Introduction

This company strives to be a premiere provider of innovative, high-value technology solutions to the dental market through the application of unique and patented voice activated technology. In the process of doing so, the company provides the "technological glue" that supports the information needs of dental practitioners and the business partners that support them. Over time, selected technical applications will be developed for other healthcare fields.

Product Description

The company meets an unfilled need for specialized professional integration of computer and communications technologies in the dental market. The idea behind the business is not new. Systems integration companies have a proven track record of success. What is new is the application of these practices to the dental market. The company connects the information needs of the dental community to the proper computer and communication technologies to satisfy their requirements.

The company is uniquely positioned to provide two specific voice activated applications for the dental market, including "Chairside," a clinical application used to record patient treatment, and "Wildfire," a telecommunications service that improves a provider's after-hours availability. The company is also developing new voice activated and Internet "bridge" dental applications.

Market for the Product

There are 150,000 dentists in active practice in the U.S. Of these, 92 % are in private practice. Of those who are in private practice, over 53% have gone into private practice within six years of graduation from dental school. The demand for dental services will only continue to grow each year. As that market grows, there will be increased demand for the products and services offered by the company.

There are approximately 6,900 doctors/dentists within the Wildfire franchise area serviced by this company. A 3% share of that market area would represent 207 subscribers or $300,000 in annual recurring revenue. Additionally, vendors/service providers to these practitioners constitute another market which has the potential to add approximately $150,000 in annual recurring revenue.

Beyond the provision of Wildfire services, dental automation and other services hold the potential to increase from the current level of approximately $600,000 to over $ 2 million in three years as outlined in the business plan. Overall, total sales by year 3 are projected to increase from the present level of $765,000 to over $3.3 million.

The Opportunity

While the company is well positioned for the market, it needs to create a dedicated sales and technical delivery force to meet the increasing demand for its services. Also, the company needs to acquire two existing companies to expand its market reach. One of the companies is a small systems development and integration company providing systems engineering staff, field service personnel, development expertise (particularly Web applications) and some development technology and infrastructure. The other company will be a dental Web content provider.

Capital Requirements and Use of Funds

An initial capital infusion of $500,000 is needed to staff a sales and technical team as well as launch a market development and sales program. Subsequently, $1.5 million is needed to acquire two existing companies and undertake new product development activities as outlined above.

Exit Strategy and Payback

It is anticipated that the company will grow to the point that it will be a viable candidate for an IPO or a merger/acquisition target by a healthcare or technology firm.

Management Team

The two founders of the company both have significant management skills which complement one another. Each person has had over 25 years of experience including extensive work with new venture start up companies in the healthcare and technology management markets.