business plan 2020-2024 - neurosteps · 2019. 10. 8. · business plan 2020-2024. october 2019....

BUSINESS PLAN 2020-2024OCTOBER 2019

CONFIDENTIAL - Only for Authorized People

Business PlanIndex

04 Market 06 Competitors

01

05 Business Model

07 Results

02 Challange 03 Solution

09 Funding

01 Company

08 Team

05-06

09

02

07

10

03-04

08

11-12

NEUROSTEPS in a Glance01

Com

pany

At Neurosteps we help companies Evaluate & Train the Leadership Potential of their Employees.

Our service outperforms the competition’s because Our Evaluations are Objective & Unbiased, and because Our Training helps to Enhance Managers’ Behaviors.

Our service is superior because we use Virtual Reality Neuroscience Games to obtain Unconscious Responses (over conscious ones) and Objective Physiological & Behavioral Data, processed by a Bias-Free Artificial Intelligence Algorithm.

We sell our services through leading regional Distributors of leadership assessment and/or training services.

At present we have one assessment service in the market, and we are Developing our newest Assessment & Training Service for which we have obtained a Grant by the Spanish Ministry of Innovation, Science & Universities to cover product development costs.

We are seeking Funding to be used strictly for the Global Launch of this new service. This amount will help us to Partner with the right Distributorsto properly and rapidly Launch & Position our Service in the global market in 2021.

Our financial forecasts for the period 2020-2024are a total Income of +21 M. €, with +9 M. € in Earnings. Additionally, presence in 48 Countries through 98 Distributors.

01

Less than 20% of organizations believe they have the right leadership in place to remain competitive which is critical as 52% of a company’s long-termprofitability is directly related to the quality of its leadership team.

Attracting, Evaluating and Developing Leadership Potential is not being rightlysatisfied

“Assessing leadership skills is much more difficult, and it is something that is almost impossible to find out in an interview.”Laszlo Bock, Vice president Human Resources Google - New York Times

“Companies spend enormous amounts of money on employee training. For the most part, the learning doesn’t lead to better organizational performance, because people soon revert to their old ways ofdoing things.”Michael Beer et al. - Harvard Business Review

References: [01-10] in page 21-Annexes

46% of new hires fail.

3 X annual salary cost of wrong hiring.

50% of newly promoted leaders fail.

60% failure rate for traditional assessmentmethodologies.

95% of high potential programs fail.

70% of job training knowledge is not being transferred.

Current SCENARIO02

Chal

leng

e

02

3.- TRAINING• Customized training plan.• 8 weeks duration.• The participant plays 2D and Virtual Reality

Neuroscientific games and interacts with aCoaching phone App, as well.

• “Remote” participation with VR goggles and,participant’s computer and/or tablet/phone.

• Data collected:• Bio-Signals.• Behavioral Metrics.

Assessment & Training of Leadership Competencies by means of Virtual Reality, Serious Games, Neurophysiological & BehavioralData supported by a Machine Learning run Algorithm Validated by a Neuroscientific Model

1.- ASSESSMENT• The Assessment is divided in 2 sessions:

• “On-line”–60 min. approx. Participant’s computer and/or tablet/phone.

• “In-company”–60 min. approx. Virtual Realitygoggles.

• The participant plays 2D and VirtualReality Neuroscientific games.

• Data collected:• Bio-Signals.• Voice & Semantic Analysis.• Behavioral Metrics.

4.- REPORT 2• A final report comparing initial and final

Leadership Style and Key Core Competenciesscores is generated and shared with theParticipant and/or Company.

• A key element of this report is to present theachievements made.

2.- REPORT 1• A report with the Leadership Style and Key

Core Competencies is generated and shared with the Participant and/or Company.

• The scores obtained will be used tocustomized the training content and activities.

Our Product; NEUROSTEPS LEADERSHIP DEVELOPEMENT03

Solu

tion

03

ORGANIZATIONALNEUROSCIENCEValidated & proven scientifictheories & model.

VIRTUAL REALITY & SERIOUSGAMESEmbodied experience, recreatescomplex situations.Enjoyable, involvement, stealthassessment.

DIGITAL PLATFORMSEverywhere, every time,secured, customizable.

ARTIFICIAL INTELLIGENCEEmulate human intelligence. Maximize prediction. Remove bias. Machinelearning; computational scalability.

BIOSIGNAL MEASUREMENTSImplicit measures of cognitive brainprocesses.

✓

We integrate STATE-of-the-ART Solutions under a Validated & Scalable Offering

04

03So

lutio

n


TalentAssessment

CorporateLeadership Training

$2,6 Billion

CAGR 7,5% CAGR 15% CAGR 140%

$2,0 Billion

$0,2 Billion

$4,3 Billion$4,0 Billion

Total Available Market

$14,6BServiceable Market

$1,5BTarget Market Share (10%)

$150 M

The Market is BIG & GROWING Exponentially

Assessment & Training programs whose purpose is to improve the performance of managers

$6,3 Billion

Enterprise VR Training

04M

arke

t

05

2018 2025 2018 2022 2018 2022


Market Demands & Trends Technology Trends

• 95% of organizations either plan to increase or maintain their current investment in leadership development.

• The top 5 market demands in 2019:1. Leadership development.2. Identification of high potential talent.3. Career development.4. Performance management.5. Succession planning.

• Top trends to shape the recruitment industry in the next few years include:

1. 35% said soft skills assessments.2. 34% said innovative interviewing tools.3. 29% said using big data.

• Three Trends:1. AI Everywhere.2. Transparently Immersive Experiences.3. Digital Platforms.

