The Machine as a Service | William "Bill" Santana Li

All right, so that's all really cool and everything, but investors, team members, at the end of the day it's not a not-for-profit, so we need to make money. So how do you print money doing this? All right, so one, you need to find the intersection of creating a massive amount of value for a customer, and you need to be able to do the same for your investors. So an off-duty law enforcement officer that's armed If you want him or her to stand outside, it's about $90 an hour in the US. If you want a mall cop or a private security guard to stand outside, plus or minus about $25 an hour. So these machines go out on a machine-as-a-service business model at $6.25 an hour. So if you have a client that's spending $100 million a year on security guards and you walk in and go, hey, you know, I think I can help you improve security and I can reduce your cost by 50% to 75%. Would you be interested in chatting? That probably would get a good level of interest. That's interesting. Anyone can do a low-price solution for a customer. But at $6.25, as you heard, I'm an ex-Ford Motor Company executive, so I'm pretty comfortable with large-scale hardware outdoors. So at $6.25 an hour, how does that pencil out on a monthly or annual basis? So that's basically running 24/7 times 30 days, it's $4,500 of revenue per machine per month. Okay? So $4,500 times 60 months, so you want these machines to last 5 years in service, 200,000 miles, that's $270,000 of revenue. per machine over a period of 5 years. And I can assure you the cost of the machine are significantly less than that. So that gives a pretty generous gross profit for the investors. And so where are you gonna see these? Outdoors, anywhere you might see a private security guard. Malls, data centers, schools, corporate campuses, airports, et cetera. One of our clients is a major mall here. If you want to go see these live, they're at the Stanford Shopping Center. And we've gotten all sorts of interesting offline and online reception to the machines. There's people kissing the machine, girls hugging the machine, kids crowding around the machine. Let's play surround the robot. There's the— you imagine almost every use case. Has gone, but it's gone really well. So this particular client has 350 malls around the world. They're the largest mall developer on the planet, and 300 of them in the US. So we're just finishing up the nice finishing touches on these machines for Stanford, and you might see them pop up elsewhere. So that's the Chief Security Officer for Simon. Hi. We've also signed a deal with Securitas. So Securitas is the world's second largest private security company in the world. They have 300,000 people. They do $10 billion in sales, a billion of it just in California. So for those of you that might be working on B2B enterprise stuff, so business to business kind of sales, can be very, very time consuming. Find the internal customer that would want your widget. Then you've got to convince the management team that they should spend money on it. Then the finance team, then the purchasing team, then the legal team. By the time you're trying to get through the whole— I mean, it's 3, 6, 9, 12. I've seen 3-year deals. It takes a long time to get something through a major corporation. So what's really interesting for Securitas and for us Is they have a lot of major corporations already, a lot of big names that you guys already know. So what we did is sign a master sales agreement with them. So they're kind of a channel partner wherein, let's say they provide XYZ Corporation private security guards. So instead of us going through the purchasing finance legal team, it's literally sign a one-pager addendum To that master contract so that Securitas is kind of reselling what we're doing for that client. And the look on the customer's face is awesome. It's like, okay, well, how do we get these? Like, what do we need to do? I said, well, just tell the Securitas account manager that you'd like these, sign the one-pager, and we'll have them there in the next 60 days. And the look on their face is absolutely precious because they know how difficult it is on their side also. They get frustrated. trying to get stuff through the system. So as you go to market with your companies, really think through the selling process because it can mess you up. And if you raised money for 12 or 18 months and the deals are taking 1 to 2 years, you're gonna run out of cash before you land a deal. So just be very careful with that. Another client is Qualcomm's corporate campus. This image is off of the mobile phone Machine 10 in San Diego. So this is funny. The Qualcomm guys, the employees had a naming contest for the machines. So one of them got named RQ-D2 and the other one QGuard. And they actually got employee badges, which is kind of hilarious. OK, so to date we've raised $14 million. The company's 3rd anniversary was this past Monday. All strategic investors. Thank you. All strategic investors and all angels, no VCs. And we can talk about why I did that. And just to put the— why we celebrated our 3rd anniversary on Monday was 80% of startups don't make it to their 3rd year. So, less than 1% actually of the tens of thousands of companies that try to raise money actually get funding, and then those that actually get the funding, you know, 3 years into it, no longer exist. So we're recruiting additional engineers. We'll put about 100 machines in California this year, and then yesterday we announced a second product. So we have 105 customers on a huge waitlist. Half of them have either more difficult terrain and would like something larger, which we've got something up our sleeve for next year. And then a lot of them would like an indoor version. So this guy's kind of big. It's 5-foot tall again, 3-foot wide. Trying to go up and down Home Depot aisle indoors, not easy to get around. So the K3 will be available for deliveries at the end of the year. And that one's 4-foot tall and 2-foot wide. So a lot easier to kind of maneuver around large indoor complex dynamic environments. Kind of, you heard about me already. So, the team, a couple of my executives are one, ex-Securitas, so Jack Shenk ran a quarter billion dollar book of business for Securitas, spent 17 years there, so you can imagine how that deal came together. Second, Stacy Stevens, my co-founder, is a former law enforcement officer in Dallas. My head of software engineering, she's ex-Dell. Deloitte, and my chief, my VP of design is ex-Ford Motor Company. So one of the most flattering things, I get like 50 resumes a day now. We've had 6,000 people apply to come work for us, which is kind of crazy. But I think one of the enticing things for engineers is what we're doing is interesting, but the technical challenges, you know, there's almost every technology you could possibly imagine is somewhere in here. And that always gets the recruits excited. And that is our story. Happy to answer questions.