Timothy Kelley

Barrington, IL (USA)
Role(s):
Select

The Baby CD

Find More Startups Startup
Location: Barrington
Industry: Advertising
Year Founded: 2006
Number Employees: 1-10 people
Description: The early roots of The Baby CD® are grounded in my years of experience in digital radiology, where I was involved in recording the digital images from equipment such as CT and MRI scanners, digital x-ray and ultrasound onto CDs for patients and physicians. This industry developed quickly as the efficiencies and ease of communication of digital images for diagnostic and other purposes became apparent. As time went on and the business expanded, more and more hospitals were requesting additional information be placed on the CDs for patient resources. In 2005 while reviewing the online business models of Google and Yahoo - tracking the clicks of users looking for information I envisioned the power of putting the two concepts together. Seeing the value in providing patients with valuable medical information endorsed by their own doctors, with revenue being derived by relevant and highly professional advertising or sponsors on the CD, a utility patent was applied for and two years of development work commenced on this new venture. Looking at all the information new moms needed and the lack of an interactive resources provided by doctors and hospitals, it seemed natural to begin with a CD for new moms. I joined up with a couple of friends and colleagues to launch The Baby CD®. We collected information and images to design the best educational resource for moms ever created. Our vision is to become the defacto standard in educating new moms at the point of care. Our families have been great believers in this undertaking, providing both moral and financial support. We know have practices and hospitals ordering The Baby CD instead of the ‘What to Expect’ books. The compelling aspect of The Baby CD® business model is that this extraordinary resource is provided to moms and practices with nearly all the cost being borne by key sponsorships and advertisements from the most recognized brands in the baby industry. Most companies are unable to reach moms early in the term due to HIPAA (privacy law) which protects patient information. The Baby CD® provides a solution allowing companies to reach moms much earlier than previously possible through this business model and with informed consent from the mom. In early 2007, after working with OB doctors and nurses -- and receiving feedback from their first beta site (Women’s Center for Health in Naperville, IL) -- our small company was ready for their first industry show for OB practice managers and, two weeks later, the International show for Obstetrics and Gynecologists. The high volume of foot traffic at those first two shows resulted in our company signing distribution agreements for 250,000 new moms, which confirmed the view that there was an unfilled gap in the market. Since those early shows, the Baby CD has signed distribution agreements for over 1,000,000 moms, representing close to 25% of all U.S. births annually. Consequently, in 2009 over 300,000 U.S. moms-to-be will receive a Baby CD® from their doctor. The Baby CD® represents one of those few elegant businesses models where all stakeholders - moms, doctors, hospitals and sponsors - win. In June of this year, we released our second generation CD with more content and technical upgrades including Pain Management, Buying the Family Car, and an Interactive Birthing Calendar. At this point, we have commitments and contracts with Similac, Sanofi Pasteur, P&G, and many other companies totaling a value over $3 per CD. Each additional advertiser adds incremental value over our fixed cost of production. Our GP is well over 80%. We need funding to increase headcount, implement strategies with our co-marketing agreements to put feet on the street, pay some AP, and increase production and processing of our CDs to the practices that have already signed up to distribute The Baby CD; which represent over 25% of all new births in the US. The future will include Pediatrics and other Life stages as we expand and replicate this model. Thank you for your consideration. I would be pleased to send a busienss plan or have an online presentation of the business model.