• Top 10 strategic technologies for the next 5 years. (3 out of 10)

1. Augmented analytics.2. AI-driven development.3. Immersive technologies.

Affects abig

market

Radically different

fromexisting

solutions

Achievable in the near

future

There is a Big Window of OPPORTUNITY Right Now

06

04M

arke

t


Distributors Market Enterprise Leadership Development -Assessment &Training of Leadership Competencies-

Companies that offer Assessment & Training services for hiring, promotion & development

1. Leadership training companies.High Potential (number of players, business figures, product fit, readiness).

2. HR consultancy firms.High Potential (number of players, business figures, product fit).

3. Coaching companies & professionals.Low Potential (number of players, product fit).

4. Headhunting & recruitment companies.Low Potential (number of players, business figures).

• Segmentation Strategy -Marketing & Sales-.• Sales incentives and promotions.• Training and Certification.• Trade Fairs.• Events and Sales Conventions.• Technical Support:

• Management Web Platform.• Leasing of hardware.• Software & Hardware Assistance 24/7.

1. Clients: Big corporations (international &national).+100 M. € in sales and/or +1.000 employees.

2. Interlocutors: HR related Directors & Executives (Development, Talent, Training, Recruiting, …).

3. End-Users: Middle & Top managers, executives, directors, HIPO employees, Potential managers &directors, …

• Open Courses, Conferences & Events.• Collaboration with Business Schools.• Scientific Dissemination (studies, papers, articles).• Social Media.• Sales Support:

• Sales & Promotional Tools.• Sales Calls Accompaniment.• Promotional Samples.• Merchandising.• Management Web Platform.

Sell-InActivities

(push)

Sell-OutActivities

(pull)

A Clear ROUTE to MARKET05

Busin

ess

Mod

el

07 Reference: [34] in page 21-Annexes

Why Distributors? How?• Quicker commercial expansion.

• Less resources needed.

• We keep our Brand Neurosteps©.

• Neurosteps gathers the participants’ data.

• Reduced credit risk (advanced payment).

• Clearly defined roles & responsibilities.

• Structured geographical distribution.

• “Pay per use”, the Distributors purchase "credits" prior to the realization of theintervention.

• Neurosteps Area Managers for support, training & portfolio development.

• Leasing of Hardware to perform Assessment & Trainings.

• Resource & Content Management Web Based Platform to provide them support, information and knowledge.

• Distributor segmentation to determine Price strategy and Sell-In & Sell-Out activities:a.Three Distributor Clusters:

1.Leadership training companies and, Coaching companies & professionals.2.HR consultancy firms.3.Headhunting & recruitment companies.

b.Sales Segmentation:1.One Criteria: Sales volume (number of credits purchased by the Distributor).2.Four Segments: (A) Platinum, (B) Gold, (C) Silver, (D) Bronze.3.Purpose: Pricing Strategies – 4 Pricing Plans.

c. Sell-In & Sell-Out Segmentation:1.Three Criteria: (X-Axis) Number & Type of Suppliers (Competitors); (Y-Axis) Potential; (Z-Axis)

Service Focus.2.Four Segments: (A) Strategic, (B) Development, (C) Transactional, (D) Basic.3.Purpose: Marketing and Commercial Strategies – 4 Differentiated Sell-In & Sell-Out Value Offerings

(type, cost, number and frequency of activities offered to each segment).

Our DISTRIBUTION Strategy

08

05Bu

sines

sM

odel

Degree of Immersivity

Assessment & Training1. Neurosteps2. Pymetrics3. Artic shores4. HR avatar5. Hire vue6. Owiwi7. About my brain8. Strivr9. Virtual speech10. Hia11. Game learn12. Humantiks13. Neuroleadership institute

(0) E

xplic

it M

etric

s –

Impl

icit

Met

rics

(10)

We have a Competitive ADVANTAGE

Training

Assessment

09

06Co

mpe

titor

s

(€51,650)

€265,950‘20

‘21

‘22

‘23

‘24

€287,637

€2,007,045€4,397,999

€2,841,702€6,176,112

€4,220,767€9,013,280

€1,359,039

The proposal is SCALABLE & PROFITABLE

10

[2020 – 2024]Turnover: +21,2 M. €

Net Earnings: +9,3 M. € Average Net Profit: 50%

Income CAGR: 102%Distributors: 98

Countries: 48

Gross Margin: 63%

Company IRR: 134%

Turnover & Net Earnings

TurnoverNet Earnings

07Re

sults

Juanjo TorderaGeneral ManagerFounder

Mariano AlcañizScientific & Product ManagerFounder

Per LokkegaardCommercial & Operations ManagerFounder

Frank BioccaChair, Department of InformaticsNew Jersey Institute of Technology

Juan TinocoCorporate Services DirectorLG Electronics

Gaetano ValenzaPrincipal Investigator - Computational Physiology & Biomedical InstrumentsUniversity of Pisa

Professionals with a SOLID Track Record

Partners

Advisory Board

11

08Te

am

Funds Contributed by Partners:250.000 €

Capital Requirements:344.000 €

Capital Usage:260.000 €Year 2020 [July-December]

84.000 €Year 2021 [January]

• Hardware:• Wages & Salaries:• Marketing & Sales Costs:• Overhead & Other Costs:

40.088 (47%)26.840 (32%)16.500 (20%)

1.169 (1%)

21,48417,484

31,454 32,787 35,787

120,787

84,597

Jul.

'20

Aug.

'20

Sep.

'20

Oct

.'20

Nov

.'20

Dec.

'20

Jan.

