Humaginarium drafted a Business Model Canvas off the cuff in 2016 and researched it in 2018. Research made us sure of product-market fit after much debate and head-scratching, but we're not done.
Our customers are consumers with a chronic illness. We make things they love (video games) to deliver what they need (health literacy), that they don't already have (clearer pathways to wellness)
We use a freemium pricing model and generate demand by seeking endorsements in both the health care and entertainment industries.
Our total market opportunity is measured in billions, and that will be reinforced as we continue our research. Health literacy done right is going to be an excellent, game-changing business.
Humaginarium elucidates commercialization with a robust model taught by Scott Meadow at the Booth School of Business, based on his copious experience in venture capital. The model requires quantitative evidence for all of our economic assumptions and enjoins us to demonstrate how Humaginarium will roll up and out on a specific timeline without surprising or harming investors.
The heart of commercialization is what Scott calls "analogs": a variety of business cases that together reference all of the risks we are undertaking. For every key activity of our enterprise, we must find at least one analog that demonstrates how the risk has been defined and successfully managed. The goal is not to constrain innovation, but de-risk it. Our commercialization will exclude confirmation bias from calculations and leave as little to chance as possible.
For months Humaginarium has researched a pro forma based on several business scenarios. We're still at it! We expect to create our first commercial products, based on validated prototypes, with seed funding of around $3 million. Since these products are templates for making other product portfolios quickly, our path to positive cash flow will be relatively straight and orderly. We don't know that yet, but that is what we’re planning.
Our pre-money bootstrapping has been managed in two phases. Phase 1 was exploratory, as in wandering through a forest at night, slamming into trees and tripping into puddles. Phase 2 is deterministic and goal-oriented. In both phases we use the Slicing Pie method of measuring and allocating equity, with a higher valuation in Phase 2. Investors will be shown a detailed, transparent valuation.
Humaginarium is working towards a non-dilutive SBIR grant from the National Science Foundation. Our preparation includes participation in two I-Corps cohorts in Ann Arbor and Newark, and a workshop in Chicago. We are also soliciting program-related investments from foundations that are committed to enhancing public health.
We likewise seek private equity for about half of our seed funding, particularly from angels who are versed in medicine and health science. We are also pitching corporate sponsorships to select providers and payers in the health care industry value and supply chains for targeted product development and testing.
Our full pitch is shared confidentially with prospects. A summary deck is available on this page.