Density Analysis

Strength

• Space Planning: Real estate teams are using Density to look for under-utilized space to get rid of and popular space to redesign or improve. The value is related to large-scale cost reduction (real estate consolidation) and employee retention / recruitment (better amenities / workplace).
• Reduce Tailgating: Dropbox and others are using Density to reduce tailgating (when one person badges through a secure door and a second person follows without badging). They are comparing Density's real-time count data with badge data. When someone walks through without badging, they set off an alarm. The process all happens in under 700ms. Right now, the way this is solved is with full-time security guards. One of our customers is going to be able to shed a portion of the $6m they spend each year on security guard salaries whose sole purpose is doing what Density can automate for a few hundred dollars/year.
• Live Busyness: At a large social network (NDA), we're working on a project where employees can see if their cafeteria or conference rooms are busy without having to leave their desks. The value is that employees won't have to unnecessarily waste time waiting in line or looking for a meeting room. If you've worked at a large company, you probably know this pain.
• Smarter Facilities: Bathrooms are cleaned based on a time schedule. We're starting to help companies clean rooms based on usage. The value is that customers no longer have to waste money or time cleaning the portion of 45m sqft that is already clean (i.e. unused) and they can better service those spaces that are more heavily used (i.e. bathrooms).
• The reason these problems remain unsolved is because companies can't put a camera in a conference room. They can't put a camera near an engineer's desk. Privacy is often a major part of company culture and policy. Customers have told us their employees revolt when spied on. They've found cameras in urinals, duck-taped lenses, and employees avoiding monitored rooms altogether. Anonymity is critical. The industry has been trying to solve this problem for more than 40 years.

Weakness

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Opportunities

• At most large enterprises, space is the second biggest expense after salaries. To understand how space is being used at an enterprise, the CFO or CEO of the company have to rely on surveys and politics from their business unit heads. With Density’s sensors, they can look at exactly how many people are using every office, floor and conference room across all of their campuses. When a Fortune 500 company is able to understand their space, they can start consolidating, divesting or allocating space with dramatic results: saving millions to tens of millions of dollars per year. Density provides that solution and their early pilots are extremely promising. Customers are going nuts for the product.

Threats

• We believe Competition in this space will become significant over time. As a new category, sales cycles can be long
• Look at email: 1) Market+Competition, 2) Product, 3) Algorithm 4) Deployment

Threats of New Entry

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Threats of Substitute Products

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Bargaining Power of Customer

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Bargaining Power of Supplier

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Politic

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Economy

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Social

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Technology

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Environment

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Legal

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Value Proposition

Revenue Stream

Cost

Key Resources

Key Partners

Key Activities

Customer Segments

Channels

Proprietary Tech

• Each Density unit has 800 subcomponents in it. These “depth processing units” operate 4 infrared lasers, a deep learning engine, and a neural network that compute over 10 million depth values every second. It’s like operating a small gaming computer above every doorway..
• Density is more accurate at counting people than cameras, thermal, stereo vision, WiFi tracking, beacons, and lidar. We are FDA, FCC, and CE certified. By the end of the year, we will be able to ship to 20 countries. By those in the industry, Density is considered the most accurate people counting system, globally. Our algorithm is built on a custom dataset we’ve been collecting and labeling over the last three years. It is unique to our system and very hard to copy.
• We had to custom design the manufacturing line to handle our product as we couldn’t find a CM globally (Tier 1, Tier 2 firms) who had seen the technology manufactured before. Today, we manufacture in the U.S. but manage a global supply chain with over 137 unique vendors. High volume manufacturing will likely be in Asia with a firm we’re close to named Foxlink (sister CM to Foxconn).

Network Effect

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Econ. of Scale

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Branding

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Engineering Question

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Timing

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Monopoly

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People

• joined the board in 2016 and have been very impressed with the deep bench Andrew has assembled. It includes team members from Apple, Microsoft, and Thomson-Reuters. The firm is doing an inside round with Founders Fund, Upfront and Ludlow Ventures all participating.
• Since our founding, 4 years ago, we have had 98% voluntary retention of employees. We have let employees go when they were not performing up to expectations but we have a remarkably high retention over a long period. Today, we have 39 employees. All key hires and senior executives were recruited and have already started this Fall. Barring exceptions, we will not be making any major changes to the executive team. We will only be adding the following 5 supporting positions over the next 6 months: 1x DevOps Engineer 1x Full Stack Engineer 1x Sr. Account Executive 1x Office Manager & Shared Executive Assistant 1x Finance Support

Distribution

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Durability

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Secret

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