Quarterly Report 1Q13 April 15, 2013

Transcription

1 UCF Business Incubator at Daytona Beach International Airport Quarterly Report 1Q13 April 15, 213 As outlined in the Agreement between the UCF Research Foundation and the Volusia County Economic Development, UCFBIP-Daytona Beach International Airport is to submit quarterly reports to the County. The UCFBIP must show the amount of leased space, the types of businesses present, jobs created, and the number of workshops held. Report Prepared by Connie Bernal 1

2 UCF Business Incubator at Daytona Beach International Airport TABLE OF CONTENTS 213 First Quarter Report Page # Summary Report Strategies Status 6 Incubator Metrics 7 8 Anchor Tenants 9 Number of Visitors 9 Occupied Space 9 UCF Business Incubator Companies by Industry 1 Appendixes 1. Current Client Companies Descriptions and Status Report Prepared by Connie Bernal 2

3 UCF Business Incubator at Daytona Beach International Airport Summary Report During the first quarter of 213 the UCFBIP at DBIA operation kept progressing as planned. Our focus for this quarter was to review and determine the clients current business position and to find ways to help them find solutions to the current obstacles that they have been facing. After the discovery of client needs, we reached out to talent at local higher education institutions. Stetson University and Bethune-Cookman University joined our efforts as part of the Daytona Beach Incubator team with the common goal of helping the incubator clients. In addition, the Cairns Foundation expressed interest in working with the Daytona Incubator to support local technology students with their inventions. While reaching out to multiple higher education institutions, we discovered that the Volusia County entrepreneurial ecosystem is growing at a high rate and that several local entities could provide support and can be successfully aligned with our efforts and program. The following were the endeavors coordinated under UCFBIP DBIA management with other institutions: Bethune-Cookman University s Entrepreneurship Program provided two free interns. The business students were trained in our facility and placed as the research staff for our clients. Stetson University MBA program students met with four of the incubator companies and did a second round with two clients, Fusion Fitness Designs and Choose Rain. For Fusion Fitness Designs the result was the development of the business plan and low cost manufacturing and sales strategies. For Choose Rain, the MBA students proposed a lower cost process and completed a survey to identify customers preferences in terms of water consumption. These findings helped our incubator clients to redirect their marketing strategies. The Cairns Foundation s approach resulted in a team effort for the Cairns Foundation First Annual Innovation Challenge for university students in Volusia County. This initiative will start in winter 213. The Innovation Challenge spotlights commercially viable technologies generated by the finest student minds at colleges and universities in our area. Both undergraduate and graduate students from Embry-Riddle Aeronautical University, Bethune-Cookman University, University of Central Florida (UCF), Daytona State College, Florida Institute of Technology, and Stetson University are eligible to participate. Finalists from the six schools will present their innovative ideas to a group of local investors, providing the student entrepreneurs with a possible opportunity to advance their technologies through commercialization and early-stage funding. Finalists will compete for the $5, Cairns Foundation Innovation Prize and One Year Enrollment in the UCF Business Incubator Program. Both prizes will be awarded to the innovation deemed to have the greatest commercial potential. Only currently-registered students are eligible to participate (1). This initiative will help the incubator to continue to examine ways to support Volusia County s young, technology-savvy students, so that they will find the assistance needed to launch future successful technology companies in this area. (1) The Cairns Foundation Report Prepared by Connie Bernal 3

4 UCF Business Incubator at Daytona Beach International Airport Once the current business position analysis was completed for each company, we created a series of sessions addressing the immediate needs identified. A persistent common obstacle to most entrepreneurs is the lack of time dedicated to develop a business plan and to do research about their industry. Consequently, we developed a three-day Boot Camp for the incubator clients, which was held on March The Boot Camp s objective was to help the entrepreneurs to work on their businesses not in their businesses. The goal was achieved by allowing the participants to step aside from the regular activities and concentrate on the planning, strategy, and leadership view of their companies. In addition, four individual speakers sessions were opened to the public with 3-4 people in attendance. This event provided valuable information on hands-on business plan development. Attendees evaluations indicated high ratings on the topics and methodology. Two of the outside participant companies expressed interest in joining the incubation program. The most important goal that we accomplished with this event was that most of the clients finished their business plans with very professional market analyses. The individual sessions, along with the business plan development, helped us to know more about the growth of future incubator clients. Attached to this report you will find more information about the cycle and status of Daytona incubator companies. As I have mentioned on different occasions, our region has an amazing potential to be the next successful technology region in Central Florida due to the proximity to several successful universities like Embry-Riddle Aeronautical University, Stetson University, Bethune-Cookman University, Daytona State College, and the University of Central Florida. The Innovation Challenge will be an annual event to encourage our young talent to remain in Volusia County. As a result of our findings regarding the current incubator clients business position, we confirmed that these Volusia County companies are following a growth pattern similar to the rest of the country based on U.S startup statistics. All companies go through some very distinct stages of growth before reaching their goal of sustained profitability or exit strategy. Following is the experts view on these stages: Embrionic Stage/Idea Seed Mid Stage Growth Stage Expansion Exit Company is formed Prototype No money in the bank Friends and family $$ Needs Initial Funding Market Research Series A round of funding Market-driven company with some customers Needs Series B round of funding to grow efforts are focused on brand awareness and product acceptance, while driving new leads to the sales team Liquidity event for the Angel Investors or V.C's exit IPO M&A Remain Private YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 Report Prepared by Connie Bernal 4

