Tom Murphy
RedwoodAge.com
Siamak Sani could barely mask his contempt for greedy hearing aid companies as he described his company's bold plan to create a much cheaper alternative.
Speaking at Tuesday's Boomer Venture Summit in Santa Clara, Calif., Sani told a panel of judges that his company, World Hearing Organization Inc., wouldn't force its customers to meet with audiologists in their offices, but would bring a mobile testing facility to the customers "like Domino's pizza" no matter where they are.
People could have their hearing tested at, say, a drug store counter and could walk away with a customized hearing aid in a few minutes, paying well under half what they would pay for a comparable device in a global marketplace estimated at up to $200 billion. Moreover, WHO had plans to market its services worldwide - to the wealthy and the poor, in advanced countries and the forgotten places.
The CEO has other plans, too. In an interview with RedwoodAge.com at the show, Sani showed off a solar-powered device that can recharge nickel metal hydride hearing aid batteries, so that the wearer could continue to use the hearing aid "even in the middle of the Amazon." In other words, someone who didn't have the money for replacement batteries, and couldn't get to a store anyway, would continue to hear virtually forever.
The charger would cost only about $50. The hearing aid itself would cost only a couple of hundred dollars. So someone needing one for each ear could have the complete set for under $500, a cost that might be underwritten by governments or charitable organizations. "This is what they charge $3,000 for," he grumbled, referring to his competitors.
The judges liked what they heard. Sani beat out four erstwhile competitors to win $10,000 in the competition for the best new general product for the 78 million boomers who are heading into retirement.
Quick Blood Tests
A second $10,000 grand prize went to SeroNostics, a company that is developing
a hand-held diagnostic device that allows physicians to diagnose diseases such
as influenza during an office visit.
The SeroNostics team pointed out that blood tests currently have to go to a lab, which sometimes loses the results, and the patient has to wait until the results come back to find out if a disease is present. That costs more money, more time and, most importantly, makes the patient wait for treatment.
SeroNostics is currently developing a series of cartridges that will allow the battery-powered test reader to immediately determine if the patient suffers from STDs, infections or other maladies.
Both companies faced fierce competition in their categories. Originally, about 80 companies submitted business plans to the competition. In the end, just five from each category won the right to present their ideas before the judges. The finalists included several companies that had won top honors at other VC competitions.
Throughout the day, the judges, journalists and other speakers repeated themes about what they thought it takes to succeed with boomers, who spend about $2 trillion a year on everything from frivolous entertainment to life-saving surgeries.
A clear consensus emerged that any merchant who wants to succeed with baby boomers, ages 43-61, first must earn the trust of the customer. They also must respect this unique generation's desire to serve their fellow citizens of the world.
The venture summit is produced annually by Mary Furlong and the School of Business at the University of Santa Clara, where Furlong teaches. The good professor is also the author of "Turning Silver Into Gold," a book that describes trends in the boomer age group, and the principal of the consulting group, Mary Furlong & Associates.
The other finalists competing in the general product category included:
· eLegacy is designing software to help settle estates;
· Celery helps people send and receive handwritten letters photos without a computer;
· AmeliaPlex makes software that sends medication reminders to wireless devices;
· Prime Footwear makes therapeutic footwear for folks with joint problems;
The other health companies in competition were:
· CellThera, which is developing cell-based transplants for severely disabled stroke patients;
· Curant, which is developing device-based therapies for people with urinary incontinence;
· cVision Medical Solutions, which developing a non-invasive ultrasound procedure that measures central venous pressure;
· Optimal Vision, a company developing a non-invasive laser procedure that reshapes the cornea and corrects near-vision loss;
For more on the Summit, see: A VC Love Fest Focused on Boomers
