Xpanceo is betting big on turning us all into cyborgs with smart contact lenses, securing $40 million to make our sci-fi dreams come true. Co-founders Roman Axelrod and Valentyn S. Volkov are on a mission to ditch traditional gadgets and make everyone’s eyes the new screens. Who needs a smartphone when you can flash to browse? As they push the limits of what’s possible with optoelectronics and new materials, one can’t help but wonder if we’re headed for a future where losing your contacts could mean missing your next Zoom meeting.
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It slides into this deck
Xpanceo shared its full 19-slide presentation with TechCrunch. While the slide list suggests the team has covered everything, a closer look at the deck’s contents reveals that some areas may not be as comprehensive as they seem.
- Cover transparency
- Challenge
- Solution
- Product
- Value proposition
- B2C: Use cases
- B2B: Industries
- Traction
- Contact lens wearers
- The size of the market
- Revenue forecast
- Competition
- What is Xpanceo? median
- overview
- technologies
- Pioneering R&D in optical analysis
- Club
- Road map
- Close slide
Three things to love about Xpanceo’s pitch deck
There’s a lot of really good storytelling going on here.
A piece of history
[Slide 2] A clear problem statement. Image credits: Xpanceo
The presentation essentially begins with a clear statement of the problem, setting the stage for a focused discussion of the challenges and opportunities in the realm of augmented reality (AR) and wearable technology. This explanation is critical, as it immediately frames the issues Xpanceo is facing with its innovative smart contact lens project. By articulating the problems upfront, the deck ensures that the public understands the context and importance of the technology being developed, which is essential to rallying support and enthusiasm for the project. I like.
Including a timeline detailing the evolution of computer technology in the presentation is especially clever. This historical perspective not only educates the public about advances and milestones in IT, but also places Xpanceo’s work in a larger narrative of technological progress — and many of these developments have made many investors very rich indeed.
What’s the problem with AR?
Addressing AR’s shortcomings as is, the presentation acknowledges that the technology has yet to achieve widespread adoption, largely due to poor product offerings that have failed to resonate with consumers. This is true and shows that Xpanceo is aware of the obstacles faced by previous AR technologies and is committed to overcoming these challenges.
[Slide 3] Relaxing into the “solution” is a great approach. Image credits: Xpanceo
There is a big difference between a “solution” and a “product” slide. Xpanceo’s take here is refreshingly clear about the differences.
Solution transparency is strategic in nature, emphasizing a broader, more adaptable approach rather than focusing exclusively on the product. This strategic mindset is crucial because it shifts the emphasis from the specifics of the product to the underlying philosophy of problem solving.
I like that the solution is laid out in a clear and accessible way, deliberately avoiding too much detail. This clarity is essential for effective communication with stakeholders, including investors, potential customers, and team members. By keeping the solution simple and understandable, the team ensures that everyone involved has a full understanding of the core idea and goals. This level of transparency fosters trust and alignment between all parties, which is important to collaborative efforts and the overall success of the project.
From there, you can drop in the details: the product.
So here’s who the company is actually until
Again, Xpanceo does a great job:
[Slide 4] This transparency attracts investors. Image credits: Xpanceo
Product transparency does a great job of presenting the product in a clear and engaging way, avoiding the common pitfall of descending into overly technical language that can alienate or confuse the audience. This approach is particularly powerful given the complex nature of the technology involved.
Smart contact lenses that integrate advanced computing directly into the wearer’s field of vision feel like magic. However, by maintaining a simple and accessible language, transparency ensures that the innovation can be understood and appreciated by a wide audience, which is crucial for generating interest and support among potential investors.
I especially like how this clarity helps lay the groundwork for deeper discussions without getting lost in the complex technical language that no doubt happens in the lab. It strikes the right balance between simplicity and information.
Three things Xpanceo could have improved
This deck is really good. But is it perfect?
No. Let’s dive in.
What are you lifting?