5 UCF Business Incubator at Daytona Beach International Airport Entrepreneurs are constantly too optimistic about how easy it will be to acquire customers and establish a market. The reality is that startup companies have to work very hard and spend significant amounts of money in marketing to find their customers and get into the right market niche. Among the current clients of the Daytona Incubator, approximately 3% have not passed midstage due to the lack of funding from investors. Multiple efforts have been executed in order to find investors for these companies. The remaining companies are following the growing pattern as planned. During the up-coming two years, most of the companies will be achieving a point where their businesses will stabilize and start producing the expected results. Growth is reached by consistency and perseverance. Renewal of the funding agreement between Volusia County and UCF Research Foundation will guarantee the continuous support required by companies participating in the Volusia County Incubator initiative. Last but not least, we have added Mr. Gregory Smith as our on-site Coordinator, Research Programs/Services. He has a BS in Economics as well as a Masters in Planning and Development and is almost finished with a second Masters in Business Administration at ERAU. His expertise in Research and Development and Financial Management, among other areas, should prove to be beneficial to our clients. Report Prepared by Connie Bernal 5

6 UCF Business Incubator at Daytona Beach International Airport Strategies Status: Find SBIR/STTR Grants Find Local Angel and VC Group Search Out Talent at the Universities Search Out Small Firms with Potential to Grow and to Export Find SBIR/STTR Grants for the companies Incubator companies with potential to contract with the goverment were trained on how to find grants and contracts with the goverment. One Incubator client submited a proposal to win $1, prize from the Department of Energy. (waiting for response) Find local Angel and VC Group One Angel local group has been identified. We are waiting for their launch. Clients who are seeking funding are ready to pitch. Stetson University VC group may start soon. Letters of support were submitted. Hopefully, they will launch in October. Search Talent at the Universities Daytona Incubator partnered with the Cairns Foundation to start a Technology Challenge for Volusia County University Students. Several talks at the higher education institutions provided by Daytona Incubator Management led to excellent partnerships that have helped incubator clients. Search Out Small Firms with Potential to Grow and to Export One new company has been identified to become an incubator client. This company needs help with their business expansion. It is a business with a lot of potental. CEO will take the EIE Class. We will continue looking for second stage companies to help with their growth strategy. Report Prepared by Connie Bernal 6

7 UCF Business Incubator at Daytona Beach International Airport 2. Incubator Metrics: 2.1. Incubator Metrics By Quarter: Metrics 1Q13 2Q13 3Q13 4Q13 # of Jobs 37 # of Companies 13 # of Interviewed Prospects 4 # of Companies Applied 1 # of Companies Accepted Graduate Companies Clients Websites: Company Name Status Company Website 1. AbM Engineering On-site Client 2. Abraham Rosa Seasonings Off-Site Client N/A 3. B3B Off-Site Client 4. Best iproducts.com Off-Site Client 5. Choose Rain On-Site Client 6. Fusion Fitness Designs On-Site Client 7. Bounce Forward Off-Site Client 8. Better Firearms Designs / Network Custom Guns Off-Site Client 9. Festival Designs On Site Client 1. Delta Dynamic Developments On-Site Client N/A 11. Klein-Yaney Media Off-Site Client AquaSolve LLC Off-Site Client N/A 13. First Response Disaster Team Off-Site Client Report Prepared by Connie Bernal 7

8 UCF Business Incubator at Daytona Beach International Airport 2.3. Training and Conference Room Use: Company Name 1. Client/Tenants Use of Rooms 8 2. Client Review With Gordon 6 3. Outside/Community Use Incubator Workshops Incubator Presentations, CEO Roundtables, and Educational Events Events Incubator Presentation/Tour Leadership Daytona/Daytona Chamber Incubator Presentation/Tour New Volusia County Council member, Deb Denys Incubator Presentation/Tour Flagler County Council Member, Frank Meeker Incubator Presentation/Tour Dr. M. Halkides, Bethune Cookman University Incubator Presentation/Tour Dr. W. Andrews, Stetson Dept. Mgmt & Intern l Business Entrepreneurial Mornings at the Incubator Social Media by Ken Countess Three-Day Boot Camp to teach clients business plan writing techniques. The event included four presentations by keynote speakers, which were open to the public Q/A with the Mentor One-on-one meetings with experienced entrepreneur, Dr. Jim Cairns, allowed entrepreneurs of all levels to ask questions. Report Prepared by Connie Bernal 8

9 UCF Business Incubator at Daytona Beach International Airport 3. Anchor Tenants Company Name SBDC PTAC / Derek Hudson Florida Virtual Entrepreneur Center 4. Number of Visitors: Occupied Space as of March 31, 213: 1,232 sq. ft. = 34.9% of space filled Occupied Space Occupied Available Report Prepared by Connie Bernal 9

10 UCF Business Incubator at Daytona Beach International Airport 6. UCF Business Incubator Companies by Industry Technology AbM Engineering AquaSolve Delta Dynamic Developments Better Firearms Designs Manufacturing Bestiproducts.com Choose Rain Fusion Fitness Designs Abraham Rosa Seasonings Services Klein-Yaney Media Best3Bids.com Bounce Forward First Response Disaster Team Festival Designs 6.1. Company Description and Status: See Appendix #1 Report Prepared by Connie Bernal 1

