Entrepreneurship

Introduction

Figure1. Just 15 crop plants provide 90 percent of the world’s food energy intake[1] The population has more than tripled in the last seventy years and will continue to grow.[2] .
Figure1. Just 15 crop plants provide 90 percent of the world's food energy intake[1]The population has more than tripled in the last seventy years and will continue to grow.[2].
Figure1. Just 15 crop plants provide 90 percent of the world's food energy intake[1]The population has more than tripled in the last seventy years and will continue to grow.[2].

Agriculture is the foundation that sustains human life, playing a vital role in the global food supply. However, modern agriculture faces significant challenges, including the spread of pests and diseases and increasing environmental burdens. In particular, the excessive use of conventional chemical pesticides has led to the rise of resistant bacteria[3] and pests[4] , ecosystem destruction[5] , and adverse effects on the environment and human health[6] . Under these circumstances, farmers struggle to balance stable harvests with sustainable farming practices.

MOVE (Modules for Optimized Viability and Efficacy of RNA pesticides) is the next-generation RNA pesticide platform we have developed. MOVE addresses the challenges of traditional RNA pesticides, such as their short duration of effectiveness[7] , by extending the duration of their efficacy. This reduces the number of applications and the labor burden on farmers, while also lowering fuel consumption and minimizing soil damage. Additionally, RNA pesticides are highly specific and have minimal impact on the environment and human health[8] , contributing to the realization of sustainable agriculture.

Our mission is to solve the challenges faced by farmers through MOVE, simultaneously reducing environmental impact and improving agricultural productivity. By providing a user-friendly, effective, and economical solution for farmers, we aim to contribute to the achievement of sustainable agriculture and enhance the well-being of society as a whole.

Promoting Entrepreneurship

The development of MOVE was significantly shaped by our participation in the Lean Launchpad (LLP) program at Tokyo Institute of Technology. Over three months, our team, iGEM TokyoTech, immersed ourselves in practical entrepreneurial and business training, guided by the methodologies proposed by Steve Blank[9] . The LLP program emphasized iterative customer discovery and hypothesis validation, which were crucial in refining our business model for MOVE.

Through rigorous customer interviews and market analysis conducted during the LLP program, we identified the critical unmet needs in the agricultural sector, such as the demand for environmentally friendly, cost-effective, and long-lasting pesticide solutions. These insights drove us to focus on developing MOVE with features that directly address these needs, ensuring its commercial viability and alignment with market demands.

Our success in the 2024 Lean Launchpad at Tokyo Tech[10] , where we competed against other professional and graduate student teams and secured the top prize, validated our business approach and reinforced our commitment to bringing MOVE to market. This experience provided us with the necessary entrepreneurial skills and strategic direction to transition MOVE from a research concept to a viable business solution. This page explains how MOVE was conceived as a business, based on the work we did on the LLP program.

