target customers identified


• Silicon Circuitry— Mature standard wafer fabrication processes : 0.18u –

0.35u— World class foundries: UMC & TSMC

— Mature small pin count semiconductor packaging and test

• MEMS— Enable LPCVD furnace for standard post-process

deposition

— NNTC• turn-key foundry partner (CMOS + MEMS)• MOU and NRE agreements for product and process/mfg

collaboration

— Analog Devices• pure MEMS foundry partner already validated process

compatibility • discussing price, volumes, and IP

— Hitachi• turn-key foundry partner with strategic initiative evaluating

MEMS

Manufacturing


Milestones

Requirements

MEMS Gyro Development Schedule

HeadcountLabor CostR&DSG&ATotalCumulative

6-12$ 780k$ 640k$ 320k$1,740k$1,740k

12-24$ 1,100$ 300$ 250$ 1,650$ 3,390

24-34$ 1,910$ 790$ 550$ 3,250$ 6,640

34-45$ 2,830$ 720$ 750$ 4,300$10,940

45-70$ 4,000$ 1,800$ 1,150$ 6,950$17,890

0 months 6 12 18 24 30

MEMS

Core CMOS

XGyro Con

XGyro Nav

Qualify

Prototype

Prototype

Finish Prototype Ship

Qualify Ship

Design Win Qualify Ship

Yield ProcessTransfer Process

Initial MEMS product samples


Financial Summary ($M)

$0

$2

$4

$6

$8

$10

$12

$14

$16

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2005 2006 2007 2008

Revenue

Gross Profit

Cash

Revenue by Product Family ($M)

$0

$2

$4

$6

$8

$10

$12

$14

$16

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2005 2006 2007 2008

HeadcountRevenueCOGSGross Inc.SG&AR&DEBITEnd Cash

10 $ 0 $ 0 $ 0 $ 370 $ 510($ 880) $ 9,120

93$ 36,020$ 9,450$ 26,570$ 9,280$ 5,500$ 11,790$ 6,440

24 $ 2,170 $ 650 $ 1,520 $ 1,770 $ 2,390($ 2,640) $ 4,400

49 $ 10,100 $ 3,370 $ 6,730 $ 4,620 $ 3,930($ 1,820) $ 13,320

Units (000s)Gyro MEMsXGyro (Nav)XGyro (Con)

Revenues (000s)Gyro MEMsXGyro (Nav)XGyro (Con)

15,1003,750

38,700

$ 12,500$ 4,900$ 18,500

10,100230480

$ 8,500$ 300$ 290

Financials

2,00000

$ 2,150$ 0$ 0


Team• FOUNDERS:

—Mustafa Birinci, CEO and Founder• Veteran gyro market entrepreneur: NovaSensor, VP Marketing at IC Works, CEO at GyroTech

—Mahmut Ikinci, CTO and Founder• System design and SiGe MEMS: UC Berkeley PhD, Xenos, NovaSensor, GyroTech

—Mehmet Ucuncu, VP Marketing and Founder• Early-stage start-up planning: NetX, GyroNet, UC Berkeley MBA, MIT MS

• ADVISORY BOARD—Prof. Roger Howdy, Chief Scientist and Founder

• MEMS gyro pioneer: Stanford, EECS UC Berkeley, BSAC Director, ADI Technical Advisor

—Shusaku Sudaka, Sr. Advisor to CEO (Marketing, Ops, Biz Dev)• Japan semiconductor marketing: President and COO: Technology and Marketing at Oki America

• MANAGEMENT—Leyla Basaran, Dir. Applications and Founder

• Gyro marketing and application support: Stanford Telecom, ICWorks, Exar, UC Berkeley

—Nilufer Calisan, Manufacturing• MEMS process transfer: VP Eng. Lilliputian, Dir. Eng. Candescent, Stanford Professor

—Yasemin Kazanan, Design Engineer• Mixed Signal IC Designer: Exar, Cypress, Project leader for OC-98 transceiver

—Lang-Lang Dang, Dir. Strategic Accounts - China• Chinese handset vendor relationships: Dir. Handset Engineering Enuvis (SiRF), Haier, Casio

—Rafet Sevilen, Dir. Sales• Semiconductor sales: 20 years experience from Conx, SigmaGyros, AMD


The Deal• Financing Objectives

— Seeking $10Mn investment for 40% of Shares• Signed term-sheet for $5Mn

— Seeking two additional investors with (i) strong aerospace industry contacts and (ii) MEMS industry experience

• Use of Funds— Transfer technology to commercial foundry— Develop integrated MEMS/Gyro products

• for storage, consumer, and communications• for navigation

— Recruit additional engineering and management expertise

• Exit Strategy— Build full-support component manufacturing company— Profitable in 26 months, 15% earnings growth— IPO in year 4 ($100Mn estimated valuation)

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