11 Incubator Program. Most of AbM s milestones have been developed in the incubator, and the entity continues to win more contracts and clients. Engineering Services Industry and Market Value: CEO: Dr. Magdy Attia Engineering Services: Founded in 23, AbM Engineering is a firm that offers engineering services to small businesses who otherwise can t afford or don t have the need for fulltime engineers. The company, which specializes in mechanical, aerospace, drafting and software engineering, also offers CAD training and LEAN engineering consulting. In addition, the company has developed a technology that will be used in the wind turbine industry. Milestones Reached at the Incubator Competitor Analysis Contracts research Contracting with Government Business Model Grant Proposal Preparation Success Planning Sessions Investor Presentation Intellectual Property Entrepreneurship Business Development Sales Strategy Funding Franchising Current Business Position: The engineering services are up and fully operational, helping the company to be self-sustainable. The company has been successful in obtaining government contracts for engineering services and other private contracts. The company continues to grow under the Incubator unit and is one of the success stories of the services provided by the Daytona According to IBISWorld Report for the projected period up to 217, the industry is anticipated to grow as the economy recovers, the value of construction rises, and demand from key downstream markets revives. Revenue is forecast to increase at an average rate of 2.9% per year to a total of $211.2 billion in 217. Profitability is forecast to improve slightly, particularly among large operators that provide high margin services like construction management. Competitors Company Name Market Share Net Sales Number of Employees Location Epsilon Systems NA $124.M 1 San Diego, CA Solution Inc. DMD LLC NA NA Eoir Technologies Inc. Radiance Technology/Colsa Corp Incubator Client Cycle and Status: REVENUE($MILLIONS) Customers NA $17.3M 16 Frederickburg, VA NA $138.32M 421 Huntsville, AL Current Business Position STARTUP CYCLE Contracting 1 with the Goverment Private Companies Commercial Projects Government International Private and Government Bodies

12 and gain international protection for them as well. SG&A is also included in this analysis. Based on their conservative sales projections, they will break even in year 2. Their longterm plan, in year two, calls for an additional $1.2M investment to establish their manufacturing capability and sell directly to OEM's. AbM Reduction Drives CEO: Dr. Magdy Attia Product: Gear Box: AbM Reduction Drives, LLC (AbMRD) is a limited liability company organized in the state of Florida. They are dedicated to manufacturing and selling an innovative gearbox, named the CRD, for the wind turbine industry. AbMRD was started by the team from AbM Engineering, LLC, (AbM) a successful engineering consulting firm in Daytona Beach, FL. To date, AbMRD has secured a patent for the device, developed the complete engineering and manufacturing know-how with proof of concept prototypes, secured relations with manufacturing facilities, and identified several potential customers. They are currently in preliminary negotiations with those customers: receiving data from them, and have commenced the design of CRD drives to go into their respective wind turbines. Milestones Reached at the Incubator Competitor Analysis Patent Development Investor Presentation Business Model Financial Projections Human Resources Franchising Sales Strategy Social Media Patents CEO Development Current Business Position: At the beginning of May 213, AbM Engineering CEO will start looking for funding. Initially, he will need $5, to begin sales. The funds will be used to finalize the design and begin testing of a prototype and ultimately build and install a test gearbox for one of their customers. Funds will also be used to create and manage a small assembly line with their manufacturing partners. Additionally, some funds will be employed to file new patents Wind Power Market Value: According to IBISWorld Report for 212, the US Wind Power sector is a $4.4B industry growing at 1% annually, while the US Wind Turbine Manufacturing sector is a $6.7B industry growing at 4% annually. At roughly 13% of the cost, gearboxes and gearbox-related transactions account for a combined $1.43B industry dominated largely by planetary-style gearboxes. Competitors Company Market Gross Net Sales Percentage Location Name Share Sales of wind turbine systems Sales GE Energy 49% $43.69B $NA NA% Atlanta, GA Vestas Wind 15.8% $7.56B $214.95M 88% Randers Denmark System Siemens AG 1.8% $1.6B $5.7B 33% Munich Germany Gamesa 7.9% $3.9B $66.94M 93% Vitoria Álava Spain Corporación Tecnológica Clipper WindPower (UTC) 3.5% $5.3M $NA NA% Cedar Rapids, IA Incubator Client Cycle and Status: REVENUE ($MILLIONS) Customers ABM Engineering Current Position Patent STARTUP CYCLE Business Plan Start up Manufacturing Round A Investement Private Individuals Private Companies Commercial Projects Government International Private and Government Bodies National Sales International Sales