Figure2. Steve Blank Award
Figure2. Steve Blank Award

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On the LLP program

DateThemeActivityReflection
5/9Selection PitchWe attempted to incorporate a business perspective, focusing on the high potential for commercialization of iGEM and its alignment with our project.We reaffirmed the importance of a business perspective and decided to work on developing a business model.
5/25Exploring Value Propositions and Customer Needs MechanismsWe first explored where the needs for RNA pesticides might be. As a result, we hypothesized that strong demand exists mainly among pesticide manufacturers and farmers. We assumed that current measures to address these needs still leave challenges such as a lack of technology for RNA pesticide development and difficult-to-control pests and diseases.This is still in the hypothesis stage, and we will begin verifying it after tomorrow. While we had a lot of discussions to reach this hypothesis, we realized our knowledge of the current state of pesticides is lacking. To supplement this, we will conduct interviews starting the day after tomorrow.
5/26Business Model Canvas, Creating Product Presentation SlidesWe considered two approaches: providing technology to pesticide manufacturers or directly making products and delivering them to farmers. Initially, we focused on technology transfer, and created a business model canvas and product introduction slides accordingly. However, based on feedback from other participants and instructors, we decided to plan to create our own product to anticipate more growth.We solidified the assumptions around our product and its needs to some extent, but these are still in the realm of imagination. We will now proceed to test our hypotheses.
6/7Searching for Early AdoptersWe requested interviews with five companies, but only two responded.The results were not very favorable. As pointed out by instructors and other participants, conducting interviews with companies is challenging, and we realized our assumptions were too optimistic. Next, we will increase the number of emails we send.
6/21Expanding Customer DiscoveryWe reached out to an additional 19 companies for interviews. We received responses from nine companies, allowing us to interview a total of nine companies, including previous responses. (Please refer to Integrated Human Practices for detailed content.)Through interviews with various companies, we confirmed the demand for RNA pesticides. Although RNA pesticide technology is not yet established, there are high expectations for it.
7/6Financial ModelingWe created a simple financial model using Excel to forecast the future profitability of the RNA pesticide business.Although this is just a prediction, if the business seems unsustainable at this point, it’s a non-starter. This was also a good opportunity to objectively assess where profits and losses might arise.
7/19Presentation PreparationIn preparation for the final presentation, we aimed to create slides that clearly addressed customer needs and were as easy to understand as possible. Our team, compared to others, has a stronger technical focus, so we need to be especially careful about clarity and feasibility.We explored how to effectively communicate both our technical superiority and business value.
8/6Final PresentationAll six teams, including ours, presented the findings they had researched. We were able to win the top prize , tied with another team.We believe the reason we were able to win the top prize was that we effectively communicated the reasons why RNA pesticides will be used in the future and the benefits of our technology to the judges and participants.

Challenges of chemical pesticides

Currently, chemical pesticides are the mainstream; however, they have several limitations. Traditional chemical pesticides pose challenges that degrade the production environment for farmers, including the increase of resistant bacteria and pests, as well as potential negative impacts on the environment and human health with prolonged use. These issues severely undermine the durability of agriculture. Additionally, difficult-to-control pests and diseases that cannot be managed by existing control systems are also problematic.

On the other hand, the development environment for modern chemical pesticides has become stringent. Developing pesticides requires over ten years and costs ranging from tens of millions to hundreds of millions of dollars. Furthermore, global regulations on environmental impact and food safety have been strengthened, and as safety-related data increases, development costs are also rising. This situation limits pesticide development to large manufacturers, and developers tend to focus on highly profitable targets to recover the substantial development costs.

Specific Examples of the Limitations of Chemical Pesticides
TopicContent
Resistance in Cabbage Worms The cabbage worm, which damages Brassicaceae crops, has expanded its habitat due to global warming and has increased resistance to pesticides [4] .
Pesticide-Resistant Gray Mold Pathogens The pesticide-resistant strain of the gray mold pathogen, a highly virulent pathogen, was discovered in 1979. Even after registering pesticides effective against resistant strains, resistance developed within a few years, making it a difficult-to-control pest and disease [3] .
Nematode Damage Nematodes that penetrate roots inhibit nutrient absorption and hinder growth. Traditional pesticides cannot effectively eliminate nematodes in the soil, causing significant suffering for many farmers[11] .
Mass Bee Deaths The use of neonicotinoid pesticides has led to a decline in bee populations, which play a crucial role in pollination, resulting in disrupted ecosystem balance[5] .
Enormous Time and Cost in Pesticide Development According to CropLife International, pesticide development averaged 12.3 years and cost $310 million from 2014 to 2019, with costs increasing annually [12] .

Through interviews with pesticide companies, we have identified the following key characteristics sought in new solutions.

Please refer to Human-Practices for more details about the interview.

Currently, the market lacks sufficient solutions that meet these comprehensive needs, highlighting a significant opportunity for innovative technologies.

Our Solution: MOVE

Value Proposition and Features

To address the severe challenges faced by modern agriculture, we have developed an innovative RNA pesticide platform called MOVE (Modules for Optimized Viability and Efficacy of RNA Pesticides) . MOVE significantly extends the effective duration of RNA pesticides, reducing the labor burden and costs associated with frequent pesticide applications. In addition, we have developed a new pesticide that meets the needs of farmers, with the environmental safety of an RNA pesticide and the ability to be used on a wide range of targets.