'21

Use of FUNDS

• Hardware:• Wages & Salaries:• Marketing & Sales Costs:• Overhead & Other Costs:

94.860 (36%)77.660 (30%)76.100 (29%)11.412 (5%)

12

09Fu

ndin

g

Fundamentals1. Model; neuroscientific leadership

model validated clinically.2. Soft-Skills; universal leadership

competencies based on soft skills.3. Integrated Service; leadership

development, that is, assessment& training.

4. Holistic Approach; personal & professional views.

Data1. Unconscious Responses; vs conscious

ones.2. Quantitative Objective & Comparable

Data.3. Neurophysiological & Behavioral Metrics.

Methodlogy1. Automatized Data Processing.2. Bias-Free AI Algorithm.3. Immersive & Experiencial

Environments.4. State-of-the-Art Technology.5. Cross-Cultural & Multigender.

Market1. Timing; good momentum, the market &

the technology is ready for it.2. Disruptive and Pioneer Solution; overall

better value offering.3. Strong Market Evidence; exponential

growth and real need for improvement.

Scalability1. Distributors; market access, fast business development and

less operational expenses and financial risk.2. Technology and 5G; cost reduction, new features (e.g.

Augmented Reality) and easy implementation and deployment.3. Operational Costs; automatized, low maintenance costs

and technology cost reduction tendency.4. Profitable; Income +21,2 M €, Net Earnings +9,3 M €, Gross

Margin 63%, 102% CAGR, 134% IRR.5. Additional Potential Revenues Streams; sales assessment

& training and B2C channel.6. Net Worth Generation Value; proven & validated, predictive &

bias free leadership assessment & training AI algorithm.

1 23 4 5

Team1. Strong Partner Team; diverse and well

blended group of seasoned professionalswith a solid track record and network.

2. Adequate Alliances; selected associations with recognized companies and professionals.

Why it is WORTH Investing

6

13

09Fu

ndin

g

AnnexesIndex

04 Market 06 Competitors

01

05 Business Model

10 Bibliography

07 Results

02 Challenge 03 Solution

09 Funding

01 Company

08 Team

08-10

16-17

21-23

02-03

11-13

18

04-07

14-15

19-20

Phase 1

Phase 2

Phase 3

2014-2018

2018-2020

2021-2024

Neurosteps Assessment• Oct. 2014 - Dec. 2016: Research, Development & Product validation of the Neurosteps Assessment.

• 201-person sample with a 94,5% correlation with the Multifactor Leadership Questionnaire (MLQ).• Two papers published in the specialized journal, Frontiers in psychology (2017 & 2018).

• Jan. 2017 - Present (ongoing): Product enhancement & Commercial validation of the Neurosteps Assessment.• More than 300 assessments sold to Business Schools and Companies: ESADE Business School, KPMG, Red Bull,

Inditex, LG Electronics, Johnson & Johnson, Luxottica, Saudi Telecom Company, …

Neurosteps Leadership Development• Jul. 2018 – Dec. 2020: Research, Development & Product validation of the Neurosteps Leadership Development.

• RETOS Program grant awarded with a grant by the Spanish from the Ministry of Science, Innovation andUniversities for the development of our Neurosteps Leadership Development tool (RTC-2017-6052-7 DEMETER).

• SMEs Innovation Seal from the Spanish Ministry of Economy and Competitiveness.

Launch & Commercialization• 1stQ – 2021: Product Launch& Sales Kick-Off.

• Deployment in 9 countries, through 11 Distributors. More than 2.000 Promotional samples.• Publicity and Promotion campaigns.

• 2021 – 2024: Commercialization.• 4 year-forecast of: +70K participants; presence in 48 Countries through 98 Distributors.

Our EXPERIENCE & KNOW-HOW01

Com

pany

01 References: [01-02] in page 22-Annexes

System 2 – Conscious Thinking System 1 – Unconscious Thinking

Measured with ExplicitResponses (Questionnaires,Surveys, Tests,…).

Measured with Implicit Responses (VR & serious games, bio-signals).

1. Subjective data.2. Rating errors. 3. Faking.

1. Objective data.2. Standardized metrics.3. Real-time metrics.

• Rational thinking.• Slow.• Voluntary.• With effort.• By rules.

• Intuition & Instinct.• Fast.• Automatic.• Effortless.• By associations.

TRADITIONAL ORGANIZATIONAL

BEHAVIOR

ORGANIZATIONAL NEUROSCIENCE

“Our decisions are guided by our emotions.”Antonio Damasio – Neuroscientist, professor and writer

“Suppose you like someone very much. Then, by a familiar halo effect, you will also be prone to believe many good things about that person -you will be biased in their favor. Most of us like ourselves very much, and that suffices to explain self-assessments that are biased in a particular direction.”Daniel Kahneman – Nobel Prize in Economic Sciences 2002

Existing Methods DO NOT Measure Unconscious Thinking

“People exaggerate their own skills. They are optimistic about their prospects and overconfident about their guesses, including which managers to pick.”Richard H. Thaler – Nobel Prize in Economic Sciences 2017

02

02Ch

alle

nge


Think professionals with strong Soft Skills have a better chance of being promoted.

ROI delivered by training in Soft Skills (with 12% higher productivity).

Employers Consider SOFT SKILLS Very Important

The Only Way to Evaluate & Train Soft Skills is through UNCONSCIOUS THINKING

94%

75%

30%

44%

93%

54%

35%

40%

40%

256%

Of long-term job success depends on Soft Skills, while only 25% on technical knowledge.

Say the demand for Soft Skills will increase by 30% by 2030.

Believe that candidates lack the vital Soft Skills needed to be successful at their job.