13 AquaSolve AquaSolve CEO: Mr. Yung Wong Mr. Yung Wong is a Graduate Mechanical Engineering student at the Embry-Riddle Aeronautical University. He has developed a new system for the purification of drinking water that has been used in places like Haiti. His company consists of a group of principals that are developing water purification systems for a variety of markets. The initial product is a solar powered water purification backpack that can be used for disaster relief, military, or people who live off grid. Other products include a large scale water purification system that supports the backpack through maintenance in the field and is also able to purify water for thousands of people every day. Milestones Developed at the Incubator Patent Improvement Website design R&D Product Development Connections Financial Projections Business Direction Franchising Sales Strategy Social Media Patents Current Business Position: AquaSolve is still in the Research and Development Phase of operations. The CEO has participated in the Incubator s event and is in the process of completing its. In addition to which, designs are currently on the way to determine the nature of the final product. Pure drinking water Industry and Market Value: According to the IBISWorld Report, there will be an industry recovery during the five years up to 217, with revenues forecasted to grow at an average annual rate of 2.1% to $5.3 billion. In 213 revenue is estimated to grow 2.2% as disposable income increases. This growth will be supported as consumers change their drinking habits to healthier versions of beverages with lower sugar and calorie levels. The recent findings of arsenic in juices will also cause a switch to water as a more suitable and healthier alternative. According to SBI, the consumer water purification/treatment market was worth a projected $12 billion in 21, and was expected to approach $17 billion in global sales by 215, growing slower than the industrial market because of high unemployment and low consumer confidence. The industrial segment of the market was expected to drive growth,from a projected $22 billion in 21 to an expected $33 billion by 215. Competitor Name Nestle S.A. Within the United States, according to the Wall Street Journal, the home water filtration products market was projected to grow 18 percent, from $2.47 billion in 29 to $2.91 billion in 212. Per capita bottled water consumption dropped 3.5 percent in 29, as the market continued to shift toward home water filtration products. Start-up Cycle and Status: Customers: Market Share NA Net Sales $83.64 B in Revenue Private Individuals Customers Commercial users Military Disaster Relief Organizations International Military and Civilian bodies Number of Employees 328, Poland Springs NA $1Billion 25, Arrowhead Water Company Danone Group s Evian AquaSolve Current Position 5 Incubator 4 Client Cycle and Status Prototype REVENUE ($ MILLIONS) NA $1M 11 Location Vevey, Switzerland Subsidiary of Nestle, Vevey, Switzerland San Bernardino Mountains, California NA $3.71B 25, France STARTUP CYCLE International Sales Local & national Sales R&D Patent Sourcing Start Up Manufacturing Investment YEARS

14 Delta Dynamic Developments Industry Outlook: Revenue growth for the Specialist Doctors industry is forecast to accelerate during the five years to 217, increasing at an average annual rate of 5.2% to $553. billion. Revenue is forecast to rise 5.1% in 213, indicating an improving economy. The aging population and an increasing number of individuals with healthcare insurance coverage will boost demand for industry services in the following years, while healthcare reform will be a mixed bag for the industry. CEO: Dr. Allen T. Jackson Florida Eye Research and Surgical Therapy (FERST) Eye Institute is the principle business of Dr. Allen T. Jackson. It was started with the support of SBDC at DSC under the helpful direction of Connie Bernal. He was accepted as an Incubator client and, upon completion of requirements for the same, became an onsite participant in June 212 relative to the 3D tear initiative. 3D is a company started by Florida Eye Research and Surgical Therapy (FERST) Institute owner Dr. Allen T. Jackson. Dr. Jackson, an ophthalmic surgeon treating all types of eye related diseases, has developed a new eye drop to treat dry eye and ocular surface inflammation. The new eye drop (3D bottle) will be the quintessential treatment for dry eyes, but furthermore, the bottle will usher in a new day for eye treatment allowing single drops to be administered simultaneously when before this was only possible in limited cases by biocompatibility of active ingredients. The 3D bottle simply and cleverly gets around the age-old issue. 3D is also working on other medically-related products to enhance and maintain healthy eyes of the general community. Milestones Reached at the Incubator R&D Loan Application Financial Projections Business Dev. and Review Expansion Strategy Success Planning S. Human Resources Franchising Funding Sales Strategy Business Discipline Social Media Employment of specialist doctors is projected to grow at an average annual rate of 2.5% to 2.7 million during the next five years. Job growth will occur because of continued expansion in healthcare-related industries brought on by the aging population and expansion of insured individuals. Despite mounting demand for industry services, some factors will temper growth. The rising cost of healthcare could considerably check demand for industry services, which is sensitive to changes in healthcare reimbursement policies. If changes to health coverage result in higher out-of-pocket costs for consumers, demand for physician services may fall. Some specialist doctors fear that healthcare reform will cause reimbursements from government insurance to decline, while the percentage of the population covered by government insurance rises, causing margins to fall. Competitors: Company Name Florida Eye Clinic Filutowski Cataract & Lasik Institute Eye Physicians of Central Florida Incubator Client Cycle and Status REVENUE ($ Thousands x 1) Delta Dynamic Developments Current Market Net Sales Number of Location Share Employees NA $.56M 1 Lakeland, FL NA $3.7M 55 Lake Mary, FL South Daytona NA $2.6M 31 Longwood, FL International Sales 2 1 Local & National Sales Eye Drop -1 R&D Develop Lab -3 Raise Funding YEARS Current Business Position: 3D is a Florida Corporation that prides itself on producing products that advance the public health. Market research is in progress; 8% completed. 3D is seeking financing/equity partners to the value of $3K for business expansion. Customers: Optometrists in the US Home Care Providers in the US Hospitals in the US Psychiatric Hospitals in the US Nursing Care Facilities in the US Individuals with eye diseases.

