physical design co summary
TRANSCRIPT
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Founder BiosDan Smithwick, MIT• Currently researcher in MIT Smart Customization Group, Media Lab• M.Sc. MIT, Design and Computation, 2009, thesis: Online Platform for Mass
Customized Architectural Design• Architect by training – 10 years combined higher education and professional
practice
Evan Richardson, HBS• Currently completing second year at Harvard business School• Consulted for multiple startup/early stage ventures including Local-
Motors, E-Ink• Previously with Berkshire Partners, a middle market PE fund based in
Boston and Bain & Co, a management consultancy
Dr. Lawrence Sass, MIT Prof.• Associate Prof. MIT Department of Architecture• Leading authority in field of digital design and fabrication• Author of 10 peer-reviewed publications + book, The Printed House:
Digital Fabrication and Home Production• Research Director, “Digitally Fabricated Housing for New Orleans,”
exhibited at the Museum of Modern Art, 2008
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Today’s backyard structures:standardized, difficult to construct, & laborious
Backyard Offices
Kid’s Playhouses
Storage Sheds
Dog Houses
Standardized•Limited variety, configurable at best•Consumers are willing to pay for customization, but little is available
Difficult to Construct•Requires professional skills•Extensive site prep•Complicated instructions•Days/weeks to assemble
Labor Intensive Mfg•Requires large workforce•Manual cutting tools•Error prone: lots of re-work
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PDC offers mass customized structures: fun to design, quick and easy to assemble
Mass Custom•PDC can fabricate ANY design•CNC routing makes 1 off as cheap as mass production
Fast & Easy Assembly•No construction knowledge required•No nails, just a mallet and follow pictorial instructions•PDC structures go up in hours, not days
Automated CNC Mfg•Minimal labor•Precise and repeatable processes•Optimized material use
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Vision: Mass Customized Architectural Design
User-GeneratedDigital Design
Digital-to-PhysicalTranslation
CNC Fabrication
User-AssembledPhysical Product
•Any design style, shape or size•Google Sketchup•Online design
•Semi-automated modeling procedure•Digital cut files•IP: trade secret, if not patent
•Minimal labor•Low cost•Optimized for material use
•Easy assembly: no cutting or measuring, no nails or screws•No construction skill required
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PDC will innovate to beat competitors across each of 5 key dimensions
Key Success Factor
Competitors Physical Design PDC Details
Site Preparation •Waterproof foundation elements built into design
True Ease of Construction
•Few tools required for assembly•Flat, interlocking, snap together parts
True kit completeness
•Customer applies finishes•Customer adds doors and windows
Competitive Pricing
•Profitable sales achievable at moderate production volumes
Best-in-Class Design
•PDC can build anything the customer can dream up•Any architectural style
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Backyard structures are a $1.2B+, highly fragmented, low innovation market
• Independents (Tuff Shed)• Few players• Significant revenue ($50-300M)• Pre-cut lumber in plant, constructed
on-site by crew• Significant warranty
• Retailer White Label (Sheds USA)• Similar to independents• Sell through 1 of 2 big-box retailers
exclusively• Mom & Pops (Reeds Ferry Sheds)
• Many, many local and regional players
• $1M-$10M in revenues
US Retail Shed Market (Unit Sales) Competitors
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Launch with a direct sales model; expand into other channels as product is proven
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Multiple fund-raising options are under consideration
Bootstrap Minimal Raise Large RaiseCapital Raised <$50K $250K $1M
Sources Personal, Friends & Family
Angels Venture
How far does that get us?
•Further material studies (siding, roofing, etc.)•Basic website•Test designs via dist. fabrication network•Ease of assembly study•Detailed cost analysis•More and more detailed customer feedback
•Retail-ready product•Purchase of used cutting equipment, minimal local facilities•Minimal staffing•Extensive market surveys•Promotional events & tradeshows
•Development of east and west regional production facilities•Website ready for sales and development of design platform•Automated translation algorithm developed•Staffing to support sales and service
How long will it take?
•6-9 Months •9-12 months •12-18 months