Consider Soft Skills an “essential” or “very important” factor in hiring decisions.

Say that Soft Skills are difficult to measure.

Consider Soft Skills to be the focus of future recruiting trends.

The positive impact of Soft Skills on salaries can exceed 40%.

Do not provide training in Soft Skills.

02Ch

alle

nge

03


• Self-Management (Emotion recognition & regulation, Positive outlook, Stress management, Risk taking, …).• Team Management (Task vs People oriented, Cooperation, Vigilance, Dominance, Humility, …).• Communication Skills (Extraversion, Social awareness, Empathy, Assertiveness, Verbal communication, …).• Decision Making & Problem Solving (Planning & organizing, Results oriented, Analytical degree, Rule

consciousness, Logical thinking, Focus, Working memory,…).• Change Management (Flexibility & adaptability, Curiosity, Agility, Creativity, Time perspective, …).

• Gaze and points of interest, Fixations, Areas of Interest, Duration, …• Pitch & intonation, Words per minute, Frequent words, Pauses, Hesitation, …• Beats per minute, Electrodermal activity, Body temperature, Time to baseline, …• Reaction time, Right vs wrong answers, Number of attempts, Inhibition, Planning time, …

TransformationalLeadership

Lead

ersh

ip

Com

pete

ncie

sU

ncon

scio

us

Resp

onse

sN

euro

scie

ntifi

cM

odel

Quantitative &Comparable

Objective Data

Solid Scientific Fundamentals

We Assess and Train Leadership in a more OBJECTIVE & EXPRIENCIAL Way

Grawe’s Consistency Theory.• Four Universal Basic Psychological Needs: 1) Attachment; 2) Control; 3) Avoidance of pain;

and 4) Self-esteem enhancement.• Two Motivational Schemas: 1) Approach; and 2) Avoidance.

04

03So

lutio

n


Automated & Bias-Free Machine Learning Algorithm

Academically and commercially validated personality, motivational, cognitive, behavioral and leadership assessments.

Scientific VALIDATION

05

03So

lutio

n

ASSESSMENTSBeta

Tester

Virtual Reality Neuroscientific Games with Neurophysiological and Behavioral data gathering.

NEUROSTEPS LEADERSHIP DEVELOPMENT

Academically and commercially validated Neuroscientific Games

Peer reviewed and approved Neuroscientific Studies+

Values A

Values N

CorrelationMinimum average

regression accuracy: 93%

Yes

No

Iteration+

References: [28-55] in pages 22 & 23-Annexes

ASSESSMENT

DATA PREDICTIONLEADERSHIP DEVELOPMENT

Bio-

Mar

kers

Bio-

Sign

als

&

Beha

vior

alM

etri

cs

Assessment

Training

• Experience.• Academic track.• Physical.• Social.• Demographic.• Hobbies.

• Self-Management.• Team Management.• Communication Skills.• Decision Making & Problem Solving.• Change Management.

• Gaze and points of interest, Fixations, Areas of Interest, Duration, …

• Pitch & intonation, Words per minute, Frequent words, Pauses, Hesitation, …

• Beats per minute, Electrodermal activity, Body temperature, Time to baseline, …

• Reaction time, Right vs wrong answers, Number of attempts, Inhibition, Planning time, …

Automatized & Iterative Process

• Leadership Potential.• Excel Areas & Areas for Improvement.

• Best fitting Training Methodologies &Activities.• Training Pace.

Predictive & Bias-Free

Artificial Intelligence Algorithm

Our PREDICTIVE & BIAS-FREE AI Algorithm

06

03So

lutio

n

VR Gadgets

07

03So

lutio

n ASSESSMENT TRAINING

• Dual-OLED displays with a combined resolution of 2880 x 1600 pixels and 615 PPI.

• Headphones that mimic the volumes, pitches, and reverberations of the real world.

• Engineered top-down for easy on and off, quick adjustment, and prolonged use. Fits a wide range of head sizes. Minimizes eye fatigue with adjustable optics. Suits almost all vision types. Even glasses.

• Integrated Eye-tracking system to track & analyze eye movement, attention & focus.

• All-in-One VR system, easy setup, no PC and no wires.

• Insight Tracking, built-in sensors to translate movements into VR and provide room-scale tracking.

• Built-In Audio, positional audio built directly into the headset.

• Oculus Touch Controllers to transport your hands and gestures right into the game with intuitive, realistic precision.

• Mimics real-life situations.• Complex situations can be

simplified.• Memorable; makes

training enjoyable and entertaining.

• Improves retention andrecall.

• Isolation from distraction.

• Repeatable and controlled exposure to emotional and stressful situations.

• Suitable for many different learning styles.

• Suited to training cognitive and affective skills.

• Can provide real-time feedback.

VIRTUAL REALITY Offers Important Benefits

08

04M

arke

t

ABIL

ITY

TOSC

ALE

Low

High

HighLEARNING EFFECTIVENESSLow

Manuals

2DVideos

On theJob

Training

1-1 Expert

Coaching or

Mentoring

Immersive Learning:• Online.• Virtual Reality.• Augmented Reality.