What? Image credits: Getty Images
The biggest problem with Xpanceo’s deck isn’t what’s there, but rather what’s not.
One critical element missing from the deck is “ask” transparency, which is essential when seeking venture capital funding. It’s surprising how often founders overlook this element in their pitch decks. When you’re raising money, it’s not the time to be cautious or indirect. Clearly stating what you’re asking for—whether it’s staff, resources, or partnerships—shows potential investors a well-thought-out plan and a serious commitment to the startup’s future. This helps investors quickly understand needs and assess whether they align with their investment criteria.
Including a specific question in the presentation also shows that there is a realistic understanding of what the startup requires to succeed. It shows that careful consideration has been given to how much funding is needed, what it will be used for and how it will help the company achieve its goals. This level of detail and transparency adds credibility to the playing field and instills confidence in potential investors about management and planning capabilities. It positions entrepreneurs as serious individuals who are not just experimenting but are committed to building a sustainable business.
B2B or B2C: You can’t have both
Slides 6 and 7 are a case for a B2B and B2C model. Not a great call.
[Slide 6] Brainstorming use cases is smart, but it’s important to find the real use cases that drive the investment decision. Image credits: Xpanceo
B2B and B2C business models are fundamentally different beasts. Very few companies are able to do well with one strategy, never mind both.
B2C sales are distinguished by direct interactions with individual consumers, focusing on emotional engagement, brand identity and creating personalized customer experiences. This model thrives on short sales cycles and immediate purchase decisions, making it vital for companies to invest in understanding consumer behaviors and creating marketing strategies that resonate on a personal level. Even if companies occasionally buy under a B2C model, they should be treated as consumers in the sales process to maintain simplicity and efficiency in their marketing efforts.
In contrast, B2B sales involve more complex transactions with other businesses, characterized by longer sales cycles, higher transaction values, and a focus on practical benefits and cost-effectiveness. This model requires strong, trusted relationships and often includes customized solutions to meet specific business needs. Although less common, consumers may sometimes engage with products designed for professional use, underscoring the flexibility required in sales strategies. Ultimately, the focus of a B2B or B2C sales organization should align with the startup’s core capabilities and strategic goals, shaping their startup narrative to attract potential investors.
Trying to do both won’t work, so pick one and explain why it’s the right choice.
The market size fallacy
[Slide 9] Sure, there are many contact lens wearers. But are they really proxies for Xpanceo customers? Image credits: Xpanceo
When assessing the potential market size for Xpanceo contact lenses, it is important to differentiate the nature of the product from traditional contact lenses. Or, to put it another way: Is the market for Xpanceo’s products people who already wear contacts? The company seems to believe that everyone who wears contacts wants smart contacts. But that’s probably not accurate.
Xpanceo’s offerings are not just an alternative to glasses for vision correction, but rather function as a wearable device. This distinction is important because the target market for Xpanceo may not directly align with the existing base of contact lens users. Rather than assessing the total number of contact lens wearers, a more relevant metric may be the use of related technology, such as smartphones or smartwatches, which reflects a tech-savvy consumer base that is more likely to adopt new wearable technologies. This approach can help identify not only a broad audience, but also an audience that is more likely to embrace innovative products.
Xpanceo’s go-to-market strategy plays a key role in defining its primary consumer segment. If the product is designed for mass market consumption, the strategy should focus on identifying and engaging an early adopter group. This group usually consists of tech enthusiasts who are keen to explore and adopt cutting edge technologies. These early adopters could provide the initial traction needed to penetrate the market, acting as influencers and validators for the broader consumer base. Their feedback is also invaluable when it comes to improving the product and enhancing its appeal to future buyers.
I think the company is trying to show that their market is huge, but I doubt contact lens wearers are a proxy. I wear contacts, but only when I do contact sports (martial arts or diving). But even if I had never worn contacts a day in my life, I would still want to try the Xpanceo solution.
I think the company is trying to compare oranges to Apple computers.
The full field
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