How MOVE Works

MOVE is an innovative pesticide that encapsulates short hairpin RNA (shRNA) in membrane vesicles using a technique called PIA-MVP (Polymer Intracellular Accumulation-triggered system for Membrane Vesicle Production) [13] developed by Professor Taguchi of Kobe University. This encapsulation improves the stability and durability of the RNA. In addition, by displayting specific proteins on the surface of the vesicle, MOVE improves plant attachment and penetration of pests and pathogens.

This system not only enhances the pesticide’s effectiveness but also helps to ensure more sustainable and environmentally friendly farming practices.

Figure3. Overview of our system (MOVE)
Figure3. Overview of our system (MOVE)

Technical Uniqueness and Innovation

Combination of shRNA and PIA-MVP

PIA-MVP is a method that enables the selective production of MV (m-MV), which includes both the inner and outer membranes, by producing the polymer PHB in E. coli To increase the durability of RNA pesticides, we applied PIA-MVP and focused on new methods such as wrapping shRNAs in MVs.

Functional Enhancements through Surface-Displayed Proteins

By displaying specific proteins on the surface of the membrane vesicles, we can add extra functionality. For instance, by displaying a mussel adhesion protein [19] , we can achieve strong attachment to plant surfaces. Moreover, by displaying chitinase[20] , we can enhance the penetration of the pesticide by breaking down the cell walls of pests and pathogens, allowing the RNA to effectively penetrate pests and pathogens. The system can also be flexible to meet specific needs by displaying other proteins.

About Competitors

Challenges in Pesticide Development and the Potential of RNA Pesticides

In Japan, registering a pesticide takes 10 years and costs approximately 1 billion yen [16] . Due to these high barriers, companies tend to focus their resources only on developing pesticides with promising returns. As a result, development of pesticides targeting pathogens that develop resistance quickly and pests with low incidence has been limited.

However, RNA pesticides have the potential to completely change this situation. With RNA pesticides, new products can be developed simply by modifying the RNA sequence to match the target pests or pathogens. Additionally, when registering pesticides with a changed RNA sequence, usually only small changes to the documents are needed, allowing them to avoid the long and expensive process that traditional pesticides face. This makes it possible to adapt to different needs quickly and cost-effectively.

Competitive Comparison

The initial application of RNA pesticides will target areas that existing chemical pesticides struggle to address. This includes pests like locusts, for which neonicotinoid-based pesticides have become difficult to use due to environmental regulations, and soil-based pests, where chemical pesticides tend to quickly induce resistance, leading to products that are not cost-effective to sell.

Currently, companies like Greenlightbioscience and Agrosphere , primarily startups based in North America, have begun offering RNA pesticides. These companies focus on improving the durability of RNA pesticides through solutions like artificial lipid membranes or RNA modifications. Let’s compare their products with our own.

Gap between Current competitors and Needs

Figure4. Competitors of MOVE

Conventional RNA Pesticides

Challenge : Current RNA pesticides have an effective duration of about four days due to rapid degradation in the environment. As a result, their effects are short-lived, requiring frequent reapplication , which increases labor and operational costs[22] .

RNA Pesticides Using Artificial Lipid Membranes

Challenge : While encapsulating RNA in artificial lipid membranes enhances stability, this approach results in high production costs . Additionally, it often requires specialized equipment, leading to higher prices for farmers, making it less accessible for widespread use[23] .

RNA Pesticides with Chemical Modifications

Challenge : Chemically modifying RNA can improve stability, but it results in the RNA being classified as a new compound , requiring long-term pesticide registration processes. This makes it difficult to quickly respond to evolving agricultural needs[24] .

Yeast-Encased RNA for Extended Durability

Challenge : While yeast encapsulation can extend the durability of RNA, the yeast itself is typically single-use , which limits sustainability compared to our approach. The system becomes less efficient over repeated applications[25] .

Genetically Modified Bacteria Producing RNA Pesticides

Challenge : Some companies propose releasing genetically modified bacteria into the environment to continuously produce RNA pesticides. In contrast, our solution does not release genetically modified organisms (GMOs) outside the lab, ensuring a higher level of safety and regulatory compliance.


Business Model and Strategy

The Business Model Canvas (BMC)[17] is a framework for visually organizing and analyzing a company’s business model. It consists of the following nine elements.