IMMERSIVE LEARNING is Here to Stay

Classes

09

04M

arke

t

VR/AR & 2D Games are the best choice to obtain Implicit values & to create a high degree of Immersivity

VIRTUAL REALITY GAMES are the Right Choice

(0) E

xplic

it M

etric

s –

Impl

icit

Met

rics

(10)

(0) E

xplic

it M

etric

s –

Impl

icit

Met

rics

(10)

Degree of Immersivity Degree of Immersivity

Assessment Tools Training Tools

10

04M

arke

t

Pricing4 Segments

Sell-In & Sell-Out4 Segments

11

05Bu

sines

sM

odel

A SEGMENTED Value Offering

(A) - Platinum[+500 credits/year]

(B) - Gold[500-250 credits/year]

(C) - Silver[249-50 credits/year]

(D) - Bronze[-50 credits/year]

200 €/Credit

300 €/Credit

400 €/Credit

500 €/Credit

Assessment& Training

150 €/Credit

250 €/Credit

350 €/Credit

450 €/Credit

Assessment

50 €/Credit

75 €/Credit

100 €/Credit

125 €/Credit

Training

(X-Axis) Number & Type of Suppliers (Competitors)

(Y-A

xis) P

oten

tial

(Z-Axis) Service Focus

Assessment & Training

Training

Assessment

(D) - Basic

(B) - Development

(C) - Transactional (A) - Strategic

PARTICIPANTS (End-Users)Participants:

• Profiles.• Statistics and data.• Activity and participation in Training period.

Assessment Reports:• Participant’s Report (Full).

CLIENTS (Companies)Clients:

• Profiles.• Statistics and data.• Participants’ involvement in the Training period.

Assessment Reports.• Participant’s Company Report (abridged).• Group Reports.

Management Web Based PLATFORM

DISTRIBUTORSDistributors:

• Profiles.• Certifications.• Statistics and data.• Participants’ involvement in the Training period.

Assessment Reports.• Participant’s Report (Full).• Participant’s Company Report (abridged).• Group Reports.

Credits Purchase.

RESOURCESMarketing & Sales:

• Company brochures and information.• Product presentations and sales pitches.• Marketing and sales videos.

Neuroscience:• Studies and papers.• Articles and news.• Videos.

12

05Bu

sines

sM

odel

FIRST WAVE - 2021Europe (Western, Central & Southern)• Austria, Belgium, Croatia, Czechia,

Denmark, England, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Scotland, Spain, Sweden and Switzerland.

Middle East• Abu Dhabi, Bahrain, Dubai, Kuwait,

Oman, Qatar and Saudi Arabia.Oceania• Australia and New Zeland.

SECOND WAVE - 2023America (North, Central & South)• Argentina, Brazil, Bolivia, Canada,

Chile, Colombia, Mexico, Peru andU.S.A.

North Africa• Algeria, Egypt, Morocco and Tunisia.

Subsequent Waves:• China, India, Japan, South Korea and

Singapore.

Commercial EXPANSION Waves

13

05Bu

sines

sM

odel

Reference: [56] in page 23-Annexes

Virtual Speech

About my brain

NeuroLeader-ship instituteNeurosteps Artic shoresPymetrics HR avatar StrivrHirevue HiaOwiwi Game learn Humantiks

Assessment

Training

Artificial Intelligence

On-Line Platforms(0% immersive)*

2D Serious Games(50% immersive)*

Virtual RealityEnvironments(100% immersive)*

Biosignals(100% implicit)*

Behavioral Metrics(50% implicit)*

Questionnaire & Survey Data

(0% implicit)*

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓✓✓

✓

✓

✓✓✓✓✓✓✓✓✓

✓

✓✓

✓✓

✓

✓

✓

✓

✓✓✓

✓✓

✓

✓✓✓

✓✓

✓

✓✓

✓✓

✓

✓✓

✓✓

✓

✓

✓✓

Our Solution is DISRUPTIVE & SUPERIOR

We encompass different methodologies & technologies to offer a more robust outcome14

* Figurative percentages

06Co

mpe

titor

s

• Jan. 2015• San Francisco, U.S.A.• 101-250 employees.• Funding raised: $21 M.

• They do not have assessment.• They are not focused on leadership.• They do not have intelligent virtual environments

(capture data to provide feedback).• They are based in the U.S.A. (they do not operate in

EMEA and APAC).

• Sep. 2013• New York, U.S.A.• 51-100 employees.• Funding raised: $56,6 M.

• They do not have training.• They do not have VR environments.• The so-called neuroscience games are 2D gamified

psychometric tests.• They do not capture bio-signal measures, only

behavioral and test answers.

