San Rafael-Based Medical Startup Sweeps Business Plan Competition

San Rafael-based medical technology startup K-Diagnostics faced off against three other fledgling businesses to win the Seed Round Business Plan Competition June 1, held at Sonoma State University. The ,which is a joint effort of the and the School of Business and Economics, was created to stimulate entrepreneurship in Sonoma, Marin and Napa counties.

K-Diagnostics has developed Sleep ID, a touchless sleep apnea diagnostic device that returns data to doctors in real time. Sleep apnea is a medical condition in which patients have low blood oxygen levels and high adrenaline levels while sleeping, which can be a contributing factor to diabetes, stroke and heart disease. Current technology on the market to diagnose and monitor the condition are either invasive, requiring patients to spend a night at a sleep center for study, or inaccurate, said entrepreneurs.

"K-Diagnostics presented a unique and proprietary solution to a legitimate problem," said Peter Garner of Wavepoint Ventures, one of the three judges during the final round. "They have a credible management team and a thoughtful business strategy that leads to the prospect of building a sustainable and long term company." 

Lindsay Austin, the chairman of the , which serves as the North Bay iHub coordinator, said all of the business plans presented were strong, but what set K-diagnostics apart was their market research.

“The guy with the most customer data won,” Austin said.

The competition, which started in January, took 36 companies through the process of writing a fundable business plan and presenting that plan to venture capitalists. Of the 36 companies, four were selected to present their plans to a panel of three judges.

"We all worked very hard on our business plan and we will not disappoint you. The process was extremely helpful in honing in on the key points needed to make our plan viable," said Ayako Yamazaki, the chief operating officer of K-Diagnostics.

K-Diagnostics will receive a prize package totaling over $40,000 that includes cash as well as legal, accounting and marketing services from North Bay business leaders. In addition, the Sonoma Mountain Business Cluster will provide 12 months of free office space to the company in Rohnert Park. 

In addition to K-diagnostics the four finalists included GOassis, a developer of folding solar powered mobile shelters and field hospitals; Barrier Free Adventures, creators of a mobile app and social networks to make world travel easier for people with disabilities and E3, an energy companies looking to produce biomethane from municipal waste and integrate with existing natural gas infrastructure

The competition was more than just a chance for the companies to earn some capital and mentoring — it was also a step in changing the business image of the North Bay. According to Ivo Austin, Business Development Manager for the Sonoma Mountain Business Cluster, Silicon Valley has created a culture and identity that attracts both investors and start ups, and that talent is mirrored here in the North Bay.

“If you are thinking about where to go as an investor or a developer, you think of Silicon Valley," Austin said. "The North Bay has a long history of innovation but, we need to develop that image."

Bill Silver, dean of the School of Business and Economics at Sonoma State University, explained that events such as the Seed Round, where colleges partner with area startups and businesses, are a boon for the local economy.

“We have a campus of 8,000 students with creative ideas,” Silver said.

Students were encouraged to enter the competition, however none made it to the final four. The process of entering and working through the development of a business plan has strengthened all the competitors, Silver said.

“Yes, we have a winner, but we also have 35 other startups that are closer to launching their business," Austin said. "This is the work that the North Bay iHub is committed to doing with collaborating partners such as Sonoma State's School of Business and Economics."