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Explanation of each element of BCM

  1. Customer Segments : The target groups of customers.
  2. Value Proposition : The unique value provided to customers.
  3. Channels : The means to deliver value to customers.
  4. Customer Relationships : The methods for building relationships with customers.
  5. Revenue Streams : The ways to generate revenue.
  6. Key Resources : The resources needed to operate the business.
  7. Key Activities : The activities required to deliver the value proposition.
  8. Key Partnerships : Partners that help establish cooperative relationships.
  9. Cost Structure : The costs involved in operating the business.

Figure5. BMC(Business Model Canvas)

Prioritization

Based on the BMC, our team met to discuss issues that should be prioritized. In this matrix, the horizontal axis is labeled “Urgency”, with “Sooner” at the left end and “Later” at the right end. The vertical axis is labeled “Impact”, with “Low” at the bottom and “High” at the top. In this matrix, items in the upper-right triangle are categorized as “must-haves”, while the central white area contains “nice-to-haves”[18] .

Figure6. Prioritization Map.

Product Development Plan

Based on the Prioritization Map, Short-Term, Mid-Term, and Long-Term were set as milestones.

We have established clear milestones and a timeline for the development and market launch of MOVE. Below is a detailed description.

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Short-Term Milestones

Goal:

  • Develop the first prototype of MOVE
  • Test the RNA durability in MOVE

KPI:

  • Qualitatively complete the formation of MOVE containing surface displaying proteins
  • Ensure that MOVE is stable for at least 2 weeks in a controlled experimental environment

Action Plan:

  • Conduct experiments and tests related to development
  • Consult with wet lab experts and Principal Investigators (PIs)
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Mid-Term Milestones (1–2 Years Until the Next Round)

Goal:

  • Advance MOVE to a market-ready level
  • Conduct mass production testing
  • Confirm application requirements
  • Establish a company

KPI:

  • Ensure MOVE remains stable in outdoor environments for over one month
  • Achieve 80% elimination of target organisms using RNA pesticides with MOVE in laboratory conditions
  • Establish a production method that achieves approximately 80% of the theoretical yield for mass production
  • Raise $10 million required for pesticide registration

Action Plan:

  • Conduct experiments and tests related to development
  • Consult with regulatory authorities and pesticide manufacturers regarding applications
  • Organize intellectual property rights
  • Register the company
  • Engage with venture capital firms, banks, etc., to secure funding
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Long-Term Milestones (10–15 Years)

Goal:

  • Conduct safety tests and register pesticides
  • Expand the range of applications through horizontal expansion

KPI:

  • Meet regulatory standards for over 20 inspection items
  • Expand to over 30 types of target pests within five years of sales commencement

Action Plan:

  • Conduct safety tests in collaboration with testing companies and modify MOVE if abnormalities are found
  • Submit applications to regulatory authorities
  • Determine target sequences for applicable pests and proceed with mass production


Long-Term Vision

  • Apply for pesticide registration for multiple MOVEs with altered displaying proteins, providing optimal modules for each pest
  • Continue developing mass production technologies to increase production capacity and offer MOVE at lower costs
  • Expand to countries outside of Japan, stabilizing agriculture in countries facing food security issues through affordable MOVE

Risk Management and Mitigation Strategies

Risk 1: Delays Due to Technical Challenges

To mitigate delays caused by technical challenges, we will strengthen collaboration with external experts by partnering with industry specialists and academic researchers to solve complex technical issues and leverage their expertise. Additionally, we will reallocate resources appropriately , adjusting team focus and reassigning resources to critical technical tasks when delays are encountered to ensure continued progress.

Risk 2: Delays in the Pesticide Registration Process

To address delays in the pesticide registration process, we will engage in early communication with regulatory authorities to understand requirements and streamline compliance efforts. Furthermore, we will hire legal experts and strengthen the team by expanding the legal team with specialized professionals to navigate regulatory processes and prevent bottlenecks.

Risk 3: Funding Shortfalls

In the event of funding shortfalls, we will accelerate funding efforts and secure multiple funding sources by proactively advancing fundraising initiatives and exploring a range of financing options such as venture capital, government grants, and strategic partnerships. We will also focus resources on cost-effective activities , prioritizing activities with high return on investment to ensure the most critical and impactful tasks are funded.