Two TOP Competitors

15

06Co

mpe

titor

s

Abbreviated P&L

16

07Re

sults 265.950 €

265.950 €

0 €

0 €

317.600 €

209.920 €

44.600 €

24.240 €

19.400 €

19.440 €

-51.650 €

-19,4%

Turnover

Credits Sold

Hardware Leasing

Sales of Amortized Hardware

Total Costs

Wages & Salaries

Marketing & Sales

Hardware & Software

Overhead & Other Costs

Office Costs

Gross Profit

2020

1.359.039 €

1.145.624 €

213.416 €

0 €

995.107 €

570.480 €

273.087 €

84.800 €

43.820 €

22.290 €

363.932 €

26,8%

2021

4.397.999 €

3.844.190 €

551.229 €

2.580 €

1.590.020 €

1.030.360 €

255.200 €

162.450 €

106.040 €

35.970 €

2.807.979 €

63,9%

2022

6.176.112 €

5.332.929 €

769.897 €

73.286 €

2.056.090 €

1.452.580 €

280.000 €

164.250 €

117.660 €

41.600 €

4.120.022 €

66,7%

2023

9.013.280 €

7.888.582 €

1.010.138 €

114.559 €

2.796.820 €

2.046.020 €

308.000 €

217.000 €

173.600 €

52.200 €

6.216.460 €

69,0%

2024

21.212.380 €

18.477.275 €

2.544.680 €

190.426 €

7.755.637 €

5.309.360 €

1.160.887 €

652.740 €

460.520 €

172.130 €

13.456.743 €

63,4%

2021-2024

SALES Forecast

17

07Re

sults 265.950 €Income from Sales

2020

183 €Average Sales Price

1.454Credits

0Assessment & Training

1.454*Assessment

0Training

9Countries

11Distributors

0(A) - Strategic

2(B) - Development

3(C) - Transactional

6(D) - Basic

24.177 €Average Euros/Distributor

132Average Credits/Distributor

1.145.624 €

2021

323 €

3.546

3.014

532*

0

19

26

2

1

10

13

44.062 €

136

3.844.190 €

2022

266 €

14.447

9.390

9.623

433

37

52

9

16

21

6

73.927 €

278

5.332.929 €

2023

230 €

23.154

14.124

7.872

1.158

41

65

23

19

18

5

82.045 €

356

7.888.582 €

2024

220 €

35.876

21.167

12.556

2.153

48

98

39

26

19

14

80.496 €

366

18.477.275 €

2020-2024

235 €

78.475

47.694

26.037

3.744

Key ALLIANCES to Develop & Grow

Scientific & Technical

Commercial

Educational

18

08Te

am

Risk Level:

Medium

FREQUENT Not enoughresources

OCCASSIONAL Product too novel/disruptive

POSSIBLE Poor marketaccess

Delays in product development

UNLIKELY Device & hardware obsolescence

RARE Data protection &storage

Proprietorship & IPR

INSIGNIFICANT MINOR SIGNIFICANT MAJOR CATASTROPHIC

Risk Assessment Matrix

High

Low

09Fu

ndin

g

19

Risk Description Risk Mitigation Plana. Time development on track (as for Sept.’19).b. Timeline audited semesterly to comply with RETOS Program grant requirements.c. Possibility of speeding up the development if agreed (with additionally resources).

1.- Delays in product development

a. Promotional samples to potential clients.b. Collaboration with Business Schools & Universities (Neurosteps Leadership Development, Courses & Conferences, Research Chair,…).c. Dissemination of Neuroleadership knowledge (Social media & web, Open courses & conferences, Studies, Articles, …).

2.- Product too novel/disruptive

a. Partnerships with qualified Distributors (Client portfolio, Market knowledge and, Expertise).b. Neurosteps Team (Partner’s track record, market expertise & network and, Team of Area Managers –for Distributors).3.- Market access

a. Low leverage; 126 K long-term debt (7-year payback plan starts in Jul. ‘21 at 0% interest rate).b. Funding strategy planned for 2020.c. 250.000 € already injected founder’s loans to be converted to equity.

4.- Resource constraints

a. Leasing to Distributors with a 2-year back to back renewal plan.b. Agreements with manufacturers (Beta testers, Technical 24/7 service, and Rappel discounts).c. Product Observatory (Testing of new products and Sales of obsolete products).

5.- Device & hardware obsolescence

a. Audited by Datax, S.L. to comply with European General Data Protection Regulation (GDPR).b. Data stored in a cloud-safe provided by Nunsys, S.L.6.- Data protection & storage

CONTINGENCY Plans

20

09Fu

ndin

g

[01] “Lohnt sich Führung?” – Mercer Central Europe[02] “Unlock the Potential of Your Leaders” – SHL[03] “In Head-Hunting, Big Data May Not Be Such a Big Deal”, Adam Bryant – The New York Times[04] “Why Leadership Training Fails—and What to Do about It”, Michael Beer, Magnus Finnström and Derek

Schrader – Harvard Business Review[05] “Why New Hires Fail (Emotional Intelligence Vs. Skills)” Mark Murphy – Leadership IQ[06] “Hiring mistakes are costing UK businesses billions each year” – The Recruitment & Employment

Confederation (REC)[07] “Develop an Effective Leadership Strategy” – SHL[08] “Did you know” – Randstad[09] “Uncover Your Future Leaders” – SHL[10] “Transfer of training: the role of feedback in supportive social networks”, Piet Van den Bossche, Mien

Segers and Niekie Jansen – International Journal of Training and Development[11] “A novel integrating virtual reality approach for the assessment of the attachment behavioral system”,

Chicchi Giglioli, I. A., Pravettoni, G., Sutil Martín, D. L., Parra, E., & Alcañiz, M. – Frontiers in psychology

[12] “Virtual Reality as a new approach for risk taking assessment”, De Juan Ripoll, C., Soler Domínguez, J. L., Guixeres Provinciale, J., Contero González, M., Álvarez Gutiérrez, N., Alcañiz, M. M. – Frontiers in psychology

[13] “Organizational Neuroscience: Taking Organizational Theory Inside the Neural Black Box”, Becker, William J., Cropanzano, Russell, Sanfey, Allan G. – Journal of Management

[14] “The illusion of will in organizational behavior research: Nonconscious processes and job design”, George Jennifer M. – Journal of Management

[15] “Implicit affect in organizations”, Sigal G. Barsade, Lakshmi Ramarajan, Drew Westen – Research in Organizational Behavior

[16] “Place illusion and plausibility can lead to realistic behavior in immersive virtual environments”, Mel Slater – Phil. Trans. R. Soc. B

[17] “Grounded Cognition”, Barsalou Lawrence W. – Annual Review of Psychology[18] “Grounded Cognition: Past, Present, and Future”, Barsalou Lawrence W. – Topics in Cognitive Science

[19] “Higher mind-brain development in successful leaders: Testing a unified theory of performance”, Harald S. Harung, Frederick Travis – Cognitive Processing

