Bionex, Inc. is a biometric security company that addresses Identity Theft and Credit Fraud. Our unique Exigency Process eliminates the need to store images of fingerprints, reducing operating costs and improving efficiency. Furthermore, it allows for seamless integration of biometric security into existing systems and facilitates secure virtual transactions. The market opportunity for our technology is significant, with the biometric identification market projected to exceed $4.04 billion within two years. Credit and identity fraud alone cost banks and government over $47 billion last year. Additionally, new legislation and rising security concerns in the healthcare and transportation sectors will increase the demand for biometric devices. Despite potential competition from other companies such as Biometric Access Corporation (BAC), Bio Pay, Identix, Pay by Touch, and Touch Credit, Bionex, Inc. holds various competitive advantages. Our solutions seamlessly integrate into any existing platform, protect user privacy, and do not rely on a government or corporate-based database system. Moreover, our licensable design can be integrated into OEM systems and products. The marketing plan focuses on attracting new customers by gaining exposure in renowned publications such as Wired and Business Week Magazine. Positive systems reviews from ZDNET and CNET will contribute to our goal. To target banking and financial licensing contracts, Bionex will offer complimentary testing, upgrades, and POS systems. We will also establish retail distribution contracts through partnerships with CompUSA, BestBuy, and J&R Computer. Our management team boasts extensive experience in technology development, sales, marketing, finance, and customer service. Their expertise in fraud control, transaction processing, and POS payment systems contributes to the company’s success. Bionex expects significant sales and profit growth, with quadrupled sales and revenue by year five. With a capital investment, Bionex can make operational improvements to scale for expected growth.
Contents
1.1 Mission
Bionex, Inc. prioritizes providing customers and partners with unmatched security and reliability. Our security systems focus on three main areas:
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Protection – Bionex’s security systems only authorize users verified by their fingerprint. Our Exigency Process ensures no data is available for potential loss or theft.
1.2 Keys to Success
- Complete and approve all patent applications.
- Obtain initial private investment capital to fully fund development and prototype manufacture.
- Secure implementation contract with a financial institution or government branch.
- Maintain steady Research and Development funding for a diverse product line.
- Emphasize marketing campaigns to reach new customers and tap into untapped markets.
1.3 Objectives
- Receive capital injection in the first year.
- Generate significant sales by the third year of operation.
- Establish BioXert verification systems as widely used transactional tokens by year five.
- Make the BioVert device the top-selling biometric device by year five.
- Expand internationally by licensing and distributing products globally by year six.
Company Summary
Bionex, Inc. develops and markets proprietary biometric technology for transactional and identity verification in various environments. The company has pioneered Exigency, an identification process that eliminates the need for image databases and non-automated identification methods such as passwords, tokens, and smart chips, which are prone to loss or theft.
2.1 Start-up Summary
The key components of Bionex Corporation’s start-up plan are:
- Legal expenses for patent applications.
- Six-month payroll for 5 employees, including benefits and taxes.
- One-year rental expenses for office space in Manhattan.
- Establishing a Corporate Identity.
- Creating a product catalog, color brochure, and interactive website.
We require estimated start-up expenses as follows. We intend to secure sufficient funding to cover start-up, initial operation, and patent process completion costs. Our founder has already invested in the company, and we are seeking additional private investment. The raised funds will also support prototype development and first-year operational expenses. We plan to raise capital by selling shares in the company, as outlined in our business plan for Year 1.
Start-up Funding:
– Start-up Expenses: $450,000
– Start-up Assets: $111,877
– Total Funding Required: $561,877
Assets:
– Non-cash Assets from Start-up: $0
– Cash Requirements from Start-up: $111,877
– Additional Cash Raised: $0
– Cash Balance on Starting Date: $111,877
– Total Assets: $111,877
Liabilities and Capital:
– Liabilities:
– Current Borrowing: $0
– Long-term Liabilities: $0
– Accounts Payable (Outstanding Bills): $11,877
– Other Current Liabilities (interest-free): $0
– Total Liabilities: $11,877
Capital:
– Planned Investment:
– Personal Investment: $50,000
– Private Investor: $500,000
– Other: $0
– Additional Investment Requirement: $0
– Total Planned Investment: $550,000
– Loss at Start-up (Start-up Expenses): ($450,000)
– Total Capital: $100,000
Total Capital and Liabilities: $111,877
Total Funding: $561,877
Start-up Requirements:
– Start-up Expenses:
– Salaries: $280,000
– Rent: $50,000
– Legal Fees: $50,000
– Consultants: $30,000
– Computers: $10,000
– Travel: $10,000
– Office Supplies and Furniture: $9,500
– Insurance: $6,000
– Stationary, Brochure, and Catalog: $3,000
– Utilities: $1,500
– Total Start-up Expenses: $450,000
– Start-up Assets:
– Cash Required: $111,877
– Other Current Assets: $0
– Long-term Assets: $0
– Total Assets: $111,877
Total Requirements: $561,877
Company Ownership:
Bionex Corporation is a privately held New York “C” Corporation. Its principal founder controls 51% of the business. The remaining shares will be sold to raise start-up capital and future investment.