15 BETTER FIRE ARMS CEO: Mr. Cliff Benjamin Better Firearms Designs LLC is a gun manufacturing company that currently has a patent on a gas-retarded blowback system that provides a cost effective way to retrofit 1911 pistols for greater accuracy, greater reliability and less recoil. Milestones Reached at the Incubator the upcoming five-year period. During this period up to 217, revenue is projected to grow at a rate of 3.5% per year on average to $13.9 billion. There is also a significant impact by the military and state departments as the external security environment is placed on higher alert status as the threat of military infractions escalate. This ultimately means that there will be a heightened local desire to continue to augment their individual security status culminating in increases in the purchase of firearms and ammunition. With the creative and innovative designs offered by Better Firearms, we can witness a move toward greater personal preferences and customization of products which many manufacturers may not offer. There is a high probability that this business can become a successful manufacturer of the gas retarded patent that it currently possesses. Competitors: Branding Strategy Investors Presentation Financial Projections R&D Business Valuation Government contracting Licensing Patents Funding Franchising Sales Strategy Human Resources CEO Development Company Name Freedom Group Inc. Market Share NA Net Sales ($6.7M), Revenue in excess of $8m Number of Employees Aliant Tech Systems NA $247.2M 17, Stum Ruger & Company NA $4M 1,1 Smith & Weston NA $412M 1,453 Location 2,8 Madison, NC Arlington, Virginia Southport, Connecticut Springfield, Massachusett s Current Business Position: This business has in place a registered patent for the manufacturing of the gas retarded system. Extensive market research has been completed, and the company is in the process of completing its business plan. In order to move the project forward, Better Firearms Designs LLC requires $5, to design and manufacture its designs for both the civilian and the military sectors. Due to the lack of investors, the client was advised to change his business strategy. Today the client is seeking to contract with the government to assist in improving their firearms. Regarding his patent, the client is working on branding so he can sell his patent to one of his biggest competitors. Guns and Ammunition in the US Industry and Market Value: According to the IBISWorld report, the Gun and Ammunition Industry has grown strongly during the last five years up to 212. Over this period revenue is expected to grow at a rate of 5.7% per year on average, with revenue increasing 8.25% in 212 to $11.7 billion. Due to the political climate and the escalating increase in gun related crimes there is expected to be moderate growth for Incubator Client Cycle REVENUE ($THOUSANDS X1) Customers: START-UP CYCLE Better Firearms Designs Current Position Patent Manufacturing Facility Investor YEARS START-UP Private individuals Customers Commercial Customers Military Internationally to allies around the world Commercial and other foreign customers National sales

16 CEO: Mr. Robert Skelton Developed by Robert Skelton, the ieraser is the company s flagship product. The ieraser is unparalleled in its ability to clean fingerprints and smudge from glass-screened tablets, monitors and flat screen TVs. The ieraser combines a micro fabric cloth which uses the principles of absorption and static electrodynamics, to easily and quickly lift grease and grime off of a computer screen, whether it is on an ipad, Tablet PC, desktop or laptop. The ieraser works without the need for any cleaning fluids or wipes, which are typically messy and inconvenient to carry around (especially for air travelers). Best iproducts.com is one of a select few companies which has been carefully selected to showcase the latest in design and innovation in electronic products and accessories. The company is a 1% American business, with all assembly and design work carried out in Volusia County, Florida. The ieraser received an outstanding reception from the 153, attendees at 212 CES, notably for its simplicity and effectiveness in providing a wipe and go solution for cleaning all glossy glass screens such as ipads, tablets, touch screens and flat screen TVs. Milestones Developed at the Incubator Branding Strategy Patents Round A Funding 28k R&D Startup Manufacturing Investor Presentation Contact Amazon Success Planning Sessions Intellectual Property Funding EIE Class Current Business Position: After signing the contract with Amazon, client has been looking for strategies to get his product into the market. Sales have slowed down. Client is actively seeking a Round B Investment ($3k) to develop a sales strategy. Competitors: Company Name United Stationers Falcon Dust Off Gaming Gear 3M Cleaning Kit HP Cleaning Kit Incubator Client Cycle and Status REVENUE ($Thousands x1) Customers: Market Net Sales Number of Location Share Employees NA $5.8B 11 Deerfield, IL NA $M NA NA NA $29.9B 1, St. Paul, MN NA $M NA NA START-UP CYCLE Private Individuals Customers Commercial users BestiProducts Current Position Online Sales Round B Investment 1 Hired 4 Emp. -1 Patent Started Up Manufacturing In Edgewater -2 Round A -3 Investment -4 YEARS START-UP