Our teams & Stakeholders

Current Skills and Resources

Figure7. Our team
Figure7. Our team

Our team consists of 29 members who possess expertise across a wide range of disciplines, including information technology, organic chemistry, telecommunications, and molecular biology. Each member has received specialized education at the university level. For detailed profiles and the specific expertise of each member, please visit our team page .

Team Strengths

Our team boasts a broad spectrum of expertise, ranging from information technology to biological sciences, which enables a multidimensional approach to problem-solving. By leveraging the knowledge and experience that each member has cultivated in their respective fields, we are able to tackle complex challenges flexibly and effectively.

In addition, our team thrives on a spirit of collaboration and shares a strong passion for achieving sustainable agriculture. This collective commitment drives our motivation and strengthens our ability to face difficult situations as a unified force. Our cooperative nature and shared objectives create a positive environment where we work together to reach common goals.

Furthermore, we emphasize innovative thinking by continually embracing new technologies and ideas. By staying up-to-date with the latest trends and research, we ensure that we are always pursuing the most optimal solutions. This innovation-driven mindset allows us to quickly adapt to changes in the market and emerging challenges, helping us maintain our competitive edge.

By utilizing these strengths, we aim to deliver sustainable and efficient agricultural solutions that meet the evolving needs of the industry.

Skills and Personnel Needed in the Future

Tokyo Institute of Technology is a science and technology university, and the current team lacks members with other majors. To further develop and commercialize MOVE, we will need the following experts:

We require a Legal Specialist to address complex legal challenges such as pesticide registration, environmental regulations, and intellectual property protection. This role involves ensuring compliance with all relevant laws, negotiating with regulatory authorities, and drafting and reviewing contracts to safeguard the company’s interests.

Marketing and Sales Specialist

To enhance our market competitiveness and acquire new customers, we need a Marketing and Sales Specialist. This individual will conduct market analysis, develop brand strategies, and open new sales channels by planning and executing marketing strategies, gathering customer feedback, and building and expanding sales networks.

Finance and Business Management Expert

For managing fundraising, financial planning, and crafting sustainable business strategies, we seek a Finance and Business Management Expert. This expert will develop funding plans, build relationships with investors and financial institutions, and manage financial risks to ensure the company’s financial health.

Engagement with Stakeholders

We recognize the importance of building strong relationships with our diverse stakeholders to ensure the successful development and commercialization of MOVE. Below is a summary of our key stakeholders, their roles, and our strategy for engagement.

Figure8. Power Interest Matrix of our stakeholders
Figure8. Power Interest Matrix of our stakeholders

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More about Stakeholders

1. Regulatory Authorities

Role

  • Review and Approval of Pesticide Registration : An essential procedure for bringing products to market.
  • Guidance on Environmental Impact Assessment : A crucial process to ensure product safety.

Strategy

  • Early Dialogue : Aim for smooth applications by accurately understanding regulatory requirements and review processes.
  • Strict Compliance with Laws and Regulations : Adhere to necessary standards and procedures under expert guidance.
  • Ensuring Transparency : Appropriately disclose product information and test data to build trust.

2. Pesticide Companies & Researchers

Role

  • Support for Technological Development : Utilize specialized knowledge and facilities to enhance product performance.
  • Sharing Know-how : Incorporate experiences and insights from other companies to reduce development risks.

Strategy

  • Signing Joint Research Agreements : Collaborate with universities, research institutions, and companies to advance R&D.
  • Promoting Information Exchange : Participate in technical seminars and conferences to stay updated on the latest research trends.
  • Building Alliances : Form strategic partnerships that leverage each other’s strengths.

3. Agricultural Organizations

Role

  • Cooperation in Field Tests : Verify the practicality and effectiveness of the product in real-world settings.
  • Providing Feedback : Understand farmers’ needs and areas for improvement to enhance the product.

Strategy

  • Implementation of Pilot Projects : Conduct small-scale field tests in collaboration with selected farmers.
  • Collaboration with Agricultural Cooperatives : Partner with organizations like JA to promote product awareness and adoption.