[20] “Neuroscience reveals the whole-brain state and its applications for international business and sustainable success”, Jeffrey L. Fannin, Robert Max Williams – The International Journal of Management and Business

[21] “Antagonistic neural networks underlying differentiated leadership roles”, Boyatzis, Richard E., Rochford, Kylie, Jack, Anthony I. – Frontiers in Human Neuroscience

[22] “Differentiating transformational and non-transformational leaders on the basis of neurological imaging”, Pierre A. Balthazard, David A. Waldman, Robert W. Thatcher, Sean T. Hannah – The Leadership Quarterly

[23] “Learning in balance: Using oscillatory EEG biomarkers of attention, motivation and vigilance to interpret game-based learning”, Benjamin Cowley, Niklas Ravaja – Journal Cogent Education

[24] “Virtual reality in marketing: a framework, review and research agenda”, Alcañiz, M., Guixeres, J., Bigne, E. – Frontiers in psychology

[25] ¿Puede mejorar la realidad virtual la formación laboral?, by Emma Jacobs – Financial Times (Expansión)

[26] “Corporate Assessment Services Market Outlook 2019- Global Industry Growth, Opportunities, Analysis of Top Key Players and Forecast to 2025” – Reports n Reports

[27] “Global Corporate Leadership Training Market 2018-2022” – TechNavio[28] “Enterprise Virtual Reality Training Services to Generate US$6.3 billion in 2022” – ABIresearch[29] “Neurosteps Data Base” – D&B Global Reference Solution; SABi and Top 5000 Companies Actualidad

Económica[30] “Global Recruiting Trends for 2017; What you need to know about the state of talent acquisition” –

LinkedIn Talent Solutions[31] “Leadership Development Is A $366 Billion Industry: Here's Why Most Programs Don't Work”, Chris

Westfall – Forbes[32] “Global Assessment Trends Report 2018” – SHL[33] “Gartner Top 10 Strategic Technologies Trends for 2019” – Gartner[34] “Neurosteps Data Base: HR, Assessment & Training Industry Lists & Studies” – Training industry, HR

Tech outlook, Training magazine, G2, Training registry, SHRM-Vendor directory, Clutch, Who knows about

References – Business Plan10

Bibl

iogr

aphy

21

[01] “A novel integrating virtual reality approach for the assessment of the attachment behavioral system”, Chicchi Giglioli, I. A., Pravettoni, G., Sutil Martín, D. L., Parra, E., & Alcañiz, M. – Frontiers in psychology

[02] “Virtual Reality as a new approach for risk taking assessment”, De Juan Ripoll, C., Soler Domínguez, J. L., Guixeres Provinciale, J., Contero González, M., Álvarez Gutiérrez, N., Alcañiz, M. M. – Frontiers in psychology

[03] “Misbehaving: The Making of Behavioral Economics”, Richard H. Thaler[04] “Thinking Fast and Slow”, Daniel Kahneman[05] “Descartes' Error”, Antonio Damasio[06] “Hard Facts About Soft Skills; An actionable review of employer perspectives, expectations and

recommendations” – Wonderlic[07] “The Hard Truth about Soft Skills” – American Marketing Association[08] “Skill Shift, Automation and Future of the Workplace” – McKinsey & Company [09] “Watch the skills gap” – Adecco USA[10] “The Soft Skills Stats You Need to Know” – Coursera Blog[11] “Data Reveals The Most In-Demand Soft Skills Among Candidates” – LinkedIn Talent Blog[12] “Global Recruiting Trends for 2017; What you need to know about the state of talent acquisition” –

LinkedIn Talent Solutions[13] “Conoscenze, abilità e attitudini: cosa cercano le aziende?” – The Adecco Group[14] “Closing the Technology Leadership Gap” – West Monroe Partners[15] “The Skills to Pay the Bills: Returns to On-the-job Soft Skills Training”, Achyuta Adhvaryu, Namrata

Kala, Anant Nyshadham – NBER[16] “Consistency Theory” – Klaus Grawe[17] “Basic Psychological Needs” – The Science of Psychotherapy[18] “Neuropsychotherapy: How the Neurosciences Inform Effective Psychotherapy” – Klaus Grawe[19] “Neuroleadership: A Journey Through the Brain for Business Leaders”, Argang Ghadiri, Andreas

Habermacher, Theo Peters[20] “Transformational and transactional leadership: a meta-analytic test of their relative validity”, Judge

Timothy A., Piccolo Ronald F. Piccolo – Journal of Applied Psychology

[21] “Effectiveness correlates of transformational and transactional leadership: A meta-analytic review of the MLQ literature”, Lowe, Kevin. B., Kroeck, K. Galen, & Sivasubramaniam, Nagaraj – The Leadership Quarterly

[22] “A Meta-analysis of Transformational and Transactional Leadership Correlates of Effectiveness and Satisfaction: An Update and Extension”, Dumdum, Uldarico. R., Lowe, Kevin. B., & Avolio, Bruce. J. –Transformational and charismatic leadership: The road ahead. Elsevier Science

[23] “Transformational leadership: A response to critiques”, Bass, Bernard. M., Avolio, Bruce – Academic Press

[24] “The Bass Handbook of Leadership: Theory, Research, and Managerial Applications”, Bernard M. Bass, Ruth Bass

[25] “Transformational leadership and emotional intelligence: a potential pathway for an increased understanding of interpersonal influence”, F. William Brown, Dan Moshavi – Journal of Organizational Behavior

[26] “Transformational leadership as a mediator between emotional intelligence and team outcomes”, YoungHee Hur, Peter T. van den Berg, Celeste P. M. Wilderom – The Leadership Quarterly