17 bottled sales will likely surpass $1 billion with $225 million in Central Florida alone and a $1 billion market worldwide. Previously all bottled water has been basically the same. The competitors bottle water drawn from the aquifer or simply process tap water. The majority of this water has been treated with chlorine. Choose Rain is bottled rainwater, pure and simple. The rainwater is captured before it hits the ground. Ozone is infused into the rainwater during storage. It is UV sterilized, micro filtered and injected again with ozone before bottling. No chlorine or other chemicals are present, added or removed, so Choose Rain retains the natural, velvety sweet taste of fresh rainwater. Competitors: CEO: Mr. Larry Curran Choose Rain is a company that collects and bottles rainwater in biodegradable and recyclable bottles. The system is ecofriendly and uses rainwater and not tap water. It utilizes ozone and UV rather than chlorine to purify the water. Besides being biodegradable (3-5 years) the bottle carries a 38mm PLA biodegradable cap. Choose Rain has an Ormond Beach facility that can capture 2.2 million gallons of rainwater annually from its 75, square foot roof. Owner Larry Curran promotes the ecofriendly water as an alternative to other bottled waters on the market and anticipates that his company will change the way Floridians view bottled water. Company Market Net Sales Number of Location Name Share Employees Nestle S.A. NA $83.64B in Revenue 328, Vevey, Switzerland Poland Springs NA $1Billion 25, Subsidiary of Nestle, Vevey, Switzerland Arrowhead Water Company Danone Group s Evian Cycle and Status NA $1M 11 San Bernardino Mountains, California NA $3.71B 25, France Product Milestones Reached at the Incubator Review Branding Logo Bottle Redesign Connections Stetson Group Survey Success Planning S. Current Business Position: Intellectual Property / Social Media Human Resources Raising Money for Your Business Choose Rain is still activel y seekin g fundin of $1.3M to open its bottling facility in Ormond Beach. Once this is completed, the company will start marketing in the state of Florida, then nationally to other states and culminating to internationa sources. Client will have his UCFBIP first year evaluation at the beginning of 2Q13. Bottled Water Market Value: Bottled water sales have increased 64% in the past ten years from $7.5 billion to an estimated $12 Billion in 212. Everyone everywhere is drinking bottled water. Florida REVENUE ($THOUSANDS X1) Customers START-UP CYCLE Choose Rain Current Position Residents of Volusia Residents of Florida Residents of the United States International Community at larg Round A Investor YEARS Local Sales National Sales START-UP CYCLE

18 CEO: Ms. Phaedra Lee FFD provides high-end, sleek and stunning fitness strength training equipment which can be customized for in-home, high end, commercial and commercial-residential use with endless additional possibilities. Their quest for perfection and expert workmanship produces the highest quality products, blended with old world techniques that reflect their passion. Equipment can be customized using paint, upholstery, and other features including top quality parts and uniquely styled craftsmanship. Fitness, Nautilus, and Precor. The industry is concentrated: the top five companies account for more than 5% of revenue. According to the IBISWorld Report, the industry revenue is expected to grow at an annualized rate of 1.4% to $25.9 billion over the next five years to 213, including growth of 2.5% in 213. It is forecasted that revenue will expand at an average annual rate of 2.9% to $29.9 billion over the next five years to 218. Players in the market are expected to take advantage of the expected increase in health care membership to over 58 million individuals. Competitors: Company Name Life Fitness (Brunswick Corp.) ICON Health & Fitness Inc. Amer Sports Corp. (Precor) Market Share Net Sales Number of Employees Location NA $3.72B 15 Lake Forest, IL NA $428.3M 3,263 Logan, UT NA $2.73B 61 Helsinki, Finland Nautilus NA $193.93M 48 Vancouver, WA Milestones Developed at the Incubator Branding Strategy Patent Investor 3k R&D Connections Success Planning Sessions Stetson MBA students Project Current Business Position: Human Resources Franchising Sales Strategy Social Media Patents Incubator Client Cycle and Status REVENUE ($ Thousands x1) Fusion Fitness Current START-UP CYCLE National Sales Investor YEARS International Sales START-UP CYCLE This company has done tremendously well in the Incubator. Apart from developing its patent, it has been able to secure an investor to the value of $3,. It is about to start manufacturing and marketing of its products on a national level. In addition, the company will be securing a showroom, enhancing its website, securing its patent and purchasing inventory. From an administration position, Fusion Designs has completed a number of training programs at the Incubator and has completed its. Fitness Equipment Industry and Market Value: The US fitness equipment manufacturing industry consists of about 1 companies with combined annual revenue of about $3 Billion. Major companies include Cybex International, ICON Health & Fitness, Life Customers: Private Individuals Hotels Government Hospitals Cruise Ship Companies Commercial users Medical Facilities Learning Institutions International Distributors Luxury and Senior Apartments

19 CEO: Ana I. Rosa-Randolph Abraham Rosa Seasonings started with the man himself, Abraham Rosa. He was born in the small town of Trujillo Alto, Puerto Rico in In 1986, at the urging of his daughter, he started Adobo Abraham ; the secret was going commercial. The product (Adobo Abraham) was a success, but in 199 things would change. 199 was the year Abraham Rosa unexpectedly passed away. A bad storm, on a fishing trip (his second love) with friends was to blame. All businesses related to Abraham Rosa were discontinued. Since then, the seasoning has been distributed to special friends and family. In 212 Abraham s daughter along with his grandchildren decided it was time to revive Adobo Abraham. In 213, they will be re-launching and re-branding Adobo Abraham as Abraham Rosa Seasonings. The new company will be based on the original seasoning, as well as a variety of other traditional island flavors. Milestones Reached at the Incubator Branding Strategy Website design Packaging Design R&D Launch Strategy Recipe Contest Financial Projections Success Planning S. Current Business Position: Human Resources Franchising Sales Strategy Social Media Patents Working with the Government With the Incubator s help, Abraham Rosa Seasonings will be using Daytona State Culinary Institute, Citrus Club, Orange City Culinary Institute & Le Cordon Blue schools for research and development to find new and different ways to use the seasoning. They will also serve as their testing and feedback partners. The Business plan is completed. Abraham Rosa Seasonings is seeking an outside company for production and marketing. Industry Analysis: The Seasoning, Sauce and Condiment Production industry is projected to continue growing in the next five years. Price-conscious consumers will continue to eat at home, boosting demand for industry products through retail channels. Further, as Americans expand their palate to include new tastes and flavors, they will buy more spices to replicate these eating experiences. Also, timely product introductions and clever marketing strategies will continue to drive industry revenue growth. Therefore, revenue is forecast to rise at an average annual rate of 1.4% to $18.8 billion during the five years to 217. In 213, revenue is estimated to increase.3%, which is a slight deceleration from 212 because people will likely go out to eat at restaurants more, slowing demand from the larger retail and grocery wholesale markets. Market Players & Competitors: Company Name Market Share Net Sales Number of Employees Location McCormick 17.5% $47.8M 9,5 Sparks, MD Unilever Foods, LTD. 8.2% $26.49M 1,29 Crawley, UK Kraft Foods 6.2% $1.642B 23, Northfield, IL ConAgra Foods 4.8% NA 3 Omaha, NE Bruce Foods 2.% NA 9 St. Martinville, LA Start-Up Cycle and Status: REVENUE ($ THOUSANDS X 1) Customers: Abraham Rosa Seasoning Current Position Grocery Wholesalers Supermarkets Internet Exports Food Service Industry Food Product Manufacturers START-UP CYCLE YEARS START-UP CYCLE