4. Investors

Role

  • Provision of Funding : Secure the necessary capital for development and commercialization.
  • Advice on Business Strategy : Receive expert guidance on business expansion and risk management.

Strategy

  • Presentation of a Clear Business Plan : Clearly communicate business prospects and profitability to investors.
  • Regular Reporting and Communication : Share project progress and achievements to build trust.
  • Utilization of Diverse Funding Sources : Explore multiple funding methods such as angel investors, venture capital, and grants.

5. Environmental Groups

Role

  • Concerns About Safety : Express safety concerns held by the general public.
  • Recommendations Based on Independent Investigations : Conduct environmental impact assessments from their unique perspective and make recommendations to governments and companies.

Strategy

  • Responsibility for Safety : Establish strict environmental standards in addition to safety tests, taking responsibility for safety.
  • Regular Communication : Host workshops to gather opinions on existing concerns.

6. Delivery Companies

Role

  • Distribution and Sales of Products : Ensure smooth supply of products to the market.

Strategy

  • Building Sales Networks : Partner with existing pesticide dealers and distributors.
  • Setting Sales Incentives : Implement compensation systems based on sales performance to boost motivation.

7. Farmers

Role

  • Product Adoption as Initial Customers : Serve as important success cases during market introduction.
  • Continuous Users : Our end-users who will regularly use the product.

Strategy

  • Regular Communication : Hold workshops and seminars to explain product benefits and usage.
  • Marketing : Listen to concerns about pests and diseases to provide appropriate pesticides through effective marketing.

8. Consumers

Role

  • Consumption of Agricultural Products : Consume crops treated with pesticides.

Strategy

  • Information Disclosure : Fulfill corporate social responsibility by disclosing information about pesticides and the company, helping consumers understand that their food is safe.

Impact Assessment

Our RNA pesticide platform, MOVE, contributes to sustainable agriculture through significant environmental, social, and economic impacts. This section evaluates the positive impacts of MOVE, potential negative impacts, and the mitigation strategies to address them.

Positive Environmental Impact

Reduction in Chemical Pesticide Use

MOVE’s high biodegradability and target specificity minimize soil and water pollution, preserving ecosystem health.

Preservation of Biodiversity

By targeting specific pests, MOVE protects beneficial insects and maintains ecosystem balance.

Social Impact and Sustainability

Economic Relief for Farmers

Lower costs and reduced labor demands stabilize farm operations and enhance profitability.

Revitalization of Agricultural Communities

Sustainable practices encourage younger generations to engage in farming, ensuring the longevity of agricultural communities.

Revitalization of the RNA pesticide communit

We have created an open database of RNA pesticides. Because it is an open database that anyone can access and edit, it is expected to encourage information sharing and collaborative research. This will promote cooperation among universities, companies, and even student teams like iGEM, leading to the creation of innovative solutions. See moreSoftware page .

Potential Negative Impacts and Mitigation Strategies

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1. Ecosystem Impact Assessment

Potential Risks

  • Uncertainty in RNA interference technology : As a relatively new technology, the long-term effects on ecosystems are not fully understood.
  • Non-target species impact : There is a possibility of unintended effects on non-target organisms.

Mitigation Strategies

  • Thorough environmental impact assessments :
    • Ecosystem simulations : Conduct lab and field trials to evaluate the effects on non-target species.
    • Long-term monitoring : Continuously monitor the environment after product use to detect any unforeseen effects.
  • Ensuring RNA biodegradability :
    • Design considerations : Ensure the RNA is designed to degrade quickly in the environment.
    • Degradation testing : Conduct tests to confirm the RNA’s degradation speed and its safety in various environmental conditions.
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2. Risk Management Plan

Potential Risks

  • Misuse or improper management : Risks arise if the product is not used according to guidelines.
  • Regulatory or social acceptance issues : Concerns or resistance towards the adoption of new technology.