[27] “Transformational leadership as management of emotion: A conceptual review”, Ashkanasy, Neal M. Tse, Barry – American Psychological Association

[28] “Computing emotion awareness through galvanic skin response and facial electromyography”, Joyce H.D.M. Westerink, Egon L. van den Broek, Marleen H. Schut, Jan van Herk, Kees Tuinenbreijer –Springer Science and Business Media

[29] “Making a Life Worth Living. Neural Correlates of Well-Being”, Heather L. Urry, Jack B. Nitschke, Isa Dolski, Daren C. Jackson, Kim M. Dalton, Corrina J. Mueller, Melissa A. Rosenkranz, Carol D. Ryff, Burton H. Singer, Richard J. Davidson – Psychological Science

[30] “The Neural Basis of Optimism and Pessimism”, David Hecht – Experimental Biology[31] “Eye movement assessment of selective attentional capture by emotional pictures”, Lauri

Nummenmaa, Jukka Hyönä, Manuel G. Calvo – Emotion[32] “Effects of Age on Detection of Emotional Information”, Christina M. Leclerc, Elizabeth A. Kensinger –

American Psychological Association[33] “First fixations in face processing: The more diagnostic they are the smaller the face-inversion effect”,

Peter J. Hills, Rachel E. Cooper, J. Michael Pake – Acta Psychologica

References - Annexes10

Bibl

iogr

aphy

22

[34] “Aging and Goal-Directed Emotional Attention: Distraction Reverses Emotional Biases”, Marisa Knight, Travis L. Seymour, Joshua T. Gaunt, Christopher Baker, Kathryn Nesmith, Mara Mather – American Psychological Association

[35] “The Emotional Recognition and Empathy” – UK Essays[36] “The Difference of Empathy Demonstrated” – UK Essays[37] “Skin Conductance Response to the Pain of Others Predicts Later Costly Helping”, Grit Hein, Claus

Lamm, Christian Brodbeck, Tania Singer – PLoS One[38] “Event-related theta and alpha oscillations mediate empathy for pain”, Yan Mu, Yan Fan, Lihua Mao,

Shihui Han – Brain[39] "’Feeling’ the pain of those who are different from us: Modulation of EEG in the mu/alpha range”, Anat

Perry, Shlomo Bentin, Inbal Ben-Ami Bartal, Claus Lamm, Jean Decety – Cognitive Affective & Behavioral Neuroscience

[40] “Understanding emotional and cognitive empathy: A neuropsychological perspective”, Perry, A., Shamay-Tsoory, S. – Oxford University Press

[41] “Sensory-motor alpha activity is modulated in response to the observation of pain in others”, Stephen Whitmarsh, Ingrid L. C. Nieuwenhuis, Henk P. Barendregt, Ole Jensen – Frontiers in Neuroscience

[42] “Is emotional contagion special? An fMRI study on neural systems for affective and cognitive empathy”, Lauri Nummenmaa, Jussi Hirvonen, Riitta Parkkola, Jari K. Hietanen – NeuroImage

[43] “Combining and comparing EEG, peripheral physiology and eye-related measures for the assessment of mental workload”, Maarten A. Hogervorst, Anne-Marie Brouwer, Jan B. F. van Erp – Frontiers in Neuroscience

[44] “Effects of mental workload and fatigue on the P300, alpha and theta band power during operation of an ERP (P300) brain-computer interface”, Ivo Käthner, Selina C. Wriessnegger, Gernot R. Müller-Putz, Andrea Kübler, Sebastian Halder – Biological Psychology

[45] “Learning in balance: Using oscillatory EEG biomarkers of attention, motivation and vigilance to interpret game-based learning”, Benjamin Cowley, Niklas Ravaja – Cogent Education

[46] “Do specific attention deficits need specific training?” Sturm, W., Willmes, K., Orgass, B., Hartje, W. –Neuropsychological

[47] “Predicting preference from fixations”, Mackenzie G. Glaholt, Mei-Chun Wu, Eyal M. Reingold –Psychology Journal

[48] “Selective preference in visual fixation away from negative images in old age? An eye-tracking study”, Isaacowitz, Derek M., Wadlinger, Heather A., Goren, Deborah, Wilson, Hugh R. – American Psychological Association

[49] “The Time Course of Age-Related Preferences Toward Positive and Negative Stimuli”, Derek M. Isaacowitz, Eric S. Allard, Nora A. Murphy, Mark Schlangel – Oxford Journals

[50] “Creativity, consciousness, and cortical arousal”, Martindale, Colin – American Psychological Association

[51] “Heart rate during creative activity”, Florek, Hieronym – Studia Psychologica[52] “EEG differences as a function of creativity, stage of the creative process, and effort to be original”,

Colin Martindale, Nancy Hasenfus – Biological Psychology[53] “EEG alpha asymmetry and creativity”, Colin Martindale, Dwight Hines, Linda Mitchell, Edward Covello

– Personality and Individual Differences[54] “Capturing 'in the moment' creativity through data triangulation”, Erin Cherry, Celine Latulipe –

Conference Paper: Proceedings of the 8th Conference on Creativity & Cognition[55] “Creativity and the Galvanic Skin Response”, Tad, Uno – Journal of Creative Behavior[56] “Neurosteps Data Base” – BMI Research Store Fitch Solutions, Ministries of Economy of respective

countries and, Internal information & data

References - Annexes10

Bibl

iogr

aphy

23

Pioneers & Disruptive

Neuroscience &Technology

Assessment &Training

business plan 2020-2024 - neurosteps · 2019. 10. 8. · business plan 2020-2024. october 2019....

Documents