20 Competitors: Direct primary competitors are non-existent in this target market. Secondary competitors such as agencies, newspapers, printers, business services, sign and web design firms are fragmented, lack overall industry knowledge and lack strength in products, services and/or rapport and reputation. CEO: Kimberly Yaney Klein-Yaney Media, LLC was formed in July 211 to assist local businesses in their marketing efforts and capture market share digitally, while maintaining brand integrity. Clients needs dictated additional products and services resulting in a metamorphosis to a hybrid media company in the growth cycle. Goals are to bring premium advertising and marketing to small and mid-sized businesses to help them compete and prosper by changing consumers buying habits. Their primary focus is to work closely with clients and help them succeed in setting and meeting their marketing goals. They offer total support and a commitment to communicate their ideas in a strategic, creative, and cost-effective manner. Milestones Reached at the Incubator Financial Projections Success Planning Sessions Intellectual Property Human Resources Funding Incubator Client Cycle and Status Revenue ($ Millions) Customers: Klein-Yaney Current Position Local Sales STARTUP CYCLE National Sales Tier one businesses greater than $1M without in house marketing departments Tier two businesses without digital media currently in place Current Business Position: Owner Kimberly Yaney just opened her office location in Edgewater. She is selling and hiring. She is not looking for funding. Klein-Yaney Media Industry Outlook: IBISWorld forecasts that industry revenue will grow at an average 3.4% annually to $39.3 billion during the five years to 218. Market conditions will continue to change in favor of the industry as the economy slowly improves. Media expenditure, disposable income, consumer sentiment and corporate profit are all projected to increase in 214, driving revenue growth of 3.8% during the year.

21 completed, and the company is now prepared to begin a full-scale Sales & Sign-up campaign for Service Providers in the Volusia County market. This final stage of BETA is slated to conclude by June 1, 213 with the launch of the thoroughly tested and upgraded platform combined with an aggressive campaign to enter and dominate the Central Florida/I-4 Corridor market by the close of 213. The business is actively seeking additional capital of at least $16, to undertake this exercise and to further expand operations. Competitive Construction/Service/Maintenance/Remodeling Bidding Market Value: CEO: Mr. Mike Bowen With over 28 years of experience in construction management, Best3Bids Owner and CEO Mr. Mike Bowen has created a web-based company that simplifies the process of getting three bids for construction projects. Consumers can choose from 9 categories in the home improvement and construction industries. B3B LLC also assists contractors by connecting them with potential customers. Milestones Developed at the Incubator Branding Strategy Website design Round A Funding - $8, Website Development Focus Group Development Connections Financial Projections Current Business Position: Human Resources Franchising Sales Strategy Social Media Funding Intellectual Property B3B is in the final BETA stage. B3B's quickly gained confidence and experience at the Daytona Incubator led to early success in terms of PR, branding and investor interest. The first wave of Television, Radio and Print Media brought strong interest, usage and participation. With this overwhelming response, B3B paused live BETA testing, commissioned a Focus Study and set out to apply the lessons learned from live testing and the study results. During this period, the company was able to secure an investor who contributed $8, for equity participation. An external office was sourced in Ormond Beach, to serve Executive Administration, IT Management, Sales & and call center. B3B additionally used this period to identify and secure a higher-level of in-house IT management and marketing resources. A second Focus Study Group was recently REVENUE ($ THOUSANDS x1) IBISWorld reports the U.S. residential maintenance & remodel segment is an annual $41 Billion (USD) industry; Municipal building & maintenance additionally generates $136 Billion (USD) annually; The Condo/Apartment segment generates another $28 Billion (USD) annually. This combined $25 Billion (USD) industry lacks a single cost-effective, balanced, reliable Market Maker that provides a framework to efficiently match Consumers with Service Providers. Due to Government Incentives, the homeownership market is anticipated to grow to 67.4% by 217 which will expand the number of potential clients. As a result, revenue is projected to climb at an annualized rate of 13.5% to $77.8 Billion during the next five years. With this in mind, it is noted that the Consumer market continues to be penetrated with fraud, deception and a historical opaque nature. In addition, the Service Provider market continues to be challenged by an overwhelming proliferation of marketing mediums, lead-generation programs and increasing advertising costs with decreasing ROI. B3B is the single, balanced solution and therefore a unique business opportunity exists for its establishment. Competitors: Company Name Market Net Sales Number of Location Share Employees Home Advisor NA $39.2M 265 Golden, CO Angie s Lists NA $155.8M 726 Indianapolis, IN Handy Man NA $.8M 3 Novato, CA Net. Marin Local Rem. NA NA NA NA Quotes Incubator Client Cycle R&D Round A Funding Best3Bids Current Position STARTUP CYCLE Round B Funding YEARS Local Sales Customers: Residential Customers Commercial Customers The County, Municipalities, State and Federal Bodies Construction/Maintenance/Service sector providers National Sales