Mitigation Strategies

  • Providing usage guidelines :
    • Detailed manuals : Provide clear guidelines on proper usage and safety precautions.
    • Education and training : Offer training to farmers and distributors to ensure they understand the correct application of the product.
  • Communication strategy :
    • Transparency : Actively share information on the safety and environmental impact of the technology.
    • Dialogue with stakeholders : Engage with consumer groups, environmental organizations, and regulatory authorities to address concerns and build trust.
  • Regulatory compliance and quality control :
    • Adherence to regulations : Obtain necessary certifications and approvals in compliance with local and international laws.
    • Establishing quality assurance systems : Implement management systems to ensure consistent product quality and safety.

Market Analysis

Target Market and Customer Segments

Initial Target: Producers of High-Value Crops

Our initial target market consists of farmers and agricultural businesses that produce high-value crops . Specifically, the following crop producers are our primary focus:

These crops typically have high market value, and the stability of their quality and yield is directly linked to business success. Moreover, they are often susceptible to difficult-to-control pests and diseases, for which conventional pesticides may not provide sufficient protection.

Potential for Future Market Expansion

The technology behind MOVE, with its ability to adapt to various pests by altering the shRNA sequence, has the potential to expand into the following markets in the future:

This expansion would significantly enhance MOVE’s contribution to the overall agricultural industry, supporting the realization of sustainable farming practices on a broader scale.

Market Size and Growth Forecast

This section outlines the Total Addressable Market (TAM) , Serviceable Available Market (SAM) and Serviceable Obtainable Market (SOM) . A top-down approach was adopted to estimate the benefits MOVE is expected to generate in the market. In this approach, the entire market (TAM) is studied and then narrowed down to specific segments (SOM) that match the business objectives.

Figure9.TAM・SAM・SOM
Figure9.TAM・SAM・SOM

TAM (Total Addressable Market)

The global pesticide market was estimated to be around $75 billion as of 2022[14] .

In Japan, the domestic agrochemical market in FY2021 was worth approximately $2.3 billion (US$1=145 yen).[21] . Within this, the biopesticide market, which emphasizes reducing environmental impact and promoting sustainability, is valued at approximately $6 billion , with an expected annual growth rate of over 14%.

SAM (Serviceable Available Market)

The pesticide market for high-value crops, which we are initially targeting, is estimated to be around $15 billion globally[15] . This segment prioritizes quality and safety, and it has a high interest in adopting new technologies.

Since Japan is engaged in intensive agriculture with high pesticide use and high profit per area, at least the ratio of Japan to the world in TOM can be considered applicable to SAM.

$15billion×$2.3billion$75billion=$0.46bilion\$15 billion \times \frac{\$2.3 billion}{\$75 billion } = \$0.46 bilion

SOM (Serviceable Obtainable Market)

Assuming a 1% market share in the first year , we are targeting a market size of approximately $4.6 million .

Assumed Revenue

This section outlines the detailed revenue plan accompanying the commercialization of MOVE. We will present quarterly projections over an 11-year period, focusing on revenue, cost of goods sold, customer acquisition costs, personnel costs, other fixed expenses, and capital expenditures. To see the theory behind the setting of each number, see economic model page .

Figure10. Assumed Revenue
Figure10. Assumed Revenue

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See more detailed Revenue Plan

Set the pesticide price at 40,000 yen/ha, taking the midpoint between 80,000 yen and 8,000 yen per hectare.

Here, we reference the calculation of TAM-SAM-SOM for hectare to determine that the initial target for high-value agricultural product cultivation area is approximately 7% of Japan’s total area, calculated as 2.3 billion / 75 billion = 7%. Japan’s total cultivation area is 4 million hectares (TAM), so 7% of this is 280,000 hectares (SAM). In the first year, we aim for 1% of this, which is 2,800 hectares.

1. Revenue Projections

1.1 Unit Price Setting

  • Selling Price (per hectare) : 80,000 yen
  • Sales Channel Margin : 30%
  • Net Selling Price (after margin deduction) : 54,000 yen

1.2 Customer Segments and Market Size

We have identified five customer segments and estimate their respective market sizes and penetration rates as follows:

Customer Segment: High-Value Agricultural Product Producers

  • Market Size : 280,000 ha
  • Penetration Rate :
    • Years 1–2: 1%
    • Years 3–4: 5%
    • Year 5: 10%
    • Year 6 and beyond: 10%–30%

1.3 Customer Growth Over Time

  • Years 1–2 : Focus on the initial customer segment 1, acquiring up to 2,800 ha of customers.
  • Years 3–5 : Expand cumulative customer base to approximately 14,000 ha.
  • Year 6 and beyond : Including customer segments 4 and 5, increase the cumulative customer base to approximately 28,000 ha.