Products and Services:
Bionex Corporation will market, license, and retail three products supporting our Exigency technology:
– Xenasys: Licensed technology primarily for use in credit card and financial transactions. Unique algorithmic data, specific to each cardholder based on points collected from a fingerprint, are captured, extracted, and referenced at the point of sale with existing algorithms preserved on the card, and ultimately confirming or declining identification of the cardholder within seconds.
– Xenavex: Biometrically enhanced identification systems, protected by combining Exigency technology with potent Smart Cards implanted into the grain of the paper upon issuance; when scanned by a biometric station, the platform will transmit confirmation of identity, status, and pertinent records against the biometric and algorithmic data of the individual.
– BioXen Devices: Small, portable biometric devices in the form of adapters and keyboards to facilitate biometric transactions and verification on computers, phones, and electronic devices. These devices will be available for retail consumption for users seeking cost-effective data security. Additionally, these devices will be available as permanent installations or on-board solutions for companies and governments through lease arrangements.
Market Analysis Summary:
The biometric security industry reported estimated revenues of $601 million in 2002, with expectations for industry revenues to reach $4.04 billion by 2007 (International Biometric Group, Market Report 2003).
Banks and governments aim to prevent credit and identification fraud. In 2002 alone, credit card and identity theft cost banks and governments over $47 billion (FTC Overview Report, 2003).
Identity theft, stolen credit cards, phony checks, benefits fraud, network hacking, and other scams to defraud businesses, government agencies, and consumers cost billions of dollars per year. These issues drive up prices, increase taxes, complicate transactions, and strain law enforcement resources. Until recently, expensive screening and administration procedures have been the only way to combat the problem. Steps such as hiring security guards, maintaining accurate databases, reviewing identity documents, administering password systems, and asking personal questions are easily defeated by enterprising criminals.
Market Segmentation:
Potential domestic customers for Bionex include:
– The Government Sector, with over $1.2 billion in annual spending, particularly in law enforcement, the military, the judiciary, education, and social services. Bionex’s fingerprint authentication solutions are suitable for deployment in government operations, including government entitlement programs, law enforcement, education, the military, and government services.
– The Healthcare Industry, which is expected to be one of the fastest-growing supporters of biometric technology. Increased activity in this sector is driven by the Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the growing number of hospitals and their security and IT spending budgets.
– The Corporate IT Market, where IT security is a critical issue. Replacing passwords and PIN numbers with fingerprint authentication devices from Bionex will make access to corporate information more efficient and secure.
– The Banking and Financial Industries, with an anticipated $672 million in spending. Bionex has developed secure biometric platforms for financial services institutions, enabling a range of biometric technologies for background checks, transactional verification, physical access or internal network security systems, and ATM and teller authentication solutions.
– The Travel and Transportation Industry, which will spend $556 million on biometrics. With fingerprint authentication solutions from Bionex, operations such as checking airline employee backgrounds, controlling and managing physical access rights, controlling user access to airport computer networks/databases, and securely matching passengers to their IDs, passports, visas, boarding pass, and baggage can be implemented securely.
Market Analysis:
Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Potential Customers Growth
Government 3% 1,854 1,910 1,967 2,026 2,087 3.00%
Health Care 4% 1,801 1,873 1,948 2,026 2,107 4.00%
Corporate IT 6% 1,500 1,590 1,685 1,786 1,893 5.99%
Banking & Financial Services 3% 1,088 1,121 1,155 1,190 1,226 3.03%
Travel and Immigration 1% 1,099 1,110 1,121 1,132 1,143 0.99%
Total 3.59% 7,342 7,604 7,876 8,160 8,456 3.59%
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