22 annualized rate of.6% in the next five years to 217. However, as the economy recovers, companies will increase spending on language training and other forms of online training. A rise in the availability of leisure time is likely to result in increased demand for the service industry. Language training is considered as a discretionary expense and an increase in per capita disposable income will support higher demand for language school services. CEO: Mr. Mike Panebianco Bounce Forward develops online training experiences for a variety of users. From ESL (English as a Second Language) for the hotel industry, to a counter-bullying program for families, Bounce Forward creates interactive learning programs that help people to live and work more confidently. Milestones Reached at the Incubator Develop the No Bullying Software Website design SBA Funding R&D Online Sales Connections Success Planning Sessions Current Business Position: Intellectual Property Entrepreneurial Mornings with Jim Cairns Currently, Bounce Forward is conducting a Hotel English Online program, a No Bully Fear program, and is in the process of designing other similar programs. Efforts are being made to conduct further market research with the aim at concluding their business plan within the short term. Bounce Forward is considering the possibility of adding a new partner with experience in online marketing. This partner would ideally bring capital to the company. It is also open to other funding opportunities to expand its current operations. Online Training Industry and Market Value: In the wake of the incidence of bullying, especially at schools, with the inevitable advent of anti-bullying legislation, it is also expected that institutions, parents and civil organizations may embark upon increased expenditure in anti-bullying training. This is good for the industry and as a consequence further growth in this type of training is expected over the next five years. Competitors: Company Name TESOL International Association American College of Education Schools Anti Bullying Preparation Academy American TESOL LLC REVENUE ($Thousands x1) Market Share Incubator Client Cycle Customers: Net Sales Number of Employees START-UP CYCLE Location NA $99.86k 1 Ottawa, Canada NA $1.9M 45 Indianapolis, IN NA NA NA Houston, Texas NA $89 k 2 Baton Rouge, LA Bounce Forward Current Position 1 2 Plan YEARS START-UP Private Individuals Commercial users Learning Institutions Civil Organizations IBISWorld has estimated revenue for the Language Industry to be $955.9M in 212. It has predicted a moderate growth of an

23 CEO: Anne-Marie Poulin A Certified General Contractor including licensed Mold Remediation in the state of Florida, First Response brings a refreshing sense of empathy and professionalism to the restoration industry. Mold Remediation as well as water, fire, and smoke restoration are the focus of First Response Disaster Team. They help people through tough times. Milestones Reached at the Incubator Growth Venture Strategy Competitor Analysis Financial Projections Success Planning Sessions Company Cycle TV Show Current Business Position: Human Resources Franchising Sales Strategy Social Media Business Direction First Response Disaster Team is growing as anticipated. They were instrumental helping families during Hurricane Sandy. They are going to move from their home-based business to a commercial facility in Edgewater. They are hiring. First Response Disaster Team Industry Outlook: The Remediation and Environmental Cleanup Services industry is projected to grow over the next five years, albeit at a slower pace than in the past five years. Revenue is anticipated to rise, bolstered by gain from the private sector, at an average annual rate of 3.4% to $22.9 billion in the five years to 217. As the economy gains steam, more construction starts are expected, and heavyindustry plants that use hazardous materials will expand slightly in response to demand for energy and mining products and services. As a result, these downstream markets will inevitably increase their demand for industry services. The expected increase in the private-sector s share of industry revenue will represent a reversal of the previous five years when the recession hampered financing for private construction-related projects. In the next five years, these industries will likely benefit from improved economic conditions and renew construction efforts or explore for more oil. Government spending on remediation and cleanup services will still be a significant source of industry growth. However, these pay-outs will likely decline slightly as deficit issues plague new spending initiatives. Natural disasters and other accidents will remain potential catalysts for government allocations for these services. Meanwhile, increased environmental regulation from the federal government will cause potential private customers to demand industry services to ensure compliance. Competitors: Company Name Market Share Net Sales Number of Employees Location ServPro NA $29.8M 111 Gallatin, TN Environmental Cleaning&Restoration NA NA NA Geismar, LA Restorative Pros NA NA NA Winter Park, FL Incubator Client Cycle and Status REVENUE ($MILLIONS) Customers: First Response Disaster Team Current Position Building Remediation Site Remediation Environmental Remediation Leaking Underground Storage Tanks Hazardous Waste Collection Transportation Services Nonhazardous Waste Collection Whole Food Stores STARTUP CYCLE Local Sales YEARS National Sales