Quarterly revenues are calculated based on the number of customers and the net selling price.

2. Cost of Goods Sold (COGS) Assumptions

  • COGS Ratio : 20%

3. Personnel Expenses

3.1 Staffing Plan

  • In the first year, employ 6 people for each bioreactor.
  • Increase staff proportionally with penetration rate.

3.2 Annual Salaries

  • Set the average salary at 6 million yen.
  • Year 1 Personnel Expenses : Approximately 78 million yen
  • Year 5 Personnel Expenses : Approximately 400 million yen annually
  • Year 11 Personnel Expenses : Approximately 800 million yen annually

Personnel expenses include costs related to social insurance and welfare benefits (calculated at 200% of salaries).

4. Capital Expenditures (CapEx)

4.1 Equipment Investment

  • Machinery Investment : 3 million yen per bioreactor, increasing proportionally with penetration rate.
  • Energy Costs : Allocate 3 million yen annually for 6 units in Year 1.
  • Pesticide Registration Costs : Allocate 1 billion yen in Year 1.
  • Manufacturing Costs : 39,447,000 yen per year per set.
  • Year 1 Total Capital Expenditures : Approximately 1.17 billion yen
  • Annual Capital Expenditures from Year 2 Onwards : Average 5 million yen

Calculation Results

Revenue Forecast(US$1=145 yen)

Investment Recovery Outlook

Since the revenues in the first year calculated by SOM and Assumed Revenue were almost identical, the values in the Economic Model are reliable, and the subsequent revenues should be accurate as well.

This revenue plan is based on current market analysis and business strategies. It may be subject to changes depending on market conditions and business development. We will continue to monitor market trends and adjust the plan accordingly to ensure optimal financial performance.

Conclusion

Specific Benefits for Farmers and the Environment

MOVE brings significant benefits by integrating advanced technology with practical agricultural needs. Finally, we will outline once more the specific benefits that our project will provide.

Benefits for Farmers

  • Extended Effectiveness : MOVE significantly extends the duration of RNA pesticide effectiveness.
  • Cost Efficiency : With reduced production costs and high efficacy, MOVE lightens the financial burden on farmers, contributing to stable farm management.
  • Flexible Pest Control : The ability to quickly modify shRNA sequences allows rapid adaptation to various pests, including those emerging due to climate change or resistant strains.

Environmental Benefits

  • Reducing Environmental Impact : MOVE’s high biodegradability and minimal effect on non-target organisms contribute to ecosystem preservation.
  • Reduction of Chemical Pesticides : By replacing traditional chemical pesticides, MOVE helps prevent soil and water pollution, making it easier for farmers to comply with environmental regulations.
  • Achieving Sustainable Agriculture : MOVE enables the balance between environmental conservation and productivity, building a sustainable agricultural model that can be passed on to future generations.

Social Impact

  • Revitalizing Agricultural Communities : Reduced labor demands and more stable farm operations help revitalize rural areas and create new job opportunities.
  • Providing Safe Food to Consumers : Lower pesticide residue levels ensure that consumers receive safe and high-quality agricultural products.
  • Contributing to Global Challenges : MOVE, as a Japan-born technology, addresses global issues such as food security and environmental conservation.

Business Growth Potential

  • Meeting Market Needs : With the growing emphasis on sustainability and strengthened environmental regulations, MOVE is well-positioned to meet increasing market demands, offering substantial growth potential.
  • Maintaining Competitive Advantage : MOVE’s unique technology and clear differentiation provide a competitive edge over other players in the market.
  • Diversified Revenue Model : Through product sales, licensing, and customization services, MOVE offers multiple revenue streams, establishing a stable business foundation.

MOVE doesn’t only addresses the immediate needs of farmers but also contributes to long-term sustainable agricultural practices, ensuring a positive impact on the environment and society.

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